The Compensation Fund

THE COMPENSATION FUND ACT, 2016
A RRANGEMENT OF S ECTIONS
PART I
P RELIMINARY PROVISIONS
Section
1. Short title
2. Interpretation
3. Principles for payment of compensation
PART II
T HE COMPENSATION F UND COMMITTEE
4. Compensation Fund Committee
5. Tenure of office and vacancy
6. Filling of casual vacancy
7. Proceedings of Committee
8. Sub-committees
9. Disclosure of interest
10. Prohibition of publication or disclosure of information to
unauthorised person
11. Immunity
12. Prohibition of payment of allowances or expenses from
Fund
PART III
THE COMPENSATION FUND
13. Compensation Fund
14. Accounts and audit
15. Fund account
16. Disbursement from Fund
PART IV
P ROCESSING AND P AYMENT OF CLAIMS
17. Claims against Fund
18. Determination of applications
19. Power of Committee in respect of claims
20. Authority to pay claimant
21. Apportioning of claims when monies insufficient
PART V
GENERAL P ROVISIONS
22. Annual report
23. Regulations
Compensation Fund [No. 43 of 2016 1013
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K24.00 each.

tion Fund [No. 43 of 2016 1013
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K24.00 each.

An Act to provide for the administration and management of
the Compensation Fund established under the
Constitution; establish the Compensation Fund
Committee and provide for its composition and functions;
provide for the accounting and audit of the Fund; and
provide for matters connected with, or incidental to, the
foregoing.
[27th December, 2016
ENACTED by the Parliament of Zambia.
PART I
P RELIMINARY PROVISIONS
1. This Act may be cited as the Compensation Fund Act,
2016.
2. In this Act, unless the context otherwise requires—
“associate” means—
(a) a person who is a nominee or an employee of a
member;
(b) a conjugal partner or former spouse of a member;
(c) a firm of which a member, or the member’s nominee,
is a partner or a person in charge or in control of
its business or affairs;
(d) a company in which a member or the member’s
nominee, is a director or is in charge or in control
of its business or affairs, or in which a member,
Enactment
Short title
Interpretation
Compensation Fund [No. 43 of 2016 1015
GOVERNMENT OF ZAMBIA
ACT
No. 43 of 2016
Date of Assent: 19th December, 2016

nactment
Short title
Interpretation
Compensation Fund [No. 43 of 2016 1015
GOVERNMENT OF ZAMBIA
ACT
No. 43 of 2016
Date of Assent: 19th December, 2016

alone or together with the member’s nominee,
holds a controlling interest or shares amounting to
more than thirty percent of the total share capital;
or
(e) the trustee of a trust, where—
(i) the trust has been created by a member; or
(ii) the total value of the assets contributed by a
member before or after the creation of
the trust, amounts at any time, to not less
than twenty percent of the total value of
the assets of the trust;
“claimant” means a person legally entitled to make a claim in
respect of the Fund;
“Committee” means the Compensation Fund Committee
established under section 5;
“Chief State Advocate”means the person in charge of civil
litigation in the Ministry responsible for justice;
“compensation” means the damages or award by a court or
other competent body legally authorised to award
compensation to a person as a result of a default of the
State;
“Controlling officer”has the meaning assigned to it in the Public
Finance Act, 2004;
“Emoluments Commission” means the Emoluments
Commission established under the Constitution;
“Fund” means the Compensation Fund established under
Article 209 of the Constitution;
“legal obligation” includes an obligation arising under a
contract, quasi contract or under a trust, including a
constructive trust;
“member” means a member of the Committee;
“Permanent Secretary” means the Permanent Secretary in
charge of legal matters in the Ministry responsible for
justice;
“Principal State Advocate” means the person appointed as
such for the Department in charge of civil litigation in the
Ministry responsible for justice;
“relative” means—
1016 No.

eans the person appointed as
such for the Department in charge of civil litigation in the
Ministry responsible for justice;
“relative” means—
1016 No.

