Monday, July 25, 2011

Rupiah’s house giveaways act of desperation, says Mutesa

Rupiah’s house giveaways act of desperation, says Mutesa
By Kombe Chimpinde
Sun 24 July 2011, 14:00 CAT

PRESIDENT Banda’s ‘father Christmas’ policy of giving away institutional houses around the country which he did not build is an act of desperation, says Dr Fred Mutesa.

Commenting on President Banda’s decision to sale state electricity utility Zesco Limited’s houses to tenants at a giveaway prices, Dr Mtesa, who is Zambia Empowerment for Development (ZED) president said that while home ownership was one of the key components of economic development, it should be clearly and properly implemented.

“In 2009, the National Construction Council (NCC) informed the public that Zambia needed about one million to offset the national housing deficit of over one million houses in Lusaka alone. Over 70 per cent of the population also resides in unplanned settlements which lack basic social amenities,” Dr Mtesa said.

“While benefiting the tenants, it is clearly no sustainable way of addressing the housing deficit in the nation.”

Dr Mutesa said that judging by the manner in which President Banda, who he said was merely borrowing from late former president Frederick Chiluba’s political gimmicks, lacked a clear policy on housing.

He warned that giving away houses to gain political mileage would not help President Banda win elections because they were many challenges beyond just lack of ownership to houses such as basic social amenities.

“Desperation is therefore the only way of interpreting Mr. Banda’s ad hoc housing policy but he must realise that government will not stop the will of the people,” Dr Mtesa warned.

“President Banda needs to be reminded that eleventh hour appeasement acts do not sway the will of the people. Last time this measure was resorted to was when the late second president, may his soul rest in peace-tried to win over Zambians to his third term bid. It was not enough to change the minds of Zambians,” Dr Mtesa said.

He urged President Banda to desist from reckless measures as this had the potential to reverse the few economic gains that the country had made.

Dr Mutesa added that the action of giving away houses that belonged to Zesco was a gross violation of corporate governance norms.

“Zesco has a board of management team which should be directing its affairs. The MMD is overstepping its jurisdiction in the hope of picking up a few votes. We all know that Zesco currently is in urgent need of recapitalisation to cope with the increase in demand for electricity,” said Dr Mutesa.

Last week President Banda offered over 200 houses belonging to Zesco in Kafue Gorge for sale to tenants that are currently occupying them most of whom are non-Zesco employees.

This was shortly before he officiated at the ground-breaking ceremony for the development of Kafue Gorge Lower hydro power station.

In April this year, President Banda wrote off the debt on over 3,300 parastatal homes on the Copperbelt during his visit to Kitwe.

The decision was followed by an ad hoc, Home Empowerment Policy, which will provide for writing off of all outstanding debt owed on residential parastatal properties offered for sale to sitting tenants by the Zambia Consolidated Copper Mines (ZCCM).

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