President Levy Mwanawasa has described as unfortunate the decision by British Prime Minister Gorden Brown not to attend the European Union (EU)-Africa summit if Zimabwean leader Robert Mugabe will be invited for the meeting.

He said through his decision, Mr. Brown will deprive Britain’s chance to discuss any contentious issues it has with Zimbabwe during the Lisbon Summit.

Meanwhile, Germany and other European Union (EU) member states will attend this weekend’s Lisbon Summit in Portugal despite the decision by Britain to boycot the meeting.

President Mwanawasa said this in Berlin today during a press briefing after holding private talks with Germany Chancellor Angela Merkel at the Chancellery.

This was after Dr. Mwanawasa, who is also SADC Chairman, was officially welcomed with military honour at Dr. Merkel’s official residence.

Dr. Mwanawasa said solutions to any problems Britain had with Zimbabwe did not lie in boycotting the summit.

Dr. Mwanawasa said it was better for the British Prime Minister to attend the summit and raise all issues he had with Zimbabwe during the gathering of Eurpean and African heads of states.

The president was however happy that although Mr. Brown would personally not attend, Britain would be represented at the ministerial level.

He said the issue of Zimbabwe would be discussed at the Lisbon Summit but it would not be allowed to dorminante the summit.

Mr. Mwanawasa said he had decided to visit Germany because the country played a big role in the development of Zambia.

The President invited the private sector in Germany to come and invest in Zambia because the country was in a hurry to develop and needed people who would exploit its abundant natural resources.

He said the country needed investors who would partner with the local capital to excellerate development in the country.

Dr. Mwanawasa has since invited the Germany Chancellor to consider visting Zambia when she decides to come to Africa.

“Zambia is the real Africa. You cannot say that you have visited Africa if you have not visited Zambia,” Dr. Mwanawasa told the Germany Chancellor.

And speaking earlier, Germany Chancellor Angela Merkel said President Mwanawasa’s official visit to her country has intensified the relationship between the two countries.

“Since Zambia is the current Chairman of SADC, this visit has intensified the relationship between SADC and the European Union and Zambia in particular,” Dr. Merkel said.

She described the relationship between Zambia and Germany as ‘very friendly’ and commended President Mwanawasa for visiting her country.

She reiterated that Germany and other EU countries would attend the EU/AU Summit this weekend.

Dr. Merkel said the AU/EU Summit which would be held in Portugal was very strategic to the interests of both the African Union and the EU.

Government has denied claims by second republican president Dr. Frederick Chiluba that it has instructed  three  parastatal companies to transfer their insurance  policies from Zambia State Insurance Corporation (ZISC) to the privately owned Professional Insurance.

 

Finance and National Planning Minister Ngandu Magande disclosed that Zambia Electricity Supply Corporation (ZESCO) decided to transfer its assets to Professional Insurance in 2004.

 

Mr. Magande told journalists in Lusaka today that government in 2004 decided to leave ZISC through a competitive tender process, which was undertaken, because the business by the insurance company was becoming uncompetitive.

 

The Minister stressed that in a liberalised state, it would be erroneous for government to command parastatal firms on how to conduct business.

 

Dr. Chiluba during a press conference at his Kabulonga residence claimed that President Mwanawasa’s government had directed Indeni Oil Refinery, Tanzania – Zambia (Tazama) Pipeline and ZESCO to transfer all their assets from ZSIC to Professional Insurance.

 

Mr. Magande said it was not right for the former Head of state to be talking about such matters now, whose decision was made three years ago.

 

He said ZESCO had just had a newly constituted board whose members he was not familiar with.

 

The Minister further denied allegations of instructing ministries and departments to move their bank accounts from Zambia National Commercial Bank (ZANACO ) to a privately owed  financial institution.

 

He said the decision for the government to choose which financial institution to provide banking  services is made by the Secretary to the Treasury and controlling officers in  ministries and departments.

 

He said their chioce of the bank is based on the financial institution that is usually selected every year through an open tender .

