9.5 C
Alba Iulia
Tuesday, March 2, 2021

Only struggling parastatals will be incorporated under the new INDECO-Chikwanda

Headlines Only struggling parastatals will be incorporated under the new INDECO-Chikwanda

Finance Minister Alexander Chikwnda
Finance Minister Alexander Chikwnda

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.

48 COMMENTS

  1. What is this , UBZ , Super Loaf , Zambia Railways , Rover Zambia , ROP , Zambia Airways etc will be back ……. for starters these companies went down becoz they run on govt subsidies ,how they will survive this time around will be interesting to see.

    • Ba Chikwanda , you can put drums of lipstick on a pig , its remains a pig with more lipstick. If the so called struggling parastatals controlled by government are not doing well , what will change under INDECO which will also be controlled by government.

    • Our economy is barely surviving and you think you can manage to sustain companies? start by sorting out the problem at the bottom, its like trying to build a house from the rooftop then going downwards. How do you expect it to stand? Come on mudala even in primary they told us to lay a firm foundation.

    • True. The govt is surviving on nkongole. we dont undertsand how these non competitive companies will make money. Anyway, we have people in power that dont understand what globalisation and free market economy mean.

    • Is it not funny how Chikwanda and the PF are violating the rules of business which requires that when a business is struggling you trim the size of the workers and management to reduce operational costs? For them they think doing the opposite is what works. The whole PF idea of adding on other layers of management to run failing companies beggars belief.

      This is a clear example of ill conceived policy among many that shows that IDC is being brought back to provide a conduit through which jobs for Sata and his family forests will be guaranteed. With Sata the chairman of the organisation he will pay himself even more money. All these are self enrichment schemes aimed at ensuring that Sata and family gain more wealth to compete with HH.

      PF and Sata are fore sure CNPs.

    • Zambians we need to start mobilising to get rid of PF and Sata as soon as possible because if we leave it for too long, it will be difficult to reverse the damage Sata and his PF are doing to our economy and our freedoms.

      Very soon I have a feeling that Zambia will be turned into North Korea. The signs are becoming clearer each day that Sata wants to make sure that ruling Zambia should be a preserve of his and Kaunda’s family.

      We should try hard to stop this PF madness at all cost before the country goes to the dogs completely.

    • The more he talks about IDC the more he and the whole thing does not make sense… why not put this dinosaur in a museum …. i do not think he has a clue of what he his doing

    • Mr Chikwanda what do you term as a doing well company?
      One that has leaders who have misappropriated the funds and are now struggling?

      Are you referring to Government companies only?

      You appear to have a lot of money as Govt , if you do how about Nationalisation by buying the ‘struggling companies’ and make them do well to start with.

      This plot strikes me as an intent of nostalgia like many of the projects under your government. I have also heard you are not particularly happy and you have threatened to resign at several times but have been persuaded against?

      I am not sure your heart is in this, you are just a powermonger that has outlived your usefulness.

      I await your reply, ASAP

      Thanks

    • When ailing parastatal companies and ZCCM were making losses, finally it was government that had to be pumping money into ZCCM to cover the losses amounting to K1 million dollars a day in order to serve workers. IMF picked an argument with government and said why should the Zambia budget be financed by donors only to take the money to ZCCM . Solution: Privatise! why are we going back the same road?

  2. iam not being pesmistic,but i see this unip plan as a flop.how many parastatals and does chikanda hav in mind?so i only the know the folowing parastatals-zesco,pf znbc,zamtel,z.railways and all these curent ones are failing to compete with the private sector.

    • Interestingly, almost all the parastatals are monopolies and still sruggling. Take Zesco for a start, they have no competition. They raise their tariffs willy-nilly and the price Per Kilowatt Hour of energy is remarkably high. These and many more (ZRA, NHA, NAPSA etc) are cash cows for the government and will always have a party cadre at the helm so as to make it easy to syphone money. The laws are so prohibitive for a private entity to enter the energy market and so ZESCO enjoys the governments protection. If a competitor were to enter the energy sector, most electicity consumers would desert ZESCO in droves as the current rates and the service delivery sucks.

