Republic of Zambia

DEPARTMENT OF ADMINISTRATOR GENERAL AND

OFFICIAL RECEIVER -
PRESENTATION MADE AT THE

STAKEHOLDER CONSULTATIVE MEETING HELD AT THE

MINISTRY OF JUSTICE.

28TH JUNE, 2023

 OUTLINE
Republic of Zambia Republic of Zambia

1. Introduction

2. Functions and Objectives of

the Department

3. Reporting Structure

4. Interaction with public examples

5. Conclusion
 Republic of Zambia

1. INTRODUCTION
 INTRODUCTION

 The Department of the Administrator General and Official Receiver

is a Department under the Ministry of Justice.

 The Department comprises of two divisions namely: The

Administrator General and The Official Receiver.

 The Department handles succession and inheritance issues and

receiverships/business rescues among other things.

 The Department is headed by the Administrator General and

Official Receiver.
 ADMINISTRATOR GENERAL

Corporation Sole
 The Office of the Administrator General is a creature of statute
established by the Administrator-General’s Act, Chapter 59 of the
Laws of Zambia.
 The institution is a corporate sole with perpetual succession and an
official seal, capable of suing and being sued.
 Under Section 14 of the said Act, the Administrator General is also
a Public Trustee.
 Other relevant laws that the Department administers are The
Intestate Succession Act, Chapter 59 of the Laws of Zambia, and
the Wills and Administration of Testate Estates Act, Chapter 60 of
the Laws of Zambia.
 ADMINISTRATOR GENERAL

Mandate of the AdGen

 Render appropriate legal advice on the administration of deceased’s
estates and facilitate the resolution of disputes.

 Ensure the effective interpretation of the Law relating to

administration of deceased’s estates.

 To administer the estates of deceased’s persons, where the

Administrator General has been appointed by a competent Court of
Law.

 To act as trustee in the administration of trusts contained in any

Will or implied by Law
Mandate of the AdGen-Cont
 Render appropriate legal advice on the administration of deceased’s
estates and facilitate the resolution of disputes.

 Ensure the effective interpretation of the Law relating to

administration of deceased’s estates.

 To administer the estates of deceased’s persons, where the

Administrator General has been appointed by a competent Court of
Law.

 To act as trustee in the administration of trusts contained in any Will

or implied by Law.
Mandate of the AdGen-Cont
 As a lead institution on matters of inheritance and succession, the
department also conducts sensitization programmes on the law of
succession.

 When acting as administrator of deceased person’s estate, the

Administrator General’s duty is to gather the estate and distribute it
to the lawful beneficiaries in accordance with the provisions of the
law.(Section 19 of the ISA Act, CAP 59)
 Therefore, the Administrator-General has at all times in his hands
moneys standing to the credit of various estates, being temporary
cash balances awaiting distribution or investment in accordance
with the AdGen Investment Rules, CAP 58.
AdGEN-Accounts
 Section 19 of the Administrator General Act states as follows;
“19. (1) The Administrator-General shall cause a complete inventory to
be made of every estate of which administration is committed to him,
and shall keep an account of all receipts, payments and dealings with
every such estate; and he shall retain all letters received, and copies of
all letters written by him, and all deeds, writings and papers relating to
such estate:
Provided that the Administrator-General may in his discretion destroy
any private papers, bills, receipts, memoranda and other similar
documents of no value, which he has received along with the estate.
AdGEN Accounts-Cont
 (2) For the purpose of keeping the said accounts, the Administrator-General
shall cause to be opened at a bank to be approved by the Minister an account
to be called the "Administrator-General's Account" and payments of money
into and out of such account shall be made in such manner and subject to
such conditions as the Minister may direct.

 (3) The Administrator-General's Account shall be audited by or on behalf of

the Auditor-General at such intervals as the Auditor-General shall deem
necessary.
AdGEN-Reporting line
 Section 33 of the Administrator General Act provides that, “ The
Minister may, by statutory instrument, make rules for the better
carrying out of the purposes and provisions of this Act, and for
regulating the proceedings of the Administrator-General.”

 The Minister currently vested with the functions with regards to

administration of estates is the Minister of Justice. (Section 2 of CAP
2 as read with Gazette Notice No. 1123 of 2021)
AdGEN-Fees and Charges

 The law authorises the Administrator General to charge fees in

respect of the duties.
 This is in accordance to Section 23(1) of the Administrator General’s
Act as read with Rule 3 of the Administrator-General (Fees) Rules,
Chapter 58 of the Laws of Zambia. These provisions stipulates as
follows;
 Section 23
“(1)There shall be charged in respect of the duties of the
Administrator-General such fees as may from time to time be prescribed.
AdGEN-Fees and Charges Cont