 

He said the Auditor General, together with the Chief controlling officer and Bank of Zambia (BOZ) select from the tenders received, which banks should provide services in that particular period.

 

He said it is through those selected financial institutions that the chief controlling officer and his controlling officers would choose the bank which would be convenient to their operations.

 

Currently about seven local banks are providing banking services to various government ministries and departments.

 

These Include ZANACO, which has the majority of the government accounts, Finance Bank, Barclays Bank, Indo Zambia Bank, Citi Bank, First Alliance Bank and Stanbic Bank.

 

Mr. Magande said under the Public Financial Act CAP 349, the Secretary to the Treasury was responsible for government resources.

 

He said it is the reason why ministers do not appear before the Parliamentary Accounts Committee (PAC) as they have no idea as how the money is managed and utilised.

 

Mr. Magande said Dr. Chiluba might have not heard rightly when government stated that it would withdraw its money in commercial banks that was lying idle.

 

“what I am saying is  that I am denying ever instructing  ministries to transfer their money. Maybe what the former head of state did not hear correct was the announcement to withdraw government money in commercial banks that was lying idle,” he stressed.

 

 He said government wants to improve the management of the treasury hence the decision to ensure the funds which ministries are not utilising are kept in a special account at BOZ.

 

He said it was not the intention of the new deal government to run government affairs as was the case under Dr Chiluba’s regime.

 

Mr. Magande  has since challenged  Dr. Chiluba to avail audited reports for the year 1996 to 2001 to enable the public to compared with the current audit reports on the misappropriation of resources.

 

The Anti Corruption Commission (ACC) has arrested former Zambia Airforce Commander Air Commander, Lieutenant General Christopher Singogo and Captain Joseph Phiri for abuse of authority of office and theft by Public Servant.

According to a statement issued by ACC spokesperson Timothy Moono, Lt. Gen. Singogo and his co accused are charged with two counts of theft by public servant.

In the first count, Lt. General Singogo, 57, of Plot number 1, Kalembwe Close in Rhodes Park, Lusaka, has been charged with one count of abuse office contrary to section 37(1) and (2)(a) and 41 of the Anti Corruption Commission Act No. 42 of 1996.

Particulars of the offence are that Lt. General Singogo unilaterally and without authority but for purposes of gain, disregarded Zambia National Tender Board procedures and purchased two generators and accessories for the Zambia Air Force valued at K117, 715,940.00 and thereafter directed that they be installed at his guest houses namely Wane Guest Lodge in Livingstone and Wasingo Guest Inn at PHI in Lusaka.

In the second count, Lt. General Christopher Emmanuel Albert Singogo has been jointly charged with Captain Joseph Phiri, 31, of ZAF Lusaka Base, a Zambia Air Force pilot and former ADC to Lt. General Singogo, for theft by public servant contrary to Section 272 and 277 of the Penal Code Chapter 87 of the Laws of Zambia.

Particulars of the offence are that Lt General Singogo and Captain Phiri did steal one standby-power generator valued at K32,153,800.00 the property of the Government of the Republic of Zambia.

Lt. General Singogo and Captain Joseph Phiri have been released on a K50 million bond in their own recognizance and will appear in court for plea on December 17, 2007.

Meanwhile, Inspector General of Police Mr Ephraim M. Mateyo has sent a message of condolences to the family of the late Kanyama Member of Parliament Henry Mtonga.

Mr Mateyo said the death of the late Mr. Mtonga was not only a loss to the family alone but to the nation as a whole.

The late Mr. Mtonga who was a former Inspector General of Police deid in South Africa last Friday after an illness.

Government has disclosed that extensive work has been done towards the development of an optimal fiscal and regulatory regime for the mining sector.
Finance Minster Ngandu Magande says only a few ‘final touches’ remained before the 15 member team concluded its work whose outcome would be announced in the 2008 national budget.

Mr. Magande said at a press briefing in Lusaka today that an optimal fiscal and regulatory regime once put in place would ensure that Zambians got a fair and equitable share of their resources..

