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Chief Kanongesha happy with mobile health services

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SEVERAL Luanshya residents waiting their turn to get medicine from a pharmacist dispensing medication from a mobile pharmacy at Ndelela Basic School in Mikomfwa Township where the Ministry of Health conducted mobile hospital services
SEVERAL Luanshya residents waiting their turn to get medicine from a pharmacist dispensing medication from a mobile pharmacy at Ndelela Basic School in Mikomfwa Township where the Ministry of Health conducted mobile hospital services

A traditional leader has praised government for sending the mobile hospital to his area to offer quality specialized services.

Senior Chief Kanongesha of the Lunda speaking people of Mwinilunga district in North-Western Province says over 1,000 people in Kampemba, Luawu, Lwakela, Nsanakudya and Nyakaseya areas benefited over the weekend from the government’s policy under the Ministry of Health.

Senior Chief Kanongesha says some men and women were tested for cervical cancer and prostate cancer while some shunned because of what he termed traditional myths.

He was speaking in an interview with ZANIS in Lusaka yesterday.

The Senior Chief, who presides over Mwinilunga and the newly created Ikelenge districts, said this is the very first time the mobile hospital had reached remote areas like his since the mobile hospital was launched in 2010.

“I commend government for dispatching the mobile hospital to service my area. Most of the people were treated and benefited from the services while a few shunned for reasons known to themselves,” he said.

On shunning, Senior Chief Kanongesha said he would engage district health management boards in the two districts to conduct vigorous sensitisation programmes to educate the villagers on the importance of screening.

The traditional leader appealed to the men and women in his chiefdom against shunning government programmes as they frustrate government efforts of attaining the Millennium Development Goal on health.

UN honors two fallen Zambian peacekeepers

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The United Nations (UN)has honored Major Alfred Banda and Chief Inspector Ebert Sianyona with the Dag Hammarskjold medal for their gallantly.

This is contained in a statement to ZANIS in Lusaka today by First Secretary for Press and Public Relations at the Permanent Mission of Zambia to the UN Chibaula Silwamba.

Mr Silwamba said the two died last year while serving with the UN-African Union Hybrid Operation in Darfur (UNAMID).

He said Zambia currently contributes 142 military and police personnel to six UN peacekeeping operations, with the largest number serving in Darfur.

UN Secretary General Ban Ki Moon, in a message marking the international day of UN peacekeepers, said 106 peacekeepers died in 2013 while serving in UN operation worldwide.

“We mourn the passing of every one of these courageous individuals. We grieve with their friends and families and we recommit ourselves to ensure that their contributions to the cause of peace will never be forgotten,” the UNJ Chief said.

Mr. Silwamba said Mr. Ban officiated at the wreath-laying ceremony in honour of the fallen peacekeepers and Zambia UN Mission Military advisor, Brigadier General Erick Mwewa, attended the solemn ceremony.

Edith Nawakwi adds her voice to people calling for the resignation of Bank Governor Mike Gondwe

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FDD leader Edith Nawakwi addressing the press
FDD leader Edith Nawakwi addressing the press

Forum for Democracy and Development (FDD) leader Edith Nawakwi has joined calls by various stakeholders for Bank of Zambia Governor Mike Gondwe to resign.

Ms. Nawakwi said that Dr. Gondwe has lamentably mismanaged the country’s economy as evidenced by the Kwacha’s poor performance against major currencies.

Speaking during a Media briefing, Ms. Nawakwi who is former Finance Minister said it is plain truth that Governor Gondwe lacks the basic understanding of the economic matrix and how the financial market operates.

And Ms. Nawakwi has predicted that the decision by the Energy Regulation Board to give ZESCO a go ahead to increase electricity tariffs by 24% will result in hikes of prices of fuel and eventually worsen the poverty situation many households are living in.

The FDD President has also called on the PF government to reverse the Wage Freeze which it imposed on public service workers that has resulted in 10 public service workers’ unions to declaring a dispute with the government.

And Ms. Nawakwi says the government through President Michael Sata and the Zambia Revenue Authority to back date the debt that KCM owes Zambia as revealed by its major Shareholder Anil Agarwal that it makes huge profits from the mine which it got at a low price.

Below is the full statement…

2nd June, 2014
PRESS STATEMENT

Members of the press, fellow citizens, I wish to welcome you all to this press briefing. I have been compelled to address the nation today due to the grave economic situation obtaining in our country which is actually a threat to our political stability.

