MPs act to keep the vultures at bay
Ashley Seager
The Guardian, Wednesday 6 May 2009
MPs will today seek to curb the activities of "vulture funds" that prey on poor countries by buying their sovereign debt cheaply and then going to court to enforce repayment of the full value.
Labour MP Sally Keeble will lead a group of 12 cross-party MPs in calling in parliament for a Developing Country Debt (Restriction of Recovery) bill that would seek to ban hedge funds and other creditors from taking legal action to make large profits out of the debts of some of the world's poorest countries.
Such funds, many of which are based in the US or the British Virgin Islands, often use British courts and law firms to pursue claims against poor countries, such as Zambia, the Democratic Republic of the Congo and Liberia.
"These vulture funds have been engaged in completely unregulated profiteering in third world debt," Keeble said. "This bill puts forward some basic measures to clip their wings."
The bill is backed by anti-poverty group Jubilee Debt Campaign, which is leading a campaign against the funds.
"This bill would represent a major step forward in tackling these odious funds," said Nick Dearden, the group's director. "It cannot be right that companies are allowed, in British courts, to make enormous profits out of the suffering of millions of the world's poorest people. Tackling vulture funds should be an urgent priority."
Gordon Brown, the prime minister, has often criticised vulture funds and called for international action to ensure they cannot thrive. He wants the World Bank to help poor countries eliminate their commercial debts and creditors to establish a legal fund to help countries defend themselves.
But despite an early-day motion signed by 110 MPs a couple of years ago urging the government to follow the example of influential US Congressman John Conyers, who pressed President George Bush to change US law to outlaw vultures, no action has been taken.
Vulture funds buy the debt of poor countries on the open market - usually at very low prices because of the small likelihood of it ever being repaid. The funds then go to court to demand repayment of the face value of the debt, which is often many times higher than they paid for it. The debt was often run up by corrupt dictators who have long since gone.
At least 54 companies are known to have taken legal action against 12 of the world's poorest countries in recent years, for claims amounting to $1.8bn (£1.2bn). Vulture action is being undertaken against Ethiopia, Cameroon, Argentina, the Democratic Republic of the Congo and others, according to World Bank reports.
The bank has said, though, that its figures are unlikely to reflect the true value of such actions, which could be much higher.
In 2007, Donegal International, based in the BVI, made the news when it won $15.5m repayment in the high court for Zambian debt it had bought several years earlier for $3.3m. Two-thirds of Zambians live on less than $1 a day, and debt relief was intended to free up vital resources for healthcare and education.
The Keeble bill provides for an end to hedge funds and other investors buying up poor country debt at cut-rate prices and then suing them through the British courts. UK legislators are working in conjunction with counterparts in the US, where similar legislation, the Stop Vultures Act, is being introduced to the House of Representatives this month by Congresswoman Maxine Waters.
The US and UK are the two most popular jurisdictions for vulture funds to take legal action, with the UK alone accounting for about one-fifth of vulture cases. Firms such as Allen & Overy, Weil Gotshal, and Dechert all count vulture funds among their clients, which include Donegal, Kensington International and Elliott Associates.
Last month the Liberian government announced it had reached a deal with its commercial creditors to pay off its vast commercial debt at a rate of three cents on the dollar.
The total cost of the buyback of $1.2bn in commercial debt was $38m and was financed by the debt reduction facility of the World Bank, with contributions from the International Development Association, the US, Norway, Britain and Germany. It said 97% of Liberia's commercial creditors had participated in the buyback, meaning that vulture funds were effectively barred from taking action against the country in future.
Labels: MAXINE WATERS, MPs, SALLY KEEBLE, VULTURE FUND
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ZESCO Managing Director Fired
Thursday, May 7, 2009, 16:12
ZESCO Limited managing Director, Rhodnie Sisala, has been relieved of his duties.
The newly appointed ZESCO board announced in Lusaka on Thursday that it has with immediate effect terminated Mr. Sisala’s contract.
The board has meanwhile appointed Director of Power Rehabilitation and Generation projects at ZESCO, Musonda Chibulu, as acting Managing Director.
Board Chairman Songowayo Zyambo says Mr. Chibulu will act as ZESCO chief executive until a new one is appointed.
He said the position of ZESCO Managing Director will be advertised.
[ZNBC]
Labels: PARASTATALS, RHODNIE SISALA, ZESCO
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Hopes rise for reopening of Bwana Mkubwa copper processing plant
Written by Chiwoyu Sinyangwe
Thursday, May 07, 2009 4:06:37 PM
PROSPECTS for the reopening of the closed Bwana Mkubwa copper processing plant look bright after First Quantum Minerals Limited (FQML) announced plans to start mining ore from Mkushi, according to an Environmental Impact Statement (EIS).
Bwana Mkubwa mine plant, which is one of the oldest mines in Zambia, ceased operations late last year after the owners of the mine FQMOL failed to clinch the vital deals with the authorities of the Democratic Republic of Congo (DRC) over the sourcing of copper ore.
DRC authorities, under Katanga Province governor Moses Katumbi, had insisted that only copper concentrates be exported from the mineral country while FQML stated that the Bwana Mkubwa plant could only process an input of ore and not concentrates.
According to EIS for the proposed Fishtie Project at Kashime, First Quantum intended to mine three million tonnes of copper at the mine to be situated 30 kilometres north of Mkushi.
Fishtie Project at Kashime would be situated within Mkushi district and would be done by open pit mining methods.
“The mined ore will be transported to Bwana Mkubwa processing plant in Ndola for processing,” the EIS submitted to the Environmental Council of Zambia (ECZ) read in part. “FQML will also upgrade the old Congo way [old Ndola – Mkushi road] to suitable standard to facilitate transportation of ore to the processing plant.”
The EIS also announced that the Fishtie Project at Kashime was estimated at 27 months at an ore production rate of 100, 780 tonnes per month.
“The average overburden stripping will be about 856, 164 tonnes per month, giving a total overburden material of approximately 23 million tonnes for the life of the mine,” it stated.
Until its closure last year, Bwana Mkubwa used to process an annual estimate of about 41, 000 tonnes of copper cathodes and 140, 000 tonnes of Sulphuric Acid.
Labels: BWANA MKUBWA, EIS, FQML
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CSO calls for policy on outgrower schemes
Written by Kabanda Chulu
Thursday, May 07, 2009 4:01:51 PM
A CIVIL society organisation (CSO) has challenged the government to quickly put in place a comprehensive policy on outgrower schemes, saying many small-scale farmers are exploited through unfair contract systems.
Commenting on the increased
usage of small-scale farmers by multinational companies through long-term contracts disguised as outgrower schemes, Organisation Development and Community Management Trust (ODCMT) executive director Zindikilani Daka expressed concern that big companies that were involved in outgrower schemes had
continued to subject small-scale farmers to unfair and exploitative conditions.
He explained that ODCMT had conducted a series of research and advocacy on out grower schemes on crops like cotton and tobacco, which showed that the intention of out grower schemes was good and could improve rural livelihood but was undermined by unfair practices by multinational companies.
“Government should come up with a comprehensive policy on outgrower schemes because it has the potential to improve rural livelihood, but companies involved are exploitative by using farmers as cheap labour and a reserviour of resources. This is done through low prices and subjecting them to unfair contract conditions,” Daka said.
“We have noted with concern that some companies are promoting the production of Jatropha and some farmers are being enticed to sign contracts of up to 30 years without clearly explaining the contents of those contracts. We think this is wrong and government should find a way to enhance the operations of out grower schemes.”
He said the government should ensure that Jatropha farmers were not exposed to exploitative conditions like those prevailing in the cotton and tobacco sub sectors whereby multinational companies had become richer at the expense of the farmers.
Daka also urged the government to do more research on Jatropha to establish its impact on the soils and the environment.
Labels: AGRICULTURE, CSO, JATROPHA, NEOCOLONIALISM, ODCMT, OUTGROWER SCHEMES, ZINDIKILANI DAKA
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COMMENT - What this article does not mention is that the IMF did not support Zimbabwe because of the US veto enshrined in US law:
SEC. 4. SUPPORT FOR DEMOCRATIC TRANSITION AND ECONOMIC RECOVERY.
the Secretary of the Treasury shall instruct the United States executive director to each international financial institution to oppose and vote against--
(1) any extension by the respective institution of any loan, credit, or guarantee to the Government of Zimbabwe; or
(2) any cancellation or reduction of indebtedness owed by the Government of Zimbabwe to the United States or any international financial institution.
SEC. 3. DEFINITIONS.
In this Act:
(1) INTERNATIONAL FINANCIAL INSTITUTIONS- The term `international financial institutions' means the multilateral development banks and the International Monetary Fund.
In other words, the IMF's dealings with Zimbabwe are still legally proscribed through the Zimbabwe Democracy and Economic Recovery Act of 2001 (S.494).
IMF lifts suspension of assistance to Zimbabwe
Written by Kingsley Kaswende in Harare, Zimbabwe
Thursday, May 07, 2009 3:48:35 PM
THE International Monetary Fund (IMF) has lifted the suspension of its technical assistance to Zimbabwe.
This decision was made by the IMF executive board on Monday after it reviewed the case of Zimbabwe based on a report from an IMF team that visited the country in March for Article IV consultations on the state of the economy and government policies.
Under Article IV, the IMF holds bilateral discussions with members, usually every year where an IMF team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. A report is then prepared, which forms the basis for discussion by the executive board.
According to a press release posted to the IMF website on Wednesday evening, the IMF will with immediate effect lift Zimbabwe's suspension from accessing technical assistance, although the subsequent assistance will only be in targeted areas.
"Effective from May 4, 2009, IMF technical assistance can be provided to Zimbabwe in the areas of (i) tax policy and administration; (ii) payments systems; (iii) lender-of-last-resort operations and banking supervision; and (iv) central banking governance and accounting," the statement reads.
