Government has defended its stance to keep the revenue collected from windfall tax in a stabilisation account at the Bank of Zambia.

Finance Minister, Situmbeko Musokotwane, says the revenue collected from windfall tax will be used when need arises.

Dr. Musokotwane was contributing to a debate on the report compiled by the Parliamentary committee on Estimates.

He also said government is considering extending the budget circle from nine months to twelve months.

Dr. Musokotwane said he has already communicated to Vice President, Gorge Kunda, about the issue.

Earlier, some Members of Parliament questioned government over the rationale of keeping money raised from windfall tax idle when the country is experiencing difficulties.

Zambezi West MP, Charles Kakoma, said it did not make sense for government to keep the money in a stabilisation account when farmers have no fertiliser.

Mr. Kakoma also wondered why government had engaged into fresh negotiations on the in windfall tax when parliament had mandated it to collect the revenue.

And the Parliamentary committee on Estimates is concerned about the poor revenue collection in the country.

The committee has observed that non tax revenue collection is still ranked lowly by some government ministries.

Chairperson of the Committee on Estimates, Batuke Imenda, says the move has resulted in low income and subsequent failure to implement government programmes.

Mr. Imenda also bemoaned the late release of funds to capital projects such as infrastructure development.

However, Mr. Imenda says the committee is happy that revenue collected from windfall tax has not been used.
[ZNBC]

VICE-PRESIDENT George Kunda has assured that the National Constitutional Conference (NCC) will complete its work by December next year so that the country can have a new Constitution before the 2011 elections.

Mr Kunda said in an interview in Lusaka yesterday that the Constitution-making process was a realistic programme which should not be rushed, but expressed optimism that Zambia would hold the 2011 elections under a new Constitution.

“We don’t want to compromise the process by suggesting unrealistic time options. We have to complete the work before 2011, but let us not suggest unrealistic time frames,” he said.

The vice-president, who is also Justice minister, advised Zambians to seriously reflect on the experiences the country had faced in previous years, especially in trying moments, which eventually led to the just-ended presidential election in October.

“We need to think and reflect on the experiences we have faced as we reconsider the Constitution. We are now much wiser and let’s look at the Constitution in such a manner,” he said.

On calls for the NCC to consider adopting the recommendations of the Mung’omba report that a presidential candidate should have a running mate, Mr Kunda said the reaction by the Government was that the Republican president should appoint the vice-president.
He said that there was room for reflection on suggestions made by other people.

He said Zambia should also take stock of what was happening in other countries so that the country could come up with a better Constitution.

Mr Kunda said the last presidential election was costly and Zambians should also consider various aspects, which would go with the re-run when giving suggestions like the 50 per cent plus one for a winning presidential candidate.

“People must be able to reflect on all these issues. The bottom line is that we should do only what is best for this country.

“As we decide as Government on what position we take, we want the people to decide for themselves. As the Government, we shall provide leadership,” he said.

On his vision, Mr Kunda said the office of vice-president held various critical units, which were meant to improve service delivery and reduce poverty.

Mr Kunda said it was his desire to concentrate more on mitigating disasters and, to that effect, he intended to strengthen disaster management.

He said his predecessor, President Rupiah Banda, had left some framework on which he hoped to improve disaster management.

He said funds permitting, he would focus on the fight against poverty by putting up infrastructure such as schools and hospitals

[Times of Zambia]

Minister of Information and Broadcasting Services, Ronnie Shikapwasha said reports in The Post newspaper that Government had increased emoluments for the President, constitutional office-holders and senior Government officials were misleading as it had actually reduced the proposals compared to the earlier ones.

He said there was need for Zambians to commend Government as it had reduced the emoluments to 15 per cent in line with the increment awarded to public service workers early this year.
Lt-Gen. Shikapwasha said the recently amended allowance and salary increases for the President had translated into a saving of K250 million per annum.