THE CONTINUED DEPRECIATION OF THE KWACHA

The continued depreciation of the kwacha against the major convertible currencies is adversely impacting on the lives of the majority of our people as the prices of essential goods and services such as mealie meal, water, electricity, transport and housing have kept on rising beyond the reach of the majority of our people. Just yesterday, the Energy Regulation Board gave ZESCO the go ahead to increase electricity tariffs by 24%. At the rate we are moving, we expect the prices of fuel to go up soon. And that will worsen the poverty situation many households are living in.

Last week, The Bank of Zambia told the nation that the kwacha is depreciating because of speculative behavior among players. The Central Bank said people should desist from speculating with the Kwacha to halt the current free fall of the local currency. This is the latest of the many cheap excuses this government has been giving us since the kwacha started its downward spiral. First they told us that the Kwacha was losing value due to the falling copper prices, and then they changed the story and said the Kwacha was depreciating due to their ill-timed Statutory Instruments No. 33 and No. 55.

Then the story changed yet again that the Kwacha was losing its value due to the so called capital projects which the government was undertaking. As if that was not enough the government invented another excuse saying the Kwacha was depreciating because of some imaginary cartel. And now the story has changed yet again. Today the Governor is blaming the so called speculators for the depreciation of the Kwacha.

Surely, it is clear to all of us that the Kwacha has continued to lose its value due to the lack of sound fiscal and monetary policy by the PF Government coupled with the ill prepared individuals who are managing our economy. Dr Michael Gondwe, our Central Bank Governor is a lawyer by profession and is therefore the wrong person to have as Governor of the Central Bank.

Can the Governor tell us why the opening rate of the Kwacha each morning is higher than the closing rate of the previous evening? Does he know that the money market does not sleep? Does he know that his commercial banks are taking foreign positions using the few dollars that he has been pumping in the financial market? Does he even know how much foreign currency, trading outposts such as Shoprite, Game Stores, the mines and such foreign firms are taking outside the local money market?

It is plain to all of us that our Governor lacks the basic understanding of the economic matrix, let alone how the financial market operates. It is for this reason that we are hereby requesting Dr. Michael Gondwe to immediately step down as Governor of the Central Bank of Zambia because we as a people no longer require his poor services.

If the depreciation of the Kwacha is not quickly arrested, we will find ourselves in the Zimbabwe or Greek situation because the purchasing power of our currency is evaporating with each day that passes. This is putting pressure on business houses especially small businesses such as car dealers, hardware dealers, fruit traders, cross border traders ( the Tamanga dot com friends) and the like who heavily rely on imported goods. This increased cost of doing business is beyond the reach of many small businesses. Many such businesses are failing to pay their workers or to operate normally hence many are closing or folding up.

LABOUR DISPUTES

For the first time in the history of this great nation, all ten public service workers’ unions have declared a dispute with the government for unilaterally imposing a wage freeze and refusing to improve the salaries and conditions of our workers.

If this labour dispute is not quickly resolved it may result into countrywide strikes. The consequences of such industrial unrest are too ghastly to contemplate. The escalating prices of essential goods and services that have been triggered by the depreciation of the Kwacha are eroding the value of the salaries of our workers due to the diminishing purchasing power of the Kwacha.

It is for these reasons that we are calling upon the government to immediately lift the wage freeze and honour the 2013 Collective Agreement. We equally urge the government to learn to consult all relevant stockholders and embrace the spirit of give and take before making major policy pronouncements to avoid backlashes. This government has to learn that we are in a democracy and not an autocracy. The government has to learn to deal with our workers in an open and honest manner.We urge the government to deal with these labour challenges with a sober and level headed approach and not the heavy handed approach. We do not want to see what happened with the nurses to repeat itself because the ultimate losers are the poor Zambians who have continued to lack the services of the fired nurses.

As a Party, we fully appreciate the numerous challenges our workers are enduring. The bulk of our public service workers are what may be termed as the working poor. Low wages and poor conditions of service have become the norm for most of our public service workers. Paying for basic needs such as food, shelter and transport is a real struggle for them. Low wages are forcing most of our workers to resort to kaloba and all sorts of loans just to make ends meet.

It is Important to stress that our workers are the engine and backbone of the economy. It is therefore extremely important that the workers are `properly motivated and properly taken care of in order to increase their productivity. However, we want to caution that even if we increase the salaries of the public service workers it will not positively impact on their lives if we do not deal with the falling Kwacha and the general economic mismanagement currently obtaining in our country because the purchasing power of the Kwacha is diminishing daily. We need to seriously work on the fundamentals of our economy which are currently very weak due to lack of sound economic policies and sheer incompetency on the part of some individuals who have been charged with the responsibility of managing our economy.

