PRIVATISATION ACT: INDEX TO SUBSIDIARY LEGISLATION

Privatisation (Sale or Disposal of Property) Regulations

Privatisation (Trade Sales and Management or Employee Buyouts) (Sale Tender) Regulations

Privatisation (Oath of Secrecy) Order

Privatisation (Political Leaders and Public Officers) (Bidding) Regulations

PRIVATISATION (SALE OR DISPOSAL OF PROPERTY) REGULATIONS

[Section 49]

[RETAINED AS PER SECTION 15 OF THE INTERPRETATION AND GENERAL PROVISIONS ACT]

Arrangement of Regulations

Regulation

1. Title

2. Application

3. Restriction of sale or disposal of property

4. Processing of applications

5. Returns on sale of property

6. Sale of disposal of real property

7. Restriction on lease of property

8. Lease information to be given to Agency

SI 41 of 1993.

[Regulations by the Minister]

1. Title

These Regulations may be cited as the Privatisation (Sale or Disposal of Property) Regulations.

2. Application

These Regulations apply to state owned enterprises scheduled for privatisation under the Act.

3. Restriction on sale or disposal of property

(1) No state owned enterprise shall sell or otherwise dispose of property of state owned enterprise without the prior approval, in writing, of the Agency.

(2) The application for approval referred to in sub-regulation (1) shall be accompanied by—

(a) a board resolution of the applicant, authorising the sale or disposal of the property;

(b) a schedule containing a description of the property intended for sale or disposal;

(d) a statement showing that the property is—

(i) redundant, excess or obsolete; and

(ii) free, apart from these Regulations, from any prohibition or restriction on sale or disposal.

4. Processing of applications

(1) The Agency shall process each application in the best interest of the state owned enterprise and on such terms and conditions as it thinks necessary or expedient.

(2) The decision of the Agency shall be communicated to the applicant not later than 30 days from date the application is received by the Agency.

(3) In granting an application for approval, the Agency shall in its absolute discretion satisfy itself that the sale or disposal of property is in the best interest of the applicant.

(4) The Agency may, in granting its approval, impose such terms and conditions as it may think fit and such conditions shall be binding on all persons.

5. Returns on sale of property

As soon as a sale is completed, a state owned enterprise shall file with the Director information on the following—

(a) the date of completion;

(b) the amount realised;

(d) any other information the Agency may request.

6. Sale of disposal of real property

Any sale or disposal of real property belonging to a state owned enterprise shall be conducted through a property management company, estate agent, auctioneer or such other class of persons the Agency may specify.

7. Restriction on lease of property

(1) No state owned enterprise shall lease property for a period exceeding one year without the prior approval, in writing, of the Agency.

(2) An application for approval shall be accompanied by—

(a) a schedule containing the description of the property intended for letting;

(b) evidence that the intended lease is in the best interest of the state owned enterprise;

(d) a statement giving reasons for the proposed leasing; and

(e) a draft lease agreement.

(3) This Regulation shall not apply to a state owned enterprise whose main business is the letting of property.

(4) The Agency may, in granting an approval under this Regulation, impose such terms and conditions as it thinks fit and such conditions shall be binding on all persons.

8. Lease information to be given to Agency

A state owned enterprise that signs an agreement for sale, disposal or letting of property after the coming into force of the Act but before the commencement of these Regulations shall communicate to the Agency the following information—

(a) the parties;

(b) the consideration;

(d) the date of expiration of the lease;

(e) the nature of the transaction;

(f) the reasons for the transaction;

(g) the description of the property;

(h) the effective date of the lease or date of sale of the property; and

(i) any other information the Agency may request.

PRIVATISATION (TRADE SALES AND MANAGEMENT OR EMPLOYEE BUYOUTS) (SALE TENDER) REGULATIONS

[Sections 22 and 29]

[RETAINED AS PER SECTION 15 OF THE INTERPRETATION AND GENERAL PROVISIONS ACT]

Arrangement of Regulations

Regulation

1. Title

2. Application for pre-qualification

3. Application by incorporated companies

4. Application for partnerships

5. Applications by individuals

6. Confidentiality agreements

7. References

8. Processing applications

9. Entitlement on pre-qualification

10. Submission of bids

11. Contents of bid documents

12. Evaluation and selection of bids

FIRST SCHEDULE

SECOND SCHEDULE

THIRD SCHEDULE

SI 40 of 1993.

[Regulations by the Minister]

1. Title

These Regulations may be cited as the Privatisation (Trade Sales and Management or Employee Buyouts) (Sale Tender) Regulations.

2. Application for pre-qualification

(1) Any person may participate in tenders relating to the privatisation of any state-owned enterprise by submitting an application for pre-qualification.

(2) The Agency shall determine and publish the deadline for the submission of applications.

