Join our community of SUBSCRIBERS and be part of the conversation.
To subscribe, simply enter your email address on our website or click the subscribe button below. Don't worry, we respect your privacy and won't spam your inbox. Your information is safe with us.
PRESIDENT Michael Sata has lashed out at United Party for National Development (UPND) leader, Hakainde Hichilema’s style of politics which he described as ‘destructive’.
In a statement released by his special assistant for press and public relations George Chellah, President Sata wondered why Mr Hichilema always spoke with a sense of destruction and a gossip tone.
Below is the full statement
For Immediate Release
PRESIDENT SATA RESPONDS TO HICHILEMA’S OUTBURSTS
LUSAKA, Friday, November 1, 2013 – His Excellency, Mr Michael Chilufya Sata, President of the Republic of Zambia, has wondered why UPND leader Hakainde Hichilema always speaks with a sense of destruction and a gossip tone.
President Sata’s remarks come in the wake of Mr. Hichilema’s recent angry outbursts where he claimed instability in the governance system of the country.
The Head of State noted that Mr. Hichilema’s mainstay line of attack lately is that of agitation for discontent.
“But our comfort and strength lies in the Zambian people’s awareness that Mr. Hichilema is a bad political investment for his followers as well as a clueless political disaster bent on deliberately misleading the country,” the President said.
“We know that the most difficult test for any leader is dealing with the aftermath of an electoral defeat. Therefore, Mr. Hichilema is too angry to contribute meaningfully to the development of the country. He is so frustrated and when anger transforms into a full-blown rage, judgment and thinking becomes impaired and people are more likely to do and say unreasonable and irrational things. So let’s understand Mr. Hichilema from that perspective.”
President Sata reaffirmed his Government’s commitment to dialogue with various well-meaning stakeholders on key national issues.
Issued by:
GEORGE CHELLAH SPECIAL ASSISTANT TO THE PRESIDENT PRESS AND PUBLIC RELATIONS
File:ZESCO Limited officials inspect the Kariba North Bank Power Station extension programme, which is expected to increase the power generation capacity for Zambia
Energy Minister Christopher Yaluma has disclosed that government through the Energy Regulation Board (ERB) approved the proposal by ZESCO to increase electricity tariffs.
Early this year ZESCO had proposed to have its electricity tariffs increased by an average of 26% in order to enable the power utility firm to meet various operational costs, high inflation and increased demand for electricity in the country.
Speaking in an interview with qfm news, Mr. Yaluma has however disclosed that the approved electricity tariffs are below the 26% that ZESCO proposed.
Mr. Yaluma, who could not disclose the exact percentage of the electricity tariffs that have been approved, said that the ERB will soon announce the approved increased ZESCO electricity tariffs.
Opposition Alliance for Better Zambia President Fr Frank Bwalya has stated that Ministers serving in the PF government should brace themselves for more embarrassment by President Sata.
Fr Bwalya charged that President Sata enjoys embarrassing people regardless of their age and stature saying Ministers should get used to it.
“That is his personal trait. That is what he enjoys. It is within himself so there should be some embarrassing moments coming up, Ministers should just get used to it, Fr Bwalya said.
Fr Bwalya said President Sata believes that by scorning his Ministers publicly, Zambians would then think he is working hard.
“Such leadership styles are archaic. It’s so ancient. When you are a President, you are a leader and a good leader needs a good team around but how can you deliver if you keep embarrassing your team?”
Fr Bwalya said Zambians should expect no development as long as President Sata continues running this government.
“We really don’t have a choice anymore, its either we forget about development for now until after 2016 or this government collapses on its own, Fr Bwalya said.
He said it is sad that a government that he so believed in and extensively campaigned for in 2011 has turned out this way.
MINISTER of Finance Alexander Chikwanda says Government will use the two years of a freeze on upward wage adjustments to plan for better emoluments for public service workers and tackle salary imbalances currently prevailing in the Zambian civil service.
Mr Chikwanda explained that the freeze was in no way meant to harm Zambian workers, who have recently received a huge wage hike of more than 100 percent, the highest since independence.
Mr Chikwanda said Government will not rescind its decision to enforce the two-year wage freeze in the public service as negotiations for improved conditions of service between Cabinet Office and the labour movement continue.
The minister said this in Lusaka yesterday when he featured on Zambia National Broadcasting Corporation Radio Two Government Forum programme.