Thank you.
Prepared and issued by:
Edith Z Nawakwi
FDD President

George Chellah plots to arrest Hope & Chi, close down Hot FM

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President Sata with Mr George Chellah at AU Summit
President Sata with Mr George Chellah at AU Summit

Plans to arrest popular Hot FM breakfast show hosts Hope & Chi and close down one of Lusaka’s popular commercial radio stations have been exposed.

Sources from Lusaka Central Police Station and State House have revealed that President Sata’s Press Aide George Chellah is behind the scheme to shut down Hot FM.
The sources disclosed that Chellah has since instructed two officers from the Criminal Investigations Unit at Central Police to investigate Hot FM and the two popular presenters in an effort to find something incriminating about them.

The planned arrest of the popular duo has to do with a story regarding President Sata’s reported evacuation on which Chellah was quoted refuting the story.
In the story aired on Tuesday, May 27 2014 on its breakfast news, Hot FM reported that State House had refuted that President Sata had been evacuated on Sunday after he fell ill.

In the clip to the story, Chellah could be heard saying the evacuation story was not true and that President Sata was well.

Hot FM went ahead and ran the story and aired Chellah voice refuting the story.

But since Tuesday, plain clothed police officers have frequented Hot FM a number of occasions and summoned Hot FM Chief Executive Officer Zach Chavula regarding the story.
The officers have also obtained statements from Hope, the Programmes Manager and a Reporter who authored the story.

But sources from the Police Service and State House say the scheme to arrest Hope & Chi is part to Chellah grand scheme to close down Hot FM.

They said Hope & Chi including the Programmes Manager and a Reporter were supposed to be arrested last Friday and lock them up the entire weekend.

“As you might be aware, they were looking for Hope & Chi from Friday and they could not just locate them. This Monday morning, the officers camped at Hot FM as Hope & Chi were doing their Red Hot Breakfast Show and again interrogated the duo,” the source said.

“Chellah has vowed to shut down Hot FM before he leaves State House. He feels the station has failed to play by his rules and the best thing to do is eliminate it completely from the scene,” the source added.

And Hot FM Chief Operations Officer Oscar Chavula confirmed that police officers have been frequenting the radio station from last week and getting different statements from employees.

“Clearly, this borders on intimidation, they are set on harassing us with the hope that we will cow down and start singing their praises but they are mistaken. The President himself has said people are free to debate his health and the story we ran had no ethical issues,” Mr Chavula said.

“Even this morning, the breakfast show crew was literally broadcasting under lock them, the officers were waiting to interrogate them just as they finish their shows. This is unacceptable and goes against the tenets of free press.”

And a letter signed by Acting Independent Broadcasting Authority Acting Director General Eustace Nkandu dated May 29 2014 directed Hot FM management to apologise during the same breakfast show and all prime time programmes for the next one week.

“From our findings we deemed the contents of the show unethical and inappropriate. Discussions of health status ate personal issues and should not be discussed in the public domain regardless of the social standing of the individual,” the letter read.

“The letter of apology to State House is required to enable the complainant know that the compliant has been dealt with as pursuant to Section 36 (3) which provides that the Authority shall notify the complainant of the results of such an investigation.”

But Hot FM management wrote to IBA seeking clarity on the nature of the complaint and the complainant in particular.

In a letter written by Hot FM Station Manager Rodgers Twala, Hot FM requested asked the IBA to state the exact words which were deemed offensive and requiring retraction.

“The complainant (State House) is too general and is not a legal person, further, as a Station, we are concerned that we have not been given an opportunity to be heard and yet clearly we have already been sanctioned by the Independent Broadcasting Authority which we find very unusual,” the letter read.

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Government isn’t listening to us, says Business houses in Livingstone

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Livingstone
Livingstone

Livingstone Chamber of Commerce President Miles Daka says the challenges facing business houses in the tourist capital are not getting the attention they deserve from government.

Mr. Daka noted that key infrastructure facilities that government pledged to commission ahead of the hosting of the 20th session of the United Nations World Tourism Organization (UNWTO) General Assembly last year, have not yet been completed.

“Before the UNWTO-General Assembly the local business community cooperated and worked tirelessly to make the hosting of the event a success, but did not get back their investment returns, partly because key infrastructure remains uncompleted,” he said.

Mr. Daka said this in a statement made available to ZANIS in Livingstone today.

