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Allocate resources for the completion of constitution making process. SACCORD

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Finance Minister Alexander Chikwanda with Muchinga Permanent Secretary Charles Sipanje touring newly opened Zambia National Commercial Bank Branch in Nakonde
File: Finance Minister Alexander Chikwanda with Muchinga Permanent Secretary Charles Sipanje touring newly opened Zambia National Commercial Bank Branch in Nakonde

SACCORD has called on the PF government through Finance Minister Alexander Chikwanda to ensure that it allocates resources for the completion of the constitution making process as he presents the 2015 budget on Friday, 10 October 2014.

SACCORD Executive Director Boniface Cheembe says the constitution making process remains in limbo 3 years after the process was started while huge amounts of money continues to be spent on the process which has stalled since it was handed over to the government.

Mr. Cheembe also called on the Minister to account for the resources allocated to the process in the 2014 budget as there has been no activity regarding the process apart from the never ending debate on the whereabouts of the document.

He further urged the Minister to ensure that resources are provided for the conclusion of the constitution making process and for a referendum so as to ensure the adoption of the new constitution.

Below is a full statement on the expectations of SACCORD in the 2015 budget issued by the Executive Director Boniface Cheembe.

7th October 2014

SACCORD Press Statement on 2015 Budget expectations

As the Minister of Finance prepares to present the 2015 national budget, the Southern African Centre for the Constructive Resolution of Disputes (SACCORD) would like to remind the minister to provide sufficient resources for the following areas which we feel are critical in consolidating our democracy, job creation, improving on human rights, peaceful co-existence and the general wellbeing of the people of Zambia. These are: The constitution making process; funding to the Electoral Commission of Zambia (ECZ); respect for human rights; youth employment; job creation; and national Unity. We believe that it is important to build on the gains that the country has continued to record over the years. We therefore urge the Minister of Finance to provide in the 2015 budget for the following:

Constitution making process: The constitution making process has continued over the last 3 years with very little if anything being achieved while colossal sums of taxpayers’ money being allocated to it and in most cases is spent. We note with great sadness that the process has lately been allocated huge amounts of money which cannot be accounted for when it comes to the actual work done. In 2014, more that K40 million kwacha was allocated to this process as far as we are concerned there has been zero work done on the constitution in 2014 apart from the continued debate of where the draft constitution is. We would like to urge the minister to account for this money in his speech and also ensure that enough funds are provided so that the process in concluded and a national referendum held to adopt the new constitution.

We still believe that there is no need to continue dragging this process as most Zambians would like to have a final say on the constitution and this can only be through the referendum being called for by most Zambians.

Electoral Commission of Zambia: In 2016, Zambia will be holding general elections and as the law demands, the Electoral Commission of Zambia will need to register new voters in addition to delimitation of constituency boundaries as a result of new districts that have been created by the Patriotic Front (PF) government. We therefore urge the minister to provide enough funds to the ECZ so that it can begin working on the above programs in order to ensure proper representation of the people was well as allowing for all eligible voters to take part in elections. The commission is critical to the development of democracy in Zambia and we would like to urge government to ensure that its works is made easier through providing for sufficient resources.

Public Order Act (POA): The Public Order Act has remained a challenge in this country. While we note some slight improvements in its administration as compared to 2013, a lot still needs to be done not only with regards the conduct of police officers but the pressure exerted of officers by political leaders in government. We also urge the minister to ensure that enough funds are provided for police to recruit more officers and have enough equipment to be able to guarantee peace and order in the country. We also urge the police leadership to respect provisions of our constitution which guarantee the freedom of association, expression and assembly for all the people in Zambia. This has to be respected regardless of the political party seeking to enjoy these rights belong to.

Human rights: Zambia’s human rights record still remains unimpressive especially when it comes to Civil and political rights. The state despite making commitments to international bodies such as the United Nations Human Rights Council’s Universal Periodic Review (UPR) in which a lot of concerns were raised regarding the rights for individuals and groups in the country has not done enough to actualize these commitments. We urge government to ensure that it respects the rights of all people in the country by allocating adequate resources to start implementing accepted recommendations under the UPR.

Revised decentralization policy: We urge the Minister of Finance to allocate adequate resources towards the revised decentralization policy so that the country can begin to experience an expedited process of implementation.

Job creation: A number of Zambians are jobless and some of those with jobs have unstable jobs which also do not pay well. This has continued to lead to poverty among the larger majority of Zambians. We therefore urge government to provide for conditions in the 2015 budget which will allow for job creation so as to reduce on poverty levels in the country.

Youth employment: The youths in Zambia are the most affected in terms of lack of jobs. The year 2014 has not been good in that more youths still remain unemployed with some not even able to go to school. We urge the Minister to ensure that funds are provided for alternative income generating programs for youths so that those that can’t get employed can venture into them. We also believe that the Youth Fund should receive more money and these should be given without political affiliation considerations as the accusations have been under the 2013 and 2014 allocations.

National Unity: As Zambia turns 50 years in peace, it is important that the country sustains this peace. The peace Zambia has enjoyed over the years has been as a result of efforts that have been undertaken to work for peace by all people in Zambia. We therefore urge the government and the minister of finance to ensure that programmes that seek to promote national unity receive sufficient funds for them to be sustained.

