Prof Chirwa must be given support, says Kashita
By Kombe Chimpinde
Mon 19 Nov. 2012, 15:50 CAT
ANDREW Kashita says Professor Clive Chirwa must be given the necessary support and space to transform the operations of Zambia Railways.
Commenting on President Michael Sata's appointment of Prof Chirwa as Zambia Railways chief executive officer, Kashita, who is also former works and supply minister, said he had no doubt that Prof Chirwa would deliver.
"I have no doubt that Professor Chirwa is an excellent and competent man for the job. I have confidence that he will transform the operations of the railway service which was destroyed by selfish people," Kashita said.
"It is also good that he is tied to a timetable (contract). I only hope that those people who have got their so-called favoured candidate, employee will not frustrate him. Let him sort out the problems that are there. I am quite sure that as he gets his job and sits in office, he will tell us the exact detail of what he intends to do."
Kashita hoped he would not experience the same disappointment he had when former Food Reserve Agency executive director David Matongo, whom he thought was the right man for the job was relieved of his duties within a short period of time.
"He went there, had a lot of competence but he never settled, he never sorted out the problems there and he never even told us what had happened. When Professor Chirwa comes on board, let us allow him to give us his plan. He is an engineer with drive and self-motivation," Kashita said.
"I am quite sure the communication and transport minister will be around to assist when he needs support in any particular area," he said.
He added that an effective and reliable railway service was vital in the country to reduce the cost of doing business that continues to rise.
Prof Chirwa has given himself three years to transform Zambia Railways.
Labels: ANDREW KASHITA, CLIVE CHIRWA, MICHAEL SATA, ZAMBIA RAILWAYS
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Zamtel should assume optic fibre upon paying market value - Kashita
By Chiwoyu Sinyangwe
Sat 07 July 2012, 13:24 CAT
ZAMTEL should only assume the Zesco optic fibre upon paying a market value for the asset without compromising the power utility's ability to monitor the safety of its installations, says Andrew Kashita.
And Kashita says finance minister Alexander Chikwanda should intervene in the fight over the initially US$13 million Zesco asset and at the same time constitute a forensic audit to determine the correct status of the Zamtel optic fibre project.
Government sources have disclosed that Zamtel, through managing director Dr Mupanga Mwanakatwe, is pushing to wrestle back the Zesco optic fibre from the power utility after the government reversed the sale of the telecommunications company.
And communications minister Yamfwa Mukanga said he would like to see Zamtel takeover the Zesco optic fibre, saying "Zesco is a company that is supposed to execute electricity and energy-related issues, and communication issues are for Zamtel" and that Cabinet will decide on the matter.
The matter is expected to be tabled before Cabinet to decide ownership of the asset grabbed from Zesco and given to Zamtel at the height of the ill-fated 75 per cent sale of the telecommunications giant to Lap GreenN of Libya. The optic fibre was reverted to Zesco after the government aborted the US $257 million sale of Zamtel last January.
Energy minister Christopher Yaluma said he will heavily defend Zesco's optic fibre from being ceded to Zamtel unless the latter agrees to pay the capital expenditure invested by the power utility.
Kashita, a former communications minister, said there was need to resolve the wrangle of the optic fibre to benefit the Zambian people.
He said there was need for Chikwanda who holds shares in two firms on behalf of the Zambian people, to decide in the interest of the country.
"If on business consideration, it is found that Zamtel is the better company to run even the Zesco's investment optic fibre, then that should be done but Zesco should not be deprived of its right to use the communication system for its own house telemetry to allow them know what is happening on the line," Kashita said in an interview.
Kashita who said Zesco needed to safeguard its ability to closely monitor the safety of its installation using the fibre optic, said the commercial viability of the asset was the source of the current wrangles.
"Zesco has a duty to make sure that they know what the fault is; where the fault is and how long they are going to put it right using this technology telemetry," he said.
"We must use the optic fibre to the benefit of Zambia and not get stuck in squabbling between state-owned enterprises. Therefore the ministers cannot put a coin in the air and say 'head you win; tail you lose'. There must be a business analysis of what is the best for the country but Zesco has a duty…necessity to tell at any time where the fault is."
