Friday, March 29, 2024

It will be madness to introduce INDECO and expect different results-Milupi

Share

Charles Milupi Addressing the media
Charles Milupi Addressing the media

Opposition Alliance for Democracy and Development (ADD) president Charles Milupi has charged that it will be madness to reintroduce the Industrial Development Corporation (INDECO) in the country and expect different results.

Mr. Milupi said this is because the country has had such a parastatal company before whose end results were shortages of commodities and a stunted economy.

He said that such kind of parastatal companies were only sucking up government funds.

Mr. Milupi wondered what difference the country should expect from the reintroduction of INDECO when there is already some history that tells how INDECO faired in the past.

The ADD president has however, observed that such parastatal companies are not meant to fail but that what makes them fail is the nature of the shareholding which is usually the government.

Mr. Milupi told Qfm in a telephone interview that top government officials tend to push around managements of such parastatal companies by ordering them around to do certain things and stop them from doing other things.

[pullquote]PF already indicated that INDECO will be used to create employment, when purpose of creating a company should be to make profit and making profit creates employment.[/pullquote]

He said that with such a trend, people managing such parastatal companies do not have the freedom to act out of their professionalism as managers which in turn makes such companies fail.

Mr Milupi said that it is on this basis that he does not expect anything different from the reintroduction of INDECO under the PF government because it has already indicated that INDECO will be used to create employment, when the purpose of creating a company should be to make profit and making profit creates employment.

Meanwhile, former INDECO bosses have observed the need for less political interference if the Patriotic Front is to re-introduce the parastatal company.

The Former bosses who preferred to remain anonymous have told Q-News in an exclusive interview that the major problem that led to the scraping-off of INDECO by the Fredrick Chiluba regime was political interference.

They have however wondered what style the PF government is going to use in order for the parastatal to benefit the nation.

The former INDECO bosses feel the idea of reintroducing the parastatal is good as long as there is less political interference in the running of the company.

They point out that the UNIP regime went too far because they were trying to assume the socialist style of business.

56 COMMENTS

  1. President Sata served under Dr. Kaunda for a long time and he admired the old man’s style of doing things. This is the more reason why we see reintroduction of systems we found unworkable previously. The President does not realize that times have changed and certain things, like INDECO can’t work. Never!

  2. Thank for consulting us. I am still in pains to know who acquired the Zambia Agriculture Development Limited(ZADL) and Tobacco board of Zambia (TBZ) properties. For you non agric and young, ZDL owned 80% of these commercial cattle you see now, Mutala ranch in kalomo, more 40 000 ha, Changa farms,etc, while TBZ, most of the land from Mazabuka to Kalomo.

    Mwebantu.

    • Hi, if you would care to find out who was involved in the liquidation and privatisation of companies? You will know who to ask about who bought what property…

    • The TBZ farmers were sold to employees or given as redundancy packages. I own one such farm along Livingstone-Choma road. The Zilangwa farms was over run by makalanguzu. Anyone else who knows more history?

  3. This INDECO topic seem to have generated some robust debate from both side of the issue, I just thought I throw in my hat in the ring too on this topic.

    I agree with Bo Milupi to some a extent, but I have a different view taken by probably most other people who said that we really shouldn’t even be talking about INDECO at this stage. We need to address the governance issues first. Lets have real seperation of powers sorted out in the constitution first. Am even worried to hear that the president will chair these parastatals..who is gonna run the country then. And the only qualification is that he is called Michael Sata man of Action. I think there is only one such person on earth, what happens when he dies, we fold up or what? TBC

    • I think lets put a legal framework in place first which will make our state owned companies to operate freely from political influence. When we have that framework in place, let us then give it a test run on ZESCO, ZAMTEL, RDA, ZR and many other Government owned entities and even the management of the 25 % government stake in the mines and Banks.

      If we trully run these operations successfully and generate significant profits to even create more jobs, then we can come back and now debate about resuscitating INDECO.

      Right now the governance structure is like that of UNIP, only difference is UNIP called its cronies vigilantes and PF calls them Kaponyas or cadres, everything else the is same and big disaster about to happen if the introduce INDECO

    • I tend to share your fears and your hopes. The problems of para-statal business entities in Zambia lay in bad governance. Their intentions were/are unequivocally good. But, we first of all have to deal with good national and corporate governance issues. First, total indipendence of the people at personal, family, community, ward, constituency, district, and regional levels – away from centralism and one man shows! We should have full separation and independent powers of government. At the helm, we should separate the head of state from head of government [executive]. Parastals are not a mal in se! They can greatly help to spin the wheels of the economy and allocate resources equitably, both vertically and horizontally in all parts and sectors of the country. Get back to the drawing board!