“We are taking into account serious imbalances in wage structures for the public service. We want to try and see if we can tone down on those imbalances, those inequities.
“We are going to plan over this in 2014 and 2015 and defer salary adjustments to 2016 when we will have a better prepared plan,” Mr Chikwanda said.
Mr Chikwanda said Government decided to freeze wage adjustments to enable it to take measures that are in the interest of public service workers.
The minister said the civil service is slightly bloated and cannot be used as a mechanism to create more jobs.
He said Zambia cannot continue with glaring inequities and that there will be no fiscal space in 2014 and 2015 to increase salaries.
Mr Chikwanda said increases in salaries for civil servants this year are quite substantial.
He said the 200,000 jobs Government anticipates to be created in the next two years will be in the private sector.
“The budget this year is K10 billion bigger than the budget last year…there has been a tremendous increase in the emoluments,” he said.
The minister said the wage bill for public service workers has increased from K11 billion in 2012 to K15 billion in 2013.
Mr Chikwanda said this means that 52 percent of locally generated revenue would be spent on salaries for civil servants.
“This is why, with due humility, we suggested a moratorium so that we can put things in place. One of the cost overruns related to maize subsidy is that we are carrying on the burden of K1.3 [billion] into the 2014 fiscal year,” he said.
He also said foreign investment is still coming into Zambia and that the international investment community still perceives Zambia as a positive investment destination.
“There is a lot of investment pouring into the country and it is estimated around US$5 billion and the bulk of it is in the mining sector,” he said.
He said Government has continued to create a favourable investment climate in the country by simplifying company registration procedures.
Mr Chikwanda said Zambians should take advantage of the good policies Government has put in place to invest and improve their living standards.
He said Zambia has all the necessary facilities to do business but some have chosen to engage in unnecessary politics which do not benefit them.
“Zambians must stop this excuse of blaming it on Government for not being an adequate facilitator. They should just work and strive a bit harder, have creativeness and vision,” Mr Chikwanda said.
Civil servants recently received a more than 150 percent salary hike.
FLASHBACK: Dr Dan Pule and his wife walk away with a meal at the Africa Freedom Day celebrations in Lusaka
DUNAMIS Christian Centre apostle Dan Pule says Government has allowed him to register his new political party after changing its name from United People’s Jubilee Party to Christian Democratic Party.
Minister of Home Affairs Edgar Lungu recently rejected an appeal by Dr Pule against the decision of the Registrar of Societies not to register the United People’s Jubilee Party as it would have been associated with Zambia’s Independence Jubilee celebrations next year.
“The minister did not reject our application. He did not just agree with the name and we proposed an alternative name which has since been approved,” Dr Pule said at a press briefing in Lusaka yesterday.
Dr Pule said the Christian Democratic Party has been registered after the Registrar of Societies approved the new name.
He said the Christian Democratic Party has been formed with the goal of promoting democracy and enhancing people’s electoral rights.
Dr Pule said the party, which has been founded on Christian values, will ensure that it promotes biblical teachings.
“This party is exciting because it is founded on biblical principles but we shall embrace all other people,” he said.
Dr Pule also said his political ambitions will not disturb his work as a preacherman because he has served in Government and has been a political leader before.
Lea-Lui Member of Parliament Situmbeko Musokotwane
Former Minister of Finance Situmbeko Musokotwane has expressed concern at the size of the budget deficit that the PF government is running. In a statement released to the media, Dr Musokotwane started by conveying his congratulations to the Minister of Finance Alexander Chikwanda for the 2014 budget because it was never easy anywhere to present a national budget as resources are always finite.
The Former Finance Minister offered a detailed analysis as to why he thought the 8.5% deficit the Government was running was not a good sign and was considered by many as unsustainable. Dr Musokotwane further said that only 17 countries have deficits of 8.5 percent and bigger, and these included countries like Greece.
Below is the full statement
Dr Situmbeko Situmbeko’s reflection on the 2014 national budget
Introduction
I begin by conveying my congratulations to the Minister of Finance for the 2014 budget. It has never been easy anywhere to present a national budget because you cannot satisfy everyone since resources are finite.
In the African context, especially, there is unlimited desire for public spending on many programs, many of which reflect genuine development aspirations. A tour of most areas in rural areas will indeed convince any reasonable person that government spending to ease the lives of the people there is necessary.