43 of 2016] Compensation Fund
Act No. 15 of
2004
Cap. 1
Cap. 1

43 of 2016] Compensation Fund
Act No. 15 of
2004
Cap. 1
Cap. 1

(a) a member’s son, daughter, brother, sister, nephew,
niece, parent, uncle, aunt, grandparent or cousin;
and
(b) a member’s spouse or the spouse of any of the
persons mentioned in paragraph (a); and
“representative” means a legal representative of a claimant
or a person lawfully responsible for making a claim against
the Fund or on behalf of a claimant. 3. The payment of compensation shall be made in accordance
with the following guiding principles:
(a) transparency;
(b) accountability; and
(c) equity. PART II
T HE C OMPENSATION F UND COMMITTEE
4. (1) There is established the Compensation Fund Committee
that shall administer and manage the Fund. (2) The Committee consists of the following part-time
members appointed by the Minister:
(a) the Permanent Secretary, as Chairperson;
(b) the Chief State Advocate, as Vice-Chairperson;
(c) the Head of Accounting in the Ministry responsible for
justice;
(d) a representative of the Accountant-General;
(e) a representative of the Ministry responsible for finance;
(f) a representative of the Human Rights Commission;
(g) a representative of the Zambia Institute of Internal
Auditors; and
(h) a representative of the Law Association of Zambia.

Human Rights Commission;
(g) a representative of the Zambia Institute of Internal
Auditors; and
(h) a representative of the Law Association of Zambia.

(3) The Principal State Advocate shall be the Secretary to the
Committee. 5. (1) Subject to the other provisions of this Act, a member of
the Committee, other than the members referred to in section 4
(2) (a) to (c), shall hold office for a term of three years from the
date of appointment and may be re-appointed for a further term of
three years. (2) A member shall, on the expiration of the term for which the
member is appointed, continue to hold office until another member
is appointed, but in no case shall an extension of the period exceed
three months. Compensation Fund [No. 43 of 2016 1017
Principles for
payment of
compensation
Compensation
Fund
Committee
Tenure of
office and
vacancy

d
three months. Compensation Fund [No. 43 of 2016 1017
Principles for
payment of
compensation
Compensation
Fund
Committee
Tenure of
office and
vacancy

(3) The office of a member becomes vacant—
(a) on the member’s death;
(b) if the member is adjudged bankrupt;
(c) if the member is absent, without reasonable excuse, from
three consecutive meetings of the Committee of which
the member had notice, without the prior approval of
the Chairperson;
(d) upon the expiry of one month’s notice of the member’s
intention to resign, given by the member, in writing, to
the Minister;
(e) if the member becomes mentally or physically incapable
of performing duties as a member;
(f) if the member is convicted of an offence under this Act or
any other written law and sentenced to imprisonment
for a period exceeding six months without the option of
a fine;
(g) in case of a member referred to in section 4 (2) (g), that
member ceases to practice as an auditor on disciplinary
grounds confirmed by the Zambia Institute of Internal
Auditors; and
(h) in case of a member referred to in section 4 (2) (h), that
member ceases to practice as a legal practitioner on
disciplinary grounds confirmed by the Law Association
of Zambia. 6.

to in section 4 (2) (h), that
member ceases to practice as a legal practitioner on
disciplinary grounds confirmed by the Law Association
of Zambia. 6.

The Minister may, where the office of a member becomes
vacant before the expiry of the term of office, appoint another
member in place of a member who vacates office, but that member
shall hold office for the unexpired part of the term. 7. (1) Subject to the other provisions of this Act, the Committee
may regulate its own procedure. (2) The Committee shall meet for the transaction of its business
at such places and times as the Chairperson may determine. (3) Five members shall form a quorum at a meeting of the
Committee. (4) There shall preside at a meeting of the Committee—
(a) the Chairperson; and
(b) in the absence of the Chairperson, the Vice-Chairperson. 1018 No. 43 of 2016] Compensation Fund
Filling of
casual
vacancy
Proceedings
of
Committee

(b) in the absence of the Chairperson, the Vice-Chairperson. 1018 No. 43 of 2016] Compensation Fund
Filling of
casual
vacancy
Proceedings
of
Committee

(5) A decision of the Committee 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 that person’s deliberative
vote. (6) The Committee may invite a person, whose presence is in
its opinion desirable, to attend and to participate in the deliberations
of the meeting of the Committee, but that person shall have no
vote. (7) The validity of any proceedings, acts or decisions of the
Committee shall not be affected by any vacancy in the membership
of the Committee 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. (8) The Committee shall cause minutes to be kept of the
proceedings of its meetings. 8. (1) The Committee may, for the purpose of performing its
functions under this Act, establish such sub-committees as it
considers necessary and delegate to any of those sub-committees
such of its functions as it considers fit.

is Act, establish such sub-committees as it
considers necessary and delegate to any of those sub-committees
such of its functions as it considers fit.