It states that the IMF would review this decision at the time of the next review of Zimbabwe's overdue financial obligations to the Poverty Reduction and Growth Facility-Exogenous Shock Facility (PRGF-ESF) Trust, and at subsequent six-monthly reviews as long as Zimbabwe has overdue financial obligations to the PRGF-ESF Trust.
The IMF's decision comes on the back of a significant improvement in Zimbabwe's cooperation on economic policies to address its arrears problems and severe capacity constraints in the IMF's core areas of expertise that represent a major risk to the implementation of the government's macroeconomic stabilization program.
Zimbabwe has been in continuous arrears to the IMF since February 2001 and is the only case of protracted arrears to the PRGF-ESF Trust, which currently amount about US$133 million.
Because of these arrears, Zimbabwe had been suspended from accessing technical assistance; [Not true - see the excerpt from ZDERA listed above - MrK] had been removed from the list of PRGF-ESF-eligible countries; and had been declared a non-cooperation case since 2001.
In March, following the establishment of the inclusive government, an IMF mission led by Vitaliy Karamenko visited Zimbabwe to conduct Article IV consultation discussions.
Following that assessment, the IMF welcomed Zimbabwe's commitment to recovery under The Short-term Emergency Recovery Programme (STERP) along with the elimination of quasi-fiscal activities by the Reserve Bank of Zimbabwe (RBZ), and the implementation of cash budgeting in 2009.
"Making further progress in structural reforms is essential for reviving economic growth and reducing poverty. A number of positive steps that are in line with previous IMF recommendations have already been implemented, including price liberalization, the removal of surrender requirements and most exchange restrictions on current account transactions, the imposition of hard budget constraints on parastatal enterprises, and the elimination of the Grain Marketing Board monopoly. Going forward, strengthening the investment climate, ensuring protection of property rights, and maintaining wages at competitive levels will all be essential for increasing domestic and foreign investment," Karamenko noted in a statement.
At the Monday board meeting, the IMF directors welcomed the efforts by the recently formed government of national unity to seize the historic opportunity to improve prospects for economic growth and poverty reduction by forging the necessary political consensus among all stakeholders for ambitious reforms.
They considered that Zimbabwe was now at a critical juncture following a decade of high inflation, severe economic decline, and rising poverty has culminated in an acute, ongoing humanitarian crisis.
They welcomed STERP, which is based on sound principles of macroeconomic management.
They underscored that following through with the STERP's commitment to establish fiscal discipline, eliminate quasi-fiscal activities, maintain a multi-currency monetary framework, and accelerate structural reforms would be essential for an economic turnaround in a low-inflation environment. However, the directors cautioned that downside risks were significant.
"Potential political instability and limited implementation capacity may undermine reform and stabilization efforts, weakening the prospects for mobilizing donor financial support and attracting private capital inflows," they noted.
The directors underscored the importance of establishing fiscal discipline while ensuring the delivery of essential public services. They were encouraged by the government's intentions to improve tax administration and review the tax regime to increase budget revenues.
They emphasized that the budgeted wage bill needed to be maintained and spending pressures from parastatals to finance nonessential activities should be resisted to leave sufficient resources for critical social needs and infrastructure.
They also called for rapid progress in strengthening the public financial management system.
"Given the sizable unfilled financing gap and the necessity to cover critical humanitarian expenses, Directors encouraged the authorities to intensify their efforts to establish workable budget aid delivery mechanisms in close cooperation with the donor community. Directors noted that Zimbabwe is in debt distress and large financing gaps would persist over the medium term even if policies were improved," the IMF statement reads.
Given the circumstances, the IMF supported the Zimbabwe's decision to anchor inflation expectations by introducing a multi-currency system with the South African rand as the reference currency.
The directors also emphasized that a significant strengthening of governance and transparency, including through an independent audit, at the Reserve Bank of Zimbabwe was urgently needed to enhance the credibility and durability of recent macroeconomic policies.
They concurred that the reintroduction of the Zimbabwe dollar, which was suspended last month, should await the establishment of a credible institutional framework that would underpin central bank operations with a focus on price stability.
They also noted that banking system issues needed to be addressed to improve payment services and access to credit.
They underscored that the payments system, banking supervision, and liquidity management would need to be attuned to the requirements of the multi-currency monetary framework.
Labels: IMF, SANCTIONS, STERP, ZDERA, ZIMBABWE
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Who do they represent?
Written by Editor
It is clear that the greatest danger to the establishment of a free and plural media in this country lurks in the insidious encroachment by men and women of zeal, seemingly well-meaning but without understanding. If anyone had any doubt about what type of media council Sr Rose Nyondo and her friends are seeking, her statement to the parliamentary committee on information and broadcasting on Tuesday should leave them without any doubt that they are seeking a statutory regulation of the media and not self-regulation, as they claim.
Sr Nyondo, the chairperson of the Media Council of Zambia (MECOZ), made it very clear that they want to licence the practice of journalism in this country. They want to give themselves the powers to licence who covers elections in this country.
It seems they want MECOZ to have similar powers to that of the Law Association of Zambia, a statutory body.
We have serious difficulties with their approach because journalism is not just a profession. It is the exercise by occupation of the right to free expression available to every citizen. And that right, being available to all, cannot in principle be withdrawn from a few by any system of licensing or professional registration by Sr Nyondo and her friends, but can be restricted and confined by rules of law that apply to all who take or are afforded the opportunity to exercise the right by speaking or writing in public. There are today in Zambia a myriad of rules that impinge upon the right to present facts and opinions and pictures to the public.
The statutory controls that MECOZ is championing, albeit in a disguised form, would undermine the freedom of the press and would not be so successful in raising standards.
It is clear to us that MECOZ has joined forces with the enemies of press freedom, and especially of The Post. There is nothing in what the representatives of MECOZ say that in any way purports to be defending press freedom. What Sr Nyondo and her friends have done is to join hands with the worst elements in our politics and have a joint assault on press freedom in this country. And because they are working with the politicians who control the legislative processes in this country, they will achieve their goal of establishing a statutory media council directly or indirectly.
Theirs is really a strange media council – a licensing media council. They should just openly constitute themselves as one of the departments under the Ministry of Information and Broadcasting.
We are, and we will always be, for self-regulation. But our membership of any body that is involved in self-regulation will be on a voluntary basis, unless it is a statutory requirement for us to join it. We are not the makers of laws in this country, that is a preserve of our legislators. We are law-abiding citizens and we will respect any law that comes from our Parliament whether we agree with it or not.
And we will use all legal channels available to us to challenge such laws, whatever it takes. We will fight such laws in our courts of law under judicial review if they are in conflict with our country’s Constitution. And this crop of politicians will certainly not be the last one. New and probably better representatives will one day emerge among the ranks of our people to change things. We are revolutionaries who know how to fight for just causes without tiring. We have got patience and we know how to wait. We think we are defending certain principles that are of tremendous value at a time of confusion and opportunism in our country, a time when many people are feathering their own nests.
Sr Nyondo and her friends can have their day with the support of the most reactionary of our politicians, the most anti-press freedom elements in our politics and Parliament. This doesn’t mean it will be eternal – far from it, for the line they have taken, the things they are defending are beset by all kinds of contradictions. But this is the time we are in, and we think that, right now, the preservation of values is of decisive importance for us and for all progressives and true democrats in our country – all who want the best for our people and who cherish the noblest sentiments. Preserving those values is of unquestionable importance.
We have a proud record and reputation of fighting for press freedom the world over. Our enemies choke with envy over that. None of these characters masquerading as champions of so-called media ethics can match our record of fighting for and defending press freedom and everything that is right.
No matter what happens, other times will come. Right now, we are in the midst of a huge reactionary wave; later, a huge progressive wave, will come again. That is for certain. This is the reactionary high water mark; with or without us, another progressive wave will sweep our country and its media. And when we say “progressive”, we are referring to goals and purposes, not the form in which those ideas are propagated. Just as the reactionary ideas of MECOZ and the politicians who support them are strong in government and among some parliamentarians, the time will come when progressive, democratic, fair ideas will prevail – whether or not we are here. There is no doubt that there is an onslaught from all angles, including from MECOZ, on The Post. Therefore, even though we are a solitary newspaper, the very fact that we exist at all is of great value. If we defend this solitary newspaper with everything that we have, that will be of great value, too. If we stand firm, come what may, that will be of great value. If we win, as we unquestionably would because it would be impossible for MECOZ and the politicians who are supporting them to move this country backward politically, and more so in terms of press freedom, that would be of great value for the ideas, the principles and the cause that we are defending. Nobody can take that away from us – that’s in our own hands, no one else’s.
Therefore, we think that what we are doing is of great importance for the future of press freedom in this country, but it doesn’t make us believe that the future of press freedom in this country is entirely dependent on us. It gives us great encouragement to know that we are defending that future and that we are a symbol of that future and of those principles for a country filled with people who are hungry, suffering, marginalised and politically counting for nothing.
We have a clear, precise idea of our role, and all of those factors stimulate and encourage us in our work to promote and defend press freedom. That is the link between what we are doing and what we are ready to do, on the one hand, and the future, on the other.
And it will be of great help if Sr Nyondo and her friends could open their hearts and pay attention to the advice given by Gerald Mwale who says: “…only a fully free media can be fully responsible. Self-regulation and the promotion of quality journalism are among important safeguards of media freedom and even media power…media self-regulation must lie at the heart of the Media Council of Zambia if it is to win the confidence of both journalists and members of the public. The media needs to be convinced that subscribing to the Media Council of Zambia is for their own good.”
There is need for Sr Nyondo and her friends to learn something from the objectives, organisation and operations of the Australian Media Council. Very few journalists, including ourselves, would be opposed to a media council that is constituted and operates on similar lines as the Australian Media Council which seeks to ensure the freedom as well as the responsibility of the press.
