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Embassies Are Wrong to Congratulate the PF’s One-Party State Subsidy

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Open Letter to His Excellency Akio Egawa, Ambassador of Japan to Zambia, His Excellency Mark Storella, Ambassador of the United States to Zambia, and His Excellency James Thornton, High Commissioner of the United Kingdom to Zambia

Your Excellencies,

We respectfully address this open letter toward your distinguished offices with regard to recent commentary published in the Zambian media on the recent removal of fuel and maize subsidies by the Patriotic Front (PF) government.

On May 21, His Excellency Ambassador Storella was quoted as saying “Right now your government is making hard decisions on agriculture and government had to make these hard decisions because you cannot keep on subsiding maize forever because the country can go bankrupt and, ultimately, farmers too.”[1]

On May 23, the Times of Zambia quoted His Excellency Ambassador Egawa, commenting “Government has made a tough decision which may cause pain on the part of the public but will contribute to the welfare of the people in the long term.”[2]

His Excellency High Commissioner Thorton was similarly quoted on June 4 as saying “I commend the Government of Zambia for tackling these subsidies. (…) It is better that money currently used for subsidies is used for more sustainable measures targeted to help the really poor and to promote development in Zambia.”[3]

[pullquote]It is also a mistake to assume that funds saved from the cancellation of these subsidies will be applied to development.[/pullquote]

On behalf of numerous Zambian citizens, including members of opposition parties and civil society organisations, the Coalition for the Defence of Democratic Rights (CDDR) wishes to register its disappointment with these statements, which may be based on mistaken assumptions regarding the motivations of the PF government. The CDDR requests that the diplomatic community take a stronger stance toward the deteriorating environment for civil and human rights in Zambia, rather than solely focusing on economic policy.

It is not our intention to enter into a debate over the short- and long-term costs of maintaining subsidies, and generally, we acknowledge the common sense notion that principles of unfettered market competition tend to produce the ideal efficiencies that eventually deliver the lowest prices to the poor.

However, it is a grave mistake to assume that the PF has undertaken this policy out of a desire to implement reforms or achieve any sort of efficiency. It is also a mistake to assume that funds saved from the cancellation of these subsidies will be applied to development.
The truth of the matter is that the fuel and maize subsidies have not actually been removed, but rather they have been transformed by the PF into the One-Party State Subsidy.

Far from running an austerity programme of reform, the PF government has spent prolifically since coming into power in 2011. For the 65% of Zambia’s 13 million citizens who live on less than $1.25 a day, it is not comprehensible how they should be chosen to carry the burden while at the same time the president can give himself and his cabinet salary increases of 100%,[4] initiate a re-nationalization and expropriation spree of numerous private companies,[5] while at the same time engineering an unprecedented 10 parliamentary by-elections, with more to come.

The sudden removal of fuel and maize subsidies by the PF is not a question of economics. It is a question of how the ruling party intends to fund its destruction of Zambian democracy.

It is unreasonable for foreign governments to ‘congratulate’ the PF on fiscal policy at a moment in which the president’s cabinet is bloated to more than 70 members. There extraordinary costs of keeping so many deputy ministers, many of whom are said to not even bother reporting to office and function more as ‘ghost bureaucrats.’ Each of these deputy ministers is given a brand new car, support staff, travel allowances, fuel allowance, a house or accommodation allowance and other financial disbursements, costing Zambian taxpayers millions of dollars.

The main reason why the PF has created the largest cabinet in the history of the Third Republic is because the awarding of these positions represents the key instrument of bribery to engineer the defection of opposition Members of Parliament from the Movement for Multiparty Democracy (MMD) and the United Party for National Development (UPND) to the PF, thus forcing the vacation of the seat and triggering a costly by-election which is usually snapped up by the ruling party.

The PF’s by-elections strategy, which is aimed at taking over a rubber-stamp majority in the National Assembly in order to pass a new constitution to re-implement the one-party state, is enormously expensive and has drained state coffers to the point that the leadership has ‘improvised’ – not planned – the cancellation of fuel and maize subsidies.

