THE Government has advised people with divergent views over sale of ZAMTEL to allow the Zambia Development Agency (ZDA) to do its work professionally.

Chief Government spokesperson Ronnie Shikapwasha said the Government had confidence in ZDA and felt that it would carry out the sale of ZAMTEL competently.

In an interview in Lusaka yesterday, Lieutenant General Shikapwasha, who is also Information and Broadcasting Minister, said the calls by some sections of society to block the sale of Zamtel were not being done in good faith.

He said the Government would continue to allow the ZDA to conduct their work in a professional manner as the agency had capable men and women who would conduct the sale of the company in the interest of the nation.

“My advice to those opposed to the sale of ZAMTEL is that they should allow ZDA to do the work professionally. This tendency of critising everything will not help us,” he said.

He said the decision to sell Zamtel was being done in good faith and wondered why some people were critising the move which was aimed at serving the company from total collapse.

The Government had no hand in the sale of ZAMTEL and it was for this reason that it had allowed the agency to the work without interference.

Last week, ZDA announced that two of India’s biggest telecommunications firms and one of Africa’s largest communication service providers, were among eight foreign companies and consortia that have been shortlisted to buy a stake in ZAMTEL.

South Africa’s Telkom, one of Africa’s largest telecommunications firms in terms of operating revenue and assets is on the list of the shortlisted firms.

Telkom has been pursuing opportunities in Africa since it sold a 15 per cent stake in Vodacom to Britain’s Vodafone for $3 billion.

India’s State-owned Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), which are both part of a consortium and also looking to buy a 46 per cent stake in Kuwait Mobile firm Zain, also prequalified to bid.

BSNL has cash reserves of more than $7 billion and is the second-largest telecommunications company in India with 57.3 million mobile subscribers and 28.5 million fixed line customers, trailing only Bharti Airtel.

MTNL also operates in Mauritius through a unit called Mahanagar Telephone Mauritius Limited (MTML) and submitted interest in a stake being sold in Nigerian telecommunications firm, Nitel.

The rest are Altimo Holdings or Vimpelcom of Russia, LAP Green Limited or LAP Green Networks of Libya, Portugal Telecom, Orascom Telecom Holdings or Telecel Globe Limited of Egypt as well as UNITEL consortium of Angola.

[Times of Zambia]

Northwestern Province Local government officer McLeaud Nyirenda has called for discipline and integrity from all stakeholders to participate in the forth-coming Solwezi central constituency by-elections.

Mr Nyirenda said for the Solwezi central constituency by-election to be free and fair, interested stakeholders will have maximise discipline, transparency, impartiality and integrity.

He said this when he officially opened a briefing programme for stakeholders, District Electoral, Returning and Assistant returning officers for the vacant Solwezi central parliamentary seat following the recent in timely death of late local Government minister Ben Tetamashimba.

Mr Nyirenda said the election should show a direct result of well disciplined officials to up hold democracy.

He therefore called on Non-Governmental Organisations (NGOs) to be vigilant and sensitize the people on the need and importance of voting as it is their human right to do so.

Mr Nyirenda also commended the ECZ for the programme aimed at acquainting stakeholders with their operation and thanked all stakeholders for finding time to take part in the programme saying this shows that people attach great importance to the voting process.

ZANIS

President Rupiah Banda has said Zambia’s business environment has remained stable and has continued to attract foreign investors despite the effects of the global economic crisis.

President Banda said Zambia has continued to record foreign investment in a number of sectors, among them the banking sector in the recent past, noting that this was testimony that the country’s economy was growing.

Mr. Banda was speaking at Lusaka’s Intercontinental hotel today when he launched the First National Bank (FNB).

He said it was important that the economic growth was supported by an efficient and effective financial sector.

“Increased economic activity demands a wide range of banking products and services which should be tailored to meet the new business challenges,” he said.

President Banda said in the last three years, the banking industry in Zambia has been steadily growing in total assets averaging at 30 per cent annually.

“Of this growth, almost 60 per cent was on account of net loans and advances largely to the private sector. This suggests to me that the economy is growing,” he said.

President Banda said the banking sector was one of the most important sectors to the growth of the economy because it provides finance to individuals and corporate entities for business activities.

He said the opening of FNB-Zambia would further promote the existing businesses and provide an environment that is conducive for investment opportunities, which subsequently should stimulate economic growth.

He hoped that FNB would help reduce the cost of bank services in the sector.

The President also urged banks to be innovative in the ways of providing access to short, medium and long term finances to Zambians.

“I similarly urge all commercial banks to move away from “arm chair banking” to making credit available to deserving customers at affordable rates,” he said.

President Banda added that by performing an effective intermediary role, banks would complement government’s efforts to enhance economic development in the country.

He however expressed concern that banks were still lending money at high interest rates and bank changes in Zambia, the development he said was discouraging average Zambians from accessing financial services.

President Banda added that the high interest rates on bank borrowing and other bank charges, particularly on deposit accounts, have made loans very expensive thereby increasing the level of loan delinquencies in the financial sector.

“Arising from this and due to generally low rates on deposits, there is a real risk that both savings and investments may be discouraged and threaten the tangible progress our economy has thus far recorded,” he stressed.

He further said such high rates have since disadvantaged micro, small and medium enterprises, which are important to the national economic growth.

And FND-South Africa Chief Executive Officer, Michael Jordaan, said his bank decided to open branches in Zambia because of the country’s sound investment and business opportunities.

