Zambia’s recovery plan, Part II: the stimulus plan
Written by Prof Clive Chirwa
Saturday, May 23, 2009 7:44:07 PM
Up until earlier this year, ‘globalisation’ or ‘investor attraction’ was the word on everyone’s lips and was regarded as God send to African countries that at last saw real money being pumped into their economies. The big multinational corporations, market speculators, opportunists for quick bucks and just investors propped by their nations jumped on the band wagon to Africa. Many countries including Zambia bent backwards in pampering them with incentives.
It is now clear that “investor attraction” has failed to rid the world of poverty according to a number of economists in Europe, Japan and USA. Rather than being an unremitting force for our development, “investor attraction” has shown its true colours by abandoning us at the slight drop in commodity prices and hence partly precipitating our recession.
This shows how multinationals have become more powerful than governments, controlling global financial institutions that have marginalised the likes of IMF and World Bank, making their own rules and regulations, and walking into and out of our lives whenever they feel convenient. Hence, fuelling the “race to the bottom” as Zambia searches to attract and retain investments. Meanwhile the so-called “investors” are taking advantage of this crisis to cut jobs and then skim off huge profits while paying very little tax.
I believe in a free market economy and Zambia should embrace every potential contributor to our development. But what this crisis is showing us is that there are some core businesses of a nation that require the tight control of government.
In Zambia’s case natural resources are key to our survival since they provide about 90 per cent of our revenue with copper at the top bringing in about 70-80 per cent of that income. Zambia’s total dependency on copper raw material means that every time its price, set far away in London, fluctuates, it takes the kwacha’s value with it and the people suffer. The exchange rate has followed closely changes in copper prices for decades. What we want is to urgently decouple the kwacha value from copper price. We can do that very easily by innovating and therefore take our copper to finished products, while at the same time proactively creating a market for them.
If we do not do that, large negative effects are expected in output, fiscal and external accounts, and in the financial sector. According to the Word Bank, our account deficit is expected this year to reach 10 per cent of GDP. Two years ago in 2007 it was just 4 per cent. The fiscal deficit has already worsened, led by the low copper revenues and will become worse to reach 3 per cent of GDP this year. The financial sector on the other hand is showing some signs of exposure to domestic and international downside risks. This is how the effects of global financial crisis are affecting Zambia.
Our international reserves, which were nicely and conscientiously built by our government through good governance and prudence are dwindling fast, falling by 28 per cent since their peak of $1.4 billion in July 2008. We must stop this depletion of our reserves by seriously looking into innovation and some slight diversification of our main income spinner wherever appropriate.
Indeed the World Bank has now concluded that for Zambia to survive in the long term, and eradicate poverty, it must diversify its attention from raw material export. By doing so our country will rise again to the growth levels of 6 per cent that we saw happening up to July 2008 and we shall surpass that as our economy structure changes from mono to multi.
In addition to this, we must make sure that this time, our government plays a bigger role in initiating our growth. I have been saying this for years that nobody will come to develop our country. It is our duty as Zambians to do so and not to totally depend on investors who are just temporary participants and heavily governed by the “Invisible Hand” theory first coined by the father of capitalism Professor Adam Smith. According to Professor Smith, this is a concept showing that people act in their own interest and not all self-interest has beneficial effects on the community.
Recently I was invited to Oslo in Norway, the only country in the Western World still recording growth. During lunch we touched upon the economic prowess in this downturn. A comment was made by a good Norwegian friend that “it is a great pity to see Africa not moving at all since the 1960s. Before, it was the British and the French who milked you and now it is the Chinese taking over. Open your eyes, how can you allow to be constantly chocked. It is euthanasia for a nation like Zambia. Look at Norway, our government controls all the North Sea oil reserves to finished products. Our capitalism is different. We believe in private enterprise and free market, but when it comes to natural resources the government makes sure it controls that. This is why we have built $360 billion in reserves. We enjoy a surplus of 11 per cent and our ledger is entirely free of debt, while the USA has a deficit of 12.9 per cent of GDP and $11 trillion in debt. Our GDP per capita is $52,000.
If we left it to investors, we too, would have been milked by oil multinationals”.
It was extremely embarrassing to hear the naked truth; hence I dropped my eyes to avoid contact as I was saying to myself “he is right”. Why can’t we do it ourselves and move out of this self-imposed misery? We have been independent for more than 44 years, but our economy and development has barely moved from the position left to us by the British. It is as though we have been in a coma or hibernation for all these years. That is why I am now seriously advocating using this opportunity of the economic crisis to wake up and really make sure we put up a stimulus plan for us in the short, medium and long term. This time we should not be arm-twisted by the IMF and World Bank to liberalise our economies as we adjust our fiscal structures. We must also improve our current GDP per capita that stand at $1,400 and go back to our path of growth that stood at 6 per cent to greater heights.
The only way we are going to resume the better days and go beyond those yesteryear targets is to build up our international reserves once more through a prosperity route that is stipulated in our stimulus plan. This involves expanding and redesigning the means we generate income. The question is: how is Zambia going to respond to this downturn?
Zambia is not USA, Britain, Russia, German or other countries that have provided multi-billion dollar stimulus plans. We just do not have that sort of money. But we are extremely rich in natural resources despite being poor on the balance sheet. Our challenges are much more complex than other African countries in the sense that we are landlocked, we have inadequate access to markets, poverty is too high, we are too weak in fiscal strategy and dependent on pie-in-the-sky investors to come and show us how to do things. Because of these challenges, Zambia needs a stimulus package to mitigate the contagion of this crisis that originated from the developed world. Our stimulus should properly integrate sets of trade, monetary and fiscal measures. This will provide assistance to facilitate economic adjustment and nurture our investments in human and physical capital. The stimulus plan should provide and support appropriate safety nets for those most vulnerable and most exposed to the crisis such as the mining sector and their suppliers. The private sector and particularly the small and medium enterprises should be propped as they will be the ones to create wealth necessary for poverty reduction once they have been shown the way by giving them innovation tools.
Zambia must not be complacent as to rely on the G20 aid package to Africa of $20 billion plus 0.7 per cent of the stimulus of the developed world to “vulnerable fund for Africa”. It is time we started living in the real world by abolishing the counting of aid as our income in our national budget. This is totally unacceptable and must be deleted in future budgets. Income is something you earn and the stimulus plan here must reflect that.
In the absence of real mega external resources, Zambia should contemplate a modest fiscal stimulus as the way of propping up the economy’s growth. It is unlikely that tax reductions will yield great gains in growth, as many of the efficiency-reducing taxes have already been reduced through enormous unemployment by companies who have gone bust and by those investors who want to maximise their profit. So our major gains will come from expenditure increases. How this is spent is extremely important. Building a conference centre and a football stadium now is ill advised. For the simple reason that although jobs are created in the short term these do not add value to future jobs creation because no money is being made for re-investment. Priority in government expenditure must become the driver the take us out of this recession. This money would have been better utilised in building the manufacturing base. We will come to that later.
In this downturn, the stimulus plan should be able to create jobs and support those existing jobs that are under threat. The more people work, the bigger is the take home pay for the government in the form of PAYE, corporation tax and royalties. To be blunt why not re-acquire some mines into ZCCM? Norwegians, Russians and now USA, Great Britain, Germany are all doing it. Western governments running banks, car industries, mines and so on was never on the vocabulary of those nations. But we are in extraordinary times, and Zambia must now recoup what belongs to the people, that is the only way we will generate reserves towards the sizes of Norwegians and Chinese.
The stimulus should also be directed at real maintenance and construction of infrastructure such as roads, energy or electricity grids, water supply, and the long-term neglected railway system. As a land locked country our railway system needs to be re-built. The longer we leave it the more expensive it will become. Without us having these infrastructures performing perfectly, there will be no development. This is our chance to spend while in the downturn so that we are ready for the big things to come when the market and the world economy is on the upturn. This action will create real jobs. Spending $200 million on non-revenue spinning enterprises like a football stadium and business centre in this downturn is an absurd and myopic strategy. I know His Excellency never made the decision. Wisdom is now required to achieve the most effective sequencing to ensure the stimulus create and stimulate a multiplier effect in sectors with highest potential.
That is why I believe manufacturing is at the top. Many people in Zambia have said we should go the agriculture route. I have a problem with this despite that agriculture is essential. But this will never lift Zambia out of poverty or even create an economic transformation. Agriculture will never employ more people than manufacturing will.
The world around us has shown for instance that Great Britain and America each has 1 per cent and 3 per cent respectively of their total population employed in agriculture and they feed 65 million and 260 million respectively. As you can see agriculture is not a job creation sector, indeed what we want is to mechanise our agriculture and make it more efficient so that we are be able to have two if not three harvests of maize, wheat and other farming products per year. This will boost food reserves and security.
For development and for the purpose of taking us out of the recession, we need stimulus package in ventures that guarantee increasing returns to scale. This is manufacturing, not agriculture or tourism. It is time that our dependency on primary products takes another level to value adding ventures which will create more jobs and expand the revenue base.
We know that Zambia has in the past been growing by 6 per cent. This was because of high copper prices and therefore it was a myth development. If you want to see the real growth, it is better to compare countries by what they made their money from. You will find that high-growth economies have vibrant manufacturing sector. The output shares of manufacturing in national income and exports are good indicators. In Africa, South Africa ranks en par with developed countries in economic terms because of the manufacturing capacity. Zambia had a good percentage of 32 per cent in 1990 as contribution of manufacturing to GDP. This has dropped tremendously after privatisation and we need to go back to that and beyond if we have to develop further. Only this time our manufacturing must concentrate on value addition in copper and other natural resources sold as raw materials.