According to the Electoral Commission of Zambia (ECZ), the cost of holding these by-elections ranges anywhere from a minimum of 5 billion kwacha to a staggering 11 billion kwacha. The upcoming by-election in Feira will cost 7.7 billion kwacha, while on July 25 there will be another four by-elections in Solwezi East, Kafulafuta, Chipata Central and Mkushi North.[6]

The PF government is facing budget shortfalls due in part to the ad hoc creation of unplanned and unbudgeted new districts and ministries for political expediency (and ‘bribery’ of opposition MPs) which is draining the treasury.

The Ambassadors comment that it was ‘brave’ or ‘difficult’ for the PF to remove the subsidies. However that is not the case.
We ask that you consider the reasons behind the extreme haste and total lack of preparation or communication regarding the cancellation of subsidies, especially with regard to the social consequences. When the fuel subsidy was removed in April, prices shot up 21 per cent, while workers commuting to Lusaka saw at least a 1 kwacha increase in minibus fares – posing a sizable cut into the weekly salary for many poor people. As for mealie-meal prices, which have more than doubled since the election of the PF,[7] real issues of starvation and food riots may soon become a reality in many parts of the nation, with no provisions made by the government to protect the most vulnerable.

[pullquote]The truth of the matter is that the fuel and maize subsidies have not actually been removed, but rather they have been transformed by the PF into the One-Party State Subsidy.[/pullquote]

Were it possible for the United States to suddenly curtail the staggering $84.4 billion they have spent on corn subsidies between 1995 and 2012,[8] it would most likely be done in a carefully staged and planned manner, as to avoid a shock to the producers. If the United Kingdom were to cancel just one of the £3.5 billion subsidy programmes that it pays out to wealthy landowners, it surely would not disappear overnight without a plan.[9] Japan’s economic miracle of the past century is widely credited to its statist policies of subsidies for steel, machinery, electronics, chemicals, autos, shipbuilding, and aircraft industries.[10]

But in Zambia, where the subsidy removal has an immediate impact on citizens, not just producers, there has been no plan, preparation, or explanation, which has alarmed not just civil society organisations, but also industry.

According to a detailed statement by the Zambia National Farmers’ Union (ZNFU), while although they do not support subsidies on the consumption side, the way in which the PF has removed these programmes without any clear plan may lead to deeper problems:
Hh2>“It is very easy to remove subsidies because anyone can do it but what is simultaneously and urgently required is to put in place bridging measures to avert a food security calamity and more importantly to find solutions to the challenges facing our poor small scale farmers in the rural areas in order to keep them alive. An in-depth analysis and full appreciation of what it takes to be a farmer in a rural area where basic social amenities and services are nearly absent and even sophisticated business models flop should have been done, and in full consultation and dialogue with those that such a decision was going to affect.”

[11]

Finally and most importantly, the CDDR wishes to make Your Excellencies aware that many Zambian citizens are deeply disappointed with the diplomatic community’s failure to respond to a recent violent attack on a church in Matero by an alleged PF-organised militia. Civil society organisations such as the Foundation for Democratic Process (FODEP) and the Young African Leaders Initiative (YALI), as well as opposition party members had only gathered in this church because the PF denied their constitutional rights to organize an outdoor assembly under the Public Order Act. Then further to be violently attacked by a PF militia simply for debating the issue of subsidy removal further represents a flagrant violation of basic human rights that this government has become known for.

To be silent in the face of these violent incidences, but then only to come forward and praise the government for recklessly endangering the lives of Zambia’s poorest citizens in order to fund their takeover of every branch of government, is not helpful for the future of democracy in Zambia.
To be silent in the face of these violent incidences, but then only to come forward and praise the government for recklessly endangering the lives of Zambia’s poorest citizens in order to fund their takeover of every branch of government, is not helpful for the future of democracy in Zambia.
We understand that the principle of subsidy removal may be positive, but the reality is that this move is not going to produce any decrease in government spending in Zambia or improve balance of payments, but rather only re-direct this portion of the budget toward highly questionable political objectives to benefit the private interests of a very small coterie of ruling elites who are already in control of the main newspaper and one of the country’s largest banks. The sudden appearance of trained militias is but one product of the one-party state subsidy.

