I have no problem with the probe of the sale of Zambia National Commercial Bank -Magande
TIME PUBLISHED - Sunday, January 29, 2012, 2:34 pm
FORMER Minister of Finance and National Planning Ng’andu Magande has said that he has no problem with the probe of the sale of Zambia National Commercial Bank (ZANACO).
Mr Magande said he stands ready to be called upon to answer all queries, but quickly added that as Finance Minister he was not in charge of the actual selling of the bank. He said the President has constitutional powers to order a probe in matters he feels have been marred with irregularities.
President Sata on Friday directed Minister of Justice Sebastian Zulu to immediately probe the sale of Zanaco to establish whether procedure was followed when Dutch bankers Rabo acquired a 49 percent stake in 2007.
“I have no problem with the probe into the 49 per cent sale of Zanaco bank. But what should be understood is that Government acted on a decision that was made in 1998 by the Chiluba government. A decision which was in the best interest of the country looking at the state the banking institution was in,” Mr Magande said.
Mr Magande said in an interview that it was regrettable that the probe has started at a time President Mwanawasa is no more because he will not be there to answer any of the queries that might arise during the inquiry.
He said during the sale of the bank, only 49 per cent shares were sold to Rabo Bank while the rest were offered to Zambians, who have since acquired the shares.
“About 200 Zambians have shares in Zanaco and all the procedure into the sale of the bank shares was explained to Zambians, and to the Patriotic Front led by Mr Michal Sata and Dr. Guy Scott, who presented a petition to me.”
Mr. Magande said, “I explained the position Zanaco was in and the reason the government then decided to sell the institution (partially privatise).” He said he expects people who agreed to the decision to privatise Zanaco when called upon to appear before the commission to be truthful on the matters regarding the state of the bank at the time it was being sold to Dutch banker Rabo.
“The Levy Mwanawasa government acted on a decision that was made in 1998 by the Chiluba government because it was beneficial to the people just like the PF has continued with the MMD-initiated FISP (Fertiliser In-put Support Programme),” he said.
Zambia Union of Financial Institutions & Allied Workers (ZUFIAW) secretary General Joyce Nonde-Simukoko said the probes instituted by President Sata need support from all Zambians to clear suspicions regarding the sale of public institutions in the past.
Mrs Simukoko said people have the right to know how the former government sold public institutions because they are shareholders.
“People appearing on the commission must be able to tell the truth. We do not want people who will go there and tell things to please the President at Zambians; this is the only way to clear suspicions on how public institutions were sold so that the country can move forward.
“There is a lot of gossip and rumour mongering which creates tension in the country on how government operates,” she said. She appealed to the PF government to be transparent by disclosing how much they are spending on the commissions of inquiry and the constitution review because they are accountable to the Zambian people.
Sources within the bank said Rabo Bank bought a total of 49 per cent shares from government. Of the total, four per cent were sold to Zambia National Farmers Union (ZNFU). Government retained 25 per cent while 25 per cent were sold to the public.
And ZNFU executive secretary Ndambo Ndambo has welcomed the probe saying they are ready for the outcome of the investigations. ZNFU has shares in Zanaco. Mr Ndambo said the formation of the commission of inquiry to probe the sale of Zanaco is in the best interest of the nation.
“The President might have information regarding the sale of Zanaco which the public was not privy to during the sale in 2007. As shareholders, we welcome the move on behalf of the farming community,” he said.
[Zambia Daily Mail]
Labels: CORRUPTION, GUY SCOTT, JOYCE NONDE-SIMUKOKO, JOYCE SIMUKOKO, NG'ANDU MAGANDE, PRIVATISATION, RABOBANK, ZANACO
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Zambia backs Mugabe election push
26/01/2012 00:00:00
by Staff Reporter
ZAMBIAN President Michael Sata has said he would not block President Robert Mugabe’s push for new elections and dismissed Prime Minister Morgan Tsvangirai as a “stooge” of the West.
Mugabe and his Zanu PF party want new elections to end the coalition government insisting the compromise, negotiated by the regional SADC grouping after inconclusive elections in 2008, was no longer workable.
But MDC-T leader Tsvangirai, with the backing of SADC mediator and South African President Jacob Zuma, want work on a new constitution completed first along with a raft of other political reforms.
But Sata, who last September defeated incumbent Rupiah Banda and took over power in a peaceful transition, said the reforms demanded by the MDC-T leader were unnecessary, adding he would not block Mugabe’s call for new elections.
"You people, the Western countries, you taught us that democracy is elections. Now somebody wants elections and you say no," Sata said in an interview with the UK-based Telegraph newspaper.
"There will be elections and Mugabe will go and someone else will take over, but not someone imposed by the Western countries."
Sata also dismissed Tsvangirai – who is generally well regarded by the West -- as a stooge.
"We don't know the policies of Morgan – he has other people speaking for him rather than speaking for himself," he said.
Mugabe’s critics had hoped Sata would use his strong mandate to increase pressure on Zimbabwe but the Zambian leader said his country would do better to solve its own issues before meddling in those of others.
Labels: 2011 ELECTIONS (ZIMBABWE), MDC, MICHAEL SATA, MORGAN TSVANGIRAI, PF
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President Michael Sata directs Zambia Police to provide maximum security to Paramount Chief Mpezeni
TIME PUBLISHED - Wednesday, January 25, 2012, 4:13 pm
President Michael Sata has directed the Zambia Police to provide maximum security to Paramount Chief Mpezeni of the Ngoni people in Eastern province. This follows alleged threats of violence against chief Mpezeni from Chiefs Madzimawe and Zamane after he openly called for the lifting of former President Rupiah Banda’s immunity to allow him to clear himself against the corruption allegations.
The President said that Paramount Chief Mpezeni just like any other citizen has a right to speak out on issues affecting the Zambians. President Sata said that he may consider revoking the recognition of Chiefs Madzimawe and Zamane should they continue threatening violence against Paramount Chief Mpezeni.
President Sata has since asked the minister of Justice Sebastian Zulu to write to the two subordinate chiefs warning them against their unlawful activities.
Paramount Chief Mpezeni has described as malicious the Internet story that alleged that President Michael Sata had died.
Paramount Chief Mpezeni said politicians should learn to practice politics responsibly by discussing real issues that can contribute to the welfare of citizens and development of the nation and not issues that can destabilize and bring anarchy into the country.
ZANIS reports the Paramount chief was speaking in an interview with ZANIS in Chipata yesterday.
And Paramount Chief Mpezeni stressed the need for the police to get to the bottom of the issue and ensure that the authors of the story are brought to book.
He wondered why the trend had continued saying this was not the first time that people were spreading such ill rumours about the highest office in the land.
“The police should put an end to such falsehood because it will continue, this rumour was there even before his election when it was alleged that he had collapsed in Mongu,” he said.
The false story appeared on Wikipedia website recently. It alleged that President Micheal Sata had died. However , State House described the story as false and malicious.
Meanwhile, Paramount chief Mpezeni has appealed to government to quickly pay the 150 farmers who are still being owed money by the Food Reserve Agency (FRA) for the purchase of maize sold to the agency last year.
Paramount Chief Mpezeni expressed worry that farmers may not have enough yields in the 2011/12 farming season because they have not been able to procure farming inputs.
“Some of them have not even been able to send their children to school because they entirely depend of farming and they only get money once in a year after the sale of maize” he said.
And chief Jumbe of the Kunda people in Mambwe district has also complained about lack of payment to farmers by FRA for the purchase of maize in the 2010/11 farming season.
Chief Jumbe said it is sad that some farmers have failed even to cultivate their fields saying they may not produce enough grain in this year.
Chief Jumbe has since appealed to government to quickly address the situation to assis t farmers in the area.
ZANIS
Labels: CHIEF MADZIMAWE, CHIEF MPEZENI, CHIEFS, DEATH THREATS, FRA, MICHAEL SATA
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Investor confidence guaranteed observes Magande
TIME PUBLISHED - Wednesday, January 25, 2012, 9:02 am
National Movement for Progress Party president Ng’andu Magande has lashed out at some sections of society stating that the reversal of the ZAMTEL sale will bring about economic uncertainty.
Mr. Magande says stakeholders should not be scared of a decision that can result in Zambia benefiting through transparent ways of doing business. He says if the decision to reverse the sale of ZAMTEL was done in good faith, then the action should be supported.
He notes that Zambia should not be desperate for investment even when transactions are fraudulent.
Mr. Magande tells QFM in an interview that he hopes the decision to reverse the sale of ZAMTEL has been made in national interest.
He has since advised the Zambian government to put in place a team that will carry the vision forward in as far as advanced technology is concerned.
Labels: NG'ANDU MAGANDE, ZAMTEL
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Gaddafi loyalist troops retake Bani Walid
Wednesday, 25 January 2012 00:00
BANI WALID - The Libyan town of Bani Walid, which was also one of the last pro-Gaddafi strongholds to fall under the NATO-led invasion last year, was on Monday retaken by fighters loyal to Col Muammar Gaddafi.
Col Gaddafi was captured and killed by NATO-led insurgents on October 23.
The seizure of Bani Walid followed fierce fighting between pro-Gaddafi fighters and troops from the ruling authorities. The development was confirmed yesterday by an NTC official and commander.
"They control the town now. They are roaming the town," one militia member was quoted as saying of the pro-Gaddafi fighters, according to Reuters.
The fighters also shouted the former government slogan: "Allah, Muammar, Libya, that's it!"
Mubarak al-Fatamni, head of Bani Walid local council, told reporters that hundreds of well-equipped and highly-trained remnants of Gaddafi forces raised the green flag over buildings in the western city late Monday after hours of clashes, a move seen as a major blow to the interim government struggling to unify the oil-rich North African nation.
The National Transitional Council-led government initially denied the seizure of Bani Walid.
Interior Minister Fawzi Abdelali dismissed the claims, saying the firefight was caused by "internal problems" in the town.