People might ask, why should we go for manufacturing? It is well established that the sector is superior in productivity increases, economies of scale and spurring all-round linkages. The sector is a big stimulus incentive as it also demands and absorbs a mix of high- and low skilled labour. Only manufacturing will save us. We must really do it in a planned manner to have maximum impact. Like in Norway, I would like our government to create prime value addition industries in copper, cobalt and nickel based industries. Then after that, private entrepreneurs will build up supply and converter chains. A think tank should identify the necessary products and next week I will show you a lot of those that have very high value additions despite using very little base material. Do not miss the third part of the Recovery Plan - The Execution Strategy. You might find some ideas for your business.
If we left it to investors, we too, would have been milked by oil multinationals”.
It was extremely embarrassing to hear the naked truth; hence I dropped my eyes to avoid contact as I was saying to myself “he is right”. Why can’t we do it ourselves and move out of this self-imposed misery? We have been independent for more than 44 years, but our economy and development has barely moved from the position left to us by the British. It is as though we have been in a coma or hibernation for all these years. That is why I am now seriously advocating using this opportunity of the economic crisis to wake up and really make sure we put up a stimulus plan for us in the short, medium and long term. This time we should not be arm-twisted by the IMF and World Bank to liberalise our economies as we adjust our fiscal structures. We must also improve our current GDP per capita that stand at $1,400 and go back to our path of growth that stood at 6 per cent to greater heights.
The only way we are going to resume the better days and go beyond those yesteryear targets is to build up our international reserves once more through a prosperity route that is stipulated in our stimulus plan. This involves expanding and redesigning the means we generate income. The question is: how is Zambia going to respond to this downturn?
Zambia is not USA, Britain, Russia, German or other countries that have provided multi-billion dollar stimulus plans. We just do not have that sort of money. But we are extremely rich in natural resources despite being poor on the balance sheet. Our challenges are much more complex than other African countries in the sense that we are landlocked, we have inadequate access to markets, poverty is too high, we are too weak in fiscal strategy and dependent on pie-in-the-sky investors to come and show us how to do things. Because of these challenges, Zambia needs a stimulus package to mitigate the contagion of this crisis that originated from the developed world. Our stimulus should properly integrate sets of trade, monetary and fiscal measures. This will provide assistance to facilitate economic adjustment and nurture our investments in human and physical capital. The stimulus plan should provide and support appropriate safety nets for those most vulnerable and most exposed to the crisis such as the mining sector and their suppliers. The private sector and particularly the small and medium enterprises should be propped as they will be the ones to create wealth necessary for poverty reduction once they have been shown the way by giving them innovation tools.
Zambia must not be complacent as to rely on the G20 aid package to Africa of $20 billion plus 0.7 per cent of the stimulus of the developed world to “vulnerable fund for Africa”. It is time we started living in the real world by abolishing the counting of aid as our income in our national budget. This is totally unacceptable and must be deleted in future budgets. Income is something you earn and the stimulus plan here must reflect that.
In the absence of real mega external resources, Zambia should contemplate a modest fiscal stimulus as the way of propping up the economy’s growth. It is unlikely that tax reductions will yield great gains in growth, as many of the efficiency-reducing taxes have already been reduced through enormous unemployment by companies who have gone bust and by those investors who want to maximise their profit. So our major gains will come from expenditure increases. How this is spent is extremely important. Building a conference centre and a football stadium now is ill advised. For the simple reason that although jobs are created in the short term these do not add value to future jobs creation because no money is being made for re-investment. Priority in government expenditure must become the driver the take us out of this recession. This money would have been better utilised in building the manufacturing base. We will come to that later.
In this downturn, the stimulus plan should be able to create jobs and support those existing jobs that are under threat. The more people work, the bigger is the take home pay for the government in the form of PAYE, corporation tax and royalties. To be blunt why not re-acquire some mines into ZCCM?
Norwegians, Russians and now USA, Great Britain, Germany are all doing it. Western governments running banks, car industries, mines and so on was never on the vocabulary of those nations. But we are in extraordinary times, and Zambia must now recoup what belongs to the people, that is the only way we will generate reserves towards the sizes of Norwegians and Chinese.
The stimulus should also be directed at real maintenance and construction of infrastructure such as roads, energy or electricity grids, water supply, and the long-term neglected railway system. As a land locked country our railway system needs to be re-built. The longer we leave it the more expensive it will become. Without us having these infrastructures performing perfectly, there will be no development. This is our chance to spend while in the downturn so that we are ready for the big things to come when the market and the world economy is on the upturn.
This action will create real jobs. Spending $200 million on non-revenue spinning enterprises like a football stadium and business centre in this downturn is an absurd and myopic strategy. I know His Excellency never made the decision. Wisdom is now required to achieve the most effective sequencing to ensure the stimulus create and stimulate a multiplier effect in sectors with highest potential.
That is why I believe manufacturing is at the top. Many people in Zambia have said we should go the agriculture route. I have a problem with this despite that agriculture is essential. But this will never lift Zambia out of poverty or even create an economic transformation. Agriculture will never employ more people than manufacturing will.
The world around us has shown for instance that Great Britain and America each has 1 per cent and 3 per cent respectively of their total population employed in agriculture and they feed 65 million and 260 million respectively. As you can see agriculture is not a job creation sector, indeed what we want is to mechanise our agriculture and make it more efficient so that we are be able to have two if not three harvests of maize, wheat and other farming products per year. This will boost food reserves and security.
For development and for the purpose of taking us out of the recession, we need stimulus package in ventures that guarantee increasing returns to scale. This is manufacturing, not agriculture or tourism. It is time that our dependency on primary products takes another level to value adding ventures which will create more jobs and expand the revenue base.
We know that Zambia has in the pass been growing by 6 per cent. This was because of high copper prices and therefore it was a myth development. If you want to see the real growth, it is better to compare countries by what they made their money from. You will find that high-growth economies have vibrant manufacturing sector. The output shares of manufacturing in national income and exports are good indicators. In Africa, South Africa ranks en par with developed countries in economic terms because of the manufacturing capacity. Zambia had a good percentage of 32 per cent in 1990 as contribution of manufacturing to GDP. This has dropped tremendously after privatisation and we need to go back to that and beyond if we have to develop further. Only this time our manufacturing must concentrate on value addition in copper and other natural resources sold as raw materials.
People might ask, why should we go for manufacturing? It is well established that the sector is superior in productivity increases, economies of scale and spurring all-round linkages. The sector is a big stimulus incentive as it also demands and absorbs a mix of high- and low skilled labour. Only manufacturing will save us. We must really do it in a planned manner to have maximum impact. Like in Norway, I would like our government to create prime value addition industries in copper, cobalt and nickel based industries. Then after that, private entrepreneurs will build up supply and converter chains. A think tank should identify the necessary products and next week I will show you a lot of those that have very high value additions despite using very little base material. Do not miss the third part of the Recovery Plan - The Execution Strategy. You might find some ideas for your business.
******************
COMMENTS:
It is fantastic to finally see someone turn away from the doctrine of offering up the economy to foreign corporations (euphemistically called 'foreign investors' - if I'm a fundmanager, and I buy shares in a company - I'm an investor - if I buy a mine, and then run that mine, I'm a miner, not an investor - just had to get that out of the way).
At the same time, the fact that a commercial farm would use less labour than a subsistence farm, is compensated for the fact that only 1/5th of arable land is under cultivation, and only 3% of arable land is under permanent irrigation. Irrigation would double the number of harvests per year. There would be much more work to be done, and it would pay more because of higher productivity per employee. This would create demand for professionals in rural areas - doctors and nurses, lawyers, veterenarians, extension offices, mechanics, etc.
The world around us has shown for instance that Great Britain and America each has 1 per cent and 3 per cent respectively of their total population employed in agriculture and they feed 65 million and 260 million respectively. As you can see agriculture is not a job creation sector, indeed what we want is to mechanise our agriculture and make it more efficient so that we are be able to have two if not three harvests of maize, wheat and other farming products per year. This will boost food reserves and security.
It is true that in industrialized countries, only 5% or fewer of the labour force work in agriculture. However, this is a tribute to the fact that they are nearly completely mechanized. Zambia is not there yet, although it can go there. Today, most farming is still subsistence farming, unmechanized and very labour intensive. To change that, Zambia should not go the way of the United States or Russia, and create huge monoculture agribusinesses, but give a chance for the rise of the commercial farmer. This would create jobs where people live today, in the rural areas, and would not necessitate them to move to the already crowded cities just to find a job. In the EU, the average size of a farm is 90 hectares - Zambia should strive for that too, because it has the greatest opportunity for agricultural diversification, job creation, and wealth creation in the rural areas, where most people still live. It will also slow the urbanisation and rural flight that is plagueing the major cities. In fact, creating more job opportunities in the cities only would actually encourage this process.
Then, there is the issue of government itself. A remnant of the One Party State, is that Central Government is too big, and that there is no subsidiarity and decentralization of budgets and responsibilities to the local council level. Instead of having the taxpayer fund 29 ministries and a large number of political positions that are not required for good governance or democratic representation, the central government should have 10-12 ministries, and the Constitution should delegate the provision of services to local government - education, healthcare, policing, public utilities and administration. Zambia should delegate 50% of national revenues to local government. The spending of 50% of national revenues at the council level will make 100s of millions of dollars available in the rural areas. Note that I am not just for the slashing of the size of government, as neoliberals like Dambisa Moyo or Eddie Cross are. I am for a reprioritising of government functions, from administration and red tape in Central Government, to provision of services by local government. Most of the people working for the government today, would be re-employed at the council level.
Lastly, there is the issue of the mines. Zambia should replace both donor aid and the ineffective taxation of the mines with a single, high tax on turnover. Get rid of all mine taxes except the royalties tax, and raise that from 3% to 20%. If necessary, just confiscate every 5th load that leaves the mines or smelters. That way, there is no confusion about how much a foreign corporation really earned (income tax), what their tax deferments are, amortisation of capital goods, and all the tricks the mines used to turn the burdon of paying tax over to the Zambian worker (PAYE).
