Republican Vice-President Dr Guy Scott has reported Zambia Sugar Plc to the Zambia Competition Commission for using their monopoly to overprice their product.
This is according to a press statement released by Patron Chilemba ,First Press secretary Zambian High Comission South Africa.
Dr Scott said government needs to enforce regulation on the mining operations in the country to curb vices such as tax evasion and ensure that people get a fair share from their natural resources.
A recent report by a non-governmental organization Action Aid entitled Sweet Nothings: claims that Zambia Sugar Plc, a company in the Illovo Sugar group, which was bought in 2007 by Associated British Foods, uses tax-haven sister companies in Ireland, Mauritius and the Netherlands to minimise tax and has in the process prevented Zambia from collecting $27-million in tax revenue.
However, in a recent interview Dr Scott said although he does not concur with the allegations of tax-evasion against Zambia Sugar, he believes the company is guilty of using their monopoly to overprice their sugar products, a matter he says he has since reported to the competition regulator, the Zambia Competition Commission.
“I think people should understand there is a problem with the public sector and a bigger problem with the private sector which needs to be addressed” Dr Scott said.
And reacting to recent protestations in South Africa’s Business Day Newspaper on the decision by government to ban foreign sales of local gemstones, with some analysts like David Gleason accusing government of returning to Dr Kenneth Kaunda’s era of nationalizing mines in the story headlined “Cut from the same Kaundan cloth”, Dr Scott said Gleason should acknowledge that there have been massive rip-offs by foreign mining companies of the profits they were making from Africa’s resources.
“What he should do as a very experienced mining manager, he was in Anglo-American years ago, that we should find a solution to the issue of taxation, externalization of accounts, or part of the accounts,” Dr Scott said. “It’s much more sensible than saying that Zambia is being paranoid again about these companies…some of them have cheated tax evasion not so long ago. If they will do that to the United States government, what will they do to the Zambian government? So it’s re-assurance that is needed, it’s regulation.”
Dr Scott said what was needed world over was not necessarily public ownership, but regulation in order to curb cheating and ensure that people got a fair share from their resources.
He said Kagem could not claim innocence because that was not obvious to everybody.
“What we are emphasizing is that we are not accusing investors of being thieves, but the need to enhance transparency that they should be above suspicion,” said Dr Scott.
On the issue of job creation in the country, Dr Scott said the government has embarked on ambitious programmes in infrastructural development in form of roads, housing, recruitment of people into jobs and resuscitation of neglected industries such as rail transportation.
He said he was confident that the over seven (7) percent growth target for 2013 would be attained mainly as a result of the capital-intensive projects in mining.
“A lot of countries including South Africa are making what looks like big economic strides because of what they are doing in Capital intensive areas like gold mining, copper mining in Zambia,” said Dr Scott. “(However), the actual people still remain poor and that’s what we have to focus on.”
I hope Dr Scott supports tax justice and the government supports the tax justice network’s efforts for country by country reporting for international companies. Would enable all countries to tax appropriately.
Why press statement by first press secretary south african high commision in south africa???
sounds good..Dr scot… what about Glencore moponi mine`???.. windfall tax.. shani apo!!1
Zambia Sugar is just doing what it can to maximize the profits.Big international corporations and cartels have had been using tax havens for decades if not centuries.The good thing is that everything they are doing is legal but immoral.
Just like mutati is happy without windfall tax and munkombwe is happy with eating from politics any company will look for loopholes to maximise profit.
This story is everywhere but nowhere. In the first few sentences it wonders from one unrelated issue to another. Why is Chilemba in South Africa issuing the Press Release? Next sentence jumps to mining: “Dr Scott said government needs to enforce regulation on the mining operations in the country to curb vices such as ….”
In the next sentence the story jumps to tax evasion. A recent report by Action Aid claims that Zambia Sugar Plc, uses tax-haven sister companies abroad to minimise tax thus preventing Zambia from collecting $27-million in tax revenue.
Mr Editor???
Niba Luzek Times aba
Zambia Sugar should also stop the monopolistic trend of allowing one distributor in a province, conniving with one transporter who is also the sole distributor,, good example is Eastern Province, easy to create an artificial shortage or an unnecessary price hike. Most of these trends affect the common man. Or shall we say that the management has someone who is chewing with the distributor? Same goes with companies like Dunavant, one supplier & one transporter mostly? Why?
Monopoly? What happened to Kafue Sugar?
Mr Veep u r in government no need to report them just summon them to your office and tell them to be fair otherwise threaten to bring regulation and taxes to counter their greed. Simple solution which doesn’t need technocrats and the slow moving Competition Commision.
Veep is right, the competition commission has authority and not the VP over such issues hence the report. The veep has power to make sure whatever result comes out will be supported by the govt. Dr scott, you make me proud. A galant team with MCS to develop this nation raped by MMD.
My thoughts exactly. Then again given the disjointed reporting of the article (like the majority of LT’s other stories) it would not surprise me to eventually learn that is exactly what is going to happen
You know people, am not being paranoid, but this man should be given the opportunity to rule this country. I am not a supporter of PF but guy is our ticket to a good future
THAT’S WHY MICHEAL APPOINTED HIM. WEN IS THIS(EXPLOITATION) GOING TO COME TO AN END? WHY SHOULD WE, THE OWNERS OF THE LAND CONTINUE TO WALLOY IN POVERTY WHILE OTHER HAVE EVEN MORE WEALTH .OH JESUS HELP US!