While there is pressure for government to spend, there is always pressure from citizens to lower their taxes. This tension of expanding expenditure while reducing taxes, if unchecked, can lead to huge deficits in the government budget. This is what seems to be happening today in Zambia
Requests to Comment on the Budget
I have received many requests to comment on the 2014 budget proposals. After reflecting on the requests, I thought I should indeed comment. Rather than comment on every sundry, I feel I should just focus on a single theme that is of critical importance to the future of the country.
My remarks are therefore on the theme of finiteness of financial resources and the budget.
Resources are Limited
In our homes, it is easily accepted that resources are limited and therefore it is impossible to get everything we want at any one time. At the national level resources are limited too. But few, including politicians, accept this self-evident truth.
At national level, countries sometimes delude themselves that they can spend beyond their means. But this this comes at great cost by creating massive macroeconomic stability, which then requires painful correction. The most obvious forms of macroeconomic instability are frequent and substantial changes in the exchange rates, prices and interest rates.
Take the movements in exchange rates as an example of macroeconomic instability. In 1985 the exchange of the dollar was about K5 (un-rebased) to 1$. Then the Kwacha started losing value against the dollar to twelve, twenty, fifty, two hundred and so on until it reached K5,200 to the dollar before the Kwacha got to be rebased.
Further, take the example of inflation, the measure of price changes. It also rose sharply, at one point reaching around 300 percent per annum. Today, the inflation for the whole year can be around seven to eight percent. In the early and mid 1990s, this rate of inflation was attained just within a month! Life was truly uncomfortable then. Structural adjustment measures were needed to stop these difficulties.
Those who were adults during the periods of economic structural adjustments during the 1980s and 1990s remember just how painful the adjustments measures were – cash budget, high interest rates, and so on. The measures were a necessary evil to re-establish macroeconomic stability. Having achieved and maintained stability for more than a decade, we must spare our children from those harsh experiences of fighting to bring stability by preventing the re-emergency of instability.
Politicians are the Source of Over Expenditure
Politicians are the major source of pressure for over expenditure, or for allowing pressure for unsustainable expenditure to occur without adequate brakes. In succumbing to pressure for unsustainable expenditure, macroeconomic stability becomes an orphan. Not enough voices, especially from the government, are forth coming to warn of the dangers of run away budget deficits.
[pullquote]Not enough voices, especially from the government, are forth coming to warn of the dangers of run away budget deficits.[/pullquote]
The aspect of economic management in Zambia that is being watched closely today by local and foreign economists, international organizations like the World Bank and AfDB, is our government budget deficit. Even credit rating agencies and therefore investors are watching our deficit very closely.
In paragraph 77 of the budget speech, the Minister acknowledges and he refers to the problem of the 2013 budget deficit when he says and I quote
“Mr. Speaker, 2013 has been a challenging year for fiscal policy but important steps have been taken to address policies that have created structural imbalances. Challenges will remain in 2014, but Government is actively engaged in creatively resolving them to maintain prudent fiscal management”
Similarly, in a report entitles Zambia’s Job Challenge- Realities on the Ground published in October 2013, the World Bank states:
“The 2013 budget has come under stress due to several unplanned expenditures and a shortfall in revenue collection”.
The budget is said to be under stress because the expected expenditure is estimated to be way above of the expected revenue, which is itself below target, causing a budget deficit much bigger than expected.
Budget Deficits
Budget deficits are normal. In fact, most countries on earth run budget deficits. For example, out of 210 countries and fiscal authorities surveyed by the American Central Intelligence Agency (CIA) for 2012 fiscal outcomes, only 45 ran either balanced budgets or had budget surpluses. The remaining 167 or nearly 80 percent ran deficits. It is therefore not a strange thing that Zambia should run a budget deficit.
But we should not comfort ourselves in observing that it is normal for a country to run a budget deficit. A more important issue to analyze is the size of the deficit and its consequences on the economy. In this kind of business, size does matter.
Before we delve into the issue of whether our budget deficits in 2013 and 2014 are excessive or not, let us clarify something about measuring deficits. We can measure the size of the budget in monetary terms. Very often however, such a measure is not useful in evaluating whether a deficit is excessive or not. The difficulty arises because a given sum of deficit in monetary terms may be considered either too big or too small depending on the size of the economy.
The same consideration comes into play if we have to evaluate whether K100 million borrowed by individuals is too excessive or not. For a rich man it may be nothing. For a poor man, it may be too much.
