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VICE President Inonge Wina (r) shakes hands with Southern Province Minister Nathaniel Mubukwanu shortly before leaving for Luasaka at Hurry Mwaanga Nkumbula International Airport in Livingstone. The Vice President was in Livingstone to officially open the International Conference on the Great Lakes Region (ICGLR) meeting of Ministers of Justice on domestication of ICGLR of protocols.
Acting President Inonge Wina says the PF government has pushed the agenda on women empowerment to a higher level by appointing more women in decision making positions.
Mrs Wina says there were few women in decision making positions in the defence and security wings before the PF assumed power.
She notes that most women police officers were unable to rise beyond the rank of deputy police commissioner despite having good qualifications.
Mrs Wina says the PF government has managed to transform the scenario by appointing the first female Inspector General of Police and other women as police commissioners heading provinces.
She says women no longer need to look elsewhere for inspiration but draw from fellow women holding high positions.
Mrs Wina was speaking when she officiated at the launch of a constitution for the Zambia Police women’s network in Lusaka on Wednesday.
The Vice President is happy that financial literacy is one of the topics to be covered saying government does not want officers to become impoverished after they leave the service.
Mrs Wina also called for enhanced gender equality in police recruitment.
And Home Affairs Permanent Secretary Dr Chileshe Mulenga called on male officers to support their female colleagues in decision making positions.
Meanwhile, Inspector General of Police Stella Libongani said the network had been instrumental in spearheading career development for female police officers.
Secretary to the Treasury, Fredson Yamba
Secretary to the Treasury Fredson Yamba says the activities happening in China are worrying because Zambia is part of the global community trading with that Country.
Mr. Yamba says Zambia is still alive to the effects of the 2008 economic crisis.
He has since urged the Zambian regulators, policy makers and other stakeholders to urgently evaluate the current regulations in light of the developments with a view to aligning regulatory regimes to the current global practices.
Mr Yamba was speaking in Lusaka on Wednesday at the Bond and Derivates Exchange -BADEX breakfast under the theme New Capital Markets and financial innovation: the case of BADEX.
The Secretary to the Treasury said the Zambian economy should diversify financial services beyond traditional banking as a boost to capital markets.
And BADEX Chief Executive Officer Peter Sitamulaho said Zambia is the second Country in Africa after South Africa to have BADEX on the market.
Mr. Sitamulaho said BADEX will take a lead in job creation and skills transfer.
Zambia Eurobond delegation
Secretary to the Treasury Fredson Yamba has dismissed predictions that the country will default in repaying its Eurobonds.
Mr. Yamba says the country will be able to make its first interest payment as well as repay the three Eurobonds.
He says this is why government has created a sinking fund in which money will start put next year.
Mr. Yamba notes that contrary to assertions that the sinking fund has been created late, it is not too late as the fund will be able serve the purpose it has been created for which is saving money for repaying the Eurobonds.
He explains that what the country has borrowed so far including the three Eurobonds is within the country’s projected borrowing figures and is within the country’s ability to repay back.
Mr. Yamba says there is no need to fear that the country might default in repaying the three Eurobonds as this is something that was planned for and is continuously being accessed.
He further states that apart from the sinking fund, government is also looking at other options such as refinancing debt among others that would help repay back the debts.
Green Party leader Peter Sinkamba
President Edgar Lungu has been commended for releasing former Labour Minister Austin Liato and other convicts from prison on account of ill health.
Green Party Leader Peter Sinkamba says the move is welcome considering that prisons are highly congested which is causing prisoners to suffer from different diseases.
Mr.Sinkamba has since called on President Lungu to consider pardoning prisoners with circumstantial cases such as those who are serving jail sentences on account of cultivating Marijuana.
Mr. Sinkamba notes that prisons in the country are full of people who have been jailed for merely cultivating marijuana.
He has since appealed to President Lungu to increase the number of prisoners to be released using the presidential prerogative of mercy during the commemoration of Zambia’s 51st independence anniversary.
Mkushi DC Luka Mwamba
Cadres belonging to the ruling PF(Patriotic Front) party briefly interrupted operations at Mkushi Community Radio Station on Tuesday afternoon in protest against alleged political inclination of a Board Member of that Station.
