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Zamtel confirms restructuring process as the IDC backs the exercise

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Zamtel confirms restructuring process as the IDC backs the exercise

Zamtel says it has made a lot of progress in implementing the reorganisation exercise aimed at improving organizational efficiency.

In a statement, Zamtel disclosed that the exercise which started in the year 2019, with the approval of the Shareholder, the Industrial Development Corporation (IDC), includes transformation of the business model to focus on provision of mobile and fixed line services, optimisation of resources and reduction of operational costs.

In transforming the business model, a new enterprise Infratel Corporation Limited has been established within the IDC Group to optimize Zamtel’s infrastructure and implement Government’s open access agenda.

This process will ensure that Zamtel focuses on competing with other mobile network operators and will have more resources to utilize in ensuring a high-quality service to its customers.

Board Chairperson Mr. Danny Luswili said the process is key to achieving the goal of transforming Zamtel into a leading digital service provider and also improve its ability to create value for customers and remain competitive.

Mr. Luswili, said progress has already been made with the merging of some departments and the outsourcing of some functions.

“In transforming the company, Zamtel is ensuring that workers affected by the transformation are empowered. For instance, the company is working out modalities for the Call Centre to be outsourced to the Zamtel workers impacted by the restructuring. In areas such as market development and network maintenance, new opportunities are being created for those affected by the reorganisation,” Mr Luswili said.

The company has also ensured that all staff affected by reorganisation are paid their full packages, and further facilitated training in entrepreneurship and post work training.

Meanwhile, IDC Group CEO Mr. Mateyo Kaluba has expressed confidence in the handling of the reorganization by the Board and Management of Zamtel.

Mr. Kaluba said ZAMTEL has finally turned a new page which allows it to focus on becoming the leading network provider in the country.

“Zamtel faced challenges in providing a high-quality service, meeting its obligations as they fall due and securing the financing for its growth due to a cost-heavy structure and business model. We are confident that the reorganization that had been undertaken with the support of the Ministry of Finance and the Ministry of Transport and Communication will result in a strong company that will deliver the quality of service that its customers deserve”, he said.

Mr. Kaluba added, through the reforms implemented, over $390m has been cleared from the Zamtel balance sheet, thereby opening a new page for the company.

He said the creation of Infratel Corporation Limited from the rationalization of sharable telecommunication and ICT infrastructure will maximize the value of the infrastructure, cut down on duplication of investments in shareable infrastructure across state owned enterprises, while allowing enterprises to focus on their core businesses.

Mr. Kaluba said Infratel Corporation Limited will offer its services to both private and public enterprises thereby providing a world of opportunities in the digital world to small and medium Zambian enterprises.

He commended the Board of Directors and Management of Zamtel for their resolve and hard work in driving the reorganization agenda and expressed confidence that Zamtel was well on its way to becoming a profitable business.

He also dismissed reports that the IDC had sold Zamtel urging members of the public to disregard such reports with contempt.

ZESCO announces reduction for Load shedding from 15 hours to 10 hours country wide

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ZESCO announces reduction for Load shedding from 15 hours to 10 hours country wide

Power utility firm Zesco has announced a reduction in load shedding hours from minimum 15 hours to between 10 and 12 hours daily countrywide on a rotational basis.

This is due to the full resumption of generation at Maamba Collieries Limited following the repair and restoration of the generating unit that was out of service for some time.

“The Corporation is therefore happy to announce that it has reviewed the situation and has made the decision to pass on the benefit to customers by slightly reducing the hours of load shedding”, said Zesco Public Relations Manager Hazel Zulu.

Mrs Zulu said ZESCO will continue to review and monitor the water levels at the main reservoirs as the rain season progresses and will provide updates to the public accordingly.

She has however appealed to customers to employ energy efficient and conservation initiatives such as switching off lights when not needed and switching off electrical appliances when not in use as well as consider using alternative sources of energy where possible to help equitably share the available electricity.

In a statement, Mrs Zulu has further advised customers to report any outages outside their load shedding hours which may be attributed to faults.

