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Laws governing mines not ‘totally fair’ – Rupiah

Laws governing mines not ‘totally fair’ – Rupiah
Written by Patson Chilemba in Kabwe
Wednesday, August 19, 2009 6:28:35 PM

PRESIDENT Rupiah Banda has said the current laws governing the mines in the country are not “totally fair” to Zambians. Officiating at the 28th general conference of the Council of Churches in Zambia (CCZ) at Mulungushi University in Kabwe on Monday, President Banda said Zambians wanted most of the money investors put in their pockets.

"We are working very hard to try and resolve this problem of the laws that govern our mining in our country because we see that it's not totally fair to us. But at the same time, you don't want to take everything from them so that they don't find it interesting to remain in Zambia," President Banda said.

"We need to make prudent laws, as you have said in your speech, to make sure that they don't take advantage of our people. And I think most investors, proper investors, do not mind fair laws being put in place to protect the citizens of that country."

President Banda disclosed that government had acquired a mediator to settle some outstanding issues that the government had with an "unnamed" mine.

"So we have agreed on one particular mine, I have not disclosed which one it is because we are still negotiating. Our people are leaving for London, and they are going to sit down with this negotiator who is worldly renowned for making fluid resolutions when there is a conflict between a country and the investor," he said.

President Banda said he had taken note that CCZ wanted to see a situation where the mining industry was compelled to undertake and fulfil certain obligations to empower disadvantaged local communities, including women, the majority of whom had been excluded from the mainstream economy and other empowerment programmes.

"Nobody can argue with that. We are going to try our best," he said.

However, President Banda said it was unrealistic for some politicians to think that the country could achieve development without investment from outside. He asked Zambians not to create phobia against foreigners.

"We must be honest enough to condemn ourselves for that. We need investors to come here. But once they come here, we need to make prudent laws as you have said in your speech to make sure that they don't take advantage of our people," he said.

President Banda said impatience was one of the main reasons for lack of development, saying some people thought the country could attain development such as that of the United States of America (USA) in one day.

"Of course, there are those who are simplistic to tell us the cause of all this is poverty. I think that the Congo is not a poor country, just like Zambia is not poor," he said.

President Banda said Zambians had always managed in one way or another to remove leaders when they were not satisfied with leader's performance.

He said he was ready to be voted out should he fail to perform on his promises to the people.

"Today, if there were elections and I was voted out, I will salute the other person, shake hands with him. In other words, I am telling you that I am not going to ask for a third term. I will ask for a second term, but not a third term," President Banda said.

And the Council of Churches in Zambia (CCZ) chairperson Reverend Moses Mwale asked government to put in place legislative measures compelling investors especially in the extractive industry to bank their revenue with the Central Bank of Zambia, and commercial banks in the country so as to ensure liquidity and accountability.

Rev Mwale said many people were poor mainly due to individuals, institutions or governments.

He said whatever the case may be, Christians must apply and exercise their prophetic voice and speak out against any form of abuse or misuse of power.

Rev Mwale said the government, individuals and institutions should not abrogate their responsibility to defend the poor from justice.

"The Church has potential to offer some unique solutions to poverty and injustices. The Church is better equipped to meet the psychological, spiritual and physical needs of poor people as most secular social programmes do not place much emphasis on the first two and thus miss an important element on the solution to poverty," he said.

Rev Mwale said CCZ had chosen to dwell more on the mineral wealth and land of Zambia, which made the country unique.

He said CCZ appreciated that the price of minerals had been fluctuating of late.

He said the mining Act repealed all Mining Development Agreements that previously existed, under part 15 of the Act and Section 160 forbids the Minister of Mines from entering into any agreement relating to the grant of a large scale Mining licence or any other licence, under Section 159 Part 15 of the Act.

Rev Mwale said where communities increased their shareholding, they stood to benefit even more, as they enjoyed increased dividend and greater voice in deciding the policies of the company.

"We are therefore proposing that Zambia should introduce, like South Africa, a Social Charter for the mining industry (9 October 2002,) that addresses the historical imbalance created under Apartheid/colonialism," Rev Mwale said. "The Social Charter is an undertaking that binds government and the Mining Industry, and they undertake to put in the necessary regulatory framework as well as Industry Agreements to facilitate the Charter."

Rev Mwale asked the government to put in place measures compelling investors especially in the extractive industry to bank with the Central Bank of Zambia.

He said this would only be possible where the Central Bank could assure excess liquidity in the market.

"And that will be possible if the Mineral revenues were banked with the Central Bank, instead of 100 per cent repatriation of capital and profits, as is the case and has been," said Rev Mwale.

Labels: CCZ, MINING, MOSES MWALE, RUPIAH BANDA, WINDFALL TAX

posted by MrK @ 5:30 PM