Mkushi Radio Board Chairperson Gershom Musonda told ZANIS that the incidence is worrisome, saying that the action of the cadres amounted to intimidation.
Mr.Musonda disclosed that the motive of the Cadres was in protest against a named Mkushi Radio Board Member who is said to be linked to opposition UPND(United Party for National Development).
Mkushi District Commissioner(DC) Luka Mwamba said that he intervened into the matter in order to ensure that the issue is handled amicably.
Mr. Mwamba explained that the cadres had cited a Board Member who found to be a District Official in the UPND, saying that the Mkushi Radio’s Constitution insisted on non-partisan Board Membership.
He assured that peace and harmony is now prevailing at this Station as this Board Member had resigned from this position with immediate effect.
He however implored cadres to refrain from interfering with operations at this Station, and urged the Radio Station Management to scale up in improving the welfare of Staff members of that institution.
Mr. Mwamba said that there is need for management to scale up in addressing transport challenges as Reporters are unable to go to far parts of Mkushi to gather news.
The Power Generation and Allied Workers Union of Zambia has demanded that Energy Minister Christopher Yaluma should appoint a substantive board at state run power utility ZESCO with immediate effect.
Union President Thomas Nyendwa said the union is of the strong view because as this will greatly improve operations at ZESCO and also help the firm focus on the power supply challenges being faced.
Mr Nyendwa said appointing a Board will also set the company on a new path to regain confidence of all stakeholders that has been greatly eroded in the last few months with the crippling power outages and load shading being experienced nationwide.
He said the Union is concerned that in the last seven months since the last board was dissolved, the situation at Zesco has gone from worse to bad as some of the crucial decisions in ensuring the smooth operations of the firm have not been made.
Mr Nyendwa has also objected the recent pronouncement by Mr Yaluma to have the Zesco management step down in the current power deficit in the Country persists up to October this year.
He said the Union also notes with concern that Mr Yaluma’s conduct of overstepping his supervisory role at Zesco needs a board in place.
“We don’t want to conclude that he is a beneficiary of this chaotic situation he deliberately allowed. Does he want to run ZESCO as an employee? We want him to constitute a board within 48 Hours instead of making wild statements about who should resign when just below his noise a corrosive crude oil was procured, we are shocked he considers himself morally positioned to say others should resign.”
Forum for Democracy and Development spokesperson Antonio Mwanza stresses a point during the meeting to demand for the release of the draft Zambian constitution
The opposition FDD has charged that Education, Science and Technology Minister Dr Michael Kaingu has lamentably failed to run the education sector because he is incompetent.
FDD Spokesman Antonio Mwanza said in an interview that the education sector has been in disarray since Dr Kaingu was appointed as Minister.
Mr Mwanza has since appealed to President Edgar Lungu to fire Dr Kaingu if he is serious about managing the affairs at the Ministry of Education.
He said there has never been a single week in which the three public universities have run smoothly with Dr Kaingu at the helm.
“This proves that the man is a failure, he has lamentably failed to provide leadership and the sector is now in disarray. Almost every week, there is a new crisis emerging either at UNZA, CBU or Mulungushi Universities,” Mr Mwanza said.
He said Zambians should never expect any efficiency in the education sector as long as Dr Kaingu remains Minister.
“This Minister has been a total failure with handling of education matters, there has not been any single week where universities have run smoothly, everything has collapsed,” Mr Mwanza said.
He said Dr Kaingu has been ineffective, incompetent and lacks seriousness to run the education sector and must be fired immediately.
Economist, Mr Trevor Simumba
International Trade Consultant says the current economic problems facing Zambia today have not been caused by Chinese economic turmoil.
Mr Simumba charged that Zambia’s economic challenges have been brought about because of excessive borrowing and a huge budget deficit.
In an interview, Mr Simumba said the Chinese economic downturn will only add to the existing problems ravaging the Zambian economy.
“We should be very careful here, the current problems affecting Zambia have not been caused by the Chinese downturn, it is going to add to the factors affecting our economy. The main factors are that we have been running a huge budget deficit and too much borrowing,” Mr Simumba said.
Mr Simumba predicted that the impact on the Zambian economy from the Chinese downturn will be severe.
