Government has maintained that it will not commit itself to bailing-out Zambian Airways from operational problems because doing so would set a bad precedent to competitors in the local airline industry.

Communications and Transport Minister, Dora Siliya, said bailing-out the privately owned airline would set a costly precedent because there were other competitors in the aviation industry which were experiencing operational problems.

Presenting a Ministerial Statement in Parliament on the suspension of operations by Mines Air Services Trading as Zambian Airways, Ms Siliya maintained that government would not offer any financial commitments to the airline because it had other serious development programmes to implement.

Ms Siliya, further, said that her ministry in collaborations with its sister ministries of Justice, Finance and Home Affairs were holding serious talks to consider taking legal action against the airline over huge sums of money owed to various government institutions.

She cited the Development Bank of Zambia, DBZ, which is owed US$4 million, Zambia Revenue Authority, ZRA, US$2.5 million, National Pensions Scheme Authority, NAPSA, US$2.5 million and National Airports Corporations, NAC, US$2 million among among government institution owed by the company.

The defunct airliner also owes Investrust Bank US$1.5 million, Finance Bank is owed US$6.3 million  and US$9.5 million to other trade creditors.

Ms Siliya said government has no plans to bail-out the Zambia Airways which she said was both insolvent and illiquid with its internal management accounts standing at about US$29.4 million.

She further warned that her ministry would not hesitate to revoke the aviation airline operations license in order to protect the country’s aviation industry from further imbalances.

She was responding to a question raised by Chifunabuli Member Parliament, Ernest Mwansa, who wanted to know what stringent measures government would take to protect the country’s aviation industry from companies that will be abrogating their operating licenses.

Ms Siliya, further, said government was working out modalities to protect the aviation industry from unnecessary job loses due unjustified suspension of operations.

She cited increased investment in the sector as one such measures of safeguarding employment in the sector.

She also revealed that government through the Ministry of Energy and Water Development under the Energy Regulation Board has reduced the cost of aviation fuel from US$1.58 per litre to 85 cents per litre as another measures aimed at helping the sector grow.

She further disclosed that government will not welcome proposals to defer Zambian Airways debts as it was more political rather than a business strategy.

Ms Siliya, however, said the suspension of the airline industry was a sad development to the country as the aviation industry was key to the country’s economic agenda.

Zambian Airways suspended operations a fortnight ago, citing high operational costs triggered by high cost of jet fuel.

The move left scores of passengers booked on the airline’s local and international flights stranded.

The Mines Air Services Trading as Zambian Airways is a 100 per cent privately-owned airline with JCN Holdings Zambia holding 57.5 percent shares, Post Newspapers 30 per cent and the Seaboard Overseas of United States holding 12.5 per cent shares.

However, the information obtained from the Patent and Company Registration Office by the Ministry of Transport and Communications has reflected a shareholding of 50 per cent each between Mutembo and Nchima Nchito brothers respectively.

ZANIS/TK/ENDS/SJK

The Lusaka High Court today upheld a two-year jail sentence slapped on Samuel Musonda, a former Managing Director of Zambia National Commercial Bank (ZANACO), the country’s biggest bank, on 44 counts of corruption and abuse of office.

Musonda ran ZANACO under the regime of retired President Frederick Chiluba, who left office in 2001.

The banker was arrested and charged for facilitating the irregular release of funds held in an account at one of the bank’s branches.

The bank account in question belonged to Zambia’s Intelligence and Security Services and has been traced as the account that was used for various irregular purchases for Chiluba and many of his associates.

Musonda had been sentenced to two years in prison by the Lusaka Magistrates Court but had appealed against the sentence.

He had argued that as the chief executive of ZANACO, which has since been privatised, he had no choice but to sanction the release of various sums of money because he was acting under the instructions of either Chiluba or the head of the intelligence services.

Lusaka High Court judge Tamula Kakusa, however, dismissed the appeal and upheld the two year jail term.

Musonda’s lawyer indicated that his client would appeal again to the country’s highest court the Supreme Court of Zambia.

APA

The Forum African Women Educationists in Zambia (FAWEZA) has expressed concern at the high number of under-aged girl children being forced into early marriages in the country.

FAWEZA National Coordinator, Daphne Chimuka says the forcing of under-aged children into early marriages was a serious issue that needs to be addressed urgently.