Also, Zambia should create copper and other reserves, to support the currency, and create money for reinvesment. As a suggestion, if Zambia created mineral reserves of say $1 billion, this would deflate the currency. The government could then create 500 million and reinflate the currency, and use the money to finance infrastructure, manufacturing or and other projects, and do wo without creating debt, or creating inflation.
Governance - another remnant of the One Party State, is the lack of separation between the Civil Service and elected politicians. The civil service should become more professional and less captive to the political class. This can be achieved by generating promotion from within the civil service, and limiting appointment of civil servants by politicians, including the President, to the top level only. A twin issue to this, is the Parastatals. They need to operate within a Constitutional framework, which protects them from political interference, especially political appointments to management positions (no more cousins of important politicians), and as part of the civil service, have appointments made on merit, and have oversight only from other branches of the civil service, and parliamentary committees. Which brings me to the role of parliament. Parliament needs to review every major project and loan acquired, as is being discussed in the NCC right now, and has wide support, even though it did not get enough votes this time. Especially opposition MPs can play a critical role in ensuring that money is not wasted and corruption is detected early on.
Monitoring and auditing of projects on an ongoing basis should become part of the process of getting government contracts. There are literally hundreds of millions of dollars lost in the procurements and government contracts, even as government officials raise the objection of 'limited resources' whenever they don't want to do something. Obviously this has to change, and an effective government is also an efficient government.
I think prof. Chirwa, as an engineer, perhaps has a slight professional bias towards industrial developoment. And I don't disagree that Zambia must take the steps necessary to keep every manufacturing job in the country, instead of importing finished goods and even create new ones from turning for instance it's copper into finished goods. I don't disagree with that at all, I applaud it. However, a house cannot be built on quicksand. More than finished goods, more than even jobs, people need food. This is only two steps in the hierarchy of human needs, after water and air. This is why we must secure the food supply, and why Zambia must develop it's massive natural resources of water for irrigation, and put the 80% of arable land that remains unitilized, under cultivation. It cannot produce finished goods, only to import the food it needs. It would be wasteful, and would undermine the country's sovereignty by putting the food supply into foreign hands. This is why I believe that Zambia must first utilize it's natural resources to become not only a net food producer, but do it in a way that raises incomes of ordinary people where they live, by getting them involved in agriculture, as well as lowering the price of food by producing more of it.
Now industrialisation and the professionalisation of agriculture are not mutually exclusive. Commercial farmers need mechanized tools, and rather than import them wholesale from Chinese parastatal companies, why not manufacture or at least assemble tractors and attachments in Zambia itself? Tooling spare parts would also increase manufacturing jobs. Why not produce biofuel on a small but widespread scale, to reduce the importation of fossile fuel from Saudi Arabia, and keep that money circulating within the economy and reduce the need for foreign currency?
Only 3% of Zambia's land is under cultivation, and yet it has many huge rivers and floodplains, just waiting for small dams and irrigation for local farmers. Irrigation would make multiple harvests per year possible, prevent the annual flooding of areas and the loss of life and property, and general disruption and hunger that result.
This could be huge works projets, combining the National Service, unemployed miners (who have experience with earth moving equipment), and traditional authorities to mobilize labour, where the government could pay people $5,- per day, to build roads, dams, bridges, and create irrigation districts. This would raise incomes, creating markets for new consumer products, where first there were none. If those products are manufactured in Zambia, that money returns as wages for other workers, completing the cycle, and allowing the government to recoup it's investment bit by bit, every time someone pays income tax.
Rather than seeing industrialisation and an agrarian revolution as competing priorities, they can be integrated to form a single plan of action, supporting eachother, while building the economy to greater heights.
That is why I believe manufacturing is at the top. Many people in Zambia have said we should go the agriculture route. I have a problem with this despite that agriculture is essential. But this will never lift Zambia out of poverty or even create an economic transformation. Agriculture will never employ more people than manufacturing will.
I would say that agriculture already creates more jobs than manufacturing and mining combined. Mining only employs 58,000 people out of Zambia's 5 million strong labour force. There are millions of subsistence farmers. Also, even commercial agriculture can be labour intensive. There are certain things that cannot be automated, like growing and collecting saffron, which is the most expensive herb today. Greenhouses can be labour intensive too.
Labels: CLIVE CHIRWA, GREAT DEPRESSION II, MMD, NEOLIBERALISM, PRESIDENCY
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Shoprite slashes prices to celebrate Bingu victory
Nyasa Times 23 May, 2009 02:40:00
There was excitement in the commercial capital Blantyre on Friday as the management of Shoprite welcomed its customers to a special treat when
it unbelievably slashed prices for some of its commodities to the amazement of the consumers.
According to an inside source at the shopping center, the decrease came as one way of joining the Democratic Progressive Party (DPP), the people of Malawi and President Bingu wa Mutharika to celebrate the head of state’s re-election as leader of the country.
“Our management decided to slash prices of goods to celebrate with Bingu, DPP and the people of Malawi for the President’s victory and also for the peaceful elections the country has conducted,” said the source.
Added: “Dr Mutharika has created a sound business atmosphere in Malawi and his re-election as President of the country is good news for both business and development of the nation.”
Mutharika won the presidential race by scooping 65 percent of the votes, with the DPP winning most of the parliamentary seats during Tuesday’s polls that have been described as the most violence-free elections in the history of Malawi.
Millions of people across Malawi have joined Mutharika and his party to celebrate the landslide victory, and the reduction of prices for goods at Shoprite was in coincidence with Mutharika and the Vice President-elect Joyce Banda’s swearing-in ceremony at Kamuzu Stadium, which is adjacent to the supermarket.
Expressing her gratitude, one of the cheerful customers seen with carrier bags of consumables on their way out of the store said, “I am extremely happy with what Shoprite has done and for me there is no other way of celebrating Bingu’s victory than this.”
Located at the Chichiri Shopping Mall, the Blantyre Shoprite is one of the few South African-based retail supermarkets in Malawi that stocks both edible and non-edible commodities, produced locally and abroad.
Labels: CORRUPTION, ELECTIONS, SHOPRITE
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MCP concedes, urges Tembo to resign
Font size: Thom Chiumia 22 May, 2009 09:53:00
Opposition Malawi Congress Party (MCP) has conceded defeat in the general elections and congratulated President Ngwazi Dr Bingu wa Mutharika for securing a second term of office. The party has meanwhile demanded resignation of its president John Tembo.
The call has been made in a statement issued by MCP spokesman Ishmael Chafukila and made available to Nyasa Times by the party UK chair, Chris Banda.
“In a multiparty dispensation, people should be proud to belong to a party of their choice, we, as members of Malawi Congress Party (MCP) are proud to be so. Today we feel duty bound on behalf a large number of MCP members and supporters ....to speak out and take leadership at this challenging time for the party and in order to start the process and journey for MCP to find its feet again and over the time to seek a renewed direction,” the statement said.
The statement said on behalf of MCP members and supporters, the party concedes defeat in the election and congratulate the President Mutharika and his entire party for their deserved victory.
MCP pledged to work with the Mutharika administration in developing the country and called for new leadership within its ranks.
“It is the wish of MCP members and supporters that the MCP and a new leadership must work closely with the president and his government, in a non antagonistic manner to advance the economic and social aspirations of Malawians,” said the statement issued by Banda and Chafukila.
The party said t the decision to challenge the results of the election is the wish of Tembo as an individual and not that of the entire party.
“The position of the party is that we wish to move on and rebuild our party with new leadership that fully embraces the tenets of democracy. All well wishing supporters of MCP should not allow Hon JZU Tembo to take down the MCP and deny it its rightful place in the multiparty dispensation that our country cannot effort to backtrack from,” said the statement.
“It is within his right as an individual and presidential candidate in the just ended elections to take grievances, but he should not translate that to be the position of the Malawi Congress Party and its members.
“He should not derail our recovery as a party. He must challenge the results outside the party in a court of law. He should allow the party to reconcile with its members who have spoken through this election that they do not wish to be taken for granted,” said the statement.
The party urged Tembo, 77 to let the party go and flourish and asked him to humbly resign.
“We are now making a call on Hon JZU Tembo to step aside and allow our party to move on. We have many talented Members of the Malawi Congress Party who are ready to take on the challenge of rebuilding the party. For me that process must start now,” said the statement.
“ He should do the honorable thing and step down as the leader of the party and Member of Parliament for Dedza South, He should allow a by election on that constituency and we can assure him that MCP will win back that seat with a landslide on its way to full recovery,” said the statement.
Tembo lost the election to Mutharika and has claimed it was fraudulent. He plans to challenge the results in court.
Labels: ELECTIONS, ISHMAEL CHAFUKILA, JOHN TEMBO, MALAWI, MCP
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Jazzman Chikwakwa demands accountability of K400 million CDF funds
Saturday, May 23, 2009, 7:52
Luapula Province Permanent Secretary Jazzman Chikwakwa has directed Milenge District Council to avail him with details on how it utilized K400 million Constituency Development Fund following financial irregularities that have characterized the local authority.
Mr. Chikwakwa threatened to hand over the matter to government investigation wings if the council fails to avail his office with the details of how the money was used. The audit conducted at the council revealed appalling alleged abuse of public resources meant for development and poverty reduction in the district.
Mr. Chikwakwa threatened to hand over the matter to government investigation wings if the council fails to avail his office with the details of how the money was used.
The permanent Secretary said his office initiated an internal audit on the local authority to verify allegations that the CDF allocation for 2008 had not been properly managed.