He also expressed concern on the decision by the Zambia Wildlife Authority (ZAWA), to introduce a toll gate at the entrance to the Zambezi water front for the purpose of charging the community, local and foreign tourists.

“Government needs to immediately scrap off these charges failure to which there will be serious consequences the charges introduced at the ZAWA gate will distort the spending patterns of local tourists and operations of tour operators,” he said.

He said despite these challenges, the local Chamber of Commerce would continue working with government and all stakeholders in finding solutions to challenges the business community was facing.

The Livingstone Chamber of Commerce and Industry successfully held its Annual General meeting over the weekend at Limbo lodge.

The meeting which was witnessed by the Zambia Chamber of Commerce and Industry Development advisor Mr. Sven Buchholz saw Miles Daka retain his position as President.

The new Vice President is Mrs. Ruth Henson, while the position of Treasurer was retained by Mr. Steven Mwiinga; the positions of secretary and research/development officer went unopposed with Kunda Mwendapole and Shangwa Chime retaining their positions.

The newly elected members pledged to work extra hard to make the organization more vibrant to mitigate the challenges the business community was facing and reinforce their lobbying and advocacy roles.

MMD in Eastern Province joins calls for GBM to ditch PF and rejoin them

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FILE:  Defence Minister Geoffrey Bwalya Mwamba  greeting Movement for Multi-party Democracy (MMD) President Dr. Nevers Mumba during the start of the process of the burial of late Paramount Chief Chitimukulu at the palace in Mungwi district
FILE: Defence Minister Geoffrey Bwalya Mwamba greeting Movement for Multi-party Democracy (MMD) President Dr. Nevers Mumba during the start of the process of the burial of late Paramount Chief Chitimukulu at the palace in Mungwi district

The Movement for Multi-party Democracy in Eastern Province has supported their counterparts in Northern Province who have called on former Defence Minister Geoffrey Mwamba to ditch the ruling Patriotic Front and rejoin MMD.

Eastern Province MMD Provincial chairperson Alexander Miti says Mr. Mwamba should reconsider rejoining the former ruling party as the PF does not value his membership and contributions to the party.

Mr. Miti said Mr. Mwamba should not continue going through unnecessary harassment from the PF when there is a party that is ready to welcome him back as one of its own.

He said the MMD in Eastern Province respects the decision and cause under which the former defence minister renounced his ministerial position as there is nothing wrong for one to respect traditional authority and his tribes men.

Mr. Miti adds that Mr. Mwamba should not suffer the humiliation he is going through as the decision he made to leave his position was correct.

Mr. Miti was commenting on calls from the MMD in Kasama who have called the Parliamentarian to consider ditching the PF as he is not being appreciated by the ruling party.

DEC arrests Lusaka businessman for money laundering.

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The Drug Enforcement Commission (DEC) has arrested and jointly charged an accountant and a Lusaka businessman for money laundering activities involving over K420.000.

DEC Assistant Public Relations Officer Chibu Tembo said Milimo Chilala, 26, of Lusaka’s Libala Township has been arrested and jointly charged with Brain Kawala, 31, a Businessman of the same abode for Theft and Money Laundering contrary to Cap 87 and Act No. 14 of 2001 as amended with Act 44 of 2010 of the laws of Zambia

Particulars of the offence are that Milimo Chilala on dates unknown but between 1st January, 2013 and 30

th April, 2014, jointly and whilst acting together with Brian Kawala and other persons unknown in his capacity as Assistant Accountant of Dolomite Aggregates Limited did steal K428, 519.00 by fraudulently transferring funds belonging to the said company into various ghost workers accounts held at a named Commercial bank purporting that the money was meant for salaries when in fact not.

And Ms. Tembo has revealed that the Commission in Western Province has arrested two Peasant farmers for trafficking in cannabis.

She said Gift Maliti, 21, a Peasant farmer of Kanyuka area in Western Province has been arrested for trafficking in 28.8kg of loose cannabis and Morris Mutumba, 30, of Mangamu area in Western Province for trafficking in loose cannabis weighing 6.1kg.

Meanwhile, the DEC Assistant Public Relations Officer said the Commission on the copperbelt the Commission has arrested Credence Chiluba of House No. 219 Section E Kankoyo Township in Mufulira for trafficking in loose cannabis weighing 10kg.

Government gives 30 days to NGOs that have not registered to register or face de-registration

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FODEP Executive Director, McDonald Chipenzi
FODEP Executive Director, McDonald Chipenzi

Government has given 30 days for non-governmental organisations that have not registered under the NGO No 16 of 2009 or face de-registration.