  3. Please rephrase that bwana Chikwanda.Surely how can only struggling firms be brought under INDECO which will be under control of an even more struggling and disorganized PF govt?

  4. Ba Chikwanda , you can put drums of lipstick on a pig , its remains a pig with more lipstick. If the so called struggling parastatals controlled by government are not doing well , what will change under INDECO which will also be controlled by government.

  5. For the sake of accountability and transparency,Mr.Chikwanda list the government companies which will benefit so that we know them now and start screening them.
    Otherwise,this will be a failure as only cadres without qualifications will be employed.
    Taking us 40 years behind va Minister.
    Wasted votes.

  6. Why would you waste money on companies that are not making money? This simply means government will be using taxpayers or donor money to sustain loss making companies with their bloated overheads.

  7. This is the worst hogwash I have ever witnessed in the 50 years of this country in this direction! Isn’t this the same set of personalities who supported the liquidation of “struggling” companies at the behest of their masters then? What has changed??? What will improve? Some of them are even in possession of assets from the companies they supported into liquidation, most under false and trumped up charges and allegations! I will watch as the proverbial snake comes to bite their sorry a.r.s.e.s!

  8. So IDC is for failing parastatals! Why don’t you just cut your loses and either privatise or liquidate them? Taxpayers’ monies should always be used for provision of basic services such as health, education, water, roads etc.

  9. The reason is simple why you are not including companies doing fine, it is all to do with you inability to manage them. Yes, another reason why you cannot explain how this will work is simple, you know all to well that you do not have a proper business plan in place, hence the road map is unknown. You are working on pure chance that it may succeed. What a management style which deserves to be a study case for a Masters students on how to fail a national economy.

  10. Imwe mwe ba fyashi ba chikwanda channel that money to build a hi-tech hospital. You look like you will soon need medical treatment that will save your life. Let the failing industries fail. They are failing for a reason which pumping in money will not solve. Just let them sink or swim imwe shikulu!

  11. I like this IDC idea actually. Clearly the private sector in Zambia has failed to create jobs. Why not have a blend of private sector and government pulling in the same direction of job creation? Of course we know the history of parastatals in Zambia, most of them failed and privated or closed. But people, the environment has changed in the world. Those companies failed 30 years ago because we were living in a polarized world – propagated by the Cold War between America and USSR. Today we live in a more open world. Imagine if we start manufacturing batteries for Nokia, Blackberry and iPhone!!?

    My prayer is Mr. Sata appoints a board of selfless Zambians that can see this project successful. Start with supporting agricultural and copper processing industries!

    • Iwe Your reasoning is so warped. Stop misleading yourself and innocent Zambians. A simple question for you is why are some of the existing parastatals, if not all of them, not performing well if you are saying the economic environment suits their growth and sustainability than before? Chikwanda and his fellow scatterbrains should not take us back to the UNIP era of putting tax payers’ money in bottomless pits. These so called parastatals should run as business entities like any other in the private sector, devoid of political interference and siphoning of funds to finance unnecessary by-elections. If ZESCO, ZISC, ZAMTEL, etc are not profitable then concession them the ZANACO way. Save us the crap please.

    • @12. Why should a company worth its salt need govt help !!! They are performing badly for a reason … and I am a grade seven and I can analyze this ….

  12. Finding the right minds whose objectives are to see the realisation of fruitful operationalization , minimzing costs and maximazing benefits. Minds whose objective is to improve the living standards of Zambians and Zambia’s interest come before theirs is always difficult. However, I do believe the move itself is a good one is a but we need strong structure of leadership.

  13. My minister first find out why the so called struggling are in this state, is it luck of cash, or management ? The solution should be the PS and Ministry of commence to help with managemnt and the banks should give them low interest loans.If they can’t survive even these then sale them,they are not profitable.

  14. (A) You know, a wise and mature leader has the following qualities:
    1) Knows how to assemble a credible team to work with – a team that will offer meaningful and progressive advice.
    2) Listens to noble advice, interprets it and makes wise decisions that last.
    3) Plans his undertakings and carries out sensible actions.
    4) Knows how to subdue his feelings and channel them appropriately.

