Bank of Zambia Governor Caleb Fundanga says the financial and economic crisis that developed nations were facing will have a slight effect on the Zambian economy as Zambia’s foreign reserves were belt-up when the country’s economic performance was buoyant.

And the Bank of Zambia has recorded an increase in the cases of counterfeit banknotes in both local and foreign currencies in the second quarter of 2008.

Addressing the Press in Lusaka today, Dr Fundanga, who however appealed to developed countries to inject more money in shrinking economies in the world, said Zambia will slightly be affected by the economic and financial crisis as the country had only spent about US$134 million in foreign investment portfolios in its foreign reserve.

He said like most countries in Africa, Zambia was not fully integrated in the world financial markets, therefore the country’s Banking sector may not be immediately be affected by the negative effects of the financial crisis in the USA and other developed countries.

Dr Fundanga, however, said that the financial turmoil had already resulted in a reduction in projected global economic growth and decline in demand for Africa’s exports, as the USA remains one of the largest players in the world economy.

He further said that despite the financial crisis that the world was facing, interests in African countries has continued to rise partly because rates of return are higher compared to those in developed nations adding that Foreign Direct Investment has continued to grow in Zambia.

Dr Fundanga added that the Zambian foreign exchange market has been partly affected through withdraws by foreign portfolios investors in the Zambian government and private securities on account of demand for liquidity and global risk aversion.

He however assured investors not to panic as the country’s economic fundamentals were still strong and

that cooperating partners were still disbursing financial support to make sure that the country’s financial system remained stable with increased vigilance in the supervisory oversight.

Dr Fundanga further warned that the prolonged recession in the global economy might deepen the risk aversion and discourages both portfolio and foreign direct investment flows into the country.

He said that the slow down in portfolio investments and possible cuts in overseas development assistance may unfavorably affect Zambia’s economic growth and development.

And the Bank of Zambia has recorded an increase in the cases of counterfeit banknotes in both local and foreign currencies in the second quarter of 2008.

Bank of Zambia Governor Caleb Fundanga said that the Bank has this year recorded 30 cases as compared to 21 cases in the first quarter of the year.

Dr Fundanga said that a combined team of both the Bank of Zambia officials and the Zambia Police Service has since recovered counterfeit banknotes amounting to US$2.5 million and has since apprehended two suspects in Mufulira.

He said out of the 51 cases recorded in the country five people have been successfully prosecuted that included three people who were convicted and sentenced to three years in imprisonment in a Nakonde Magistrate Court.

Dr further said that the Court also convicted one person to one year in imprisonment in Lusaka adding that two people were also sentenced to three years imprisonment in Chisamba and one suspect sentenced to a one year imprisonment in a Mpika Magistrate court.

ZANIS/TK/AM/ENDS

The National Pension Scheme Authority (NAPSA) has bemoaned the poor compliance by employers in registering their eligible employees to the Authority.

NAPSA Director of Contributions and Benefits Yollard Kachinda says the non remittance of pension contributions is threatening the long-term financial sustainability resulting in the Authority failing to fulfill its obligation of paying the retires.

Mr. Kachinda pointed out that NAPSA is mandated to administer and enforce provisions of the National Pension Scheme Act of ensuring that employers comply with the provisions of the Act.

Mr. Kachinda was speaking in Lusaka today when he officiated at the Prosecutors’ One-month Course held at the Zambia Institute of Advanced Legal Education (ZIALE).

15 prosecutors from NAPSA and one from Ministry of Labour and Social Security are under-going a criminal and evidence procedure course aimed at educating employers to be remitting contributions of its workers to the NAPSA.

He disclosed that more than 200 defaulting employers were prosecuted from across the country.

And speaking earlier, ZIALE Deputy Director Rodgers Chibuye said his organisation welcomes partnerships in exposing those not remitting workers’ contributions to institutions such as NAPSA.

ZANIS/KC/AM/ENDS

A 53-year-old Movement for Multi-Party Democracy (MMD) Official yesterday narrated in the Nchelenge Magistrate’s Court how some suspected Patriotic Front (PF) cadres showered unprintables at her together with President Rupiah Banda on 1st November this year.

Diana Mulenga, a resident of Shinjoni Village in Nchelenge, told the court presided over by Magistrate Fred Musaka that on the material day a group of youths chanting PF slogans also threatened to cut off her legs if the then MMD Presidential candidate, Rupiah Banda, won the elections.

This is in a case where nine suspected PF cadres have been charged with conduct likely to cause a breach of peace contrary to Section 178 Sub Section (F) Chapter 87 of the Laws of Zambia.

Particulars of the offence are that, while acting together and without lawful authority, on 1st November this year, the nine accused men did act in a manner likely to cause a breach of peace at Kashikishi old market.

Ms Mulenga, who is MMD Nchelenge Constituency Chairperson said the youths, who started chanting “No Sata no peace” also stoned her restaurant and the warehouse from where she sales soft drinks.

She, however, could only identified one Albert Kopa, who she said was the leader of the group, adding that she heard him saying Kashikishi residents were timid by fearing the police instead of throwing stones.

“I even heard him say that if the MMD was to win, his group was going to start a war, torch houses and go to the street to start throwing stones,” Ms Mulenga said.

But during cross examinations by the accused, Ms Mulenga conceded that she was unable to identify the rest of the accused because she did not see them in the act.

Another witness, 46-year-old Denis Mukunta of house number L8 Nchelenge High School Teachers Compound, described how he alerted police around 21:00 hours on the same day after he witnessed the accused trying to set ablaze an electricity pole.

Mr Mukunta, who is the Deputy Head at Nchelenge High School, said he was going to Kashikishi to get some groceries when he heard excited screams and saw a mob of about 20 youth dismantling marketers tables which they heaped around a Zesco pole and started setting it ablaze.

He told the court that that he called police who came and apprehended some of the members of the mob and put off the blaze.

Magistrate Musaka granted eight of the accused with K200, 000 cash bail with two working sureties and ordered them to be appearing every day at 08:00 hours until the case is disposed of.

The matter has been adjourned to November 21, 2008 for continued trial.

ZANIS/ENDS/ESM/EB.

Zesco has announced that it will reduce power generation from its Kariba North Bank power station in order to carry out repair works.

Zesco Senior Manager for Marketing and Public Relations Monica Chisela said the company will switch off one of the two power lines as it carries out repair works on the 330 Kilo volts Kariba north bank power station line to Loaders hill.

Addressing the media at Zesco offices in Lusaka today, Ms. Chisela said the move will also allow a safe working environment on the line.

She said the reduced power generation at the power generating station will also result in increased load shedding during certain times of the day in order to maintain the power supply balance.

Mrs. Chisela has however advised customers that the impact of load shedding can be minimized if the demand on the limited power currently available is reduced.

She added that both domestic and commercial customers should therefore ensure that all non-essential appliances are switched off during peak hours to minimize electricity consumption.

Ms. Chisela has however assured customers that Zesco will expedite the repair works in order to restore the line in time.

And Ms. Chisela has disclosed that the Zambia-Zimbabwe power inter-connector which was switched off in September after some disturbances on the line was last week switched on.

She said the power inter-connector between the two countries was switched on after a series of consultations with the Zimbabwe Electricity Supply Authority (ZESA).

ZANIS/CM/AM/ENDS