Panji Kaunda rubbishes claims by PF Media Director Sunday Chanda

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Panji Kaunda rubbishes claims by PF Media Director Sunday Chanda

Former Deputy Minister of Defence Colonel Panji Kaunda has rubbished claims by PF Media Director Sunday Chanda that he is working with the UPND and Lameck Mangani to incite the People of Eastern Province against President Edgar Lungu and the Patriotic Front Government.

Party Media Director Sunda Chanda said in a statement that Colonel Kaunda is reportedly working with Lameck Mangani and a certain self-styled wanna-be media guru based in Lusaka, to rubble rouse and stir up anti-Edgar Lungu and PF Government sentiment in order to negatively influence Easterners in this regard.

But Colonel Kaunda says Sunday Chanda is being insincere with his allegations adding that if the PF is going to be destabilized in Eastern province, it will be their fault because they have failed to deliver on their promises to the people of Zambia.

Colonel Kaunda said he does not know the people Mr Chanda is talking about rejecting his assertions as total lies.

He, however, said that the PF has not delivered on the promises made to the people such as roads, schools and health centers which will affect their popularity.

Colonel Kaunda cited Vubwi as one area that has not benefited from the PF as no road has been built as promised.

He challenged that PF not look for scapegoats for their lies but should deliver on their promises if they are to remain relevant to the people of Eastern province.

But PF Media Director Sunday Chanda has reiterated his warning against treachery.

Mr Chanda said the Patriotic Front shall meet traitors with appropriate political force and will receive their just reward and reap with interest.

He has vowed that the party membership shall defend the leadership of the Party.

Mr Chanda said those with frustrations must use proper channels to air their grievances as opposed to undermining the current leadership.

$ 228 million expected to be injected in the Zambian economy by different South African investors

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$ 228 million expected to be injected in the Zambian economy by different South African investors

The Zambian Mission in South Africa has said over $ 228 million is expected to be injected in the Zambian economy by different South African investors operating in the country.

Zambia’s High Commissioner to South Africa Major General Jackson Miti says about 1000 jobs will be created once the investment portfolios are fully actualised.

Major General Miti said 24 investment certificates were granted to the investors through the Zambia Development Agency in 2019 with six being renewed licences

He noted that agriculture and manufacturing sectors were leading the investment portfolios in terms of capital investment and jobs to be created.

Major General Miti added that other sectors that have attracted investments included tourism, transport and service sectors among others.

He has since expressed gratitude to the Zambia Development Agency for speedy and efficient facilitation of investment opportunities for the South African investors.

Major General Miti said it is gratifying to note that Zambia has remained a country of choice for various investments owing to her stable economic and political environments.

Major General Miti mentioned that the Mission will enhance its engagements with various investors through the Zambia- South Africa Business Forum in order to attract more investments in different sectors of the Zambian economy.

This is according to a statement issued to the media by First Secretary Press and Public Relations at the Zambian Mission in South Africa Naomi Nyawali.

Chilubi Campaign: UPND’s Fielding of an Old Candidate is Adult Abuse-Mumbi Phiri

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Chilubi Campaign: UPND’s Fielding of an Old Candidate is Adult Abuse-Mumbi Phiri

Deputy Secretary-General for the Patriotic Front(PF), Hon. Mrs. Mumbi Phiri has said that it’s high time the United Party For National Development (UPND) leadership emulate President Edgar Lungu by giving opportunities to young people to take up leadership roles.

Mrs. Phiri wondered why the UPND would call back an old man from retirement to contest the Chilubi Parliamentary by-elections instead of picking a youth stating that the UPND action is literally Adult abuse.

She urged the UPND youth to join the Patriotic Front because, in the PF, they will get an opportunity to assume leadership roles because President Lungu has demonstrated his desire to see young people lead.

Mrs. Phiri was speaking during the PF rally at President Square in Chilubi this afternoon when Campaign Managers Dr. Chitalu Chilufya and Hon. Brian Mundubile introduced the PF Candidate Mr. Mulenga Fube to the People.