To avoid this pitfall, we evaluate national budget deficits by relating them to the size of the economy of the borrowing country. For 2013, the Minister has told us that the expected deficit will be 8.5 percent of the size of our economy (the Gross Domestic Product or GDP).
Few economists, if ever, can be happy with this size of deficit of 8.5% of GDP. I also consider this deficit excessive for the following reasons:
Firstly, it is way above the average deficits Zambia has run in the past decade or so at about 3.5 percent of GDP. The last time a budget deficit of the size of 8.5% of GDP was run was probably in the unstable 1980s or 1990s.
Contrary to the unstable experiences of the 1980s and 1990s, Zambia has enjoyed a relative high degree of macroeconomic stability since the late 1990s – a period associated with significantly lower deficits/GDP ratios than what we have today.
[pullquote]The last time a budget deficit of the size of 8.5% of GDP was run was probably in the unstable 1980s or 1990s.[/pullquote]
Secondly, the 8.5 percent of GDP deficit is excessive when seen against the practice in other countries. If deficits of this size were good, or if they were prudent, we would expect most other countries in the world to run deficits of similar sizes.
The evidence is in the opposite. We look again at the survey done by the CIA. Of the 210 countries and fiscal authorities covered, the simple average size of the deficits was 2.5 percent of GDP. On the other hand, the average size of deficits corrected for the size of the economy was 3.8 percent of GDP, still way below ours at 8.5 percent.
Of the 210 countries and fiscal authorities surveyed, only 17 had deficits of 8.5 percent and bigger, and these included countries like Greece that have recently suffered from lack of confidence in their ability to manage their debts. The rest, constituting about 80 percent of the authorities had deficits below 8.5 percent of GDP. Clearly then, Mr. Speaker, the Zambian projected deficit is an outlier. It lies beyond the range that is considered by others to be sustainable.
Thirdly and finally, the 2013 deficit is excessive because that size was never what the Minister had intended in the first instance. The intended size as per the 2013 budget speech was 4.3 percent. We got to where we are because of unplanned circumstances. It has been caused by political pressure.
Projected Deficit
Against what has happened in 2013, the projected deficit in 2014 is 6.6 percent of GDP. I consider this as reasonable effort to reign in public expenditure although I would have been happier if the target for the deficit was lower. But vigilance is required. The 2013 deficit was never intended to be as big as it became eventually. Therefore, there is no automatic assurance that the 2014 deficits will be what it is intended now.
Already, some of the measures that the Minister had relied upon to reign in expenditure such as the two years wage and hire freeze have been thrown out right from start. The expenditures related to these areas mean that from the start the 2014 budget deficit will probably not be lower than the 2013 deficit unless new measures, still to be thought of and announced, are instituted.
[pullquote]Already, some of the measures that the Minister had relied upon to reign in expenditure such as the two years wage and hire freeze have been thrown out right from start.[/pullquote]
I see the effort to reign in public expenditure in 2014 requiring even more courage. The trouble is that big budget deficits behave like viruses in the sense that they unleash pressure for new over expenditure.
The construction of several public universities in a very short time period means we must quickly find money to fund hitherto non-existing expenditures for books, laboratory expenses, remuneration for lecturers and staff and so on. The same thing for the new bomas created. Then we must also start looking for money for repairs and maintenance for the new infrastructure being built. It is not that these investments are undesirable. It is more about developing them in a sustainable manner.
Pressure on the Budget will only get Bigger
So, the pressure on the budget will only get bigger. In other words, the odds for further budget overruns have increased. The Ministry of Finance requires our support to prevent this.
I said budget and budget deficits are political phenomena. Supposing the politicians who believe they have discovered a new, easy formula for national development through unrestrained borrowing get their way? Supposing the deficits will continue to grow beyond acceptable levels? What can we expect for our economy?
There are a number of serious negative consequences to continued and consistent excessive budget deficits such as that estimated for 2013.
Firstly, deficits unless financed by grants (gifts) increase the stock of national debt, whether foreign, domestic or both. Bigger deficits quickly accelerate the growth of national debt to the point when it becomes a problem to service, as was the case before HIPC.