Boniface Cheembe

Executive Director

SACCORD

No clear favorite for the 2016 elections, FODEP

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FODEP Executive Director McDonald Chipenzi
FODEP Executive Director McDonald Chipenzi

The Foundation for Democratic Process FODEP has observed that there is no clear favorite party to scoop the 2016 election in a few months.

Speaking in an interview FODEP Executive Director McDonald Chipenzi says the current political atmosphere does not pit any party as a clear favorite as parties have continued to loose seats in their traditional strong holds.

Mr. Chipenzi noted that political parties were jostling for popularity in what they considered to be their strongholds but that the recent by elections have shown that anything is possible as the main political parties lost and won seats in the areas they were not expected to win hence making it difficult for one party to claim that it is a front runner for the 2016 elections.

He explained that political dynamics change hence the need for political parties to hernias their popularity and ensure that their parties do not only maintain electorates who voted for them but ensure that their parties attract new electorate to grow their numbers.

He further states that currently it is a wait and see game for all political parties as the current political scenario makes it hard for any one party to be the out right victors in 2016.

Mweene: Zambia ready for another away test

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Kennedy Mweene says the Cape Verde loss is not haunting the team who are preparing to complete back-to-back away qualifier’s.

Zambia travel to Niger on Saturday a month after losing 2-1 away to Group F leaders Cape Verde on September 10.

“You know when you are under pressure you cannot perform but for us it is mental. We are not panicking because we know that once we start panicking then things won’t work,” Mweene said.

“It is not right to say our away form is not OK we only lost to Cape Verde.

“We are not looking at negative things all that happened in the past we have forgotten about it and focused on the next game which is Niger home and away.”

Zambia must beat Niger this Saturday to get their Group F qualifiers back on track after picking up just one point from their opening two games.

Chipolopolo are third with one point, tied with hosts and bottom placed Niger.

Cape Verde lead Group F with a maximum six points , four more than second placed Mozambique who host them in Maputo this weekend.

Dutchman Labohm hired to help Janza

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Dutchman Nico Labohm has been hired to help under-fire Zambia coach Honour Janza.

Labohm arrived in Zambia on Tuesday morning and was unveiled at a press briefing at the National Heroes Stadium in Lusaka just before afternoon team training by FAZ president Kalusha Bwalya.

Kalusha said Labohm will work under Janza as his assistant.

“We have added one more coach to the technical group Mr Nico Labohm from Holland he is a very experienced instructor and coach,” Kalusha said.

“He has been to Hong Kong, Suriname, Ukraine, South Africa and Tunisia.

“He has been here in Zambia before and it was important for us find somebody who knows a little about the terrain and the situation that we are in.

“We are in a privileged position as Zambia in my opinion because of the name that we have. Mr Nico Labohm thought duty-bound to come at short notice to help the team and he will come to add and subtract and do everything possible that he knows for the betterment of the team.”

Labohm’s deal is short term and will expire at the end of the 2015 Africa Cup Group F qualifiers on November 19 when Zambia play their final game against Cape Verde at Levy Mwanawasa Stadium in Ndola.

Uhuru Kenyatta travels to Hague as an ordinary citizen

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President Uhuru Kenyatta and First Lady Margaret Kenyatta check-in at the Kenya Airways counter through terminal 1A shortly before departing J.K.I.Airport for the ICC status conference at the Hague.Coutesy of The Star
President Uhuru Kenyatta and First Lady Margaret Kenyatta check-in at the Kenya Airways counter through terminal 1A shortly before departing J.K.I.Airport for the ICC status conference at the Hague.Coutesy of The Star

Uhuru Kenyatta arrived at JKIA early Tuesday morning for a first class business KQ flight to the Netherlands ahead of his ICC trial status conference scheduled for Wednesday.

Kenyatta arrived at the airport at 8.30am accompanied by his wife Margaret Kenyatta and their daughter Ngina.

He did not have his regular security detail but had a few bodyguards according to sources within the travelling party.

Kenyatta additionally used the regular VIP lounge and not the presidential lounge reserved for the president at the airport.

The Kenyan president, Uhuru Kenyatta, has temporarily stepped down as president while attending a hearing at the international criminal court this week, he said in a national address on Monday.

Kenyatta faces charges of crimes against humanity at the ICC, which is based at The Hague, Netherlands, over allegations that he helped instigate violence that followed Kenya’s December 2007 presidential election, when more than 1,000 people were killed.

The court ordered him to attend a status hearing on Wednesday, denying his request that he participate by video. The hearing will be the first time a sitting president has attended an ICC session, a milestone Kenyatta’s political supporters have urged him to avoid.

Seeking to bypass that notation in history, the president said on Monday that he would invoke a hitherto unused article of the constitution that will see the deputy president, William Ruto, temporarily become president.

The short-term abdication is Kenyatta’s way of fulfilling the court order while insisting that he is attending the hearing as a private citizen.

In his speech, Kenyatta maintained his innocence, noted that the ICC prosecutor had been admonished by the court for her faltering case and recalled that the African Union had passed a resolution granting immunity from international tribunals for sitting presidents.

Kenyatta also claimed that Africa’s “century of exploitation and domination” by the west was continuing. Critics of the ICC note that it has only prosecuted Africans.

Lastly, Kenyatta said the accusations he faced occurred before he became president.

“It is for this reason that I chose not to put the sovereignty of more than 40 million Kenyans on trial since their democratic will should never be subject to another jurisdiction,” Kenyatta said.