And Mrs. Phiri has urged Mr. Fube to have an open-door policy and to be humble once voted into office after February 13.

She said it is of grave importance for a leader to be humble and pay a listening ear to his people because he represents their aspirations.

And Mr. Fube said he is open to all advice from the people of Chilubi and those that have held leadership positions such as the one he is aspiring for, before.

He asked the people Chilubi to give him a chance to continue with the development agenda that President of the Republic of Zambia, His Excellency Dr. Edgar Chagwa Lungu has mapped out for them.

And Patriotic Front National Mobilisation Committee Deputy Chairperson and Deputy Campaign Manager for the Chilubi Parliamentary by-elections Mr. Geoffrey Bwalya Mwamba has said that Chilubi Island has several points of entry which the UPND can use to access the area if they want.

Mr Mwamba said the complaint by the UPND that the PF has hired all the boats hence their failure to access the island is ridiculous and typical of the UPND cry baby tactic which they are famous for using when they sense defeat.

He further said that the issue of the PF hiring all the boats is just not true stating that if the UPND have the money to hire boats, they can also do so because it’s not possible that PF can hire each and every boat.

Mr. Mwamba was responding to accusations by the UPND that PF is trying to sabotage their campaigns by hiring all the boats taking people to Chilubi.

And speaking at the same event, Camapign Manager for the Chilubi Parliamentary by elections Hon. Brian Mundubile said the UPND should just put in the work instead of making unfounded accusations against their opponents.

He said the PF would win the election because they have a clear agenda of how they will continue developing Chilubi and the rest of the nation as espoused in the PF manifesto and the 7th National Development Plan.

Kitwe’s Chiwempala Resident Riot again over Ritual Killings

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Kitwe’s Chiwempala Resident Riot again over Ritual Killings

Copperbelt Police Commissioner Charity Katanga has said that residents of Chiwempala have rioted again looting shops and destroying property, before Police reinforcements from nearby towns came in, to calm the situation.

Zambia Police Service has intensified patrols in Chingola’s Chiwempala area which recorded suspected ritual attacks in the past one month.

A check by a ZNBC News Crew yesterday morning found hundreds of armed Police officers combing Chiwempala through foot and motorised patrols.

The heavy presence of Police in the area has reassured residents of their safety.

As Police officers patrolled the area, hundreds of Chiwempala residents marched peacefully chanting slogans calling for peace.

The residents, some of whom jumped on Police vehicles, said they are tired of violence and want to live in peace.
Meanwhile, Chingola Member of Parliament Mathew Nkhuwa has donated a Toyota Hilux to Chiwempala Police Station to help Police Patrol the compound.

Mr Nkhuwa , who is also Energy Minister, sent his wife Rose to hand over the vehicle to Chingola Police Officer Commanding Peter Miselo .

Mr Nkhuwa said the area Member of Parliament is concerned about the insecurity in the area and wants Police officers to be mobile.

Meanwhile, Police in Chingola have started sensitising Chiwempala residents on dangers of violence.

Officers are holding impromptu meetings were they are adviseing residents not to resort to riots.

President Edgar Lungu back from Mozambique

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President Edgar Lungu back from Mozambique

President Edgar Lungu has arrived in the country from Mozambique where he was among heads of state and governments that witnessed the inauguration of Filipe Nyusi as President of Mozambique.

President Lungu arrived in Lusaka from Maputo last evening.

He was received by Cabinet Ministers, Service Chiefs and Lusaka Deputy Mayor Christopher Shakafuswa.

President Lungu was accompanied by Foreign Affairs Minister, Joe Malanji and other senior government officials.

Mr Nyusi, who won the Presidential election by 73 percent of the vote, last October, was being sworn in to begin a second term in office.

