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Sunday, June 7, 2020

Days of Pleading for Business Contracts from Mine Owners Are Over, Mines Minister Assures CB Contractors

Economy Days of Pleading for Business Contracts from Mine Owners Are...

Mines Minister RICHARD MUSUKWA has assured mine suppliers and contractors on the Copperbelt that they will not plead for business contracts from the mines anymore.

Mr. MUSUKWA says the government wants to see a big chunk of the business contracts being given to Zambian contractors.

He says the government wants to bring back the dignity of the Zambian contractors to the Copperbelt.

Mr. MUSUKWA was speaking in Kitwe when he met mine contractors and suppliers together with his counterparts from the Ministries of Finance BWALYA NG’ANDU and JOYCE SIMUKOKO.

And Association of Mine Suppliers and Contractors President AUGUSTINE MUBANGA complained that Zambian contractors have been sidelined by Mopani Copper Mines in preference to foreigners.

Mr. MUBANGA said the rates given to foreign contractors are way too high compared to those given to local contractors doing the same kind of work.

He appealed to the government to come up with measures that compel mining companies to give equal business opportunities to local contractors.

And Finance Minister BWALYA NG’ANDU said the government will soon come up with measures that will protect local contractors from participating in businesses in the mining companies.

Meanwhile, Copperbelt Minister JAPHEN MWAKALOMBE assured the contractors that no contract jobs will be lost.

And Labour Minister JOYCE SIMUKOKO is disappointed with the actions by Mopani to place the mine under care and maintenance without following the law.

[Read 1,080 times, 1 reads today]

13 COMMENTS

  1. But wouldn’t government first distinguish what locals can supply and not. For example, heavy duty machinery surely can’t come from local supplies. Even the mining, itself is highly specialized. May be the supply of small polyethene pipes.

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  2. What the Minister of Mines is doing is just playing to the gallery. He should know that in the absence of a legal frame to compel miners to source locally when they can and the capacity to enforce such regulations, the mines will do what ever maximises the profits. This might include (1) sourcing directly from the manufacturers of products (which are almost always outside of Zambia) so as to obtain the best prices possible (2) through vertical supply chain integration, use transfer pricing to inflate their cost of capital, inputs and operations and by so doing declare low profit before tax. So what is the Minister’s asertion based on? As their being any changes in the regulations, policy or enforcement mechanism?

  3. PF government is running out of ideas and failing to tell the contractors the truth. The mines are closing and placed on care and maintenance, how then can they be given the first preference?

    Grapes are rotten mukwai!

  4. Keep politics away from business, look at how Zesco has been distroyed by PF cadres who are given overpriced contracts they do not qualify for. Management are under relentless pressure to give contracts to the party through cadres. That is why when one leaves the party like Kambwile, GBM and others did poverty sets in.
    During same radio programme, Kambwili once accused Nathan Chanda of having taken up too many contracts in the province under the 20 per cent sub contracting policy.
    Kambwili alleged that Chanda had the construction of the Kafulafuta Dam and ongoing road works, among other projects.
    He accused Chanda of being selfish because he has allegedly taken up most works meant to benefit the people and that “this has contributed to the Patriotic Front losing numbers on the…

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  5. This is what is scaring the imperialists because it gives economic advantage to Zambians. That’s why their proxies, upnd are doing their best to paint PF black in the hope that Zambians will vote for them. When such contracts are given to foreigners, they ship the money to their homeland and leave Zambians poorer. I LOVE THE TONE OF THE PF OVER SUCH FUNDAMENTAL NATIONAL MATTERS.

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  6. Reposes the mines and let Zambian run it. We have enough human capital to do this. Milingo Lungu is doing very well despite him being a finance person with no mining experience. All the money from the mines will be going into BOZ for the development of the country. Don’t mind the amount of money to be paid to these bamwisa, simply get a loan from friendly sources and pay them off and the 50% from the mines can be going directly loan repayment and the other 50% recapitalization and welfare.

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  7. The Primary school tutor Richard is back again…you can not even pay CEC bills how can you pay local contractors

  8. Zambian citizen the contracts for roads r entirely in Govts hands which Zambian have they given is it not AVIC who has all the contracts if that which is in ur hands u fail to do why do u want to force others.

  9. Let’s not be cheated. Govt borrows money from China in return for chinese owned companies to come and invest in Zambia, that borrowed money from china goes to these same Chinese companies who have contracts in Zambia, that money goes back to china where it came from and Zambia is left with interest to pay. More like china making dirty money come back clean to China. Why has govt not put these loans to parliament and why are they finding it difficult to get from IMF. The same Chinese companies get tax exemptions the only money Zambia keeps are salaries.

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