FORMER Minister of Finance and National Planning Ng’andu Magande has said that he has no problem with the probe of the sale of Zambia National Commercial Bank (ZANACO).

Mr Magande said he stands ready to be called upon to answer all queries, but quickly added that as Finance Minister he was not in charge of the actual selling of the bank. He said the President has constitutional powers to order a probe in matters he feels have been marred with irregularities.

President Sata on Friday directed Minister of Justice Sebastian Zulu to immediately probe the sale of Zanaco to establish whether procedure was followed when Dutch bankers Rabo acquired a 49 percent stake in 2007.

“I have no problem with the probe into the 49 per cent sale of Zanaco bank. But what should be understood is that Government acted on a decision that was made in 1998 by the Chiluba government. A decision which was in the best interest of the country looking at the state the banking institution was in,” Mr Magande said.

Mr Magande said in an interview that it was regrettable that the probe has started at a time President Mwanawasa is no more because he will not be there to answer any of the queries that might arise during the inquiry.

He said during the sale of the bank, only 49 per cent shares were sold to Rabo Bank while the rest were offered to Zambians, who have since acquired the shares. “About 200 Zambians have shares in Zanaco and all the procedure into the sale of the bank shares was explained to Zambians, and to the Patriotic Front led by Mr Michal Sata and Dr. Guy Scott, who presented a petition to me.”

Mr. Magande said, “I explained the position Zanaco was in and the reason the government then decided to sell the institution (partially privatise).” He said he expects people who agreed to the decision to privatise Zanaco when called upon to appear before the commission to be truthful on the matters regarding the state of the bank at the time it was being sold to Dutch banker Rabo.

“The Levy Mwanawasa government acted on a decision that was made in 1998 by the Chiluba government because it was beneficial to the people just like the PF has continued with the MMD-initiated FISP (Fertiliser In-put Support Programme),” he said.

Zambia Union of Financial Institutions & Allied Workers (ZUFIAW) secretary General Joyce Nonde-Simukoko said the probes instituted by President Sata need support from all Zambians to clear suspicions regarding the sale of public institutions in the past.

Mrs Simukoko said people have the right to know how the former government sold public institutions because they are shareholders. “People appearing on the commission must be able to tell the truth. We do not want people who will go there and tell things to please the President at Zambians; this is the only way to clear suspicions on how public institutions were sold so that the country can move forward.

“There is a lot of gossip and rumour mongering which creates tension in the country on how government operates,” she said. She appealed to the PF government to be transparent by disclosing how much they are spending on the commissions of inquiry and the constitution review because they are accountable to the Zambian people.

Sources within the bank said Rabo Bank bought a total of 49 per cent shares from government. Of the total, four per cent were sold to Zambia National Farmers Union (ZNFU). Government retained 25 per cent while 25 per cent were sold to the public.

And ZNFU executive secretary Ndambo Ndambo has welcomed the probe saying they are ready for the outcome of the investigations. ZNFU has shares in Zanaco. Mr Ndambo said the formation of the commission of inquiry to probe the sale of Zanaco is in the best interest of the nation.

“The President might have information regarding the sale of Zanaco which the public was not privy to during the sale in 2007. As shareholders, we welcome the move on behalf of the farming community,” he said.

[Zambia Daily Mail]

Former Finance Minister, Situmbeko Musokotwane has warned of ripple effects of the announced 100 percent salary hike for health workers. Dr. Musokotwane says the decision to effect the increment whilst being commendable might result in hyper inflation in the country.

He said that the move by government to give increment to one sector of workers is unsustainable questioning government’s source of funds for the increase.

And Dr. Musokotwane has asked government to rescind the prospective decision to reverse the sale of Zanaco to Rabo Bank of the Netherlands. He has maintained that most of the commissions of inquiry established by the PF government have pre-determined outcomes.

Dr. Musokotwane was speaking to MUVI TV News.

Meanwhile,the Agriculture Technical and Professional Staff Union of Zambia have joined calls for government to spread the recent 100 percent salary hike given to health workers to all public service workers.

Union General Secretary, Joe Kamutumwa notes that the 100 percent salary hike is a reflection of the desire by the state to improve the working conditions of the entire public service.

Government recently announced a 100 percent salary increment for all health workers.

TODAY’S SCRIPTURE
“Where there is no guidance the people fall, but in abundance of counselors there is victory”
(Proverbs 11:14, NASB)

TODAY’S WORD from Joel and Victoria
Are you facing an important decision today? God wants to give you the answer. He wants to direct your steps. Many times, He will speak to us through the people He has placed in our lives. That’s why the Bible says that safety is found in a multitude of advisors.