Tutwa Ngulube Explains Why US-based Zambian lawyer Professor Muna Ndulo has lost touch with Zambian laws

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Tutwa Ngulube Explains Why US-based Zambian lawyer Professor Muna Ndulo has lost touch with Zambian laws

PF Deputy Parliamentary Chief Whip Tutwa Ngulube says US-based Zambian lawyer Professor Muna Ndulo has lost touch with Zambian laws, judging by his “flawed” understanding of the Public Order Bill of 2019.

In an academic paper titled “The Public Order Bill, 2019, and the Right to Assembly in a Democratic State”, Prof Ndulo argued that the Public Order Bill, which was crafted alongside Bill 10, was one which sought to constitutionalise dictatorship.

But Ngulube accused Prof Ndulo of “bluntly telling lies” about the controversial Bill.

“Professor Ndulo is out of touch with Zambian laws and I think his comments and several utterances on various issues surrounding this country’s laws has actually demonstrated that Professor Ndulo has lost touch with reality! Professor Muna Ndulo has lost touch with the reality on the ground here, his interpretation of some of the laws in the country has actually confirmed that he has lost touch with what is actually obtaining here in Zambia,” Ngulube said.

“I think he is basing most of his comments on social media as if he is not an academician. Professor Ndulo has been misleading Zambians on a lot of factors, including Bill Number 10. If you look at his own articles on constitutionalism and what he deems to be a good constitution, Professor Ndulo has contradicted what he is teaching people; he is actually bluntly telling lies!”

He argued that the Public Order Bill of 2019 was actually attempting to reduce the powers of the police in the dispensation of the public order, contrary to Prof Ndulo’s remarks.

“If you look at the Public Order Bill of 2019 right now, the Public Order Bill of 2019 is creating an opportunity for feedback. In the Public Order Bill we have right now, there is no provision for the police to give an alternative day [to hold a meeting]. When you give a notification that you want to hold a meeting and the police decide to refuse in the current Public Order Act, the police have no opportunity to choose a second date and also to give you an opportunity to appeal against the decision. In the 2019 Public Order Bill, we are trying to make sure that the police don’t become the judges in their courts. In the current Public Order Act, the police are the final authority when the say, ‘no’ it’s is no!” Ngulube, who is also Kabwe Central PF member of parliament, argued.

“In the 2019 Bill, we are trying to remove most of those powers from the police and share them with society. For example, if a policeman decides that he will not allow Tutwa Ngulube to hold a procession, yet he will allow another person to hold a similar procession in the same vein, the Public Order Bill gives an opportunity to appeal to the Minister [of Home Affairs], and the minister can overrule the police officer and within 14 days, the matter must be concluded.”

He insisted that the 2019 Bill would not lead Zambia into dictatorship as the President and the Executive would not be involved in the execution of public order.

“In the 2019 Public Order Bill, we are making sure that we make a Bill not only for the PF, not only for UPND, not only for those in politics, but even for those in the future generation. So, if Prof Ndulo is saying the Public Order Bill is seeking to create a dictatorship, what does he mean? The President, the Executive, are not involved in the execution of the Public Order Bill. What we have now is a situation where the police have the absolute power; they can act arbitrarily; they can deny you constitutional rights of freedom of assembly and association. But in the current Bill, we are simply saying, ‘look, the rights for citizens to assemble should not be subject to police supervision’. Police should only come in for public safety and all sorts of things,” Ngulube said.

“So, I urge him to read the Bill again and he must get back to reality because so far, the comments being attributed to him, he is slowly losing touch and very soon, he might end up being irrelevant. That is why when we have a meeting on Bill Number 10, all he was looking at was the negatives; he can’t even look at the positives that the government is doing. So, his ability to critically analyze issues has been hampered by his perceived political inclinations because as an academician of such high calibre, Prof Ndulo should offer what we call a critique; he should be able to show the pros and the cons; he should be able to show what has gone wrong; he should be able to show what the advantages are and he should be able to see positives and negatives. All Prof Ndulo sees in what PF is doing are negatives and negatives!”

He urged Prof Ndulo to stop being politically inclined when dealing with important constitutional matters.

