The government will increase the price for the stake in state-owned Zambia National Commercial Bank (Zanaco) it is selling to Rabobank after criticism of the deal, a government agency said on Wednesday. The government has come under fire from trade union groups and some opposition parties for agreeing to sell the 49 percent stake in Zanaco to Dutch bank Rabobank for $8.3 million.

The Zambia Development Agency (ZDA), which is supervising the sale, said in a statement that Rabobank and the government would appoint independent auditors to re-assess the net asset value of Zanaco, one of the sub-Saharan country’s largest retail banks.

“(The government) and the strategic investor will commission an independent auditor to determine the net asset value of the bank … on which basis the price adjustment will be made,” the ZDA said.

The ZDA said the purchase price for Zanaco was based on the bank’s financial assessments conducted in December 2004. Since then, the bank’s assets had grown and it was making more profit.

“Over time, however, the financial status of the bank has changed, and there is therefore need to assess the change which will result in a price adjustment as provided for in the sale and purchase agreement,” the ZDA said.

The ZDA said the government had agreed with Rabobank to maintain rural branches that serve farmers for a period of 10 years after complaints that farmers would not manage to obtain favourable terms and services from other multi-national commercial banks.

“Contrary to apprehensions and concerns by the public, (Rabobank) has agreed with the government that it will maintain all existing rural branches for a period of 10 years with the exception of possible relocation of branches,” the ZDA said.

The agency said plans to float a further 25.8 percent of Zanaco held by the government on the Lusaka Stock Exchange (LuSE) would be concluded soon, but gave no exact date.

Under the deal, the government would retain 25 percent shares after the LuSE listing, while minority shareholders would retain 0.2 percent shares.

The sale of nearly half of Zanaco has dragged on for nine years and has been surrounded by controversy after the International Monetary Fund (IMF) placed the privatisation of the bank as one of the conditions for Zambia’s access to IMF loans.

Government has revealed intentions to open up an Immigration border post at Ndunga on the border with Angola this year.

Kabompo District Commissioner, Teddy Chipimpa, said government is concerned at the rampant illegal traffic across the border.

Mr. Chipimpa said the absence of an immigration post has created an increase in illegal hunting and fishing between Zambian and Angolan nationals.

He was speaking at a meeting held at Chief Chiyengele's palace yesterday..

The district commissioner implored both Zambian and Angolan nationals to comply with existing immigration laws of both countries.

He said government is ready to launch the construction of the immigrations border post at Ndunga this year.

ZANIS

UNITED Party for National Development (UPND) president Hikainde Hichilema, says his party is strengthening its structures so that it can be ready for the 2011 tripartite elections.

Mr Hichilema who did not state clearly whether UPND would abandon the United Democratic Alliance (UDA) if he was not elected as presidential candidate in 2011 said his party wanted to avoid the predicament of 2006.

The other members of the UDA are Forum for Democracy and Development and the United National Independence Party.

“The UDA’s strength is dependant on the coalition of the three political parties but UPND is putting its resources together starting from the grassroots for the elections in 2011,” Mr Hichilema said in Ndola after a card renewal meeting and fundraising braii at Shalom Park.

“The party has embarked on campaigns for the 2011 tripartite elections in time for it to be a strong party with a strong candidate,” he said.

Mr Hichilema earlier said there were a lot of mistakes made under the UDA, which resulted into the coalition losing last year’s tripartite elections.

“There were a lot of arguments in the selection of the UDA president, members of parliament and mayors, resulting into loss of time for campaign.

“I was elected UPND in July and I was chosen as UDA presidential candidate in August after arguing so much among stakeholders,” he said.

Mr Hichilema said UDA had only 45 days for its campaign, while MMD had an advantage as it campaigned for almost two to four years.

And Mr Hichilema said since democracy had been achieved in Zambia, what was required was economic and social development.

He said the opposition and the ruling party should concentrate on the agenda of social and economic development.

Daily Mail.

The ruling MMD and some opposition political parties have differed on how to treat the invitation from the Oasis Forum to attend a stakeholders meeting to discuss the constitution making roadmap.The Oasis Forum would this Saturday hold a meeting in Lusaka aimed at reaching consensus on the constitution making roadmap.

The MMD, Forum for Democracy and Development (FDD) and the United Party for National Development yesterday gave different opinions on the Oasis Forum meeting.

MMD chairman for information and publicity, Benny Tetamashimba said: “As at now, as chairman for information and publicity, I have not heard of an invitation from the Oasis Forum from either the national secretary of the party or the President.”

Mr Tetamashimba wondered what purpose the meeting would serve when Government had already accepted to have the constitution adopted through a constituent assembly, which the Oasis Forum was advocating.

He said it was unfortunate that the Oasis Forum, which earlier allegedly fought former President Frederick Chiluba’s attempt to change the constitution for his third term bid, was now trying to forgo some provisions of the constitution.

“If there is a short-cut, let them tell us how to go around Article 79.

They should tell us that if we change that article then there will be no poverty and we can change it tomorrow,” Mr Tetamashimba said.

He said the national budget had just been approved and that Government would proceed according to the people’s wishes, which was in line with the Republican Constitution and the Constitution Review Commission recommendations.

Mr Tetamashimba said if the MMD received the invitation for the meeting, it would attend and defend its position in line with the law.

UPND spokesperson, Charles Kakoma said the UPND would attend the meeting since it had been calling for a stakeholders meeting to discuss the constitution-making process.

“We were pushing the Oasis Forum to organise the meeting because they are neutral and would rally behind everyone.

We did not want to push that ourselves because it would look political, it is good if they have taken that initiative,” Mr Kakoma said.

FDD national secretary, Newton Ng’uni said he was only aware that political parties were planning to meet soon under the Zambia Centre for Inter-Party Dialogue (ZCID) to discuss among other issues, the constitution-making process.

He said there was a held view that non-governmental organisations (NGOs) should invite political parties to such meetings when it was supposed to be vice versa because political parties were major stakeholders on a day-to-day basis on governance.

Mr Ng’uni who is a ZCID board member said it was time that political parties made their stance known over the constitution-making process before meeting NGOs.

“Later on, I foresee a situation where political parties will meet NGOs to see what differences need to be ironed out,” Mr Ng’uni said.

He said ZCID planned to meet President Mwanawasa in his capacity as both MMD and republican President over the constitution-making process.

Mr Ng’uni said a date for the meeting would be known this week.

In an interview in Lusaka yesterday, Oasis Forum chairperson, William Mweemba, said the stakeholders’ meeting on the constitution-making process was planned for April 14, 2007.

“We are holding a stakeholders meeting to discuss the constitution-making process so that consensus can be reached,” he said.

Mr Mweemba who is also Law of Association of Zambia chairperson said the Oasis Forum had invited over 80 participants drawn from political parties, including the ruling MMD, civil society organisations and professional bodies.

He said it was important that differences in timings between Government’s roadmap and that of the Oasis Forum were addressed.

Mr Mweemba said Oasis Forum’s alternative roadmap on the constitution-making process met all legal requirements as constitutional lawyers prepared it.

He said there were some steps in the roadmap that Government considered which the forum found unnecessary.

He said it was important for the two parties to sit and discuss the two roadmaps so that consensus could be reached on the matter.