Zambia’s state-owned railways company has into controversy in the past number of months following President Michael Sata’s appointment of Prof. Clive Chirwa as chief executive officer after revoking the concession to private operator Zambia Railways Systems (RSZ).
During his tenure, Chirwa has called for massive capital injections from the state to pursue an ambitious expansion of the railroad system in Zambia, including far-flung proposals for an underground system. However, these proposals clashed with a number of board members led by Mark Chona.
Chirwa had been demanding a K248 million monthly salary, a 25 % shareholding after five years while he accused the board of demanding a K500 sitting allowance.
“We have sent some officers there to get to the bottom of the matter there. There were already people there but with the recent developments it means we have to go deeper,” Chifungula said.
Zambia’s railway system plays an exceptionally important role in the economy as it is used by mining companies to export copper and other precious metals for processing abroad.