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Bank of Zambia governor Michael Gondwe said that the central bank is hoping that the procedure to introduce the new notes will be done within six months.
Dr. Gondwe however, noted that the central bank will ensure that all the laid down regulations for printing new notes are followed.
Dr Gondwe added that once the new denominations have been rolled out, the old denominations will have to be withdrawn from circulation gradually.
The Bank Governor’s comments comes after Cabinet approved the rebasing of the Zambian kwacha by dividing the current notes by 1000.
This will consequently result in the removal of the three zero’s from the denominations of K 1,000 kwacha and above.
Therefore 1 000 , 5 000, 10,000 and 50 000 kwacha will become K1, K5, K 10 and K 50 respectively while the other smaller denominations will be in coin form.
Finance and National planning Minister Alexander Chikwanda h announced at a press briefing that a rebased Zambian Kwacha will address the costs associated with the accumulated loss in the value of the Kwacha experienced during the high inflation episode that undermine the currency basic function as a store of value, medium of exchange and standard of value.
Mr. Chikwanda explains that rebasing the kwacha will also help reduce the cost of customizing standard accounting packages that are purchased by businesses.
The minister also said cabinet and the Bank of Zambia board have also recommended that the banking sector be recapitalized in line with section 83 of the Banking and Financial Services Act.
Mr. Chikwanda added that the central bank shall revise the minimum capital for commercial banks.
This will result in the increase in the minimum capital requirement from the current K12 Billion to K 104 billion for local commercial banks while K520 Billion will be for foreign commercial banks.
Veteran Nkana striker Douglas Chiwaya has declared he has no intention to retire from active football any time soon.
Chiwaya, who turns 42 this year, is one of the longest serving players in the Super Division.
In an interview with with LT Sports in Kitwe on Monday,the former Power Dynamos and Kitwe United player insisted he will continue playing for as long as his legs take him towards the oppositions goalmouth.
“I am not retiring. Even this year I will continue playing,” Chiwaya said.
“As you can see, I am not injured and I am fit! So why should I stop playing,” he add.
Chiwaya,who is also a miner at Mopani Copper Mines in Kitwe, said he has already started looking forward to the 2012 season.
” I want my team Nkana to perform better this year. It was good we finished in the top eight,” he said.
“I think this year we (Nkana) can even finish in the top four if we play well,” Chiwaya stressed.
Zambia will take back a 75 percent stake in local fixed-line operator Zamtel that is currently held by Lybia’s LAP Green Networks, Finance Minister Alexander Chikwanda said on Monday.
“We made a decision to restore Zamtel back to the people of Zambia,” Chikwanda said at a media briefing.
“The plight of the workers may be affected temporarily but we are trying to put up something permanent. If we find Zamtel is not adequately capitalised we will avail fresh capital.”
Zambia last week seized bank accounts belonging to Zamtel as part of a money-laundering investigation. The company has denied any wrongdoing.
Under its previous government, Zambia sold a majority stake in Zamtel to the Libyan operator for $257 million. A government inquiry in November ruled that 2010 transaction illegal.
Chikwanda also said Zambia would rebase the kwacha currency by lopping off three zeros, a move that should make it easier for foreign investors to participate in the economy,
“The rebasing had to be done when all the fundamentals like inflation and GDP growth were right and we think they are now right,” Chikwanda said.
Currency rebasing usually does not change the exchange value of the currency and is introduced to make commercial calculations easier.
The rebasing might be kwacha positive “to the extent that it is a continued commitment to low, and stable inflation”, said Razia Khan, head of Africa research at Standard Chartered.
The kwacha was last trading at 5,120 against the dollar from 5,123 at the end of last week.
Government would also raise commercial banks’ capital requirements to 104 billion kwacha, and 250 billion kwacha for foreign commercial banks from 12 billion kwacha to make them more resilient to economic shocks.
“The measure to raise the minimum capital is intended to mobilise additional resources to enable banks participate more effectively in growing the economy by increasing credit available to the private sector,” Chikwanda said.