God designed us to live in families, communities and congregations. We need to be open to receiving input from the people who are close to us. That doesn’t mean you have to follow everything everyone tells you, but if you’re in a particular situation or relationship, and all the people around you are giving you the same word of caution, it might be God trying to get a message to you. Take that advice and bring it before the Lord in prayer. Ask Him to confirm His perfect plan to your heart. Remember, wisdom comes from God and wise counsel will always be in agreement with God’s Word. He will always confirm the answer when you ask Him.

Whatever you are facing today, be open to receiving wise counsel. As you do, you will be blessed and protected and walk in confidence down the path the Lord has prepared for you!

A PRAYER FOR TODAY
Heavenly Father, thank You for the people You have placed in my life as wise counsel. Help me understand Your truth so that I can make godly choices. Keep me close to You always and lead me in the way everlasting in Jesus’ name. Amen.
— Joel & Victoria Osteen

PRESIDENT Michael Sata has directed Minister of Justice Sebastian Zulu to immediately probe the sale of the Zambia National Commercial (Zanaco) Bank to establish whether procedure was followed when Dutch bankers Rabo acquired a 49 percent stake in the institution in 2007.

The probe comes days after Government reversed the sale of telecom’s company, Zamtel, whose controversial 75 percent stake belonged to Libya’s LAPGreen but has now been placed in government hands.
The Zulu-led probe team, which will also hold public meetings starting February 1 – according to a notice published – will officially try “to determine how the sale of Zanaco was conducted and to establish whether privatisation requirements were met”.

Chana Musakanya, the bank spokesperson in an emailed statement yesterday, said “Zanaco will co-operate fully with the Commission, and has been doing so upon request. We look forward to the review of the privatisation process of Zanaco, which was extensive and took place over a period of many years.”

Government has also assured – through chief government spokesman Fackson Shamenda – that business will not get hurt during and after the probe.

Mr Shamenda said: “This is a routine check into the sale of the bank as the Government attempts to normalise some old parastatal transactions. I would like to assure both shareholders and depositors that everything is under control and no-one is bound to be hurt.”

Mr Shamenda said the exercise will extend beyond the Euro-money Award recipient of 2011 to other parastatals, in a bid to ensure that the laws of the country were followed during the transactions.
Zanaco has the largest branch network countrywide, with more than 60 branches to its credit and it also has a district representation through a partnership with Zampost, making it the largest bank by representation in Zambia, according to information on its website.

It employs more than 1, 300 employees and is also the most capitalised bank in the country, according to management, but this information has not been verified with the central bank, which keeps such records, especially after capitalisation numbers for both local and foreign banks were recently hiked by BoZ.

President Sata said during the campaign period for last year’s elections that he would investigate some transactions that occurred while he was opposition leader to establish that they were done above board.

Zanaco is among the top five banks in Zambia out of a total of 18 registered commercial banks.

[Zambia Daily Mail]

VARUN Beverages chief executive officer S Sharma has said his firm was waiting for official communication from the Government before it starts processing payment in a deferred tax refund.

“We are ready to refund the Government the money. When we receive official correspondence, the process to make payment will start we understand the Government’s position,” Mr Sharma said in an interview in Lusaka yesterday.

Finance Minister Alexander Chikwanda had earlier asked Varun management to pay back the K15 billion the firm had accumulated between 2010 and 2011 in deferred taxes including Value Added Tax which does not appear on the Zambia Development Agency Act as a tax that could be deferred.

And the Government has handed over the report by the Zambia Revenue Authority (ZRA) Commission of Inquiry to security wings to launch investigations on the 14 former senior Government officials who have been recommended for investigations.

Home Affairs Minister Kennedy Sakeni said in an interview in Lusaka yesterday that while some individuals were already under investigations since the suspected irregularities were already in the public, investigations had started on the others.

Mr Sakeni said the allegations against former president Rupiah Banda who appears on top of the list would wait for further advice from the security wings and the National Assembly but Government would not be in a position to comment on the immunity.

Mr Banda is legally immune to prosecution but there has been pressure that the Parliament should lift the immunity to allow him to stand trial and clear his name.

“As for the rest of those appearing on the list, I can safely say that investigations have started and on those already under investigations, police will continue because that is the mandate the people of Zambia have given us,” Mr Sakeni said.

Mr Sakeni said the Government wanted the truth to come out and it was also an opportunity for those suspected to have engaged in corrupt activities to clear their names.

He said bad names should not continue haunting them but it was incumbent upon them to clear their names.

On Thursday, Mr Chikwanda announced that all former Government officials appearing on the list compiled by the ZRA commission would be investigated and prosecuted.

Mr Chikwanda also said the report and recommendations by the commission was adopted in full but assured that the Government did not have any scores to settle.

Mr Banda appears top of the list in the report which also had 13 other names.

Others are former minister of Finance and National Planning, Situmbeko Musokotwane and former Works and Supply minister, Mike Mulongoti.

The resolution is hinged on recommendations to Cabinet by the Kingsley Chanda-Commission of Inquiry in the 117-paged report that was handed over to President Michael Sata last month.