Kashita who blamed the MMD regime for what he termed lack of foresight said Zesco and Zamtel optic fibre projects were "duplicated investments" and that there was need to investigate the current status of both optic fibre projects to determine their current status and viability.
"What is the capacity that Zamtel has where there is a duplication compared to what Zesco has? If the capacity of both is big enough to accommodate present demand, fine," said Kashita.
"If it isn't, Zesco will be told that you have to make available and so much will be paid but they must control the charges because optic fibre should cost the same. If it comes to compensation, it must be done as a business because these are two separate businesses and they must be treated as such. Each one will say we invested this much, so, they must be a forensic audit of that investment to show that it was a genuine investment in fibre optics."
Labels: ANDREW KASHITA, OPTIC FIBRE, ZAMTEL, ZESCO
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Valuation of Zanaco wasn't done properly - Kashita
By Kabanda Chulu
Tue 31 Jan. 2012, 13:00 CAT
THE valuation of Zanaco Plc assets was not done properly because
some properties owned by the bank are worth more than the K42 billion (US$ 8.25 million) paid by Rabobank, says Andrew Kashita.
Welcoming President Michael Sata's directive that the sale of Zanaco be investigated to ascertain if the transaction met the criteria of the privatisation programme, Kashita, who was a minority shareholder at the time the bank was sold, said many concerns were raised but the previous government gave no answers.
He said it was a big anomaly to offer the bank for sale in 2007 based on 2004 financial accounts.
"During campaigns for 2006 elections, late President Mwanawasa announced that government has no intention of selling the bank but in 2007, they changed their minds and sold the bank without informing Zambians, including some of us who had minority shares. They also brought the ZNOC debt of K248 billion to Zanaco," Kashita said.
"As shareholders, we demanded to see the evaluation report to understand how the value of shares was determined to arrive at this figure (US$8.25 million) which can amount to certain properties and assets owned by the bank but then finance and commerce ministers Ng'andu Magande and Kenneth Konga respectively, and their team were not cooperative and up to now this report is not available despite the bank having been listed at the stock exchange. So we are totally dissatisfied with the way Zanaco was sold."
He said that irregularities characterised the sale of Zanaco.
"It is fine for Zanaco to have new banking technology but we still feel this deal was not properly done because the criteria used to give four per cent shares to ZNFU was not transparent and it is also costly to have a chairman who lives in Netherlands but board meetings are held in Zambia," said Kashita.
"Minority shareholders were not allowed on the negotiating team and ordinarily, financial institutions in Zambia fall under the finance ministry but Zanaco was placed under the ministry of commerce and the number of directors has been reduced to six, thus lacking countrywide representation. So we hope the Commission of Inquiry will provide answers to these concerns."
And sources at Zanaco disclosed that Rabobank has sold everything including institutional houses and the training centre hostels.
"When a manager is transferred, the bank has to keep him in a hotel whilst looking for a house and when people are being trained they stay in hotels too, which is costly," said the sources.
"Even the US$3 million availed to the bank for training is applied by Rabobank officials from Netherlands who bring in foreign consultants who are not even fluent in English and they have disturbed salary structures whereby some people having similar grades are paid differently."
When asked to comment about the Commission of Inquiry looking into the sale of Zanaco, Konga said he has no comment and that the government was at liberty to launch investigations into any matter.
Former commerce permanent secretary Davidson Chilipamushi, who was board chairman when Zanaco was sold, said the commission would find out if anything was done ‘under the belt.'
"But I am confident everything was done transparently and the negotiating team did their best as records could show at ZDA," said Chilipamushi.
Zanaco was sold in April 2007 for US$ 8.25 million, with Konga assuring that the actual sale price of the bank would be known after three months at the completion of the evaluation of assets.
Konga told Parliament that in accordance with the sale and purchase agreement between government and Rabo bank, 10 per cent of the offer price was received on 22 January 2007 while the remainder was received on 3rd April 2007.