Mr. Chikwakwa said the recent internal audit report which checked and examined records and documents of the council, covering the period of August 2008 to May 5 this year, expressed concern over the way the finances were being used at the council.
He said cases ranges from unaccounted K56 million to the conversion of materials into cash by Area Ward Councilors. Other suspected incidents involve undelivered building materials, unapproved payments and many others.
ZANIS
Labels: AUDITING, CDF, CORRUPTION, JAZZMAN CHIKWAKWA
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Debt contraction
Written by Editor
IT is extremely important that those who are trying to write a constitution for us rise above personal and other narrow or petty interests. Obligations to the people of Zambia should take precedence over loyalty or commitment to self, to a political party, to a leader in power.
At no time and in no circumstances should those who are trying to give us a constitution place their personal interests first; they should subordinate themselves to the interest of the nation and the masses of our people.
They should proceed on all issues from the interests of the people and not from one's self interests or from the interests of a small group and to identify their responsibilities with the people at all times.
In our editorial comment on Thursday we urged the nation to be on high alert on the fight against corruption. We said that the signs are there, showing us that all is not well in this country and that we are still sliding along that slippery path of corruption.
We are therefore not surprised that the National Constitutional Conference (NCC) has for the fourth time failed to reach consensus on the clause in the Mung'omba draft constitution which seeks to compel government to disclose to the National Assembly terms and conditions of the loans they want to contract. On Wednesday, we carried a story where George Kunda and MMD members protested against this particular clause in the draft constitution on loan contraction. According to the story, as NCC chairperson Chifumu Banda announced that those in support of the clause were in the majority, George Kunda stood and beckoned other MMD and government officials to stand as they called for a division. After the division was granted, there was a round of applause and shouts of "ya, ya" from all those against the clause.
The question we ask is: why the applause? Is it a question of life and death to some of these people that they are ready to do anything to prevent this clause on loan contraction from being included in the draft constitution?
We are told that those who were in favour of the clause argued that it was a pillar in ensuring accountability in public debt contraction and expenditure management, that it served as a constitutional guarantee for greater financial supervision by the National Assembly and that the memories of the Vulture Fund debts which were shrouded in secrecy were still fresh. They also argued that if the provisions of the clause were to be provided for under an Act of Parliament, there would be no guarantee that the Executive would take such a bill to Parliament.
We are also told there were members who were of the view that the clause should be provided for under subsidiary legislation, arguing that while it was important to ensure transparency and accountability, there would be difficulties in implementing the provisions of the clause. And George made sure he forced government officials to support this position. It is clear from George's position that he has problems with a situation where the government is expected to be accountable. The question that begs an answer is: why are people saying there should be accountability? It is clear that the people calling for such a clause have seen a mischief in the current provisions and have asked for a change.
The recent dubious dealings of the government in the country definitely give credence to the people’s calls for accountability on this matter. The way our procurement system is being handled in this country clearly calls for strict laws that will ensure that the government borrows money for things that will improve the lives of our people and develop the country as opposed to buying mobile hospitals and 100 hearses. The refusal by the Executive to be held accountable when contracting debt raises questions as to whether there is something beyond debt contraction.
It is clear that Rupiah Banda, George and their friends in the MMD are not prepared to govern this country in a transparent manner. They are not prepared to disclose why they plan to borrow money from China and buy mobile hospitals from China because theirs is not to serve Zambians. They are afraid to take that route because they are not ready to explain their secret, corrupt dealings. And this should not be allowed. There is need for Rupiah and his friends to understand that debt contraction and its effects go beyond this generation. Rupiah, George and their friends in the NCC need to understand that the money they are borrowing now for unproductive ventures will have to be paid back by future generations. They may not see the effects of over-borrowing or committing the country to debt that could have been avoided now but the consequences can be grave. Not too long ago, our country qualified for the Highly Indebted Poor Countries (HIPC) completion point and had its debt forgiven by various bilateral and multilateral partners. During that process before the country's qualification to the HIPC, several measures to do with prudent use of finances were implemented and our people had to endure. Civil servants were actually asked to tighten their belts to ensure that the country gets out of debt and this debt had been contracted years back. Campaigns for debt cancellation were mounted by various stakeholders in the country to help our country, which could no longer sustain its debt. We eventually managed to get out of that situation but if we are not careful, Rupiah and George will drive the country back into the debt trap.
There is need for NCC delegates to look at this matter from a broader perspective as opposed to being preoccupied with self-preservation and short-term political interests. It is important for the government to be accountable to parliamentarians, civil society and all our people when committing the country to debt. Good loan procurement and debt management systems should help to contribute to sound poverty management. Yes, we agree with those who are calling for the respect of separation of powers of the three arms of government. However, involving Parliament in loan contraction will not in any way reduce the powers of the Executive. We strongly believe that there is no way the Legislature can prevent government from borrowing money if the intentions are good or if the money is aimed at investing in projects that will uplift the standards of our people who continue to wallow in poverty. The Legislature can only prevent the Executive from borrowing money if it is for projects like mobile hospitals and other unnecessary things. And that is why we need this important clause in our Constitution to prevent abuse and enhance accountability.
There are countries in Africa such as Uganda, which have provisions for parliamentarian ratification of loans in the interest of transparency and accountability and to ensure that they borrow for the right reasons. There are also countries like Namibia, which have placed a ceiling on debt contraction and cannot go beyond a certain percentage of their country's Gross Domestic Product in their borrowing. All these measures are there to ensure good governance and development for the benefit of the people. The fact that developing countries such as ours lack proper bargaining power on the loans leaves us at the mercy of international financial institutions and bilateral donors. And this is where the reality of the flaws in the distribution of power internationally comes to the fore. This is the reason why Parliament should be able to look at the conditions of all loans before the government actually commits the country.
Contractual processes should be as transparent as possible and Parliament should be involved to ensure that whatever money our country is borrowing is in line with the development priorities.
There is need for the delegates to the NCC to listen to the wishes of the majority of our people on the issue of loan contraction. We strongly believe that the involvement of Parliament will entail that every loan acquired reflects the wishes of the people because it is taxpayers’ money that will be used in repayment. We seriously need to improve our constitutional provisions regarding debt contraction and management because they are not strong enough to prevent the country from falling into another debt trap.
Labels: DEBT, GOVERNANCE, NCC
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NCC fails for 4th time on debt contraction
Written by Katwishi Bwalya, Ernest Chanda and George Chellah
Saturday, May 23, 2009 7:56:02 AM
THE
National Constitutional Conference (NCC) has for the fourth time failed to reach consensus on the clause in the Mung'omba draft constitution which compels government to disclose to the National Assembly terms and conditions of the loans they want to contract.
But UPND leader
Hakainde Hichilema has said President Rupiah Banda's government is too corrupt, irresponsible and extravagant to be allowed to acquire loans without Parliament's approval.
According to Article 312 clause 3(a) of the Mung'omba draft constitution, "The terms and conditions of a loan shall be laid before the National Assembly and shall not come into operation unless they have been approved by a resolution of the National Assembly."
The clause was subjected to a vote on Wednesday after which a two-thirds majority was not attained.
Of the 398 votes cast, 234 voted for the adoption of the clause while 164 voted against and there were no spoiled ballots.
This meant that while the majority of the members were in favour of the clause, the article could not be adopted because a two-thirds majority was not attained.
After the announcement of the results by the Electoral Commission of Zambia (ECZ), NCC chairperson Chifumu Banda told the members that the meaning of the outcome of the results would be announced later.
But under the NCC Act, once members fail to attain two-thirds majority on any clause for the second time the clause must be referred to a referendum.
Earlier before voting commenced, ministers were seen panicking after Banda resolved that the matter would be decided through a vote.
The ministers embarked on a serious campaign to lure other members into voting against the clause while others were busy making calls to invite those who had left the conference room earlier.
And while voting was underway, several ministers were seen hurriedly trooping to the main hall in order to make it for voting.
And the NCC rejected a clause that allows the office of the Accountant General to be a constitutional office.
Members argued that changing the office of the Accountant General was not in the best interest of the country but that it should just be strengthened.
Mufulira Patriotic Front (PF) member of parliament Marjorie Masiye caused inquisitions among delegates when she introduced herself as Marjory Mwape when she rose to debate.
A number of delegates were heard murmuring and asking why she could not introduce herself as Majory Masiye.
But Banda ruled that she knew her name better than the other delegates did.
Masiye was among the PF parliamentarians who defied the party's resolve not to take part in the NCC but later apologised to the party, together with Kasama Central member of parliament Saviour Chishimba.
But Hichilema castigated MMD delegates on the NCC for opposing the adoption of a clause in the Mung'omba draft constitution, which compels government to disclose to the National Assembly terms and conditions of any loan they want to contract.
"Debt acquisition is part of the public procurement of a country. We would like to see the NCC adopting the Mung'omba provision. That before the government can acquire debt they need to seek the approval of Parliament basically on the principle of the needs to borrow and the terms and conditions of that borrowing because that's where the cost lies. We do not want the government especially an irresponsible and corrupt government like the MMD to be at liberty to borrow money without parliamentary approval," Hichilema explained in an interview.
"Especially, where they have changed, altered and adulterated the public procurement Act of 2008, which they are hiding behind to now use single sourcing as a norm rather than as an exception. If they allow this corrupt MMD government to have a free hand through the Constitution to borrow, we know what they would do, they will borrow irresponsibly, and they will borrow for consumption and not for production."
He said Zambians did not want their children to be with a debt that was borrowed by an irresponsible MMD government.
Hichilema said MMD delegates were against the clause because they knew that their administration was corrupt.
"The reason is clear because they know that their government is corrupt and therefore they will use this provision in the Constitution," Hichilema said. "MMD is too corrupt, irresponsible and extravagant to be allowed to borrow without Parliament's approval. How do you define borrowing and single sourcing to buy mobile hospitals?"