Lt-Gen. Shikapwasha said the President’s annual special allowance had been reduced from K157,210,523 per annum to K59,194,734 per annum while the annual responsibility allowance of K150 million per annum had been scrapped.

He said in comparison to the earlier proposed increments, the amended emoluments indicated a reduction of over K150 million per annum across the board.

“The reduction should, therefore, be appreciated as an act of sacrifice on the part of the constitutional office-holders.

“The parliamentarians collectively supported President Banda’s statement that the State can not manage to pay the earlier proposed emoluments because of the dwindled coffers resulting from the two major national events (State funeral and presidential election),” Lt-Gen. Shikapwasha said.
He said it was malicious for some sections of the media to further suggest that President Banda passed the salary increments when it was members of all the political parties represented in Parliament who overwhelmingly supported the bills.

Lt-Gen. Shikapwasha said it was wrong for the media to quote Vice-President, George Kunda, as having said Government had sufficient funds to meet the earlier proposed salary increments.
He said Mr Kunda stated in the House that the treasury currently had insufficient resources to cover the proposed emoluments payable to the President in full due to the heavy expenditure Government incurred on the just-ended presidential election and the funeral of President Mwanawasa.
Meanwhile, Lt-Gen. Shikapwasha said reports in The Post quoting Southern Province minister, Daniel Mukombwe, as suggesting that some churches in the country were becoming political agents of genocide were misleading.
He said the reports were incorrect and that Mr Mukombwe only referred to people who were agitating confusion in the country.
The minister said Mr Mukombwe was an experienced politician who understood the important role the church played in national development.
Lt-Gen. Shikapwasha urged those calling for the condemnation of Mr Mukombwe to critically analyse his statement and not rush to conclusions.
“As a nation with established institutions and channels of communication, we should avoid issuing inflammatory statements on unsubstantiated claims.
“Let all those who have chosen to deliberately misinterpret Mr Mukombwe’s statement read the verbatim report from Parliament because as Government, we shall not condemn him over a statement that has been deliberately misinterpreted and taken out of context,” he said.
Radio Icengelo station manager, Father Frank Bwalya, is quoted in yesterday’s edition of The Post as condemning Government and the MMD’s failure to condemn Mr Mukombwe’s alleged negative utterances on the Church.

[Daily-Mail]

It is shameful and un-African to neglect elderly parents and grand-parents on account of ill-health, Southern Province Minister Daniel Munkombwe has said.

And Dambwa North Senior Citizens Organization (DANESECO) president, Saxon Simachembele, has said that the massive wastage of knowledge and skills that goes with retired people is worrisome.

In a speech read for him by Southern Province Permanent Secretary,Darius Hakayobe during the official launch of the Dambwa North and Maramba Senior Citizens Organization, Mr. Munkombwe said
it is a source of deep concern that the rights of senior citizens have continued to be violated daily and added that government is determined to deal with the scourge.

“The abuse of senior citizens is a phenomenon that has been observed by my province and the nation to be increasing and becoming more prevalent in our communities and nation,” the minister said.

Mr. Munkombwe said government is determined to deal with the scourge by preparing the Senior Citizens Policy, the Senior Citizens Legislation and the Senior Citizens Regulations to ensure that the
rights of senior citizens are protected and safeguarded fully.

“I ask you to prepare a senior citizens policy that will guide development for the elderly and provide for legislation and regulations which will stop such practices as elderly abuse and senior citizens neglect and abuse of the rights of senior citizens,” Mr. Munkombwe said.

The minister said although Zambia is a relatively youthful country in comparison with European countries, it still needs its elderly citizens.

“This is because the youth are impulsive and not as patient as the elderly. “We need not abuse the elderly because of their massive contribution to the development of the nation,” he said.

The minister said the new deal government strongly supports senior citizens through Non Governmental Organizations and promotes initiatives that promote self-reliance and self-help among senior citizens.

“We need to support senior citizens to be able to support themselves because it is only then that they will be able to support their children and grand children,” he said.