And Foundation for Democratic Process FODEP executive director McDonald Chipenzi has accused government of trying to divert the attention of the public away from the demands of a people driven constitution something he says is a waste of time on the part of government as NGOs will continue to demand for a new constitution.

In letter sent to FODEP, TIZ and Action Aid among other NGOs government through the ministry of community development is demanding for an explanation as to why the NGOs should not be de-registered within 30 days as they have been given ample time to register under the NGO act which they have snubbed.

“We note that despite the extension being made available, your organisation has knowingly failed or neglected to register or commence the registration process with the department of registrar of NGOs.

The NGO act further prohibits persons from operating organisations that are not register in accordance with the act (section 10). You are therefore given 30 days to show cause as to why your organisation should not be de-registered,” reads part of the later.

But FODEP executive director McDonald Chipenzi says his organisation will not be forced to register under the act and is ready to face any consequences in its fight for civil and political liberties in the country.

And Mr. Chipenzi said if the ploy is to divert the attention away from the demands of a new people driven constitution then government is mistaken as NGOs will continue to demand for the document.

“FODEP is not interested in registering under the draconian Act and therefore ready to face the consequences in its fight for civil and political liberties in this country.

We wish the ministry all the best of luck in its effort to decimate the NGOs from the earth of Zambia.

Others received these letters include TIZ and Action Aid Zambia. We here more yet to receive. if the motive is to divert us from demanding for a people driven constitution, then, they are in for a rude shock. The demand will continue whether registered or not but as Zambian citizens. We want a new constitution now,” said Mr. Chipenzi.

Government had extended the registration NGOs to 5th May 2014 for organisations to have their NGOs registered but they remain adamant in their resolve not to register under the act which they say is meant to control them.

Mighty sneak into second place

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Mighty Mufulira Wanderers moved up into second spot on the FAZ Division One table after beating visiting Nkwiza 1-0 in a Week 12 match at Shinde Stadium on Sunday.

Taonga Bwembya scored a first half solitary goal via a free kick as Wanderers increased their tally to 22 points from 12 matches.

Manfred Chabinga’s side is now one point behind leaders Kalulushi Modern Stars who thumped FQM Operations 3-1 at home to reclaim the top spot.

Chinjoka Nyirenda’s brace and a goal from Joseph Bwalya were enough to enable Kalulushi collect three points at Independence Stadium.

Mighty and Kalulushi took advantage of Forest Rangers’ 2-1 defeat at Lumwana Radiants to move up the 18-team table.

Forest who went into Week 12 games as leaders drops into third place, two points behind Kalulushi.

And Mining Rangers thumped Zesco Mansa 4-0 at Garden Park Stadium in Kitwe with goals from Berrington Musonda, Harrison Musonda, Wilfred Sikanyika and Potipher Nyirenda.

Mining moved into 6th place with 17 points.

Forgo your mid-term gratuity pay, ZCTU challenges MPs

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Zambia Congress of Trade Unions (ZCTU) Secretary General Roy Mwaba addresses journalists as ZCTU Trustee Sifeniso Nyumbu (left) looks on at Courtyard hotel in Lusaka
Zambia Congress of Trade Unions (ZCTU) Secretary General Roy Mwaba addresses journalists as ZCTU Trustee Sifeniso Nyumbu (left) looks on at Courtyard hotel in Lusaka

The Zambia Congress of Trade Unions has challenge Members of Parliament to forgo their September mid-term gratuities in national interest.

The National Assembly is due to pay all MPs about K 500,000 in mid-term gratuities by September this year.

The other 500,000 will be paid at the end of their full term in 2016 before Parliament is dissolved.

But ZCTU General Secretary Roy Mwaba told journalists that the MPs should waive their mid-term gratuities as a way of sacrificing for the nation.

Mr Mwaba said many Zambians including workers are enduring an imposed wage freeze for two years saying MPs should share part of the sacrifice by relinguishing their gratuities.

“What we know is that MPs already receive a lot of money in various allowances. This mid-term gratuities policy should be scrapped off especially for a country like Zambia which is poor,” Mr Mwaba said.

He said MPs should put national interest first and forgo their gratuities.

President Sata lashes out at people peddling lies about his health

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Sata returns 1
President Michael Sata has lashed out at people that are claiming that he is sick.

The President said those alleging that he has been evacuated for specialist treatment must check their facts before spreading false rumours.

Speaking at a Cabinet meeting at State House in Lusaka today, President Sata said he is fine and healthy.

President Sata said it is unfair for people to wish him sick or dead as he is very fit and still serving the nation on various issues.