“Therefore let it not be said that I am attending the status conference as the president of Kenya,” he continued. “Nothing in my position or my deeds as president warrants my being in court.”

George Kegoro, executive director of the Kenyan chapter of the International Commission of Jurists, praised the president for following the rule of law. If Kenyatta had refused to go, he risked an international arrest warrant and international condemnation or economic sanctions against Kenya.

“If he had refused it would have destroyed our economy. The economy would not have recovered during his tenure,” said Gitobu Imanyara, a lawyer and former legislator.

The case against Kenyatta appears to be collapsing as witnesses refuse to testify or recant their statements. A once-rocky relationship with the US and Europe also seems to be improving.

Kenyatta, Ruto and Joshua arap Sang, a Kenyan radio presenter, all face charges of crimes against humanity before the ICC for inciting massive violence following the 2007 election. That violence – often ethnically motivated – killed more than 1,000 people and uprooted 600,000 from their homes.

Kenyatta has appeared before the court before but was not president at the time.

Kenyatta and Ruto, who were on opposing sides of the 2007-08 conflict, formed a political alliance that won the presidency and a majority in parliament after they were indicted for the crimes against humanity. They used the ICC charges as a rallying cry of us v the world.

PF rival factions exchange punches in the presence of Edgar Lungu

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File:PF cadres wielding their party symbol outside the Lusaka magistrate court
File:PF cadres wielding their party symbol outside the Lusaka magistrate court

PATRIOTIC Front (PF) rival parties clashed in Livingstone on Monday afternoon in full view of party Secretary General Edgar Lungu who in turn condemned the violence and called for tolerance.

Some party officials were seen tossing and blocking their colleagues from welcoming Mr Lungu as he arrived at Livingstone Civic Centre to greet party supporters.

Those who were blocked resisted the pressure and pushed their way inside and this ultimately resulted in exchange of punches.One official, who was accused of being in former Secretary General Wynter Kabimba’s camp, was overheard questioning where her colleagues
were when the PF was struggling in the opposition.

Her remarks further incensed other officials who later descended on her and tossed her around inside the Civil Centre.

[pullquote]Those of who still want Mr Kabimba to remain as party Secretary General should change or sit at the bench to just watch because I am in charge now,” Mr Lungu said.[/pullquote]

The police tried to separate the two rival parties but the officials continued tossing each other in the presence of Mr Lungu, PF Southern Province chairperson Daniel Munkombwe and PF Livingstone Member of Parliament Lawrence Evans among others.

Mr Evans could not hold his emotions and tears while pleading with party officials to promote love and unity.The tiff only ended when Mr Munkombwe started leading in singing the
national anthem while raising his fist and the two parties also joined in singing with raised fists and ultimately suspended their conflict.

And addressing the party supporters after calm retained, Mr Lungu said the example of behavior he witnessed was totally unacceptable within the ruling PF.Mr Lungu said PF was a peaceful and disciplined party and hence there was need for members to tolerate each other.

“What I have seen here in Livingstone is a semblance of anarchy. As newly appointed PF Secretary General, I will not allow this lawlessness.The reason why I will not allow anarchy is because President Michael Sata told me to grow the party so that we bounce back into power in 2016,” he said.

Mr Lungu announced that PF would soon hold a provincial conference in Choma for two days where various party matters would be tabled.He also condemned some PF officials who were questioning where their colleagues were when PF was struggling in the opposition saying both new and old members were welcome in the ruling party.

Mr Lungu said politics was about numbers and hence there was need to recruit more members to enable the ruling party grow.He also urged all PF members to accept the fact that he was currently the party Secretary General while President Sata was at the top of the
ruling party.

“Those of who still want Mr Kabimba to remain as party Secretary General should change or sit at the bench to just watch because I am in charge now,” Mr Lungu said.

He also said he recently met Mr Munkombwe and PF media director Brian Hapunda over the differences they had and reconciled the two.

Speaking at the same gathering, Mr Munkombwe said the party in Southern Province was peaceful and there were only few people who were promoting violence.Mr Munkombwe, who was physically disturbed with what transpired during the meeting, urged all party members to work together through established party structures instead of hijacking the party.

President Sata called upon to warn mining companies

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President Sata being welcomed by Speaker of the National Assembly Dr Patrick Matibini during the opening of parliament on September 19, 2014 -Picture by THOMAS NSAMA
File:President Sata being welcomed by Speaker of the National Assembly Dr Patrick Matibini during the opening of parliament on September 19, 2014 -Picture by THOMAS NSAMA

Republican President Michael Sata has been called upon to issue a stern warning to mining companies intending to lay off workers using the excuse of the withheld VAT refunds.

Christian Against Poverty in Zambia (CAPIZ) Executive Director Evangelist Gregory Chileshe told QFM News in an interview that President Sata should issue a statement warning all mining companies threatening the jobs of miners.

Evangelist Chileshe said as the country continues to strive in meeting the Millennium Development Goal (MDG) on reducing extreme poverty by 2015, such moves should not be tolerated considering that they cannot help in attaining the MDGs.

He also appealed to investors in the mining sector to exercise patience with government with regards the issue of the VAT refunds.

Evangelist Chileshe further encouraged government to be above bold and not succumb to tactics of arm twisting some mining firms are employing.