Mr Chikwanda said Cabinet held a meeting on Wednesday at which it was resolved that Mr Banda and 13 other officials listed in the report should stand trial on allegations of corruption, abuse of authority and generally breaching financial regulations.

The report recommends that Mr Banda should be tried because he allegedly participated in the procurement of four extra border cargo scanners and for his alleged role in increasing a loan from China from US$100 million to US$125 million. A Chinese company, Nuctech, was single-sourced to come and manage the scanners.

Mr Banda has been a subject of debate on whether his immunity should be lifted or not so that he could have an opportunity to clear his name of allegations of impropriety.

The report also reveals that Dr Musokotwane’s company, ZamBuild Investment Limited, is alleged to have supplied bricks to Varun Beverages of Lusaka, a company he is alleged to have earlier awarded tax concessions for five years.

Meanwhile, spokesperson of the security team Charity Chanda said yesterday that investigations in relation to suspected scams at ZRA were launched before the report was made public.

She said warn-and-caution statements were recorded from former ZRA commissioner general Wisdon Nhekairo, ZRA board secretary Nana Mudenda on the basis of the same offences highlighted in the report.

“The two were cautioned on January 9 and 12, 2012, respectively. This was in connection with the fraudulent engagement of Bradwell Global Corporation to operate and maintain eight border scanners,” she said.

MMD Mwandi MP Michael Kaingu has won the case in which his election was petitioned in the High Court by the PF and UPND losing candidates. The outcome of the court process has elated Mr. Kaingu who says the judiciary has maintained its integrity despite calls for its restructuring.

He charges that the petitions by the PF losing candidates were meant to discredit the MMD MPs even where they did not have proper evidence of electoral malpractices.

And the Lusaka High court has declared MMD Mpongwe MP Gabriel Namulambe as the duly elected MP for the constituency. Court Judge in charge Mwiinde Siavwapa noted that out of the 13 allegations that were labeled against Mr Namulambe, five were proved but the question was on whether the five influenced the majority of voters to vote for him.

This is the fourth petition that PF is losing within a period of two weeks. The ruling party has petitioned over 50 parliamentarian seats from the September 20 elections.

MUVITV

President Michael Sata has said Zambians living abroad should emulate their counterparts from other countries who send wealth back home to contribute to national economic development.

President Said it was not good for Zambian nationals in the diaspora to live a comfortable life while the majority of their relatives back home were wallowing in poverty.

Addressing Zambian families living in Adds Abba, Ethiopia Thursday night during a dinner held at the residence of Zambia’s Ambassador to that country, President Sata said those living abroad should not forget about their country.

“Some of you are so detached from Zambia that even your children are failing to speak a local language. You are very comfortable here,” President Sata said.

President Sata sent the gathering into laughter when he observed that if talking were an industry, Zambia would have already prospered to greater heights than where it is now.

He however observed that most people in Zambia just talk about the country and not looking at what they can do for their motherland.

He gave an example of countries such as India which have moved to great heights economically because of having dedicated nationals who were investing back home to contribute to national development.

[pullquote]“Some of you are so detached from Zambia that even your children are failing to speak a local language. You are very comfortable here,” President Sata said.[/pullquote]

“You must always think about your poor relatives and see what you can do to improve their welfare,” he emphasized.

President Sata assured Zambians living abroad that the PF administration will welcome ideas or initiatives that are aiming and finding ways of making them contribute to national development.

Over 30 families living in Addis Ababa attended the dinner and were given an opportunity to greet the Zambian Head of state at the high table.

Those who attended the function included Foreign Affairs Minister Given Lubinda, Commerce Trade and Industry Bob Sichinga, Justice Deputy Minister Ngosa Simbyakula and Zambia’s Ambassador to Ethiopia Francis Simenda.

Others were Cabinet Office Permanent Secretary for Administration Annie Sinyangwe, Foreign Affairs Permanent Secretary Peter Kasanda and other senior officials.

President Sata arrived in Addis Ababa yesterday, accompanied by first lady Dr. Christine Kaseba to attend the AU summit which opens next Sunday.

On Saturday, President Sata will be among 53 heads of state and representatives of government attending the launch of the new AU conference centre and office complex in Addis Ababa.

And Zambia’s Ambassador to Ethiopia Francis Simenda has thanked President Sata for appointing him to serve at the Zambian mission in Addis Ababa, Ethiopia.

Ambassador Simenda said it was a rare opportunity for him to be sent to Addis Ababa among the many equally qualified Zambians.

He was speaking at the meet the Zambians living in Addis Ababa Presidential dinner last night held at his residence.

Ambassador Simenda said he will work with Zambians living in Ethiopia to contribute to Zambia’s economic development.

Ambassador Simenda, who took over from counterpart Albert Muchanga, assumed office a week ago.

ZANIS