Former Workers of the defunct Zambia Airways are still living in the dark as to when government will pay them their terminal benefits following the liquidation of the company in 1994.

On December 24, 1994, on the eve of Christmas, Brigadier General Godfrey Miyanda then Republican vice-president announced that Zambia’s flag carrier, Zambia Airways had been liquidated leaving its employees jobless and some homeless.

Kennedy Phiri, who is among the hundreds of Zambia Airways workers who were thrown on the streets after the liquidation of the company, said they have not been paid their benefits despite assurances from the successive governments to do so.

He said the late former President Dr. Fredrick Chiluba assured the ex-workers after liquidation that they would be paid their benefits from the money realised from the sale of the Airline’s assets which he said never happened and after his reign, all successive governments have kept on promising.

Mr. Phiri explained that life has not been easy for ex-Zambia Airways workers as they had not been served with any form of notice ahead of the closure adding that the closure came as a shock to everyone who was caught unprepared to leave employment.

Mr. Phiri who now resides in Chainda Compound has since appealed to President Michael Sata to help the ex-workers who he said are living as destitute while others have died without getting their benefits despite their service to the nation.

Zambia Airways was founded in 1964 as a subsidiary of Central African Airways and went under in 1994 leaving its workforce in dire straits.

ZANIS

The Institute of Directors of Zambia has urged Government to speed up the reconstitution of boards for state-owned enterprises to ensure sustainable and effective management of resources in the affected companies.

Institute president, Julu Simuule, noted that some state-owned enterprises have been running without boards for some time now following Government’s move to reconstitute their boards, adding that the situation has made it difficult for the affected managements to effect decisions in a transparent and accountable manner.

Mr Simuule stated that whilst recognizing that boards in the state-owned enterprises are rightly reconstituted, the pace at which this is done is critical for timely decision making and enabling those charged with governance duties to effectively and legally discharge them.

He said in a statement made available to ZANIS in Lusaka today that corporate governance should be seen as a system of monitoring and guidance meant to curb mismanagement of the concerned institutions.

Mr Simuule, however, commended Government for its undertaking through its line ministries, to reconstitute boards of many state-owned enterprises, statutory bodies and other corporate entities in the public domain in a bid to make them more efficient, transparent and accountable.

He said this institution promotes sound corporate governance principles and ethics in order to ensure proper management, control and accountability for affairs of public and private enterprises in the country and in the process, preserve and secure the interests of all stakeholders.

Mr Simuule also applauded the initiative taken by some organisations to advertise positions for potential board members in the press, saying this is a good concept which promotes efficiency, transparency, effectiveness and accountability in the conduct of good corporate governance practices by such boards.

ZANIS

IMF Executive Directors have commended the Zambian authorities for their sound macroeconomic management and welcomed Zambia’s strong economic performance in recent years. This is contained in a press release made available to the media by the Ministry of Finance.

According to the statement the IMF Directors noted that while the outlook for the economy is favorable, it is subject to risks arising from volatility of copper prices and delays in implementing measures needed to meet the 2012 budget deficit target. To safeguard macroeconomic stability and to make growth more inclusive, they stressed the need for continued commitment to strong policies and implementation of structural reforms.

Directors agreed that fiscal policy should aim at prioritizing growth enhancing expenditures and mobilizing revenues to create the space needed to achieve the fiscal objectives. They emphasized the importance of implementing reforms to maize marketing and pricing, fertilizer subsidies, and public sector pension funds.[pullquote]They emphasized the importance of implementing reforms to maize marketing and pricing, fertilizer subsidies, and public sector pension funds[/pullquote].

These measures should help restore fiscal sustainability and correct market distortions that have created overdependence on maize production. Directors noted that revenue enhancing measures, including strengthening tax administration and reducing subsidies and incentives will also be critical for achieving the fiscal targets. In addition, the reinstatement of the automatic petroleum price adjustment mechanism and the implementation of the multiyear electricity tariff framework are needed to minimize fiscal risks associated with the current pricing below cost recovery.

Directors underscored that public financial management reforms are essential to improve budgetary planning and execution and prioritizing spending. They welcomed the plan to complete the implementation of the Treasury Single Account and urged the authorities to continue to strengthen their investment and debt management capacity. These measures would support the planned scaling up of infrastructure spending and increased use of non-concessional financing.[pullquote]They welcomed the plan to complete the implementation of the Treasury Single Account and urged the authorities to continue to strengthen their investment and debt management capacity[/pullquote]

Directors endorsed the plans to further enhance the monetary policy framework in support of a low inflation objective. They encouraged the authorities to remain vigilant to inflationary pressures and tighten policy if needed. Directors agreed that the introduction of the monetary policy rate, combined with use of a broad set of economic indicators to assess the monetary policy stance, should make monetary policy more flexible and forward looking and enhance liquidity management.

Directors noted that the flexible exchange rate regime has helped Zambia weather external shocks. They highlighted that increasing the reserve coverage would also provide an added buffer.

Directors welcomed the authorities’ efforts to strengthen the financial sector and improve access to financial services. They urged the authorities, however, to work closely with key stakeholders to minimize any risks to the financial sector stemming from the implementation of the new minimum capital requirement for commercial banks and the redenomination of the local currency.