As for us, we are not at all worried about the threats of a legislated media council. We don’t desire it. Only despotic and repressive regimes have such kind of arrangements. But if it comes, we are more than well-equipped intellectually and otherwise to deal with it. After all, anything legislated brings it in the realm of law - and we are lawyers. Moreover, what are they going to come up with in their legislated media council that is not already in our current laws without risking violating the Constitution that guarantees press freedom?
We know very well that although there has been so much talk about press freedom in this country, in practice it hasn’t worked very well. And the space that we have today, we had to forge it for ourselves – nobody gave it to us. And who doesn’t know the price we have had to pay to be what we are and to do what we are doing? We cannot therefore be worried by the machinations of some opportunists who have not produced, and do not produce, any meaningful media products but are going round masquerading as specialists in the media. The professional journalists, those practising journalism, are at the Times of Zambia, the Daily Mail, ZNBC and The Post. But what role are these playing in the Media Council of Zambia? Almost none. And if this is the case, what type of self-regulation is this? Who is trying to regulate them? Who constitutes MECOZ? Who do they represent?
Labels: MECOZ, PRESS FREEDOM, ROSE NYONDO
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MECOZ must return to drawing board – Mwale
Written by Katwishi Bwalya
Thursday, May 07, 2009 3:42:51 PM
THE media needs to be convinced that subscribing to MECOZ is for their own good, the department of mass communication at University of Zambia (UNZA) has said. And UPND Sinazongwe member of parliament Raphael Muyanda has said there is a lot of indecent usage of language by journalists.
Appearing before the parliamentary committee on information and broadcasting on Tuesday, one of the lecturers in the department Gerald Mwale said media self-regulation must lie at the heart of the Media Ethics Council of Zambia (MECOZ) if it was to win the confidence of both journalists and members of the public.
Mwale said the benefits of self-regulation could not be doubted as they hinged on ethics and responsibility.
He noted that MECOZ needed to return to the drawing board and re-work its outreach strategy to win the confidence of society.
"The media needs to be convinced that subscribing to MECOZ is for their own good and they should volunteer to work within a set of rules agreed upon by themselves to promote and protect press freedom by operating under a mutually agreed code of ethics and the rules of natural justice," he said.
Mwale said the new MECOZ constitution, which was being scrutinised, would address the weaknesses in the old document and ensure that desires of members were taken into consideration.
He said MECOZ must support journalists who wished to unite their efforts to raise professional standards and thus strengthen the social standing of journalism.
He said the cooperation between journalists in the field of ethics was also great training ground for their cooperation in demanding their legitimate rights from government.
"...Only a fully free media can be fully responsible. Self-regulation and the promotion of quality journalism are among important safeguards of media freedom and even media power," Mwale said.
MECOZ chairperson Sr Rose Nyondo said the council would soon develop a subscription and accreditation committees for journalists in the country.
Sr Nyondo said the committees would have a strong training programme for journalists.
"What MECOZ is planning to do now is that they want to develop different committees which are not really in operation due to financial problems. We want to have a strong committee on training," Sr Nyondo said.
"One of the issues which...we want to address is that every journalist who covers an election must cover it the way we cover a football match and if you cover a football match where you are always giving yellow cards to one team, the spectators in the football match are going to call it foul because they would know that you are being biased. If you are covering a football match where only one team gets a red card and only one team gets a yellow card then everybody in the football stadium will know that you are a biased reporter.
"So we want to train our journalists in such a way that they are aware that in a football match there are those who are siding with one team and the others are siding with another team and both spectators want to have a fair coverage of the match."
She said the journalists would be accredited according to the ethics and regulations of MECOZ.
"We also want to have a committee on subscription and accreditation that the journalists who are going to be accredited to cover in the Zambian elections or Zambian government are accredited according to ethics and regulations of the body. We also want to build up other committees that are going to help journalists to build up their muscle into their training as well as reporting," Sr. Nyondo told the committee chaired by MMD Chisamba member of parliament Moses Muteteka
Sr Nyondo said more attention would be paid to community-based journalists.
"We want to pay special attention to community media because a lot of media personnel have no training at all and we want to give them training so that they are able to cover their training in a proper manner so that democracy can take its root in their own communities. They should be proper participation of the Zambian public in their community media and proper participation of the journalists in that community," Sr Nyondo said.
And committee member Muyanda wondered why the School of Mass Communications at UNZA had done nothing over the use of abusive language by some media organisations.
"In the interest of national development, has mass communication at UNZA the training ground of most of the journalists made an effort to restrain some of the most unprofessional method of reporting, calling an innocent or defenceless person ‘idiot’, stupid’? Has the University of Zambia come out and say look we cannot accept this type of language and that it is not in the interest of development?" Muyanda asked.
"Even a person who has committed murder in court, the judge will not go to extremes of using abusive language. The man is facing a trial, the judge will be polite enough in sending that person to the gallows. Of late we have seen unprecedented insults; some of us come from the days of the Times of Zambia newspaper, a proper newspaper. What are you doing about it so that this type of language, indecent language that is being used by the pressmen today be contained in the interest of national development? May I have a bit of submission so that we can come up with a recommendation to the government in the interest of national development."
In response, Mwale said as individuals in the department they were not happy with the language that was being used.
"We have debated some of the language that has been used in the media and we have generally not been happy, also as individuals and not as a department. There has been some expression of concern and this is something that we need to look at in future and see how we can address it," Mwale said.
Another lecturer, Dr Isaac Phiri said graduates from UNZA conducted themselves in a professional manner.
"Our biggest influence is in class. Once they [journalists] leave class and how they behave and conduct themselves becomes very difficult to influence. And secondly, not all practicing journalists pass through our hands so there are a lot of mushrooming journalism programmes in the country that are not regulated and are not even certified, so we don't know what kind of training they give," Dr Phiri said.
"We know that our students we drill them in ethics, we drill them through the use of language, we drill them through law. We put them through a rigorous four-year programme, so hopefully our students do not participate excessively in that kind of reporting. But at the same time we are not in total control of the whole media industry.
"There are also academic debates about what is wrong and what is right. We are always debating what is the right word to use and so on and as far as we know we teach them the law, ethics, we teach them what is wrong and right and our graduates conduct themselves professionally."
And Muteteka asked if the department of mass communication was impressed with the ethical and professional performances of journalists.
Muyanda told the department of mass communications to realise that they were not just producing journalists but manpower, which would soon be running the country
"What efforts are you making as the mass communications [department] at UNZA so that the communications industry, newspaper industry, radio they should come to a point where self-regulations system is brought to fruition, it comes to reality so that journalists can have forum where they can debate, bring colleagues that misdirect themselves or misconduct themselves to the practical point of discipline, for example. May I know how or why has UNZA not taken this initiative because at the end of the day it is national development. You are not just producing graduates, you are also producing manpower that is going to run this country one day," Muyanda asked.
In response, Sr Nyondo said, "We have held seminars but what we have not done is to call for a forum where we can have an open debate where different newspapers, different media houses are invited for this fora. It is a challenge which I feel as a department we need to accept but we can look into that."
Labels: GERALD MWALE, MECOZ, RAPHAEL MUYANDA
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Rupiah wanted a cut from $53m deal - HH
Written by George Chellah and Chibaula Silwamba
Thursday, May 07, 2009 3:29:10 PM
UPND leader Hakainde Hichilema yesterday described the US$ 53 million mobile hospitals deal as a white-collar crime in which President Rupiah Banda and the MMD want to get a commission.
And Federation of Free Trade Unions of Zambia (FFTUZ) president Joyce Nonde-Simukoko questioned the sincerity of the Chinese government when it distanced itself from the mobile hospitals deal when in fact, the company involved is owned by the Chinese government.
Reacting to the visiting Chinese government special representative on African Affairs Ambassador Liu Guijin's statement that his government did not play any role in the mobile hospital deal, Hichilema urged the nation to squarely put the blame on the Zambian government and President Banda in particular.
"In the story today, the Chinese are saying no, it is not them who should decide for Zambia. It is the Zambian leaders that should decide. And this is still what it should be because the responsibility to make decisions on Zambia's development is on the Zambian government," Hichilema said.
"The only difference with the present government is that they are a selfish government and the party that is in office is completely tired and has stopped looking after the interests of the people of Zambia. Other than their own interests... we know that they want to buy these mobile hospitals so that they raise money for the 2011 elections and commissions as usual."
Asked whether he implied that someone in government wanted to get a commission from the deal, Hichilema responded: "Absolutely, there is no question about that."
When asked who that person could be, Hichilema laughed before answering: "The government, the MMD and its President. The MMD and its President wanted to get a commission and we should not allow them to get commission by acquiring debt, which every Zambian will have to pay in future. And they get the commission for their personal agendas as well as the political agendas."
He said the mobile hospital deal was a corrupt transaction.
"We said this the last time that, that's what this mobile hospital deal is all about... it's not about the sick Zambian in Shang'ombo or Kaputa. It is about the MMD and its leadership raising money for elections with some of the money going to personal pockets. This is what is called white-collar crime. This is definitely white-collar crime, corruption of the highest order," he said.
Hichilema said Zambians must now realise where the problem lies in the planned procurement of mobile hospitals.
"I think the problem is not in the Chinese because the Chinese cannot make decisions for Zambia. It is Zambians who should make decisions for themselves. Now we have the wrong Zambians in the name of the leadership of the MMD who are making bad decisions on their behalf. Acquiring debt, you know they are increasing our debt stock. We just had a HIPC qualification, which was so painful to the people of Zambia," Hichilema said.
"Now we have a situation where people are acquiring debt for the nation for personal gains, that's unacceptable. How are we going to fight corruption if corruption is in the highest office in the land? This is what we reminded the people of Zambia just a few months ago during the campaigns that this leadership is corrupt, this MMD is corrupt and we must take it out if we have to see a future in Zambia.
"Look at now the mining jobs that have been lost. There is no strong leadership in the Rupiah Banda leadership. It's a tired leadership, there is no question about that. One doesn't have to be too clever to see. You have to have just common sense to see that this leadership is not strong, this leadership is corrupt and this leadership is tired.