(2) The Committee may appoint as members of a sub-committee
persons who are or are not members, except that at least one
member shall be a member of a sub-committee. (3) A person serving as a member of a sub-committee shall
hold office for such period as the Committee may determine. (4) Subject to any specific or general direction of the Committee,
a sub-committee may regulate its own procedure. (5) A sub-committee shall keep minutes of its meetings and
shall keep the Committee informed of its activities. (6) Meetings of a sub-committee shall be held at such times as
the Committee may determine or as the Committee shall direct. 9. (1) A person who is present at a meeting of the Committee
or any sub-committee at which any matter is the subject of
consideration and in which matter that person or that person’s relative
or associate is directly or indirectly interested in a private capacity
shall, as soon as is practicable after the commencement of the
meeting, declare such interest and shall not, unless the Committee
or the sub-committee otherwise directs, take part in any
consideration or discussion of, or vote on any question relating to
that matter. Compensation Fund [No.

-committee otherwise directs, take part in any
consideration or discussion of, or vote on any question relating to
that matter. Compensation Fund [No.

43 of 2016 1019
Sub-
committees
Disclosure of
interest

43 of 2016 1019
Sub-
committees
Disclosure of
interest

(2) A disclosure of interest made under subsection (1) shall be
recorded in the minutes of the meeting at which it is made. (3) A person who contravenes subsection (1) commits an
offence and is liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both. 10. (1) A person shall not, without the consent, in writing,
given by or on behalf of the Committee, publish or disclose to an
unauthorised person, otherwise than in the course of duties of that
person, the contents of a document, communication or information
whatsoever, which relates to or which has come to the knowledge
of that person in the course of that person’s duties under this Act. (2) A person who contravenes subsection (1) commits an
offence and is liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both.

liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both.

(3) A person who, having any information which to the
knowledge of that person has been published or disclosed in
contravention of subsection (1), unlawfully publishes or
communicates the information to another person, commits an
offence and is liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both. 11. An action or other proceeding shall not lie or be instituted
against a member of the Committee or a member of a sub-committee
in respect of an act or thing done or omitted to be done in good
faith in the exercise or performance, of any of the powers, functions
or duties conferred under this Act. 12. The Fund shall not be used for debts, allowances, accrued
personal emoluments or for any purpose other than to satisfy awards
of compensation to claimants arising from the default of the State
or as authorised under this Act. PART III
THE COMPENSATION FUND
13.

satisfy awards
of compensation to claimants arising from the default of the State
or as authorised under this Act. PART III
THE COMPENSATION FUND
13.

(1) The Compensation Fund shall, in addition to the purpose
for which it is established under the Constitution, be held and applied
for the purpose of compensating persons who suffer loss or damage
from any default committed by the State or by any representative,
agent or employee of the State. (2) The Fund shall consist of—
(a) such monies as may be appropriated by Parliament for
the purposes of the Fund;
1020 No. 43 of 2016] Compensation Fund
Prohibition
of
publication
or disclosure
of
information
to
unauthorised
person
Immunity
Prohibition
of payment
of
allowances
or expenses
from Fund
Compensation
Fund
Cap. 1

ation
or disclosure
of
information
to
unauthorised
person
Immunity
Prohibition
of payment
of
allowances
or expenses
from Fund
Compensation
Fund
Cap. 1

(b) monies collected from such fees and levies as the Minister
responsible for finance may prescribe, in consultation
with the Minister;
(c) such monies as may be received by the Fund from
donations and grants from any source, with the approval
of the Minister;
(d) such other monies as may vest in or accrue to the Fund;
and
(e) such other monies as may, by or under any other law, be
payable to the Fund. 14. (1) The Committee shall ensure that prudent controls are
established for the Fund relating to—
(a) fiscal controls and accounting procedures governing the
Fund; and
(b) reporting procedures for matters relating to the Fund. (2) The Committee shall cause to be kept proper books of
account and other records relating to the accounts of the Fund. (3) The Fund shall be audited annually by the Auditor-General. (4) The Auditor-General’s fees shall be paid by the Ministry
responsible for justice. 15. The Committee shall open and operate an account for
purposes of the Fund at such commercial bank as the Committee
may determine, in which the money received for the purposes of
the Fund shall be deposited and kept. 16.

