FINANCE Minister Alexander Chikwanda has said only parastatals that are facing operational difficulties will be incorporated under the newly established Industrial Development Corporation (IDC).
Mr Chikwanda also appealed for calm over the establishment of the IDC and that President Michael Sata should be given time to appoint board members to operationalise the corporation.
“Companies that are under the Act of Parliament and those that were doing fine will not be incorporated under the IDC. Once the board is appointed and everything is in place, the public will be enlightened on how the Corporation will operate,” Mr Chikwanda said.
The IDC aims to be a tool for modernization and diversification of the economy in order to create jobs, wealth and prosperity for the Zambian people.
Mr Chikwanda said in an interview in Lusaka that parastatals that were incorporated in the Act of parliament and that those that were performing well would not be managed by the IDC.
Lastweek President Sata announced the incorporation of the IDC following the allocation of K20 million for the implementation process.
The IDC which had been incorporated under the Companies Act was 100 a per cent Government-owned entity, which would be the holding company of all State-owned enterprises that were incorporated under the Companies Act or the Banking and Financial Services Act.
Mr Sata also directed the establishment of a Sovereign Fund in which 75 per cent of dividends from the IDC and its subsidiaries would be deposited.
The President said some of the balances of the Privatisation Revenue Account which were substantial, would provide the initial capital stock of the Sovereign Fund.
He said the Sovereign Fund would be an inescapable duty and obligation of a responsible nation.
“I feel that the negative culture of a hand to mouth existence is injurious and inimical to the long term interests of our nation. It’s my strong belief that there is need to safeguard and secure the interests of our future generations.”
“The Sovereign Fund constitutes our positive legacy to posterity. With this among other measures, I can assure you that our country is headed for unprecedented economic prosperity,” he said.
He said K10 million was already paid up using funds from the Privatization Revenue Account as sanctioned by Section 39 Subsection (2) (J) of the Privatization Act, Cap 386 of the Laws of Zambia.