He also accused the government of not having priorities.
"The public interest is to provide medicines, provide ambulances. They are buying hearses so that they can see all of us dead because of their bad management of the economy, the unemployment and the distress that is there in the country. They are focusing on the end side of life, which is death," Hichilema said.
"We know that we need a dignified burial but the priority should be to provide ambulances. We have a government, which has no priorities because you cannot argue any further, you need to save lives, to treat people."
And Hichilema said the intention by President Banda to stand in 2011 was not new.
"He believes that now that he is President he can use state machinery to stay in office. But I have a message for him and others including [Southern Province minister] Daniel Munkombwe... there is time for everything. MMD in 2011 will be in office for 20 years, the only time left for them is to move out and not to stay," Hichilema said.
"Zambians have now seen their track record, capability which is nothing to talk about. The track record is that of failure, corruption, extravagance and state sponsored violence on journalists. Their record is a record of hunger. It's laughable for them to say that they will penetrate Zambia because even people in Eastern Province are disenchanted."
Hichilema advised President Banda to prepare for retirement instead of focusing on recontesting the 2011 Republic presidency.
"RB and his team should prepare for retirement, it's the right thing for them to do. But you see they are in a hurry to steal from the poor Zambians, that's not the preparation we are talking about. They are just enjoying the corruption they are engaged in, they have just realized that they need to amass more money. We don't want them to steal from poor Zambians, we want them to prepare for exit. We are not prepared to allow them to continue stealing from the public," he said.
Hichilema said President Banda's government had failed to control the civil servants because it was corrupt.
"Come 2011 it doesn't matter how much money they would have stolen the people of Zambia would be fed up. They want to extend their tenure in office so that they steal more and perpetuate the suffering of Zambians," said Hichilema.
Labels: DEBT, HAKAINDE HICHILEMA, NCC, UPND
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Mulongoti extends Dora's stay in government house
Written by Patson Chilemba
Saturday, May 23, 2009 7:54:35 AM
WORKS and supply minister Mike Mulongoti has authorized former communications and transport minister Dora Siliya's stay in a government house beyond the stipulated 15 days.
In an interview on Friday, works and supply permanent secretary Bizwayo Nkunika confirmed that Siliya, who resigned from her ministerial position last month, was still occupying a government house.
"Yes, I can confirm to you that she's still in a government house and has asked the Minister of Works and Supply [Mulongoti] to stay a little bit longer until she finds some other accommodation arrangements, and the minister has authorized," Nkunika said. "I don't think this a constitutional matter, it's a regulation. You may recall this happened to Ambassador Lupando Mwape. When he lost his job, he was allowed to stay in the house for three months."
Nkunika said ministers of works and supply could use their discretion to allow former leaders like Cabinet ministers to stay in a government house longer than the applicable 15 days.
Asked on the time-frame in which former ministers were supposed to hand over their government vehicles upon leaving office, Nkunika said the ministers could still hold on to their GRZ numbers, until they had fully paid for the vehicles if the intention was to buy them.
Asked if Siliya was still driving a GRZ vehicle, Nkunika responded: "You can come and see me at the office. I am going into a meeting."
Siliya resigned last month in view of the judge Dennis Chirwa-chaired tribunal's findings where she was found to have breached Article 3 of the Constitution when she selected RP Capital Partners Limited to value Zamtel assets.
Labels: DORA SILIYA, MIKE MULONGOTI
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Explain Dora's presence, Sata question Shikapwasha
Written by George Chellah
Saturday, May 23, 2009 7:53:12 AM
PATRIOTIC Front (PF) leader Michael Sata has said Lieutenant General Ronnie Shikapwasha must explain Dora Siliya's presence at the Zambia International Business Advisory Council (ZIBAC) meeting in Livingstone instead of questioning The Post's picture.
And Post legal counsel Sam Mujuda on Friday invited Lt Gen Shikapwasha to visit the institution and examine more pictures of President Rupiah Banda and Siliya.
Commenting on Lt Gen Shikapwasha's letter to The Post in which he accused the newspaper of doctoring a picture carried in Thursday's edition, Sata said there were serious questions that needed to be answered concerning former communications and transport minister Siliya's presence in Livingstone as opposed to discussing the picture.
"The question is was Dora in Livingstone or not? Did Dora attend that meeting or not? It's not a question of querying the picture but the presence of Dora at that meeting with the President," Sata said. "Shikapwasha must know that, this is a picture and not a graph so we can all clearly see it. I really don't know these days what Shikapwasha's problem is. The man must just prove that our dear lady was not at that meeting."
Sata said by questioning the authenticity of the picture, Lt Gen Shikapwasha was indirectly scandalizing President Banda.
"I don't know how Shikapwasha thinks. He has made a mistake to even talk about that picture because many people who did not look at it on Thursday or paid attention to it are now seriously looking for it. So that they see what Shikapwasha is complaining about," Sata said. "Shikapwasha is not with Rupiah Banda because by talking about that picture it's clear that his intention is to scandalize Rupiah. Like I said earlier even those didn't see the picture will start asking questions and begin looking for that picture. Shikapwasha didn't mean well on this picture."
And Mujuda, who is also Post deputy editor-in-chief and deputy managing director, dismissed Lt Gen Shikapwasha's allegations.
"We are in receipt of your letter of yesterday in which you are complaining about the picture we published in our edition of Thursday 21, 2009 showing President Rupiah Banda, Ms Dora Siliya among others," Mujuda noted in a letter to Lt Gen Shikapwasha dated May 22, 2009. "You complained that the picture was computer engineered. We have verified with the photojournalist who took the picture Mr Eddie Mwanaleza and he says the picture was published as it was taken and no one has tampered with it in any way. And Mr Mwanaleza says this is not the only picture he took featuring the President and Ms Siliya."
Mujuda said The Post had no reason to believe that the pictures were engineered in any way.
"We have no reason to suspect or believe the picture was doctored in any way and we therefore invite you and any experts at your disposal to come and examine the picture and other pictures in our possession and determine in which way they have been doctored," Mujuda stated.
On Thursday, Lt Gen Shikapwasha accused The Post of superimposing images on its Thursday edition's front-page picture where Siliya sat close to President Banda at the ZIBAC meeting in Livingstone.
Lt Gen Shikapwasha claimed in a letter addressed to Post managing director and editor-in-chief Fred M'membe that the sitting arrangement portrayed to the public in relation to the ZIBAC meeting in Livingstone on Wednesday had a motive behind it.
"I wish to bring to your attention government's displeasure and exception at your newspaper's use of a picture on the front page of your Thursday, 21st May, 2009 edition, of His Excellency the President in a deceptive manner. The picture is out of malicious motive because it does not portray the true situation," Lt Gen Shikapwasha stated. "While we may appreciate what technology has brought to both you in the media and other people, it would be wrong to abuse it just to satisfy personal agendas. Anybody or any photographer who was at that meeting would attest that your picture is just computer generated whereby the President is superimposed on a position he never took at the meeting, which is that of sitting next to former Minister of Communications and Transport, Ms Dora Siliya. One wonders what your motive was in generating such a picture."
Lt Gen Shikapwasha stated that government therefore demanded a reprint of the correct picture and an apology over the alleged use of an engineered picture.
Labels: DORA SILIYA, RONNIE SHIKAPWASHA, SATA, ZIBAC
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Kunda backs Rupiah to rule after 2011
Written by Justin Katilungu in Serenje
Saturday, May 23, 2009 7:51:49 AM
VICE-President George Kunda has declared that he supports President Rupiah Banda's ambition to rule Zambia even after the 2011 general elections. Addressing a poorly attended rally at Kaunda Square Grounds in Serenje on Friday, Vice-President Kunda described President Banda as a good man and leader who should be supported in his duties as head of state.
"I want to put on record that we shall continue to support President Banda to ensure that he governs Zambia effectively; we shall also continue to support all his ambitions so that he can continue to govern this country even after 2011," Vice-President Kunda told the gathering that largely comprised children.
He said President Banda had a vision for Zambia and that he was a good man who deserved support by every well-meaning citizen.
"Those of us who work closely with him in Cabinet know that President Banda has a vision for this country," Vice-President Kunda said.
The Vice-President thanked Serenje residents for overwhelmingly voting
for President Banda in the October 2008 elections.
"We thank you greatly for supporting the election of President Banda," he said.
And Vice-President Kunda reaffirmed government's vigour to fighting corruption stressing that measures were being put in place to strengthen the Anti-Corruption Commission (ACC).
He declared that government was committed to zero tolerance on the vice and that a policy had been formulated in that regard.
"We shall intensively fight corruption by strengthening the ACC; we want to root out this vice. We are also looking at ways and means to creating a financial intelligent unit in our quest to fighting corruption," Vice-President Kunda said.
He cautioned civil servants against engaging in corrupt activities, saying they should instead help the government to implement developmental projects aimed at improving the welfare of Zambians.
Vice-President Kunda said the government was committed to fostering development in the country and that he toured Serenje to inspect several initiatives taking place.
He also announced that the government had relaxed conditions of accessing the Citizens Economic Empowerment Fund (CEEF).
Vice-President Kunda said those willing to access K10 million up to K50 million would no longer require to provide collateral but that they should show proof of a viable project and proof of ability to repay.
He said the fund was meant to empower youths, women and other citizenry.
The Vice-President also announced that government had in this year's national budget increased Constituency Development Fund (CDF) from K400 million to K600 million in its quest to fostering development.
Information minister Lieutenant General Ronnie Shikapwasha accompanied Vice-President Kunda who is on a four-day tour of Central Province.
Others in the entourage are deputy ministers for agriculture and education Albert Mulonga and Clement Sinyinda respectively and MMD deputy national secretary Jeff Kande.