  4. Milupi says, “It will be madness to introduce INDECO and expect different results?” THIS IS WARPED REASONING.

    IS IT MADNESS TO RE-REGISTER A PARTY SUCH AS YOURS THAT KEEPS LOSING ONE ELECTION AFTER ANOTHER AND EXPECT DIFFERENT RESULTS IN 2016?

  5. Stupidity is doing the same thing expecting different results.INDECO reloaded is a half baked idea especially since the corrosive culture that led to its failure in the 1st place is still intact.

  6. MR MILUPI,
    THE ECONOMY THEN WAS A socialist ECONOMY.
    TODAY, WE HAVE ADOPTED PRIVATE ENTERPRISE.

    WHY NOT LET INDECO COMPETE WITH THE PRIVATE SECTOR LIKE OTHER INDECO SUCCESSFUL STORIES IN OTHER COUNTRIES?

    • @LUAPULA PREMIER. All I can say is shame on you……………………….! And of course your coribant partner, Saulosi. Such dearth of reasoning……I hope you are not even married lest you produce children who will my God be like……………

  7. Milupi is a shareholder at C.E.C. (copperbelt Energy Corporation) and it’ll be one of the companies which will be swallowed by INDECO.

  8. Luapula you were born yesterday, you need to be reminded of the hardships people went through bacause of such enefficient companies, business is tough like the saying i dont think we will care for them and people of Zambia will bring back their attitudes of stealing ,laziness which will bring those companies to there knees. not forgetting pf cadres feeling empowerment of grabbing whatever they want,demand for better pay and every one will be fired as we have a firing government

    • Check to see how many national airlines have failed worldwide! Best performing airlines are privately owned. People ought to learn from their mistakes of the past.

  9. Avoindi and red Capitalism typical of china man and chisense allowing private to do their thing and venturing in developing the not so much attractive industries not favourite to private investements but of value not as an umbrella of both private and public selling when its right like a venture capitalist

  10. @China

    THINGS HAVE SINCE CHANGED.

    DO WE SUSPEND PARTICIPATION IN THE FIFA WORLD CUP JUST BECAUSE OUR PREVIOUS ATTEMPTS TO WIN THE CUP HAVE FAILED! OR NO MORE CHILDREN BECAUSE OF SEVERAL MISCARRIAGES IN THE PAST! NO NATIONAL AIRLINE BECAUSE OF THE DEFUNCT ZAMBIA AIRWAYS! REALLY!

    A SMART PERSON WILL ENGAGE A NEW TRAINER AND PLAYERS, A NEW CONSULTANT OR NEW DRUGS.

    PLEASE BE OBJECTIVE. DON’T BE PARTISAN OR TOO NARROW MINDED LIKE MOST UPND AND MMD CADRES. 50 YEARS ON, STILL NOTHING TO SHOW OFF.

    @China, WHY HAVE OTHER INDECOs SUCCEEDED ELSEWHERE?

    • So you Luapula Premier and Mpundu Trust at same time. Just maintain one name. What is your problem man?
      Have real supported your boss, head on. Thus the way to go, but at time take time are digest what others are saying.

      No one is right all the times, what is your best suggestion to deal with INDECO issue. Do you think the President should be the chairperson for this and where are these powers stipulated in the constitution?
      Mr, Luapula and Mpungu.

    • LUAPULA PREMIER or Mpundu Trust is debating very well. Yes we must not wait for the private alone to develop Zambia.

      we are alive to the fact that the Private sector will have and has contributed a lot to the development of the country in the past. We want this to continue and even go into higher gear of the rate of private investment flows into Zambia.

      But between you and I, we also know that for the last 20 years this path has been pursued vigorously by the successive MMD governments under FTJ, Levy and RB. What did we end up with by the time we booted them out? 80% youth unemployment! If you guys think the idea is bad, tell the nation of better ideas to augment the efforts of the private sector and ensure that even the rural places where private businesses are not keen to go…

    • “Other Indeco have succeeded elsewhere” because the setup is different. There is rule of law and laws are respected. Not the party-and-its-government mentality that prevailed in the UNIP era and which is already rearing its ugly head in this PF rule. Indeco will just benefit the president and his family and relatives. For now the idea of Indeco should be put on hold until we have sober people in government.

  11. @Italian Presidential Tissue

    WHAT IS YOUR ISSUE HERE?
    ARE U AGAINST INDECO PER SE?
    OR ARE YOU AGAINST ONE PERSON BEING OVERSEER?
    WHAT IS REALLY YOUR ISSUE?