"I ask all Zambians to come together. We must unite to take out the MMD government come 2011. In fact, it's so painful... how we shall survive up to 2011, only God knows under this corrupt leadership that is concerned about itself only."
He said President Banda must apologise to the nation. Hichilema insisted that President Banda speaks highly of things that are meant to benefit him, his party and his family.
"You know, the problem we have with this President, he praises and tries to advance causes that are meant to reward him personally. And when these things are against the wishes of the Zambian people, he tries to use presidency to force his way through. He did that on Dora Siliya and Zamtel, when he was telling us that Dora was smarter than all of us. You know, I keep on laughing about it that Dora is smarter than all of us. I really don't understand," laughed Hichilema. "I will never understand but because he was blinded by his personal greed and his desire to earn a commission on the RP Capital Partners contract. So he talked before he realised whether Zambians where in agreement or not. Now he says mobile hospitals are a damn good thing. What does he mean by that? A damn good thing for Rupiah and company? It is not a damn good thing, that's a terrible thing for Zambia."
Hichilema said President Banda had been caught in his own lies.
"He is behaving like a little partridge. Let me explain it this way, if you plant your maize, as it is germinating the seed is soft and it's now appetising to the partridge and the partridge goes in the field and the owner of the field scares it away. The partridge thinks it's extremely clever and runs in a direction where it thinks the thicket is and it runs straight in a trap and it gets caught," Hichilema explained whilst suppressing laughter.
"Now when it gets caught, it can never deny that it was eating the maize because when you kill it and you open its bowels you will find that there is maize. I’m simply saying he is caught once more in his web of deceit and personal interest. On a serious note, we cannot have a leadership like this. I am not too sure how long Zambians can tolerate this. I can tell you, the only reason why those things were coming was for a corrupt commission, number two to use them for the campaigns. Please write it just as strong as I have put it don't feel sorry for me."
And Nonde-Simukoko challenged the Chinese government to tell the truth because it was clear that CATIC was a state-owned company.
"We have looked at the website www.catic.com.cn/en and we are shocked that the Chinese government representatives are distancing their government from the US $53 million mobile hospital deal when in fact the official website of China National Aero-Technology Import and Export Corporation (CATIC), the company involved in this deal, confirms that it is a large scale state-owned conglomerate," Nonde-Simukoko said.
According to the official website, CATIC is a state-owned company headquartered in Beijing, China.
"China National Aero-Technology Import & Export Corporation (CATIC), was established in 1979, is owned by Aviation Industry Corporation of China. It is a large scale state-owned conglomerate with aviation products & technology import and export as its core business. Headquartered in Beijing," states CATIC.
Nonde-Simukoko challenged the government to quickly issue a comprehensive statement on the US$ 53 million deal.
"We have a right to get correct information as Zambians on the issue and as such, we expect the [Zambian] government to give a full report on what this is all about so that we can make an informed decision because just to have mobile hospitals, we feel as a union, that it will be more costly than having a permanent structure in a district. Short term it's expensive but long term it's cheap," Nonde-Simukoko said.
"These mobile hospitals; (1) it's not guaranteed that it can provide good services. Look at our road infrastructure; it's not even possible that this mobile hospital can reach the patient at the right time. (2) These mobile hospitals will be highly abused and in the end, we don't even have the control mechanism to ensure that actually this is a mobile hospital. The road infrastructure is nothing to discuss. What about the repairs because of the poor road network? The cost will be too high for the government to contain."
She said the government must have a budget for constructing hospitals in each district and start working on that.
"We must build good structures at provincial level and then move to the district level and then we go down to the chiefdom level. Honestly that should be the priority and we don't want to be quarrelling on things that we should not be quarrelling on," said Nonde-Simukoko. "Whether the Chinese government is involved or not for FFTUZ it's not an issue, it's just not a good decision at all and it will not help the people."
On Monday, visiting Chinese government special representative on African affairs Ambassador Liu Guijin said the Chinese government did not play any role in the US$53 million mobile hospitals deal.
But according to a letter dated April 28, 2009 and addressed to Department for International Development (DFID), health permanent secretary Dr Velepi Mtonga stated that President Banda indicated during the official opening of the National Assembly that the government would procure mobile clinics from a friendly country to complement efforts to construct 15 hospitals in the 19 districts that did not currently have any.
And last Sunday, President Rupiah Banda said the concept of mobile hospitals was a "damn good idea" from the Chinese.
Labels: CORRUPTION, HAKAINDE HICHILEMA, HEALTHCARE, INTERNET, JOYCE NONDE, RUPIAH BANDA
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Chihana challenges Rupiah to clear his name
Written by George Chellah
Thursday, May 07, 2009 3:27:28 PM
INTERNATIONAL Fellowship of Christian Churches (IFCC) president Bishop Simon Chihana yesterday challenged President Rupiah Banda to clear his name in the scandals that have already cost some people jobs. And Bishop Chihana wondered where the country was heading in light of the scandals that are emerging.
Bishop Chihana stated that the Church was wondering how a man like former Zambia National Tender Board (ZNTB) director David Kapitolo, who served faithfully under the leadership of the late president Levy Mwanawasa was fired for defending the procedure of procurement.
"We are also wondering how the Vice-President strongly defended Dora Siliya before the nation and yet, the Vice-President himself a highly learned man, whom I have personally admired in the course of years of practice as a brilliant lawyer, could not stand his ground. This to us indicated that His Excellency the President was fully aware and possibly behind the procurement saga," Bishop Chihana stated.
"The leadership of the President is at stake because of the conduct that seems not to be pleasing to the citizens. Our President must be above accusations of dishonesty and moral blame. We want to see him performing his duties beyond any gross negligence and reports of misconduct. Our President must clear his name in all these accusations and allegations so as to rebuild confidence in the electorate, failure to which he will be perceived as a possible candidate of impeachment."
Bishop Chihana stated that the current situation in the country was too serious to be ignored.
"Our country is facing the challenge of morality and integrity in the current government of Mr Rupiah Banda. The situation is very grave to be ignored by any leader, be it in church, political world, private and public sectors or even civil society," Bishop Chihana stated. "What other people are speaking out...proposing an impeachment for the Republican President is because it's just too much that it cannot keep silent in the midst of a moral battle.
"We are wondering as a church as to where we are heading to as a country with all these scandals emerging in the leadership of Mr Banda who has only been in the office for a very short time."
He stated that Dr Kaunda and president Mwanawasa maintained discipline in their administrations.
"The current President has served and must have learnt a lesson or two from these honourable statesmen of Africa. After the late Mwanawasa, the Zambian people's hopes were that whoever was going to take over should be equaled to him or much better in taking the nation forward than backwards to untold sufferings due to early mismanagement and misconduct of our leaders. Maybe this is why our Catholic brothers like [Ndola Diocese] Bishop [Noel] O’Regan are calling for change in the leadership of the nation," stated Bishop Chihana.
Labels: DAVID KAPITOLO, PROCUREMENT SYSTEMS, RUPIAH BANDA, SIMON CHIHANA
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FRA to announce maize floor price
Written by Nchima Nchito Jr
Thursday, May 07, 2009 3:25:30 PM
ZAMBIA National Farmers Union (ZNFU) has recommended a maize floor price of not less than K85000 per 50 kilogramme bag this marketing season. The Food Reserve Agency (FRA), through the Minister of Agriculture and Co-operatives, is today expected to announce this year’s floor price of maize.
According to a statement, ZNFU indicated that a consultative meeting was held with the FRA and other stakeholders to discuss the floor price of maize for this marketing season.
“The ZNFU, together with other stakeholders met with FRA on Wednesday April 22, 2009 to discuss the parameters to be used in determining this year’s FRA floor price,” read the statement in part. “The Union is of the opinion that the price of maize should not be less than K85,000 per 50 kilogramme bag, while others are indicating the price as low as K55,000 per 50 kilogramme bag.”
ZNFU appealed to all stakeholders to submit comments on floor prices of maize to the union.
The government last year set the floor price of maize at K50,000 per 50 kilogramme bag. But farmers now contend that production costs had gone up during the last farming season, and that a good price for the crops was therefore expected.
And when reached for a comment, agriculture minister Dr Brian Chituwo said a final decision would be communicated by the FRA later in the week.
Labels: FRA, MAIZE, PRICING, ZNFU
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Ghana says in talks for at least $1 billion IMF support
Written by Kwasi Kpodo
Thursday, May 07, 2009 3:23:53 PM
ACCRA (Reuters) - Ghana is in talks with the International Monetary Fund to secure a total of at least $1 billion of support to prop up its foreign exchange reserves, the Finance Ministry said on Thursday.
The West African country, the world's second biggest cocoa grower, is grappling with a swelling budget deficit and trade imbalances after the cost of food and fuel imports surged to record highs last year. Its woes have unsettled some investors holding its debut Eurobond.
"We discussed program options, which are essentially the standby arrangement or Poverty Reduction and Growth Facility (PRGF)," the Finance Ministry said in a written statement provided to Reuters, adding that a further round of talks were due next week.
It said the PRGF had an advantage of concessional funding, at a fixed 0.5 percent interest rate payable over 10 years, as opposed to a market-based interest rate on the stand-by which also has a shorter repayment period of less than 5 years.
Ghana expects to receive $420 million in the third quarter of this year as part of an IMF commitment at the Group of 20 summit in London to increase its allocations of special drawing rights (SDRs) to member countries, the ministry said.
The SDR is an international reserves asset, created by the IMF to supplement the existing official reserves of its members.
The fund also agreed to support for Ghana's balance of payments gap, the ministry added.
"Preliminary indications are that the Fund's support could be in the order of around $600 million over a two-three-year period, which together with the additional special drawing rights allocation, would boost Ghana's gross foreign exchange reserves by around $1 billion," it predicted.
Ghana is grappling with a weakening national currency and inflation, currently at a five-year high and quickening.