This is a very good step taken by our Veep. I am very encouraged.
Good point DR Scott, these guys think they will continue raping Zambia as they did. Ohh no. Time has come to show them that they are dealing with a new Zambia. Regulate them in the same way United State of America is regulating them.
Peace and Prosperity to Mother Zambia.
So now you realize these companies have been using internal transfers and Tax shelters so as to not pay taxes. the most common practise i have seen in my Forensic Accounting world is Inter company loans at 20-25% interest booked to the P&L and being expensed. When initially there was no LOAN to begin with. Additionally the Scam of Internal Management FEES is ridiculous.
This is what ZIMCO board was warning you the same people at privatization but noone listened so now deal with it. You VP were the ring leader in wanting the parastatals sold. Now you complain and cry wolf. Just grab Zambia Sugar, NMC, Zam Brew, Chilanga Cement, Mines, Kafironda and ZANACO. You the government will not regret that decision.
Bwana tell them..that would be the perfect solution at this time, provided we can provide good MANAGEMENT.
Guy Scott is such an idi.ot! This chap has in fact been paid off by Zambia Sugar to protect them from public furry! He is trying to divert public anger from the issue of Tax Evasion to a smaller issue of over pricing! Guy Scott is not an accountant or a Tax expert. The issue of Tax evasion was investigated and exposed by UK Tax experts…so on what basis does Guy Scott not agree with that report? He is the kind of leaders that we dont need for our country? It is clear that this old man protecting his friends at Zambia Sugar and that is very unfair to Zambians – and of course he is not Zambian himself except on paper!
Too many contradictions from Guy Scott, instead of advocating for tax reform he is busy making senseless utterances….one only has to browse through the ZRA website to see what lavish incentives these investors are showered with.
Wake up Scott!!
Is the story about Mining or sugar?
Veep Mudala, you talk sense everytime you open that learned mouth. Thanks for being our veep. Thanks to MCS for seeing the talent in you.
Daudi isabi #12 Chi racist iwe.You are the characters that are taking us 20 years backwards.Give credit to sensible people like Guy.You dont need to be an accountant to see that a company is overpricing.
I feel sorry for you. I know you are saying this because you dont know how cynical whites are. I live with them in their country, work with them and I even manage them. What Scott is saying does not really help the poor zambians. We are losing so much money by Zambia Sugar not paying the correct taxes but the moron Scott is defending Zambia Sugar. Just to divert the attention of Zambians, he instead brings in a silly case of overpricing which cant go anywhere and wouldnt bring much money anyway. All companies are overpricing in Zambia including Zambia Breweries, Airtel, MTN, Shoprite, UNZA, etc BUT Scott picks out Zambia Sugar only to divert attention…yet there are no price controls in Zed. That is a muzungu for you….and unfortunately he has succeeded in diverting your attention too!
Was Scott in RSA 4 the statement 2 b issued from there? This gentrocratic govt VIPs just move like wondering dogs without telling the nation. Secondly, Scott is just making one of those political noise and we know from history that nothing comes from it
These are issues you people who claim to be educated should be genuwinely discussing and not HH this MCS that, RB this Kabimba that. It only supplies amunition to people like mushota to ridicule black people, especially africans.
I am dissapointed that UNZA school of engineering curriculum needs modernising, and no one seems to care about it. I feel this is where our probems as a nation start from. But we seem to be happy to blame polititians and continue with the status quo.
Now you have started talking Mr Scott! That’s what we want to hear. Make no mistake we are a ‘mining based economy’ and we know that copper is a wasting asset. I learnt that in grade 1. What do they say in English….’make hay whilst the sun still shines’ Let us use this God given natural resource to better our people not foreigners. Let us go into manufacturing and export finished copper products to other countries rather than exporting the cathodes. Make sure the investors give to Caesar what belongs to Caesar! Even the bible teaches us so.
@3 & 14, I think that the story is well written. The issues facing the country are tax evasion by the mining companies, big investors like the Zambia Sugar and others that are still being investigated. These companies are exploiting our country and government needs to wake up ad curb the vice. No where in this article does it mention The VP being outside the country – in SA in particular. The article is written on extracts or snippets to report on wider yet related issues. Comprehension and composition it was called in my day!
stupid excuse/s you have !! dude,, rather keep it in your underpants
I am proud of u veep.These are the issues that will deliver the much needed development to our Zambia. Lets support such progressive moves irrespective of our political affiliation. It is a peoples battle.
Cheers mother Zambia
Scott is right – Zambia is being ripped off
“Republican Vice-President Dr Guy Scott has reported Zambia Sugar Plc to the Zambia Competition Commission for using their monopoly to overprice their product.”
But what is Zambia Competition Commission doing by itself that it takes a third person to report to it? Sleeping? Or that is how it operates, i.e that one must report a case to it before it acts.
NOT ONLY ZAMBIA SUGAR VP, MOST INTERNATIONAL COMPANIES TAKE ADVANTAGE OF ZAMBIA, A LOT OF THEM PLAY AROUND AND DON’T PAY TAXES AS THEY SHOULD. LET THERE BE RULES NOT TO ALLOW THEM TRANSFER MONEY OUT. MAYBE SOME SORT OF WITH HOLDING TAX FOR ANY FOREIGN SUPPLIERS NOT LISTED IN ZAMBIA. WELL DONE VEEP. MORE MONEY FOR ZAMBIANS.