National Road Fund [No.

13 of 2002]

The National Road Fund ACT, 2002

________________

Arrangement of Sections
PART I
Preliminary
Section
1 Short title and commencement
2. Interpretation

PART II

THE NATIONAL ROAD FUND AGENCY

3. Establishment of Agency
4. Functions of Agency
5. Composition of Agency
6. Tenure of office and Vacancy
7. Filling of casual vacancy
8 Proceedings of Agency
9. Committees of Agency
10 Allowances of members
11. Disclosure of interest
12. Prohibition of publication or disclosure of information to unauthorised person
13. Seal of Agency

PART III

MANAGEMENT AND STAFF

14. Director
15. Secretary and other staff

PART IV

THE NATIONAL ROAD FUND

16. Establishment of Road Fund
17. Application of moneys of Road Fund

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PART V

FINANCIAL AND OTHER PROVISIONS

18. Funds of Agency

19. Financial year
20. Accounts
21. Annual Reports
22. Regulations
23. Dissolution of National Roads Board
24. Vesting of assets of National Roads Board
25. Registration of property to be transferred by Government
26. Legal proceedings
27. Terms of service of employees of National Roads Board

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National Road Fund [No. 13 of 2002]

GOVERNMENTOFZAMBIA
______________

ACT
No. 13 of 2002

Date of Assent: 31st December 2002

An Act to establish the National Road Fund Agency and to

define its functions; to establish the National Road Fund; and to provide for matters connected
with or incidental to the foregoing.

[31st December, 2002]

ENACTED by the Parliament of Zambia. Enactment

PART 1
PRELMNARY

1. This Act may be cited as the National Road Fund Act, 2002 and shall come Short title and
into Operation on such date as the Minister may, by statutory instrument, commencement
appoint.
2. (1) In this Act, unless the context otherwise requires-
Interpretation
"appointed date" means the date appointed under section one, Agency " means
the National Road Fund Agency established by section three;
Chairperson " means the person appointed as Chairperson of the Agency under
section five;
"Director " means the person appointed as director under section fourteen;
"Local Authority " means a city council, municipal council or
district council established under the Local Government Act; Cap. 281
"maintenance " means the preservation of roads, including repair
of road surfaces, road sides, structures and road furniture necessary for the safe
and efficient utilisation of roads;
"member" means a member of the Agency or a committee of the Agency;
"road " has the meaning assigned to it in the Public Roads Act;
"Road Development Agency" means the Road Development Act No. 12
Agency established under the Public Roads Act; of 2002
"Road Fund" means the National Road Fund established under Act No. 12
section sixteen; of 2002

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Act No. 11
"road furniture" means accessories of a road that make a road safe for traffic on
the road and includes traffic lights, traffic signs, guard rails and rest area of 2002
facilities;
"Road Transport and Safety Agency" means the Road Transport and Safety
Agency established under the Road Traffic Act; Act No. 11
"road user charges" includes fees levied by the Agency under the provisions of Of 2002
this Act for construction, rehabilitation and maintenance of roads;
"traffic" has the meaning assigned to it in the Road Traffic Act; Act No. 12
" traffic sign " has the meaning assigned to it in the Public Roads Act; and of 2002

"vehicle" has the meaning assigned to it in the Road Traffic Act No. 11
of 2002

PART II
THE NATIONAL ROAD FUND AGENCY

3. There is here by established the National Road Fund Agency which shall be a
body corporate with perpetual succession and a common seal, capable of suing Establishment
and of being sued in its corporate name, and with power, subject to the of Agency
provisions of this Act, to do all such acts and things as a body corporate may by
law do or perform.
4. (1) The functions of Agency shall be to-
(a) administer and manage the Road Fund;
(b) prepare and publish audited annual accounts of the Road Fund,
(c) recommend to the Minister fuel levy and other road user charges and
Functions of
tariffs as required; Agency
(d) recommend to the Minister projects for funding;
(e) allocate resources-
(a) for the construction, maintenance and rehabilitation Of roads based
on a percentage of the annual work programme of the Road
Development Agency; and
(b) for road transport, traffic and safety management based on a
percentage of the annual work programme of the Road Transport and
Safety Agency;