While recognizing the importance of strong bilateral relationships between Zambia and Japan, U.S., and U.K., and underscoring our continued commitment to cooperation and communication with your offices, we hereby respectfully request that the diplomatic community remain vigilant to the abuses of power by the current Zambian leadership and cognizant of the fragile condition of democratic freedoms in Zambia.

Yours faithfully,

Robert R. Amsterdam
International Counsel to the Coalition for the Defence of Democratic Rights (CDDR)

45 COMMENTS

  1. It is good that subsidies are removed because with this removal there will be a lot of hunger in Zambia. And this is were our USAID comes in. We will definitely have a market for our Corn farmers in the mid-west. To be honest we were really disgusted at seeing little Zambia exporting Corn to countries in East Africa and Southern Africa thereby denying American farmers the God give Right to export Corn to these countries. Therefore it is only natural that our Ambassador in Zambia Mr Storella had to come out publicly to support the PF policy. The UK High Commissioner had to follow suit because the British understand our policy goals and what our real interests are!

    • USAID would like to see Africa change to using GMO maize.They have ulterior motives.(google African Perspectives on Genetically Modified food -Assessing the debate in Zambia,Kenya and South Africa) Why should Africa always be the ones looking elsewhere for help.hundreds of years ago we were self sufficient and a wealthy continent.We depended on no-one.Because of that colonialists scrambled to Africa,tricked our trusting chiefs,sold us into slavery and made us believe we were inferior. Our way of life was described as barbaric and primitive.Our herbal medicines discarded,our family structures dismantled.Now look at Africa today we have been reduced to beggars.Always looking for hand outs.It even took Bill Gates to come and give you mosquito nets why couldn’t we do that ourselves.

    • As a naturalist and an animal lover, with subsidies removed,,,, am very worried of the extinction of monkeys in bembaland,,,
      Other animals like rats, its okay because they can have more than one baby at any one given time,,,,

      I thinks hunting of monkeys sholud be `subsidies` by government

  2. this is the organization that was formed by Amsterdam, whatever his name is……i dont expect to hear anything good from this organization. to them anything done by the PF is wrong supported by HH and nervous mumba. well, the subsidies are gone now suck it up.

    • Monsterdam, stop showing your incompetence by hiding behind supercilious articles that are ineffectual.

      We want you here to come and defend your thieving, corrupt , looter…Rupiah Banda. Come and show your legal prowess in the courts of law if you are the so-called “international lawyer” you claim to be.

      Since govt extended its invitation for you to come, you have grown cold feet, knowing that you will fail the exams to allow you practice law in Zambia

  3. The sooner this thing called Amsterdam realises that he is not a factor in Zambia the better for him. It will save him alot of time and stress.

    • You’re the one who is stressed up otherwise you wouldn’t be venting your anger at someone you consider to be not a factor in Zambia. Sometimes I feel embarrassed at the shallowness of Zambians like you! Use that brain man!

  4. Amsterdam Shut it !! you have no authority where you have no responsibility.You do not pay taxes in Zambia no do you give aid to Zambia so you have no right to comment on matters that do not concern you -if anything you are vermin-sucking off looted monies -proceeds of crime and would qualify as an accomplice and an accessory in helpling RB escape his crimes

    • The PF has already looted more than what MMD looted during their reign.By the time they are through,Zambia will be worse than Somalia

    • If anything this international thief should be talking about KCM, sugar company who are stealing millions of dollars from Zambia. This is the problem when you gove an ear to such stupid people. No wonder Sata says no to the hague, it is because of such people like this nonsestardam

  5. USAID would like to see Africa change to using GMO maize.They have ulterior motives.(google African Perspectives on Genetically Modified food -Assessing the debate in Zambia,Kenya and South Africa) Why should Africa always be the ones looking elsewhere for help.hundreds of years ago we were self sufficient and a wealthy continent.We depended on no-one.Because of that colonialists scrambled to Africa,tricked our trusting chiefs,sold us into slavery and made us believe we were inferior. Our way of life was described as barbaric and primitive.Our herbal medicines discarded,our family structures dismantled.Now look at Africa today we have been reduced to beggars.Always looking for hand outs.It even took Bill Gates to come and give you mosquito nets why couldn’t we do that ourselves.