And Dambwa North Senior Citizens Organization (DANESECO) president, Saxon Simachembele, has said that the massive wastage of knowledge and skills that goes with retired people is worrisome.

Mr. Simachembele said the non-existence of government programmes to go along with retirement has contributed to massive wastage of skills and knowledge among retired people.

He said there is need for government to establish a register and pool of retirees whose skills and knowledge in any particular field can easily be accessed whenever required by any public or private
organization.

Mr. Simachembele said retirees are faced with numerous challenges that include looking after orphaned children owing to the HIV/AIDS pandemic, and added that retired people have little chance of participating in income-earning activities.

“Let me highlight that problems faced by senior citizens are legendary. It is in this light that our organization was formed,” he said.

The said the newly launched organization would create economic opportunities as it would create employment and that members will accrue other economic benefits.

Mr. Simachembele has called on government to cooperate by providing guidelines of how to access capital equipment and easy-term financing to ensure the uplifting of living standards among senior citizens.

ZANIS/ENDS/MM/EB.

Government has projected price reduction end of 2008 following the procurement 90 metric litre at the cost of US $ 53 million.

And government says it has embarked on a construction and rehabilitation of two (2) million litre-storage infrastructure for petroleum strategic reserves in each provincial centre across the country through a tendering process.

Presenting his his ministrial statement in Parliament , Thursday, Energy and Water Development Minister Kenneth Konga said the projected low fuel prices will also be due to next month’s favourable exchange rate he hoped would be favourable.

He said prices of oil on the world market have reduced from US$140 to US$60 or less per barrel.

He said government has envisaged a subsidizing mechanism that would be administered by the National Union Pricing Programme (NUPP) under the National Energy Policy where fuel would be sold at par (same) in both rural and urban areas.

Mr. Konga disclosed that the construction and other rehabilitation works at Chipata, Mongu, Mansa and Livingstone depots were expected to be completed in February, 2009.

Mr. Konga revealed that government has signed a 2-year contract with an International Finance Company to supply crude oil 30 to 45 days in advance as it has learnt lessons in the past where the country was plunged in fuel crisis.

The Minister said at Indeni in Ndola, government has bought a US$2 million 40 metric litre depot for diesel but was quick to point out that the government has put in place measures to curb the possible shortages that rocked the country in the recent months.

He explained that variation in fuel market prices were done on detects of demand and supply and that lack of adequate bulk fuel storage depots were a limiting factor.

And on electricity, the Energy Minister said load shedding will continue because of the shut transmission line that collapsed at one of the major power stations.

Mr. Konga said government working with ZESCO is rehabilitating the generators so that they normalise soon.

He added that construction of smaller power stations from across the country has started at Kalungwishi at cost of US$780 million to produce 210 Mega watts (MW); Itehzi-tehzi 120MW (US$270m); Kabompo 34MW (US480m) Kariba North Bank Power Extension project 360MW (US$312m) and Kafue Gorge Lower Station 750MW to cost close to US$2 billion respectively.

ZANIS/KC/ENDS/MM

The Zambia National Farmers Union -ZNFU- has warned of higher mealie meal prices for the next two years if the government does not further subsidise prices of fertiliser this year.

ZNFU President, Jergis Zimba, says government should subsidise fertiliser prices further to benefit both small scale and commercial farmers.

Mr. Zimba says if this is not done, maize production will dwindle compelling the government to import the commodity.

The ZNFU president was speaking when he made submissions for the 2009 national budget before Finance Minister, Situmbeko Musokotwane, in Lusaka on Thursday.

Dr. Musokotwane also met officials from the Zambia Association of Manufacturers who submitted that government should not tax manufacturers before production.

Mealie meal prices in the country have been increasing in the last few weeks.

On Wednesday, Bank of Zambia Governor, Caleb Fundanga, called on the Food Reserve Agency (FRA) to start selling maize to millers in a bid to address the rising prices of mealie meal.

[ZNBC]