By: Anthony Bwalya – UPND Member.
The information has emerged that the Patriotic Front (PF) government plan to leverage political arrogance to hijack the Bulk Power Supply Agreement in respect of the Copperbelt Energy Corporation (CEC) and throw it into the hands of vultures, most likely the Chinese, for the benefit of top government politicians.
With a combined infrastructure and asset value in excess of $500 million, corrupt PF politicians stand to pocket well over $50 million in bribes and kickbacks associated with any possible transfer of the energy monopoly from CEC to their preferred bidder. This is part of a long standing, calculated scheme by corrupt PF politicians to continue on their unrelenting and sworn path of peddling illegality for their own private benefit, and much at the expense of the wider economy.
This is why ZESCO has been dithering for close to a year to engage in constructive discussions with CEC for purposes of resolving the status of the BSA post March 2020 when it comes up for renewal. The truth is that this process is and has never been in the hands of ZESCO, but rather that it has been taken over by corrupt PF politicians wanting to illegally benefit from this multi million dollar agreement. This also begins to clarify the charge by the American Ambassador to Zambia Mr. Daniel Foote, who in his most recent statement, revealed that domestic politics have gotten in the way of constructive discourse involving a domestic energy reform plan drawn up with the assistance of energy experts from the United States of America. The truth is, all technical negotiations involving the energy sector are no longer handled by technocrats but by greedy PF politicians seeking a pay cheque from every single energy sector transaction.
This is the primary motivation of PF politicians to constructively disrupt the BSA in respect of CEC.
But people must realise that the culture of illegally disrupting and taking over of both public and private entities under the PF, and handing them to their friends, those of whom are willing to pay them multi million dollar kickbacks to say thank you for the dirty work, is not new.
They are at it (trying) at KCM, where a technical and business turnaround issue was turned into a highly charged political issue. So while corrupt PF politicians continue to syphon money out of KCM, jobs are being lost and household incomes placed in such needless peril. And once they are done with KCM, the economy would have lost hundreds of millions of dollars due to the reckless disruption of operations at KCM. The plan for the PF has always been to hand over as much mining control to the Chinese as possible. This is why the Chinese have taken up pole position in the possible takeover of KCM, and are presently leading the charge for the commencement of mining activities in the ecologically sensitive Lower Zambezi National Park.
It is also now in the public domain, that corrupt PF politicians, including the presidency, facilitated the casual seizure of the Mukula business from local companies by illegally taking over legally harvested Mukula logs by legitimate permit holders, and illegally sold it to their Chinese friends. This resulted in the economy losing over $500 million in revenue due to underdeclaration of exports, as well as bribes. And it is these same people who are lining up ZAFFICO for a “constructive” take over using markets as a conduit.
Today, while our local farmers are paying a premium for foreign fertilizers imported by friends of the PF, top government politicians are getting paid several millions of dollars for suffocating Nitrogen Chemicals of Zambia (NCZ); sacrificing several jobs and incomes for our local people.
These are criminals whose only intention is to benefit from the suffering of Zambians, and they couldn’t care less. It is visible from the amount of money the Patriotic Front (PF) injects into buying votes and disrupting our sense of collective purpose.
The PF are prepared to disrupt economic activity on the Copperbelt, jeopardizing jobs for our people; by politically interfering the BSA negotiations involving ZESCO and CEC, and instead senselessly allege that a listed entity is funding the activities of the UPND.
Nothing short of political stupidity.
And China, a country that has been a friend of the Zambian people for several decades, has now realised the duplicity of the PF government, and all signs are that China is now almost ready to pull the plug on the PF and heighten it’s financing due diligence; because the corruption of PF politicians is not only costing Zambians their economy, it is also costing China money.
Paid UPND sycophants and zealots and enemies of progress… No news here…
LT you risk being obsolete like Zambian Watchdog if you allow yourself to be used…
Lamentable failure written all over. Tried hard to hide it , then boom inflation up, tried hard to hard again boom Kwacha making steady progress to teenage growth, tried to hard boom Bank of Zambia reveals reserves only 1 month import cover, tried hard to hide again boom mealie meal prices not screaming. Kwasila imwe, mwayenda bye bye polio
If you are in a school and your assignment is looking at failed democracy and economic mismanagement in Africa. Just pick Zambia for your assignment, you will have full marks.
Hogwash without proof or documentation. LT up your game. UPND you’re killing small gay ‘god’ with bitterness.
5 years ago, i could have rubbished this article. but today am not gonna to do that. at this juncture, anything is possible.
Paid nincompoop!! Hogwash
To save yourselves from embarrassment in 2021 just try to dissolve yourselves as a party. Just file a petition of motion of winding up. At this level of incompetence were all economic indicators are down, just go in peace. A country failing to respond to emergency struggling to raise 44 million dollars to import power, 44 million dollars to a country should really be nothing. Reckless borrowing, even in homes, is that the way we borrow and live. Where is the leadership here? Some of us were not UPND but having a sane mind shows that’s the only way out for now.
This company has been hijacked by UPND cadres
Not even worth a comment because this article is total rubbish. Fwanya is right, put up articles with substance, LT.
I am afraid the author is either ignorant of the issue at hand (of the Bulk Supply Agreement) or deliberately trying to misinform the public.
At vestment of ZCCM in 1997 the then MMD government offered ridiculous concessions in order to quickly attract investors into critical sectors of the economy. CEC was grossly undervalued and ended up being acquired by the Zambia Energy Corporation as the majority share holders. The owners are Abel M’kandawire who was chairman of the Zambia Privatization Agency, Siyanga Malumo, Hanson Sindowe (former General Manager – Power Division of ZCCM) and Micheal Tarney.