Konga disclosed that Rabo Bank's gross bid on net assets of the bank as at 31st December 2004 was at US$10 million, adding that government would within 90 days appoint an independent consultant to evaluate the net asset value of the bank.
Zanaco's net assets as at 31 December 2004 stood at US$20.5 million.
Zanaco's 49 per cent shares were sold to Rabo Financial Institutions Development, RFID, a subsidiary of Rabobank.
RFID and in accordance with the sale and purchase agreement between the Zambian government and the bank, took over the management and operations of Zanaco after the completion of the sale.
Rabo bank's acquired 49 per cent with the understanding that four per cent will be sold to the ZNFU and in 2009, the government offloaded 25. 8 per cent shares on the Lusaka Stock Exchange.
Labels: ANDREW KASHITA, PRIVATISATION, RABOBANK, ZANACO
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Reversing Zamtel sale will be in national interest - Kashita
By Mwala Kalaluka
Tue 17 Jan. 2012, 13:50 CAT
FORMER communications minister Andrew Kashita says reversing the MMD government's sale of Zamtel's 75 per cent shares to Lap Green Network of Libya would be in the national interest because the transaction was done illegally.
Commenting on government's imminent reversal of the previous MMD government's sale of Zamtel to a Libyan company, Kashita wondered what was wrong with some leaders from the MMD who were now defending foreigners against national interest.
Kashita said Lap Green Network did not bother to follow the legal processes when buying Zamtel because someone in the echelons of power must have assured them that all would be well.
Kashita said the Zambia Development Agency ZDA Act number 11 of 2006 lays the procedure of how State-owned enterprises could be privatised or commercialised but that the Act was not followed in the case of Zamtel.
"The Act gives the power of functions to the ZDA to plan, manage...in other words to oversee all aspect of privatising state enterprises. All the government should do is to say we have decided to privatise such and such an organisation," Kashita said.
"ZDA is under the Act empowered to see how to proceed with the privatisation. The procedure to be taken is also laid down in the Bill or in the Act, right through from the time they have to invite valuation advisors."
Kashita said ZDA had to ensure that open and transparent steps were undertaken during the valuation stage.
"All these things were totally ignored...any international company or any company wanting to buy business in another country has a duty to learn and confirm with knowledgeable local people what procedure should be," Kashita said.
"Lap GreenN should have found in Zambia something about the Law, they did not bother, somebody must have told them not to bother."
Kashita said the MMD government went further to select little-known RP Capital of Cayman Island to value Zamtel when it did not ask any local surveyor to carryout the valuation.
Kashita said what worried him most in the Zamtel transaction was that the people that were supposed to safeguard national assets maintained some strange silence while two senior public legal officers, Mumba Malila and Dominic Sichinga, were removed from their positions for standing up.
"Because of the failure to follow the steps that should have been undertaken under the Law and the strange silence by what I call the gatekeepers, it raised a lot of noise, people were complaining about it. There were discussions and questions raised in Parliament but government went straight through and sold," Kashita said.
"They are claiming even today that the company was insolvent, it had a huge debt...the biggest problem Zamtel has, like Zampost, like Zesco is that the government itself as the biggest consumer of services never pays up so debt goes up."
Kashita said he did not believe that the value of Zamtel was what was declared at the time the government announced the sale of Zamtel to Lap GreenN.
"Justice Dennis Chirwa in his inquiry discovered all the flaws that had taken place but incidentally out of all the people who appeared as witnesses in that inquiry there was not one from ZDA," he said.
"Those saying that if we try to reverse the sale we shall pay compensation, which will be very heavy, how do they know? Because Lap GreenN had a duty to discover what the law is."
Kashita said his expectation was that if Lap Green Network was a prudent international company, it should have sought an indemnity from the government that would have allowed it to recover their money if something went wrong.
"They should have known that the law did not allow them to do the way they did it and if they say they didn't know, its their duty as international financiers to know wherever they are what the local practices are and ignorance is not a defence," said Kashita.
