following indication that China will this year increase its
annual copper purchase from 600,000 to one million
tonnes, Finance and National Planning Minister,
Situmbeko Musokotwane has said.

Dr Musokotwane said in Lusaka yesterday that if implemented, China’s move would result in a deficit in the global copper requirement for 2009 and trigger higher prices.

The minister said this in a speech read for him by Secretary to the Treasury, Likolo Ndalamei during the second Corporate Governance award-giving ceremony held at Hotel Intercontinental.

Dr Musokotwane said despite having put in place various measures to support economic diversification, the Zambian Government would not abandon what it knew best: mining.

“This is the reason why we are optimistic with reports that China’s State Reserve Bureau may this year raise purchases of copper to one million metric tonnes from 600,000 tonnes.

“Such a measure, if implemented, ‘would easily turn the projected global surplus of between 350,000 tonnes and 400,000 tonnes this year’ into a deficit. This is an encouraging signal for the Zambian mining industry,” he said.

Dr Situmbeko said that Government was equally positive about the future copper prices, which had gained by 25 per cent on the London Metal Exchange (LME) within this year after falling by 54 per cent last year.

Currently, he said, the price stood at around US$3,862 per tonne after China’s copper imports jumped by 55 per cent last month. This price level is the highest since November 2008.

He, however, noted that in the 2009 budget, Government had put in place programmes to diversify the economy and increase the potential for wealth creation through agriculture, tourism and manufacturing.

Dr Musokotwane said his ministry would this year address some challenges faced in the governance of State-owned-enterprises some of which had been a drain on national coffers.

“To forestall this trend and improve overall performance, my ministry will reinforce measures aimed at improving oversight, supervision, general management, corporate governance, quality systems and service delivery in State-owned enterprises.

“In this regard, I am pleased to inform you that we have provided K2 billion in this year’s budget for strengthening the implementation of the automated trading system on the Lusaka Stock Exchange (LuSE),” he said

He said the growth of market capitalization on the LuSE over the last few years gave government hope that the market in Zambia, though experiencing a momentary reduction, was sustainable and a worthy choice for stock investments.

Dr Musokotwane noted that although share prices might have fallen, the overall performance of most listed companies had been satisfactory and was a testimony of the resilience of Zambia’s economy.

“The evidence of our market attractiveness is manifested by looking back at 2008 when K1.302 trillion was raised in seven issues on the Lusaka Stock Exchange. This means that on average, the LuSE market capitalisation grew from K13.07 trillion or US$ 3.188 billion in 2007 to K24.205 trillion or US$ 6.538 billion in 2008.

“As a result, market capitalisation to GDP ratio also grew from 40 per cent to 61 per cent. This scenario makes the Lusaka Stock Exchange an illustration of the stability of our economy and a demonstration of the depth of private sector development in Zambia,” he said.
[Times of Zambia]

A civil society organization has challenged Patriotic Front leader, Michael Sata, to declare his interest in the operations of Zambian Airways.

Zambia Direct Democracy Movement (ZDDM) national coordinator, Edwin Sakala, says it is clear that Mr. Sata has personal interest in the airline.

Mr. Sakala says the nation expects Mr. Sata to be in the forefront to ensure that the government recovers the debt owed by Zambian Airways.

He says the money can be used to improve the living standards of Zambians.

Mr. Sakala said in a statement that it is disappointing that Mr. Sata has acted contrary to people’s expectations.

Meanwhile, MMD National Secretary, Katele Kalumba, has appealed to party members to desist from commenting on allegations against former finance minister, Ngandu Magande.

Mr. Magande who is also Chilanga Member of Parliament has been accused of trying to ask government to delay repayment of a debt owed by Zambian Airways, a private firm.

Dr. Kalumba said in Lusaka that MMD members and all Zambians should respect official investigations, currently under way, on the financial irregularities at Zambian Airways.

He said people who have concerns should take their information to the committee investigating the matter.

Dr. Kalumba said Mr. Magande has expressed concern over the actions of some MMD members who are petitioning the party leadership to discipline him despite the matter being under investigations.

He said there is need to respect Mr. Magande’s concerns.

/NEWS/ZNBC

Former Transport minister, William Harrington, has discontinued his court action seeking judicial review over President Rupiah Banda’s decision not to suspend minister, Dora Siliya.

Ms. Siliya who is the current Transport minister has been accused of flouting procedure when awarding contracts to some foreign firms to implement projects for some Zambian parastatals under her ministry.

A tribunal has been set up to look at the accusations.

Mr. Harrington says he will now rely on the integrity of the tribunal chaired by Supreme Court justice, Dennis Chirwa, to ensure justice prevails.

The former transport Minister has instructed his lawyers to discontinue the case following Wednesday’s application by the state to adjourn the matter to next week.