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(f) in consultation with the Road Development Agency, recommend funding for
development of new roads, and
(g) undertake such other activities as are conducive or incidental to its functions
under this Act.
5. (1) The Agency shall consist of part-time members appointed by the Minister
as follows:
(a) one representative of the Zambia Association of Chambers of
Commerce and Industry;
(b) one representative of the National Council for Construction;
(c) one representative of the Zambia Institute of Chartered
Accountants;
(d) one representative of the Economics Association of Zambia; Composition of
(e) one representative of the Transporters Associations; Agency
(f) one representative from the Law Association of Zambia;
(g) one representative from the Chartered Institute of Transport;
(h) one representative of the Attorney-General; (i) one representative
from-
(i) the ministry responsible for finance;
(ii) the ministry responsible for communications and transport; and
(iii) the ministry responsible for works and supply;
(j) the Director of the Road Development Agency;
(k) the Director of the Road Transport and Safety Agency; and
(1) one other person.
(2) The Director of the Road Development Agency and the Director of the
Road Transport and Safety Agency referred to in paragraphs (j) and (k) of
subsection (1) shall be ex-officio members of the Agency and shall have no vote.
(3) The Chairperson shall be appointed by the Minister.
(4) The Vice-Chairperson shall be elected by the members of the Agency from
among their number.
(5) The Agency shall report to the Committee of Minister on Road
Maintenance Initiative at such times and at such places as the Minister may
determine.
(6) The Committee of Ministers referred to in subsection (5) shall comprise the
Minister responsible for communications and transport who shall be the
Chairperson, the Minister responsible for works and supply who shall be the
Vice-Chairperson and the Ministers responsible for finance and national
planning, local government and housing,

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energy and water development, agriculture and co-operatives, tourism,

environment and natural resources and legal affairs.
(7) A person shall not be appointed as a member of the Agency if the person-
(a) is an undischarged bankrupt;
(b) has been convicted of an offence involving fraud dishonesty; or
(c) has been convicted of an offence under any other written law and sentenced
to a term of imprisonment of not than six months, without the option of a fine.
(8) For the purpose of this section "Committee of Minister on Road Maintenance
Initiative" means a Committee responsible for the institution of sustainable road
maintenance.
6. (I) Subject to the other provisions of this Act, a member of the Agency shall
hold office for a period of three years from the date appointment and shall be
eligible for re-appointment for one further term of three years:
Provided that the first members shall be appointed for periods ranging from two
to three years in order to facilitate retirement by rotation
(2) A member other than an ex-officio member may resign upon giving one
month's notice, in writing, to the organisation which nominated the member and
to the Minister.
Tenure of office
(3) The office of the member shall become vacant-
and vacancy
(a) upon the member's death;
(b) if the member is absent without reasonable excuse from three
consecutive meetings of the Agency of which the member has had
notice;
(c) on ceasing to be a representative of the organisation which nominated the
member;
(d) if the member becomes mentally or physically incapable of performing
the duties of a member of the Agency; or
(e) if the member is declared bankrupt.
(f) if the member is convicted of an offence involving fraud dishonesty; or
(g) if the member is convicted of an offence against any other written law
and is sentenced to a term of imprisonment not less than six months
without the option of a fine."
(4) On the expiration of the period for which a member is appointed the member
shall continue to hold office until a successor has be appointed but in no case
shall the further period exceed four months.

