South Africa’s Absa Group Limited (ABSA), a subsidiary of Barclays Bank PLC has sued Zambia for breach of contract involving more than US$74 million in the importation and refinery of feed stock.

In a writ of summons filed in the Lusaka High Court on June 29, ABSA says the Government is liable on the basis of breach of collateral warranty for the payment of the $74,394,060.21 plus interest.

According to an affidavit in support of a writ of summons, ABSA had dragged the Zambian Government to a South African high court local division where it obtained a judgment in default and an order for it to be paid $74,394,060.21.

The affidavit stated that in 2001 ABSA started negotiations with a view to fund the Zambia National Oil Company (ZNOC) for the acquisition of feedstock from the suppliers and for the operations.

The deal included payments to Tazama for storage, pumping and payments to Indeni for refinery.

“The negotiations for the funding of ZNOC came to an end when it was placed under receivership and subsequently liquidated and this led to the commencement of negotiations between the Government and ABSA.

“These negotiations culminated into conclusion of a suite of agreements including a revolving oil supply credit agreement in March 2002 between ABSA and Trans- Saharan Trading (TST) Limited for the sum of $100 million,” the affidavit reads.

Pursuant to the facility agreement and on the strength of Government’s undertaking, ABSA advanced funds to TST which defaulted on its obligations to ABSA. This ultimately led to the instituting of legal proceedings.

“ To date none of the aforesaid amount has been paid by TST and the judgment debt granted in favour of ABSA remains unsatisfied and despite attempts ABSA is unable to make any recovery in this refund as at December 2008,” the affidavit reads.

The Government in October 2002 unilaterally purported to withdraw the undertaking it agreed upon and terminated the TST’s mandate to procure, import, refining, market and sell of the feed stocks.

The statement read that Government’s action to withdraw the undertaking at a time when amounts were owing to ABSA in terms of the facility agreement impacted negatively and prejudiced the rights of TST as contemplated in the facility agreement.

In the premises the Government was liable to the repayment of the said monies to ABSA.
[Times of Zambia]

The ruling Movement for Multi-Party Democracy says it is studying the injunction granted to Katuba and Mpulungu members of parliament Jonas Shakafuswa and Lameck Chibombamilimo respectively by the Lusaka high court restraining the MMD from expelling them from the party.

MMD National Secretary Katele Kalumba said the ruling party has engaged its lawyers to study options on the matter before charting the way forward.

Dr. Kalumba told ZANIS in Lusaka today that the party will issue an official comment upon receiving advice from the lawyers.

“We have heard and we are aware of the injunction by the court. We are asking the lawyers to study the matter; we will issue an official comment after receiving advice from our lawyers.” said Dr. Kalumba.

The High court yesterday granted two former deputy ministers an injunction restraining the MMD from expelling them from the party.[quote]

In his ruling Justice Nigel Mutuna said the expulsion of the two Mps would lead to the loss of the parliamentary seats which would mean the duo would be able to exercise their duty and functions that come with being an MP.

And Dr. Kalumba has reiterated that the ruling party is currently not preoccupied with the convention contrary to some party member’s calls to cancel the party convention.

The ruling party National Secretary said the MMD is currently focused on strengthening the party and help government on policy issues on matters affecting the country such as the negative effects of the global economic recession.

He has since urged party members across the country to support and help President Rupiah Banda govern the country effectively.

“Let us help President Banda in governing the nation. It is important that we strengthen the party and help drive government policies according to the party manifesto.” Dr Kalumba said.

Dr. Kalumba said it is important for the MMD to also listen and focus on people’s aspirations across the country in order to continue serving them effectively.

ZANIS

Local Government and Housing Minister Benny Tetamashimba has accused the Patriotic Front (PF) of encouraging Public nuisance.

Mr. Tetamanshimba charged that his ministry has not failed to remove the vendors from the streets, but PF through its councillor Matthew Pikiti, the lawyer for the Vendors were the ones blocking the way.