It is also suffering from the impact of lower remittances sent home by workers abroad as the global economic crisis bites.
"Ghana desperately needs such assistance programs to be able to achieve any meaningful turnaround of the economy. ... Of course, it should be backed by prudent management," Ishac Diwan, the World Bank representative in Ghana, told Reuters separately.
Ghana's budget deficit stands at a provisional 14.9 percent of gross domestic product in 2008 -- a gap the new government of President John Atta Mills plans to narrow to 9.4 percent of GDP by the end of 2009.
Labels: ACCRA, GHANA, IMF, PRGF
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South African parliament elects Zuma president
Written by Wendell Roelf
Thursday, May 07, 2009 3:22:34 PM
CAPE TOWN (Reuters) - South Africa's parliament chose Jacob Zuma as president on Wednesday and he immediately set boosting the economy and creating jobs as priorities. Zuma's election caps a political comeback after an eight-year corruption case nearly ruined him.
Aside from fighting poverty, crime and AIDS, Zuma faces the task of guiding Africa's biggest economy, which may already be in recession, through the global financial crisis.
Zuma moved quickly to reassure foreign investors who will be watching to see if the ANC leader will steer the economy to the left, despite his assurances of policy continuity.
But he also sought to comfort trade union allies who helped him become president and may want payback in the form of more government spending.
"We must move quickly to implement the framework agreed by the government, business and labour to protect jobs and boost the economy," Zuma said.
The charismatic former guerrilla, whose graft charges were dropped just before the April 22 poll, will be inaugurated on Saturday and will name a cabinet on Sunday at 1200 GMT.
Zuma has denied any wrongdoing and said he is the victim of a political conspiracy.
The new government is expected to keep conservative monetary and fiscal policies to cushion the impact of the global crisis.
The fate of respected Finance Minister Trevor Manuel will be closely monitored by markets who view him highly and have praised his management of the economy.
"I intend to have my cabinet assume office by the 11th of May so that we can get down to business," Zuma said.
"I should be able to produce a team that will work very hard and with the necessary speed. We mean business when we talk about faster change."
A spokesman for Zuma said there will be no surprises in the cabinet.
"The president won't do anything reckless that seeks to undermine the standing and the rating that this country has had for the past 15 years," spokesman Zizi Kodwa said.
Zuma, who portrays himself as a man of the people, may help the ANC avoid further splits after his rivalry with former President Thabo Mbeki, who the party pushed out of office.
Zuma has said he will consult widely with other ANC leaders before making any major policy decisions, an approach that may ease opposition fears that the party will not tolerate dissent and hurt South Africa's democratic credentials.
"One of the strengths of president-elect Zuma is that he connects with people," Mamphela Ramphele, an anti-apartheid activist and prominent South African businesswoman, told Reuters.
"I am also encouraged by him surrounding himself by people who are saying the right things."
Critics say South Africa is effectively a one-party state because of the ANC's dominance since the end of apartheid in 1994. The party is still widely respected for its struggle against white-minority rule so voters in the election overlooked its policy failures.
But it will come under mounting pressure to deliver on 15 years of promises to help millions of blacks still living in grim townships, who are a key part of the ANC's support base.
Labels: JACOB ZUMA, PRESIDENCY
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Demos over job losses are causing political anarchy, says Mpombo
Written by Katwishi Bwalya
Thursday, May 07, 2009 3:19:38 PM
DEFENCE minister George Mpombo has accused people demonstrating over loss of jobs by miners on the Copperbelt of causing political anarchy in the country. And Mpombo has asked people criticising President Rupiah Banda to give him a break.
In an interview, Mpombo said it was unfortunate that some members of parliament who were supposed to be explaining the effects of the global crisis to the people were in the forefront inciting people to demonstrate against the government.
"They are just creating political anarchy. It amounts to leadership being made simple if you have leaders who do not understand the global crisis and leaders who are wallowing in ignorance, it is very bad," Mpombo said.
"Leadership has to be honest and tell people this is the situation. Now once we paint a picture that the Copperbelt is volatile, how do you attract investors in a struggling industry? The same people who are causing these confusions are on a salary and they don't feel the pinch at all. We were recently in DRC where people have lost 300 jobs. We could see the economic slump but have you heard that people in Lubumbashi are demonstrating?
"That kind of attitude shows the narrowness of our political perception in understanding of these economic factors because surely, if you know this is the situation, how do you tell people to demonstrate? How do you accuse government of moving in a sluggish manner? This is unfortunate, but I think we need to provide leadership for us in the opposition because trying to gain advantage of something which is of a global dimension is sending a wrong message."
Mpombo said leaders in the opposition should be able to tell their members on the effects the global crisis.
He said it was unfair that the President was being criticised for things he was not even responsible for.
"Why is everybody waking up saying Rupiah Banda has done that? I think it is very unfair to drag the President's name into smear campaign over issues that he is not even personally responsible for," Mpombo said. "There are lot of issues that we need to concentrate on and not just throwing political grenades at the President all the time. The amounts of attacks that are dished out on him, accusing him of all sorts of things, it is not right to subject the President to this kind of carousing hatred. The tendency of putting him in constant negative limelight I don't think that is helpful. Why don't people give him a break?"
He said there was a tendency by Zambians to do things which could be described as political utopia.
"So, democracy is it about constantly fighting government structures because this is a negative development. If you have a political culture full of insults, I don't think you are singing the best message. Even the people that are independent they get so disappointed that Zambians should behave in this way," said Mpombo.
"The President has a mandate from the Zambian people and therefore that mandate should not be subjected to these political convulsions we are seeing."
Labels: DEMONSTRATION, GEORGE MPOMBO
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Rupiah to attend Zuma's inauguration
Written by Masuzyo Chakwe
Thursday, May 07, 2009 3:18:09 PM
PRESIDENT Rupiah Banda is on Friday scheduled to leave for South Africa to attend the inauguration of South Africa's President-elect Jacob Zuma.
In a statement issued by special assistant to the President for press and public relations Dickson Jere, President Banda was invited by the South African government to be among several other African heads of state and government at a ceremony to be held tomorrow in Pretoria.
Jere stated that President Banda would be accompanied by first lady Thandiwe and foreign affairs minister Kabinga Pande.
Jere stated that President Banda was scheduled to return to Lusaka on Sunday.
Labels: DICKSON JERE, JACOB ZUMA, RUPIAH BANDA
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KCM to process Lumwana copper concentrates
Written by Kabanda Chulu
Thursday, May 07, 2009 3:17:02 PM
LUMWANA Mining Company (LMC), a subsidiary of Equinox Minerals Limited, has signed a five-year off-take agreement with Konkola Copper Mines (KCM) for the processing of Lumwana copper concentrates.
This agreement comes after Mopani Copper Mines at Mufulira smelter refused to treat Lumwana copper concentrates, claiming that it was not within contract specifications.
Announcing the development yesterday, Equinox Minerals president Craig Williams stated that the agreement would entail annual processing of quantities between 70,000 and 80,000 dry metric tonnes of concentrates from the Lumwana copper mine with an option by mutual agreement for additional annual quantities of Lumwana copper concentrates under the same terms as the agreement.
Williams stated that copper treatment and refining charges under the agreement would be determined annually based on Japanese Smelter Benchmark terms.
"This new long term off-take agreement with KCM supplements the Lumwana's existing long term off-take agreement with Chambishi Copper Smelter Limited and together will account for a large majority of Lumwana’s budgeted production," stated Williams. "Outside of these agreements, LMC continues to make deliveries of concentrates to international metal traders under short term contracts providing Equinox with concentrate off-take flexibility."
KCM is majority owned by Vedanta Resources Plc, a London listed metals and mining company. The mine recently installed and commissioned the new Nchanga modern smelter with output capacity of 300,000 tonnes per annum of copper anode and 1,850 tonnes per day of sulphuric acid.
KCM also operates the Nchanga and Konkola copper mines, the Nkana Refinery and is developing the Konkola Deep copper mine.
Labels: COPPER, KCM, LUMWANA MINING COMPANY
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Qatar, Cuba in $75m hotel project
Written by Larry Moonze in Havana, Cuba
Thursday, May 07, 2009 3:15:52 PM
QATAR has entered into a US $75 million exclusive 5-star hotel resort joint project with Cuba and described the investment a clear message that Doha stands by Cuba.
Signing the joint-venture project between Qatari Resorts Company and Cuba's Gran Antilla SA on Wednesday at Havana's Hotel Nacional, Qatari Diar Real Estate Investment Company chief executive officer Ghanim Bin Saad al-Saad said at the height of the global economic meltdown Cuba provided a suitable economic base.
Bin Saad Al-Saad said Qatari Diar was a vehicle for economic expansion and a diplomatic tool for the state of Qatar.
He said Qatar was comfortable with Cuba's foreign policy and investment regime.
"As an investment and development company we have quickly become one of the key real estate players in the world," he said. "We have announced and have begun work on projects at home and around the world, including Lusail in Doha. Lusail is the largest development project ever undertaken in Qatar, and will be one of the largest developments in the entire region, covering over 35 square kilometers and accommodating up to 200,000 people."
Bin Saad Al-Saad said the Qatar-Cuba project was constituted as a joint-venture company called Gran Paraiso to develop and manage the project.
Qatari Diar, through its affiliate Qatari Resorts Company, and Gran Caribe SA (wholly owned by the Cuban Ministry of Tourism) through its affiliate Gran Antilla SA would undertake to develop the resort on a 28.59 hectares parcel of land in Cayo Largo del Sur, a resort island that is approximately 30 minutes flight from Havana, Cuba.
The new luxury resort hotel and spa would consist of up to 450-bedroom hotel with world-class amenities, including a spa and fitness centre and conference facilities. The second phase of development would include 60 deluxe villas designed to meet the standards of the world's most discerning travelers. The development will be complimented by retail facilities and is scheduled to open in 2012.
