Agriculture and Co-operative Minister, Sarah Sayifwanda, has assured Nitrogen Chemicals of Zambia (NCZ) workers and retirees that government would release K58.3 billion in the next two weeks for recapitalization of the company.
Mrs. Sayifwanda disclosed this in Kafue today when she addressed scores of angry NCZ workers at the Kafue District Commissioner’s office during a meeting.
Three days ago, the workers gave the minister a three day ultimatum in which to address them and tell them the future of the company.
Mrs. Sayifwanda told the workers that the three days which she was given was not enough to source for the required funds, saying President Levy Mwanawasa and the Minister of Finance and National Planning, Ng’andu Magande, were busy with other issues of national interest.
Mrs. Sayifwanda, who was accompanied by her deputy minister, Daniel Kalenga, and Lusaka Police Commanding officer, Greenwell Nguni, pleaded with the workers to give her time to effectively deal with the issue.
She said government would not close NCZ because President Mwanawasa and the MMD government attached great importance to the plant.
Mrs. Sayifwanda commended the workers for their patience despite numerous problems they were going through.
She pointed out that she was not a liar and she will ensure that the company is recapitalized so it continues operations.
Speaking earlier, NCZ Nation Union of Commercial and Industrial Workers ( NUCIW) branch Chairman Robert Musanje expressed disappointment with the government for failing to deal with the issue of NCZ prudently.
Mr. Musanje urged the workers not give up but continue fighting so that their plight can be heard.
He appealed to government to sort out the problems of NCZ once and for all stating that government’s release of funds to the company in piece meal was not solving anything.
The meeting which was attended by hundreds of workers was characterized by heavy presence of police and paramilitary officers in riot gear and gas canisters to maintain order in the event of any riotous behavior by the workers.
The workers demanded that government pays them off their terminal benefits saying they are tired of going to the streets every time they are not funded for production and salaries.
They lamented that many of them have become destitutes and are no longer able to sponsor their children to school.
The workers expressed fears that National Housing Authority (NHA) will anytime start reposing houses from them as the company has failed to buy the houses on their behalf due to lack of funds.
ZANIS/BS/MKENDS
Recapitalization without restructuring of management is just pissing money to the wind. Fire this visionless management team and then recapitalize. There is no reason for a very strategic company like NCZ with virtually no competition to be broke. This just shows a failure in leadership on many fronts
bottomless pit…
Celtel raised $205 million from the stock exchange. NCZ would have raised the $53 m needed for capitalisation by listing on LUSE. ZAMTEL and ZESCO could do the same at no government or public cost. The only disadvantage is that the President would lose his power of patronage in appointing the Managing Directors.
That money shall be devoured by ‘contractors’, companies owned by politicians and civil servants pretending to be supplying goods and services to the NCZ.
NCZ needs about K170 billion for full recapitalisation and to pay off debts.GRZ doesn’t think..they were told its K170 billion and not K57 billion needed.That money will only go to paying debts…Where will the money for raw materials come from?Why do our ministers think like chickens?
#4. Like they have done for every company that has listed on the LUSE, eh?
which investors will buy ncz shares under the same management! NCZ needs business minded people for it to work!! Zambeef is the only Zambian company that can do it – otherwise give it to the boers
Throwing money at NCZ wont solve the problem. A few demos on Lusaka road did the trick and threw out all business sense from Cabinet worried about the next by election in kafue.True price of fertiliser is rising but producing it through dysfunctional NCZ will even make it more expensive than to import it and distribute it to a larger number of farmers. If GRZ wants to help NCZ let it go all the way. NOT kufikiza pakati like the munyaule song. Sara needs needs to set up a business/planning strategy team to evolve a survival plan for NCZ. Throwing piecemeal ZMK billions to calm angry/hungry workers families will not take the problem away
To start with I wonder why a state business enterprise has been thrust under the Agric ministry rather than Directorate of State enterprises at Ministry of Finance. Sara ought to aquire services of business strategists to evaluate the current financial/operating/investment state of NCZ. The should devise a survival plan that will ensure a +VE NPV. Crucial point: govt control must sieze by 1.Giving majority interests to a private entity or 2. where govt retains majority shares a private entity must be given the management contract. We as zambians (with a few exceptions) lack the cultural traits necessary to run business let alone state owned business.
As a person who understands business I would not have thrown money at NCZ at all. Inefficient managers, contractors etc are hiding behind the farmers needs for fretiliser to siphon money from GRZ which could otherwise be used to import larger quatities of fertiliser and cater for more farmers efficiently. But since it is GRZ’s preserve and they have decided to throw money at the problem. My advice is that GO ALL THE WAY. NOT KUFIKIZA PAKATI ATI BANTU BAKAMBEPO. MUNYAULE.