 (2) Any expenses which might be retained or paid out of any estate in
the charge of the Administrator-General, if he were a private
administrator of such estate, shall be so retained and paid and the
fees prescribed under subsection (1) shall be retained and paid in like
manner in addition to such expenses: such fees, charges and
reimbursements shall have priority over all debts of the deceased and
may be deducted from any moneys received by the Administrator-
General in the course of the administration.”
 THE OFFICIAL RECEIVER (OR)

OR-Corporation sole
 The Official Receiver is a Corporation sole established by Section
71 of the Bankruptcy Act, Chapter 82 of the Laws of Zambia to
oversee and administer estates of bankrupt persons.
• “(1) There shall be an official receiverIsofequally
debtors' estates for
Zambia, and as many assistant official receivers as may be required
from time to time.
• (4) The official receiver shall be a corporation sole by the name
of the official receiver and shall have perpetual succession, and an
official seal, and may sue, or be sued in his corporate name.”
 OR - Cont…

• The Official Receiver has an expanded mandate under the

Corporate Insolvency Act No. 9 of 2017 which include;
 Safeguarding the company’s assets and records, report to
creditors and shareholders on the company’s assets and
liabilities.
 Report to Court when called to do so.
 Where the Official Receiver is appointed as Liquidator;
identifying the assets to be sold, arrange for the valuation and
sale of such properties and distribute the proceeds of such sale
equitably.
Cont.
 5. Where a private insolvency practitioner has been appointed,
whether in a liquidation or receivership; to provide checks to
ensure strict adherence to insolvency law and to take action where
there have been obvious breaches.

 Conduct investigations to establish the circumstances that led to

the company’s insolvency, misconduct, fraudulent activity etc.

 6. Ensure that insolvency practitioners take reasonable care in

their management of the estate’s affairs.

 7. Act as Interim Business Rescue Administrator in business rescue

proceedings.
 8. Attend Court where matters involve litigation.
 etc
OR-Fees and Charges
 Both the Bankruptcy Act and the Corporate Insolvency Act gives the
OR authority to charge fees and expenses in respect of its duties.
“It shall be the duty of the official receiver of Zambia to remit
the proceeds of the realization of the property of the bankrupt,
and all other money of the estate coming into his hands as such
agent as aforesaid, to the person for whom he is acting, or as
such person may direct, after deducting such expenses as may
have been properly incurred by him; and the distribution among
the creditors of all such money shall be carried out in accordance
with the law of the reciprocating country in which the
adjudication order was made.” (Section 155 of the Bankruptcy
Act)
 When acting as Receiver, Business Rescue Administrator or
Liquidator is entitled to the payment of a fee which shall be a
percentage of the proceeds of the receivership/liquidation.
(Section 11(1), 35(1) and 70(1) of the Corporate Insolvency Act)
OR-Accounts
 Section 122 of the Bankruptcy Act, CAP 52
“The accounts of the official receiver in connection with proceedings
under this Act shall be audited in such manner as the Minister
responsible for finance may direct; and, for such purpose, the official
receiver shall make such returns and give such information as the
auditor appointed by the said Minister for the purpose may require.”
OR-Reporting lines
 Historically the appointment of OR to act as Liquidator is done by the Minister
of Finance. This appointment in some cases come with specific duties.
 Some of the defunct Companies that have been referred to the OR includes;
1. Serios International Limited
2. Ramcoz
3. Zambia Steel
4. ZANOC
5. Kapiri Glass
6. Reserved Mineral
7. Zimco
8. etc
Issues of Interest
 The Administrator General office and Official Receiver is personally
liable for its actions.
 As a Personal Representative of deceased persons, the AdGen is a
fiduciary and thus legally bound to act solely in the best interests of
the estate.
 The appointment as PR is by an order of Court Order-PR is thus
answerable to the Court for actions done in the execution of
duties.
 This department’s clients are beneficiaries of estates, members of
the public and Companies being administered by the OR. As a
result, the department often sues the Attorney General.
 As the department is a legal person, it does not fall under the Office
of the Attorney General and as a result has no access to the
Compensation fund.
 Unlike the functions relating to ‘ the administration of estates’ which
are vested in the Minister of Justice, the functions relating to
Liquidation/Receiverships of Companies seem not to be vested in any
Issues of interest-cont
 Section 2 of the Public Finance Act defines public funds and public money
as,

public funds” means funds received electronically or in any other form

in person, through the bank or any other financial institution on behalf
of the Central or local Government by an office holder by virtue of the
office holder’s employment, and includes public monies;

Public monies” means money received by an office holder

electronically or in any other form in the course of the office holder’s
employment or any other person directly or indirectly for the purpose
of the Central or local Government, and includes all stores, stamps,
negotiable instruments, bonds, debentures, investments, donations and
other securities raised by or received by or on behalf of, or for the
benefit of the Republic;
 Republic of Zambia

5. CONCLUSION
 CONCLUSION

• In conclusion, the department administers

deceased person’s estates, and ensures the
proper administration of receiverships and
business rescues.
WAY FORWARD/RECOMMENDATIONS
QUESTIONS
THANK YOU!