He added that Zambia should use its natural resources wisely by reducing the high poverty levels in the country.

Evangelist Chileshe said it is for this reason that Zambians, more especially miners who are on the edge of losing jobs, are looking up to President Sata to issue a decisive statement pertaining to the threats by mining companies.

Meanwhile, opposition Alliance for Better Zambia (ABZ) President Father Frank Bwalya has advised government to increase its stake in the mining companies.

Father Bwalya is also of the view that repossessing the mines is the solution to the problems arising in the mining sector.

Miles Sampa proposes the setting up of a Student Trust Bank

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DEPUTY Minister of Commerce, Trade and Industry Miles Sampa
DEPUTY Minister of Commerce, Trade and Industry Miles Sampa

Commerce Deputy Minister Miles Sampa has proposed the formation of a Student Trust Bank to address the challenges on student bursaries.

Mr Sampa said the Student Trust Bank will hold funds for and on behalf of current and future first year students. He said a Bank approach as opposed to an ordinary Trust fund is better given that a Trust Bank will be able to multiply or grow the seed capital faster as it will offer various commercial services like FOREX and funds transfers.

Mr Sampa said the Bank would be managed by a Board of Trustees that would include students and former students.

“All former University of Zambia (UNZA) or Copperbelt University (CBU) former students or graduates must deposit K100, 000 into this bank right away, in the near future or when able. I say this because nearly all former students benefited from the government bursary or sponsorship funds which have not been repaid despite having signed loan forms or undertaking to pay back after graduation,” Mr Sampa said.

“Why the amount K100, 000”? My calculation is that the net present value of government sponsorship of all former graduates is about that much. For example, if we take graduates of 1984; the annual fees then were around K25. The average student spends about 4 years in university before they graduate. Therefore a total of about K100 was spent by the government of the day on that student. If we translate K25 of 1984 to 2014, my estimation is a net present value of K25, 000.”

He added, “In other words, K25 in 1984 would buy one a small basic car (Spacio type) and to buy the same car in 2014, one needs K25, 000. A graduate would have had that amount as student sponsorship per year and thus equals to K100, 000 as total for the entire average 4 years spent at the University. Once this student debt is crystallized or called in now, it means all well-meaning graduates from UNZA and CBU owe the Zambian Government K100, 00.”
Mr Sampa who is also Matero PF MP said the new university entrants can benefit from this and not miss out on higher education.

“I understand that not all graduates can afford the repayment as some don’t have jobs yet or are not yet in well-paying jobs – fair enough. This category of graduates can pay in due course through a small percentage yearly. My keen interest is on those graduates that cannot afford to pay this instant as can be attested by any reasonable citizen.”
“Off the cuff, I can list 10 former UNZA students that can pay K100,000 each and raise a total of K1,000,000 into this proposed Student Trust Bank so it opened immediately to the urgently address the student needs out there.” My immediate 10 are:

1. Dr Tukiya Mabula Kankasa – Deputy Governor BOZ
2. Chisha Mwanakatwe- Director BOZ
3. Dr Francis Chipimo Director BOZ
4. Mr Joseph Chikolwa MD ZNBS
5. Mr Saviour Chibiya MD Barclays Bank
6. President Mike Mulongoti
7. President Edith Nawakwi
8. President Hakainde Hichilema.
9. Dr Patrick Matibini – The Speaker
10. Miles Sampa, MP (student advocate).

I am tempted to list another list of 10 so we have K2,000,000 raised for this Student Trust Bank.

1. Judge Mumba Malila -Supreme Court
2. Mr Musa Mwenye -Attorney General
3. Mr Mutembo Nchito-DPP.4.
4. Hon Felix Mutati-MP
5. Mr Frazer Chishimba- Lawyer
6. Mr Martin Simumba- Businessman
7. Hon Cornelias Mweetwa-MP
8. Hon Garry Nkombo- MP
9. Hon Chifumu Banda-MP
10. Dr J.Ngwati Phiri – Education Minister.

Mr Sampa said once all the above 20 former graduates suggested above pay up voluntarily, this bank can be operational instantly and rekindle hope for all those students whose dreams may have been shattered when denied bursaries.
“Advance apologies to any of those listed above if offended but if not, please give me a call so we can do what we can to help. Any other former UNZA or CBU graduates touched by the current student predicament are welcome to join the initiative as well. We can easily raise the list of former University students willing to 100 and raise K10, 000,000 so we can make this idea a reality today and not tomorrow,” Mr Sampa said.

A look behind the Kwacha Trading on the JSE

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JSE

On October 3rd, 2014 the Kwacha, The Nigerian Naira, Kenyan Shilling and the Zambian Kwacha Friday made their début on the Johannesburg Stock Exchange (JSE), the largest and most liquid exchange in Africa. A move regarded as a Milestone by Government and the media alike. However, there seems to be a lot of confusion among Zambians about what this really means. So we answer some frequently asked questions behind this initiative and dispel some myths along the way.

The Zambian Kwacha started trading on the JSE on Friday

What is actually being traded?

The forex market on the JSE is not a currency bureau, where people can buy and sell the Kwacha. This is a futures market, where investors and businesses that import or export can buy Currency Options or Currency futures, which belong to the derivatives market.