He added that the regime would also enable the mining companies get an appropriate return on their investment.

The Minister stated that governments objective is to have a strong and robust mining sector with a fiscal and regulatory regime that is efficient and attractive to investors.

“With this kind of regime , I do not see any need for Development Agreements (DA) in the future because all the intents and purpose of which the investors want DA shall be provided in the framework,’; he stated.

Mr. Magande said the status of the negotiations on the mining agreements, the principal should be the case for all other sectors in the economy.

He said because of the concessions under the Development Agreements (DA) with the mining companies, contributions are not consistent with the revenues being made by the mining companies.

The Finance Minister said it is clear from their contributions that there is inequality in the sharing of revenues from the country’s major resources.

He stressed that the mining companies should contribute more to government in order to fulfil the stated purpose of the DA which are to secure the maximum benefit and adequately contribute to the advancement and social and economic welfare of the people of Zambia.

“This clearly demonstrates the lopsidedness of these agreements and under such circumstances, it is extremely difficult for the government to continue signing further Development Agreement on the same terms,” he said.

Mining companies are this year projected to earn about US$3.5 billion of which only 10 percent (US$198 million) will be paid to government in tax contributions.

Due to rising copper prices on the international market, mining companies in the last two years, earned US$1.6 billion and US$3.1 billion respectively while US$26 million and US$76 million was paid to government as taxes.

Government had appointed a team, comprising technocrats from government ministries and departments to renegotiate the Mining Development Agreements (DA) because of the stability clauses in the DA.

The teams mandate was however extended so that they could also come up with an optimal fiscal and regulatory regime for the sector for the future.

The team chaired by Secretary to the Treasury Evans Chibiliti has undertaken consultative visits which include major mining countries such as Chile.

The team had also engaged international consulting firms from Norway and the USA purely to assist them with an international perspective and best practices on the matter.

Findings by the team revealed that Zambia’s fiscal regime comparable to other mining countries has the lowest effective tax rate in the mining sector.

Zambia’s effective tax rate under the DA regime stands at 31.8 percent, while Zimbabwe was at 41.3 percent, South Africa at 43.4 percent and Angola at 53 percent.

At International level, Zambia still has the lowest effective rate followed by Peru with rate of 39.7 percent.

A group of writers has criticised European and African leaders for not putting Zimbabwe and Darfur at the heart of an upcoming summit. The writers, who include Vaclav Havel and Nadine Gordimer, said the two crises should be on the agenda of next weekend’s EU-Africa summit in Portugal. In an open letter, they called the omission “political cowardice”. Also, the US has announced new sanctions on Zimbabweans close to the country’s President, Robert Mugabe. The US Assistant Secretary of State for African Affairs, Jendayi Frazer, said the travel and financial sanctions were aimed at 40 people who were close to Mr Mugabe. About six people are facing financial restrictions and US travel bans have been placed on another three dozen people. “Given Mugabe’s escalated use of violence, the United States will be imposing additional sanctions against the worst perpetrators of the regime’s brutality,” Ms Frazer said. She said 2007 had been the worst year for human rights abuses in Zimbabwe. ‘Morally impoverished’ The upcoming EU-Africa summit in Lisbon has been overshadowed by the threat of British Prime Minister Gordon Brown to stay away if Mr Mugabe attends. Britain, other EU countries and the US accuse Mr Mugabe of economic mismanagement, failure to tackle corruption and human rights violations that have led to soaring inflation and chronic food shortages. In the Sudanese region of Darfur, four years of conflict have driven more than 2m people from their homes and led to an estimated 200,000 deaths. The group of more than dozen prominent writers said millions of Europeans and Africans would expect Darfur and Zimbabwe to be at the top of the agenda of the summit. “What can we say of this political cowardice? We expect our leaders to lead, and lead with moral courage,” the writers’ said in an open letter published on Tuesday in newspapers in Europe and Africa. “When they fail to do so they leave all of us morally impoverished.” In addition to Mr Havel and Ms Gordimer, Gunter Grass, Roddy Doyle, Tom Stoppard, Jose Gil, Colm Toibin, Wole Soyinka, Mia Couto, Chimamanda Ngozi Adichie, Gillian Slovo, Ben Okri and JM Coetzee also signed the letter. [BBC]