I have heard some people say, Zambia’s debt service burden is still manageable. This is correct. But we must remember that debt service unsustainability is not arrived at as an event. It is arrived at as a process. Large deficits accelerate the arrival to the time when debt becomes unsustainable. May I ask some of the economists reading this article to develop scenario, at different levels of budget deficits and at realistic expected growth of the economy, to see when (time period) debt unsustainability kicks in?
[pullquote]I have heard some people say, Zambia’s debt service burden is still manageable. This is correct. But we must remember that debt service unsustainability is not arrived at as an event. It is arrived at as a process. [/pullquote]
Secondly, running huge deficits reduces the willingness of those with surplus cash to lend to us. Increasingly, they will see us as big risks and hold back even at a time when we desperately need credit such as in an emergency. According to the World Bank study on Zambia that I mentioned earlier, the following observation is made on page 11:
“Fiscal policy remains on a sustainable trajectory, but escalating recurrent and off-budget expenses must be reined in. Major global credit rating agencies have a negative outlook for Zambia.”
Indeed, both Standard and Poors and and others have now published their credit ratings for Zambia both of which portray negative outlook.
Thirdly, we must therefore indeed consider what would happen if lenders, domestic and foreign, were to reduce their willingness to lend to us.
Possible Outcome
One possible outcome would be for the government to aggressively seek funding by attracting money that is more expensive. In other words, this means raising interest rates. This is the so-called classical crowding out – the government attracting more credit to itself at the expense of the private sector and economic growth.
Another possible outcome if there are no lenders is simply to reduce planned expenditure to the available resources. I believe this is what the Minister is planning when he proposes a smaller deficit in 2014, even though in this particular case it has not been occasioned by reduced interest from lenders. But, as said earlier, reigning in expenditure is easier said than done.
In reality therefore, consistent big deficits raise the odds that the Bank of Zambia will be forced to expand its credit to the government. This is what economists call printing of money even though the physical side of printing may not happen, at least not immediately. The expansion of credit by the Bank of Zambia is what caused the instability of the 1980s and the 1990s that I spoke about earlier. There are all the chances that the same result will happen now. The zeros that we cut off when re-basing our currency, at high cost to the country, will automatically come back.
Best wishes to the Minister of Finance in controlling expenditure so that what we suffered from in the 1980s and 1990s does not return to Zambia.
National Restoration Party (NAREP) President Elias Chipimo Junior says the retirement of Emmanuel Mwamba as Cabinet Permanent Secretary barely a day after being transferred from the Ministry of Broadcasting and Information Services shows how unstable the Patriotic Front (PF) government is.
Mr. Chipimo has told QFM News that people should expect more of such abrupt decisions from President Sata.
Mr. Chipimo says there is need for the PF to take leadership seriously stating that the current state of running national affairs is not inspiring to the majority Zambians.
He says it is unfortunate that President Sata decided to retire Mr. Mwamba in such a manner after he showed his intentions of promoting press freedom.
And Movement for Multiparty Democracy Director of Communications in the Office of the MMD President Muhabi Lungu has told QFM in a separate interview that Mr. Mwamba was determined to bring sanity to the public media and that could have been one of the reasons President Sata retired him.
Mr. Lungu says though he is not a supporter of Mr. Mwamba, he saw the potential in him in promoting press freedom as well as ensuring that the public media operate professionally.
And People’s Party President, Mike Mulongoti, says he only hopes president Sata has retired Mr Mwamba in good faith.
Mr. Mulongoti says President Sata should not be governing the nation on personal interests but should have a heart to develop the nation.
On Monday President took Mr. Mwamba to task for not consulting him on the issuance of nationwide radio licenses to Radio Phoenix and QFM.
Nkana are bracing for judgment day over the abandoned away game against Konkola Blades.
Nkana and Blades officials have been summoned for a FAZ Disciplinary Committee hearing at Football House on Friday, November 1.
The two clubs are amongst 14 teams summoned by the FAZ Disciplinary Committee over their respective abandoned games.
“You are hereby informed that the Disciplinary Committee will meet on Friday 1 November, 2013 at football Houser at 12h00 to resolve the abandoned league games, ” FAZ general secretary George Kasengele said in his summons to the club’s.
“You are there summoned to attend this important meeting without fail and you are further directed to send your executive member who are familiar with the case to represent your club.
“However, be informed that the absence of your representatives shall not stop the committee to proceed with the case.”
Blades and Nkana’s game was abandoned in the 87th minute at Konkola Stadium in Chililabombwe on October 27.