Bin Saad Al-Saad said the project took two years of negotiations and that now Cuba and Qatar were ready for more joint ventures in various strategic industries particularly in agriculture.
"I am proud to be here today not only as the CEO of Qatari Diar, but also as a representative of the State of Qatar. Under the guidance, will and support of His Highness the Emir Sheikh Hamad bin Khalifa Al Thani and His Excellency the Prime Minister and Minister of Foreign Affairs Sheikh Hamad bin Jassem bin Jabor Al Thani, this development reflects more than a business deal, but signifies a genuine friendship between our two countries," he said. "In the midst of this severe economic crisis, Cuba turns out to be an important destiny of our investment. Cuba has an important economic base."
Bin Saad Al-Saad said Cuba was one such country that was open to everyone.
He said Cuba had a lot of investment opportunities and that Qatar was seriously looking at other sectors of cooperation.
"We believe that in undertaking this project we are sending a clear message to the world that Qatar is behind Cuba," Bin Saad Al-Saad said.
He said the Cayo Largo del Sur project represented the vision and goals of Qatari Diar which was to invest in long term sustainable development that stayed "true to the local culture and to enhance the friendship and governmental ties between the two countries".
"This is truly a flagship development for Qatari Diar and one that I believe will help set a new standard for the Republic of Cuba, a nation known for its great natural beauty and distinct Caribbean spirit," said Bin Saad Al-Saad. " The project will create a dynamic new force for economic growth and it will set a new standard of luxury in the Caribbean, introducing Cuba to a new generation of tourists."
Gran Antill SA director Jose Joaquin Alvarez Portela said the Cuban tourism sector was developing for all markets.
He said Cuba would not close any door to anyone.
Alvarez said the Qatari-Cuba project was the first joint-venture with an Arab country.
He said considering that it was being undertaken in the midst of financial and economic downturn, the project was for mutual benefit.
Alvarez said the two parties would ensure high standards were met and fulfilled within schedule.
Gran Caribe group is one of the leading hotel operators in Cuba with 47 hotels strategically positioned in the most important locations.
Qatari Diar - Real Estate Investment Company was established in December 2004 to support Qatar's growing economy and to coordinate the country's real estate development priorities.
Labels: CUBA, QATAR, TOURISM
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DR Congo urges enhanced security ties with Zambia
Written by Abigail Chaponda in Ndola
Thursday, May 07, 2009 3:13:46 PM
CONGOLESE provincial interior and cultural affairs minister Jean Marie Dikanga Kazadi has said it is important for Zambia and Congo DR to have security sub-committee meetings often to enhance security between the two countries.
Kazadi, prior to a security sub-committee meeting at Cabinet office in Ndola yesterday, said it was vital for the two countries to exchange ideas on common points.
"We are happy to be here and I am sure that what we are going to discuss is going to strengthen relations between our countries. We are happy that the Copperbelt minister Mwansa Mbulakulima and Katanga Province governor Moses Katumbi had cemented relations between our countries which showed that we were one family," Kazadi said. "We are brothers and if we have issues, we should be able to dialogue. And we should be able to meet often so that we can discuss common interests. We assure you permanent secretary that we are ready for any meeting that you are going to call, just invite us."
And Copperbelt Province permanent secretary Villie Lombanya said Kazadi's presence was an indication that Zambian and DRC were close members of the same family.
"I hope that the few issues that we are going to discus will be in a brotherly manner. Let us discuss the issues in a spirit of brotherhood so that we can show that we love each other," said Lombanya. "I also want thank the Congolese government for the way they handled the maize issue. Thank you for the efforts you made in resolving the issue. There should be dialogue between our countries; it helps a lot."
Labels: DRC, SECURITY, VILLIE LOMBANYA
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COMMENT - Joyce Nonde for Finance Minister. She has my vote. :)
“Investors believe they are safer engaging casual labour as pensionable jobs may prove costly when the businesses no longer remain profitable and many parastatal companies are failing to restructure operations due to the huge compensation packages associated with downsising,” said Kanyama.
It is time the Zambian government became serious about governing. Pensions should be universal, and have nothing to do with employment - and the way to do that is to let all companies pay their pension to the state - through taxes. There are few enough old people around, so that is more than economically feasible.
FFTUZ condemns Kanyama on laws to impress investors
Written by Kabanda Chulu
Wednesday, May 06, 2009 3:06:11 PM
THE Federation of Free Trade Unions in Zambia (FFTUZ) yesterday condemned Lusaka economist Chibamba Kanyama for calling for laws that will impress investors.
On Monday,
Kanyama said the government should urgently revise the Act governing redundancy packages to reflect investor challenges.
But FFTUZ president
Joyce Nonde-Simukoko said in Lusaka that it was shocking and annoying to see Kanyama thinking along those lines.
“Our members are annoyed and shocked and Zambia should not be compared to other economies that are doing well since workers already are getting low packages and they have no opportunity to enhance their livelihoods under the current pensions Act,î Nonde-Simukoko said. ìIt is shocking to see our brother (Kanyama) thinking in those lines by calling for laws that will impress greedy investors.”
She said pension schemes and redundancy packages had been abused and even those who got benefits were thrown into abject poverty.
“Any redundancy package in this country has been abused even at Presidential level this is why the benefits are pegged at the incumbentís (sitting President) salary and conditions of service because these issues have been abused in Zambia and why are we enemies of ourselves by calling for laws to impress investors who are involved in capital flight and even when the environment is good and incentives given, they do not employ people on full-time,” Nonde-Simukoko said.
“So the issue of the economic crisis does not arise because investors are greedy and exploitative in nature, for example, when copper prices reached higher levels, they never considered Zambians as full time workers.”
She said the failure by mining companies to pay good redundancy packages was corporate greed and fraud that should not be allowed to continue.
“Investors are businessmen with a motive for profit, hence looking for loopholes like what our brother is proposing, these investors are greedy and are involved in corporate fraud, for instance, if there is no money to pay workers why are they spending so much to appease politicians by making donations at the expense of hard-working employees?” asked Nonde-Simukoko.
In his weekly commentary, Kanyama said the current redundancy packages Act had many challenges and had rendered the country uncompetitive for investments in the region.
He said many companies preferred to hire casual workers even when they had the capacity to engage pensionable jobs due to the high level of uncertainty in the investment climate.
“Investors believe they are safer engaging casual labour as pensionable jobs may prove costly when the businesses no longer remain profitable and many parastatal companies are failing to restructure operations due to the huge compensation packages associated with downsising,” said Kanyama.
Labels: CHIBAMBA KANYAMA, FFTUZ, JOYCE NONDE
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ZNFU wants K85000 per 50kg bag of maize
Written by Nchima Nchito Jr
Wednesday, May 06, 2009 3:04:38 PM
ZAMBIA National Farmers Union (ZNFU) is recommending a floor price of not less than K85000/ 50kg bag of maize for this farming season. According to a statement by ZNFU, a consultative meeting was held with Food Reserve Agency (FRA) and other stake holders to discuss floor prices.
“The ZNFU, together with other stakeholders met with FRA on Wednesday 22nd April 2009 to discuss the parameters to be used in determining this years’ FRA floor price,” read the statement “The Union is of the opinion that the price of maize should not be less than K85,000/50kg, while others are indicating the price as low as K55, 000/50kg bag.”
ZNFU appealed to all stakeholders to submit comments on floor prices to the organization.
And when minister of agriculture Dr Brian Chituwo was reached for comment, he said none would be forthcoming because FRA had already approached his ministry for consultations and a final decision would be communicated by FRA later in the week.
Labels: BRIAN CHITUWO, FRA, MAIZE, ZNFU
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Masebo requests Chongwe residents to find land for depot
Written by Moses Kuwema
Wednesday, May 06, 2009 2:54:05 PM
CHONGWE member of parliament Sylvia Masebo has urged people in her constituency to start identifying land for a depot where buyers can easily access their agricultural products.
During a tour of the World Vision-funded projects in Kabeleka area on Monday, Masebo said this will also enable the villagers to avoid walking long distances in search of markets for their produce.
“Millers will be coming here and they should find the depot where they will buy maize from so that you don’t have to go anywhere,” Masebo said.
She said the availability of depots in the area would also result in villagers not falling prey to briefcase businessmen.
“Chongwe is an agriculture area...people here were born agriculturists, there is development in Kabeleka and that’s how Soliland used to be, so once you have these depots, briefcase businessmen will not easily exploit you,” Masebo said.
“I am aware that the feeder roads in the area are in a bad state and now we are going into the marketing season, that is why a grader has been allocated to our district and this will make it easy for the roads to be graded soon.”
Masebo also said she was happy that women in her constituency were in the forefront in fostering development.
“I am happy that women are the ones managing the hammer mill which is part of the World Vision projects and it is good that men of Kabeleka are gender-sensitive and so as a woman MP, next time you have a problem, I will come in,” Masebo said.
She thanked the government and World Vision Zambia for the various projects that had been brought to her constituency.
“I want to thank you the men here for allowing the women to be involved in various projects,” Masebo said.
During the same tour, Masebo also donated K 1.7 million for electricity at the market in Kabeleka area.
Among the projects Masebo toured included Kabeleka middle basic school, the rural health post and poultry projects.
Labels: DISTRIBUTION, LCC, SYLVIA MASEBO
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S/Africa's parliament to elect Jacob Zuma president
Written by Wendell Roelf
Wednesday, May 06, 2009 2:52:31 PM
CAPE TOWN (Reuters) - South Africa's parliament is set to choose Jacob Zuma as state president on Wednesday after his ruling ANC's resounding election victory, capping his remarkable political comeback. After an eight-year battle with corruption charges that threatened to ruin him, Zuma takes on an economy that may already be in its first recession in 17 years, and challenges such as widespread poverty, crime and AIDS.
The new government is expected to leave conservative and fiscal policies in place in Africa's biggest economy to cushion the impact of the global credit crunch and reassure investors who fear Zuma may steer the economy to the left.