  • A Currency Option (CO) is a contract that gives the investor, the right, but not the obligation, to buy or sell a currency on a future date at a fixed price. A variation of a currency option is called a Put Option, that gives the investor a right to sell a currency at a future date at a particular price.
  • A Currency Futures (CFs) Contract is an agreement that gives the investor the right to buy or sell an underlying currency at a fixed exchange rate at a specified date in the future.
    These instruments are primarily used as hedging mechanism to protect investors and businesses from the adverse effects of currency fluctuations. “The message is simply: hedge your foreign exchange risk on the JSE and go and do your business,” according to Andrew Gillespie, head of futures at Tradition Futures, which partnered with the JSE and Barclays bank to launch the platform.

Is the Zambian currency now being held as a reserve in South Africa?

The Zambian currency will not actually be held in South Africa or on the exchange. This is a derivative, which is a special type of contract that derives its value from the performance of an underlying entity. In this case that underlying entity is the future value of the kwacha that is being traded. Therefore all contracts are based off the value of the kwacha, but the kwacha is never actually held, so the kwacha will not all of a sudden appreciate because of a new demand for kwacha caused by the JSE. In fact the contracts are cash settled in Rands and no physical delivery of the foreign currency ever takes place. So if a Zambian importer buys a currency option on the JSE and the kwacha declines in value, making their imports more expensive, that importer will be compensated the difference in value in Rands.

Why Zambia, why Africa?

The parties behind this initiative include the JSE, Barclay’s Africa and Tradition Futures, A Swiss financial company that is one of the world’s largest interdealer brokerage firms (A company that facilitates transactions between financial institutions). Strategically, this is a pilot initiative, therefore three countries from each region (except North Africa) needed to be selected, Nigeria and Kenya are the economic powerhouses in their respective region, while Zambia has boasted stellar economic growth over the years and has become one of the leading destinations for South Africa’s exports, not to mention the number of South African retailers trading in kwacha, but need to repatriate their profits in Rands back to their home country. There are many pundits that feel, that Africa is the next big emerging market and this is a strategic step by two huge financial powerhouses in Barclays and Tradition Futures to further position themselves in the African financial market and a move by the JSE to increase its visibility to the international capital markets. Therefore if these initial 3 listings are considered a success, more African currencies will follow.

Who make Money on this initiative?

There are three parties involved in these types of transactions:

  1. The party buying the instrument- which are usually investors, which is a very broad definition, but the bulk will be financial institutions, and businesses (small and large) that import and export in Kwacha. Most large businesses have entire finance departments that work on currency hedging.
  2. The JSE, which earns fees from listing the currency
  3. The Counterparty, which again is the JSE (though it would be no surprise if there are other parties involved behind the scenes). The counterparty is the party offering the contract and receiving the fee from the party buying the instrument. Think of the counterparty as the Insurance Company, they take premiums and if need be they are the parties responsible for paying the loss should one occur.

How will this help the Zambian Economy?

Directly, this will not help the Zambian economy as this will be mainly utilized by businesses and investors for their hedging purposes.

Indirectly they may be some benefits to the Zambian economy; one such area, is it may help provide additional confidence to investors making investments into Zambian money markets. For example, there are many institutional investors that like the interest rates of Zambian treasury bills (north of 20% over the last few months), but will not make the investment because of the currency risk associated with the investment. That is why we have seen over the last few months, the Bank of Zambia Treasury auctions being heavily under-subscribed, but the Eurobonds in U.S dollar being oversubscribed. Now that the currency can be hedged, you may see these types of investors consider investing in Zambia.

However there are still some variables that will impact their investment decision like the price of the contract. Without getting into the complex details of how derivatives are priced, the simplest manner will be to think of the kwacha as one unit, the premium paid is then a percentage of that unit. If that percentage is 10%, then investing in the Zambian money market becomes less attractive because 10% of your 20% yield is going towards hedging the currency. As the volatility of the currency increases or decreases, the price is adjusted accordingly to ensure the counter party is making money.
The durations of the contracts are 3 months to 12 months, so this will have very little bearing on the decision to place Foreign Direct Investment into Zambia, where capital project into roads and manufacturing plants, for example, take years.

Will this lead to speculation that can hurt the Zambian Kwacha?

There are forex markets are all over the world and you always have speculators who use CFs to make a profit on short-term movements in currency prices and Arbitrageurs who use them to profit from the price differentials of similar products in different markets. So you will see speculations against the Zambian kwacha occurring and this type of market allows speculators to amplify their bets, as they can be done without actually needing to have the kwacha on hand (a term called leverage). While, intentional sabotage of the Zambian kwacha to make profits on the JSE is possible, it is highly unlikely especially over a long period of time, because of the number of complex mechanisms that would need to occur, not to mention, the more volatility in the kwacha, the higher the premiums will become or the counterparty will stop selling the kwacha contracts all together, because for every party that makes a profit, there is another party taking a loss. In an open market, products and prices always correct themselves to meet the appropriate levels of supply and demand.

By Mawano Kambeu

About the Author: Mawano Kambeu is an Entrepreneur, Finance and Investment Specialist now living in Zambia, but spent 10 years working in the United States as an Investment specialist for one of the largest financial companies in the world. Mawano has a master’s degree in Finance from Fairfield University and held numerous securities licenses in the U.S.