"In sum, the decision to reverse the sale is good but it must be because of the Zambians' interest... If Lap GreenN want to show that they were right to own what they bought, can we please ask the question, did they know about this ZDA Act and its procedures, why didn't they insist that it be followed?"
According to the commission of inquiry set by President Michael Sata to investigate the sale of Zamtel, Rupiah Banda's influence in abusing and circumventing set government institutions and procedures aided RP Capital to ensure LAP Green Networks bought Zamtel despite not being fit to run the company.
The report gives a lowdown on Dora Siliya's antics and manoeuvres which saw her disregard legal advice of the Attorney General's chambers and often chased top government and quasi government officials who disregarded her sworn trajectory over the sale she orchestrated.
The report revealed a deliberately complicated transaction to siphon money from Zambia and stated that despite the government selling Zamtel to LAP GreenN for US $257 million, prior to privatisation, Zambia paid US $120 million for tax shares in Zamtel, and a further US$214. 45 million for investment shares.
Labels: ANDREW KASHITA, CORRUPTION, LAP GREEN, ZAMTEL
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Kashita sues ZDA, RP Capital over proposed sale of Zamtel
By Mwala Kalaluka
Mon 15 Feb. 2010, 04:00 CAT
FORMER communications minister Andrew Kashita has sued the Zambia Development Agency (ZDA) and RP Capital over the proposed sale of 75 per cent of Zamtel shares arguing that
the procedure taken does not comply with the ZDA Act number 11 of 2006.
In a statement of claim filed in the Lusaka High Court last Friday, Kashita stated that the decision to sell 75 per cent of Zamtel equity, not having been based upon the advice from ZDA as the law required, was against the nation’s image as a law-abiding, democratic, open and accountable government.
Kashita prayed to the court for a declaration that the act by RP Capital on behalf of ZDA to advertise in the private media inviting prospective bidders to submit applications in the proposed sale of the Zamtel shares was invalid, null and void because it abrogated the procedure as spelt out in the ZDA Act.
Kashita has asked the court to order ZDA and RP Capital to restart the process properly and ignore all that had been placed, as that was the way Zambia should maintain her status as a law-abiding nation and re-establish her commitment to transparency, accountability and openness.
Kashita stated that the decision on Zamtel was against the best interest of the citizens and should therefore not be allowed to remain valid and that the conduct had increased the economic worries of the citizens and was also what triggered his court action.
Kashita is also seeking an order to interim injunction to restrain the ZDA and RP Capital, their servants and agents from continuing to advertise for bidders or from doing anything connected with the decision to invite bidders until the disposal of this matter.
He further stated that the appointment of RP Capital as so-called exclusive financial advisor to ZDA in relation to the Zamtel transaction was also contrary to the provisions of the ZDA Act and that even if the appointment was for more than one advisor, that would still have been contrary to the above Act.
“The first defendant is established under the ZDA Act number 11 of 2006, with broad powers which include specifically, the privatisation and commercialisation of state owned enterprises, statutory corporation and departments of government,” Kashita stated. “Since the coming into existence of the first defendant under the ZDA Act, this is the first time that the first defendant is attempting to conduct a privatisation under the Act and unfortunately it has failed to adequately execute its obligation and disappointed the people of Zambia.”
And in an affidavit in support of the an ex parte summons for an order of interim injunction, Kashita stated that he considered it his duty to draw the attention of the court to the latest developments, which did not conform to the nation’s laws namely the ZDA Act number 11 of 2006.
Kashita stated that there was nowhere in the Act or indeed part of it where there was any justification for what ZDA did by keeping quiet about its responsibilities but accepted to play a role different from what the statute says.
He stated that ZDA was the only one authorized to organise and manage the process of privatizing and commercialise a state-owned enterprise, organisation or department and that the current procedure was totally at variance with the provisions of the Act.
Kashita stated that the first defendant should have announced its responsibilities and taken over the whole issues when it became known in 2008 but chose silence and in action, thus jeopardising it’s own future conduct which in turn would deny Zambians their expectations of their future interests and rights in their own country.