“Please, we want to urge him, please, Professor, come back to reality. It is pointless to be called ‘Professor’ when you are failing what other professors are doing. It is important that when people are dealing with important matters, they run away from political inclinations so that we become objective and you see, as a Professor, he commands a lot of respect among his learners and among us members of society. So, he must make informed and well-researched statements before he misleads the public,” said Ngulube.

“For now, we are simply saying, let him read the Public Order Bill again and he will notice that it is anchored on part three, which actually enforces the Bill of Rights. The current Public Order Act does not have any room for feedback; it does not have any room for people to even challenge the police. But in the 2019 Bill, we are giving an opportunity for people to rise against the police based on the judgments we were referring to.”

Source: Diggers

Former Home Affairs Minister Lameck Mangani warns Sunday Chanda

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Former Home Affairs Minister Lameck Mangani warns Sunday Chanda

Former Home Affairs Minister Lameck Mangani has responded to the allegation by the ruling Patriotic Front (PF) Media Director Sunday Chanda accusing him and others, including Panji Kaunda, of working to incite People in Eastern Province against President Lungu and PF.

In a statement released to the media, Mr. Mangani warned Mr. Chanda that the approach he used in MMD, together with the Late Chanda Chimba, could cause another catastrophic defeat for the PF if he didn’t adjust.

Mr Mangani said that the politics of divide and rule have no space in modern politics and that Zambians don’t enjoy, politics of character assassination and blackmail.

Below is the full statement

STATEMENT ISSUED BY HON. LAMECK MANGANI IN RESPONSE TO THE ALLEGATIONS LEVELED AGAINST HIM, ATTRIBUTED TO PF MEDIA DIRECTOR SUNDAY CHANDA ON 16TH JANUARY 2020.

I would like to react to the statements which are attributed to Councillor William Phiri the PF Provincial IPS for Eastern Province and our Media Director at PF Secretariate Mr Sunday Chanda.

To begin with, let me deal with Councillor Phiri’s statement who is the IPS in Eastern province. From the historical perspective Councillor Phiri, the current Provincial Chairperson Andrew Lubusha, Jacob Sakala and several other young men and women played a pivotal role in 2011 in order to fight for the Patriotic Front in Eastern province. It was a very aggressive approach and everybody put in their very best and I do appreciate their contributions. I think it’s from that perspective that Councillor Phiri is coming from. Looking back at what happened in 2011, he is seeing whether something of that nature could be done as we go into 2021. The way I understood his statement, he is calling upon the President, the party leadership and the entire membership, that we get United and get ready to mobilise all those players who contributed to the success of the party in 2011 so that we are assured of victory in 2021. In my view, I thought that was a very progressive statement. Although I was put at the centre, I believe the appeal was meant for all those who contributed to the success of the PF, particularly in 2011.

In this respect, I am humbled by the fact that other people like Councillor Phiri can appreciate my contribution to the party. It is not a secret that in 2011, I was at the center of most of the political activities in the province. This is the angle that Councillor Phiri is coming from.

On the other hand, I was surprised and shocked by the reaction of our Media Director at our Secretariate. He came up with all sorts of accusations which include that, there are people who are plotting against the First Family in Eastern Province. Among these people, was Colonel Panji Kaunda, myself, Councilor William Phiri and another Councillor whom I don’t know from Chipangali. And then Ambassador George Zulu and others.

As one of the Senior members of the party in Eastern province, who even served as Provincial Chairman, I take great exception to this naked attempt to sow needless division between myself, the Province and the First Family. I want to make it very clear, that I have no issues with the First Family and any desperate attempt to try and malign me in this regard is extremely unfortunate. Nevertheless, as an Easterner, I totally agree with the sentiments that the political hegemony in Eastern province is glaring and requires consented effort in order to address the situation on the ground. Of course, some of the issues are beyond human making such as climate change which has resulted in some parts experiencing crop failure. It is also true that the economy of Eastern province is basically agricultural and I am not ashamed to indicate that we are facing challenges in this area.

