Zambia's president sacks Clive Chirwa

President Michael Sata on Tuesday suspended the chief executive of the Zambia's state-run rail company Zambia Railway for alleged corruption, after he served for less than six months.

His suspension from the recently nationalised firm, came two days after the president dissolved the board of directors.

Clive Chirwa, was ordered to vacate the company's Lusaka apartment where he was staying.

“I am suspending you from duty and you will be on half pay,” Sata said in a letter to Chirwa.

Zambia's anti-corruption agency meanwhile has opened investigations into reports of graft and allegations of abuse of office levelled against the railways chief and the board, commission spokesman Timothy Moono said.

Chirwa and board members have in recent days been wrangling over cash. Chirwa complained that board members were holding too many meetings that cost the company over $93,000 each month while the board members alleged that the CEO was earning a hefty monthly salary equivalent of $46,000.

Zambia's government nationalised the railways company in September last year, taking control from a South African operator.

Government has with immediate effect dissolved the Board of Zambia Railways Limited (ZRL) and that forensic investigations and audits will be instituted to ascertain the truth on alleged gross mismanagement of the company.
On Monday this week, Works, Supply, Communications and Transport Minister Christopher Yaluma  wrote letters to the ZRL Board about Government’s decision to dissolve them.
Mr Yaluma told journalists that Government was concerned with operations of ZRL and the first step it had taken to restore sanity after the revelations was to dissolve the Board.
He said Government’s desire was to realign the objectives of ZRL and that forensic investigations and audits would be engaged to ascertain revelations of financial misuse.
“The ZRL Board was dissolved on Thursday last week in the afternoon. For now, they have no blessings from Government in whatever they will do because that will be done in their individual capacities.
“ZRL is an important industry that we need as a country and when we hear of allegations we have to carry out smooth investigations on the matter and the first step to restore sanity now, is by dissolving the board,” he said.
Mr Yaluma said Government had embarked on an ambitious developmental programme to revamp the railway sector by redesigning it to higher standards in order for it to bring desired revenues.
He said Government was resuscitating ZRL and could not remain quiet with allegations of financial misconduct and subsequent a ‘war of words’ between the dissolved Board and management.
Government recently said that the financially beleaguered ZRL would receive capital injection amounting to $120 million (K600 billion) for use in undertaking a major facelift following Zambia’s successful issuance of the first sovereign bond amounting to $750 million.
The Board comprised former Task Force chairperson Mark Chona as board chairperson economist Oliver Saasa as deputy. Other members are Transport Permanent Secretary (PS) Muyenga Antanga, Commence and Trade PS Stephen Mwansa and Ministry of Finance PS for budget Pamela Chibonga.
Solicitor General Musa Mwenye, Road Transport and Safety Agency executive director Zindaba Soko, a consultant Jornam Mwansa, a lawyer Irene Zeko Mbewe, a mechanical engineer and consultant Geoffrey Mulenga and a retired ZRL worker Richard Chipanama, are others.