Dr. Jordaan said Zambia has continued to offer a friendly business and risk free political environment, despite the global economic crisis.

Meanwhile, South African High Commissioner to Zambia, Moses Chikane said the two countries have long historical political, social and economic relations.

Mr. Chikane the opening of FNB in Zambia was one way of strengthening the existing economic relations between Zambia and South Africa.

He observed that lack of access to financial services was a major hindrance to the growth of the private sector in any country.

He said FNB would increase the tax revenue base for the Zambian government and help alleviate poverty through job creation.

The new bank already employs 96 Zambian professionals and hopes to increase the number as it expands.

Mr. Chikane said improved financial services in the Southern African region will drive the countries to achieving the Millennium Development Goals by 2015.

And Deputy Minister of Finance, Chileshe Kapwepwe said the increased investments between Zambia and other Southern African countries was a manifestation of the South-to-South cooperation.

FNB originated from South Africa in 1838 and is present in Botswana, Namibia, Lesotho, Mozambique, Swaziland and now in Zambia.
In Zambia, the bank already has three branches, two in Lusaka and one in Ndola on the Copperbelt province.

ZANIS

I have noticed that the news article by Patrick Jabani entitled “NCC Adopts New Electoral System in Zambia” recently appeared in both the Times of Zambia and The Post newspapers. In the article, Comrade Jabani has made a good summary of arguments for and against the adoption of Article 159(1) of the Republican constitution that is currently being crafted, which is intended to increase the number of Members of Parliament (MPs) from 150 to 280. [It is perhaps important to note here that the current membership of Parliament is actually 150 elected MPs + 8 MPs nominated by the Republican president.]

Unfortunately, the article does not address the cost associated with the proposed increase in the number of MPs.

In this regard, I wish to reiterate my initial position that Zambia cannot afford to implement the proposal that has been recommended by the National Constitutional Conference (NCC). There is really no wisdom in seeking to increase the number of constituencies when some of the existing constituencies cannot even generate enough tax revenue to meet the cost of maintaining their MPs.

It is unfortunate that such a recommendation is made at a time when tens of thousands of Grade 7 and Grade 9 students have continued to be spilled onto the streets every year, the healthcare system cannot meet the basic needs of the majority of citizens, the majority of Zambians have no access to clean water and electricity, the country still faces problems with garbage collection and disposal, a critical shortage of decent public housing has compelled so many of our fellow citizens to live in shanty townships nationwide, public infrastructure and services are still deficient, civil servants are still not adequately compensated for their services, and, among many other socio-economic ills, crime and unemployment are still widespread.

I have, therefore, found it necessary to provide some information about the cost of increasing the number of MPs from 150 (as suggested by Jabani) to 280. In this endeavor, I have assumed that the Speaker, Deputy Speaker, Chief Whip, and Leader of the Opposition in Parliament are remunerated the same as a Private Member in terms of salary, special allowance and utility; I have also assumed that the constituency allowance available to each MP is equivalent to that paid to a Nominated member in Zambian Kwacha (K) per year, and that there are no costs associated with personal-to-holder cars and other fringe benefits:

61,009,773 Salary

16,665,752 Special allowance

23,200,000 Utility

11,600,000 Constituency allowance

——————-

K112, 475,525 per MP x 150 MPs = K16,871,328,750.

——————-

And

K112, 475,525 per MP x 280 MPs = K31,492,147,000.

The cost of additional MPs per year:

K31,492,147,000 – K16,871,328,750 = K14,620,818,250 (US$3,187,377).

It seems the huge allowances which members of the National Constitutional Conference are receiving have intoxicated them so much that they have become incapable of thinking about the catalogue of socio-economic woes which the government cannot address mainly due to the lack of financial and material resources.

Rather than increasing the number of MPs, we should actually have been considering the prospect of reducing the number and restricting their functions to legislative matters. Parliament would still be representative and able to function effectively as the legislative organ of our national government, with only 72 elected MPs, for example, so that 1 MP could be elected from each of the existing 72 districts.

If we cannot reduce the number of MPs, we need to continue to have a parliament with 158 members (or 150 as suggested by Jabani). Representation in the governance of the country by women and the youth, among others, can be achieved through appointments to Permanent-Secretary positions, and to positions in Cabinet and government agencies.

It is irresponsible and ill-advised for NCC members to think about representation without seriously considering the cost associated with it.

Our country’s meager tax revenues will not be sufficient to maintain such a large parliament and a highly bloated cabinet. And we cannot continue to borrow until we push the country back into the debt trap. Besides, donor countries too are not likely to continue extending a helping hand while we continue to misuse our meager resources.

There is a need for NCC members and the government to realize that donor countries do not have unlimited resources. They have to make do with scarce resources by going through public expenditures line by line, program by program, agency by agency, department by department, and ministry by ministry in order to eliminate unnecessary application of public funds.

We need to start doing the same in order to wean our country from its current addiction to loans and its over-dependence on donor funding, as well as to attain economic independence and sustained socio-economic development, predominantly with our own local resources.

By the way, MPs should not be involved in the implementation of development projects; this should be the function of government ministries and local authorities. Besides, the provinces are already saturated with such portfolios as district commissioners, provincial ministers and provincial permanent secretaries, all of whom are supposed to complement the executive branch of the government in the implementation of development projects. To reiterate, we need to restrict the role of parliament to legislative functions — that is, law-making.

Henry Kyambalesa