Labels: GEORGE KUNDA, MMD, PRESIDENCY, RUPIAH BANDA
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Zimbabwe PM says west warming to unity government
Written by Reuters
Saturday, May 23, 2009 7:50:26 AM
HARARE (Reuters) - Zimbabwe's Prime Minister Morgan Tsvangirai believes Western donors are beginning to warm to the country's new unity government and could soon provide financial aid, he said in a newspaper interview published on Friday.
Tsvangirai formed a power-sharing government with long-time rival President Robert Mugabe in February, but the new administration has struggled to raise funding needed to fix an economy ravaged by hyperinflation.
Western donors, seen as key in raising much of the government's $8.3 billion funding requirements, are holding back aid and demanding broad political reforms.
But in an interview with South Africa's Star newspaper, Tsvangirai noted a shift in attitudes among foreign donors.
"There has been some positive engagement with them. They have moved from total disregard of what has happened to scepticism, and now they are saying there is progress, though not sufficient," Tsvangirai said.
"So they all accept that there is change taking place and that change must be consolidated. They will eventually open (their purses)."
Tsvangirai warned that any delay in extending credit lines and balance of payments support to Zimbabwe would delay economic recovery.
The unity government this month announced it had surpassed its $1 billion target for credit lines to private firms from African banks, but said it was struggling to get budgetary support.
Finance Minister Tendai Biti cut the country's 2009 budget by almost half in March, acknowledging the difficulties the government was facing in getting revenue.
On Thursday, Tsvangirai announced that the government had resolved most disputes in implementing the unity pact, but remained deadlocked on the appointments of the attorney general and the central bank governor.
These outstanding matters have been referred to the Southern African Development Community (SADC) and the African Union, which brokered the power-sharing deal.
Western donors are also reported to be pushing for central bank reforms, including the dismissal of the governor, whose tenure was marked by hyperinflation.
Labels: MORGAN TSVANGIRAI, NATIONAL UNITY GOVERNMENT
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Dutch government suspends aid to Zambia's health ministry
Written by Chansa Kabwela and George Chellah
Saturday, May 23, 2009 7:48:55 AM
THE Dutch government has suspended aid to Zambia's health sector following allegations of corruption in the Ministry of Health (MoH).
Dutch development minister Bert Koenders on Thursday announced that Netherlands had suspended all financial assistance to the Ministry of Health following revelations by the Anti Corruption Commission (ACC) of a K10 billion scam by some government officials.
Koenders said the abuse of Dutch tax money was unacceptable.
"While awaiting the outcome of a corruption investigation, the Netherlands has suspended all financial assistance to the Zambian Health Ministry," Koenders said in a statement according to the Radio Netherlands Worldwide (RNW) website. "The abuse of Dutch tax money is unacceptable."
Koenders said all donors to the country's health sector were alerted and results of an investigation into the matter were expected shortly.
The Netherlands contributes about 13 million Euros [about K92 billion] annually for the funding of rural health care provision, the prevention of malaria, tuberculosis and HIV, and the training of medical staff in Zambia.
The decision by the Netherlands government to suspend aid follows the move by the Swedish International Development Cooperation Agency (Sida) to stop its planned release of funds to the Ministry of Health following the alleged K10 billlion scam unearthed by the ACC.
Sida, a government agency of Sweden, was to release 88 million Swedish Kronor [about K59 billion] to the Ministry of Health.
The agency noted that the ACC and the Office of the Auditor General acted promptly and that they hoped to get clarification on the matter.
"Sida, The Swedish development agency, has stopped its planed release of funds to the Zambian health sector after the Anti Corruption Commission, ACC, found irregularities surrounding the use of the health ministry's money," SIDA headquarters noted in a statement on Tuesday. "The ACC suspects one or several officers within the ministry of having stolen public money. Both the Anti Corruption Commission and the Office of the Auditor General have acted promptly and we hope to soon get clarifications on what actually happened."
Head of Sida in Zambia Charlotta Norrby said the agency would not accept any abuse of development funds.
"Sida will not accept any abuse of development money," Norrby stated.
Recently, the ACC unearthed a corruption scam in which over K10 billion government funds were suspected to have been corruptly obtained from the Ministry of Health.
The commission is investigating a former human resource manager in the Ministry of Health, Henry Kapoko, in connection with the alleged corruption, theft and fraud.
The ACC has also seized and restricted property in excess of K3 billion allegedly belonging to Kapoko who now works at the Ministry of Local Government and Housing in the human resource department.
An audit report by the Office of the Auditor General on the Ministry of Health was expected to be ready by yesterday.
And former finance minister Ng'andu Magande yesterday said the recently unearthed K10 billion scam and the subsequent freezing of funding to the Ministry of Health by Sweden was frustrating because the late president Levy Mwanawasa's administration worked hard to gain credibility and trust of donors.
Commenting on the decision by Sida to stop its planned release of funds to the Ministry of Health following the corruption allegations, Magande said the happenings of the recent few days were not very positive.
"The K10 billion that was mentioned in the Ministry of Health, the K900 million on road works in Chipata. These are very sad developments to some of us who were so close to getting this country's huge debt forgiven," Magande explained. "Getting the confidence of the donors, travelling all over the world at night in minus 10 degrees to get things done. These are very sad developments... to me personally I feel frustrated because I was one of those who kept asking Zambians to sacrifice and that at the end of the sacrifice we are going to see a lot of money coming."
He said donors had been giving Zambia money.
"The international institutions have been giving us cheap loans and to hear that this kind of money ends in the hands of officials who don't care even for the lives of people is extremely sad. And it doesn't show really that we perhaps are in control of things," Magande said. "In as much as people would say 'it is not us now who were responsible'. They might be right because some of them definitely don't know how much we suffered, some of us with the officials at the Ministry of Finance to try to get these donors to understand that. For them, they were in the comforts of their offices or their farms that is okay."
Magande said Zambians must show concern.
"It was not done for Magande, it was not done for Mwanawasa and it was not done for the permanent secretary budget or the secretary to the treasury. It was done for Zambians and every Zambian must show concern," Magande said. "The question of trust is on individuals, on the leadership of a country and on the leadership of the government and the people in government. The leaders must still work hard to show that they are people that are running this country with integrity, morals and efficiency. That's the only way our friends are going to continue to trust us."
Magande said the late president Mwanawasa's administration worked hard to gain credibility and trust.
"A lot of things are happening now and it's sad. I personally having been trying to get those things done and as one of the members who is alive...it's a pity the president is not here. Even if he was in retirement he was going to tell you how hard he worked just to get the acceptability of the international community," Magande said. "I want to appeal to the donors that please they should not completely abandon the Zambians because in Zambia there are people that can be trusted. "
Magande said the Zambian government needed to approach the donors and give them its word and then live by that word and be trustworthy.
Zambia's health sector is funded by several donor countries and organizations such as SIDA-Sweden, Canadian International Development Agency (CIDA), Commission of the European Union, Department for International Development of the United Kingdom (DFID), International Development Association - World Bank, Embassy of Japan, Embassy of the Kingdom of the Netherlands, United States Agency for International Development (USAID), Global Alliance Vaccine Initiative (GAVI) and Global Fund for AIDS, TB and Malaria (GFATM).
Others are the Clinton Foundation, World Health Organisation (WHO), the joint United Nations Programme on HIV and AIDS (UNAIDS), United Nations Children's Fund (UNICEF), United Nations Population Fund (UNFPA) and United Nations Development Programme (UNDP).
Labels: CORRUPTION, DONORS, MINISTRY OF HEALTH
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Malawi president sworn in for second term
Written by Mabvuto Banda
Saturday, May 23, 2009 7:47:08 AM
LILONGWE (Reuters) - Malawi's President Bingu wa Mutharika was sworn in for a second term on Friday after winning re-election on a platform of economic growth and food for the poor, but the opposition said he rigged the vote. The Electoral Commission declared wa Mutharika the victor early on Friday in a ballot widely viewed as a test for political stability in the southern African country.
After being sworn in, Wa Mutharika vowed to prioritise food security and to keep up a fight against corruption that won praise from international donors.
"I shall continue to fight corruption because it is evil...it robs the poor and denies them their legitimate right to a decent living," he told a huge crowd at a stadium in the commercial capital of Blantyre.
Wa Mutharika's party also won a parliamentary vote, which should ease a standoff with the opposition that has almost paralysed government and unnerved donors and investors in the poor nation whose economy is one of the world's fastest growing.
"With wa Mutharika, we are likely going to see a positive economic performance as he has already demonstrated," the Economic Association of Malawi (ECAMA) think tank said. "Overall, we envisage economic fundamentals remaining strong."
Wa Mutharika based his campaign on a record of making Malawi a net food exporter and delivering three years of growth above 7 percent in the country of 13 million, where annual gross domestic product is only $313 per capita.
The Economist Intelligence Unit says Malawi is the world's second-fastest growing economy.
The incumbent won 2.7 million votes in the presidential poll, with 93 percent of ballots counted. His closest rival John Tembo won 1.2 million.
The president's Democratic Progressive Party took 91 of 193 parliamentary seats, Tembo's Malawi Congress Party (MCP) won 25 and the United Democratic Front (UDF), which joined the MCP in an opposition alliance, won 17. Independent candidates took 26.
But Tembo cried foul, saying he had evidence wa Mutharika rigged the vote and would go to court to prove it.
"We have decided to press ahead and challenge the results in court," Tembo told Reuters, without providing details.
Wa Mutharika was sworn in at a ceremony attended by several southern African leaders, including Zambian President Rupiah Banda and Zimbabwean President Robert Mugabe.
A Commonwealth election monitoring mission said on Thursday wa Mutharika had exploited state television and radio to gain an unfair advantage but that overall the election was well managed and the opposition should drop its protest.