Directors emphasized that structural reforms will be critical to achieve economic diversification and make growth more inclusive, in order to tackle the high rate of poverty and unemployment. In this context, they encouraged the authorities to formulate a broad based reform strategy for the agriculture sector, and to strengthen formal sector development, in particular by improving the business climate[pullquote]In this context, they encouraged the authorities to formulate a broad based reform strategy for the agriculture sector, and to strengthen formal sector development, in particular by improving the business climate[/pullquote]

Zambia has achieved high and sustained growth and macroeconomic stability over the past decade, but poverty remains high. Real gross domestic product (GDP) growth averaged 5.2 percent in 2000–10 (or 3.1 percent per capita); inflation declined from 30 percent to single digits; debt declined sharply; and international reserves increased to comfortable levels.

Economic conditions remain favorable and there has been little impact to date from the European crisis. Real GDP growth is estimated to have been strong in 2011, driven by a record maize harvest and strong expansion in bank credit, which has surpassed pre-crisis (2008–09) levels. Inflation continued to decline, broadly in line with the authorities’ target of 7 percent.

Despite copper prices rising to record highs, the external current account surplus narrowed significantly, mainly reflecting a strong expansion in imports and a decline in grants. However, gross international reserves rose above $2 billion for the first time, equivalent to 3 months of prospective imports.

Preliminary data suggest that the fiscal deficit of the central government remained flat at around 3 percent of GDP in 2011, as a large expansion in election-related spending was offset by a one-off payment of mining tax arrears.[pullquote]Preliminary data suggest that the fiscal deficit of the central government remained flat at around 3 percent of GDP in 2011, as a large expansion in election-related spending was offset by a one-off payment of mining tax arrears[/pullquote]

In 2012, real GDP is projected to rise by 7.7 percent, reflecting strong growth in copper production and non-maize agriculture, and an expansionary fiscal policy. The 2012 budget targets a deficit of 4.1 percent of GDP and a significant increase in investment. More than half of budget financing is expected to come from a US$500 million sovereign bond issue, and net domestic financing is targeted to remain low at about 1 percent of GDP. Inflation is projected to remain close to its current level of around 6 percent in 2012.

The Bank of Zambia (BOZ) recently changed its monetary policy framework from reserve money targeting to the use of a policy rate as the main monetary policy tool.

The Food Reserve Agency (FRA) will start buying maize and paddy rice from small scale farmers on 27th July, 2012 up to 31st October for maize and 30th November for paddy rice.

The Agency will target farmers based in villages, chiefdoms, rural farm blocks and settlements only and not commercial farmers who are well established.

FRA Board Chairperson Guy Robinson has disclosed the development to Qfm news in a statement.

Mr. Robinson says each Farmer shall be allowed to sell once, a maximum of 153 by 50kg bags of maize and 166 by 40 Kg bags of paddy rice.

He says only genuine and bonafide farmers are encouraged to supply maize and paddy rice to the Agency.

The board chairperson adds that those who do not qualify as small scale farmers are firmly forewarned of the ongoing scrutiny that will be undertaken during registration.

He further states that all farmers who wish to deal with the FRA should have a personal Bank account.

He says the Agency shall this year register farmers at buying depots and will also allocate empty grain bags according to the number of bags of maize to be supplied by a farmer in order to reduce production costs incurred by the farmer.

Mr. Robinson has warned that the FRA Board and Management will not tolerate or give room to fraud and other vices that characterised the past crop marketing seasons.

QFM

Kazungula District Farmers’ Cooperative chairperson, Mwiinga Muchabila, has warned that any further delays by the Food Reserve Agency (FRA) to commence the maize marketing exercise would jeopardize farmers’ preparation for the 2012/2013 farming season.

Speaking in an interview with ZANIS yesterday, Mr Mwiinga noted that most farmers in both Kazungula and Livingstone are deeply concerned with the delay by the FRA to start the maize buying exercise.

“I can tell you that most farmers are not happy with the delays by the government to start the maize buying exercise and are left wondering whether the government would buy their maize and how much quantity,” said Mr Mwiinga.

He observed that farmers were worried that with only three months left before the on-set of the rains, time was fast running out to enable them start buying farming inputs in preparation for the2012/2013 farming season.

Mr Mwiinga said the delay has also forced many farmers to sell their maize at prices as low as K22, 500 per 50 Kilo gramme bag.

Meanwhile, Mr Mwiinga argued that the move by the government to compel farmers to open bank accounts will work against farmers whom he said have no knowledge about banking services.

He also wondered how farmers will be able to sustain their bank accounts when farming was a seasonal activity characterised by a host of uncertainties.

“This move will work against farmers in that most farmers have no other means of generating money to sustain their accounts and so their bank accounts risked closure by the banks,” said Mr Mwiinga.

He cited his cooperative which had about 12,000 members but only 100 had bank accounts.

Mr Mwiinga urged the government to continue with the old system of payments through the banks without them opening personal bank accounts.

He further implored the government to clear the air on whether farmer’s cooperatives countrywide will be engaged to buy maize on behalf of the FRA during this year’s marketing season.

“We have heard some rumours that government will not engage farmers’ cooperatives to buy maize on behalf of the FRA this year and I call upon the government to clear the air on this issue ,” Mr Mwiinga said.

And Livingstone District Commissioner, Paul Sensele, said the PF government was fully committed to buying the maize from farmers across the country and urged them to be patient as measures were being worked out to commence the exercise as soon as possible.

ZANIS