He told Libyan television that the fighting was linked to "the issue of compensation for those affected by last year's war," although he confirmed that there some deaths.
Defence minister Osama Jweli refused to order army units to enter Bani Walid until he had established whether the fighting was indeed a pro-Gaddafi uprising or a battle between rival clans.
"There is conflict at Bani Walid," Jweli told the Guardian. "For the moment we are waiting to assess the situation."
However, a former NTC member M'barek al-Fotmani confirmed the retaking of the town:
"The loyalists of Gaddafi took control of the entire city of Bani Walid," he told AFP.
"There are around 100 and 150 men armed with heavy weapons who are attacking. We have asked for the army to intervene, but the defence ministry and NTC have let us down," he said.
These latest developments show the fragmentations in the new Libya, where an uprising against Col Gaddafi was spearheaded by the NTC in Benghazi.
Bani Walid also demonstrates "the NTC's weakness, incapacity and internal divisions".
NTC has imposed states of emergencies in various parts of the country due to the increasing insecurity.
There is growing discontent with the NTC and its chairman, Mustafa Abdel Jalil warned of a possible "civil war" following attacks on the NTC office at the weekend where home-made grenades were thrown at the office, before it was set alight.
The protesters denounced the Jalil-led government for lack of transparency and of marginalising rebels who fought against Col Gaddafi.
Last Sunday, also saw the NTC's deputy chair, Abdul Hafez Ghoga, resigning after demonstrations by university students.
A source confirmed to Xinhua that four soldiers from the NTC troops died during the fighting while 20 were wounded.
- The Herald/AFP/Reuters/Xinhua/Al Jazeera/AP.
Labels: LIBYA, MUAMMAR AL-GADDAFI, NATO
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Government moves into zamtel
By Chiwoyu Sinyangwe, Bright Mukwasa and Kombe Chimpinde
Wed 25 Jan. 2012, 14:00 CAT
THE government has taken back 75 per cent shareholding in Zamtel "fraudulently" acquired by Libya's LAP Green Network in the controversial transaction hatched in 2010 at US$257 million. But former finance minister Situmbeko Musokotwane says the repossession of Zamtel's 75 per cent shares will not die naturally.
And a combined team of security wings yesterday sealed off all Zamtel operations across the country, expelling foreign top officials in Lusaka led by managing director Hans Poulsen, who has been replaced by telecommunications engineer, Dr Mupanga Mwanakatwe.
Meanwhile, the new Zamtel management has opened an account at Zanaco Lusaka Business Centre to provide a window for Zamtel regional accountants to deposit sales and other monies previously blocked by Drug Enforcement Commission (DEC)'s freezing of the company's official accounts.
President Michael Sata said yesterday that he deemed it desirable and expedient to compulsorily acquire the 75 per cent shareholding of Lap Green Network in Zamtel after the government having accepted without reservation the report on the findings of the committee investigating the sale of state-owned telecommunication company.
"The appropriate notice under the law has been given," special assistant to the President for press and public relations George Chellah said in a statement.
"Consequently, the President has ordered the dissolution of the Board of Directors of Zamtel. The Head of State has appointed Dr Mupanga Mwanakatwe, chairman and acting chief executive officer as a first step to regularise the affairs of the company. A new board will soon be put in place to give the policy guidance and direction to management and staff."
He said the government would restructure ownership of Zamtel to ensure Zambians owned the bulk of the shares in a revitalised Zamtel.
President Sata further directed Zamtel management to address the plight of Zamtel workers with due immediacy.
"There should be no loss in jobs except through retirement and attrition while maintaining the highest levels of discipline and respect of law," he said. "Zamtel workers have served with distinction in an area of sophisticated information technology. This has been so from the inception of the company."
President Sata reiterated his "relentless commitment to his duty as custodian of the interests of the Zambian people" and assured the Zamtel workers that their traumas and anxieties would be ended.
But Dr Musokotwane said although the debate on whether government must nationalise Zamtel or not was under the bridge, he was still interested in establishing why the government had taken such a decision.
"I can't speak for Lap GreenN but you cannot expect them to walk away from their investment without asking to be compensated. I do not want to speak for them, I think that is up to them. My interest is establishing why as a government we acted in the manner that we did as far as battles for Lap GreenN are concerned. That is their own internal matter, they can do what they want," Dr Musokotwane said.
He reiterated his demand for ZDA to release its report submitted on Zamtel.
"I know because I was a minister then that on all three counts, the ZDA said something different from what the commission of inquiry has said, so the question is who is telling the truth? ZDA or the commission…," he said.
Asked to counter the argument that officers at ZDA were operating under duress and pressure from government on the deal, Dr Musokotwane who is also Liuwa member of parliament said the same thing then could be said about the Sebastian Zulu-led commission of inquiry.
"Before PF got in government they called the sale fraudulent, remember that the commissioners were ministers so if you say that the ZDA were under the influence of government, why shouldn't the same be said on the commission of inquiry? So let us not politicise these issues. This is probably water under the bridge, but for those who want to know the truth, this issue still needs to be established after all, most probably this thing is going to go to court," he said. "I have been a public officer since 1991. I have worked under the Kaunda, Chiluba, Mwanawasa and Banda regime. Over this period, I have been above board. This is the only period that people are making accusations against me."
Dr Musokotwane also said the re-nationalisation of Zamtel would be a test case for other investors wishing to invest in the country.
And top foreign officials at Zamtel were yesterday expelled from the company shortly after reporting for their "daily routine" work schedules.
The expelled officials included Poulsen, a Ugandan national, David Chetty, chief technical officer, a Malawian of Asian origin, Adrian Hayd, chief financial officer, a Pakistani national and Ismail Dore, senior manager for business planning, a Zambian of Asian origin.
Sources said the expulsion of Dore was a "mistaken identity" as he is Zambian but his "skin colour sold him out".
In an emailed memo to workers, Zamtel chief human resource and administration officer Eve Banda confirmed the presence of state security at Zamtel operations and installations throughout the country.
"Dear all, we are currently surrounded by police presence, please I know this is a difficult working environment but let's endeavour to work as we await further instructions from the Government. Thanks…," Banda stated in a memo sent to all employees about 8:30 a.m yesterday.
Workers who spoke separately confirmed the heavy presence of officers from the security wings who offered thorough screening to employees reporting for work yesterday morning.
"Yes, the cops are screening everything from laptops and just about all personal belongings, and these are officials from Zambia Police, DEC and OP Office of the President," one worker said anonymously.
"But as for the accounts, all accountants that deal with monies from sales, collections on the payment bills, sim Subscriber Identity Module cards sales, and all regional accountants have been instructed to deposit whatever they have collected so far into account number 0030210000008659 at Zanaco Lusaka Business Centre."
And the Lusaka High Court yesterday rejected an application by Zamtel that its quest for a judicial review over the Drug Enforcement Commission's freezing of its bank accounts should act as an injunction if granted.
Judge Evans Hamaundu said in a ruling delivered yesterday morning that while he would grant Zamtel leave to commence judicial review proceedings, this order shall not operate as a stay of execution of the seiziure of the company accounts.
The security wings last week seized bank accounts belonging to Zamtel as part of a money-laundering investigation.
A Cabinet meeting of January 4, 2011 resolved to seize the 75 per cent stake held by the Libyan company, LAP GreenN, an investment wing of the Sovereign Wealth Fund used by fallen Libyan tyrant Muammar Gaddafi in spreading his hegemony on the continent as he sought to rule Africa.
[Fallen tyrant? He wasn't a 'tyrant' and he didn't 'fall'. He was illegally overthrown by NATO, so France and the UK could get a bigger part of the Libyan people's oil. - MrK]
On Monday, finance minister Alexander Chikwanda said the government would take back a 75 per cent stake in the country's sole total telecommunications in a decision made to "restore Zamtel back to the people of Zambia".
Under its previous government, former president Rupiah Banda's influence in abusing and circumventing set government institutions and procedures aided RP Capital to ensure LAP Green Networks bought Zamtel despite not being fit to run the country's total telecommunication provider.
The sale of Zamtel was initiated by former communications minister Dora Siliya and former president Banda's son Henry with RP Capital of Cayman Islands.
The sale saw Siliya's antics and manoeuvres which saw her disregard legal advice of the Attorney General's chambers and often chased top government and quasi government officials who disregarded her sworn trajectory over the sale she orchestrated.
ZDA was "pressured" to sell three quarters of Zamtel to LAP GreenN" despite the Libyan company having failed all three of the mandatory prequalification criteria.
The report also stated that Lap GreenN lacked the minimum three million subscribers as required by ZDA as LAP GreenN had no subscribers to itself, its holding company or its parent company.
The report stated that LAP GreenN had no audited accounts. Despite the government selling Zamtel to LAP GreenN for US$257 million, prior to privatisation, Zambia paid US$120 million for tax shares in Zamtel, and a further US$214. 45 million for investment shares.
"GRZ effectively paid Zamtel US $334.45 million to retain 100 per cent of its shareholding in Zamtel immediately prior to privatisation," the report read in part. "It is most perturbing that the GRZ decided to pay for the 25 per cent shareholding it already owned in Zamtel and paid a total US$334.4 million in what was termed as Tax Shares and a Subscription Amount."
On the other hand, Lap GreenN only paid US$257 million for 75 per cent shareholding of which the government was only entitled to US$42.6 million about 16.6 per cent of the value.
The net effect of this deliberately complicated transaction was that Lap GreenN took over Zamtel as a debt-free company with US$64 million sitting in its bank account with the US$64 million having been provided by GRZ and equivalent to the exact sum of money required for the newly-privatised company's capital expenditure for its first year of operations.
The report stated that the sale of Zamtel was fraught with irregularities in the tender processes, coercion in the acquisition of Zesco's assets, bad faith with the selection criteria, negligence in the management of the account of GRZ net proceeds, and a failure to monitor post-privatization.