The charismatic former freedom fighter, whose graft charges were dropped just before the April 22 poll, will be inaugurated on Saturday and is expected to name a cabinet soon after.
Zuma has denied any wrongdoing and said he is the victim of a political conspiracy.
The fate of Finance Minister Trevor Manuel, widely respected by financial markets, will be closely watched by investors hoping for continuity.
Zuma, who headed the ANC's intelligence department during the fight against apartheid, survived a bruising power struggle with former state President Thabo Mbeki that split the ANC and led to the creation of a breakaway party.
Zuma's trade union and Communist Party allies, who want him to spend more on the poor, have helped him survive a series of crises that threatened to destroy his career, including rape charges dropped in 2006.
The charismatic politician is known for mediation skills which could enable him to prevent any new party fractures. In the 1990s, Zuma mediated between the ANC and the Inkatha Freedom Party to end political violence which left thousands dead.
Critics of South Africa's political system say the country is effectively a one-party state because of the ANC's dominance since the end of apartheid in 1994.
The party is still widely respected for its struggle against white-minority rule so voters in the election overlooked its policy failures.
But it will come under mounting pressure to deliver on 15 years of promises to help millions of blacks still living in grim townships.
United Democratic Movement leader (UDM) Bantu Holomisa on Tuesday urged opposition groups to merge into one party to offer a strong alternative to the ANC.
Labels: JACOB ZUMA
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Congo warlord may await trial in 'neutral' country
Written by Eddie Bugingo
Wednesday, May 06, 2009 2:51:30 PM
KIGALI (Reuters) - Congo's warlord Laurent Nkunda may be transferred from Rwanda to a third neutral country while the two African nations resolve outstanding legal issues regarding his fate, officials in the great lakes nations said. The Democratic Republic of Congo wants Nkunda extradited for crimes committed during a brutal five-year rebellion in its east, during which he captured swathes of territory and threatened the regional capital Goma.
But, Rwanda say their national laws prevent them from handing over someone to a country where they may be sentenced to death, according to a joint statement by the two countries.
"We have to look at these legal impediments before we come up with a sellable outcome that satisfies both countries" Rwandan Justice Minister Tharcisse Karugarama told Reuters late on Tuesday.
"Being Congolese, the Congolese law applies to him and being on Rwandan soil, the Rwandan law applies," the joint statement said.
Last month, Nkunda's lawyer filed an unsuccessful law suit in Rwanda seeking the rebel's release saying he was being held illegally.
Tiny Rwanda has fought two wars with is much larger neighbour saying it wants to root out Congo- based rebels.
The conflict is thought to have killed 5.4 million people between 1998 and 2003 and triggered a humanitarian disaster that still simmers today.
Labels: DRC, LAURENT NKUNDA
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Malawi elections to go ahead on May 19
Felie Mzumara
05 May, 2009 10:22:00
Electoral Commission chairwoman Justice Anastansia Msosa: Polls will go ahead on 19 May Chapter closed. It has now been confirmed that Malawi’s fourth democratic elections will be held on May 19, 2009, dispelling fears making rounds the corners that the day will be pushed forward.
The development also puts to rest President Bingu wa Mutharika’s scheme to force the Malawi Electoral Commission (MEC) to reschedule the polling day so that he re-strategizes his rigging plans.
Last Saturday evening Mutharika reportedly met MEC Commissioners secretly at Sanjika Palace and discussed the possibility of postponing the polls to a later date. This was the second time Mutharika reportedly met MEC commissioners to consult and be briefed on the polls preparations.
But MEC Chairperson Justice Anastazia Msosa said on Tuesday after meeting representatives of all political parties that the polling day remains May 19, 2009.
This was after opposition political parties took to task the electoral body not to postpone the date as that would breach the land’s laws.
“Almost all the errors have been rectified, the voters roll has been amended after missing names and other inaccurate data were discovered so the polls will go ahead on May 19. There are some few errors but those will not hinder anybody from voting,” she said.
She said as of Tuesday, everything had been sorted out in all the 3157 polling stations and almost everybody who registered will vote.
There have been rising reports that Mutharika plans to rig the elections in fear of the grand MCP/UDF coalition led by John Tembo.
Nyasa Times sources say part of the rigging exercise started by messing-up the voter’s roll a tactic which Malawi government is said to have been advised by specially assigned “consultant” Vernon Mwaanga, a Zambia government chief whip in parliament.
Mwaanga has been lodging at the Capital Hotel in Lilongwe using a Mercedenz Benz which previously belonged to Charles Matabwa.
Labels: ELECTIONS, MALAWI
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Malawi to export maize to Zimbabwe, Goodall confirms
Richard Chirombo
05 May, 2009 12:05:00
Malawi could this year export the stable food, maize, to Zimbabwe again following Ministry of Agriculture and Food Security indications of another bumper harvest, Malawi's Finance Minister Goodall Gondwe has hinted.
The country has for the third year running registered another pumper maize harvest at 3.661 million tonnes- representing more than 1.461 million tonnes of excess requirement. Malawians need 2.2 million tonnes to satisfy their domestic maize requirement.
Agriculture and Food Security Principal Secretary, Andrew Daudi, has attributed such excessive production to the subsidized fertilizer programme and increased use of organic fertilizers by farmers.
Gondwe said Malawi would be duty-bound to export some of the maize excess to domestic requirements to Zimbabwe, where he said another hunger situation looms this year following poor harvests.
Zimbabwe, like Malawi, is a member state of the Southern African Development Community (Sadc), which compels it and other member states to be the first line of call to fellow members in cases of national calamities including hunger.
“It is a very positive thing, and shows how committed this administration has been in many areas including economic development and food security. This year, we have again produced some hamper maize harvest part of which we may export to Zimbabwe. Zimbabwe has not harvested enough this year,” said Gondwe.
The Finance Minister did not elaborate on the actual figures that could be exported.
Analysts have linked the persistent food shortages in Zimbabwe to the seizure of white owned farms, a development they cite for leading to decreased crop productivity. The situation has prompted the World Food Programme to initiate various interventions in the bid to save people from starvation.
In a related development, Gondwe revealed that government was in the process of establishing a public food storage company whose main goal would be to provide extra space for crop storage.
Gondwe said, under the arrangement, people would be able to deposit their maize and other crops at the storage facilities for safe keeping, after which they will be getting a receipt.
“They will, then, be able to use the receipts (as evidence of property ownership) as collateral with commercial banks. But we are still discussing the modalities, which are at an advanced stage, and will announce the modalities later,” said Gondwe.
This follows concerns from some quarters, including the Council for Non-Governmental Organisation (Congoma) and the Malawi Economic Justice Network, who want the country to invest in food storage mechanisms because pumper crop yields end up rotting due to inadequate and poor storage facilities.
Congoma’s Executive Director, Ted Nandolo, for instance, claims that over half of last year’s bumper maize yield got lost through rotting, or couldn’t be properly stored due to lack of space and ended up catching moisture.
“We really feel that we need to invest in storage facilities for us to be able to retain our maize crop harvests. This problem creates problems for people and could be responsible for the reports of hunger we get from various communities when government maintains we still have maize stocks,” queried Nandolo.--AfricaNews
Labels: GOODALL GONDWE, MAIZE, MALAWI, ZIMBABWE
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Strong leadership is needed
Written by Editor
On Monday, Mopani Copper Mines retrenched 978 workers – over 500 in Kitwe and over 400 in Mufulira. These retrenchments should not be seen as mere quantitative issues but as a qualitative result of the irrational and unjust nature of the existing system of economic policies. Unemployment, lack of opportunity, insecurity, hopelessness are the terms that could well define the living conditions of a great part of the people of this country.
This should be an affront to our collective conscience. It is an imperative need of our time to be aware of these realities, because of what a situation affecting the great majority of our people entails in terms of human suffering and the squandering of life and intelligence.
The cold eloquence of these figures is in itself terrifying enough. But beyond them lies the tragic situation of the effects of unemployment that is individualised a thousand times over.
Haggai Chishimba, who was retrenched from Mopani Copper Mines on Monday, says he doesn’t know what to do: “Why should the government contradict itself? Today it says it’s going to stop pruning and the next day the investor does something else. I don’t know what to do next because the Copperbelt depends on the copper mines. We have got loans with Barclays and Barclays is getting everything.”
O’brien Musenge who was retrenched while on shift says “workers should be given time to prepare their exit other than an immediate effect pruning”.
A culture which recognises the eminent dignity of the worker will emphasise the subjective dimension of work. The value of any human work does not depend on the kind of work done; it is based on the fact that one who does it is a person. There we have an ethical criterion whose implications cannot be overlooked.
Thus every person has a right to work, and this right must be recognised in a practical way by an effective commitment to solving the tragic problem of unemployment. The fact that unemployment keeps large sectors of our population, and notably the young, in a situation of marginalisation is intolerable. For this reason, the creation of jobs is a primary social task facing individuals and private enterprise, as well as the government. As a general rule, in this as in other matters, the government has a subsidiary function; but often it can be called upon to intervene directly.
The priority of work over capital places an obligation in justice upon employers to consider the welfare of workers before the increase of profits. They have a moral obligation not to keep capital unproductive and in making investments to think first of the common good. The latter requires a prior effort to consolidate jobs or to create new ones. The right to private property is inconceivable without responsibilities to the common good. It is subordinated to the higher principle which states that goods are meant for all.
There is need for solidarity with the workers who are being retrenched on the Copperbelt and elsewhere, and all those whose jobs are threatened. Solidarity is a direct requirement of human and supernatural brotherhood. The serious socioeconomic problems that our country is facing today cannot be solved unless new fronts of solidarity are created: solidarity of the poor among themselves, solidarity with the poor to which the rich are called, solidarity among the workers, and with the workers. Institutions and social organisations at all levels, as well as the government, must share in a general movement of solidarity. And when we appeal for such solidarity, we are aware that we ourselves are concerned in a quite special way.