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7. Whenever the office of a member becomes vacant before the expiry of the Filling of casual
term of office, the Minister may appoint another member in place of the member vacancy
who vacates office but that member shall hold office only for the unexpired part
of the term.
8. (I) Subject to the other provisions of this Act, the Agency may regulate its
own procedure.
(2) The Agency shall meet for the transaction of business at least once every
three months at such places and times as the Chairperson may determine.
(3) The Chairperson may, upon giving notice of not less than fourteen days, call
a meeting of the Agency and shall call a special meeting to be held within
fourteen days of receipt of a written request to the Chairperson by at least five
members of the Agency.
(4) If the urgency of any particular matter does not permit the giving of such Proceedings of
notice as is required under subsection (3), a special meeting may be called by the Agency
Chairperson, upon giving a shorter notice.
(5) Nine members of the Agency, other than the ex-officio members, shall form a
quorum at any meeting of the Agency.
(6) There shall preside at any meeting of the Agency-
(a) the Chairperson;
(b) in the absence of the Chairperson the Vice-Chairperson; or
(c)in the absence of the Chairperson and the Vice-Chairperson
such member as the members present may elect for the purpose of that meeting.
(7) A decision of the Agency on any question shall be by a majority of the
members present and voting at the meeting and in the event of an equality of
votes, the person presiding at the meeting shall have a casting vote in addition to
the deliberative vote.
(8) The Agency may invite any person, whose presence is in its opinion
desirable, to attend and to participate in the deliberations of the meeting of the
Agency but such person shall have no vote.
(9) The validity of any proceedings, act or decision of the Agency shall not be
affected by any vacancy in the membership of the Agency or by any defect in the
appointment of any member or by reason that any person not entitled to do so
took part in the proceedings.

9. (1) The Agency may, for the purpose of performing its functions under this Committees of
Act, constitute such committees as it considers necessary and may delegate to Agency
any committee such of its functions, as it considers fit.
(2) The Agency may appoint as members of a committee, persons who are, or
are not, members of the Agency, except that at least one member of a committee
shall be a member of the Agency.

(3) A person serving as a member of a committee shall hold office for such
period as the Agency may determine.

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(4) Subject to any specific or general direction of the Agency, a committee may
regulate its own procedure.

10. The members of the Agency or any committee shall be paid such allowances Allowances of
as the Agency may, with the approval of the Minister, determine. members

11. (1) If a member or person is present at a meeting of the Agency or any Disclosure of
committee of the Agency at which any matter is the subject of consideration and interest
in which matter the member or person or the member or person's spouse is
directly or indirectly interested in a private capacity, the member or person shall
as soon as is practicable after the commencement of the meeting, declare such
interest and shall not, unless the Agency or the committee otherwise directs, take
part in any consideration or discussion of, or vote on, any question touching that
matter.
(2) A declaration of interest made under subsection (1) shall be recorded in the
minutes of the meeting at which it is made.

12. (I) A person shall not, without the consent in writing given by, or on behalf Prohibition of
of, the Agency, publish or disclose to any person otherwise than in the course of Publication
duties, the contents of any document, communication, or information which or disclosure of
relates to, and which has come to the person's knowledge in the course of the information to
person's duties under this Act. unauthorised
(2) Any person who knowingly contravenes the provisions of subsection (1) person
commits an offence and shall be liable, upon conviction, to a fine not exceeding
ten thousand penalty units or to imprisonment for a period not exceeding three
months, or to both.

13. (1) The seal of the Agency shall be such device as may be determined by the Seal of Agency
Agency and shall be kept by the Secretary.
(2) The affixing of the seal shall be authenticated by the Chairperson or the Vice-
Chairperson and the Secretary or any other person authorised in that behalf by a
resolution of the Agency.
(3) Any contract or instrument which, if entered into or executed by a person not
being a body corporate, would not be required to be under seal, may be entered
into or executed without seal on behalf of the Agency by the Secretary or any
other person generally or specifically authorised by the Agency in that behalf.
(4) Any document purporting to be a document under the seal of the Agency or
issued on behalf of the Agency shall be received in

evidence and shall be deemed to be so executed or issued, as the case may be,
without further proof, unless the contrary is proved