The commission of inquiry led by Zulu, the justice minister, revealed that RP Capital was so powerful that it used to draft speeches former president Banda made on Zamtel as well as ministerial statements on the US$257 million sale of 75 per cent of Zamtel to Lap GreenN.
The report detailed that key government institutions like Zambia Development Agency (ZDA) and Zesco made decisions and abrogated their normal tender procedures as well as normal way of doing business because they "may have been under duress".
The report revealed that in some cases, officials who resisted the influence from Banda's aides were dismissed from their positions rampantly.
The report points out a case of Cyprian Chitundu who was fired from Zesco and replaced by Ernest Mupwaya for resisting the seceding of the Zesco optic fibre network to Zamtel to feed into the directive by RP Capital. Chitundu has since been reinstated as managing director of the power utility.
Labels: CORRUPTION, DEC, EVANS HAMAUNDU, LAP GREEN, MICHAEL SATA, RUPIAH BANDA, SITUMBEKO MUSOKOTWANE, ZAMTEL
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Kagem miner recounts abuse
By Darious Kapembwa in Kitwe
Wed 25 Jan. 2012, 13:30 CAT
A KAGEM emerald mineworker has complained of how a security manager squeezed his private parts and inserted a finger in his anal canal on suspicion he had hidden an emerald.
Willie Manda in a report to Kagem management and the Mineworkers' Union of Zambia stated that a Mr Dramandra stripped him and conducted the search on his body in a disrespectful manner.
Dramandra, of Asian origin, allegedly went further to insert his finger in Manda's anal canal in an open place.
According to the report, there was no respect in the way security searches were done at the company.
"First he stripped my zip open and he touched my boxer shorts inside and then my pant. He squeezed my genitals and inserted his finger in my anal canal," Manda explained in the report. "I cried out to my supervisor who was nearby while another security officer, Mr Mwanza watched helplessly."
Other workers who spoke on condition of anonymity warned that there would be disharmony in the company if Dramandra was not disciplined.
MUZ officials at the company said their superiors from headquarters were trying to meet management to resolve the matter.
Efforts to get Kagem management for comment on the matter proved futile the responsible officers as werte reportedly at the mine site in Lufwanyama where there is no telephone network.
Labels: EMERALDS, KAGEM, LABOUR, MINING
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MMD will never get back to power - Ng'ambi
By Abigail Chaponda in Ndola and Christopher Miti in Chipata
Wed 25 Jan. 2012, 13:53 CAT
FORMER MMD Copperbelt province vice-chairman Frank Ng'ambi says the MMD will never come back to power because it has lost its credibility. Ng'ambi who resigned from his position last Friday said former president Rupiah Banda's bad leadership skills led to the demise of the MMD party.
"The reason why MMD lost is because of former president Banda. Firstly, there was biasness in the distribution of campaign materials. For instance, in Chifubu Constituency where I stood, I was given 24 bicycles, while in Western and North Western candidates were given 1,000 bicycles. This was unfair, and it's bad for a leader to behave like that," he said.
"The truth of the matter is that MMD will never come back to power. I don't think the current leadership on the Copperbelt will inspire people. It's even better to join other parties," he said.
He said Zambia was going through a political landscape of moving forward and that whoever was still in the MMD was lagging behind.
He said he would work with any party that would meet the aspirations of the people.
Ng'ambi, who during the Chifubu by-election uttered profanities against Michael Sata, now says the head of state was a good leader and he urged Zambians to give him chance to rule the nation.
Meanwhile, two MMD councillors in Chipangali Constituency have defected to the ruling PF citing oppression and corruption in the former ruling party.
The two civic leaders, Msandire ward's Hanile Jere and her colleague Errek Phiri from Sisinje ward, told journalists at Wildlife Hall in Chipata on Monday that they had decided to join the PF which they described as a progressive party.
Jere said she decided to resign because she was being oppressed in MMD.
She claimed she was being sidelined by other MMD councillors at Chipata council.
"I have been suppressed and depressed by the MMD so I have decided to move away from my oppressors. These people in the MMD have actually pushed me out of the party because of their attitudes, so I am just moving out from oppression," Jere said.
Phiri said there was no transparency in the disbursement of Constituency Development Funds at the council.
He said there were a number of projects that had not been completed because of lack of funds.
Phiri cited Mbenjere clinic as one of the projects that had not been done despite being funded.
"There are a number of projects that have not been done but the picture which is at the council is that they have been done. So even at Sisinje, there is an invisible clinic, I am calling it invisible because the records show that there is a clinic but there is nothing," Phiri said.
Both councillors said they would apply for adoption under the PF ticket during the by-election in their respective wards.
PF provincial information and publicity secretary Mung'omba Ngoma congratulated the two civic leaders for joining PF.
Ngoma said MMD was dead and buried and that it would never come back to Zambian politics.
Labels: CDF, FRANK NG'AMBI, MMD
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K2.1bn didn't pass through Liato's accounts - witness
By Maluba Jere
Wed 25 Jan. 2012, 13:58 CAT
A WITNESS has told the Lusaka magistrates' court that investigations conducted on Austin Liato's bank accounts revealed that the K2.1 billion unearthed from his farm did not pass through any accounts. And the court overruled an objection by defence lawyers to admit into evidence the K2.1 billion.
Meanwhile, principal resident magistrate Aridah Chulu has set March 30, 2012 as the date for ruling on whether or not Liato has a case to answer in the matter involving K2.1 billion.
Isaac Musonda, an assistant investigations officer at the Drug Enforcement Commission testified that he carried out bank searches to analyse and see whether the K2.1 billion found at the former labour minister's farm passed through his accounts.
Musonda said after analysing the bank statements from banks where Liato holds personal accounts, he found that cash inflow and outflow did not show any transactions involving K2.1 billion.
This is in a matter where Liato is charged with possession of property suspected of being proceeds of crime contrary to section 71(1) of the forfeiture of proceeds of crime Act number 19 of 2010 of the Laws of Zambia.
It is alleged that Liato on November 24, 2011 in Lusaka, possessed and concealed money at his farm number L/Mpamba/44 Mwembeshi amounting to K2.1 billion reasonably suspected on being proceeds of crime.
In examination-in-chief led by Director of Public Prosecutions Mutembo Nchito, Musonda testified that following his investigations, he was not satisfied with his findings and so he warned and cautioned Liato who elected to remain silent.
He said at the start of the investigations, he went to the Ministry of Lands to verify the owner of the land where money was unearthed and that he was issued with a printout stating that the property in question belonged to Liato.
"Subsequently, I made up my mind to formally charge and arrest the accused," he said.
"…I issued a notice of seizure to the accused person which indicated the total amount of money found at his farm and other properties that were found. He acknowledged receipt by signing the document and I gave him a copy to that effect."
In cross-examination, Musonda maintained that his investigations and searches on Liato's bank accounts revealed that there was no transaction showing a lump sum of K2.1 billion.
He named the banks he conducted searches on as Zanaco, Manda Hill branch, Indo Zambia Bank, Investrust and Finance Bank in Kaoma.
Musonda told the court that he restricted himself to conducting searches at banks because that was the only way to establish a trail of that money; as such, huge sums were expected to pass through the banks.
He further said he charged Liato with the subject offence because of the way the money was concealed and that Liato failed to give an account of that money.
Musonda added that although Liato has a right to keep money in any way he deems safe, the investigators were convinced that the K2.1 billion was a proceed of crime because of the way it was concealed, saying it did not show legitimacy.
"I do not agree that the money was there for safekeeping because it was my first time to see it buried like that," he said. "To my knowledge, there was something suspicious for the money to be buried in that manner."
Asked by defence lawyer Mutemwa Mutemwa whether there was a law in the country that prohibited a person from keeping money anywhere other than at the bank, Musonda said there was no such law but that the act of burying money underground raised suspicion.
He also said he established Liato's sources of income for the last 10 years by looking at his pay slips, the gratuity he got from the National Assembly and possibly proceeds from his lodge.
He added that the officers led Liato's workers to where the money was buried after they received information that there was money buried there.
And another witness testified that she was part of the investigating team that went to Liato's farm and dug out the K2.1 billion.
Chipezana Phiri Banda said her role in the investigation was to receive and record any items that would be found during the search at Liato's farm.
Banda said the money was found under two concrete slabs and later taken to the Bank of Zambia (BoZ) for safe custody and that it was also counted and verified there.
When Banda told the court that she wanted to have the money admitted as part of her evidence, the defence objected on grounds that the witness had not given sufficient description of the actual money she allegedly received, saying the money before court could be just any other money.
Moses Chitambala submitted that Banda had given sufficient description of the money to enable the court distinguish it from any other money that may be in the possession of the BoZ.
"It is very clear from this witness' evidence she has not had full custody of the money subject to these proceedings now before court," Chitambala said. "It is important and in the interest of justice for the witness to lay a sufficient foundation before money is produced."
And Mutemwa submitted that sufficient foundation must be laid before an intended exhibit is admitted into evidence.
"This witness has not even said how the money was packed and how many bundles in the first safe box…these are ingredients essential to distinguish this money the witness was talking about from any other money," Mutemwa said. "I submit that it is not as a matter of conjecture but on the proof of the identity of money that the intended exhibit may be admitted in evidence."
He said while the defence did not expect Banda to recite all the serial numbers on the notes, she was expected to at least have given even one number, saying Liato's liberty was at stake and the court should be slow to admit evidence which is thin and hazy.
But Nchito argued that the witness had testified that she was present when the money was dug out until it was taken to BoZ for custody.
He submitted that there was no reason of law why the money should not be admitted in evidence.
Ruling on the matter, magistrate Chulu said it was on record that the issue of money being dug out from Liato's farm was not in dispute.
She said it would be unreasonable for the money to be serialised considering that it was huge sums involved.
Magistrate Chulu said in the absence of any tampering of the money, it was the same money that was found at the farm and later safely secured at BoZ.
She then admitted the money in evidence and marked it.