The Head of State said he was never evacuated to any country for treatment as earlier reported by some sections of the media.

Meanwhile, President Sata has appealed to all the Members of Parliament to ensure that they make it a habit to visit their constituencies.

Mr Sata said it is important that MPs should explain government policies to their electorates.

He said their role is to provide a service to people in need even in the remotest parts of the country.

The President wondered why some MPs have to be pushed to visit their constituencies when it is their duty to do so.

He said development of various constituencies in the country lies in elected MPs as they have been given the mandate by their electorates.

Dangerous Forex Control Proposals by Dr. Mbita Chitala

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By Hjoe Moono

I am rather disappointed at Dr. Mbita Chitala’s proposals to the PF in his article that the PF should consider bring back foreign exchange proposals in order to curb the rapidly depreciating kwacha. While I would vehemently agree that our currency isn’t performing well, I disagree that it is in such a dire situation as to warrant the introduction of foreign exchange controls.

If the PF listens to Dr. Chitala’ advice, it would have succeeded in taking Zambia back to the 1970s through to the 1980s when these controls were tried and failed, leading to economic stagnation, emergence of a thriving black market and ultimately political failure of UNIP. These proposals are regressive, archaic and have no place in a modern and open economy like Zambia whose currency’s performance is heavily dependent on copper. I will offer my rebuttal of Dr. Chitala’s recommendation with a bit of history first.

Between 1989 and 1992 Zambia moved from a highly regulated foreign exchange regime with a seriously overvalued exchange rate to a unified floating exchange rate. Today the Bank of Zambia (BoZ) operates a managed float of the kwacha with no predetermined path for the exchange rate. The official exchange rate is determined on the interbank market with the BoZ’s interventions aimed primarily at reducing short-term volatility.

When the proposals that Dr. Chitala is proposing where in place, Zambia had experienced almost 20 years of steady per capita income decline. Per capita income declined on average by around 2 percent a year between 1970 and 1989 mostly caused a heavy reliance on quantitative rationing and price controls, instead of fiscal and monetary policies, to contain inflation and defend the exchange rate.

The fiscal deficit averaged almost 13 percent of GDP during the 1970s and 1980s and the controlled exchange rate was consistently overvalued and export volumes declined sharply. Foreign exchange transactions were highly regulated to conserve foreign exchange and contain inflation; foreign exchange receipts were required to be surrendered to the BoZ, foreign exchange was allocated to priority transactions on a case-by- case basis, and exports and imports were subject to licensing. The controls and seriously overvalued official exchange rate pushed economic activity into the informal sector and depressed exports (IMF, 2013).

However, the price controls and Pegging/fixing of the exchange rate failed to lower inflation—the headline inflation rate was persistently around 50–60 percent in May 1987–October 1988 when the exchange rate was pegged to the dollar(as Chitala is proposing), gradually rising to almost 100 percent in mid-1989,gave rise to a black market, and by 1990s when these failed policies had taken full effect, the official kwacha/U.S. dollar exchange rate increased by more than 3000 percent between June 1989 and December 1992 even in the face of controls!

Key Message: Government has no capacity to consistently manage foreign exchange controls! Such controls, if initiated, are deadly to the economy.

The ability to maintain a fixed exchange rate as being proposed by Dr. Chitala is dependent on the Bank of Zambia’s level of Foreign Exchange Reserves. Foreign-exchange reserves are assets held by the Bank of Zambia usually in US dollar and these have an important role to play in monetary policy formulation and execution.

Under a fixed/pegged exchange rate regime being proposed by Dr. Mbita Chitala, the Bank of Zambia needs to trade domestic currency in the forex market to balance supply and demand, which will keep the exchange rate stable or, where applicable, within the fluctuation bands. To conduct such transactions, the central bank needs to maintain a sufficient level of foreign reserves to maintain confidence in the fixed exchange-rate policy. Smaller reserves should generally suffice under a floating exchange rate—as has been the case since 1992—since the central bank does not need to intervene to defend the currency. We have seen recently the impotency of BOZ to intervene in the foreign market owing to depleted reserves.

The $178million pumped into the economy in the first quarter has failed to yield any results, but has rather actually further depreciated the kwacha. Where would BOZ get the reserves to run a fixed exchange rate as Dr. Chitala is proposing? Let us assume it offloaded all the dollars it has, it will take utmost only two weeks for demand to outstrip supply, and then we would see an explosive depreciation of the kwacha, taking us to levels poorer than we are experiencing now. There is clearly no room nor capacity for BOZ to take the luxury of foreign exchange controls.