The Southern African Development Community (SADC) noted media coverage bias but said the vote was credible and fair.
Former president and UDF leader Bakili Muluzi, who was excluded from standing himself but had formed an alliance with Tembo, acknowledged wa Mutharika had won and said he would support the new government.
Muluzi has been an arch rival of wa Mutharika and a protracted power struggle between the two almost paralysed parliament, prompting a failed impeachment bid and allegations of a coup plot that unnerved Western donors.
Labels: BINGU WA MUTHARIKA, CORRUPTION, ELECTIONS, MALAWI
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COMMENT - So countries should get off aid, but corporations shouldn't?
Moyo endorses bailing out of private companies by govts
Written by Nchima Nchito Jr
Saturday, May 23, 2009 7:45:06 AM
ECONOMIST and author of Dead Aid Dambisa Moyo yesterday said there is nothing wrong with gover nments bailing out private companies to save their economies.
Featuring on Radio Phoenix’s Let the People Talk programme, Moyo said the principle of bailing out companies was sound as long as the reasons behind it were right, citing the US where the government bailed out businesses in an effort to salvage the economy.
She was responding to a question on whether it was right for the government to refuse to bail out Zambian Airways following the suspension of the airline’s operations early this year due to operational difficulties.
“First of all, you have to have resources in order to bail out a company and also as I said, it’s important to understand what the implications of the collapse of one entity will have in terms of ripple effects for the economy as a whole,” she said.
Moyo added that the government could have had its own reasons for choosing what to bail out and when.
“Perhaps a one relatively small airline in the context of the economy may not be something that the government will view as a priority because they are competing needs obviously in the country with respect to education, and health care and so on so the government has to make a choice,” she said.“As I said, this is simply a superficial argument coz like I have just been reading the newspapers to know what’s happening with respect to Zambian Airways and not because I don’t know any intricate details.”
And Moyo said Africans had allowed both local and international media to negatively portray the continent.
“The tendency is to focus on war, poverty, disease and corruption and yet there are so many amazing things about our continent,” said Moyo.
“One of the hard truths is that we are responsible as Africans for tolerating the fact that the world continues to paint us in such a negative way, our leadership I believe should take a stand and say this is not the way we want to be portrayed. You know there are places that are desperately poor like many people in India, the billions of people round the world. Places like China still have significantly large populations of poor people but nobody feels sorry for them.”
Labels: DAMBISA MOYO, HYPOCRISY, NEOLIBERALISM
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MBT urges more agro-oriented loans for small-scale farmers
Written by Nchima Nchito Jr
Saturday, May 23, 2009 7:41:46 AM
MICRO Bankers Trust (MBT) has called for
more agro-oriented loans among financial institutions to be directed to small-scale farmers in rural areas. In an interview, MBT Financial Services programme coordinator Bernard Lusale said the agriculture sector needed a lot of support to attain its full potential.
“There is a lot of demand for financial services in rural areas and this is mostly by small-scale farmers,” he said. “That demand is creating a lot of pressure to mobilise finances.” Lusale said the lack of access to finances, among other challenges, impacted negatively on the farmers’ ability to increase productivity. He also welcomed the opening up of the banking sector in Zambia which he said had seen the arrival of four new banks within a few months.
“The arrival of these banks is a welcome development. However my only concern is that these banks should not only concentrate on the line of rail but also strive to penetrate the unbanked population in the country,” he said.
Bank of Zambia assistant director for regulatory policy and licensing Nobbert Mumba recently affirmed that only 33 per cent of the Zambian population was banked. Lusale further said the challenges being faced by the farmers tended to also hinder income generation. “The farmers have to face the challenges of a not readily available market for their produce thereby negatively impacting on their income potential,” he said. Lusale pointed out that his organisation had a deliberate policy of focusing on the agriculture sector in terms of financing.
“We have given out about K2.2 billion in loans to individuals and small-scale farmers in a bid to boost the agriculture sector,” he said. Lusale however said the high cost of delivery of financial services especially in rural areas posed a big challenge to financial institutions.
“Working against such challenges, we have to also deal with the devaluation of the kwacha against other currencies coupled with high interest rate. These factors tend to make the micro-lending business a challenge,” said Lusale.
Labels: AGRICULTURE, CREDIT FACILITIES, MBT
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Zambia’s weak implementation affects access to World Bank funds
Written by Chiwoyu Sinyangwe
Saturday, May 23, 2009 7:40:09 AM
ZAMBIA fails to access more funding from World Bank through the International Development Association (IDA) owing to the country’s weak implementation effectiveness. This is according to the latest annual Country Portfolio Performance Review (CPPR) held between the government and the World Bank on May 14, 2009.
IDA portfolio in the country currently has total net commitments of US $305 million for ten interventions, of which 52 per cent has already been disbursed.
World Bank country communications specialist Jumbe Ngoma, who announced this in a statement released yesterday, stated that the objective of the CPPR was to assess the performance of the International Development Association (IDA) portfolio in Zambia with a view to improving implementation effectiveness.
“It was observed that the performance of the portfolio has improved over the past two years due to the government’s commitment to resolve bottlenecks quickly,” the statement read in part. “…however, Zambia's performance in relation to other countries could be enhanced further, in order to have a higher Country Performance Rating (CPR) and therefore, a higher IDA allocation. The government and the World Bank agreed to scrutinise a list of issues identified during the CPPR and prepare an action plan that would guide implementation support to the IDA projects.”
And commenting on development, Ministry of Finance and National Planning acting permanent secretary for Financial Management and Administration Berlin Msiska appreciated the process of identifying the bottlenecks and the mapping of how to deal with them effectively.
“I am pleased with the frank exchange of ideas that has taken place today. We therefore need to ensure that the shared ideas are integrated into the management of each project under the World Bank auspices in order to improve effectiveness,” said Msiska.
And World Bank country manager Dr Kapil Kapoor said that he was pleased with the focus of the review and that successful implementation was what would bring results.
“We must bear in mind that these resources are loans, even though they carry high grant element of 70 per cent, they need to be repaid by Zambia,” said Dr Kapoor. “As such, it is important that we show the impact of the projects. The impact will only be appreciated if the poverty levels are reduced.”
The CPPR was co-chaired by Secretary to the Treasury Likolo Ndalamei, officials from Ministry of Finance, Dr Kapoor, several permanent secretaries and other senior government and World Bank officials.
The next CPPR meeting is scheduled for 2011.
Labels: IDA, World Bank
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Dr Gono's letter to PM Tsvangirai
Full text of Reserve Bank Governor, Dr Gideon Gono's letter to PM Tsvangirai
Thu, 21 May 2009 01:11:00 +0000
The Rt. Hon. Prime Minister of the Republic of Zimbabwe Mr. M. R. Tsvangirai
Munhumutapa Building
Samora Machel Avenue
HARARE
Rt. Hon. Prime Minister, Sir,
RE: COMPLAINT AGAINST PERSONAL VICTIMIZATION AND VILIFICATION BY HON. MINISTER OF FINANCE T. L. BITI.
1. As you may be aware Hon. Prime Minister, the strained relations between the Hon. Minister of Finance and myself are a matter of public knowledge and, need I say, concern.
2. For more than a year now, the Minister has uttered, publicly and privately, words and statements that are not only criminally defamatory but also, seriously insulting to my person, family and indeed, to the institution that I work for, its Board, management and staff. His misleading statements are also career limiting in my field of Finance and economics.
3. Professional disagreements in public offices are a matter of daily life for public personalities but constant and malicious misrepresentations, unrestrained utterances, incitement of violence against the person of the Governor, outright lies and victimization against persons doing their normal duties are traits normally unheard of especially coming from “Offices that are supposed to know and act better”
4. Examples may drive home the point:
(a) At a campaign rally in Masvingo last year, Hon. Minister called me names and accused me of “being at the epicenter of ZANU (PF) terror machine”; “an economic saboteur, terrorist and number one Al-Qaeda who deserves to be shot by a firing squad”
These utterances were widely circulated both in the print and electronic media and today form the basis of the hate-mail that I receive and the hatred many MDC-T supporters display against the Governor. Indeed the international community has also been poisoned to believe that I am a member of the terrorist group Al-Qaeda. These threats to my life and family are very unsettling and may one day be carried out by an over-zealous MDC-T Party Member or just criminals hiding behind the Minister’s publicly declared wishes of getting me killed.
(b) On several occasions, the distinguished Minister has accused me of “killing this economy through printing money”. This is despite the overwhelming evidence that the country was and remains under the yoke of debilitating sanctions and other constraints such as droughts/floods and political differences all of which are/were militating against international support in the area of Lines of Credit among other needs. The Hon. Minister only came to acknowledge on Monday 4 May, 2009 when he returned from the IMF/World Bank Spring Meetings held in Washington DC. USA that SANCTIONS are “real” and that they need to be removed if we are to turn around this economy. This admission was despite previous denials.
5. Now if indeed the Hon. Minister, after only 3 months in office is now realizing that this economy cannot be stabilized let alone turned-around without the repeal of ZIDERA and other pieces of “restrictive” actions by some economic powers in the West, and that without such a repeal of these toxic pieces of legislation and actions against Zimbabwe, the country cannot access the much needed lines of credit, how did or does the Hon. Minister expect me to successfully turn-around this economy in the presence of ZIDERA which some have accused him of having participated in its “birth” and “sustenance” over the years?
6. After my three (3) children were unceremoniously expelled out of Australia before your visit to that Country, Sir in 2006 they suffered a two year roll-back in their university education, and when they found new universities to go to, they found themselves being called upon to explain how their father is allegedly associated with the Al-Qaeda terrorist organization with the threat of further expulsion from their new university if the allegations were/are not refuted. Who among us parents can stomach such misfortune if directed at their own children?