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PART III

MANAGEMENT AND STAFF

14. (1) The Agency shall, with the approval of the Minister, appoint a Director Director
who shall be the chief executive officer of the Agency and, subject to the control
of the Agency, be responsible for the day to day administration of the Agency.
(2) The Agency shall, with the approval of the Minister, determine the terms and
conditions of service of the Director.
(3) The Director shall attend meetings of the Agency and may attend meetings of
any committee of the Agency and may address the meetings, but shall have no
vote.
15. (I) The Director shall be the Secretary to the Agency. Secretary and
(2) The Agency may appoint such other staff of the Agency as it considers Other Staff
necessary for the performance of its functions under this Act.
(3) The Agency shall determine the terms and conditions of service of the staff of
the Agency.

PART IV

THE NATIONAL ROAD FUND

16. (1) There is hereby established the National Road Fund. Establishment
(2) The Road Fund shall consist of- of Road Fund
(a) such moneys as may be appropriated by Parliament for the purposes of the
Road Fund;
(b) all fuel levy collected, less the cost of collection which shall not exceed three
per cent, in every fiscal year".
(c) such percentage of licence fees, registration fees and international transit fees Act No. 11 of
payable to the Road Transport and Safety Agency under the Road Traffic Act, as 2002
the Minister may determine;
(d) such percentage of road user levies including tariffs, taxes and tolls as may be
determined by the Minister on the recommendation of the agency in consultation
with Road Development Agency; and
(e) such monies as may be paid to the Road Fund by way of loans, grants or
donations.
17. The Agency shall apply the moneys of the Road Fund- Application of
(a) in the construction, maintenance and care of public roads; moneys of Road
and Fund
(b) in road transport, traffic and safety management.

PARTV

FINANCIAL PROVISIONS

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18. (I)The funds of the Agency shall consist of such moneys as may- Funds of
Agency
(a) be appropriated to the Agency by Parliament for the purposes of the Agency;
(b) with the approval of the Minister, be allocated to the Agency from the Road
Fund;
(c) be paid to the Agency by way of loans, grants or donations;
and
(d) vest in or accrue to the Agency.
(2) The Agency may-
(a) accept moneys by way of grants or donations from any source in Zambia and
subject to the approval of the Minister, from any source outside Zambia; and
(b) subject to the approval of the Minister raise by way of loans or otherwise,
such moneys as it may require for the discharge of its functions.
(3) there shall he paid from the funds of the Agency-
(a) salaries, allowances, loans, gratuities and pensions of staff of the Agency and
other payments for the recruitment and retention of staff;
(b) such reasonable travelling and subsistence allowances for members and
members of any committee of the Agency when engaged in the business of the
Agency and at such rates as the Agency may, with the approval of the Minister,
determine; and
(c) any other expenses incurred by the Agency in the performance of its
functions.
(4) The Agency may with the approval of the Minister invest in such manner as it
thinks fit such of its funds as it does not immediately require for the discharge of
its functions.
19. The financial year of the Agency shall be the period of twelve months ending Financial Year
on 3 1 11 December of each year.
20. (1) The Agency shall cause to be kept proper books of account and other Accounts
records relating to its accounts.
(2) The accounts of the Agency, shall be audited annually by independent
auditors appointed by the Agency subject to the approval of the Minister.
(3) The auditor's fees shall he paid by the Agency.
21. (I) As soon as practicable, but not later than ninety days after the end of the Annual Report
financial year, the Agency shall submit to the Minister a report concerning its
activities during the financial year.

(2) The report referred to in subsection (1) shall include information

on the financial affairs of the Agency and there shall be appended to the report-
(a) an audited balance sheet;
(b) an audited statement of the income and expenditure;
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(c) an audited statement of income and expenditure of the National Road

Fund; and
(d) such other information as the Minister may require.
(3) The Minister shall not later than seven days after the first sitting of the
National Assembly next after receipt of the report referred to in subsection (10)
lay the report before the National Assembly

22. The Minister may, by statutory instrument, make regulations for the better Regulations
carrying out of the purposes of this Act.