    IF SATA IS THE ISSUE, DON’T YOU THINK THE FELLOW IS SIMPLY NERVOUS ABOUT THE PROJECT FAILING LIKE OTHERS IN THE FIRST REPUBLIC?

    WHY THEN ARE YOU NOT JUST OFFERING UNBIASED, NON-PARTISAN AND CADRE-INDEPENDENT OPINION ON THE SUBJECT?

  12. this is going to be a vehicle for nepotism,political patronage,inertia and inefficiecy.dont expect that there will be no political interference because the interference is currently going on in the parastatals that are here now,things in zanbian parastatals are never done based on merit or professionalism.this all idea is such a
    bad one

  13. Why is so hard to understand that parastatals can work under effective manager. Right now Zambia imports almost everything from tissue to matchsticksn ppeople cannot appreciate reintroduction of manufacturing companies again. Ala bwafya sana. I was on the copperbelt, my beloved province l was born n brought up. The roads are again taking shape. Those selling shock absorbers must brace for a hard time as sells will plummet.

  14. Under Capitalism of MMD no jobs were created. The new INDECO will not operate like the UNIP INDECO. the nation needs to create jobs and you can not leave it to the private sector. Statistics are showing that government is creating more jobs than the private sector. This is because the private sector wants to maximise profits. Thus, it is imprtant for the government to have business in business especially where the private sector is failing. INDECO will be used as a kick start to job creation. Wait and see the results will be positive. Now we have more educated people than yester years and we have nations to learn from (China, Singapore etc) who have developed without a full capitalist approach. Capitalism has failed check to what happenned during the Financial Crisis.

  15. @Njalamimba, all these guys countering the brilliant idea are not offering any alternatives and some of them are running private businesses that have failed to create employment . What buffles me is that they are crying foul about unemployment at the same time rebuffing viable proposals to end it without offering alternatives. Politics l guess.

  16. Hon. Mulupi with due respect I normally agree with your opinion but on this score you have failed. There is no single opposition leader who has ever told Zambians on how to create decent job except criticising PF. Hon. In your wisdom its only private entities which can create employment not government not too long ago KCM almost sent 1500 people on street, most of private companies end up out sourcing labour off shore and leave Zambians unemployed. There main interest is to maximise profits at whose expense? The idea of Indeco is brilliant what is needed is a proper legal frame work and management. Today millers are arm twisting the government because government does not have powers to control these prices. China’s industry is over 90% government and its one of the fast growing economy

  17. Is rda a profit making entity. It gets funding from govt and donors s i doubt if it operate as a company. Its an agencein this case then wat should be done are national construction companies to compete with others. All in all indeco can work without political interferences.

    We can have indeco as the main coordinator for all national companies and putting pressure on its management to create profits compete internationally and in the end provide employment. These companies should be taking profits to govt not in unip era where it was opposite. And nocompany shud subsidise the other. Govt can be a share holder while zedians and others can also hold some shares.

    And appoint proffessionals who should work independently.

  18. There is need for research papers on this topic. Unza, cbu, zacci, economists etc do a quick brainstorming dont sit in offices. Think and help the president its a vision which can come true. In zambia we just argue before thinking. Proffessionals think and help put food, decent accomodation to people in mazyopa, kalingalinga, kanyama etc

    We cant let people leaving in those slums and yet you call yourself educated. What is the education for. Think of visions, maginalise them and make them workable.

  19. Last point no rushing think through it lets have long term plans. We can think through it say for10 years, 15 and 20. With serious reviews

    • I totally agree with you. Re-introduction of Indeco should not be rushed or else it will fail. Serious economic thinkers should be roped in to do the proper ananlysis and planning. This will help to avoid the failures of the past. The only thing that the companies under Indeco did well was to have stiff competition in sponsoring KK’s birthday celebrations year in and year out. We do not want to see that nonsense in the 21st century.

  20. So we should start with food production and maybe be construction to compete and not to be fed with others. These companies shud also be free to operate internationally.

    Food: sugar ,cooking oil , melie meal , rice production small industries one per province to compete with the private sector.

    Construction: building construction company, road construction company etc
    Cement production companies we have plent of lime in lusaka and ndola, luanshya

    Manufacturing: sido. Oooops sounds UNIP anyway.

    We keep on working hard and hard till we succeed. We need productive youths at 18_20years old drinking beer in the morning.

    As long as the govt only owns larger shares and no political interference i think we can get their.