3. Application by incorporated companies

(1) An application by an incorporated company shall be in the form prescribed in the First Schedule to these Regulations.

(2) An application by an incorporated company shall be submitted with certified copies of—

(a) the Board of Directors’ resolution authorising the application;

(b) a certificate of incorporation;

(d) the current annual returns;

(e) the Company Form No. 23; and

(f) an audited financial statement.

4. Application by partnerships

(1) An application by a partnership shall be in the form prescribed in the Second Schedule to these Regulations.

(2) An application for a partnership shall be submitted with certified copies of—

(a) the articles of partnership or a certificate of registration under the Registration of Business Names Act; and

(b) the last audited financial statement.

5. Applications by individuals

An application by an individual shall be in the form prescribed in the Third Schedule to these Regulations.

6. Confidentiality agreements

(1) An applicant for pre-qualification shall enter into a confidentiality agreement with the Agency.

(2) The Agency shall set out the terms and conditions of the confidentiality agreement.

(3) The confidentiality agreement shall be executed on or before submitting the application for pre-qualification.

7. References

A person applying for pre-qualification shall submit to the Agency references from his bankers or financiers or any other referee of good standing.

8. Processing applications

(1) The Director shall ensure that an application is in accordance with these Regulations and contains the required information before submitting the application to the Agency for consideration.

(2) The Agency may make consultations relevant to an application.

(3) The decision of the Agency shall be final and binding on the parties and shall be communicated to the applicant within 30 days from the date on which it was received.

9. Entitlement on pre-qualification

A person who successfully bids for pre-qualification shall—

(a) be registered as having pre-qualified for that state-owned enterprise;

(b) on payment of a non-refundable fee determined by the Agency, be entitled to receive a tender package relating to the state-owned enterprise to which he pre-qualified; and

10. Submission of bids

(1) A person who pre-qualifies shall be requested by the Agency to submit to the Agency his bid for that state-owned enterprise.

(2) The bid shall be submitted to the Agency in a sealed envelope within a period determined by the Agency.

11. Contents of bid documents

The bid document shall contain information regarding—

(a) the price;

(b) the currency of payment;

(d) the enhancement of competition;

(e) the enhancement of efficiency;

(f) the applicant’s capital investments;

(g) the dissipation of assets;

(h) export promotion and import substitution;

(i) dependency on foreign exchange for working capital;

(j) dividend remittability;

(k) public participation;

(l) share ownership plans;

(m) employee expansion or retention plans;

(n) pension rights and liabilities for employees;

(o) training policy for employees; and

(p) any other information which, in the opinion of the bidder, is relevant to the bid.

(2) The bid document shall contain the following information relating to the bidder—

(a) technical and managerial ability to manage the enterprise which is the subject of the bid;

(b) the financial standing;

(d) nationality;

(e) the names and nationalities of the shareholders, together with the number of shares held by each; and

(f) any other information the Agency may request.

12. Evaluation and selection of bids

(1) The Director shall submit a bid document to the Agency for evaluation after being satisfied that the document contains the required information.

(2) Where the bid document does not contain the required information, the Director shall request the bidder, within such period as he may determine, to supply the required information unless there is insufficient time for the submission of further information.

(3) When evaluating and selecting the bids, the Agency may make such consultations as it thinks fit.

(4) The evaluation and selection of bids shall be at the discretion of the Agency and its decision in that regard shall be final and binding on the parties.

(5) The decision of the Agency shall be communicated to the bidder not later than 90 days after the bid is submitted.

13. Negotiations

(1) The selected bidder and an independent negotiating team appointed by the Agency under section 32 of the Act shall negotiate the terms and conditions of a share or asset transfer agreement relating to the state-owned enterprise.

(2) On the successful completion of the negotiation for the terms and conditions of a share or asset transfer, the parties to the negotiations shall sign a transfer agreement.

FIRST SCHEDULE

[Regulation 3]

FORM 1

PRE-QUALIFICATION APPLICATION FORM FOR INCORPORATED COMPANIES

To: The Director

Zambia Privatisation Agency

P.O. Box 30819

Lusaka

Date ………………………….

We hereby apply for pre-qualification as bidders in the privatisation of ………………….. Limited

1. Name of Company ………………………………………………………………………………………………………………………………………….

2. Nationality of Company ……………………………………………………………………………………………………………………………………

3. Postal Address …………………………………………………………………………………………………………………………………………..

4. Registered Office ………………………………………………………………………………………………………………………………………..

5. Telephone ……………………………………………………………………………………………………………………………………………….

6. Telex No. ……………………………………………………………………………………………………………………………………………….

7. Telefax No. ……………………………………………………………………………………………………………………………………………..

8. Date of Incorporation …………………………………………………………………………………………………………………………………….

9. Place of Incorporation ……………………………………………………………………………………………………………………………………

10. Share Capital …………………………………………………………………………………………………………………………………………..

Authorised Share Capital	Issued Share Capital	Paid-Up Share Capital

9. Particulars of shareholders
Name	Residential Address Held	Occupation	Nationality	Number of Shares

10. Particulars of Directors
Name	Residential Address	Occupation	Nationality

11. Summary of curriculum vitae of senior management

………………………………………………………………………………………………………………………………………….

12. Nature of business of the Applicant

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

13. Details of any pending legal disputes:

14. State reason for interest in the particular state-owned enterprise:

15. State any relationship with the state-owned enterprise (i.e. customer, supplier, creditor, etc.)

Dated the …………………………………………….. day of …………………………………………………………………………………… 19………

Signed by:

Signature …………………………………………………………. Name ………………………………………………………………. Occupation ………………………………………………………. Residential Address ………………………………………….. Postal Address ………………………………………………….. for and on behalf of ………………………………………………………………………..In the presence of:

Signature

Name

Occupation

Residential Address

Postal Address

NOTE: Attach certified copies of board of directors resolution authorising the application together with certified copies of certificate of incorporation, memorandum and articles of association, current annual returns, companies Form 23 and audited financial statement.

SECOND SCHEDULE

[Regulation 4]

FORM 2

PRE-QUALIFICATION APPLICATION FORM FOR PARTNERSHIPS

To: The Director

Zambia Privatisation Agency

P.O. Box 30819

Lusaka

Date ……………………….

We hereby apply for pre-qualification as bidders in the privatisation of …………………….. Limited

1. Name of Partnership ……………………………………………………………………………………………………………………………………

2. Address …………………………………………………………………………………………………………………………………………………….

3. Telephone …………………………………………………………………………………………………………………………………………………

4. Telex No. ………………………………………………………………………………………………………………………………………………….

5. Telefax No. ……………………………………………………………………………………………………………………………………………….

6. Particulars of Partners ………………………………………………………………………………………………………………………………..

Name

Occupation

Nationality

Percentage of shareholding

7. Share structure of partnership ……………………………………………………………………………………………………………………..

8. Summaries of curriculum vitae of partners ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

9. Place of business: ……………………………………………………………………………………………………………………………………..

10. Description of business: ………………………………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………………………………….

11. Details of any pending disputes: ……………………………………………………………………………………………………………………..

12. State reasons for interest in the particular state-owned enterprise:

………………………………………………………………………………………………………………………………………….

13. State any relationship with the state-owned enterprise (i.e. customer, supplier, creditor, etc.)

………………………………………………………………………………………………………………………………………….

Dated the ………………… day of …………………………………. 20 …….

Signed by: ……………………………………………………………………

Signature …………………………………………………………………….

Name …………………………………………………………………………

Occupation …………………………………………………………………..

Residential Address ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….

Postal Address………………………………………………………………………………………..

…………………………………………………………………………………………………….

for and on behalf of ……………………………………………………………………………

In the presence of: …………………………………………………………………………….

Name ………………………………………………………………………………………….

Occupation …………………………………………………………………………………….

Residential Address …………………………………………………………………………….

………………………………………………………………………………………………

Postal Address ………………………………………………………………………………………………..

………………………………………………………………………………………………………………………

NOTE— Please attach certified copies of the Articles of Partnership (if any), certificate of registration under the Business Names Act, Cap. 389 (where applicable) and audited financial statements.

THIRD SCHEDULE

[Regulation 5]

FORM 3

PRE-QUALIFICATION FORM FOR INDIVIDUALS

To: To Director,

Zambia Privatisation Agency

P.O. Box 30819

Lusaka

Date ……………………..

I hereby apply for pre-qualification as bidder in the privatisation of ……………………………. Limited

1. Name …………………………………………………………………………………………………………………………

2. Nationality ……………………………………………………………………………………………………………………………………….

3. Occupation ……………………………………………………………………………………………………………………………………..

4. Residential Address ………………………………………………………………………………………………………………………….

5. Postal Address …………………………………………………………………………………………………………………………………

6. Details of any pending disputes …………………………………………………………………………………………………………..

……………………………………………………………………………………………………………………….

………………………………………………………………………………………………………………………..

7. State reasons for interest in the particular state-owned enterprise:

……………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………….

8. State any relationship with the state-owned enterprise (i.e. customer, supplier, creditor, etc.)

………………………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………………….

Dated the …………………………………………………. day of …………………. 20 ……….

Signed by: ………………………………………….

Signature …………………………………………..

In the presence of: ………………………………….

Signature …………………………………………..

Name ………………………………………………………………………………………………………………..

Occupation …………………………………………………………………………………………………………

Residential Address ……………………………………………………………………………………………..