Yes, it is true that we haven’t had prudential prudent economic management for a while but we are not in a dire state as to go the Chitala way. Contrary to what Dr. Chitala has romanticised on capital flight, an introduction of forex controls will immediately give an even stronger currency black market and we will have within days people starting to send their forex abroad thereby further weakening our kwacha. With a consistent fiscal deficit, this move will further lead to our economy downgrade and lead to low investor perceptions, leading to a decline in FDI and growth of the economy.

Such a proposal is clearly regressive, and would take us back to the days Zambians thought were behind them—the long gone Kaunda days. Unless Dr. Chitala has an interest in being an active player in the black currency market along Katondo Street, I find such proposals disappointing from a man of his experience and exposure to macroeconomic policy.

In March we wrote with caution to the PF that: There are some ever-present opportunistic and self-serving economists who would claim that they know better than most others and pronounce that those who are giving warning signals about the economy such as we are doing are wrong. These have been seen in the corridors of power before and represent a group that is always hungry for appearance on television and in newspaper columns and to attract the attention of those in power, thereby offering themselves to “serve” the country.

Some may be in government already. The PF should be cautious of such. There is no magic wand to save the economy from the current crisis, and only a determined government that undertakes structural economic reforms will bring some hope of economic recovery, and there is an opportunity for the PF to do this and more.

Dr. Mbita Chitala suits this description, and the PF should be wary of such advice. Here is a man who served in the same MMD that made possible a stable currency after Kaunda’s massacre of the economy in the 1980s, yet, today, out of power and favour, he soothes the PF by saying they inherited such exchange rate management problems from the MMD, and goes on to prescribe deadly recommendations that have the potential to further cripple our ailing economy.

Someone recently commented: You do not stop a fire by pouring petrol into the roaring flames….you will only create an explosion! Dr. Chitala’s proposals amount to total destruction of the monetary system and economy, and should thus not be entertained.

Kwacha has been losing value since UNIP era , why so much noise under PF-Guy Scott

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Vice President Dr Guy Scott addresses the gathering delegates to the ongoing UNWTO who attended the tree planting exercise at Livingstone’s Victoria Park National Heritage site
Vice President Dr Guy Scott

VICE President Guy Scott has said the Zambian Kwacha has losing value from the time of United National Independence Party (UNIP) and Movement for Multi-Party Democracy (MMD) and it was strange that there was too much noise on the currency under the Patriotic front (PF) Government.

Speaking in Livingstone at Protea Hotel today when he officially opened the first ever 10-day conference for Heads of Mission abroad, Dr Scott said that this is the best period for farmers to export and get more dollars.

“In the UNIP Government, the Kwacha used to be K2 to the British pound but it slipped over the long period. The Kwacha also fell also under the MMD Government. As a farmer, the best farming period is when the Kwacha is weak so that you export abroad and get more dollars,” Dr Scott said.

Dr Scott also took a swipe at online media for publishing falsehood about the country. Dr Scott said the business of accusing leaders to be Satanists as well as adulterers was inaccurate and uncalled for.

“What is happening in the social media of Zambia it is worse than a village gossip.

As ambassadors and High Commissioners, you be more relaxed and confident of the country and also avoid being stressful when you read these lies about us,” Dr Scott said.

He said from the time he was born, people had been telling him that Zambia was going to dogs.

“I have been looking for dogs for 70 years from the time I was born and I can’t see the dogs,” Dr Scott said.

Dr Scott said he found gaps in a number of missions he visited abroad in terms of dealing with false and biased information especially in the social media.

“We should be more prepared on a number of issues and one of them is a general human rights issue that keeps on coming up where we are accused of abusing on the Public Order Act.Over the last few months, there is no one in the opposition who has spent more than a night in jail and there is no state of emergency that has been introduced,” Dr Scott said.

He said the PF Government record in terms of human rights protection in Zambia had been excellent.

About 35 Zambian ambassadors and High Commissioners across the globe are attending the conference under the theme ‘Zambia at 50: enhancing the sound and prudent management of resources in missions abroad’.

The objectives of the conference were to appraise the Zambian Heads of Mission on current national and international issues as well as to enlighten them on the internal audits circle and public accounts committee matters.

Other objectives are to improve the operations and management of resources in our missions abroad and to enhance collaboration between the Ministry of Foreign Affairs Headquarters in Lusaka and Missions abroad.