In cross-examination, Banda said Liato was not at the farm when the officers went to search and when contacted to ensure he was present during the search, Liato told the officers that he was in Kaoma and would only be at the farm around 21:00 hours.
Banda who denied assertions that the amount dug out was K2.7 billion said the team could not wait for Liato to get back since his caretakers were present and due to the nature of the case.
She said no one had lodged any complaint to the effect that K600 million had not been accounted for.
Labels: AUSTIN LIATO
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Kambwili rebukes Gourock manager
By Fridah Nkonde in Ndola
Wed 25 Jan. 2012, 13:57 CAT
MINISTER of Labour, Youth, and Sports Chishimba Kambwili on Monday rebuked Gourock Limited Company factory manager for the poor conditions of service the employees were experiencing. During a surprise visit to the company, Kambwili told the factory manager Sharma Sharad that he would not allow abuse of workers.
"I have received a lot of complaints from your employees concerning the poor conditions of service. You should make sure that the working hours are reduced because I am aware that the working hours here are very abnormal. One thing you should also know is that
the minimum wage of K419,000 should not be used at this company because that minimum wage is meant for people like house servants," he said.
Kambwili said he did not want investors to give the Zambian employees short-term contracts because they did not provide job security to the individual. He encouraged all investors to give Zambian employees permanent and pensionable jobs.
Kambwili warned Sharad not to exonerate himself because he had "received a lot of letters and text messages from his employees".
He told Sharad to caution the people in management not to insult employees or even use abusive language against Zambian employees.
"Tell your people to stop insulting the Zambians because they will be forced to leave this country if they continue with this kind of behaviour. Tell them to respect the Zambian employees because they are the ones working hard so that the company makes profit. You should also stop bringing a lot of Indians to come and work because our own people have the capacity to do so. We allow you to invest in our country because we want to create employment for our people," he said.
Kambwili was saddened when he found Zambian workers in the factory without proper protective clothing and warned factory inspector Alliot Kapambalala for not doing his job.
"Even last time you did the same. If you continue behaving like this, you will be fired because you labour officers always want to receive bribes from these investors. And this should immediately come to an end because you will be forced to resign or I will fire you," he said.
Kambwili said he was aware that labour officers had earlier on tipped Sharad that he was going to pay them a surprise visit.
He said it was surprising that he had found almost all the workers wearing new overalls even though they did not have proper safety shoes.
Some workers were brave enough to tell Kambwili that the overalls had been given to them that very day while others, fearing being victimised, failed to speak out.
"If I hear that these people who are giving us information are victimised or fired from your company, heads will roll. I will definitely come back for you and you will not like it," he said.
And Sharad said the company had a union which was negotiating for the workers.
Sharad said that the company was doing everything possible to improve the conditions of service for the workers.
"No one gets below K1 million. I have been in Zambia for the last three years and I wish to stay longer. We are doing our best," he said.
Meanwhile Gourock's workers' union secretary Jack Mwansa said things at Gourock were not good and that there was need for government to intervene.
"Honourable minister people here are underpaid. Just look at me, I am a degree holder but I don't get more than K700,000. There is also too much victimisation, casualisation and our bosses like using abusive language. They enjoy insulting us using their own language but we have been with them for a very long time and we understand some of the terms," he said.
Labels: CHISHIMBA KAMBWILI, LABOUR
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CBU lecturer urges longer time frame for kwacha rebasing
By Chiwoyu Sinyangwe and Kabanda Chulu
Wed 25 Jan. 2012, 13:54 CAT
REBASING the kwacha by lopping off three zeros might result in cost-push inflationary pressures and further weakening the under-pressure kwacha, warns Copperbelt. University business studies lecturer Dr Lubinda Haabazoka.
Dr Haabazoka urged the government to postpone the time frame for rebasing the kwacha from targeted six months to two years to allow the country's economic systems to stabilise and also the external environment to improve.
On Monday, finance minister Alexander Chikwanda said the Bank of Zambia would rebase the kwacha, a move that should make it easier for foreign investors to participate in the economy.
Chikwanda said the rebasing had to be done when all the fundamentals like inflation and GDP growth were right.
Currency rebasing usually does not change the exchange value of the currency and is introduced to make commercial calculations easier.
"The net effect of this is that savings of the people won't change because we are only removing zeros but it is about the psychology around the economy," Dr Haabazoka.
"Maybe in the short-run, it might cause a bit of inflation as people are going to adjust prices upwards. So, you expect prices to shoot up because people will have a feeling that they have lost some savings…people might want to increase prices so that they feel comfortable because you receive your salary in millions and all of a sudden it's reduced. So, everyone would want to increase the price on their rent, on the commodity to reach that million…"
Dr Haabazoka said the government should have waited for investors to gain more confidence in the new regime as well as the improvement of the external environment before rebasing the currency.
He said the current weak world economy on the backdrop of the prolonged euro zone debt crisis, coupled with the fragile US economy, made rebasing the Zambian currency ill-timed.
Dr Haabazoka said the upcoming crucial elections in United States, the elections in France, Russia, and Germany worsened the global economic outlook.
"The revaluation of the currency is long overdue but it's a bit misplaced," he said.
"The new government just came in, the new minister of finance, the new Bank of Zambia governor, and the new deputy governor for operations. So, basically, when you are rebasing currency, you need a stable environment, and for the last four months, our kwacha has been under pressure not because of the economic policies of this government but because of the uncertainties surrounding Zambia now. Six months period is too short for them to implement that policy of rebasing the kwacha. We needed to wait for the next two years so that things stabilise. I think the decision is correct but the timing needs to be adjusted."
Dr Haabazoka said rebasing the currency might cause more pressure on the kwacha as the monetary policy decision might rattle portfolio investors to seek refuge in the dollar.
He said the government needed strong education and campaign to accompany the currency rebasing decision.
"Once you are trying to tamper with the currency, people will try to move to stable currencies," said Dr Haabazoka.
"So, you are going to see in the next six months, a lot of pressure on the kwacha because definitely investors would want their money to be in the dollar. Now, it's up to government to come in to explain to everybody what exactly they are trying to do and explain, not in an economist language but in simple language that a basic citizen is going to understand. Rational investors want to keep their money in dollar."
And Dr Fred Mutesa said rebasing the kwacha is necessary but government should focus on increasing production to sustain economic growth to have a stronger currency.
Dr Mutesa, president for Zambians for Empowerment and Development (ZED), said the development has been discussed and considered over a period of time.
"It has not come with the PF government but what comes to mind immediately is that money that is hoarded and kept out of the banking system will have to come to the banking sector since there will be exchange of currency. We shall get to know how much liquidity is in circulation so it is a control measure meant to curb smuggling and control of parallel economy which goes untaxed," Dr Mutesa said.
"Rebasing the currency is something that is implemented from time to time in many countries but while it might be good to rebase the currency, what is important is to increase production and grow the economy in order to have a strong currency especially that we have not yet gone through this experience before to understand the effects on the economy. For example, Zimbabwe tried to curb inflationary pressures by knocking off the zeroes but failed and settled for US dollar, so government has to proceed cautiously and ensure that there are experts providing sound advice and experiences from elsewhere otherwise this matter can have negative impact in the longer term if not carefully handled."
He said increasing capitalisation for banks may be meant to restrict proliferation of banks and bringing some element of stability.
"Many people have observed that growth of banks in Zambia and banking services has not reduced cost of credit and benefits haven't been passed on to people so there is a notion of Zambia being oversubscribed by banks but yet there are limited savings available and if successful, this measure will force banks to be more creative and invocative with types of services offered to clients," said Dr Mutesa.
"But it will also squeeze out local banks and I don't see new indigenous Zambians emerging on the market but international banks will afford it."
Labels: BANKING, FRED MUTESA, KWACHA
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Government prods ZRA to lead fight against corruption
By Edwin Mbulo in Livingstone
Wed 25 Jan. 2012, 13:53 CAT
FINANCE deputy minister Alfridah Kansembe has challenged Zambia Revenue Authority officers to own the fight against corruption because they face a lot of challenges with businessmen dangling carrots in their face.
And the Zambia Revenue Authority has constantly
exceeded the International Monetary Fund target by raising K6.5 billion at the Victoria Falls border post.
Speaking when she visited the Victoria Falls border post on her continued familiarisation tour of border facilities, Kansembe urged Zambia Revenue Authority officers to remove the tag of Zambia being known as a corrupt country.
"Let us fight corruption to the bitter end. We need to own the fight against corruption if we are to raise more revenue so that we can develop. With corruption, we will not develop, let us try all efforts to fight the vice," said Kansembe.
Victoria Falls border station manager Alex Zulu said the post last year exceeded the IMF target for border posts by one per cent.
"We try to be as effective as possible so that we minimise delays in traffic flow at the border. We also have a simplified trade regime which was agreed between Zambia and Zimbabwe to help small traders grow their business by not paying duty on certain goods," he said.
Zulu said the border, however, faced a lot of challenges such as staff shortage and deplorable office furniture.
And assistant commissioner for customs Nase Lungu said the border post needed banking facilities to help tourists transact in different currencies.
Later at the ZRA port office, Lungu told Kansembe that smuggling has been greatly reduced following the establishment of a joint operations system with neighbouring countries, hence reducing the use of canoes on the river.
And Southern Province minister Miles Sampa said the ZRA at Kazungula faced a major challenge in that the border post was porous.
"We need to police the river as a lot of people jump out of the pontoon before it docks in full view of officers and there is nothing they can do. We are losing a lot of revenue at the post," said Sampa.
Labels: CORRUPTION, IMF, MILES SAMPA, ZRA
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Gaddafi supporters seize control of Libyan town
By Reuters
Tue 24 Jan. 2012, 13:50 CAT
Fighters loyal to Libya's overthrown leader Muammar Gaddafi took control of a town south-east of the capital on Monday, flying their green flags in defiance of the country's fragile new government.