7. It is a known fact that Leadership is not about expecting others to perform miracles where the leader himself cannot perform same. What is difficult to achieve for the Hon. Minister today (raising lines of credit) is a fraction of what my team and I were expected to achieve in an environment of not only ZIDERA but serious political and social in-fighting between Zimbabweans prior to the Inclusive Government.
8. A lot more “kiya-kiyering” was and had to be done to sustain the economy, sustain life and everything else this Inclusive Government found in place. Without such gymnastics including the so-called printing of money or “quantitative easing” as they are now calling it in Europe and elsewhere, this country could have easily degenerated into unprecedented chaos with no opportunity ever for anyone in the Inclusive Government to be in the comfortable positions from where they are now calling the “shots” today.
9. I have suffered and continue to suffer abuse and ridicule at a time when you as Prime Minister have been telling the Nation that bye-gones are bye-gones and that we need to move forward but this message doesn’t seem to have found root in some quarters.
10. You know very well Rt. Hon. Prime Minister that people are being highly dishonest when they allege that it is/was the Governor of the Reserve Bank who “killed” this economy for I do have on file, letters from Ministers of Finance and other stakeholders including Labour and Business dealing with requests for funding and/or authorizations to move in a given direction.
11. I believe that it needs to be appreciated, Rt. Hon. Prime Minister, that the last ten years have been a period of both political and economic madness in this country and that the work of sanctions-busting, the world-over, is not a walk in the garden park or a straight-forward text-book lesson and practice from an Apprenticeship Economic textbook.
12. Sanctions are a form of war-fare against the sanctioned country or people and my job was to try and defeat them, not physically but through “out-of-the-box” type of thinking strategies all of which had the blessings of my Head of State and President Cde. R. G Mugabe whom you are free to check and verify with, as well as the entire Cabinet of the day.
13. It is heartening to note though that Hon. Minister Biti is following the same path, going to the same African Banks and friends who stood by us during the said period of madness and only last week, the Hon Minister happily and proudly ran with and announced to the world facilities that my team and I had negotiated and secured namely the US$300 million Country Program from Afrieximbank which was approved in Mauritius on 12 December 2008 and the PTA Bank facility, again which we had negotiated last year and was awaiting activation.
14. These two institutions, together with Al-Shams linked to Mr. Jayesh Shar, are the three main sources of funding who helped us during difficult times. Today it is an open secret that Hon. Minister Biti is going to all of them for support and all three are supporting the Inclusive Government at a critical time when noone else, including the so-called donor community is giving us funds due to understandable economic difficulties in their own backyards.
15. The point here Rt. Hon. Prime Minister is that nothing my team and I did is not being followed by the new Minister of Finance and I can point out that 99% of our recommendations for the turn-around of this economy have been included in STERP (see attached analysis and evaluation document).
16. This is not to take away anything/credit from the Hon. Minister’s well received STERP but to draw attention to the need for “modesty in pronouncements made and credit taken while standing at the pulpit” so to speak when the Minister is addressing stakeholders.
17. It is against this background that charges to the effect that this Governor and his team “murdered” or committed atrocities in this economy are hereby vehemently denied.
A LOT SAID, DONE AND MISREPRESENTED…
18. A lot has been said by the distinguished Hon. Minister, done and misrepresented all in an effort to destroy the Governor, to remove me from the post (as if I re-appointed myself!).
WHERE IS ALL THIS HATRED COMING FROM?
19. In trying to examine the possible angles from where such personal hatred, venom and attacks have been coming, it has dawned on my team and I, that all this noise about “Governor must Go song” especially as it rings loudest from the powerful Secretary General of MDC-T and Minister of Finance may have its background in self-interest and protection. The background to it is as summarized in the attached write-up involving the Hon. Minister’s Legal Firm, Honey and Blanckenberg.
20. The background involves the Bank’s investigation into alleged rampant externalization of foreign currency resources and money laundering activities discovered at the Minister’s legal firm Honey & Blanckenberg where he is (or was) a partner.
21. After getting a tip-off on the case in which the Law Firm was allegedly prejudicing the country of the much needed foreign currency and possibly tax-revenues due to Government through such Exchange Control Violations, my team investigated the Firm’s Records (those which had not yet been deleted by then) and came up with a “can of worms” suggesting that the Firm could have been involved in these forex scams from before 2003.
22. As the attached summary will show you, in the few months that the investigating team considered, it uncovered a total of over US$1 million which was allegedly kept outside the country in violation of Section 9, 10(1)C and 11 of the 1996 Exchange Control Regulations.
YEAR AMOUNT
October 2005 US$102 210.00
November 2005 174 179.00
December 2005 110 664.00
January 2006 139 758.00
February 2006 145 939.66
March 2006 168 047.11
April 2006 153 281.00
May 2006 31 864.50
TOTAL US$1 025 943,53
Records for other months were allegedly deleted before the investigating team could lay their hands on them.
23. Intimidatory tactics are said to have been encountered during these investigations leading to various forms of delays in the completion of this assignment/case.
24. Ultimately as the attached report shows, one of the whistle-blowers who was employed by the Law Firm had to leave the Firm due to alleged victimization, the same that I am suffering from today.
25. Of course legal explanations, arguments and justifications were proffered by the Law Firm, as would be expected, but these were found to hold no substance as it was proven that the Honey and Blanckenberg as a Law Firm were banking their money into Barclays Bank PLC, Barclays House, Victoria Street, Douglas, Isle of Man via UK, account details being:
Swift Code: BARCGB22
Account No. 68949366,
Sort Code : 20-26-74.
IBAN : GB95BARC20267468949366.
26. The case and its facts were analysed by the Bank’s legal personnel in the normal way that the Bank does with all other cases before deciding to go ahead with prosecution and as we speak, the matter is yet to come to actual trial although it is at the courts.
27. With Advocate Eric Matinenga the one set to be Accused Firm’s defence lawyer, (as of January 2009), my team members, seeing what victimization is being meted against the Governor, is now expressing reluctance to go and stand in court to testify against the Minister of Finance’s legal Firm.
GOVERNOR’S VICTIMISATION…
28. The issue now at stake is, how come the Governor continues to be victimized for doing his job while the Rt. Hon. Prime Minister, who is supposed to be in the picture of all this “through ministerial declarations of interest or conflict(s) with institutions or persons that the Ministers deal with under their Ministries?
29. It is not difficult to conclude that threats of investigating the Governor “left right and centre” as well as putting the Governor on the GPA list of persons who must go has all along been motivated by the desire to intimidate the Governor and his team or at best to scandalize and remove me from the scene so that a pliable Governor is put in my place and certain matters then get buried under the carpet in the process.
30. This also explains the “personal hatred” nature of the Minister’s zeal, enthusiasm and speed with which he seeks to remove the present Governor from the Chairmanship of the RBZ Board in conflict with best practices in SADC, IMF, World Bank, China, Russia, UK and the world over. The pre-occupation is total and no stone has been left unturned todate to try and achieve this.
31. Is this the policy or policies of the Inclusive Government to victimize its officials or that of MDC-T to disguise personal wars and camouflage them as national matters of incompetence?
32. There have also been various misrepresentations made to Cabinet and Cabinet Committees by the Hon. Minister relating to false allegations of “borrowing US$1 billion without authority” which proved embarrassing to the Minister when refuted with evidence.
33. Are the Parties (MDC-T) aware that they are being enjoined in a personal war far removed from national issues but financial at personal levels? Are SADC Heads of State or the Facilitator, the IMF/World Bank and others in the picture of this scandal?
34. There is more that I could say and have come up with to prove a case of victimization against me but it is not necessary to deal with those issues now.
PROPOSED WAY FORWARD
35. Rt. Honourable Prime Minister, herewith my proposals for the way forward:
(a). That this letter be discussed between yourself and the Minister and if you see it fit, failing which I propose that it be brought for discussion in Cabinet or Parliament or JOMIC and, that, I be called upon to testify if need be.
(b). That RBZ be granted autonomy in the current legislative amendments to report to Parliament as recommended by SADC in its Model Central Bank Legislation – copies of which were sent to the Rt. Hon. Prime Ministers Office and not the current Minister of Finance until the Hon. Minister renounces his vindictive mission against me.
(c). That the Hon. Minister and myself be invited for discussion with the Rt. Honourable Prime Minister to iron out the issues I have raised and to normalize and our relationship.
(d). That the Governor and team be given/granted immunity/protection at law against victimization by the Ministers, some of whom may have been involved in nefarious/regrettable activities before. Otherwise all RBZ Governors will continue to face the same fate that I am facing and experiencing, disguised as national desire to do good yet the reality is that deep down there are personal interests at stake in need of protection.
(e). That a public apology be made to the Governor by the Minister of Finance and both MDC-T and MDC-M Parties and their followers be informed that the Governor did not “kill” this economy and that he is not a member of Al-Qaeda nor does he deserve to be shot by the “firing squad”. In addition a smart way has to be found to advise the International Community of the true facts so that it gives a correct and informed judgment on the Governor.
CONCLUSION
36. It is not unusual for two or more people to fail to work together and if I am to leave RBZ at some stage, as I will in future, the current approach and strategy is definitely not the correct one.
37. There are better, more mature, effective, cordial and amicable ways of people partying ways but not in the manner of the “PURSUER” and the “PURSUED”, the “Victor” and the Vanquished”. That approach does not work in the area of economics and finance.
38. I await direction(s) from the Rt. Hon. Prime Minister.
Yours Sincerely
G. GONO
GOVERNOR
Labels: CORRUPTION, DEATH THREATS, GIDEON GONO, MDC VIOLENCE, MORGAN TSVANGIRAI, SANCTIONS, TENDAI BITI
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