    (B) Some people say, the problem SATA has is that he is surrounded by wrong people – Oh!
    If you have such view, ask yourself the following questions:
    1) Who assembled the team for SATA, and where was he at the time – asleep?
    2) Does he listen to advice? If he does, what advice does he enjoy – wrong advice or right one? Why?
    3) With reference part (A) above, using your answers in questions (B) 1)…

  15. 3) With reference part (A) above, using your answers in questions (B) 1) and (B) 2) above to assess SATA; Is he a wise leader or not?
    4) Give reasons for your answer in (B) 3) and for your conclusion.

    After successfully completing the above exam you will receive a Diploma in Blogging from Online University – OU.

  16. From the minister’s submission it may appear that he is implying that there are some parastatals that are not struggling.
    Now if what he is saying is true that only struggling ones are targeted by New INDECO then what does he say about those that are not struggling? Did they use INDECO to manage their affairs, if at all INDECO is what gives solutions?
    Why doesn’t the minister ask why some parastatals are struggling and others not?
    If lack of indeco is what is causing some parastatals to struggle, then this animal is biased. Why does it spare some parastatals in its unruly behavior?
    The Minister must understand that the issue is about policy, management and the general admin processes, not a lack of an institution simply creating employement for some favored few at the expense of…

  17. The Minister must understand that the issue is about policy, management and the general admin processes, not a lack of an institution simply creating employement for some favored few at the expense of the rest of all Zedians.
    Let us not thing that if we can create enough institutions then the nation will develop, even when we have no policies, no plans, no direction but just trying things and receiving shocks at the outcomes then reversing and reversing.

  18. “our positive legacy to posterity…..”

    The only legacy posterity will get from this useless Government is a mountain of DEBT!

    Incompetent IDI0TS!

  19. Establishing Sovereign Fund whilst borrowing money on the open market to finance budget short-fall?
    What on Earth he is talking about?

    • Living in cloud cuckoo land. This man is obviously suffering from delusions!

      It is sad to see Zambias finances being controlled ( or rather TRYING to be controlled) by such IDI0TS. He is so senile it seems he does not even understand 142s point that he is contradicting HIMSELF!

      What is he talking about? He is talking RUBBISH! What incompetence from someone running the country!

    • This man is incompetent I wouldn’t even give him let him run a primary school tuck shop as he would bankrupt it and the shelves would be empty.

  20. There is nothing in this man’s statement but hot air….appalling indeed…no wonder they are dropping dead at the ages of 80 as these people should be on their farms enjoying their retirement the president included not working. These people are void of ideas and too stubborn for our century.

  21. Ok….. so let me get this straight….. soooooooo…… if we mix a number of toxic elements together, we should expect to get a pure clean element…….. this circus act is one that just keeps giving and giving…they cannot even pose for an intermission…….. awe shuwa…. panadol ilefwayikwa….

  22. The IDC is an idea that has not been assessed.

    Everyone supporting it is coming up with their own theories of what it is going to do.

    Luckily the idea has too many useful *****s to make noise as they blindly support this illogical decision.

    Typical CNP

  23. These guys are just back in office to collect their pension money which they never got previously. We have a big problem. Wait and see what the composition of the board will look like. More pensioners will be called back.

  24. Ba Chikwanda: You are a failed recycled finance minister. Just resign than to be forced to take this country 50 years back. You have no fresh ideas except those of UNIP. Let young people take over mwebantu. What a govt of clueless people.

  25. I position please unite and come and clean this mess by this PF that has no sight but governing our country on past events. They have no fresh ideas to develop our country except ideas to win the elections which so far they have lost. Michael Sata we are watching you.

Comments are closed.

- Advertisement -
Loading...

Latest News

Kamanga Focusing on 2021 AFCON Salvage Job

FAZ President Andrew Kamanga admits his priority in the first 30 days of his second term this month will...

More Articles In This Category

- Advertisement -