The Barclays Treasury Newsletter this morning reports that the Kwacha bounced back in late trades on Wednesday after earlier slipping to a new historical low, touching the psychological K5 800/USD level in a highly volatile session. The report further said that spurts of demand and supply characterised trading, with early dollar buying prompting a swift depreciation to a low of K5 780/5 800 by midmorning after the currency pair opened at K5 650/5 670 per USD.

The local currency made an unprecedented comeback of nearly 4% from market lows to close at K5560/5580 on dollar offloading from market players. Thus, this reduced the Kwacha’s year-to-date depreciation to 14.8% from 17% at previous close.

Volatility, exacerbated by relatively thin corporate flows, is likely to continue as market players trade cautiously. Although the Kwacha looks fundamentally bearish, occasional supply flows are expected to give the Kwacha relative resilience to the dollar. Technical support is pegged at K5 500/USD and resistance at K5 800/USD.

Recently the Kwacha has continued to fall under pressure to the dollar . Golden Coin Bureau De Change says the kwacha’s fall is being driven both by market forces and speculation.

Golden Coin Manager, Douglas Chilundu told ZNBC news that the 2009 budget announcement has stimulated businesses to start importing to meet contractual obligations.

Mr. Chilundu called on the central bank to stabilize the kwacha to a comfortable level of five thousand kwacha to one U.S. dollar.

Immigration Department Public Relations Officer Mulako Mbangweta has revealed that a Zimbabwean national and a banker by profession identified as Maureen Mudiwe was arrested at Chirundu border post when she attempted to use the newly introduced computerized Zambian passport.

The said Ms. Mudiwe alias Maureen Chileshe had earlier obtained both the green national registration card and the passport by false representation.

Ms. Mbangweta said the act is contrary to section 13 1C of Cap 87 of the laws of Zambian adding that the suspect is currently detained at Central prison awaiting court appearance soon.

Ms. Mbangweta also disclosed that a number of civil servants are also involved in the in the scam.

She warned that Zambian nationals regardless of their status who may be involved in aiding foreign nationals in acquiring Zambian documents will be brought to book as the offence endangers national security.

Ms. Mbagweta said the department is concerned and has noted with displeasure how some foreign nationals have possibly acquired Zambian documents such as the green national registration cards and Zambian passports.

And the Immigration Department has also arrested and deported three foreign nationals to their countries of origin for various immigration offences.

Immigration Department Public Relations Officer said the three were arrested in different circumstances after a routine operation by the department.

Ms. Mbangweta said those arrested include a South African national of Egyptian Origin and a Congolese national.
She said the Zimbabwean national and proprietor of Mofosholo Enterprises in Chirundu Johannes Voster 58 was arrested and subsequently deported for illegally entering the country after he had earlier been warned to enter the country with legal documentation.

Ms. Mbangweta noted that Mr. Voster’s presence in the country is likely to be a danger to peace and good order and was therefore deported under section 26 (2) of the immigration and deportation Act cap 123 of the laws of Zambia.

And in a related incident, Ms. Mbangweta disclosed that a South African national of Egyptian origin identified as Muhammad Sheikh 47 was arrested and deported to his country of origin for perpetual immigration offences

Ms. Mbangweta explained that Mr. Sheikh had once been issued with an employment permit after giving false information to a public officer and was also once convicted to nine months imprisonment with hard labour.

She described Mr. Sheikh as a perpetual offender in immigration laws whose deportation resulted from his conduct that is likely to be a danger to peace and good order of the country.

ZANIS/CM/AM/ENDS

The United Party for National Development (UPND) has, with immediate effect, dissolved the Lusaka province and Kanyama Constituency party executive committees.

UPND Information and Publicity Chairman, Charles Kakoma disclosed this in a statement to ZANIS in Lusaka today.

Mr. Kakoma said the dissolution of the two party executive committees was in line with the National Management Committee’s (NMC) resolution to recognize and strengthen the party in readiness for future elections.

He said UPND would continue to reorganize the party at all levels as mandated by the NMC.

Mr. Kakoma said the members of the dissolved executive committees would however, remain members of the party and may be given other responsibilities.

He said the party would soon announce the new interim executive for Lusaka Province and Kanyama constituency.

ZANIS/WM/KSH/ENDS

The Supreme Court in Zambia has reserved ruling in a case where the opposition Patriotic Front (PF) has applied for a presidential vote recount in last year’s poll.

Acting Chief Justice Irene Mambilima, sitting with other four Supreme Court Judges Marvin Mwanamwambwa, Sandson Silomba and Dennis Chirwa reserved ruling to March 11th, 2009.

This was after the matter came up for hearing before her Tuesday morning.

PF leader Michael Sata’s lawyer Bonaventure Mutale submitted that some of the constituencies and polling stations were allegedly supervised by unauthorized persons who had no legal mandate to do so.

Mutale alleged Chisamba, Mwembeshi, Michinga, Serenje, Milenji, Nakonde, Mbala and Senga Hills as some of the constituencies where returning officers were not legally mandated to supervise the elections.

He also submitted that the affidavit by the respondents stated that some names were merely transposed, saying this was an admission that there was a serious error.

But Solicitor General Dominic Sichinga submitted that the court should dismiss the application for a recount as it had insufficient evidence.

And Christopher Mundia submitted that it was extravagant for the petitioner to apply for a recount in all 150 constituencies when no evidence had been adduced.

There was tight police security at the supreme court grounds as the presidential application for a recount was been heard.

Meanwhile, Mr. Sata urged PF cadres after the hearing to remain calm and peaceful as they proceeded to their respective places.