Fund at such commercial bank as the Committee
may determine, in which the money received for the purposes of
the Fund shall be deposited and kept. 16.

(1) There shall be paid from the Fund—
(a) the amount of claims, including costs, allowed by the
Committee; and
(b) the legal and other expenses incurred in relation to the
Fund or in the exercise by the Committee of the rights,
powers and authority vested in it under this Act in relation
to the Fund. (2) The total amount of compensation payable out of the Fund
under this Act to a person who is entitled to compensation shall not
exceed an amount lawfully adjudged to be due to the claimant. Compensation Fund [No. 43 of 2016 1021
Accounts
and audit
Fund
account
Disbursement
from Fund

d an amount lawfully adjudged to be due to the claimant. Compensation Fund [No. 43 of 2016 1021
Accounts
and audit
Fund
account
Disbursement
from Fund

PART IV
P ROCESSING AND P AYMENT OF CLAIMS
17. (1) Subject to the other provisions of this Act, a person
who receives an award of compensation by a court, tribunal or
under an agreement shall be paid compensation from the Fund
subject to—
(a) the Attorney-General submitting the necessary documents
relating to the award to the Committee; and
(b) the verification of the necessary documents by the
Committee. (2) In addition to any compensation payable under this Act,
interest from the date of judgment or agreement shall be payable
out of the Fund on the amount of the compensation, less any amount
attributed to costs and disbursements, calculated in accordance
with the State Proceedings Act. 18. (1) The Committee shall, within thirty days of receipt of
a request from the Attorney-General, verify the claim. (2) The Committee shall, when verifying an application take
into account—
(a) whether the amount claimed is in accordance with the
judgment;
(b) whether the amount claimed is a subject of an appeal or
continuing litigation;
(c) the manner in which the amount claimed may be disbursed;
and
(d) any other matter necessary to give effect to the provisions
of this Act.

igation;
(c) the manner in which the amount claimed may be disbursed;
and
(d) any other matter necessary to give effect to the provisions
of this Act.

(3) The Permanent Secretary shall submit a report of the
proceedings of a meeting of the Committee to the Attorney-General
within fourteen days of the meeting. 19. (1) The Committee shall, where it verifies a claim for
compensation under this Act, facilitate the payment of the claim. (2) The Committee shall, if —
(a) it finds that a claim for compensation based on the judgment
or order is not correct or lawful, refuse the payment of
the claim; or
(b) it verifies part of a claim based on the judgment or order,
facilitate the payment of the verified part of the claim. 1022 No. 43 of 2016] Compensation Fund
Claims
against Fund
Cap. 71
Determination
of
applications
Power of
Committee
in respect of
claims

of the claim. 1022 No. 43 of 2016] Compensation Fund
Claims
against Fund
Cap. 71
Determination
of
applications
Power of
Committee
in respect of
claims

(3) The Committee shall not facilitate a payment where it finds
that the claim or part of the claim does not comply with the terms
of the judgment and shall notify the Attorney-General stating the
grounds for the finding. (4) The Committee shall, where it verifies a claim based on a
judgment or order, transmit a report of its verification and supporting
documentation in the prescribed form to the controlling officer for
payment. 20. (1) The verification of a claim by the Committee is
sufficient authority to pay the claimant the amount allowed. (2) The Controlling officer shall, where a claim has been
verified, effect payment in the prescribed manner and form. 21. Where the amount at credit in the Fund is insufficient to
pay the whole amount of the claims against it which have been
allowed, the amount at credit in the Fund shall be apportioned among
the claimants in such manner as the Committee considers equitable,
and any claim that is unpaid shall be charged against future receipts
of the Fund and paid out of the Fund when monies are available. PART V
GENERAL P ROVISIONS
22.

that is unpaid shall be charged against future receipts
of the Fund and paid out of the Fund when monies are available. PART V
GENERAL P ROVISIONS
22.

(1) The Committee shall, but not later than ninety days
after the end of the financial year, 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 Fund and there shall be
appended to the report—
(a) an audited statement of financial position;
(b) an audited statement of comprehensive income; and
(c) 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 (1), lay the report before the National
Assembly. 23. The Minister may, by statutory instrument, make regulations
for the better carrying out of the provisions of this Act. Compensation Fund [No. 43 of 2016 1023
Authority
to pay
claimant
Apportioning
of claims
when
monies
insufficient
Annual
report
Regulations

1024