“The impact that is going to come as a result of the current Chinese downturn is going to be great because moist of our copper goes to China, so the demand for cooper will be low which will even lower the copper prices further on the international market and we will see a further Kwacha depreciation,” Mr Simumba said.
Australia based Zambian Rap pioneer , Crisis Mr. Swagger , releases the video for his song Rough Scandalous
https://www.youtube.com/watch?v=u_5PpuhoFfM BY KAPA187
VICE President Inonge Wina (r) shakes hands with Southern Province Minister Nathaniel Mubukwanu shortly before leaving for Luasaka at Hurry Mwaanga Nkumbula International Airport in Livingstone. The Vice President was in Livingstone to officially open the International Conference on the Great Lakes Region (ICGLR) meeting of Ministers of Justice on domestication of ICGLR of protocols.
REPUBLICAN Vice President Inonge Wina has urged members of the Great Lakes Region to explore all possible ways to address their challenges to enable the region attain its vision of transforming into an oasis of peace.
Ms Wina said there were many challenges member states had encountered to domesticate the Protocols as well as the Pact on security, stability and development in the Great Lakes Region but the challenges were not insurmountable.
She challenged member states to expedite the process of domesticating the Pact and its Protocols if the vision of sustainable peace, security, political and social stability, economic growth and development in the Great Lakes Region was to be realised.
Ms Wina urged member states to learn from each other by sharing best practices and experiences on the domestication process.
She was speaking in Livingstone at Avani Victoria Falls Hotel yesterday when she officially opened the meeting of Ministers of Justice of the Great Lakes Region on the domestication of the international conference on the Great Lakes Region Pact and Protocols.
Countries in the Great Lakes Region include Angola, Central African Republic, Democratic Republic of Congo, South Sudan, Sudan, Zambia, Burundi, Kenya, Rwanda, Uganda, Tanzania and Republic of Congo.
Ms Wina said she was aware that the domestication process had been slow in most of the member states.
She said the scenario was impeding the attainment of agreed commitments and realisation of the vision for the region due to member states being at different stages of implimentation.
“It is almost a decade since the Pact on security, stability and development in the Great Lakes Region was adopted by 11 Heads of State and Government on the Great lakes Region in December 2006.
“It is therefore expected that obligations that member states assumed upon signing and ratifying the Pact should now translate into action. The most feasible way of doing this is to domesticate the Pact and Protocols and ensure that the provisions therein become part of the national laws of each member state, ” Ms Wina said.
She said the Region was volatile as it was still grappling with issues such h as lack of respect for the rule of law, endemic mismanagement of resources, corruption, human rights abuse, gender based violence, illicit proliferation of small arms and light weapons, human and drug trafficking as well as illegal exploitation of natural resources.
VICE President Inonge Wina (r) shakes hands with Southern Province Minister Nathaniel Mubukwanu shortly before leaving for Luasaka at Hurry Mwaanga Nkumbula International Airport in Livingstone. The Vice President was in Livingstone to officially open the International Conference on the Great Lakes Region (ICGLR) meeting of Ministers of Justice on domestication of ICGLR of protocols.
Ms Wina said the volatility of the Region consequently affordable ted vulnerable groups such as women, children, the aged and persons with disabilities.
She said 10 Protocols and four programmes of action with 33 priority projects were signed and ratified by mm er states in order to protect the rights of all persons especially the vulnerable groups.
Ms Wina said Zambia had formulated policy is and enacted legislation to protect the rights of vulnerable people.
She also said her country had legislation on mutual legal assistance in criminal matters, extradition and transfer of convicted persons.
“Using these laws, Zambia has concluded bilateral agreements with some members . of the Great Lakes Region on mutual legal assistance and transfer of convinced teed persons.
“I am glad to state that this cooperation is a step in the attainment of our common vision of peace and security in ted ed his he region.
VICE President Inonge Wina gives her speech during the official opening of International Conference on the Great Lakes Region (ICGLR) meeting of Ministers of Justice on domestication of ICGLR of protocols at Zambezi Sun Hotel in Livingstone Yesterday. On the right is Justice Minister Ngosa Simbyakula and ICGLR Secretary General Antonio Bembe.
