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ZAMBIA fees are becoming a major source of funding for competition authorities, particularly those in developing countries but also in some developed countries. The competition activities of most, if not all, developing countries are grossly under-fund- go a long way in assisting in the meeting of the high costs of merger review and examination. It of mergers with motives other than pro-competi- high compared with those charged in other countries in the region. The fees are calculated at 0.1 per cent of the combined annual turnover or assets in Zambia of the merging parties, whichever is higher, with a cap of maximum fee of 16 666 667 fee units 161 , which translate to K3 billion (or 162 The high fees go beyond their intended purpose of defraying the Commission’s costs of merger examination, and are a major source of income for the Commission. It is there- constitute over 60 per cent of the Commission’s income, far outstripping the government grant, which should be the major source of the Commission’s operational funds. This presents two major tion fees increase the transaction costs of merger on the merging parties who in most cases enter into merger transactions for economic and viability reasons. Secondly, it would not be prudent for tion fees for the funding of its operations since such fees are not a stable source of income. It is therefore recommended that the Zambia be revised and lowered from the very high $600 000 in line with practice in the region. mission under the old Act also used to charge an extra fee for expediting its examination of mergers. The charging of the extra merger examination expedition fees is however no longer provided for in the Regulations to the new Act since the Act 145 deadlines. The Commission has therefore discontinued the practice. The Act also provides that the Minister of Finance to the Commission to be retained by the Commission. The Commission has made proposals that it be approved by the Minister. The Ministry is of the view that such requests should be made on a case requirements of the Commission. It is not surprising that the Commission’s proposals to retain as approved by the Ministry of Finance given the fact terprises’ annual turnovers can be very high. The retention by the Commission of a percentage of sions of the Act adversely affects the Commission’s prioritization of its activities, and it has already been recommended that the relevant provisions of the Act be removed. Based on the Commission’s budgetary performance in 2010, total employment costs of about est expenditure, at 72 per cent of total recurrent 141). Table 4 below shows the breakdown of employment costs during that year, excluding allowances directly related to operations, such as travel per diem allowances. Table 4: Employment Costs in 2010 Employment Cost Actual Expenditure 2010 Jan-Nov ZMK $ Personal Emoluments 2 297 262 414 473 272 Employees Pension Scheme 134 215 314 27 650 Medical and Funeral Expenses 27 854 880 5 739 NAPSA Contributions (national social security) 79 682 637 16 416 Staff Welfare 7 132 602 1 469 178 840 071 36 844 Total Employment Costs 2 724 987 918 561 390 Source: 220. While having employment costs as high as 72 per cent of total recurrent expenditure might ZAMBIA
146 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE seem unacceptable for a regulatory authority with volved in dollar terms are relatively small, indicating that the Commission’s other operations are being under-funded. There is also need to maintain highly competitive conditions of services to avert high staff turnover. Presently, staff salaries in the Commission are highly competitive, and compare favourably with other government bodies, including sector regulatory bodies. What is required therefore is to reduce the percentage of employment costs to total expenditure is increased funding for the Commission for use in other operational areas, such as advocacy and awareness activities. has had no functioning elevators for many years. unless one is in excellent physical position, which many of the Commission’s clients are not. does not encourage visits to the Commission for the purposes of lodging competition and consumer complaints, which are core to the Commission’s operations. While seriously affected competition complainants might not be deterred by the location, the location most certainly discourages individual consumer complainants, particularly ordinary citizens. ises in a government building three years ago, but has not occupied it because the building which are situated along Cairo Road in Lusaka, are much more easily accessible than the Com- busy street. It is recommended that the renovation of has been offered by the Government be expedited to enable its speedy occupation. The Commission has a good information technol- connection, with 25 computers connected in the It bought another 12 computers in 2012 to replace old computers and for new staff employed. The Commission currently has a total of 9 motor vehicles, of which 5 have been allocated to senior are pool vehicles for use in Lusaka, and 2 are for use in the Copperbelt. Senior management is allocated vehicles as part of employment contracts. - Commission business. Zambia is a huge but sparsely populated country. Air travel is serviced by nine main airports in seven of the country’s ten Provinces163 , and a number of other airdromes that are not commercialized serviced. The major national airline, Zambia Airways, is no longer operating, and the privately owned airline, Zambezi Airways, has also suspended operations. The Zambia Railway Network comprises Zambia Railway Limited, with 846 kilometres mainline rail lines and 427 kilometres of branch lines, mostly in the Copperbelt, and TAZARA Railway linking Zambia with Dar-es-Salaam in the United Republic of Tanzania, with 891 kilometres of rail lines in Zambia. 164 The internal rail network in Zambia however only covers three regions of the country (the Northern Region, the Central Region, and the Southern Region) 165 . Passenger services under Zambia Railway Limited are however only between Kitwe and Livingstone (Kitwe-Ndola-Kapiri Mposhi-Lusaka-Livingstone, and back), and under TAZARA Railway only between Kapiri Mposhi and the border with the United Republic of Tanzania (Kapiri Mposhi- Mbeya). 166 Zambia has an extensive road network totalling over 95 000 kilometres, of which over 25 000 are paved (over 7 000 kilometres being trunk of main routes), and over 75 000 kilometres are unpaved (some of the unpaved highways are grade laterite roads). 167 The most commonly used means of transport in Zambia, which covers all the remote areas of the country is therefore road transport. With only 9 motor vehicles, there is therefore a serious transport problem in the Commission, which is affecting the investigation of competition and consumer cases, as well as the undertaking of advocacy and awareness campaigns.
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UNITED NATIONS CONFERENCE ON TRADE
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UNITUNITED NATIONS CONFERENCE ON TR
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2 VOLUNTARY PEER REVIEW OF CLP: A T
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COMPARATIVE ASSESMENT COMPARATIVE A
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PREFACE This comparative assessment
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PREFACE agreements. . In the United
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PREFACE Finally in the United Repub
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PREFACE be set at a percentage of t
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PREFACE the market price but constr
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PREFACE (d) the extent to which the
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PREFACE pendence is maintained and
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PREFACE practical solutions, for ex
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Page 174 and 175: ZIMBABWE FULL REPORT ZIMBABWE
Page 176 and 177: ZIMBABWE TABLE OF CONTENTS PREFACE
Page 178 and 179: ZIMBABWE This report is part of the
Page 180 and 181: ZIMBABWE With the growing political
Page 182 and 183: ZIMBABWE of restrictive practices,
Page 184 and 185: ZIMBABWE competition authorities do
Page 186 and 187: ZIMBABWE divided according to geogr
Page 188 and 189: ZIMBABWE The Commission in 2006 whi
Page 190 and 191: ZIMBABWE to take care of themselves
Page 192 and 193: ZIMBABWE (under Section 9); basical
Page 194 and 195: ZIMBABWE Full scale investigation i
Page 196 and 197: ZIMBABWE (ii) to produce any book,
Page 198 and 199: ZIMBABWE The fact that CTC has a co
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ZIMBABWE tariat of technocrats, who
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ZIMBABWE Table 2: Number of Competi
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ZIMBABWE Regarding the handling of
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ZIMBABWE (Emphasis by the author) b
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ZIMBABWE Section 5 (1) (f) that pro
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ZIMBABWE Whilst the arguments can b
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ZIMBABWE Anti competitive agreement
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ZIMBABWE by conducting its case det
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