The fightback by Gaddafi supporters defeated in Libya's civil war, though unlikely to spread elsewhere, added to the problems besetting a government which in the past week has been reeling from one crisis to another. Gaddafi himself was captured and killed in October after weeks on the run.
Accounts from the town of Bani Walid, about 200 km (120 miles) from Tripoli, described armed Gaddafi supporters attacking the barracks of the pro-government militia in the town and then forcing them to fall back.
"They control the town now. They are roaming the town," said a fighter with the 28th May militia, loyal to Libya's ruling National Transitional Council (NTC), which came under attack.
The fighter told Reuters the loyalists were flying "brand new green flags" from the centre of town. The flags were symbols of Gaddafi's 42-year rule.
[Really? Wasn't Ghadaffi killed? So why are people still waiving green flags? The BBC doesn't explain. Perhaps there was more to the Libyan revolution than just 'Gadaffi's 42-year rule'! Also, in any other context, the murderous thug of the '28th of May Militia' would be referred to as 'a terrorist' or a thug. But he is supported by NATO, so that's ok. They murdered an entire town with Black people, however that's ok too. The BBC only exists as a mouthpiece for the Foreign Office, nothing more. - MrK]
A resident said four people were killed and 20 wounded in the fighting, during which the sides used heavy weapons.
Bani Walid, base of the powerful Warfallah tribe, was one of the last towns to surrender to the anti-Gaddafi rebellion last year. Many people there oppose the new leadership.
A Libyan air force official said war planes were being mobilised to fly to Bani Walid. A spokesman for the military council in Zawiyah, near Tripoli, said a 1,500-strong force, drawn from militias across western Libya, was on stand-by.
"If the situation in Bani Walid is still complicated , we will go there," the spokesman, Ayad Laaroussi, said.
[So where is NATO's need to intervene against the airial bombardment of civilians now? Remember that this was their original excuse for the illegal invasion of Libya - creating a 'no fly zone' to protect Libyan civilians from airal attack by the Libyan Army. I guess airial attack by Islamist thugs is ok now. - MrK]
But it was not immediately clear what the government in Tripoli could do. It has yet to demonstrate that it has an effective fighting force under its command and Bani Walid, protected behind a deep valley, is difficult to attack.
EMBATTLED GOVERNMENT
The uprising in Bani Walid could not come at a worse time for the NTC. In the past week its chief has had his office overrun by protesters angry at the slow pace of reform and the second most senior official has quit, citing what he described as an "atmosphere of hatred."
During Libya's nine-month war, anti-Gaddafi rebels tried to take Bani Walid but did not progress much beyond the outskirts of the town. It later emerged that Saif al-Islam, one of Muammar Gaddafi's sons who was captured in the Sahara desert in November, had been using Bani Walid as a base.
Soon before the end of the conflict, with Gaddafi's defeat unavoidable, local tribal elders negotiated an agreement under which forces loyal to the NTC were able to enter the town without a fight.
Relations have been uneasy since then and there have been occasional flare-ups of violence.
The resident, who did not want to be identified, said Monday's violence began when members of the May 28 militia arrested some Gaddafi loyalists.
That prompted other supporters of the former leader to attack the militia's garrison.
"They massacred men at the doors of the militia headquarters," said the resident.
A militia based in Tripoli said its fighters had captured 17 people who, it said, were part of a network trying to smuggle arms to Gaddafi loyalists in Bani Walid and elsewhere. The militia said in a text message that the weapons included Russian-made Grad rockets.
FRAGILE GRIP ON POWER
The NTC still has the backing of the NATO powers who, with their diplomatic pressure and bombing campaign, helped push out Gaddafi and install the new government.
But questions are now being raised inside some Western governments about the NTC's ability to govern Libya effectively and secure its borders against al Qaeda, arms traffickers and illegal migrants trying to get into Europe.
The NTC was pitched into its worst crisis since the end of the civil war at the weekend when a crowd of protesters in the eastern city of Benghazi stormed the council's local headquarters when NTC chief Mustafa Abdel Jalil was inside.
The protesters, who supported the revolt against Gaddafi, were angry that more progress had not been made to restore basic public services. They also said many of the NTC's members were tarnished by having served in Gaddafi's administration.
Abdel Hafiz Ghoga, deputy head of the NTC and target of some of the protests, said he was resigning. Abdel Jalil warned that the protests could drag the country into a "bottomless pit."
Labels: LIBYA, MUAMMAR AL-GADDAFI, NATO
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S.Africa's Malema makes last stand with ANC appeal
By Reuters
Tue 24 Jan. 2012, 13:00 CAT
Julius Malema, leader of the African National Congress"s Youth League (ANCYL), speaks at a news conference in Johannesburg, South Africa. An appeal that will determine the future of South African political rebel Julius Malema started on Monday, giving the firebrand a last chance to retain his influential position in the ruling African National Congress (ANC).
Malema, head of the ANC's Youth League, rose to prominence with calls to nationalise mines and seize white-owned land. He is now fighting for political survival after being suspended by the ANC in November for five years for bringing the party into disrepute.
His appeal, which local media have said is likely to focus on procedural details, will be decided in the next few weeks. Analysts expect the appeals committee chaired by ANC veteran and prominent businessman Cyril Ramaphosa to uphold the suspension.
Malema, who is also facing a criminal probe into his finances, kept a low profile on Monday and it was not clear whether he attended the appeal hearing at ANC headquarters in central Johannesburg, which was heavily guarded by police.
His usual crowd of supporters was notably absent. Malema has roused thousands of South African youths to march for jobs and nationalisation, but on Monday his only visible support was a lone protester wrapped in chains and holding a sign: "There is no case here, just shackles".
Malema remains a party member while his appeal is pending, but in the two months since his suspension was announced he has stepped up his attacks on President Jacob Zuma, whose path to re-election as head of the ANC, and the country, could get complicated if Malema is still in the party.
While the 30-year-old holds no elected office, he commands considerable support among young South Africans and in his home province of Limpopo.
At a political conference in Limpopo last month Malema openly mocked Zuma, calling him "the shower man" - a reference to a 2006 rape trial, in which he was acquitted.
The central government is also clamping down on profligate spending in Limpopo, where the national treasury has intervened to clean up the province's bankrupt finances.
A national police spokesman confirmed on Sunday that the 30-strong treasury intervention team in Limpopo was being escorted by armed police, illustrating the divisions within the ruling party.
The province has been subjected to allegations of mismanagement and corruption, especially in its handling of lucrative government contracts. Malema and some of his associates have been accused of lavish living at the expense of taxpayers.
Labels: ANC, ANC YOUTH LEAGUE, JULIUS MALEMA, LAND REFORM
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Court throws out Zamtel bid to nullify DEC’s move to freeze accounts
TIME PUBLISHED - Tuesday, January 24, 2012, 9:21 pm
The Lusaka high court has thrown out a bid for Zamtel to quash the move by the Drug Enforcement Commission-DEC to freeze its accounts saying the action was done in the course of criminal investigations.
In his ruling Lusaka high court judge Evans Hamaundu said he could not stay the execution of seizer notices as this will allow ZAMTEL temper with the accounts which are intended exhibits.
Judge Hamaundu says freezing of ZAMTEL accounts was done on suspicions that there was money laundering involved.
Zamtel requested the court to grant it judicial review which would automatically evoke a stay the execution of the DEC seizer notices.
Meanwhile, various stakeholders and members of the public have welcomed the takeover of the 75 percent stake owned by LAP Green of Libya in zamtel.
Transparency International Zambia says the takeover was predictable.
TIZ executive director Goodwell Lungu says civil society organisations and members of the public who opposed the transaction have been vindicated.
He has called on the PF government to exercise caution when managing the operations of the telecommunication company to avoid a repeat of transactions marred with illegality.
And former Finance minister Ng’andu Magande has also welcomed government’s decision to take over the parastatal.
Mr Magande however says it remains to be seen what move the managers of Lap Green will take next.
Meanwhile, UNIP president Tilyenji Kaunda says the reversal of the ZAMTEL transaction could not have come at a better time than now.
He said the takeover of ZAMTEL will send a message along the political corridor that people ought to make decisions in the interest of the public.
Mr Kaunda says it is clear from the government decision that no politician should think og oneself at the expense of public interest.
And former Bankers Union of Zambia president Lucky Beene says the takeover is in the best interest of the nation.
In another development, several Lusaka residents have praised president Sata’s government for taking over the management of ZAMTEL, saying it was long overdue.
Wilbroad Mulenga has observed that the measure will sustain economic development, while creating more jobs by empowering Zambians by owning shares in the company.
ZNBC
Labels: COURTS, EVANS HAMAUNDU, ZAMTEL
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Government removes three zeros from currency
By Bright Mukwasa and Kabanda Chulu
Tue 24 Jan. 2012, 13:00 CAT
THE government has knocked out three zeros from the kwacha, a move that is aimed at strengthening the local currency against major convertible currencies. And analyst Chibamba Kanyama has supported government's move to rebase the kwacha, saying economic stability should be anchored on strong production, exports and fiscal discipline so that the zeros do not resurface.
Meanwhile, finance minister Alexander Chikwanda says the government has reversed the sale of Zamtel because it was sold corruptly.
Announcing the government's key policy decisions during a media briefing in Lusaka yesterday, Chikwanda said the move to rebase the currency was necessitated by the government's effort to address the costs associated with an accumulated loss in the value of the kwacha, experienced during episodes of high inflation that undermined the kwacha's basic function as a store of value, medium of exchange and standard of value.
He said the move, which was approved by Cabinet yesterday, would result in the removal of three zeros from the denominations of the K1,000 kwacha notes and above.
"For example, K1, 000 will be K1, K5,000 will become K5, K10,000 will become K10, K20,000 will become K20 and K50,000 will become K50," Chikwanda announced at a media briefing in Lusaka yesterday. "In addition, the Bank of Zambia will also reintroduce coins for lower value denominations. In the accounting sphere, re-denomination of the kwacha will reduce time taken to input financial data and time spent by management to review it."