Speaking at the same meeting, Zambia’s Justice Minister Ngosa Simbyakula said his country was greatly honored to host the meeting.
Dr Simbyakula said the slow rate at which the domestication process was taking place was affecting the cooperation among member states as certain activities could not be jointly conducted due to different levels of implimenting the Pact.
“Consequently, achievement of the common goal for the Great Lakes Region has been affected.
“This meeting has therefore been convened to find ways of expediting the domestication process,” he said.
Chairperson of the Conference Antonio Bent Bembe said he was convinced that the deliberations at the meeting would contribute to the achievement of goals for the Region.
General Bembe, who is Angola Secretary of State for Human Rights, said there was need to consolidate the rules of different countries so that they gain experiences and practices from each other.
International Conference on the Great Lakes Region (ICGLR) executive secretary Numb Luaba also spoke during the gathering.
VICE President Inonge Wina (c) poses for a photograph with delegates of International Conference on the Great Lakes Region (ICGLR) meeting of Ministers of Justice on domestication of ICGLR of protocols at Zambezi Sun Hotel in LivingstoneVICE President Inonge Wina gives her speech during the official opening of International Conference on the Great Lakes Region (ICGLR) meeting of Ministers of Justice on domestication of ICGLR of protocols at Zambezi Sun Hotel in Livingstone Yesterday. On the right is Justice Minister Ngosa Simbyakula and ICGLR Secretary General Antonio Bembe.
ZAMBIA’S ECONOMY IS NOT DIVORCED FROM THE GLOBAL ECONOMY AS DOOMSAYERS IN THE OPPOSITION WOULD WANT CITIZENS TO BELIEVE – BY SUNDAY CHANDA, VICE CHAIRPERSON- PF MEDIA AND PUBLICITY COMMITTEE
Lusaka, Zambia, 25th August 2015 – While the Opposition and Cartel have gone on rampage trying so hard to discredit the eight (8) months of His Excellency President Edgar Chagwa Lungu, his 18 month term of Office will include major successes that will forever be engrained in Zambia’s history. The challenges faced by President Lungu upon becoming head of State were enormous and has had to make tough decisions in the best interest of the nation. These challenges include a difficult political transition within Patriotic Front (PF) when the cartel that is still fighting him in their daily tabloid almost wrestled power following our late President H.E. Michael Chilufya Sata’s death, followed by a presidential by- election in which he only campaigned for 28 days.
And since Zambia is part of the globalised world we all live in, global economic challenges happening in one world market will have repercussions across borders in various countries. For the past years, slowdown in the Chinese economy has resulted in reduced demand by that country for commodities like oil and minerals, including Zambia’s copper, resulting in falling commodity prices, reduced foreign exchange earnings for the country and putting pressure on the Kwacha. This phenomenon is happening across the world, as shown by yesterday’s BLACK MONDAY which saw volatility in and plunging of world markets in China, the USA, Europe, Australia and many countries due to investors’ fears on economic slowdown in China and that country devaluing its currency the Yuan recently.
Since the world has been relying on China for growth in recent years, the immediate effect of the plunging of world markets has been a further fall in commodity prices e.g. oil, copper, aluminium, gold, coffee, etc. and emerging markets being forced to devalue their currencies.
Consequently the South Africa Rand, Zambian Kwacha, Ugandan Shilling and Tanzanian Shilling have depreciated to an all-time low, while falling oil prices are putting pressure on oil economies like Angola and Nigeria. President Lungu’s government is working to mitigate these challenges and also cooperating with other affected countries, including the industrialization policy by other countries within the SADC region. This is why the PF government is working on diversifying the country’s economy so that we can manufacture and export various products. This way the country will not be held hostage to one commodity, Copper.
While the Opposition has opted to refuse the reality and effects of climate change affecting about 30 African Countries, President Lungu’s administration has had to deal with the negative effects of global warming, which were responsible for poor rains and consequently, low water levels at the Kariba Dam. This has resulted in the current and unfortunate load-shedding and PF in Government understands the anguish this has brought on households and the industry. In responding to these challenges, President Lungu has committed to the diversification of energy sources to solar, thermal and wind energy, including the procurement of solar-powered milling plants to be distributed in all the ten (10) provinces of Zambia.