“If allowed to continue witnessing lawlessness in this fashion, the rights of the citizens of this country will be whittled away including my rights and that at this stage, the government’s duty is to decide to which of the alternatives from ZDA board report should be adopted,” Kashita stated.
He argued that ZDA then only had powers to take over the process of dealing with the management in the named organisation, appointing an independent consultant to value the assets, consider various modes of privatising including allocation of shares, conditions applicable to Zambian citizens wishing to participate in shares acquisition and assist government to make a decision.
Labels: ANDREW KASHITA, PRIVATISATION, RP CAPITAL PARTNERS, ZAMTEL, ZDA
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Zamtel shouldn’t be sold in its current state – Kashita
Written by Kabanda Chulu
Tuesday, August 04, 2009 2:19:28 AM
FORMER communications and transport minister Andrew Kashita has said Zamtel should not be sold in its current state because liabilities will "swamp" its assets and the final price will be valueless.
And Kashita has challenged the government not to express ignorance about the debts owed by Zamtel because it is government that appoints the board of directors and receives annual and financial reports. In an interview in Lusaka yesterday, Kashita said 75 per cent shareholding was far too large to be given to a foreign-owned company.
"This government will be making a big mistake to sell Zamtel in its current state because there are people out there who know that this business is profitable and giving them 75 per cent is a mistake and when buying, they will insist that government takes out liabilities like bad debt and other charges and if you take out those and deduct those liabilities out from assets, the liabilities will swamp out the company and it will be sold for a song," Kashita said.
"Liabilities will swamp all assets and when shares are offloaded at the stock exchange to the public they will have no value since they will be in the negative so government should not sell Zamtel the way it is now because there is need to know how those liabilities have come about."
He advised the government to understand that the telecommunications industry was a lucrative business and giving away Zamtel in its current state would be regrettable.
"Giving 75 per cent to foreigners will be regrettable because this is a profitable business, for example, look at Zamcell, which was taken over by Celtel and now Zain which will also be taken over by somebody [Orange Mobile from France], this clearly shows that this business is lucrative and people are making money since you do not sell a business if you are not making money, you stay on until profits starts flowing," Kashita said.
"Government should retain 25 per cent while the so-called strategic partner should be sold 30 per cent and we shouldn't just look to people who make equipment or latest technology but those who can provide good management skills and with technology and telecommunication skills and then 40 to 50 per cent should be sold to Zambians and eligible institutions like NAPSA, ZSIC, LASF and others, also government should have a golden share that should be effective to override the rest and other shareholders and to ensure majority owned there must be a limit on individual shares owned by Zambians."
He said the main issue at hand was to know the balance sheet of Zamtel that showed profit and loss accounts in order to arrive at the true value.
"When this is done, we can know the true value of Zamtel and we will know how losses have come into the company, it is not lack of business for both land and cell phone services because people are waiting to be connected and there is plenty of business. There is no shortage of business in this sector," said Kashita.
"Zamtel does not collect revenues and this affects business operations since company's expense are still there and had already been spent so when you look at balance sheet, there is bills receivable, which are not collected and but bills payable are being demanded and these include taxes, emoluments among other items. So Zamtel has reached a point where cash position in the bank is grossly overdrawn to cater for expenses but in receivables, there are huge funds still uncollected and the biggest debtor is government and its agencies hence Zamtel should not be to sold to anybody as it is."
President Rupiah Banda recently announced government's intention to sell a 75 per cent stake in Zamtel to an equity partner.
Labels: ANDREW KASHITA, ZAMTEL
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Competition law and state-owned firms
Written by Andrew Kashita
Thursday, May 28, 2009 2:56:18 PM
I refer to the story of May 19, 2009 in which the executive director of the Zambia Competition Commission (ZCC) is reported to have announced the proposals to lift the exemption of state-owned companies from the application of the competition and fair trade act, 1994.
I was saddened and disappointed to see this claim, 15 years after this law was put on the statute book. There is nowhere in the Act where the exemption is conferred on state-owned companies.
The preamble itself states: "to encourage competition in the economy by prohibiting anti-competitive trade practices; to regulate monopolies and concentration of economic power; to protect consumer welfare; to strengthen the efficiency of production and distribution of goods and services.