Supreme court tosses out PF bid to exclude evidence of violence and abuse from case

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PF candidate for Livingstone Constituency Lawrence Evans knell (middle) to ask for votes in Livingstone’s Kasiya Ward yesterday. On his left is Western Proince Minister Obvious Mwaliteta and his wife on the right
PF candidate for Livingstone Constituency Lawrence Evans kneel
(middle) to ask for votes in Livingstone’s Kasiya Ward yesterday.
On his left is Western Proince Minister Obvious Mwaliteta and his wife
on the right

The Supreme Court has tossed out a bid by Patriotic Front (PF) to hide the unprecedented violence that characterized the Livingstone by-election in which one person was killed and government interference in the election that saw Lawrence Evans elected as the Member of Parliament.

The PF wanted paragraphs citing violence and blatant abuse of Police and Ministry of Education removed from the record.

The violence that rocked Livingstone during the last by-election forced the Electoral Commission of Zambia (ECZ) to postpone the election after a PF cadre was killed resulting in the arrest of several senior UPND officials, who were later released after it was established that they were not involved.

But in a petition launched by lawyers Marshal Muchende of Dindi and Company, the Supreme Court has thwarted the PF’s attempts to block the amendment to the United Party for National Development (UPND) Livingstone by-election losing candidate Regina Musokotwane who petitioned that apart from violence, government resources were used by the PF, in the by elections.The matter has since been sent back to the High Court for the petition to proceed.

The Supreme Court has ruled that Ms Musokotwane could make amendments to her petition based on the fact that the ECZ chairperson Irene Mambilima had acknowledged that the Livingstone by-election was marred by violence and could not guarantee a free and fair election.
The Supreme Court has also ruled that the Attorney General should be joined in the matter because of the involvement of the police and Ministry of Education.

Ms Musokotwane argued that because of the bloody violence in which known PF cadres discharged gunfire that characterized the Livingstone by-election, only 30 percent of the registered voters voted.

The Supreme Court ruled that the court had power at any stage of the proceedings to order any proceedings to be amended for purpose of eliminating all statements which may tend to prejudice or embarrass or delay fair trial.

Ms Musokotwane argued that the inclusion of the paragraphs the PF was contesting were in fact statements of fact known to all parties and could not therefore be deemed to prejudice Mr Evans, the Livingstone PF MP.

She submitted that the PF had in both the High Court and the Supreme Court failed to demonstrate that the retention of the paragraphs that were being contested would in any way prejudice or embarrass Mr Evans to invoke the powers of the court to eliminate the inserted paragraphs in the petition.

“It is a misconceived position by Mr Evans and demur in his argument to imply that an amendment to a petition can only be done with leave of court. We contend that Mr Evans has misapprehended the law by arguing as he has done. To the contrary, the Supreme Court does permit amendment of pleadings without leave of court. Therefore, the argument by Mr Evans that amendments to a petition can only be done with leave of court is misconceived,’ Ms Musokotwane said.

Ms Musokwane argued that Mr Evans had gone to the Supreme Court with dirty hands and prayed that the appeal should therefore fail as it lacked merit.

The Supreme Court also threw out an application by Mr Evans to have Ms Musokotwane’s paragraphs in her petition expunged because they mentioned the Zambia Police and the Ministry of Education because the application was not anchored on law.

Ms Musokotwane said it was the position of the High Court a non-joinder of a party was not fatal as to warrant the elimination of some paragraphs of the pleadings stating that the pertinent position of the law was that no cause or matter shall be defeated by reason of misjoinder or non-joinder.

Source:Daily Nation

PF Government announces country wide load shedding

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ZESCO Limited officials inspect the waters at Lake Kariba where the utility firm generates power
ZESCO Limited officials inspect the waters at Lake Kariba where the utility firm generates power

The PF Government has announced that water levels at Kariba North Bank have gone down and therefore the country will soon be experiencing load shedding due to the reduced power generation.

Energy and Water Development Deputy Minister Charles Zulu said low water levels pose a threat on the power generation for the whole country.He said some neighboring countries who were generating power from Kariba North Bank would be affected as well.Mr Zulu said the situation should not be blamed on Zambia Electricity Supply Corporation (ZESCO) but due to low water levels.

[pullquote]We expect the whole situation to normalize after six months once rains start next season[/pullquote]
“Water levels have really gone down at Kariba North Bank and because of this we expect the whole country to experience load-shedding anytime soon. We expect the whole situation to normalize after six months once rains start next season,” he said.

He however said Government was working on an inter connector project with other neighboring countries so that Zambia could generate power from other countries when there was a deficit.