  6. To Robert R. Amsterdam

    As much as i Naganja, would respect your opinions i would challenge to say your stance taken to represent I as a citizen surrounding the subsidy policy and by-elections issues as wrong. Your analysis is too booky and lacks merit. Your negativity is too imperative even before the positives have been gained. Your views are misplaced. Your needed to understand the real start of Zambia’s stagnation even as we always boast of 40 years independence, and the constitution of Zambia in real terms and not vague term. Your calibre to comment on Zambia’s expenses on by -elections is misplaced. its reason if you do stand for the Coalition for the Defence of Democratic Rights, you needed to come on the board and assist Zambia have a model constitution. On subsidy topic,…

  7. Amsterdam is upset because his plan to link up with RB in RSA has fallen through! Unfortunately articles like this do not help his clients cause.

  8. The teachers and professors of the authors of this open letter must feel very ashamed that their students cannot be clear what it is they are writing about.

    Is it subsidy removal, a perceived one party state or perceived human rights abuses?

  9. This silly man of a conman/Lawyer, the defender of corruption sickens me each time he posts his rubish on the net. Can LT and other online publications shun this shameless dude and let him fratenise with the galus at watchgalu.
    I am surely tired of this chap.

    • Then why do you click on his statements? Are you sure you are not awol from some institution on the Great East Road? It is important that you continue taking your medicine, man! Your lack of logic makes me sick!

  10. It is funny how a person like Amsterdam would pretend he is championing democracy in Zambia when we all know that he is merely representing Rupiah Banda and unfortunately Hakainde. If Amsterdam truly cares about human rights, what has he done about the first nations in his own country Canada? The first nations (Red Indians/ Innuits) like in conditions in some cases worse than third world countries…

    • “when we all know….?” Exactly who are we? Learn to speak for yourself! Common PF cadres, lets have some logic! You are so frighteningly daft!

    • MAYBE THIS AMSTERDAM HAD ALREADY PAID SOME PEOPLE TO PURCHASE SOME GOVT SCHOOLS IN ZAMBIA SINCE HIS CLIENT RUPIAH WANTED POOR PEOPLE IN ZAMBIA TO HAVE NO SCHOOLS TO GO TO BY SELLING GOVT SCHOOLS IN ZAMBIA.

      FORGET ABOUT THIS SEPO OF A THING. EAR WAX HAS COLLECTED SO MUCH THAT IT THINKS IT HAS SO MUCH BRAINS THAT SOME OF IT IS SPILLING FROM THE EARS.

  11. On Election Day, Zambian voters will choose between a coalition of governments of Japan, UK and USA versus CDDR. That is the real issue here. First, it is wrong to assume that PF will not utilize revenue correctly. Why mistrust PF? After all PF does not have a record of financial mismanagement. Then which party was elected by voters? If you give PF a chance to govern the country, then you will notice big improvements at infrastructure level as well service delivery. Second, by elections are democratic and enshrined in the Constitution. If the need for Constitution amendment is very urgent, then ask legislators to do that. It will not do to bring crisis and alarm in the democratic debate. Third, in Zambia the One Party State is long gone. Check Angola, Botswana, Mozambique, Namibia …

    • No my dear on election day, voters will get to choose the next President of Zambia from amongst the list of Zambians who will contest the elections. There will be no provisions for CDDR, Japan, UK, Britain or US on the Zambian ballot papers. Those countries get to elect their leaders amongst their citizens who qualify!
      Your PF has had a Budget overrun. That my dear is what is called financial mismanagement. You’ve been spending money like drunks. Your President is a compulsive spender. He is also intellectually challenged that he cannot do simple additions and subtractions. Zambia is cooked get ready for Storellas yellow Maize from Iowa. He’s got you where he wants you….daft and accepting of whatever nonsense he feeds you. A hungry country is easy to control !