This decision by the President and his Government will surely result in lessened dependency on hydro-power. Unfortunately, while the water levels at Kariba Dam have been going down, Opposition leaders such as Mr. Hakainde Hichilema, Edith Nawakwi, among others, have sought to deceive Zambians that they are the equivalent of rainmakers. Zambians must therefore ask these Opposition leaders how they plan on filling up Kariba Dam under the circumstances. These Opposition leaders wrongly believe that Zambians are so gullible to believe their distortions. We wish to remind these Opposition leaders that Zambians know that all Presidents face unique challenges at any given time and President Lungu will rise above the prevailing obstacles.
Lastly, we wish to reiterate President Lungu’s Cabinet’s resolve to complete all outstanding infrastructure development projects and implementing a robust youth economic empowerment and employment plan demonstrates his commitment to spurring economic activity and investing in long-term growth. We also wish to make mention that the Cartel and UPND fails to realize is that their hatred and insults against President Lungu will not slow him down in his quest to create a better life for all Zambians.
As a matter of fact, the more insults and ridicule they throw in his face, the more he wants to do his best for Zambia. Their lies and cheap propaganda will not bring President Lungu down. Whether the Cartel and UPND like it or not, President Lungu’s first tenure will be judged as an accomplishment and on that basis, Zambians will renew his mandate to administer the affairs of the country.
Issued by: Sunday Chanda, Vice Chairperson, PF Media and Publicity Committee
Tourism and Arts Minister Jean Kapata (right) and Livingstone District Commissioner interacts with some international artists during the Insaka International Arts Exhibition at the Livingstone Art Gallery
THE Ministry of Tourism and Arts and other tourism related institutions are still planing to relocate to Livingstone to rejuvenate tourism activities in Zambia’s tourist capital.
Tourism and Arts Minister Jean Kapata said her Ministry and related tourism bodies would relocate to Livingstone from Lusaka though she might not relocate because she was supposed to be in Cabinet every Monday for meetings.
Ms Kapata said in an interview that Government was currently restructuring the Zambia Wildlife Authority (ZAWA) into a department of wildlife and national parks under her Ministry after which positions would be advertised and some officers would be sent to Livingstone.
“We would like to push a few people to come and take positions here in the tourist capital so that we really make sure that it becomes what it is supposed to be than keeping people.
“As I speak to you, we are just restructuring ZAWA and see which positions will be available and some adverts will be put for people to apply. Once we are set, we will see which departments will come and stay in Livingstone,” Ms Kapata said.
Early this year, Vice President Inonge Wina said plans were underway to relocate Zambia Tourism Board ( ZTB) head office and other tourism related bodies from Lusaka to Livingstone to rejuvenate tourism activities in the tourist capital.
Ms Wina said there was need to revamp the economy of Livingstone through tourism following the relocation of the provincial headquarters to Choma.
Rupiah Banda and Edgar Lungu lift the MMD and PF symbols after Banda announced his support for Lungu in Chipata
Democracy (MMD) Copperbelt Provincial Chairman Mr. Denson Chisunka, popularly known as “Macheni Macheni” has slammed Patriotic Front (PF) Copperbelt Member of the Central Committee Mwenya Musenge for suggesting that MMD Party president Dr. Nevers Sekwila Mumba has no control on the MMD and that it is former Republican President Rupiah Banda (RB) who is in charge.
“We in the MMD would wish to loudly declare to Musenge and the entire PF who are living in the past, that RB was never a genuine member nor ever believed in the ideals of MMD from the very beginning. Judging from his recent conduct since his unsuccessful attempt to forcibly get the MMD Party presidency from Dr. Mumba, every right thinking Zambian has realized that the old man was a ‘Sangwapo’ president. He was a shameless chancer who had no heart for the MMD or the country.
“The heartbreaking painful memory ingrained on the people of Zambia is of his clenched fist PF symbol on one hand and the MMD “The Hour” symbol on the other hand, in front of cheering PF supporters that ‘Inkoloko nomba nipa maka’. He thought he had finally finished Nevers Mumba and the MMD, but let him know that his hour of reckoning has finally come,” said Mr. Chisunka.