MMD special assistant denies saying it will be foolish for RB to come back

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President Rupiah Banda address a public rally at Mulambwa Ground in Mongu
File: Former President Rupiah Banda addressing a public rally

Movement for Multiparty Democracy MMD special assistant to the party president Raphael Nakacinda has denied issuing the statement which has quoted him as saying that it will be “foolish for former republican president Rupiah Banda to get back to into politics.”

Mr. Nakacinda says the statement attributed to him is erroneous and a deliberate misrepresentation of facts as he did not at any point say the things attributed to him and that he has the out most respect for the former president whom he says earned himself the respect of the entire global from the way he handed over power after loosing the 2011 elections.

He explained that what he stated in his statement was that it will be foolish for the former ruling party to repeat what is properly documented in the country’s history of trying to go back to the former head of state to lead the party after loosing an election as a clear example for everyone to see is there in the name of UNIP.

He said the MMD will not go the UNIP way of doing things as it has learnt lessons from what happened to the fellow former ruling party and that the party is in the process of rebuilding itself hence will not dwell on the past.

“The story is a misrepresentation of what I said, our position on RB is that history has a tendency of repeating itself and if history is well documented there are people who are part of that history you can draw lessons and wisdom from in this case MMD has found itself at the stage of rebuilding itself and in this case it will be very foolish for the party to repeat the mistakes of UNIP as regards recalling the former head of state back into politics,” Mr. Nakacinda explained.

He added: ” we will not handle the matter the way UNIP handled the matter because you do not expect to do the same thing and expect a different result that is the statement I issued yesterday not to say that it will be foolish of RB to come back into politics because that is not our choice, that is RB’s choice.”

Mr. Nakacinda also said that people should not assume that the calls for the former head of state to came back into politics are synonymous with MMD as that is not the case.

“Even to try and assume that the calls for RB to comeback into politics is synonymous with the MMD I think that is an era. The comment I was asked to make is whether or not we are ok in terms of RB going back into politics, we have no difficult with that the only thing that RB has built for himself and this nation is a treasurable reputation globally which must be guarded jealously by all well meaning Zambians.

“It is for this reason that Dr. Mumba has withdrawn himself from any discussions todo with RB’s comeback to politics because many things must be put into consideration and because of the respect he has for RB and he would rather any matter regarding this topic is done in private and away from the media, that is the story which was communicated yesterday and the one appearing to day is malicious and we demand that it is retracted or with drawn immediately,” Mr. Nakacinda said.

ZRA loses K4 million case against former civil servants

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ZRA

The Zambia Revenue Authority (ZRA) has lost an appeal in the Supreme Court against the Lusaka High Court judgment which ruled that the authority should refund 3,525 former civil servants money it wrongfully deducted from them.

Following the ruling, ZRA would have to refund the former government workers who left employment under the Voluntary Separation Scheme in 1999 over K4.2 million wrongfully deducted from their terminal benefits.The money would be refunded with interests, costs and any other relief.

In her ruling, Supreme Court Judge Hildah Chibomba, who sat with justices Elizabeth Muyovwe and Florence Lengalenga, said the appeal by ZRA lacked merit and she referred the matter back to the deputy registrar for assessment.

She said the High Court was entitled to conclude as it did, that sections 87,108 and 113 did not have any application to that action.

Ms Justice Chibomba said the lower court was also on solid ground when it referred the matter to the deputy registrar for assessment as clearly, there was a dispute, to which the ZRA was a party, over the computation of the amounts owed which needed to be resolved.

“We therefore, find no basis to disturb the findings of the learned judge. This one ground of appeal, therefore, fails,” Ms Justic Chibomba said.

“For reasons stated above, this appeal is dismissed for lack of merit and the matter is referred back to the deputy registrar for assessment. Cost in this court and in the court below are for the respondents to be taxed in default of agreement.”

When the former workers were separated from government in 1999, they were paid special severance package which ZRA taxed although they were exempted from tax under part IV of the second schedule of the Income Tax act. The former civil servants took the matter to court against ZRA.

In January 2013, the two parties signed a consent order in which it was mutually agreed that the judgment in default of appearance and defence be set aside and that the workers be paid according to their individual assessments.

After change of advocates, the former government workers complained of under payments after ZRA declined to pay on ground that the claims had been re-assessed and they were refunded through their previous advocates.ZRA objected and filed a notice to raise preliminary issues, urging the court to set aside the application for irregularity and that it was its contention that the assessment ought to be done by the authority and not the court.

The deputy registrar dismissed the preliminary objection and ordered that the matter proceeds for assessment on account that ZRA, as a party to the dispute, could not assess the extent of its own liability.

ZRA appealed to the High Court in chambers advancing five grounds among them that what the former government workers had been claiming was ultra vires the consent order and untenable at law, and that the learned deputy registrar had not taken into account the fact that the workers had already been paid their refunds.

But the former civil servants argued that the deputy registrar was on firm ground when he ordered that the assessment should proceed.

After considering the submissions, the High Court judge dismissed all the five grounds of appeal and found that since the matter had been brought before court it was well within its jurisdiction to conduct the assessment. The judge concluded that as argued by the workers, sections 87, 108 and 113 of the Income Tax Act were irrelevant, as the provision related to matters before they became subject of court proceedings.

The court conceded that the deputy registrar had not addressed the issue of statutory limitation but that on the basis of his findings, the court was confident that the deputy registrar would have reached the same conclusion.

