Zambia Railways has leased out its land in the central business district of Kapiri Mposhi in a debt swap for land rates because the railway company is unable to settle the debt which is in excess of K500,000.
The council now intends to build an intercity and local bus station on the land near the FRA shed and is asking FRA to also relocate their maize sheds. The land has been leased out for a renewable period of twenty years during which the railway company shall be exempted from paying land rates, according to the lease agreement.
After squandering the US$120 million Eurobond, the company has been rocked by financial challenges which have led to failure to pay suppliers and contractors working on rehabilitation of the railway line. Some contractors have since pulled out their labour force, while the company has inadequate locomotives and wagons to move cargo.
Company CEO Muyenga Atanga who is husband to dismissed PF secretary general Bridget has since applied to government to provide some more funding. Atanga’s job is on the chopping board but he has only been kept because he allowed diversion of company funds to Edgar Lungu’s 2015 Presidential campaign.