Mr. Chisunka said that the PF, with all the country’s intelligence machinery at its disposal, has no clue what is actually going on in the whole country, especially on the Copperbelt and the people of Zambia are itching to punish and give the PF the boot after their “donchi kubeba” lies and incredible incompetence as a government.
“The PF should know by now that since the pre-independence days, all political upheavals originate from the Copperbelt, because it is the heart of the country’s economy and this is what the PF Government has destroyed,” said Mr. Chisunka.
He has advised Mr. Musenge to open his eyes and see for himself the rapidly unfolding scenario in the MMD which is engulfing the entire nation like a virus and advised the PF to brace itself for the most crushing and humiliating electoral defeat Zambia has ever witnessed.
Mr. Chisunka used a Bemba adage which says ‘eko usulile ekopa noko’. He said that the PF should start bracing itself for the for the eruption of the MMD volcano which the late President Michael Sata (MHSRIP) prophesied would erupt and consume the PF.
He said all politicians in Zambia know the danger that Dr Mumba poses to their political ambitions and that is why he has been the focus of unwarranted arrests, police harassment, and postings to remote places to limit his influence.
“After destroying the MMD with their endless calls that ‘MMD is dead’, RB and his cohorts moved to PF where they have now settled as they had planned, where they are now ‘eating’ with both hands and have forgotten about the MMD. Yet Dr. Mumba stayed on and has demonstrated to everyone that he has a
love for the MMD.
“He has stood fearlessly in the face of vicious attacks and imprisonment at the hands of the PF, he fought attempts to de-register the MMD and has weathered one of the most viscous storms ever faced by the MMD. Who can compare to Nevers?” asked Mr. Chisunka.
“As Copperbelt MMD, we announce to Mr. Musenge and PF that the MMD has only one democratically elected President and that is Dr. Nevers Sekwila Mumba whose leadership was endorsed by the Supreme Court of Zambia on 18th December 2014. We are informing him that the one he is mentioning as being in charge of the MMD and those who have now followed him out of the MMD were wolves that came to the MMD at night in sheepskins to rape, plunder and destroy the MMD for their selfish ambitions.
“These people took the MMD into confusion and division and wanted to reap where the founding fathers of the MMD dream such as Frederick Chiluba, Levy Mwanawasa, Akashambatwa Mbikusita Lewanika, Biggie Nkumbula and others had laboured to bring about the prosperous Zambia we have been enjoying which is being destroyed by the PF.
“These wolves knew nothing of the sacrifice these great men made in the face of the mighty one-party UNIP administration” said Mr. Chisunka. Mr. Chisunka has issued a strong warning to the PF that the game is now up and Nevers has come back as his middle name says to ‘sekwila’ (remove weeds) and pick up from where his elder brothers left off. He said Dr Mumba shall take Zambia from the confusion and poverty that the PF has put Zambia in, back to prosperity.
PACRA board Chairman William Nyirenda (right), Central Province Minister Davies Chisopa (centre) and Commerce Minister Margaret Mwanakatwe during the official opening of new PACRA office in Kabwe
ZAMBEZI Portland Cement (ZPC) has welcomed the decision by Government to drop William Nyirenda as Patents and Companies Registration Agency (PACRA) chairperson.
Government, through Commerce, Trade and Industry Minister, Margaret Mwanakatwe terminated the chairmanship of Mr Nyirenda at the weekend after five years of being at the helm of the Agency.
A ZPC spokesperson said in Ndola yesterday that, the dropping of Mr Nyirenda as chairperson for PACRA was long overdue and appreciated the decision made by Government as it would promote transparency as there would not be any conflict of interest.
“The continued stay at the helm of PACRA of Mr Nyirenda was not healthy for the organisation, considering the fact that he is also on the board of directors of Finance Bank, where he has been serving the interests of Businessman Rajan Mahtani.
“We therefore wish to state that the decision to relieve Mr Nyirenda of his duties as PACRA chairman would no doubt promote transparency and remove conflict of interest at PACRA,” the spokesperson said in a statement.