Ms. Chimuka told ZANIS in an interview that there is need for people to respect the girl child’s right to education.

She called on all Zambians to discourage early marriages as this was denying the girl child an opportunity to be educated.

Ms. Chimuka said her organization was doing everything possible to sensitize the public on the impact of early marriages because people need to understand the importance of woman acquiring an educated.

She said parents and guardians should not rush to marry off their daughters.

Ms. said people should consider looking at the long-term benefit of education and not short-term benefits in terms of dowry.

She charged that poverty should not be used as an excuse to break the law by marrying off underage girl children.

Ms Chimuka has since called on members of the public and the underage girl children being forced into marriage to report such actions to relevant authorities in the country.

ZANIS/AJN/AM/ENDS

Government will this year review the employment Act and come up with improved and innovative approaches towards enforcing the labour laws in the country.

Ministry of Labour and Social Security Permanent Secretary Ngosa Chisupa disclosed that the labour law reform process will be expected to meet the aspiration of the Zambia decent work programme which was launched in 2007.

Mr. Chisupa noted that these revised law reforms will create a conducive environment for workers and employers in the Micro and Small Enterprises (MSE’s) for the development of the country.

He pointed out that the current global financial crisis is likely to reduce employment levels in the formal sector.

He was speaking when he officiated at the “Law –Growth Nexus” workshop in Lusaka yesterday.

Mr. Chisupa cited the mining industry as one of the sector that has recorded massive job cuts following the global economic meltdown, which has also affected Zambia.

He further disclosed that government will continue to come up with statutory instruments on minimum wages in order to guide employers on the minimum wage requirements and protection of employees against exploitation.

And speaking earlier, International Labour Organization (ILO) Director for Tanzania, Malawi and Zambia, Gerry Finnegan said MSE’s play an important role towards the economic growth of the country because they provide employment.

Mr. Finnegan noted that there was need for government to review the law reforms in order to attract more MSE’s in the country.

He explained that an improved employment Act is likely to create a conducive environment for doing business and thereby contribute to the growth of the economy of the nation.

He further urged government to ensure that it promotes a decent working environment for vulnerable groups such as women, men and children in society, adding that this can increase production of workers’ out put.

And Zambia Federation of Employers Executive Director, Harrington Chibanda, called on the government to embrace the informal sector saying it plays a vital role towards job creation in the country.

Mr. Chibanda added that there is also need for the private sector to help government find lasting solutions to the current job losses cause by the global economic crunch.

He added that this can lead to achieving sustainable economic growth for the nation.

He further commended the ILO for the workshop saying this will help stakeholders involved in job creation understand the importance of creating an enabling environment for workers in the country.

ZANIS/MM/AM/ENDS

The Centre for Policy Dialogue (CPD) says suggestions to increase parliamentary seats should only be entertain with regard to rural constituencies.

CPD Executive Director Neo Simutanyi has challenged government to consider increasing parliamentary seats for rural constituencies only for effective implementation of developmental projects in rural districts.

Dr. Simutanyi charged that many rural constituencies in the country have been under developed because they are too vast for one Member of Parliaments (MP) to handle compared to those in urban areas.

He was reacting to proposals by the National Constitution making Conference (NCC)’s legislative committee that seats for Members of Parliament should be increased from the current 150 to 250 of which 200 must be elected, 40 from interest groups and 10 should be nominated.

Dr. Simutanyi told ZANIS in an interview in Lusaka today, people in rural areas need more representation, adding that they face different problems that would need the attention of their area MPs.

He explained that the role of MPs is to effectively represent the electorates and bring development to their constituencies and consequently develop the whole nation therefore increasing parliamentary seats should only apply to rural areas.

Dr. Simutanyi added that government and other political parties in the country should ensure that their elected law makers deliver to the public by establishing close working relationship with people who voted for them.

He noted that it is for this reason that government during the 2011 general elections should consider reducing the number of urban MPs where as those of rural should be increased.

Dr. Simutanyi, who is also a political analyst, has observed that urban constituencies despite been developed has continued to have a large number of MPs.

He cited Lusaka and Copperbelt as some of the provinces which should have the number of parliamentarians reduced.

He further urged MPs to ensure that during parliamentary debates they concentrate more on issues that affect their constituencies and deliver on the promises they made during campaigns.

ZANIS/MM/AM/ENDS.