This is after Blades supporter’s allegedly mocked Nkana fans as their team was trailing 1-0 and starring at the serious prospect of enduring a bruising second successive league defeat igniting a punch-up that police struggled to quell.
Chipolopolo coach Patrice Beaumelle has recalled Nkana striker Reynold “Sate Sate” Kampamba for Zambia’s November 6 friendly against Jordan in Amman.
The leading scorer in the FAZ Super League on 14 goals returns to the national team since December 2012.
Kampamba was on Thursday named in the 26 member squad.
Beaumelle has further recalled Green Buffaloes winger Felix Katongo.
Katongo has never played for the national team after the 2012 Africa Cup in South Africa.
Meanwhile, the Frenchman has handed new call-ups to Nchanga keeper Toaster Nsabata and Power Dynamos midfielder Mathews Nkowane.
He has also included Chipolopolo stars Christopher Katongo, Fwayo Tembo and Noah Chivuta in the squad to face Jordan.
1
Meanwhile, FAZ has announced that the date for the Jordan friendly has been adjusted from November 3-6.
Team:
Goalkeepers: Davy Kaumbwa (Green Buffaloes), Joshua Titima (Power Dynamos), Toaster Nsabata (Nchanga Rangers)
Defenders: Kabaso Chongo (TP Mazembe, DR Congo), Jimmy Chisenga, Bronson Chama (Both Red Arrows), Kampamba Chintu (Kabwe Warriors),Christopher Munthali (Nkana),Fackson Kapumbu, Salulani Phiri (Both Zanaco)
Health Minister Joseph Kasonde says the Western School of Nursing in Livingstone will remain closed following the institution’s failure to improve education standards.
Dr Kasonde said his ministry approved the recommendation by the General Nursing Council (GNC) that the institution be closed immediately.
“The Ministry of Health has accepted and approved the recommendation of the GNC that the work of this institution be closed immediately. This is not a happy occasion. The General Nursing Council concluded that we are risking a less than acceptable level of training for our children,”he said.
Dr Kasonde said this today when he addressed Western School of Nursing management, students and their parents.
He stated that all stakeholders involved did not want students at the institution to acquire academic qualifications that would subsequently be questioned by employers.
“None of us in the profession will accept that a person we call a nurse, a graduate of a school of nursing in Zambia, is in any way questionable in the way the patient will be looked after,” said the Minister.
However, Dr Kasonde said students at the institution could not be allowed to suffer due to mismanagement at the institution.
“Students who have been here cannot be allowed to suffer because of difficulties that are temporary and to lose their careers, personal development and capacity to help the country move forward-the country needs to move forward,” he said.
Dr Kasonde announced that all students would be made eligible for entry in any other nursing school and in particular into government nursing schools.
He however cautioned that each student would be assessed on which level they had attained and placed at an appropriate level in the new school they might enter, as the careers of the young people were important to the country.
Dr Kasonde regretted that Western School of Nursing did not implement the recommendations made by the GNC.
“I warned when I was here in August that there were a number of actions that needed to be taken to get out of this difficult period. I regret that I have not been satisfied with the actions taken to address challenges pertaining to provision of teachers, student/teacher ratio, availability of materials for learning and accommodation,” he said.
And General Nursing Council Registrar Universe Mulenga said the council would demand for all students to be absorbed in government nursing schools within a month if it would be feasible.
Mrs. Mulenga advised the students to submit their current qualifications to the GNC for verification with the Examinations Council of Zambia and to acquire all the necessary learning materials before they could be transferred to government nursing schools.
She noted with concern that most student nurses at Western School of Nursing were not registered with the GNC, a situation she described as dangerous.
“It is very dangerous for most of you as you are not registered with the GNC which is mandated to prepare examinations for you. If you are not registered with us it simply means we will not cater for you when preparing for exams and you will not get the desired qualification to practice as a nurse,” she said.
President Michael Sata has no powers to revoke the broadcasting licenses of Radio Phoenix and QFM and the abuse of the powers of decree has the potential to frighten both local and foreign investors, Edward Mumbi has observed.
Mumbi has charged that it was extremely dangerous to govern the country by decree because that was dampening Zambia’s investment climate.
Reacting to President Sata’s decree that national broadcasting licences issued to Radio Phoenix and QFM radio should be revoked, Mumbi who is former special assistant to UPND leader Hakainde Hichilema said investment licenses were issued with accrued rights that could not easily be revoked by a Head of State.