Now the share holding stands thus; Standard Chartered Bank – Private equity Limited (34.64%), Lusaka Securities Exchange 4400 Zambians (28%), ZCCM-IH (24.11%), Zambia Energy Corporation (13…
…Zambians (28%), ZCCM-IH (24.11%), Zambia Energy Corporation (13.25%). Standard Chartered Bank comes into the fore following a loan that Zambia Energy Corporation got and could not redeem in time.
With the advent of CEC came the lopsided agreement signed between CEC and ZESCO with a tenure of 20 years.
CEC is a public company whose shares are listed on the Lusaka Stock Exchange therefore GRZ cannot take over the company! It has to be de-listed first. Government can only assume majority shareholding status if it acquires the 13.25% shares owned by the Zambia Energy Corporation through ZCCM-IH.
The situation has been rendered toxic by insinuations that ZESCO produces power and sells to CEC who in turn sell to the mines and rake in huge profits!
Sometimes an objective written article to see the Investments and positioning of IPPs(distribution and Transmission Companies) and Including those Generation Companies in the energy sector will be positive Contribution and may not be a case of politics but corporate board and risk management and foresight to see for long-term and ensure security of Supply You may invest USD 5,6 Billion in TT but with no security of supply on the Generation side in the Zambian liberalised energy sector, you become a very weak company and any market developments in the sector either with a fall in prices, technologies and methods of delivering power to those customers then you become exposed The Good…
The Good thing is for you to use your asset base in USD 5.7 Billion and Invest in potential side of generations in Zambia and be receptive of your exposure accept Zesco and work in partnership Suspicion will not help because Zesco has technically taken over CEC and may not need those Invested plant to deliver power to the copper belt according to the way they have developed their system Actually Its much better now in terms of security of supply for the mines and copper belt than before with the new Zesco TT back borne developed to deliver the new Kafue Gorge lower we Saw now at 90% completion on ZNBC yesterday with master peaking as he looks at the much needed assets for…
“”rather” with master speaking as he looked at the much needed assets for security of supply
WE saw the British minister rushing to state house and pledging to work with Gov We knew that CEC was in view Just like Ambassador Foote should not be Misrepresented here and be sweet quoted wrongly in his speech, what he said on the support by the Americans in the Zambian power sector is still happening and is beyond individual political parties and companies but national So it’s only fair that you all him to do his work without drawing him into petty politics of companies and parties His duty is to support the missions of the US and work with GOV institutions and private in…
in bipartisan manner
The electricity act also stipulate the Functions of Zesco and regulators in terms of generation,Transmission and distribution of power In Zambia. It has the responsibility to see the opportunities in new additional facilities for generation and supply of power to its clients including to acquire negotiate control and operate other undertakings for purposes of security of supply to Zambians at least cost The Sector is also open to other utilities like CEC that can replicate the same Now all these are managed by the Boards and set Business plans on how they want to grow their businesses and meet national energy demand So when you read the strategic energy plans over the…
over the periods and years of CEC and Zesco, you could have foreseen the risks and potentials in investments that the 2 TSO companies where exposed and it was simply a matter of time either south (SA)or north (DRC)power procured for those revenues (heavy depand on BSA and not volumes of Power generated)only embedded and secured on BSA with Zesco especially with the region power systems under load shedding
We love abayelo and CEC and that we need to humble and accept the situation and negotiate to work with Zesco and see the win win situation even if it comes to vertically being acquired by Zesco for the good of Zambia and the security of supply at least cost to the copper belt and…
beyond
I think the strategy for CEC looking at its Investor service was to be a regional power trading center and simply play that but Zesco and vicmalo have moved ahead and invested into that strategy better arround CEC and only now the Trading system that they are procuring Then it will be game over for CEC but in energy its never over opportunities are many
Its non political and individual but corporate market consolidation and re-positioning in the power sector I am equally suprised that Zesco has outwitted CEC
The worst thing is to create situation of stranded assets that is why discussion with Zesco on possible mergers and acquisitions make sense of those assets in 5.66 Billion
Napthali, can you please translate your comments into English so that we understand what you are trying to say so that we can engage in a meaningful debate? Please? As it stands everything is gibberish.
I suggest that before you translate into English, please do some research into your story too. Please contact David N to supervise you.
Now Anthony Bwalya, is this fake news or half truths or completely true? Answer depends on whether you are Mr Lungu or Mr Hichilema. But given a choice, the former’s perception of fake news makes me inclined to believe you
@junior jj
My post was aimed at pointing to the fact that “clever” Zambians like Mkandawire (ZPA Chairman) and Sindowe (General Manager) used their previleged positions to acquire national assets. They undervalued the assets for their own selfish interests. Secondly, by listing the share holding, I was putting it to Anthony Bwalya and Co that it is not about politicking and trying to punish the owners because of their political affiliation. When you care to follow through with the happenings at CEC, you will note that they are simply middle men. In fact they sold the company to Commonwealth Development Corporation only for the deal to be cancelled because ZESCO refused to guarantee the renewal of the bulk supply agreement. Yes they own the transmission infrastructure but CEC is dead in…
Zambia without the bulk supply agreement. My gut feeling is that GRZ is contemplating acquisition of the Zambia Energy Corporation shares and assume majority shareholder status. This could cost GRZ a fortune though.
Anthony
you are a small lazy researcher how can you be so myopic in this day & season
You sound like Kambwili ,Mutoba Hakalema and finally like the congo broken Harry Kaibala
shame on you little brat ask those who send you to spill this sewer to pamper you well or else you
trap/mouth will be shallow pit latrine
Shame on you & your ancestors