The National Pensions Scheme Authority, NAPSA, has recorded a 45 per cent increase in contributions collected exclusive of penalties and an overall increase in net assets of 20 percent.

Labour and Social Security Minister Austin Liato, who confirmed the development in a ministerial statement made in parliament today on the 2007 Financial Statements, said the scheme recorded an overall increase in net assets of 4 percent as a result of revaluation gains.

Mr Liato explained that the Pension Scheme recorded an increase of about K1.7 billion while Provident Fund recorded an increase of about K288.3 billion.

He further explained that the National Pension Scheme which had a total number of 18,563 registered employers and a cumulative membership of 985,747 as in 2007, the scheme’s monthly average collection stood at K35.1 billion.

He disclosed that NAPSA paid-out K24.8 billion as lumpsum benefits to its retired members, while a total of K3.7 billion was paid in form of pensions adding that another K20.1 billion was paid to beneficiaries under the repealed Zambia National Provident Fund.

Mr Liato further disclosed that NAPSA’s investment portfolios as at 2007 for the pension scheme recorded K510.4 billion in treasury bills, while K884.9 billion was recorded in government bonds, adding that another K102 billion was recorded in term deposits.

He added that K77.9 billion was recorded in equities and a K32 billion was further recorded as fixed interest securities.

Mr Liato also disclosed that NAPSA’s investment portfolios for the provident fund as at 2007 stood at K35.5 billion in treasury bills, while K37.9 billion was recorded in government bond and a K7.7 billion was recorded in term deposits and a further K118.3 billion was recorded in equities.

He added that K108.3 billion was recorded in fixed interest securities.

He said NAPSA has diversified its investment portfolios from the traditional Bank deposits to investment in real estate development and participation in the equity market.

Mr Liato said the move was done in line with government’s policy of safeguarding members’ funds and promoting projects that contribute to social and national development.

He has since reaffirmed government’s continued commitment to the prudent management and utilization of NAPSA funds with a view to creating efficiency and transparency in the sector.

ZANIS/TK/ENDS/SJK

President Rupiah Banda has appealed to the republic of Korea to consider investing in the troubled Nitrogen Chemicals of Zambia (NCZ).

Mr. Banda says he is aware that Korea has the appropriate advanced technology to rehabilitate the fertiliser plant.

He says agriculture is critical to the economic development of Zambia and a recapitalized NCZ can provide cheaper fertiliser for peasant farmers.

The President was speaking at state House on Thursday, when he received letters of credence from Korea’s Ambasador designate to Zambia, Oh Jae-Hack.

And Mr. Banda said he is happy, the Korean resources Corporation- KORES has begun to partner with Zambian Miners.

The President called for more partnerships to enhance mining activity in the country.

He also commended the Korean government for its continued assistance to Zambia in mitigating the effects of floods in some parts of the country.

And Presenting his letters of credence, Ambassador OH said Zambia stands out as one of Africa’s most successful examples of political stability and sound economic development.

He said his government is looking forward to working closely with the Zambian government in its efforts to further achieve economic development by sharing development experiences of the two countries.

Ambassodor Jae-Hack said it is gratifying to note that the bilateral relations between the two countries have continued to grow, since the establishment of diplomatic ties in 1990.

Meanwhile, President Banda has appointed and sworn in Simon Kachimba, a former miner, as new Labor and Social Security Deputy Minister.

He urged Mr. Kachimba to help resolve the challenges of job losses, especially in the mining sector, where some companies are threatened with closures, following reductions in copper prices on the world market.

President Banda expressed confidence in the newly appointed deputy minister, adding that he is qualified and well placed for job to deal with the challenges the country is faced with in the labor sector.

ENDS/CM/PK/ZANIS/

Government says it will continue inviting both local and foreign investors with the capacity to invest in the country including Indian and Chinese investors.

And Government has described as an act of sabotage the statements by Patriotic Front leader Michael Sata against Indian and Chinese investors.

Chief Government spokesperson, Ronnie Shikapwasha, says Government will continue looking to the two counties as their fast growing economies requires a lot of materials which Zambia has.

Lieutenant General Shikapwasha said even developed countries are looking to China and India as the two emerging giants for business and investment.

He said the two countries as President Rupiah Banda recently observed are among the few countries with the financial muscle under the current global financial crisis who can invest in the country.

“China and India as President Rupiah Banda recently observed are among the few with financial muscle under the current global financial and are willing to invest in the exploitation of materials they need. And since Zambia has what they need, its only proper that we take advantage of their financial capacity to develop our mines and other industries,” he said.

Gen. Shikapwasha, who is also Information and Broadcasting Services minister, said this in statement released to ZANIS in Lusaka today.

Meanwhile, Gen Shikapwasha said, it is sabotage for leaders who should be working with government and local business houses in attracting investment from the two countries to instead use derogatory statements against them.

He said Patriotic Front leader, Michael Sata, who is discouraging and issuing bad statements against Indian and Chinese investors actually welcomed them during the 2008 presidential elections campaigns.

“It is strange that Patriotic Front leader, Michael Sata, who having rejected the Chinese and Indian investors in 2006 presidential but welcomed them during the 2008 campaigns has again rejected their investment without stating what has changed,” he said.

Lt. Gen. Shikapwasha has charged that Mr. Sata is using the Chinese and Indian investment issue by preying on the gullible believing he can gain political mileage out of it.

He said it is ironical that such sentiments are coming from a national leader at a time when the mine workers who are more closely associated with the mines are in full praise of their investments.

He said Mine Union workers of Zambia (MUZ) General Secretary, Oswell Munyenyembe on Monday said Indian and Chinese investment has proven to be dependable in time of crisis.

Lt. Gen. Shikapwasha further said it was for this reason that government is hoping for Chinese and Indian investment to take over the operations of Luanshya Copper Mines (LCM).

He said when other investors are laying off workers due to the effects of the global financial crisis; Chinese and Indian investors are restrained from doing the same.

He however said Zambia will continue inviting investors from all over the world adding that Mr. Sata’s preferred investors are the one who are now threatening to lay off workers.

“What is of interest to Zambia is whether these investors have the financial and technical capacity to run the mines or other undertakings and can obey the laws of Zambia” he said.

Lt. Gen Shikapwasha said government is also attracting local entrepreneurship in mines and other sector adding that this is the reason government is vigorously implementing the Citizen Economic Empowerment Commission (CEEC).

He said old and new mines will be given to Zambians with financial capacity that will come forward.

ZANIS/GP/AM/ENDS.

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