The Minister stated that government is committed to remove the vendors from the streets and dismissed the wrong perception people have over his ministry’s failure to remove vendors off the streets of Lusaka.

Mr. Tetamashimba in an interview with ZANIS in Lusaka today said Mr. Pikiti had filed in an injunction restraining the local authorities from removing the vendors from the streets.

“We have not failed to remove the vendors from the streets but it just that Mr. Sata and Pikiti are the ones standing in our way,” Mr. Tetamanshimba

The minister said due to vending, it was unfortunate that motorist in Lusaka were failing to drive freely in the streets of Lusaka because of the harassment they received from the vendors.

Mr. Tetamashimba, maintained that street vendors will soon be removed from the streets saying his ministry working with the State Police and Council Police as well as other stakeholders have already put measures in place to carry out the exercise.

The Minister said that his ministry has already paid the Ministry of Home Affairs for deployment of Police Officers to man the streets for three months ( 90 days) to ensure that vendors were gotten rid of.

But Mr. Pikiti, has disputed the minister’s claims saying at no time has the party or himself encouraged the vendors to sell on the streets.

Mr. Pikiti who is also PF Member of the Central Committee added that it is hunger that is forcing vendors to go back to the streets to sell merchandise despite several attempts by the local authorities to relocate them.

“Its hunger that makes these people go back to the streets despite being chased by the council,” Mr. Pikiti said.

He added that high unemployment levels in the country have caused an increase in street vending.[quote]

Mr. Pikiti however admitted that he had filed in a court injunction mid last year restraining the local authorities from harassing the street vendors.

The lawyer said he had asked the council to find alternative trading places for the vendors before chasing them from the streets.

And some motorists talked in the streets of town centre and Soweto market complained of theft that has been brought up by the vendors who mainly congest the roads.

Amanda Kaluluma, a motorist disclosed that she had her cell phone snatched as she stopped at Lumumba traffic lights.

Mrs. Kaluluma added that she can hardly reverse her car when she parks in freedom way because traders hardly move their goods to pave way for the motorists’ movements.

Recently there has been a public outcry for the Ministry of Local Government and Housing and the Lusaka City Council to clear vendors from the streets of Lusaka.

ZANIS

Local Government and Housing Minister Benny Tetamashimba has said personal attacks will not deter him from demanding that the Anti-Corruption Commission and the Auditor General’s office investigate how 100 hearses were bought.

He expressed regret that his predecessor, Sylvia Masebo allegedly called him names for demanding that the truth be established regarding purchase of the hearses.

And the Anti-Corruption Commission (ACC) yesterday confirmed receiving a report over the matter from Mr Tetamashimba.

“ Yes I can confirm that we received a complaint from Mr Tetamashimba,” said public relations manager Timothy Moono who refused to discuss the matter further.

Mr Tetamashimba said in an interview yesterday that it was unfortunate that Ms Masebo launched personal attacks by stating that he was the defacto vice-president and untouchable by the president .

“The issue of hearses has passed, she said she wanted President Banda to give her a green light and the president cleared her and she has spoken.

‘‘Since the issue is under the ACC and the office of the Auditor General, the nation will know who is saying the truth and who is wrong.

“ I did not specifically say that Ms Masebo was wrong for her to say that she is clean but all I expressed was suspicion in the procurement process,” Mr Tetamashimba said.

Mr Tetamashimba said the nation would know who was telling the truth between the two and emphasised that he would from now onwards prefer to remain quiet on the matter.

He also said he would continue defending the administration of President Banda to the hilt despite the personal attacks.

Mr Tetamashimba said all he was doing was defending Mr Banda in the same way that Ms Masebo defended the late president Levy Mwanawasa.

On Monday, Ms Masebo said Mr Tetamashimba was part of the management meeting that agreed to buy the 100 hearses and should therefore desist from claiming to be ignorant on the matter.

[Times of Zambia]