Government has hinted at involving the American Government to trace the authors of the malicious rumours that President Micheal Sata had been assassinated.
Home affairs minister Kennedy Sakeni has told Journalists in Lusaka this morning that the website on which the article alleging that President Sata had been assassinated in the early hours of yesterday had appeared is believed to be hosted in the USA.
Mr. Sakeni says investigations are underway and adding that the people behind such false reports are believed to be people that were defeated in the last elections.
But when told by QFM news that the Zambia police had not received any information on the matter, Mr. Sakeni expressed disappointment that the Zambia Police was waiting for State house to furnish them with information on such a sensitive matter which was already in the public domain.
And when earlier contacted, Zambia police spokesperson Elizabeth Kanjela told QFM that the police service had not received any official information from State house on the matter.
THE Judiciary failed to account for more than K700 million collected from various courts around the country as fees and fines, the Auditor General’s report for 2010 has revealed.
According to the report, the Judiciary had estimated revenue and expenditure for the financial year ended December 31, 2010, a total provision of K5,046,803,152 for the collection comprising fines of court fees and library services but the actual collections was K5,803,502,484 resulting in an over collection of K756,699,332 which was above the budget.
The examination of revenue of accounts and other related records maintained at Judiciary headquarters, Lusaka magistrate complex, Sheriff’s office and selected courts in Lusaka, Chipata, Petauke, Lundazi, Solwezi, Mufumbwe, Ndola, Luanshya, Chingola, Kasama, Mpika and Nakonde could not account for K706,454,306 because there were no deposit slips to show proof of banking and there was also no cash at hand.
This was contrary to Financial and Regulation No. 129. The report also revealed that contrary to Financial Regulation No.121 there were delays of periods ranging from three to 549 days in banking revenue collected by various courts despite the proximity to banking facilities.
There were 41 general receipt books that were not presented for audit verification with Matero local court topping the list of the courts that did not present the receipts for auditing.
The report indicated that an examination of bank statements for the judiciary fees transit account held at Finance Bank in Nakonde revealed that fees deposited into the account were not being transferred by the bank to the Judiciary headquarters fees account in Lusaka and had accumulated to K40,514,263 as at September 9, 2011.
THE Southern African Centre for Constructive Resolution of Disputes (SACCORD) has said the resignation of Chief Justice Ernest Sakala would restore confidence in the judiciary, which is currently suffering from lack of confidence.
In an interview in Lusaka yesterday, SACCORD information officer Obby Chibuluma, however, said a comprehensive evaluation of what had gone wrong in the Judiciary was desirable.
“As much as we support the calls for the reforms of the Judiciary, we must, however, be careful that we do not erode the people’s confidence in this very important arm of the Government. While there are some bad eggs we still have many professional people in the Judiciary.
“Resignation of the Chief Justice may be part of the solution to help in restoring confidence in the Judiciary, though there is need for a comprehensive evaluation of the problems in the Judiciary which must be undertaken,” he said.
Mr Chibuluma said caution over the reforms in the Judiciary should be exercised because many people looked up to the courts for justice.
“Many Zambians are before these courts hence we should ensure that we protect the credibility of the Judiciary as an important arm of the Government, especially in a democracy,” he said.
And a lecturer in the School of law at the Zambian Open University (ZAOU) Buchezia Mwalongo said the entire judicial system should be reformed.
“Every institution in Zambia is corrupt and we need to reform these institutions but this will have to take some time, we can remove the Chief Justice then what. What we need is to reform the entire system,” he said.
Mr Mwalongo said the attacks on the Judiciary were not healthy for the country.
“For me, I think reforms are necessary but we must be cautious with the manner we undertake these reforms,” he said.
Pressure has been mounting on the need to reform the Judiciary to restore public confidence in the Government arm.
In order for zambia to peform well in the AFCON ,goal keeper , Kennedy Mweene , needs to be at his best.
Kennedy Mweene is a Zambian football goalkeeper who plays for South African Premier Soccer League club Free State Stars. He is the current Captain of his club and has been on many occasions a Captain of his country.
Club career
Mweene is arguably one of the best goalkeepers in the South African PSL having won the Premier soccer leagues Best Goalkeeper of the Year award in the 2009/ 2010 season. The player has been in big demand with all of the top SA Big spending clubs but has remained loyal to his club Free State Stars. He is currently contracted until 30 June 2014.
International career
He is the first-choice goalkeeper for Zambia since making his debut in 2004 and was a participant at the 2006 African Nations Cup, 2008 African Nations Cup and the 2010 African Nations Cup. The player has over 75 appearances for Zambia with approximately 54 Official caps.
MMD presidential hopefuls (from l) Moses Muteteka, Felix Mutati and Kabinga Pande confer during the party’s national executive committee meeting in Lusaka at the weekend.
THE fight for the MMD presidency has resumed in earnest after a short lull with Chisamba parliamentarian Moses Muteteka appealing to his rival Dr Nevers Mumba, whom he described as “childish”, to go back to God and “repent” for abandoning Him.
But Dr Mumba has urged his rivals not to launch personal attacks on him because he did not target them exclusively in his call for transparency and accountability.
Mr Muteteka was reacting to remarks attributed to Dr Mumba that all MMD aspiring candidates disclose their source of wealth before they are put into office to enhance transparency and morality.
He said Dr Mumba has no moral right to challenge other members of the MMD because he has failed not only the party but Zambians in general in the various capacities he has served.
“What integrity is he talking about when he abandoned his flock for political office? He was also fired as the republican vice president because he failed to perform; he failed the MMD party and that was the reason the then president fired him.
Instead of challenging other candidates, my advice to him would be for him to first go back and seek God’s forgiveness for embarrassing Him and abandoning his flock before he can start pointing fingers at other people,” Mr Muteteka said.
Mr Muteteka said he had no problem declaring his source of wealth to the party members and the general public, but described Dr Mumba’s utterances as “childish and immaterial” to the growth of the MMD.
He said his intentions to vie for the MMD top position was not to amass wealth through dubious ways and mislead the people, but to contribute to the betterment of the party as a man of integrity, honesty and hard work.
“I am a man of the people and I understand the challenges in MMD. I am not vying for the MMD presidency because I want to steal from the party and the people; I am standing because I can deliver as a leader.
“I have proved that I can deliver through the various positions that I have held in Government. He should not start behaving like a champion in MMD because the party is still formidable and existed before he came along,” he said.
Another aspiring candidate, Felix Mutati, who refused to comment on Dr Mumba’s challenge, said MMD members must learn to sort out party issues internally without involving the media and “outsiders”.
A political analys,t Sunday Chanda, said there was no justification in calls for MMD presidential aspiring candidates to be compelled to disclose their source of income.
Mr Chanda, who was also MMD’s aspiring candidate for Kanchibiya constitituency in the 2011 general said the MMD party does not need a broke president as he would be easy to compromise or eventually sell the party to the highest bidder.
“Let’s be honest, we can’t afford a financially fragile leader at this stage. Let those making this misplaced call refer their arguments to the functions of the party president,” Mr Chanda said.
However, Dr Mumba said it was unfortunate that some aspiring candidates had personalised the challenge carried in yesterday’s edition of the Daily Mail because the statement was not exclusively meant for those vying for the MMD presidency but all party members wishing to contest any position in the party.
Dr Mumba said his proposal for all MMD members to declare their source of wealth before being elected into office would help change people’s perception that it is a party for “corrupt people”.
“It is regrettable that some aspiring candidates have decided to start attacking me because that statement was not targeted at them but all party members, and it is for the good of the party.
“I have also advocated for all leaders, including myself, to declare our source of income to public scrutiny so that we are held accountable by our members. It is unfortunate that people would attack me based on unsubstantiated reports,” he said.
Government warned job agencies charging fees that they risk prosecution for obtaining money by false pretences from unsuspecting desperate job seekers.