  12. WISE MEN (Akio Egawa, Mark Storella, James Thornton) SPEAK BECAUSE THEY HAVE SOMETHING TO SAY; FOOLS ( Robert R. Amsterdam) SPEAK BECAUSE THEY HAVE TOO SAY SOMETHING.

  13. We have many subsidies in other areas indeed. But subsidizing Oil to support the mines who make profits and take away those profits is also being daft. Let them operate at real costs of the oils. Oil and its products comes from far away. Those owning mines must know that they cannot have it all, subsidised oils by govt and then make profits which they stash in banks abroad and give govt smal amounts of taxes. Man, heads are wired up to reap.

  14. WISE MEN SPEAK BECAUSE THEY HAVE SOMETHING TO SAY; FOOLS BECAUSE THEY WANT TO SAY SOMETHING – Plato

    You can see that the ambassador and high commissioners being wise men saw sense in what PF is doing and yet this FOOL Robert R. Amsterdam being a fool he is, just want to be seen to be saying something. I didn’t even bother to read his trash

  15. What is the role of Robert Amsterdam in the Zambian political, economic, and diplomatic landscape in Zambia??? What are his Terms of Reference for his clients, to comment on any economic and political decisions taken by the Government as a Chief Opposition mouth-piece????

    • And where is RB in all this? if RB choses to keep quiet, then i will conclude that he is the one speaking. Let him speak out for or against. Mambala.

  16. Europe is currently subsidizing its banks and yet ordering us to stop subsidizing our maize production???Everywhere in the western world countries subsidize one aspect or another of their economy for strategic national interest. If we remove subsidies from maize production, we will end up buying maize from those countries that keep their subsidies on agriculture production. It has happened in the past. Remember when we imported yellow maize? I dare also remind you of how KK twice tried to remove the same subsidies and riots made him U-turn! The late Levy Mwanawasa tried to revamp our agriculture and now we want to destroy it? WHEN WILL WE START LEARNING FROM PAST MISTAKES AND MOVE FORWARD , MWEBANTU?
    DISAPPOINTED.

    • man , subsidies on fertilizer have not been removed. They are there. What has been done is reducing them from 75 % to 50 %. A 50kg bag of fertilizer costs between 200 to 250 Kwacha, and the farmers were contributing only 50 Kwacha, but this time they will be contributing 100 kwacha now.

      The PF should explain this , why are they saying they have removed subsidies on fertilizer? I think PF also should be serious in explaining what is happening .

    • DO YOU KNOW WHERE THOSE COUNTRIES HAVE COME FROM TO BE WHERE THEY ARE TODAY? TO BE ABLE TO DONATE SO MUCH TO OTHER COUNTRIES?
      IT DOE NOT HAPPEN IN ONE DAY. IT TAKES A LOT OF DISCIPLINE AND SACRIFICE TO ATTAIN THOSE LEVELS. IF YOU ARE GOING TO BE SO WASTEFUL THEN FORGET EVEN BEING ABLE TO DONATE A BLANKET TO YOUR NEEDY RELATIVE.
      HAD IT BEEN DONE IN KK TIME AND CHANNELED THE PROCEEDS TO GOOD USE WE WOULD HAVE BEEN BETTER OFF THAN WE ARE NOW.
      TIGHTEN YOUR BELT, IT’S HAPPENING THIS TIME AROUND AND MY LITTLE CHILDREN WILL APPRECIATE THIS WHEN THEY REACH MY AGE.

  17. This is rubbish of armstadam…..I can guess the ambassadors have flushed this letter in the toilets. Very useless dull man.
    Next news please.

    Peace and Prosperity to Mother Zambia.

  18. This is very rich coming from Amsterdam. Why don’t you campaign for the rights of those Indians living on reserves in your own Country? Stop meddling in our affairs!

  19. LT Mulesala ifya kucita publicise. this is really rubish. do u want thm to critise where they know that its not necessary. can u examine urselves before u loose ur integrity.