In the Supreme Court, Ms Justice Chibomba said the court noted that there were submissions relating to payment of money into court and that the court had deliberately not given its opinion as it did not find any evidence on the record.

She said the appeal by ZRA lacked clarity on who was to carry out the assessment, when it should be conducted and procedure to follow in the event that the parties disagreed over the assessments. The former civil servants contended that the fact that ZRA had paid into the court K2,783,315.25 was not only an admission of liability, but also, a partial fulfillment of their claim.
On the other hand, ZRA argued that contrary to the former civil servants’ claim that that they were exempted from paying tax on ground that there was no law that provided for taxation of payment made to employees who opt for voluntary separation, section 14 of the Income Tax Act made it mandatory for all income received from any source to be taxed.

[DailyNation]

Mpombo begins his 9 month jail sentence

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File: George Mpombo in his jail cell in Ndola after he was jailed for bouncing a cheque
File: George Mpombo in his jail cell in Ndola after he was jailed for bouncing a cheque

CONVICTED People’s Democratic Party (PDP) president George Mpombo yesterday started his prison life with police effecting the bench warrant issued last Friday, resulting in him spending a night at the Lusaka Central police after losing his appeal against a nine-month sentence.

And Mpombo yesterday complained to police officers at Central Police that he had no blankets and wondered how he would spend the chilly night.

On Friday, the Lusaka High Court dismissed Mpombo’s appeal to have his nine months sentence quashed because it had failed in its entirety and that the subordinate court conviction and sentence should be upheld.

The Lusaka Magistrate Court last year sentenced Mpombo to nine months imprisonment for theft by public servant, forgery and uttering a false document.

Prior to his detention yesterday Mpombo was taken to the High Court by police officers for other formalities and later taken to Lusaka Central Prison between 14:30 and 15:00 hours.
Lusaka Province police commissioner Lemmy Kajoba confirmed the detention of Mpombo and said that he would be taken to the High Court yesterday.

“Mr Mpombo is in our cells on orders from the court for contempt. It is not a police matter, it is a matter coming from the court. There are two issues, the bench warrant and the sentence slapped on him. What would happen now is that he (Mpombo) would be produced before the court on Monday,” Mr Kajoba said.

He said he was not sure whether Mpombo surrendered himself to the police or not but was driven to Central Police by police officers.

“I don’t know whether he surrendered himself or he was brought here. It’s like he told some journalists that he surrendered himself, but I am not sure. I only saw him (Mpombo) when he was brought to Central Police and officers locking him up because prisons don’t take in prisoners over the weekend,” Mr Kajoba said.

And speaking in an interview from the police cell, Mpombo who did not want to say much said it was okay in the cell.

Mpombo, who looked shocked in the cell with his traditional long beard, was clad in a blue jean and a checked shirt.

Police officers at Central Police pleaded with Mpombo’s relatives who went to visit him to get him some blankets because the night would not be friendly to him.

Earlier in the morning, Mpombo bragged that he was in town relaxing before he enters the prison gates yesterday.

He said he was not expected to meet his lawyer as opposed to what he said on Saturday because he was advised that there was no need to rush for a meeting.

Mpombo said he had nothing to do yesterday apart from relaxing in town and have a nice meal while waiting to go to jail yesterday.

“As for now I will just be in town relaxing and waiting for tomorrow to go to prison,” Mpombo said.

Meanwhile, former deputy Minister of Transport and Communications under the MMD government, Alfred Ndhlovu, said Mpombo should blame himself for failing to retire government travel imprest.

“Many of us were ministers and came out clean and smart of travel imprest issues because we accounted and retired the imprest as required by regulations. Permanent secretaries are controlling officers who usually and politely ask ministers to account for the travel imprest. This is a shame, I pity him,” Mr Ndhlovu said.

Government determined to ensure Zambians get the constitution in the shortest possible time-Lungu

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Edgar Lungu
Edgar Lungu

GOVERNMENT is determined to ensure that Zambians get the constitution they deserve in the shortest possible time, Justice Minister Edgar Lungu has said.

Mr Lungu said his Ministry was working round the clock to ensure that it put all the logistics in place and get Government approval to release the document.

Mr Lungu was speaking in Livingstone at Chrismar Hotel yesterday when he officially opened the five-day 2014 Legal and Business Conference hosted by the Ministry of Justice under the theme ‘Enhancing Networking among Lawyers and Other Professionals’.

The main objectives of the Conference is to create a platform for networking and general knowledge sharing as well as to sensitise members of other professions on the work conducted by State Advocates and other lawyers.

“Allow me to take advantage of this gathering to announce that Government is determined to ensure that Zambians get the constitution they deserve in the shortest possible time.

If it was possible, we would have done it for you to have the constitution as you celebrate the Golden Jubilee on October 24, 2014.

Alas, the process is full of complexities such that it won’t be possible to give you the constitution on October 24 but suffice to say that the constitution is coming,” Mr Lungu said.

He said the Government had already met other stakeholders and consulted those who had not voiced their views to promote harmony and peace in the country.

Mr Lungu said the whole constitution making process should be owned by the people of Zambia inclusive of the proposed articles.

“We want stakeholders to start talking about the contents immediately we release the draft constitution.

In my discussions with my colleagues, I have noted that very few people have paid attention to serious issues in the draft constitution especially on governance issues in Zambia,” Mr Lungu said.