I would like also to state that, although Comrade Panji Kaunda is a colleague from UNIP days, I have never had any contact with him for a long time, either in person or through the phone. Furthermore, in 2019, I was only in Eastern province for 4(four) times. And I can count them that one was during the Ncwala Ceremony, during the Kulamba Ceremony, and then when I lost my Nephew who died in UTH and I took the body to the village, the latest one was when there was a funeral for Chief Zumwanda. On all these occasions I have spent less than 3(three) days at each given time.

So where have I been having meetings to destabilize the party? Do they have empirical evidence, that I have been distributing money alleged to come from UPND? And who is this person that has been giving me this money? As grave as these allegations sound to be, as a senior member of the party I should have been summoned by the party leadership to explain myself. My advice to my colleagues in the leadership of the party is that, as we proceed to seek a fresh mandate from the Zambian people in 2021, let’s be level headed and work on promoting health debates to deal with issues which are prevailing on the ground. That is the only way we can grow the party and be assured of victory in 2021. These alarming statements further create more confusion on the ground than solving the problems.

Admittedly, I have been deliberately quiet on many issues, but this must not suggest that I don’t understand what is prevailing on the ground.

I also want to put it on record, that I detest, politics extended to our families. And the mention of the First Lady Madam Esther Lungu and President LUNGU’s daughter Tasila Lungu who is my daughter is extremely hurtful. There is no need to drive a wage between me and the First Family over unfounded allegations.

To my young man Sunday Chanda, I would like you to know that many people suffered for the victory of the PF into government. I personally suffered both materially and financially in this regard. I know, I have been on this road before where people accuse me of all sorts of issues in order to get political mileage. But the truth shall always prevail. Unless otherwise, I can only speculate that you may be used by other people to fight their battles. As a media director, try very hard to engage people on issues that affect the party. Secondly, I am a strong believer that younger men of your kind should be given space to perform but any leadership goes with responsibility. I would also want to remind you, that the approach you had in MMD together with the Late Chanda Chimba could cause another catastrophic defeat for the PF if you don’t adjust! The politics of divide and rule have no space in modern politics. Please also take note that Zambians don’t enjoy, politics of character assassination and blackmail.

I Thank You!!!!

Hon. Lameck Mangani
Former PF Eastern Province Chairman and Former Minister of Home Affairs

CTPD calls for the Protection of Financial Intelligence Centre (FIC)

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CTPD calls for the Protection of Financial Intelligence Centre (FIC)

The Centre for Trade Policy and Development this morning appeared before the Committee on Cabinet Affairs to make a submission on the Role of the Financial Intelligence Centre (FIC) in the fight against Corruption and other Financial Crimes.

According to the statement released to the media by Mwaka Nyimbili, CTPD Information and Communications Specialist, corruption in Zambia is a big issue and continues to undermine the country’s ordinary citizens’ ability to adequately access public services such as health, clean water, proper housing, education, etc.

The situation of corruption in Zambia has been worsening and increased by a point from 38 in 2016, to 37 in 2017, and by two (2) points from 37 in 2017 to 35 points in 2018 (Transparency International, 2018). Of the 180 countries, Zambia was ranked at number 105, indicating high levels of corruption (Ibid, 2018). As such, citizens continue to lose trust in public service delivery in the country.

In its submission to the Committee, CTPD Executive Director Isaac Mwaipopo called for the protection of the Financial Intelligence Centre as this will help address insinuations by the General Public that it is operating outside its mandate.

Mr. Mwaipopo observed that the Financial Intelligence Centre is operating according to the Mandate it was established and that there is need to strengthen the functions of the FIC in addressing the weak coordination between the Centre and Law Enforcement Agencies.

He, however, added that the FIC is well-positioned to contribute to the fight against corruption because it is a key agency in domestic and international efforts to tackle money laundering and the financing of terrorism.