  21. Government has every right to get involved in business BUT has no business running them. Increase our shares in mining firms by economically investing in these projects so that we directly benefit from increase copper prices and not only through increasing taxes & introducing funny SI’s that impede on productivity and drive up costs. Let all other parastatals be managed professionally and profitably. Increasing the political influence just because you promised people jobs will just sink the companies. You do not start by employing more manpower before you are profitable but it works the other way round, more profit and growth leads to better pay and more job opportunities. The President, especially ours, should be the last man chairing any business group as we have seen the level of his…

  22. There is no alright private led in industrial sectors There is always room for Gov Flexing pure market economy with private led is not enough That is why you have major Banks Telcom Energy and Social ultilities like pension schemes controlled by state to ensure social stability and economic security in some cases with minority private stake or vise versa as it suits If you are and investments destination without global trotting asking for subscriptions or investments when you should be looked for improve yourself by showing initiative then attract.

    Common Zambian Businesses sectorial Participation:

    restaurants, Beer Brewing and milling, trading clothes and hardware,Buses,small financials

    Wind up by…

  23. listening to the arguments above from milupi and former indeco bosses, i declare the idea is indeed the best. mr sata is always 50 steps ahead of under5s.

  24. people please ask yourselves about this so called intellectuals like Milupi and his rich guys where the education and man has come from.Milupi and his friends where given the education by this same system they now condemn and he and his friends are now the major share holders in companies like CEC and others and have amassed riches because of KK s system.
    He should not forget that we know how he behaved when he was in ZCCM in Kabwe and how he faired a poor driver for just criticizing him.He and people who benefited in terms of education and riches should be the least to condemn this move.
    Milupi should not be selfsh.Let him ask himself where the infrastructure he and his friends just bought at a song price in the vehicle calle CEC came from.
    Please don’t be selfish Mr Milupi.You cant…

    • Discuss the subject not the person. Dont harbour grudges, you will collapse. Mr. Milupi did NOT completely throw away the idea of introducing INDECO. Revisit the article. Some of you just read the headline and begin to comment. That is being dull.

  25. Indeco is a fantastic idea and is very welcome. All we need is to just spice it up, national development can never be achieved through foreign investment alone. A deliberate national policy on industrial development is required.

  26. Indeco is nothing more than a duplication of management functions and bureaucratization of decisions. So please shut up PF idoits.

  27. They is nothing wrong with a parastatal,so long as the shareholding is art for the majority held by the private sector.What has privatisation achieved for Zambia???Nothing apart from people like Milupi,Sidowe,Penza,Ben Mwila,Hakainde but to name a few reaping where they did not sow.Like Chinaman said these guys amassed those properties for a song at the expense of the masses.Ask Milupi to invest the billions of money needed to start an airline,he won’t because he is not worth his salt,people who have a have heart for their countries will scarifice the little money they have for the benefit of the nation,not these chaps who just yap,yap all day long.

  28. Finally there is someone brave enough to shout “the king is naked!”. Thank you Mr. Milupi for speaking out. I intently followed Chenda’s statement concerning INDECO; that the re-establishment of INDECO is in line with PF’s job creation policy. Job creation for cadres. So you see, enhancement of industrial performance is nowhere in the picture here. When everything is said and done, we shall remain with one million cadres at INDECO, whose remuneration will be borne by you and I. There are so many measures this govt can implement in order to commercialize the existing parastatals, and I would like to believe that parastatals like Zamtel are partially commercialized already. There is absolutely no need for a policy turnaround where bodies that were done away with should be re-established.

  29. The concept of INDECO per se is not without its merits. What is needed is proper account of what went wrong in the Second Republic. It seems that government introduced distortions in the normal functioning of micro and macro fundamentals. For instance, misplacement of manpower was recorded. Government also used INDECO for self-agrandissemt and pursuing political projects. If INDECO can be small and lean with a focus on selected national projects, such as Iron and Steel, Railway lines, Airlines, Electric Power, Petroleum Refinery, National Airports, and similar projects, then that could make sense. Above all government must accept that the role of government is facilitating development. Monopolies and sector domination must be illegal.

  30. Government’s role is to provide its citizens with security,liberty and opportunity. INDCCO is the opportunity for the 80 % unemployed in Zambia which the private sector has failed to provide for the past 20 years. You are opposing this idea because you have something to do.Can’t u see the logic! The trickle down economics has failed in the western countries. In the US 20 % of the population own 80 of the wealth and the rest?U know the answer.

  31. The idea is fine. The problem is there is no legal basis to ensure efficient running of the firm. The executive part of government is too powerful and shall keep meddling in the running of the company, the very reason that it failed in the first instance, such that it will not be competitive in this modern open world. Moreover, South Africa and China will fight to the core for their businesses and investments to remain at the centre of Zambia’s business cycle, an aspect that was not their during the KK era. My proposal is we first sort out the legal/constitution issues first, and then go into bringing back the INDECO’s or ZIMCO’s of the previous world.

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading