GOVERNMENT has constituted a commission of inquiry to investigate the US$8.25 million (about K42 billion) sale of the Zambia National Commercial Bank (ZANACO) to Rabobank of the Netherlands.

In 2006, the Government sold 49 per cent shares in Zanaco to Rabobank after protracted negotiations.

As part of the sale and purchase agreement, Rabobank took over management rights of Zanaco while the Government retained its representation in the bank at board level which included three members from Rabobank, two Government representatives and one representative appointed by board members.

The transaction was conducted by the MMD government under late president Levy Mwanawasa.

Meanwhile, Zanaco Managing Director, Martyn Schouten, says the bank would be readily available to help the commission throughout the process and advised customers that operations would remain unaffected during the period of enquiry.

Mr Schouten said the bank acknowledged the announcement of the formation of a commission of inquiry pertaining to the sale of the bank to Rabobank of the Netherlands in 2006.

“Zanaco wishes to confirm its full cooperation throughout this enquiry to assist in offering a transparent and professional outcome,” Mr Schouten said.

Justice Minister Sebastian Zulu confirmed that President Sata had directed him to appoint a team of officials from the Ministry of Justice and experts from the private sector to investigate what transpired during the sale and how the resources were used.

Mr Zulu said in an interview in Lusaka yesterday that the commission, which he would chair, would commence sittings next month.

“We are putting together a team of experts who will include auditors, prosecutors, bankers and consultants because we want to do a good job,” Mr Zulu said.

The minister said during investigations, transactions that would suggest the prevalence of fraud would be handed over to the security wings.

He said prominent politicians who were influential during the sale of the bank would be summoned to give evidence.

The secretariat of the commission had been set up at the Mulungushi International Conference in Lusaka and that the programme of the sittings was still being prepared.

Zanaco’s 49 per cent shares were transferred to Rabo Financial Institutions Development, (RFID) which is a subsidiary of Rabobank.

The opposition political parties at the time, including the Patriotic Front (PF) and trade unions had opposed the sale, fearing the new owner could cut jobs and close branches in rural areas.

They also felt that the $8.25 million was low for the bank which had an attractive asset value with branches spread across the country including rural areas.

Mr Zulu said there would be no malice in the conduct of the inquiry and was not targeted at former Government officials who served in the previous Government.

He said he would use his experience as a prosecutor to engage people who were directly involved in the sale and ensure appropriate action was taken.

[Times of Zambia]

United Party for National Development (UPND) president Hakainde Hichilema has said that he is puzzled by President Michael Sata’s sudden change of thought on the Barotseland agreement which he promised to honour during campaigns.

Mr Hichilema has further accused President Michael Sata of dragging his feet when dealing with issue of the Barotseland agreement of 1964.

He said that the failure by the President to act quickly on the Barotseland agreement will increase tension in the western province.

Mr Hichilema told QFM that the PF won the 20th September elections because of the promises it made to the people of western province on the Barotseland agreement.

He said that President Sata should therefore fulfill the promise he made to the people of Western Province on the challenges they are facing.

Mr Hichilema added that it was President Sata who was inciting the people of western province on the Barotseland agreement and not the other way round.

He further stated that the issue of the Barotseland agreement should not be politicized, but requires urgent attention to address.

QFM

United Party for National Development UPND leader Hakainde Hichilema has charged that foreign investment is threatened under the leadership of the Patriotic Front.

Mr. Hichilema says President Sata has since coming to power not given confidence to foreign investors.

He adds that the recent statement the President made on the alleged fake money in circulation further heightened the concerns of investors.

Mr. Hichilema has advised President Sata not to be careless in making statements that border on the economy of the country.

The opposition leader says his party is concerned with such statements coming from the head of state.

Meanwhile, Alliance for Democracy and Development ADD leader Charles Milupi has said that President Michael Sata was wrong when he referred to Barotseland agreement advocates as being in a weaker position.

Mr. Milupi said that though the call for dialogue is welcome, the Republican President was rather sarcastic when he stated that those trying to be confrontational on the Barotseland agreement were in a weaker position.

He said that Barotseland agreement advocates have a right to ask what they asked for, stating that the language the President used was a bit hard.

Republican president Michael Sata this week urged the people of western province not to resort to confrontation in dealing with issues surrounding the Barotseland agreement.

But Mr. Milupi has urged the president not to use perceived bad words in trying to resolve challenges that have been facing western province.

[pullquote]Mr. Milupi said that though the call for dialogue is welcome, the Republican President was rather sarcastic when he stated that those trying to be confrontational on the Barotseland agreement were in a weaker position.[/pullquote]

And The Foundation for Democratic Process FODEP has called on first republican president Dr. Kenneth Kaunda to intervene in resolving the Barotseland agreement of 1964.

FODEP executive director MacDonald Chipenzi says now that republican President Michael Sata has opened dialogue on the same, it is important that the first republican president intervenes.

Mr. Chipenzi says Dr. Kaunda being a signatory to the agreement should come forward and offer advice on how the issue of the Barotseland agreement should be resolved.

In an interview with QFM radio, Mr Chipenzi has welcomed government’s stance to promote dialogue in resolving issues surrounding the controversy in Western Province.

He adds that there is need for unity in the country in view of the many developmental challenges being faced.

The FODEP executive director further says that there is need for government to ensure that all the issues surrounding the Barotseland agreement are resolved in the shortest period of time.

QFM

President Michael Sata has agreed to reconcile with his Malawian counterpart Bingu Wa Mutharika. QFM News reports that President Sata told journalists at State house this morning that there is need for him and his Malawian counterpart to put their differences aside in the interest of Zambia and Malawi.

The President said he has since sent a message to President Bingu Wa Mutharika through that country’s former head of State Bakili Muluzi who is in Zambia for a private visit indicating his willingness to reconcile their differences.

President Sata was On March 15, 2007, deported from Malawi upon his arrival at Chileka International Airport in Blantyre and was driven back to Zambia through Mwami Border in Chipata.

The Malawian government has up to date not explained why it deported Mr. Sata from that country.

Earlier President Sata held a closed door meeting with the former Malawian Bakili Muluzi which lasted about 40 minutes.

After the meeting, the President saw-off Dr. Muluzi who has been in the country for the past two days.

QFM

By Chanda Mwenya

Though Zambians are crudely said to be a people with short memory, at least they can vividly remember what they were told and promised barely 90 days ago. Just incase some have easily forgotten. The Patriotic Front-PF, a then hardline opposition party openly and repeatedly promised the people of Zambia that it would lower taxes, create more jobs, put more money in people’s pockets, reintroduce the windfall, restore the Barotse agreement, and deriver a people driven constitution within 90 days of their forming government.

Without necessarily giving itself a specific time frame the PF also promised to fight corruption and revise the sale of Finance bank and Zamtel once voted.
It doesn’t require a super IQ and an elephant memory to remember and see which of the campaign promises have been realised according to the Patriotic Front gospel.

(i) Lower Taxes and More Money in People’s Pockets? These two promises can technically be married and analyzed together as some economists and optimistic citizens have struggled to do.

The PF government has exempted workers earning less than 2million Kwacha from paying Pay as you Earn (PAYE). Arguably, making such but few people have more money in the pockets. The government has also reduced Bank interest rates making liquidity more available, as Bob Sichinga smartly puts it, but these are some fancy terminologies which made the former government to become unpopular. People in Shangombo and Chadiza neither understand nor eat liquidity, they need and want to see physical and direct benefits from the government.
They want their heads of cattle free from denkede, the foot and mouth disease, people want decent shelter and afford 3 health meals a day, they want to take their children to school and when they fall sick receive treatment.
Going by the lesson given to the former ruling party, Zambians have very little to do with Liquidity issues.

(ii) Job Creation?

So far so bad….as far as my eye can see there has been more out cry of the few employed people, fighting for better condition of service, while the unlucky ones have been fired in the 90 days process.

(iv) Delivering the Constitution? -It has not been done period.

(v) Reintroducing the Windfall tax?– Shiiiiiiiiii

(vi) Restoring the Barotse Agreement? -Don’t Kubeba

(vii) Re-possessing Finance Bank?– Was done with immediate effect

(viii) Re-possessing and Zamtel? – Not yet But……

(ix) Fighting Corruption? With immediate effect….

While it clear to see that the Patriotic Front has lamentably failed to honor some of their campaign promise- at least, borrowing George Kunda’s words. It also refreshing to note that the party has made positive scores and it is still making efforts to implement policies that would improve Zambia’s social, economical and political landscape.
Needless to say the Patriotic Front has made its own mistake within the 90 days period that it has been in government. But don’t Kubeba that we are still counting.