He told the Daily Nation that investment licenses such as broadcasting had accrued rights which were meant to help the prospective or established investor acquire investment finances from financial or shareholders.
Mumbi said while President Sata had all the powers, he should have realised that revoking broadcasting licenses could not be carried out by the work of mouth because there were legal implications in the licenses.
He said it was shocking that President Sata could choose to damage the investment climate of the country by wantonly directing the revocation of licenses for institutions that were eager to expand and contribute to employment creation.
He said President Sata should not be using the name of Hichilema to gag the media because the opposition leader like any other citizen had the right to express his views using any form of medium.
Mumbi has advised Radio Phoenix and QFM radio to seek the intervention of the courts because the issuance of licenses was done with wide consultation from a wide range of experts.
“What is worrying is that President Sata has shown a propensity to govern the country by decree and this is a dangerous way of running the country. While President Sata has all the powers, he cannot by decree revoke investment licenses because such licenses come with accrued rights. The accrued rights are meant for the investor to source funds for reinvestment or even get business proposals,” Mumbi said.
Mumbi said President Sata should have sought for expert advice from the Independent Broadcasting Authority (IBA) before announcing that the licenses should be revoked.
He explained that Sata should have found out why such licenses were issued adding his unilateral decision had sent a wrong signal to the prospective investors.
Mumbi said the presidency did not lack intelligence information and that it was doubtful if the Head of State was briefed on how and why former ministry of information and broadcasting had issued the broadcasting licenses.
The final draft of the country’s new constitution is ready for printing.
Spokesperson of Technical Committee Ernest Mwansa has disclosed this in a statement released to Qfm this afternoon.
Mr. Mwansa says the final draft of the country’s new constitution will be taken for printing on Friday tomorrow.
And Mr. Mwansa has further disclosed that the Report of Technical Committee on the draft constitution will be ready for printing on Tuesday next week after the deliberations of the last meeting of the committee during which the committee will formally adopt the final draft constitution.
Mr. Mwansa says the committee will thereafter seek an appointment with President Michael Sata for the day of the official hand over of the final draft constitution.
The Technical Committee had set the end of October this years as the month in which to officially hand over the final draft constitution to the President and the public simultaneously.
Opposition United Party for National Development (UPND) President Hakainde Hichilema has urged the Anti Corruption Commission (ACC) to investigate an alleged scam involving $ 2.9 million that government allegedly overpaid for the purchase of 50 000 metric tonnes of urea fertilizer from Saudi Arabia.
Mr. Hichilema has told journalists at a media briefing in Lusaka this morning that the purchase of the 50 000 metric tonnes top dressing fertilizer from Saudi Basic Industries Corporation without open tenders is grand corruption.
Mr. Hichilema said that his party is aware that the prevailing market price of top dressing fertilizer at the time of procurement was $330 contrary to what Agriculture Minister Robert Sichinga informed the nation that government purchased fertilizer from Saudi Arabia at a price of $380 Dollars.
And Mr. Hichilema has also noted that the total Urea fertilizer that should be procured for the Fertilizer Input Support Programme (FISP) is 97 000 metric tonnes and not the 50 000 metric tonnes Government has allegedly singled sourced from Saudi Arabia.
Mr. Hichilema wondered why the government has not made public the 47 metric tons shortfall that is supposed to be procured for FISP.
He added that from the information he has gathered so far, it is clear that there were flaws in the tendering process and pricing of the 50 000 metric tons of fertilizer it has procured from Saudi Arabia.
The annual rate of inflation for the month of October 2013 has reduced to 6.9% compared to 7.0% recorded in September 2013.
This means that on average, prices increased by 6.9% between October 2012 and October 2013.
Central Statistics Office -CSO- Director John Kalumbi told a media briefing in Lusaka that of the total 6.9% annual inflation rate recorded in October 2013, food and non-alcoholic beverage products accounted for 3.1 percentage points while, non-food products accounted for a total of 3.8 percentage points.
And Mr. Kalumbi said the annual food inflation rate for October 2013 was recorded at 5.9% to the 6.5% recorded in September 2013.
He said this shows a 0.6 percentage point decrease.
Mr. Kalumbi said the annual non-food inflation rate increased by 0.6 percentage points from 7.4% in September 2013 to 8.0% in October 2013.