“Zambian FIC receives and analyses suspicious financial transactions which are then passed on to law enforcement agencies for onward investigations and possible prosecution where sufficient cause is established. In this case the role of the FIC is to be a provider of information to other agencies. What the other agencies do with the information they are provided with is entirely out of the control of the FIC’’, Mr. Mwaipopo said.

Going by the findings from CTPD research on the role of the FIC, Mr. Mwaipopo recommended the following to the committee:

(1) The need for increased funding to the FIC to enable it to carry out its mandate effectively.

(2) There is an urgent need for strengthened coordination between the various law enforcement agencies and the FIC to ensure increased chances of success in prosecution and conviction of cases brought up for investigation.

(3) Financial crimes are complex and fighting them requires an agency such as FIC to be well equipped with the latest technologies and training on fighting and tracking financial crimes. This therefore calls for increased budgetary support for trainings. (4) There is need for more protection from abuse of the members of staff at the FIC from members of society and politicians. In the past, the members of the FIC have been subjected to verbal and other forms of abuse for simply carrying out their work as required by the law.

Issued by
Mwaka Nyimbili
CTPD Information and Communications Specialist

Another MMD MP Survives Road Accident

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Another MMD MP Survives Road Accident

Opposition Movement for Multiparty Democracy (MMD) Member of Parliament for Mkaika Constituency Hon. Peter Phiri survived a road accident on Tuesday the 14th of January, 2020 around 23:30 hours in Sinda in Eastern Province.

Hon. Phiri who was traveling to Katete from Lusaka for a funeral rammed into a stationed Malawian Truck, which was partially parked along his road lane.

Hon. Phiri who was immediately rushed to Sinda Zone Clinic, was referred to St. Francis Hospital in Katete for observation.

This is the second accident that has involved an MMD MP, after last road accident that involved MMD Muchinga Member of Parliament Hon. Howard Kunda.

The Zambian Mining Fiscal Regime: Why Aint We Getting it Right?

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The Zambian Mining Fiscal Regime: Why Aint We Getting it Right?

 

By Webby Banda Senior Researcher (Extractives)

A Mining fiscal regime should obtain the right balance between raising revenue and providing fiscal space for mining companies to continue in operation. A mining fiscal regime should also inspire confidence that the country is collecting what it is owed.

In an endeavour to achieve this, the Zambian Government has structurally reformed the mining fiscal regime four times in the past five years. Although the current fiscal regime aims at capturing maximum revenue for the country, the Centre for Trade Policy and Development wishes to note the following deficiencies in its structure:

(i) Lack of capital gains tax

A capital gains tax (CGT) which is defined as a tax on the profit realised from the sale of a non-inventory asset is essential for Zambia to fully benefit from the sale of its mineral assets between multinational corporations. The most common capital gains are realised from the sale of real estate and property.

Therefore, the lack of an excess profit tax will continue to act as a weakest point of revenue loss. An example in history is the sale of Lumwana Mine by Equinox to Barrick Gold Corporation, where the country did not benefit from the transaction in form of capital gains.

(ii) Retention of administrative complex tax instruments

Maintaining administrative complex tax instruments like the current VAT system will continue to act as the weakest point of revenue loss. There is a need to match the complexity of the fiscal instruments in the current regime with the administrative capacity of the tax authority (Zambia Revenue Authority (ZRA). A country might have the best-designed tax system on paper, but if this is not matched with the administrative capacity of the tax authority, the tax system is bound to fail. The government needs to enhance the efficiency of the VAT system through structural reformation.

(iii) Lack of an excess profit tax instrument

The lack of an excess profit tax instrument in the current regime does not inspire confidence that the country will collect what is due or owed to it in high price cycles. A lack of an excess profit tax instrument will likely provide an incentive for the government to alter the regime in high price cycles. This is because it will feel it is not getting much of the desired revenue.

A robust fiscal regime should capture windfall gains in high price cycles but at the same time provide fiscal relief for mining companies to continue in operation in low price cycles.

Although the current mineral royalty might mimic the windfall tax, it is important to note that the former cannot serve the purpose of the latter. Mineral royalty acts as a rent paid to the government for the exploitation and exhaustion of mineral resources.