……………………………………………………………………………………………………………………………

Postal Address……………………………………………………………………………………………………..

……………………………………………………………………………………………………………………………

PRIVATISATION (OATH OF SECRECY) ORDER

[Section 49]

[RETAINED AS PER SECTION 15 OF THE INTERPRETATION AND GENERAL PROVISIONS ACT]

Arrangement of Paragraphs

Paragraph

1. Title

2. Oath of member

3. Oath of member of committee, consultant or employee

FIRST SCHEDULE

SECOND SCHEDULE

SI 119 of 1992.

[Order by the Minister]

1. Title

This Order may be cited as the Privatisation (Oath of Secrecy) Order.

2. Oath of member

The Oath of Secrecy for a member of the Agency shall be as set out in the First Schedule to this Order.

3. Oath of member of committee, consultant or employee

The Oath of Secrecy for a member of a Committee, consultant or employee of the Agency shall be as set out in the Second Schedule to this Order.

FIRST SCHEDULE

[Paragraph 2]

OATH OF SECRECY

I, ……………………………………………………………………………………. having been appointed as a member of the Zambia Privatisation Agency, do swear/ affirm that I will not directly or indirectly, disclose the contents, or part thereof, of any document, communication or information which may come to my knowledge in the course of my duties without the authority of the Chairman or Director of the agency.

SO HELP ME GOD

………………………………………..

(Signature)

SWORN/Declared before me this ……………………….. day of ……………………………… 20……..

Before me,

………………………………………….

(President)

SECOND SCHEDULE

[Paragraph 3]

OATH OF SECRECY

I, ………………………………………………………………………………………. having been appointed as a member of a Committee/Consultant/Employee of the Agency, do swear/affirm that I will not directly or indirectly, disclose the contents or part thereof, of any document, communication or information which may come to my knowledge in the course of my duties without the authority of the chairman or the Director.

SO HELP ME GOD

……………………………………

(Signature)

SWORN/Declared before me this ……………. day of ……………………………… 20……..

Before me,

…………………………………

(Judge)

PRIVATISATION (POLITICAL LEADERS AND PUBLIC OFFICERS) (BIDDING) REGULATIONS

[Section 49]

[RETAINED AS PER SECTION 15 OF THE INTERPRETATION AND GENERAL PROVISIONS ACT]

Arrangement of Regulations

Regulation

1. Title

2. Interpretation

3. Disclosure of intention to bid

4. Disclosure of interest in companies

5. Unsuccessful bidders’ fees, charges and expenses

SI 6 of 1994,

SI 25 of 1995.

[Regulations by the Minister]

1. Title

These Regulations may be cited as the Privatisation (Political Leaders and Public Officers) (Bidding) Regulations.

2. Interpretation

(1) In these Regulations, unless the context otherwise requires—

“Agency” means the Zambia Privatisation Agency established under section 3 of the Act;

“Director” means the Director of the Privatisation Agency;

“political leader” means any of the following persons—

(a) the President, Vice President, Speaker of National Assembly, Minister, Leader of the Official Opposition in Parliament, Deputy Speaker, Deputy Minister and Member of Parliament; and

(b) members of the executive of all registered political parties;

“public officer” means any of the following persons—

State House Chief of Staff, Secretary to the Cabinet, Special Assistants to the President, Deputy Secretary to the Cabinet and Permanent Secretaries.

(2) For the purposes of these Regulations, a person shall not be considered as holding a public office by reason only of the fact that he is in receipt of a pension or other like allowance in respect of service as a public officer.

[As amended by Act 25 of 1995.]

3. Disclosure of intention to bid

(1) A political leader or public officer who is desirous of purchasing shares in any state-owned enterprise or any of its assets shall—

(a) not less than 21 days before bidding, disclose his intention to bid at least once in the Gazette or a national daily newspaper of general circulation; and

(b) when submitting his bid, lodge with the Director a copy of the issue of the Gazette or newspaper in which his intention was disclosed.

(2) A bid that does not comply with the provisions of these Regulations shall not be considered by the Agency and shall be void.

4. Disclosure of interest in companies

(1) A political leader or public officer who has shares in a limited liability company or partnership which is desirous of bidding for shares or assets of a particular state-owned enterprise shall advertise at least once in the Gazette or a national daily newspaper of general circulation the intention of his company or partnership to bid.

(2) When a company or partnership referred to in sub-regulation (1) submits its bid, it shall also submit a copy of the Gazette or newspaper in which the disclosure referred to therein was made.

(3) A bid that does not comply with the provisions of these Regulations shall not be considered by the Agency and shall be void.

5. Unsuccessful bidders fees, charges and expenses

The Agency shall not refund costs, fees, charges or expenses incurred by unsuccessful bidders.