Minister of Labour and Sports Chishimba Kambwili has also said Government will soon be carrying out an audit to establish how much the employment agencies have collected from ‘clients’.
The country, whose job market both in the formal and informal sectors is limited and estimated at only 11 percent, has experienced a rapid rise in the number of employment agencies, which are charging unsuspecting employment seekers.
This is contrary to the Employment Act section 59(2), which states that the employment agency shall not charge the prospective employee for any services rendered.
Mr Kambwili said in an interview in Lusaka that the Labour Commissioner will conduct a comprehensive audit of all institutions operating as employment agencies around the country.
“I am warning them, and let them not take this lightly because we will soon take tough action against them.
“We will be carrying out an audit of how much they have collected from people. If they are found to have collected money, they will be prosecuted for obtaining money by false pretences,” he said.
Mr Kambwili said Government will not tolerate the situation because it borders on deception and is aimed at extorting money from “desperate” employment seekers.
He said Government is also working towards updating labour statistics.
Mr Kambwili said it is unfortunate that the previous MMD government had not compiled the statistics, which are key to providing vital information for job creation.
“I will next week be sending the Labour Commissioner to audit these bogus (employment) agencies. We are moving in swiftly and we will definitely take action. We do not want this to continue…we are not going to allow this like the MMD did,” Mr Kambwili said.
He urged Zambians to desist from using bogus employment agencies because they are mostly bent on extracting monies from people.
Mr Kambwili said Government is also aware of some bogus employment agencies that have devised sophisticated means to extract money from employment seekers via short text message (SMS) service.
“We are aware of all this nonsense and we are not going to sit and allow these bogus companies to swindle people out of money on the pretext that they are finding jobs for them. They should not take advantage of people who are desperate and looking for employment,” he said.
File: Some people pack left over food at the Africa Freedom Day celebrations in Lusaka
THE Jesuit Centre for Theological Reflection (JCTR) says the cost of living in Zambia is still high, despite the inflation rate being stable in 2011.
JCTR information officer Twaambo Kanene-Mwale says the Basic Needs Basket (BNB) analysis for 2011 shows that the cost of living remained consistently over K2.9 million for an average family of six.
Mrs Kanene-Mwale said this in a statement issued in Lusaka at the weekend.
“When the inflation rate is stable, it is expected that the purchasing power will also remain stable. However, while 2011 was a good year at a macro-economic level, at a micro level the cost of living remained high and this may be exacerbated by the debt crisis with the Kwacha weakening and a decline in purchasing,” Mrs Kanene-Mwale said.
She said Zambia has experienced profound improvements in macro-economic performance in the last decade, having recently attained middle-income status.
Mrs Kanene-Mwale said there has been consistent improvement in gross domestic product at six percent in 2011 and a drastic stability in the inflation rate from around 30 percent in 2000, to an average of 7.2 percent in 2011.
The minimum cost for an average family of six to meet basic needs was K2.9 million for the month of December and the JCTR December release projects the cost of food items at K818, 750 and the cost of essential non-food items at about K2 million for Lusaka residents.
She said Zambians should begin to realise the benefits of macroeconomic improvements, especially in relation to inflation, with a commensurate reduction in the price of commodities.
Mrs Kanene-Mwale said a stable inflation rate reduces the severity of the impact of economic recession, allowing the labour market to adjust to changes.
He said the Patriotic Front (PF) government should sustain the economic gains of the last decade and remain fully cognisant of the practical anxieties of global developments on the average Zambian.
Mrs Kanene-Mwale said the cost of living in Zambia continues to be high with an estimated poverty rate of 60 percent and in December, the price of mealie meal and bread reduced nominally.
Community Development, Mother and Child Health Deputy Minister Jean Kapata
Mandevu Member of Parliament, Jean Kapata has been implicated in the Chifundo Kondani Market land confusion in Lusaka’s Chaisa Compound.
Market Board Secretary,James Banda has alleged that the current confusion at the Market has been partly influenced by area Member of Parliament , Jean Kapata.
Mr Banda said that the sentiments held by the Marketeers that the Market board has sold the market to pave way for construction of shops are not true.
The Chifundo Kondani Marketeers have accused the Market Board of corruptly selling the market to some investors to pave way for constructions of shops on the said land.
Meanwhile, many would have thought the problems of illegal allocation of land by political party cadres are long gone but this is not so because the ruling Patriotic Front (PF) government seems to have continued with the trend.
The PF party cadres on Saturday beat up residents of plot 70/70 commonly known, as Baghdad compound after the police demolished houses that were illegally build on titled land.
[pullquote]The PF cadres allegedly beat up residents and broke some houses on the pretext that residents are conniving with law enforcement agencies to grab land that had been illegally allocated to unsuspecting residents.[/pullquote]
The PF cadres allegedly beat up residents and broke some houses on the pretext that residents are conniving with law enforcement agencies to grab land that had been illegally allocated to unsuspecting residents.
One of the residents Doris Mulenga, who was severely beaten and subsequently, injured on her right hand, is appealing to government to intervene.
State House is saddened with the malicious, sadistic and unfounded story which is circulating that President Michael Chilufya Sata has died.
President Michael Sata’s Special Assistant for Press and Public Relations George Chillah says this follows the publication of an article he describes as insensible and sickening by an uncouth website.
According to Mr Chellah, the article claims that the Head of State was assassinated in the early hours of today, January 22, 2012.
Mr Chellah said this in a press statement issued to the media today.
He said State House is aware that such horrid stories are being perpetrated by certain rogue elements with a bulk of them being investigated for gross misconduct and corruption in the ongoing crusade against graft.
Mr Chellah says these elements are being aided in this attempt to create panic and despondency among Zambians by another cluster of frustrated politicians who cannot stomach the reality of losing an election.
He says the Presidency is wide awake to this low-priced political campaign and has ordered the state security wings to straight away bring the perpetrators of such evil acts to book.
Mr Chellah says Mr Sata has ignored similar stories previously but that now that the President, state house will let the state security wings chat the way forward on this and any related matters in order to safeguard and preserve the peace this country.
He has warned that those behind these thoughtless, persistent and inhumane stories circulating in the country, especially on the Internet should to stop or meet the penalty of their deeds.
Zambia national soccer team head coach Herve Renard
Herve Renard has said he was never worried that his strikers would deliver at the Africa Cup.
Zambia had struggled to score goals in their buildup matches for the Africa Cup scoring one goal from their four high profile friendly matches.
On Saturday, Zambia beat Senegal 2-1 in their opening Africa Cup Group A game in Bata.
“I said it in 2010 I heard the same thing. How can you compare a friendly against Namibia when Rainford Kalaba is playing not to get an injury?” Renard said.
“This is a competition. How can you ask a player to be motivated against Namibia in a friendly and not Senegal?”
Renard also gave an example of when he came with Angola for a friendly against Zambia enroute to Malawi to play a CHAN qualifying decider.
“I came with Angola national team we lost to Zambia in training game and on Saturday you lost (your qualifier) and we qualified for CHAN,” Renard said.
South Africa eliminated Zambia to qualify for the 2011 CHAN.
President Michael Sata has urged investors in Zambia and ZAMTEL workers not to panic or be used by individuals who have axes to grind with the Government and are peddling all kinds of lies as a cover for their crimes.
The President has said that the PF Government’s primary duty was to be custodian of public interest and it therefore has a duty to correct falsehoods, distortions and misrepresentation of facts by elements that have unscrupulously plundered public resources.
“Despite the release of the Report of the committee investigating into the sale of ZAMTEL to LAP Green Networks to the public, members of the tainted MMD administration assisted by some imprudent media houses are still having a field day spreading falsehoods, alarm and despondency,” says President Sata.
President Sata underlined that LAP Green failed to meet three cardinal bench marks prescribed by the Zambia Development Agency (ZDA) in the sale process.
“And these are: (a) a minimum of five years of licensed operation in the telecommunications industry (b) have more than three million subscribers on fixed, mobile or fixed wireless networks; and (c) a minimum of US$250 million Shareholders’ equity for private entities or a minimum market capitalization of US$500 million for public listed entities,” President Sata said.
“LAP Green all the same had the sale consummated by a corrupt regime which disregarded its own legal requirements of effecting the tender process, the mandatory legal consent by the Attorney General and ensuring valuation within the provisions of our laws. Although, there is no documentary evidence of any valuation, R.P Capital were paid US$12.6 million which was shared with the corrupt collaborators with explicit assistance by the Government officers at various levels.”
Mr Sata said that Government is convinced that a deal of this nature shrouded in insidious corruption cannot be sustained by any court of law in the international community.
“Therefore, the scare mongering tactics by Dr. Situmbeko Musokotwane intended to cover up his crimes is essentially an exercise in futility. The PF Government’s unequivocal stance on zero tolerance for corruption has the fullest support of the international community which abhors resource misdirection through corruption, a big contributory factor to Africa’s retardation,” President Sata said.
“Since the advent of the PF administration all donor institutions and Governments have increased their aid outlays to Zambia and the challenge is in fact for Zambia to develop adequate capacity to use the external aid timely and effectively. ”, Mr Sata Said
On investment, President Sata said it was flowing into the country at a commendable pace because investors trust the PF policy consistency and predictability, the pillars of credibility.
“The type of investors that are idols of the likes of Dr. Musokotwane who come via the route or channel of corruption are a luxury Zambians can do without. Make no mistake about it, for we are determined to see transparency, accountability and good business moral codes in all spheres of Governance,” the President says.
“Investors who are here and those planning to invest in our country are assured Zambia is a reliable investment destination. Zambia has not only both peace and stability but is irrevocably committed to the rule of law. What is more, there are no restrictions let alone cumbersome procedures for externalist of dividends.”
The President said that suggestions of investors shunning Zambia is a misperception and pipe dream of Dr. Musokotwane.
“The former minister has as yet a lot of things to answer including the tax deferment concessions he gave in ways which Zambian law does not mandate. Sabre rattling as a defence, he will soon prove, is unsustainable and will not get him off the hook even with the lavish coverage he is getting from reckless media houses with a strange agenda,” President Sata said.
“This Government will not be stampeded into precipitate actions and if the Government is slow in bringing to book those who have committed crimes against Zambia, it is only because they want to follow the due process of the law. We urge ZAMTEL workers not to panic or be used by people who have axes to grind and who are peddling all kinds of lies as a cover for their misdeeds. If any accounts have been frozen it is to prevent the money from being taken out and it is basically in public interest.” , Mr Sata said
President Sata emphasized that when ZAMTEL has been sorted out the majority of the shares will be owned by Zambians.
“ZAMTEL is a viable proposition when things have been realigned and streamlined. The temporary setbacks of the workers will be attended to so that workers are not subjected to uncertainties any more. Government has both the will and capacity to meaningfully capitalize ZAMTEL,” President Sata said.
“As Head of State, I will never sideline my commitment to safeguard and superintend the interests of the Zambian people. Zambians with the passage of time will realize that they never misallocated their trust by entrusting me to preside over their fate and destiny.”
"Ssshhh..DONCHI KUBEBA" ..Chipollopolo boys celebrating Mayuka's opening goal- Picture by Reuters
Isaac Chansa said that Zambia’s win over Senegal was down to belief.
Zambia on Saturday beat host favorites Senegal 2-1 in both sides opening Africa Cup Group A match at the Estadio de Bata to go top of the table in their pool.
“We believed in ourselves and we prepared very well,” Chansa said
“We made it and we are very proud of ourselves and now want to concentrate on our next games.”
Zambia were plain sailing in the first half against Senegal and got their first half goals from Rainford Kalaba and Emmanuel Mayuka in the 12th and 22nd minutes respectively.
Dame N’Doye got Senegals lone goal in the 73rd minute.
Zambia have three points, level with second placed Equatorial Guinea who beat Libya 1-0 in the tournaments first game on the same day.