On the other hand, windfall tax is a fiscal instrument that aims at capturing windfall gains in high price cycles.

(iv) Overgenerous tax incentives

Overgenerous tax incentives in the current fiscal regime like the 10 years loss carryforward period continue to act as revenue leakages in the current fiscal regime. There is need to limit these overgenerous tax incentives given to large scale commercial mines.

However, energy needs to be redirected in crafting tax incentives that will grow the Artisanal and Small Mining (ASM) sector. This is because ASM is increasingly becoming an important sector of alleviating poverty levels in Zambia.

Chabinga laments Nkana defeat at Zanaco

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Nkana coach Manfred Chabinga admits they blew a valuable opportunity to go top of the FAZ Super Division table following Wednesday’s away loss at Zanaco.

The record 12-time champions fell 2-1 at Sunset Stadium in Lusaka to hand Zanaco its first league win from seven matches that also saw them crawl out of the FAZ Super Division relegation zone from fourth from bottom up one notch to 14th.

Nkana, though, stayed out at number two, tied on 34 points with leaders Green Eagles.

“Yah, we missed that one. This one was an important one for us unfortunately we lost 2-1,” Chabinga said.

“Of course I am disappointed, we definitely wanted to be on top of the log but we donated the points.”

But Chabinga added that he was optimistic Nkana would rebound in their last game in Lusaka this Saturday before return to Kitwe when they visit mid-table Green Buffaloes.

“They (chances) are very high, we are not a bad team, and we are a good team we need to talk to our players because we have chances of winning the league this season,” Chabinga said.

Protesting Retires at the Ministry of Justice were paid, says Dora Siliya

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Protesting Retires at the Ministry of Justice were paid, says Dora Siliya

Chief Government spokesperson Dora Siliya says some retirees who are part of the group demanding payment of their terminal benefits have already been paid and were swindled by some of their lawyers.

Ms Siliya says it is not correct to say that government is doing nothing about the retirees’ situation because money has been released on several occasions to pay them.

Speaking at a media briefing, Ms Siliya said government is concerned with the status of retirees who are spending months in the cold demanding to be paid their money and will ensure that what is due to them is paid.

She however said that records are there to show that some retirees were paid through their lawyers and it is not government’s responsibility to ensure that the money is transferred to them.

Meanwhile, Ms Siliya has warned that there will be chaos in the country if politicians continue peddling lies about institutions of governance.

She said Institutions such as the Electoral Commission of Zambia have been handling elections for a long time and there is need for the people to have confidence in it.

Zamtel in massive job lay offs

Chief Editor
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Zamtel in massive job lay offs

State owned telecommunications company Zamtel has started a process of cutting up to 140 jobs which will see a number of key staff thrown on the streets.

The affected employees have already started receiving their letters of termination of employment from the Human Resources Department while the Finance Department has already worked out a redundancy package.

Company sources revealed that the firm is looking at reducing its total headcount from around 570 employees to 430 which is around 17% of its establishment in order to make the company efficient and reduce running costs.

The sources further indicated that last year, a decision was made to outsource some of the company’s key units such as the Technical Department and Call Centre which has seen the reduction in the head count.

Some of the affected workers who opted to remain unidentified at this stage said the manner in which the redundancy programme has been handled is not transparent, unfair and riddled with corruption.

“The whole process has been mishandled because we are not being told the criteria being used to fire people. It’s like the people in management just wakes up one day and include some names on the list, letters are drafted and you are called to pick it up, that’s it!” one of the affected workers narrated.

She added, “We were called to attend some training programme at the Training Centre in Roma on Monday only to be given the letters and told to leave the organization. I think there could have been a more humane way of sacking people than this especially that this is January and the economy is not in good shape.”

Efforts to reach Zamtel Managing Director Sydney Mupeta for a comment proved futile by the time of publishing the story but company Head of Corporate Affairs Reuben Kamanga promised to issue a statement later.

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