He said the company was aware of under-hand methods being orchestrated by people opposed to the fact that ZPC was legitimately owned by the Ventriglias and no amount of undue influence would change the status quo.
“The sudden reversal of the amendment of PACRA records in which Dr Mahtani was deleted from the list of shareholders of ZPC was shrouded in unprofessional manoeuvres,” he added.
He said the claim by Dr Mahtani of 58 percent ownership of ZPC through Finsbury Investments was allegedly fraudulent, illegal and forgery which they would not accept.
The spokesperson said for about seven years, no original transfer share documents have been submitted to PACRA, yet the law states that failure to produce original share documents within 21 days, PACRA is mandated to revert the share-holding portifolio to the original status.
“We pride ourselves in credible business undertakings and we shall always endeavour to follow the legal systems,” the spokesperson said
Nevers Mumba
Movement for Multiparty Democracy (MMD) President Dr. Nevers Sekwila Mumba says that the Patriotic Front (PF) government is about to waste One Billion Dollars of tax payer money because of their stubborn insistence to keep Zamtel as a parastatal and borrow $300 million to recapitalize it.
Dr Mumba said poor Zambians for decades into the future will be saddled with the $1 billion bill because the government may need to compensate LAP GreenN for nationalising Zamtel and to maintain the
loss-making parastatal’s inefficient systems.
Dr. Mumba said that the PF government did not follow proper procedure when nationalising Zamtel in 2012 and have not compensated LAP GreenN who paid $257 million for the company and invested a
further $170 million. LAP GreenN has sued the Zambian government and claimed damages of $480 million. In addition, he said the Government may have to bear its legal costs which could potentially run into millions of Dollars, especially if LAP GreenN are awarded costs in addition.
“It is absolutely shocking that within a year of grabbing Zamtel, the PF government made sure they turned a profit-making enterprise into a loss-making company such that they have now been forced to borrow $300 million to recapitalise Zamtel, and this is on top of various loans they have already obtained from the local commercial banks, also for Zamtel. When we discussed this issue with my Economic advisers, we were all astounded at the sheer magnitude of this wastage.
“The forced re-nationalisation of Zamtel, exacerbated by the deportation of key management staff such as the former CEO Hans Paulsen, dealt a huge negative blow to investor confidence which had been built over 20 years under the MMD,” Dr. Mumba said.
Dr. Mumba said that if government loses the court case, the $480 million compensation will have to include interest for 5 years at the Bank of Zambia average lending rate of 11% per annum. He said this amounts to over $700 million since PF are not likely to sell Zamtel before the next elections. He said that the $300 million loan the PF government is planning to obtain shall be another Eurobond which shall attract interest of 9% per annum.
He said if this loan is paid in 5 years, the total repayments shall amount to over $400 million, without counting other loan arrangement costs which in themselves can run into millions of Dollars. He said the total figure comes to almost $1.2 billion, without including legal fees for the court case. He said Zambia’s recent credit rating downgrade could potentially make the figures far worse.
Dr. Mumba said $1 billion can build ten modern hospitals with one thousand bed spaces or five General hospitals like the University Teaching Hospital. He also said the money can build 1,000km of roads, a distance comparable from Livingstone to Ndola.
He wondered how any sitting government can be so irresponsible to waste so much money for their selfish political reasons. He said the final impact on Zambians will be terrible because there will be less money for schools, hospitals, roads and other important projects.
He noted that the declining Zambian economy under PF will make the impact of the $1.2 billion very huge, especially when the repayments for the other three Eurobonds which total $3 billion are factored in. He said he expects the PF to do the only thing they know which is to borrow the $1.2 billion in another Eurobond issue.
Dr. Mumba said the Zambian economy was built on a foundation of free markets and vibrant private sector, of which the MMD were the architects and builders. He said that 50 years of Zambian history has demonstrated that governments tend to run parastatals inefficiently which is the reason only 7 parastatals are profitable out of 42.
He stressed that the role of government is to provide the right regulatory framework and investment climate to ensure that all companies perform well. Dr. Mumba said the PF will find it hard to resist siphoning out part of the $300 million loan to use for campaigns next year.
Dr. Mumba holds a Masters Degree in Public Policy and Governance that includes modules in Economics from Regent University in Virginia USA.