23. The National Roads Board constituted pursuant to section fifty-five of the Dissolution of
Roads and Road Traffic Act shall stand dissolved on the appointed date. National Roads
Board Cap. 464

24. (1) On or after the appointed date, there shall be transferred to, and vest in, or Vesting of assets
subsist against, the Agency by virtue of this Act and without further assurance- of National
(a) the affairs of the National Roads Board and Roads Board
(b) subject to this Act, all property, rights and obligations which immediately
before the appointed date were the property, rights and obligations of the
National Roads Board.
(2) Except as provided in this Act, every deed, bond and agreement (other than
an agreement for personal service) to which the Government was a party
immediately before the appointed date in respect of the National Roads Board,
whether in writing or not, and whether or not of such a nature that rights,
liabilities and obligations thereunder could be assigned, shall, unless its subject-
matter or terms make it impossible that it should have effect as modified in the
manner provided by this subsection, have effect as from the date of the
assignment thereof, as if-

(a) the Agency had been a party thereto;

(b) for any reference to the Government there were substituted, as respects
anything falling to be done on or after the appointed date, a reference to
Agency; and
(c) for any reference to any officer of the National Roads Board not being a
party thereto and beneficially interested therein there were substituted, as
respects anything falling to be done on or after the appointed date, or
reference to such officer of the Agency as the Agency shall designate.

(3) Subject to the provisions of subsection (2), documents, other than those
referred to therein, which refer specifically or generally to the National Roads
Board shall be construed in accordance with subsection (2) as far as applicable.

25. (1) Where under this Act, any property, rights, liabilities and obligations of Registration of
the Government through the National Roads Board are deemed transferred to the property to be
Agency in respect of which transfer a written law provides for registration, the transferred by
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Agency shall make an application in writing to the appropriate authority for Government
registration of the transfer.
(2) The registration authority referred to in subsection (1) shall make such
entries in the appropriate register as shall give effect to such transfer and, where
applicable, issue to the transferee concerned a certificate of title in respect of the
property or make necessary amendments to the register, as the case may be, and
shall make endorsement on the deeds relating to the title, right or obligation
concerned; and no registration fees, stamp duty or other duties shall be payable
in respect thereof.

26. (1) Without prejudice to the other provisions of this Act, where any right, Legal
liability or obligation vests in the Agency by virtue of this Act, the Agency and proceedings
all other persons shall, as from the appointed date, have the same rights, powers
and remedies (and in particular the same rights as to the instituting or defending
of legal proceedings or the making or resisting of applications to any authority)
for ascertaining, perfecting that right, liability or obligation as they would have
had if it had at all times been a right, liability or obligation of the Agency.
(2) Any legal proceedings or application of any authority pending immediately
before the appointed date by or against the Government in respect of the National
Roads Board may he continued by or against the agency.
(3) After the appointed date, proceedings in respect of any right, liability or
obligation which was vested in, held, enjoyed, incurred or suffered by the
government in respect of the National Roads Board may be instituted by or
against the Agency.

27. (1) On or after the appointed date, the Agency shall on such terms and
conditions as it may, with the approval of the minister, determine appoint as Terms of
officers of the Agency such public officers from the National Roads Board as services of
may be necessary for the performance of the functions of the Agency. employees of
(2) Where an officer from the Public Service is appointed to the service of the Board
Agency-

(a)the terms and conditions of service with the Agency shall not be less Act No. 35 of
favourable than those the officer enjoyed in the Public Service; and 1996
(b)the officer shall be deemed to have retired under section thirty-nine of the
Public Service Pensions Act.
(3) On or after the appointed date employees of the National Roads Board who Act No. 35 of
are not engaged by the Agency under subsection (2) shall be retained by the 1996
Government and shall---
(a) be redeployed in the service of the Government; or
(b) be retired under section thirty-nine of the Public Service Pension Act.

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National Road Fund [No. 13 of 2002]

Single copies of this Act may be obtained from the Government Printer
PO. Box 30136, 10100 Lusaka. Price K3,500