Mr. Harrington says he expected the High Court to treat the matter with the necessary urgency before most of his witnesses who are government officials finish testifying.

The former minister had petitioned the President to suspend Ms. Siliya so that she could not interfere with witnesses.

Mr. Harrington has finished calling all his witnesses.

NEWS/ZNBC

The United Party for National Development, UPND, says it has embarked on the party strengthening programme in readiness for the 2011 general elections.

UPND spokesperson, Charles Kakoma, said the party is confident of winning the elections in view of the ambitious programmes it is currently executing.

Mr. Kakoma said among the programmes of strengthening the party, was a membership recruitment drive ahead of the polls.

He told ZANIS in an interview in Lusaka today, that with the recruitment of more members the party would strengthen its performance in the next elections.

He also said the party would soon embark on a nationwide tour of its presidential aspirant, Hakainde Hichilema, as a measure of enhancing his popularity ahead of the elections.

The UPND spokesperson said the opposition party has also started reorganizing the party youths to enhance their participation in elections.

ZANIS/AJN/ENDS/SJK

THE Government has said that all documentation regarding the Zambian Airways financial irregularities, including former Finance and National Planning minister, Ng’andu Magande’s letter to communications and Transport Minister, Dora Siliya, are already with the investigative wings.

Speaking in an interview in Lusaka yesterday, chief Government spokesperson, Ronnie Shikapwasha said that all the evidence pertaining to Zambian Airways, which in January suspended operations, was with the three investigative wings probing the matter.

Lieutenant-General Shikapwasha, who is Information and Broadcasting Services Minister, was commenting on Mr Magande’s challenge to President Rupiah Banda or any individual to avail acting Inspector General of Police Francis Kabonde copies of the letter.

“The Government’s investigative wings are handling the Zambian Airways issue and as such there is no need of setting up a tribunal. The letter by Mr Magande to Ms Siliya and anything else is with the investigative wings,” Lt Gen Shikapwasha said.

He pointed out that the Drug Enforcement Commission, the Anti-Corruption Commission and the Zambia Police Service would, apart from relying on written documentation, call all the possible suspects and witnesses in the matter.

“The people will also be called and the Government has confidence in the investigative wings. The public will be informed of the outcome at an appropriate time,” Lt Gen Shikapwasha said.

[Times of Zambia]

The Patriotic Front (PF) leadership in the district has suspended district chairman Charles Mazimba for allegedly releasing false information to the press without the consent and approval of the party.

Patriotic Front (PF) Mpulungu constituency secretary Peter Mwansa said district chairman Mazimba was removed from his position because of indiscipline.
He said Mazimba’s removal has been long overdue because of several cases of mal administration that he has committed in the recent past.

But when asked to state whether PF is a democratic party that believed in the freedom of expression of its members, Mwansa said the party believed in free speech but not issuance of unilateral statements to the press.

When pressed further on what was wrong with Mazimba’s part in last week’s story and if party members cannot freely discuss matters affecting PF, Mwansa stated that they party did not discuss the support for the expelled MMD Mpulungu MP Lameck Chibombamilimo.

Mr. Mwansa said the PF executive has totally disagreed and disassociated itself with the statement.

Last week, a party official had disclosed that the party would support Mr. Chibombamilimo if he decided to stand on its party ticket.

ZANIS/EK/MKM/ENDS

MMD Mpulungu constituency chairman George Tembo has resigned from his position with immediate effect citing frustrations within the ruling party.

In an interview with ZANIS today, Mr. Tembo said he has decided to step down as constituency chairman due to what he called frustrations perpetrated by a named district official which he had encountered in the recent past.

Mr. Tembo who recently declared interest to contest on the MMD ticket, if the speaker of the National Assembly declared the Mpulungu seat vacant, added that he will however remain a member and staunch supporter of MMD as well as being councilor for Mpulungu central ward.

He said his ambitions to contest the elections on the MMD ticket will still hold regardless of what has happened.

Mr. Tembo accused some MMD district officials of playing petty politics and manufacturing baseless accusations against him aimed at denting his image in the party.

He complained that there is no separation of power in the party in Mpulungu because some district officials have allegedly hijacked the running of the party by taking over the functions both at district and constituency levels.

“This is totally unacceptable in a democratic party like MMD,’’ Tembo complained.
And when reached to comment over Tembo’s resignation and how it will affect the MMD in Mpulungu, district chairman Edward Chelleh said he had received and accepted the decision of the constituency chairman.

” You see, as far as we are concerned George resigned from his position a long time ago though he was not coming out in the open,’’ Chelleh revealed.

He urged party member to be focused and remain united saying the party will still survive without Tembo as constituency chairman.

ZANIS/EK/MKM/ENDS