He said the decision would also reduce costs often incurred in customizing standard accounting packages that are purchased by businesses.
"The present situation in Zambia, where some organisations, especially banks, record values of trillions of kwacha and hence require further customization of such packages to widen data needs fields. Therefore rebasing the kwacha will be of great importance to businesses and will reduce inputting errors. This is further expected to reduce transaction costs for businesses and the general public, and will tone down on inflationary spirals," Chikwanda said.
And the government has raised the minimum capital requirement for commercial banks from the current K12 billion to K104 billion for local commercial banks and K520 billion for foreign banks.
Chikwanda said the government also agreed in line with section 83 of the banking and financial services Act to revise the minimum capital requirement for the commercial banks.
"The measure to raise minimum capital requirement for banks is intended to mobilise additional resources to enable banks participate more effectively in growing the economy by increasing credit available to the private sector. Further, the increase in the minimum capital requirement will make the banks more resilient to economic shocks," he said.
Chikwanda explained that the rebasing of the currency was not being done as a gimmick as those kinds of tricks had a tendency of backfiring.
"It must not be done as a gimmick I must assure because if it is being done as a gimmick, gimmicks backfire. If you have a very weak economy and you want to upgrade the economy by just removing the zeros from the kwacha when the goods and services are not available, the growth is not taking place then you are just taking yourself for a ride…we made reference to the fundamentals, the inflation is low, the economy is growing at a modest figure of seven per cent but there is no reason why, if we get the ministries and everybody working, our country cannot be growing at eight or 10 per cent per annum," Chikwanda said.
He said that was what made the Chinese economy to grow faster to even outstrip its neighbours like Japan to become the second largest economy in the world.
And Kanyama said the government should be credited for the decision as that was a pointer to the economy's stability.
"First, it is important to know that the debasing of the currency will not actually translate into an improvement in the purchasing power. However, the move will reduce transaction costs for many institutions. The process of change will be quite tedious, expensive and cumbersome for businesses and households, but will most likely have net benefits in the long run. The critical challenge will be acceptance among citizens as many will see this as a downgrading of their economic status; such as billionaires who will no longer be considered as billionaires; and for workers who will see a perceptive reduction in incomes," he said.
"The decision should be credited to many years of focus towards the stabilization of the Zambian economy. The government has simply signalled the economy is stable and what is needed now is to ensure this economic stability is anchored on strong production, exports, fiscal discipline so that the zeros do not come back again.
"It is a very strong challenge to the government to continue to attract investment, growth of the GDP above seven percent per annum, maintain the healthy reserves, stabilise debt-GDP ratios, maintain inflation at below 10 per cent. These are the actual and more realistic fundamentals that will support the debased currency and create an improvement in the lives of people. There will be another benefit of recalling money that has been kept away from the formal financial systems. Many individuals in the habit of storing money in mattresses will for a while be compelled to bring this cash into circulation. This activity will, however, have some temporary inflationary pressures."
But Ng'andu Magande has cautioned that the removal of zeros off the kwacha, if not properly handled, will send signals that the PF government has failed to manage monetary policies.
Magande, who is former finance minister, said rebasing or removing of zeros from a currency is usually done when the note is affected by external factors beyond government control.
"If they are external factors beyond government's control to appreciate its currency the way they did it in Zimbabwe because government could not control people who were bringing US dollars into the country, then you can pursue this path," Magande said, who is president for National Movement for Progress (NMP)
"And this is the impression that will be built in the market that the Zambian government has failed to manage its monetary regime to an extent where all they can do only is removing zeros thus creating a situation that the kwacha is very much valued, for example, from K5,000 to K5 per US dollar so this will create a psychology that the currency has appreciated but in fact it means it has failed to appreciate even to K3,000 because government has failed to take certain monetary measures."
And University of Namibia senior lecturer Dr Kazhila Chinsembu says the move to rebase the kwacha should signal a quick break from the previous regime of Rupiah Banda.
Dr Chinsembu said governments often re-denominate their currencies in order to reassert their credibility and commitment to low-inflation economic policies.
"As a matter of urgency, the Patriotic Front government of Michael Sata now wants to signal to voters in the post-election period that times in Zambia have changed, that the previous government of Rupiah Banda lamentably failed to manage our fiat currency, and that this move to rebase the Kwacha should signal a quick break from the past," said Dr Chinsembi.
Meanwhile, Chikwanda said only apostles of kleptocracy and high priests of theft who are not morally constrained to steal from the public were crying the loudest over government's decision to repossess Zamtel.
"We made a decision to restore Zamtel back to the people of Zambia.
Zamtel is a very viable company to be sold corruptly," he said.
Chikwanda said the PF government had irrevocable commitment to the public and would do everything possible to ensure the company continued to operate in the interest of Zambia.
Meanwhile, Bank of Zambia governor Michael Gondwe said the process of rebasing the currency was likely to be done within six months.
Labels: CHIBAMBA KANYAMA, KWACHA, ZAMTEL
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You are a useless controller, Simbao tells community PS
By Roy Habaalu
Tue 24 Jan. 2012, 12:55 CAT
CHAIRPERSON of the parliamentary committee on communication, works and supply Kapembwa Simbao on Friday told the permanent secretary in the ministry of community development that he is useless as a controller.
This was after the acting permanent secretary, Ben Chuundu, failed to explain why junior officers were allocated personal-to-holder vehicles. According to government regulations, only ministers, deputies and Permanent Secretaries were allowed to have personal-to-holder vehicles.
"Mr PS sorry to say, but you are useless as a controller. You have failed to stop lower officers from driving personal-to-holder vehicles. Maybe the government should review this policy, this is happening (junior officers having personal to holder vehicles)," said committee chairman Kapembwa Simbao.
Simbao, who is Senga Hill member of parliament, warned Chuundu not to tell lies to lawmakers.
"Be careful please, let's have facts. Tell us what's happening. We are the people that give you money as MPs and if things are wrong, we make recommendations," he said.
Simbao told Chuundu that he would indicate in the report that the PS failed to take up the opportunity to appear before the committee.
After a lengthy lecture, Chuundu who remained silent, apologised to the committee for not disclosing that junior officers had personal-to-holder vehicles.
And the Ministry of Commerce Trade and Industry on Friday failed to give account of expenditure on motor vehicles at the Zambia Development Agency, Citizen Economic Empowerment Commission and Patents and Companies Registration Agency.
Ministry of Works and Supply permanent secretary Steven Mwansa apologised for not providing an inventory of statutory bodies.
And Mwansa pleaded with the committee not to consider as excessive the use of three vehicles for officers that went to Parliament.
"I beg the committee not to consider that as excessive. There are security concerns. Why I came alone is that I was given a directive that I travel to Addis Ababa and had to rush here," he said.
This was after Magoye parliamentarian Oliver Mulomba wanted to know how many vehicles the PS had used when going to the National Assembly.
"That's excessive. The permanent secretary for foreign affairs used one vehicle coming here," said Simbao.
Labels: KAPEMBWA SIMBAO, PERMANENT SECRETARIES
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Ruling on LAP Green's judicial review today
By Mwala Kalaluka, Allan Mulenga and Kombe Chimpinde
Tue 24 Jan. 2012, 12:54 CAT
RULING in the matter where Zamtel Telecommunications Company has sought judicial review in the Lusaka High Court following the freezing of its bank accounts by the Drug Enforcement Commission comes up today. And
George Kunda says the MMD will not contest the reversal of the sale of Zamtel.Lusaka High Court judge Evans Hamaundu is expected to hand down the ruling today after the matter came up for ex-parte hearing yesterday morning.
According to a statement in support of an application for leave to apply for judicial review filed in the Lusaka High Court, Zamtel cried out that the seizure of its accounts in Barclays Bank and Zambia National Commercial Bank would lead to a halt of its operations.
Zamtel in its application is seeking a reversal of its account seizure act by DEC.
Zamtel wants the court to also declare that the Act under which DEC seized the accounts, which is the prohibition and prevention of money laundering Act number 14 of 2001 was unconstitutional as it infringes article 161 of the Republican Constitution.
Zamtel also seeks damages suffered as the result of the seizure of its bank accounts.
Featuring on Muvi TV's The Assignment programme on Sunday night, Kunda, the former Republican vice-president in the Rupiah Banda regime, said the current government should take responsibility over the reversal of the sale of Zamtel.
Banda's government sold 75 per cent shares in Zamtel to LAP GreenN of Libya for US$257 million, a decision the previous government described as "the best".
But the current government has reversed the transaction, with President Michael Sata saying the deal was consummated by a corrupt regime.
"Let those who want to reverse the sale of Zamtel take responsibility; they are the government, but you see other people have got their own rights, for example LAP GreenN. And also you see Zamtel has been performing well. So far, I am told the subscriber base has increased from 100, 000 subscribers to a million. Now, it shows that the company is doing well, but anyway our government feels that they should repossess, we go by that," he said.
Kunda insisted that the reversal of the sale of Zamtel would be costly on the part of the government.
"As we have said before, this is going to be a very costly reversal and also what we are saying is that this is the best privatisation ever undertaken in this country and that is the fact because all the facts are there, but it is up to the government. If they want to reverse, let them reverse, but we can only state our position," he said.
Kunda described the Sebastian Zulu report on the sale of Zamtel as a fraud and fault-finding.
"Mr Sata, he is the President and he is going to take responsibility for this. You see these are the things which they are investigating us over when we go to the defunct Task Force; why did you do this; why did you do that. That is what is happening, procedural lapses; that is what they are investigating. So, even these issues those who have been involved in this, they will be answerable, they will be accountable to the people of Zambia because there are legalities involved," he said.
"This will entail terminating binding agreements. Now at international law, you have to go back to the agreement. You look at dispute resolution mechanisms will this be through arbitration, which law will be applied all those. We must be ready for that and of course the government will take responsibility."
Kunda accused President Sata of witch-hunt in his fight against corruption.