CHIEF Government spokesperson, Mike Mulongoti, has asked former President, Frederick Chiluba, to prove allegations that Government departments have been directed to close accounts with the Zambia National Commercial Bank in preference to Finance Bank. Mr Mulongoti, who is also Minister of Information and Broadcasting Services, said in a statement yesterday that Dr Chiluba was telling lies that Government departments had been requested to transfer their insurance policies from the Zambia State Insurance Corporation to Professional Insurance Corporation which, like Finance Bank, is owned by Dr Rajan Mahtani.

 PATRIOTIC Front (PF) president Michael Sata says the National Constitution Conference (NCC) Act is

Former President Frederick Chiluba today declared that he would hit back at any attacks on his person, character and the way he ran government between 1991 and 2001.

Dr Chiluba says he has for a long time ignored attacks aimed at discrediting him and his administration, mainly from the Movement for Multiparty Democracy (MMD), the party which he led from 1990 to 2002.

He said he was tired of tolerating indifferences that were diverting his attention from real issues, but were instead creating an impression that he destroyed the nation during his one decade regime.

Dr Chiluba was speaking today at his residence in Lusaka during a press briefing tailored to reactions by President Mwanawasa, Minister of Information Mike Mulongoti and Deputy Minister of Finance, Jonas Shakafuswa on issues he raised on November 25th, this year at the Lusaka International Airport when he returning from his routine medical review in South Africa.

On his arrival at the Lusaka International Airport on November 25, this year, Dr. Chiluba asked for confirmation from government on rumours that ministries and government departments have transferred their bank accounts from the Zambia National Commercial Bank, a parastatal to Finance Bank, which is a private bank.

Dr. Chiluba also asked government to explain rumours that it directed biggest parastal companies namely Tazama, ZESCO and Indeni to close their insurance policies at Zambia State Insurance Corporation and move to Professional Insurance, a private company.

He also said the New Deal administration of President Mwanawasa was merely reaping the fruits of the economic policies which he initiated.

Dr Chiluba told journalists that he would now begin to respond to issues raised against him in order to establish the truth and clarity, adding that his continued silence in the face of incessant attacks on his person has been misconstrued.

“So the days of keeping quiet are over and anyone pointing a finger at my administration or me should expect a quick response,” he said.

“I have tried hard since 2002 when President Mwanawasa came to office to be quiet and allow the new deal government which I considered my own to operate with little or no distractions but all such efforts have only yielded mistrust”, he said.

Dr. Chiluba quoted from the Bible in the book of John 8:32 and Hosea 4:6 saying, “You shall know the truth and the truth shall set you free” and “My people perish for lack of knowledge” respectively.

The former president said it was now time to make ‘lively’ noise, quoting Proverbs 18:21, “It is Godly to speak wisely.”

He denied having neglected first President, Kenneth Kaunda’s family after they left office in 1991.

And Dr. Chiluba said Zambia could have significantly recorded development in some areas if the K88.2 billion reported in the Auditor General’s report to the Parliamentary Public Accounts Committee (PAC) as having been misappropriated between 2002 and 2005 was spent on developmental projects.

A total of K12.7 trillion was reported to have been registered as irregularities during the same period.

The former president also said there was much more corruption under the current administration that before, despite the current government being said to be operating on the principles of zero tolerance to corruption.

On the mining sector, Dr. Chiluba said the Anglo America corporation was intending to come back to Zambia because of high copper prices obtaining on the market and not because of good policies by the Mwanawasa administration.

Dr. Chiluba observed that although his administration had weaknesses, it also scored some successes which Zambians must recognise and appreciate.

He said some of the projects that were being undertaken and completed by the new deal administration were initiated by his administration.

“Let us appreciate each other’s contribution to the development of our country. We should not blame our failures on other,” he said.