The gravity of the current challenges demand strong leadership from key players in our economy and the responses we seek should not only be about “the here and now” but should be geared towards shaping the future we all seek to build – a more just, fair and humane Zambia.
It cannot be denied that we are today caught in the global financial crisis, although initially our Minister of Finance Situmbeko Musokotwane had assured that Zambia will not be affected by this crisis.
The current global economic crisis started as a financial problem in the developed countries. But due to globalisation and the disproportional economic power relations, the impact of the financial crisis in the United States and Europe spread to the rest of the world and we are today affected by it.
Bold steps need to be taken to find sustainable responses to the global challenges, most of which are not of our making. We need to develop sector specific strategies and concrete action plans to respond to this global economic meltdown. We have to realise that the effects of this crisis differ from country to country.
For us, this economic crisis just compounded the negative effects of the food and fuel crisis that manifested itself earlier in 2008.
With limited resources, this crisis just puts more pressure on our people to tighten our belts in ensuring that the poor and the vulnerable do not end up absolving the shocks of this economic crisis alone.
We now desperately need a better strategy to mitigate contagion from the global financial crisis and its adverse impact on the real economy of our country.
The thrust of our response framework should revolve around strategies to cushion the impact of the crisis on job losses, particularly for the poor and vulnerable. The vicious cycle of this impact on investment – both private and public – on jobs and on government’s social programmes is what our response framework should seek to offset. This calls for an intensive strategy to target sectors that are vulnerable to the current economic crisis.
We therefore need to ensure that the negative impact of the slowdown on the poor and the most vulnerable is mitigated. The measures we seek to put in place should embrace elements that promote economic growth and sustainable businesses, assist and protect workers and the vulnerable and assist our country meet its developmental objectives.
We need social solidarity among and between all Zambians to ensure that the crisis does not damage the fabric of our society. Those with greater means have a responsibility to those without such means. Our collective responsibility should be to work together to withstand the crisis and ensure that the poor and the most vulnerable are protected as far as possible from its impact. We must also ensure that the economy is ready to take advantage of the next upturn and that the benefits of such growth are shared by all our people.
But as Mopani Copper Mines retrenchee Chishimba has correctly observed, our government leaders have been contradicting themselves from the very beginning on these issues. They started with a denial that Zambia will not be affected by this crisis. They still live in denial. They are every day contradicting themselves on the impact and effects of this crisis. It’s time they came to terms with this situation and its realities. As we have stated before, no problem has ever been solved until it has become a tangible reality which everyone is aware of. Our leaders seem to be at sea and their own discernible preoccupation right now is involvement in corrupt procurement deals.
We shouldn’t cheat ourselves that this struggle is going to be an easy one; it is going to be a lot more complex one than all the others our country has waged and as such demands much more subtle grasp of strategy and tactical awareness. And we are not seeing any of this from our political leaders, especially from President Rupiah Banda himself. All that Rupiah is doing is to engage in endless ceremonial activities and merriment as if he is a titular head of state and not an executive president.
It is said that progress and success is but given to those who continue to win it back through struggle. Mobilise and organise all those around you to play a role in saving jobs and preparing to participate in the efforts to create decent work.
Labels: JOBLOSSES, MCM, MINING, MOPANI
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Mopani retrenches 978 workers
Written by Mutuna Chanda in Kitwe and Chiwoyu Sinyangwe in Lusaka
Tuesday, May 05, 2009 11:00:45 PM
MOPANI Copper Mines (MCM) has retrenched 978 workers. And Zain Zambia Plc is expected to discharge some workers as the country's leading mobile phone company restructures operations in line with its parent company, Zain Group which is streamlining global operations to reach growth targets by 2011.
Sources told The Post that MCM on Monday laid off over 500 workers in Kitwe and over 400 in Mufulira. The sources indicated that the mining firm had also closed some of its departments that included industrial engineering and In Situ at Nkana in Kitwe.
And one of the retrenched Mopani workers, Haggai Chishimba, who spoke in disbelief, said he did not know what to do.
"Why should the government contradict itself?" asked Chishimba. "Today it says it's going to stop pruning and the next day the investor does something else."
Chishimba, who was in the company of fellow MCM retrenchees, said the government knew beforehand that workers would be retrenched going by mines minister Maxwell Mwale's silence.
"I don't know what to do next because the Copperbelt depends on the mines. We've got loans with Barclays and Barclays is getting everything," Chishimba said.
Another retrenched miner O'Brien Musenge, who was retrenched while he was on shift, said the workers should have been given time to prepare their exit other than an immediate-effect-pruning.
Lawrence Banda, complained that the retrenchment package was too little as it was K7 million less than those of his peers who were retrenched in February.
And according to letters handed to some of the miners signed by Mopani chief processing officer T. Gonzales and dated April 30, 2009, the mining company pruned workers it considered excess labour.
"Following reorganisation and labour rationalisation at Mopani Copper Mines Plc, you have been identified as excess to the labour requirement in your department," stated Gonzales. "Therefore, we wish to advise that your employment with this company has been terminated. Accordingly, your last shift will be 4th May, 2009, on which date all employment obligations shall cease. You will be paid terminal benefits for your service as follows: i) two months' pay for each completed year of service pro rata. ii) repatriation allowance in accordance with conditions of employment and service. iii) one month's pay in lieu of notice. iv) your accrued MCM (Mopani Copper Mines) pension in accordance with pension rules. v) long service award if you have completed nine or 19 or 29 years of continuous service. We would like to take this opportunity to thank you for the service you have rendered and wish you success in your future endeavours."
Efforts to reach Mopani officials failed as mobile phones for both chief executive officer Emmanuel Mutati and chief services officer Passmore Hamukoma went unanswered.
And Patriotic Front (PF) Mufulira district vice-chairperson Francis Mumba expressed particular concern at the retrenchment of medical personnel at the Mopani-run Malcom Watson Hospital.
"Why retrench medical personnel when we have a big shortage of medical personnel in the country?" he wondered.
Mumba said people on the Copperbelt were tired of retrenchments.
"These investors are running this country and not the government. Today the investors say they have rescinded the decision and will not fire workers and then they turn around and say they will fire workers," Mumba said. "Government should put its foot down and say enough is enough."
Last week, MCM rescinded its decision to close its Mufulira operation and place its shafts in Kitwe under care and maintenance.
The company was considering closing some operations and place some under care and maintenance owing to the fall in world copper prices from highs of close to US $9,000 per tonne early to mid last year to around US $3,000 per tonne later in the same year.
Following the Mopani announcement last week, labour deputy minister Simon Kachimba indicated that there would be some "minor injuries" to the Mopani workforce.
Kachimba after meeting management at Mopani, said that the workforce, which stood at 7,264 would remain in the regions of 7,000.
However, the 978 laid off on Monday bring the labour force at Mopani to 6,286.
And Zain Group will reduce its current 15,500 global workforce by 2,000 across the board.
"The Zain Group will align its head office and operations structures in accordance with the new operating model. This will result in Zain reducing its current 15,500 global workforce by 2,000 [equivalent to a 13 per cent reduction] across the board," disclosed the Group through a statement made available by Zain Zambia Plc public relations officer Kennedy Mambwe in response to a press query from The Post.
The confirmation from the Kuwait headquartered company followed growing anxiety among most Zain Zambia Plc employees who recently feared for their jobs after management recently sent them a memo informing them about the impending job losses which was likely to be implemented by August this year.
It was not immediately clear how many workers would be fired from the Zambian branch and when the restructuring would be implemented.
The statement also disclosed that Zain operations in Iraq, Jordan, Kenya, Kuwait, Malawi and Sierra Leone had already begun the process of reducing employment levels.
The pending countries were Bahrain, Burkina Faso, Chad, Republic of the Congo, the Democratic Republic of the Congo, Gabon, Ghana, Kenya, Madagascar, Niger, Nigeria, Saudi Arabia, Sudan, Tanzania, Uganda and Zambia.
However, there was little indication that the ongoing reforms were triggered by the current global economic crisis.
The statement announced that Zain Group chief executive officer Dr Saad Al Barrak announced a new programme to propel the company towards its 2011 target of being a top ten global mobile telecommunications operator following a strategic meeting with senior Zain executives from all 22 African and Middle East operations.
According to the statement, "Drive2011" would focus on customer facing services and commercial activities while centralising or outsourcing some back office/non-core functions to strategic partners.
"Drive2011 is a natural consequence of Zain's evolutionary journey. It was planned soon after the launch of our ACE strategy in 2007 and is a structured and timetabled approach to maximising efficiency," Dr Al Barrak commented. "We will create genuine market differentiation through our services and deliver on our Zain brand promise of 'a wonderful world'. This will be achieved through a combination of managed outsourcing, centralisation and leveraging capabilities, as well as training and development for our personnel, all of which will improve our operating efficiencies."
The statement further noted that the new strategy, which comes at a vital stage of the company's "3x3x3" vision that commenced in 2003, would maximise economies of scale and realise significant efficiencies, allowing Zain to provide communication services such as voice, SMS [Short Message Service] and data at an optimum cost structure.
"Drive2011 is expected to improve Zain's operating margin by five per cent within 12 months and provide the company the necessary thrust to capture the future growth potential of the markets in which it operates," the statement read in part.
Additionally, the statement also announced during the same meeting, Dr Al Barrak also made several senior management changes both at Group and country operation level, a move aimed at tackling the challenges ahead and attaining other 2011 targets of 150 million customers and a US $6 billion EBITDA.
Most Zain Zambia Plc workers had in recent times been gripped by fear following the recent intimation of the impending retrenchments by management at the company which controls about 78 per cent of the mobile phone sector in the country.
"You can't have a peace of mind when you know that each time you go for work in the morning, you might be given a letter of terminating your contract," said one employee who declined to be named.
Labels: JOBLOSSES, MCM, MOPANI, ZAIN ZAMBIA LIMITED PLC
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