"For example, Sebastian Zulu was given instruction to say this was a corrupt transaction, I want it to be reversed. It is fraud, it is predetermined. They were going to reach this conclusion, anyway this was Mr Sata's wish and he is still pursuing it and threatening anybody. They have published this report so we must all debate, but when we debate as MMD he comes out very strongly, he is threatening with reprisals which are uncalled for, for a President of the country," said Kunda.
And Felix Mutati says the government must allow Zambians to decide what action should be taken regarding the privatisation of Zamtel to Lap GreenN of Libya.
Mutati, the former commerce minister and now leader of the opposition in Parliament, said it would not help to reverse the whole sale of Zamtel based on "a few" irregularities that surround the transaction.
He said the MMD will not join in giving emotional responses on the government's decision to reverse the sale but analyse its content as a basis for them to make informed responses to the Sebastian Zulu-led commission of inquiry findings.
Mutati said the MMD's preliminary assessments, however, based on extracts from the press indicated that there were contradictions in the report which has been made public.
"There are some contradiction and technical inaccuracies, for example, the report says government returned US$15 million as net profit, whereas at the same time they indicate that government was paid US$257 million. The second is the indicator that RP Capital valuation stands at US$38 million, while on the other side they blame RP for facilitating a total purchase price of US$257million," he said.
"On the technical platform, it indicates that the book value of Zamtel is US$84 million, but it does not indicate that when transaction has taken place under the ZDA Act, the basis of evaluation must be the net assets therefore does not take into account the liability and these are some of the exempts that have come through from the press indicating these inadequacies."
Mutati, who was last week summoned by the Taskforce investigating plunder in the previous regime, reiterated that the sale of Zamtel was in the best interest of Zambians as it was limping, stressing that reversing the sale because of "a few" irregularities may not be in the interest of the country.
"Zamtel at the time as confirmed by audited reports of 2009, which indicated that Zamtel registered a loss of US $20 million had a subscriber base of around 100,000 and its survival was premised on not paying taxes to government and also defaulting on its financial obligation to the various lenders," Mutati said. "In this matter, it is paramount that sometimes you may need to cure a wound but not cut a limb. This is a fundamental transaction."
Labels: COURTS, GEORGE KUNDA, LAP GREEN
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Plunderers are behind the false assassination story - Bishop Mambo
By Ernest Chanda and Roy Habaalu
Tue 24 Jan. 2012, 12:54 CAT
BISHOP John Mambo says Mafias who plundered the country are behind the false story circulating that President Michael Sata has been assassinated. And former PF national youth Chairman Eric Chanda has urged the party's youths to call off their election victory honeymoon and defend the party.
Commenting on an online prank published on Sunday, which claimed that President Sata had been assassinated in the morning of the same day, Bishop Mambo, who is Chikondi Foundation president, said lawbreakers were not happy with the President's strong stance against corruption.
He observed that plunderers would not rest in their quest to fight back, hence the schemes to fabricate death stories about the Head of State.
"Those who were burying money, those who have the money, it's a Mafia group. The Mafia can take anybody's life for nothing. They want to use the money they stole to take somebody's life. I think he has stepped on the toes of many powerful people financially. He has stepped on the toes of Mafias and so they want to fight back. But the people of Zambia for whom the President is fighting will not just sit by," Bishop Mambo said in anger.
"These prophets of doom are bound to create civil war because the President has the mandate of other Zambians who put him in office. And all these people are bound to be upset with such alarming lies that they will have no alternative but to take up arms. But we should never allow that as a country. The rumours of President Michael Chilufya Sata being sick, we heard those during campaigns; but now he is Head of State. And the reason these people are doing this is simple; the President is a man of action.
"He calls a spade a spade. If you have stolen he will pursue you; so all those with skeletons are scared."
Bishop Mambo urged security wings to investigate and arrest the culprits.
He said such a statement could not be trivialised because the corruption fight the President had embarked on had offended many people.
"He should not take security for granted. The security wings should treat this matter serious because it borders on treason. They must see that the President is well guarded. And he himself must stop being relaxed because this is not a small thing," sad Bishop Mambo.
"Are you God yourself that you can be wishing someone dead? And what do you achieve by wishing someone dead? We will support him because we have seen for now that he is a friend of the poor. And when he abandons us we will remind him to get back into the right track. He is not an angel, but he has demonstrated that he is a worker; and this is what we wanted as Zambians."
According to a link to the online encyclopedia Wikipedia, the site ended President Sata's biography with the announcement of his ‘assassination' in the early hours of Sunday.
The post appeared on Sata's profile on the free online encyclopedia, which anyone can edit, on Sunday under the heading "Death".
"Michael Sata was assassinated in the early hours of the 22nd of January. He was killed through a single shot to the chest, which proved to be fatal," it read.
But President Sata's special assistant for press and public relations George Chellah described the story as malicious, sadistic and unfounded.
Labels: JOHN MAMBO, MICHAEL SATA
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Kunda denies being probed over K814bn
By Mwala Kalaluka
Tue 24 Jan. 2012, 12:59 CAT
FORMER Republican vice-president George Kunda says he has never been investigated or questioned over the alleged K814 billion excess expenditure by the MMD government in 2010.
Reacting to a story published in yesterday's Post that he had been quizzed over the K814 billion excess expenditure highlighted in the latest Auditor General's report, Kunda said in a letter to The Post that his appearance at the former Task Force offices had nothing to do with the above issue.
"I have seen your article entitled ‘Cops Probe Kunda over K814 bn'," Kunda stated. "The article further alleges that a combined investigative team composed of officers from the
Drug Enforcement Commission, Anti Corruption Commission and Zambia Police summoned me to explain the MMD's K814 billion which went missing."
Kunda stated that the said article further alleges that he was being investigated over the MMD government's K814 billion extravagant expenditure.
"These allegations are not true. I have never been investigated nor questioned over the alleged K814 billion and I am not aware of any such investigation," Kunda stated. "In this regard my appearance at the former Task Force Offices had nothing to do with the alleged missing K814 billion."
Sources within the combined investigative team said on Sunday that Kunda had been quizzed over the K814 billion excess expenditure when he appeared before the probe team on Wednesday and Thursday last week.
When asked to explain the nature of the interrogation and summoning before the government investigators, Kunda said: "No, nothing, we were just discussing matters of national interest."
Labels: CORRUPTION, GEORGE KUNDA
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Sakeni urges proactiveness in curbing financial abuse
By Kabanda Chulu
Tue 24 Jan. 2012, 12:58 CAT
HOME affairs minister Kennedy Sakeni has challenged controlling officers to report to the police any suspected theft or misapplication of public funds in their ministries and departments even before the office of the Auditor General releases its reports.
When asked to comment on why security wings do not act on reports of financial irregularities highlighted in the Auditor General's reports, Sakeni said the police usually act when a report or complaint is presented to them.
"When controlling officers get such reports which of course implicate officers on issues of corruption or theft that are highlighted, it is important to make available these documents to the police because they can't act without reports so they must be informed and documents delivered to them. For example, if somebody misappropriated funds but a controlling officer fails to report then, how do you expect the cops to dream and chase up cases?" Sakeni asked.
"My plea to controlling officers is that once they come across issues of suspected corruption, pilferage, theft, they should report immediately to the police for them to investigate and take culprits to court. Law enforcement agencies will not hesitate to take action whenever they get a report and I am sure even the ACC, despite not falling under my ministry, are more than ready to pursue those cases."
He advised permanent secretaries not to hesitate in reporting any suspected fraud in their ministries to police.
"They shouldn't even wait for OAG reports, even auditors once they discover something fishy in their course of work they should simply extend findings to police, DEC or the ACC because this is the only way to bring sanity in government operations," Sakeni said in an interview.
He warned government officers in the new provincial centres and districts that will be established to be honest when handling government funds.
"New towns will require massive development so huge funds will be disbursed and in procurement of government materials, that is where there is lots of grey areas with high incidents of pilferage, over invoicing, bribery, among other cases, thus resulting in officers accumulating property beyond someone's imagination," said Sakeni.
"My plea to anybody handling government funds is to be honest, let them act above board so that the law doesn't visit them. As a new leadership we should avoid falling prey to such schemes of stealing public funds and we won't leave room for people to get involved in money laundering activities."
Labels: AUDITOR GENERAL, CORRUPTION, KENNEDY SAKENI
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Musokotwane petition judgment set for March 12
By Mwala Kalaluka
Tue 24 Jan. 2012, 12:56 CAT
LUSAKA High Court judge-in-charge Jane Kabuka has set March 12 as the date of judgment in a matter where the election of the MMD's Dr Situmbeko Musokotwane as Liuwa member of parliament is being challenged.
This was after Dr Musokotwane, a former finance minister in the Rupiah Banda administration, closed his defence yesterday morning and the lawyers for both parties subsequently made their oral submissions.
Dr Musokotwane admitted during cross-examination by the petitioner's lawyer, Willie Mubanga, that he distributed T-shirts and chitenge materials during the September 20 electoral campaign.
Dr Musokotwane said although he did not partake in the distribution of the materials, which was usually done at public meetings, he was always kept abreast by his agents.
He said the first time he heard testimony that he had treated the electorate during the campaign period in Liuwa, was when the petitioners' witnesses were testifying before the court.
He said there was a conflict management committee at every polling station but there was never a time a complaint was tabled that he was treating the electorate.
Dr Musokotwane said he was referred to as Bo Mubanji the allocator or distributor during his campaign in Liuwa because his message to the people was to choose between somebody who was allocating national resources or for a party that could never produce a finance minister like him.
"In the manner that my colleagues have used it here, clearly it was meant to be offensive," said Dr Musokotwane.
Mubanga said in his submission on behalf of the petitioner that the allegation that Dr Musokotwane and his agents engaged in bribery and treating of voters had not been challenged.