  20. Someone is about to choke on his bile! When did subsidies became a type of government? This ignorant wanker knows nothing about economics and governance, the examples on USA and Japan subsidies are clearly production subsidies and not consumption!.
    The trial for RB should be expedited so that this mercenary know that we mean business on plunders.

  21. IT’S VERY FUNNY HOW SOME PEOPLE SPEND THEIR ENERGIES ON UNFOUNDED THINGS LIKE INSINUATING ZAMBIA GONE BACK TO ONE PARTY STATE.
    WHAT THE WRITER OF THIS ARTICLE IGNORES IS THAT PEOPLE OUT THERE HAVE BRAINS AND A CONSCIENCE TO PERCEIVE THINGS/ISSUES AS THEY ARE.
    WE ZAMBIANS HAVE BEEN COMPLAINING ABOUT LACK OF MEDICINES IN HOSPITALS,BAD ROADS,POOR INFRASTRUCTURE,LACK OF SCHOOLS AND BURSARIES ETC. NOW,HOW DOES A SANE AND RIGHT THINKING PERSON EXPECT ALL THESE TO BE ADDRESSED IF AS ZAMBIANS WE CANNOT DIE A LITTLE FOR THE FUTURE GENERATIONS? IT SHOWS THIS WRITER ONLY KNOWS HOW TO WRITE BUT IS UNABLE TO THINK.
    AM A ZAMBIAN IN ZAMBIA AND PROUD TO CONTRIBUTE TO THE GOOD OF THIS NATION.

  22. Only one message for this shyster lawyer Amsterdam: Just wait for your paymaster RB. He is on his way to come and settle his dues to you for being such a good attack doggie. You can write all open letters you want in this world. Rupiya and his children will never ever again rule Zambia. By the way can you share the responses you have received so far to your letters to all those international organizations about human rights abuse in Zambia? Start with the human rights abuse in your zenophobic country.

  23. RB yo are selling our country to yo fellow croocks.2 u HH and Mumba u will end up like Morgan in Zimbabwe. Amsterdam whatever u are ,u are a demon idi ot.Stop middling into our affairs.Even what u have written is shallow,a fire without heat.

  24. I may agree with all the sentiments above, BUT WHAT I DEEPLY DISAGREE WITH is the person presenting the same. As Zedians we recognise this everyday & note how the three govts named apply SUBSIDIES to Agriculture etc etc. Measures such as “QUANTITATIVE EASYING” are adopted But when the same action, known in layman’s terms, as “PRINTING MONEY”, is SO FROWNED UPON!!

  25. Now i understand why immigration has denied RB to travel. I am sure ‘the lawyer’ was waiting for him..

    To hell with you Amsterdam

  26. SO ARMSTERDAM HAS BECOME AN EXPERT IN COMMENTING ON ZAMBIA? MR HH WAS DELUDED WHEN HE THOUGHT THE INTERNATIONAL COMMUNITY DID NOT LIKE ZAMBIA. NOW HE HAS SEEN FOR HIMSELF THAT THE PRAISES, AND ACCOLADES ARE COMING FROM RENOWNED , DEVELOPED COUNTRIES AND INTERNATIONAL ORGANISATIONS. AND THIS ARMSTERDAM IS SO FRUSTRATED BECAUSE HIS PLANS TO FACILITATE RB’S ESCAPE ARE NOT YIELDING ANY FRUITS. AT LEAST SO FAR. YOU NEVER KNOW WHAT SUCH CRIMINALS ARE UP TO.

  27. this is a great moment before history to consider the two controversies on subsidies carefully for as such shall we be viewed in history. I just cant imagine the shame it would cause if we argue to the contrary and a few years from today the removal of subsidies proves worthwhile. on the other hand, if the removal of subsidies has sinister intentions i.e. creating the hypothetical one party state, then i suggest our minds take a turn for the better. Meanwhile, i hope that something fast can be done to cushion the inevitable inflation as it seems that the basic argument is on the increased cost of living. My Advice? Seek ye first the economic kingdom and all else will follow. Subsidy removal, like anything else that affects us should be tolerated with reservations…THE POOR.

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