He also wondered how many Zambians knew the cost of the current governance especially in view of a proposal in the draft constitution to have regional assemblies in 10 provincial headquarters.

“We have a proposal to have regional assemblies in the 10 provincial headquarters and my immediate reaction to that do we know the cost of current governance in Zambia?

My answer is that it will be more expensive to operate regional assemblies. Since we don’t know whether the economy will be buoyant enough to sustain this governance system, we may go bankrupt as a country and those are my personal views,” Mr Lungu said.

He said he had not talked to the Speaker of the National Assembly Patrick Matibini or the Clerk of the National Assembly Doris Mwinga on whether it would be very cheaper to operate Parliament in the format being proposed in the draft constitution.

Mr Lungu said the legal fraternity represented one big family whether one was in Government service or in the private sector.

He said there was a lot that Government lawyers could learn from their colleagues in the private sector and vice versa.

“Both lawyers in the public and private sector should have one purpose to serve and this is the administration of justice.

The issue of ‘them’ and ‘us’ should therefore not arise. We should work together as one big family comprising brothers and sisters,” Mr Lungu said.

He also expressed hope that the recent dispute between Konkola Copper Mines (KCM) and Copperbelt Energy Corporation (CEC) was currently over.

Speaking at the same gathering, Ministry of Justice Permanent Secretary responsible for Administration Josephs Akafumba urged the participants to take the proceedings of the conference seriously as a fertile ground for knowledge.

Mr Akafumba said his Ministry had, since 2005, been working on promoting networking ad team building among State Advocates or lawyers from both the private sector and public sector through the annual State Advocate Workshop.

High Court Judge William Mweemba also presented on dispute resolution as a tool to resolving disputes in Zambia.

Government objects to plans by Glencore to retrench 170 employees

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Mines, Energy and Water Development Minister Christopher Yaluma (right) and his Deputy George Zulu (centre) inspect the Lusaka fuel storage depot with Lusaka Province Minister Obvious Mwaliteta before commissioning of the plant
Mines, Energy and Water Development Minister Christopher Yaluma
(right) and his Deputy George Zulu (centre) inspect the Lusaka fuel
storage depot with Lusaka Province Minister Obvious Mwaliteta before
commissioning of the plant

THE Government has objected to plans by Glencore-owned Sable Zinc Mine in Kabwe to retrench 170 employees following the placing of the company on care and maintenance due to the withholding of K64 million VAT refund by the Zambia Revenue Authority (ZRA).

Mines, Energy and Water Development Minister Christopher Yaluma said the Government was not going to accept the planned move by Sable Zinc to lay off the miners.

Mr Yaluma, who was commenting on the pending job losses at Sable Zinc, said as far as the Government was concerned, miners at the Glencore-owned company were guaranteed their employment.

“There is procedure to be followed when retrenching workers and as far as I am concerned, that procedure which requires a company to first of all inform the Ministry of Labour before down-sizing labour has not been followed by Sable Zinc,” Mr Yaluma said.

“So like I have highlighted and indicated, we are not going to accept any job-cuts at Sable Zinc because we don’t know why they want to do that.”

The minister called on Sable Zinc not to play games with the Government over matters of employment.

“We have guaranteed people employment and so not until they share with us why they want to retrench, nobody is going to be retrenched,” he said.

Mr Yaluma said Sable Zinc should be aware of the needed steps in labour circles that required employees to be notified way in advance before they could be retrenched in order for them to prepare for it.

“As it is, they can’t announce their intention to retrench workers just like that,” Mr Yaluma said.

When contacted, Labour and Social Security Minister Fackson Shamenda also expressed ignorance of the pending job-cuts at Sable Zinc.

“I have not been briefed yet and I have just been hearing about it, so I can’t make a comment for now,” Mr Shamenda said.

A letter signed by Sable Zinc general manager David Littleford obtained by the Times at the weekend revealed that the company was in the process of retrenching 158 unionised employees and 12 management staff next month to reduce costs of running the institution.

This is in view of the enforcement by ZRA of rule 18 on value-added tax (VAT).

It would be ‘foolish’ for the MMD to allow RB to bounce back-Nakachinda(updated)

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Former Zambian President Rupiah Bandawith Malawian Vice-President Saulos Chilima
Former Zambian President Rupiah Bandawith Malawian Vice-President Saulos Chilima

IT would be ‘foolish’ for the MMD to allow former President Rupiah Banda to bounce back into active politics, MMD special assistant to the party president Raphael Nakacinda has said.

He said that the matter surrounding Mr Banda’s coming back will be handled maturely. Mr.Nakacinda was speaking yesterday in an interview in reaction to Mr Banda’s statement that he is consulting on a possible return to active politics and that he has the right to do so.

He said that enemies of the MMD who are determined to see the party destroyed are the ones calling on Mr Banda to return to active politics.

Mr.Nakacinda said Mr Banda should be respected as he has immensely contributed to national development.

Former Deputy Minister of Transport and Communication in the Chiluba government, Alfred Ndhlovu said Mr Banda has the right to come back to politics.

Mr Ndhlovu, who is also MMD publicity secretary, said Mr Banda has a democratic and constitutional right to return to politics. “Rupiah Banda was just finishing Mwanawasa’s three years, the constitution allows him, he did not serve his two terms,” he said.