"Our submission is that the testimony of the witnesses with regard to bribery and treating was not controverted under cross-examination," Mubanga said. "This is notwithstanding the fact that all the relevant witnesses that we have referred confirm in their evidence-in-chief that they were given the items in question in return for votes."
Mubanga said the petitioner's witness had led sufficient evidence to enable judge Kabuka annul Dr Musokotwane's evidence.
Mubanga said the manner in which Dr Musokotwane and his agents went around distributing campaign materials was intended to bribe voters.
But Dr Musokotwane, through his lawyers, Eric Silwamba and Lubinda Linyama, asked the court to dismiss the petition because it had not met the required threshold in matters of that nature.
Silwamba said the evidence of some of the petitioner's witnesses was tainted with discrepancies and as such it was difficult to believe such witnesses in view of their demeanour and credibility.
"The alleged bribery and treating is grossly misconceived at law and fact," Silwamba said. "There must be a corrupt element in the exercise."
Silwamba said the provision of campaign materials to some Liuwa residents was a legitimate election expectation.
"We pray that the petition must collapse on its own," said Silwamba.
Labels: COURTS, SITUMBEKO MUSOKOTWANE
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President Sata appoints Dr Mupanga Mwanakatwe, Chairman and acting CEO of ZAMTEL
TIME PUBLISHED - Tuesday, January 24, 2012, 1:51 pm
Zambian President Michael Sata has dissolved the Board of Directors of Zamtel and appointed a new Chief Executive Officer and Chairman. Government having accepted without reservation the report on the findings of the Committee Investigating the sale of Zamtel, President Sata has deemed it desirable and expedient to compulsorily acquire the 75 per cent shareholding of Lap Green Network in Zamtel. The appropriate notice under the law has been given.
This is according to according to a press statement released to the Media by Special Assistant to the President for Press and Public relations George Chellah. According to the statement, the President has ordered the dissolution of the Board of Directors of Zamtel. The Head of State has appointed Dr Mupanga Mwanakatwe, Chairman and acting Chief Executive Officer as a first step to regularize the affairs of the company.
“A new board will soon be put in place to give the policy guidance and direction to management and staff. President Sata has further directed management to address the plight of Zamtel workers with due immediacy,” read the statement.
“There should be no loss in jobs except through retirement and attrition while maintaining the highest levels of discipline and respect of law,” President Sata said.
“Zamtel workers have served with distinction in an area of sophisticated information technology. This has been so from the inception of the company,” the president noted.
President Sata once again reiterated his relentless commitment to his duty as custodian of the interests of the Zambian people and assured the Zamtel workers their traumas and anxieties would be ended.
Government will restructure ownership of Zamtel to ensure Zambians owned the bulk of the shares in a revitalized Zamtel.
Labels: GEORGE CHELLAH, MICHAEL SATA, PARASTATALS, ZAMTEL
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Co-op leadership engages Chikwinya
Tuesday, 24 January 2012 00:00
Court Reporter
THE executive leadership of Harare North Housing Co-operative Union, whose membership was ordered off the 84-hectare piece of land in Hatcliffe has engaged the legitimate land occupant Cde Nyasha Chikwinya to accommodate part of the affected families.
Cde Chikwinya - a Zanu-PF Central Committee member - won the land case last week after several members of the union had already erected illegal struc- tures. Justice Francis Bere last week ordered Mr Justin Zvandasara, who was believed to be the union's chairman together with the union's members, to vacate the land within 48 hours of service of the order.
Failure by the members to leave the land on their own, Justice Bere said, will result in the police and the deputy sheriff evicting them.
Cde Chikwinya yesterday said the eviction has been temporarily halted pending the outcome of negotiations with the union's executive led by Mr Misheck Mangwende.
"As a mother and grandmother, I have a heart. Some members of the union thronged my offices begging me to spare them from evictions.
"Some indicated that they did not know that the land was in dispute and that they were unsuspectingly subscribing to the project.
"The union's executive leadership led by Mr Mangwende has also approached us and we are currently negotiating on how such members should be accommodated.
"May be by end of this week there will be a concrete position on the way forward," said Cde Chikwinya.
Harare North Housing Cooperative Union treasurer Mr Knowledge Chetechete yesterday confirmed the development saying talks were still progress.
"Yes we are trying to negotiate on how our membership can be accommodated in Cde Chikwinya's project," said Mr Chetechete.
Cde Chikwinya said there were some double allocations on the land and that the members would be accommodated only on the stands that have not yet been allocated to others.
"We want to allocate the stands in an orderly manner and if there are openings, some of the affected union's members would be accommodated provided they comply with the require- ments and standards for urban settle- ment.
"We will not allow people to erect shacks like what others have done on the land.
"Construction should be done with the approval of the municipality. Stage forms, should be used whereby council approves every stage of construction," said Cde Chikwinya.
Labels: COOPERATIVES, HOUSING
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Kill the Boer indeed!
Wednesday, 11 January 2012 00:00
My Turn Caesar Zvayi, Deputy Editor
Being one of the few Zimbabweans who got the chance to join the ANC in celebrating 100 years of existence in Mangaung, I stubbornly refuse to call it Bloemfontein, let me take this opportunity to wish my South African brother’s a happy anniversary.
I hope you will have another 100 years of bringing meaningful change to the lives of the poor people in Kayelitsha, Alexandra and many other slums whose inhabitants do not hear, but listen to Letta Mbulu’s classic hit, Not Yet Uhuru.
This powerful ditty not only captures the tragedy of many African countries that got
the crown minus the crown jewels; but South Africa’s unique condition of being a political and socio-economic binary.
In Mzansi the white minority has a stranglehold on the means of production while for many freedom, not independence, has just meant seeing black faces in government which explains the anger among the likes of Julius Malema.
Well it is not my place to try to spoil the spirit of the centenary. A hundred cheers to my fellow brothers!
In his address in Mangaung, ANC president Jacob Zuma rightly paid tribute to countries in southern Africa and many others as far afield as Cuba and the Nordic countries for the crucial role they played in bringing freedom to South Africa.
Its worth noting that in his 56 page speech, Msholozi made no mention of the countries that today pass themselves off as the originators and defenders of neo-liberal democracy — the United States and Britain — for rather than abet South Africa’s cause for independence, these countries actually abetted apartheid.
They violated the sanctions the UN had imposed on the apartheid regime, and continued to trade and consort with the murderous regime. The US in fact went a step further by placing the ANC and its leadership on sanctions after declaring them terrorists.
The administration of Ronald Reagan opposed formal sanctions on apartheid South Africa, preferring to exert quiet pressure to speed up reform.
But the demand for sanctions could not be quieted, and in 1986 the US Congress overrode a presidential veto to ban the importation of South African goods and prohibit American business investments in South Africa. Nelson Mandela, whose legacy the Anglo-Saxons have sought to expropriate by turning him into a virtual mascot for politically correct photo opportunities, was deemed a terrorist by the US State Department as late as the run-up to his 90th birthday in 2008.
US president George W Bush had to issue an executive order to have Mandela and the ANC leadership off the sanctions list before July 18, 2008.
Be that as it may, the bottom line is Uncle Sam was an enemy of democracy in South Africa as evidenced by his opposition to Mandela’s quest for freedom, and this should put his sanctions on Zimbabwe, its leadership and other people into perspective.
But the question is why do westerners embark on this charade of celebrating Mandela as if they believed in his cause? Why did they erect his statue in Piccadilly Square? What is it that happened between February 11, 1990, the day Madiba ambled out of prison and 1999, the year he left office that so endeared him to westerners?
The answer is simple Madiba, after taking the baton from the other nine ANC presidents before him, did not upset the apple cart. He was content to have the crown minus the crown jewels, and in so doing became the typical good African who does not pose “an unusual and extraordinary threat to US foreign policy” unlike his counterpart north of the Limpopo.
For in imposing sanctions on Zimbabwe, the US made it clear that the sanctions were being imposed because ‘‘Zimbabwe constituted an unusual and extraordinary threat to the foreign policy of the United States.’’ This is the text of Executive Order 13188 that the US president uses to extend the sanctions every year.
Contrary to western rhetoric and grandstanding the sanctions were not imposed to promote democracy and good governance in Zimbabwe but to subvert democracy whether in its expansive or minimalist form.
So what is my point?
My point is South Africans who have become notorious for something called ‘‘xenophobia’’ should know that while their freedom was a regional effort, it certainly is not the responsibility of the region to transform that freedom from the political to the economic dimension.
Beating and hacking your brothers to death simply because you are out of a job or slept on an empty stomach will not change your condition as long as your leadership chooses to quote and implement only the preamble of the Freedom Charter that goes
‘‘South Africa belongs to all who live in it, black or white . . .’’
They should not pay lip to the rest of the charter that inspired patriots to lay down their lives to defeat apartheid.
The absence of the westerners in the tributes Zuma paid to all who helped South Africa on the path to freedom should tell us all who is for and who is against us.
But for me the enduring memory of the centenary was not the counter-flow of Afrikaners who drove out of Mangaung as the ‘‘black peril’’ from Soweto drove in; nor the enthusiasm and jubilation of ANC members of all ages who turned Mangaung into a sea of black, green and yellow.
For me, the enduring memory was that moment Jacob Zuma ended his 56-page speech with the thunderous slogan, ‘‘Amandla!’’ to which the crowd responded with an equally deafening ‘‘Ngawethu!’’
The lasting memory was when Zuma’s voice filtered from the giant stadium speakers doing justice to the anti-Apartheid song, ‘‘Dubula ibhunu! (Kill the Boer)’’ Yes that song that the South Africa Supreme Court tried to kill by declaring it ‘‘hate speech’’ rolled off Zuma’s lips as Malema nodded along on the VIP stage.
I puffed out my chest, and lip-synced even though I do not even know a single stanza. For me Zuma’s rendition of that song showed there is hope for the ANC over the next 100 years. They need to kill the Boer, metaphorically that is, for that is the only way the power (amandla) can be theirs!
Labels: ANC, CAESAR ZVAYI
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