The definition of a monopoly is " a dominant undertaking ...which produces, supplies, distributes or otherwise controls not less than half of the total goods of any description that are produced, supplied or distributed throughout Zambia or any substantial part of Zambia...". The same goes for services.
The quoted section 3(f): "...activities expressly approved or required under a treaty or agreement to which the Republic of Zambia is a party" has been misconstrued by the ZCC.
By common understanding, a ‘treaty’ or ‘agreement’ to which the government is a party means treaties or bilateral agreements with other countries or protocols and those signed with such bodies as the United Nations, African Union or SADC. These are the bodies in which other countries are signatories, and they rarely deal with trading organisations.
The Act deals with trading organisations in which the government has joint investments with other countries being trading entities which have provisions for dealing with revisions of operating (i.e. trading) charges and there are not many of these. The examples are TAZARA and charges at bridges such as Sesheke crossing into Namibia; at Kazungula when the bridge is built but not the present pontoons to and from Botswana. TAZARA also faces competition on the road throughout its length.
There are no treaties or agreements with other countries in respect of Zesco, Zamtel, Zambia Railways or even Cell Z which are all trading companies.
These companies and other activities are not exempted from the Competition Law.
The report went on to say that ZCC can only recommend to the minister in respect of state-owned companies flouting the law. This is incorrect.
Under the minister incorporation Act, in this capacity, the minister holds shares, bonds or other instruments on behalf of the government but he also as a shareholder, has powers to sue and be sued. His actions under this Act bind his successors, i.e. the government.
It is sad to see such a misunderstanding and misinterpretation of the law.
He said "we have no mandate to punish those who abuse the law but to recommend...to the government". This is wrong.
Section 14(1) authorises the executive director to obtain a court warrant to enter premises, access the books of accounts or other documents relating to the trade or business... and the taking of the copies of an such books of accounts or other documents.
Anyone aggrieved by the action of the executive director of ZCC may appeal to the High Court and the Supreme Court.
Person is defined to include companies, associations, partnerships, etc. With regard to prosecutions, section 16 (1) says "any person who:-
a) contravenes or fails to comply with any provision of this Act...or any directive or order lawfully given or any requirement lawfully imposed under this Act....
(b) omits or refuses to furnish any information when required to do so,
(c) refuses to produce any documents when required to do so, or
(d) knowingly furnishes any false information to the Commission....
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding K10 million or imprisonment for a term not exceeding five years or both.
Most Acts now contain references to "penalty units" to deal with the varying kwacha value. But this has nothing to do with the principal claim that ZCC has no power to take action against state-owned companies.
Before concluding this discourse, let us refer to the announcement by the Cotton Association of Zambia and the Zambia Cotton Ginnery Association of a uniform price per kilogramme to be paid to the cotton farmers. This follows what are referred to as lengthy deliberations by various representatives numbering at least eleven. This appeared in the Times of Zambia of May 20, 2009 on page 15.
The price is what will be paid to the growers and clearly contravenes Part III: Anti Competitive Practices etc, section 7 (1) "Any category of agreements, decisions and concerted practices which have as their objectives, the prevention, restriction or distortion of competition to an appreciable extent in Zambia... are declared anti-competitive trade practices and are thereby prohibited".
Specifically, section 7(2)(g) colluding, in the case of monopolies of two or more manufacturers, wholesalers, retailers, contractors, suppliers of services, in setting a uniform price in order to eliminate competition..." is prohibited.
The only time ZCC is required to get the approval of the minister is in sections 13 and 17 when regulations are required to be made governing; (a) anything which under this Act is required or permitted to be prescribed; (b) any forms necessary or expedient for the purposes of this Act; (c) any fees payable in respect of any service provided by the Commission; (d) such other matters as are necessary or expedient for the better carrying out of the purposes of this Act.
In conclusion, the ZCC claim is false. The requirement to extend the penalty or fine beyond K 10 million is a routine matter which the government dealt with long before now. ZCC has a primary duty to protect consumer welfare. No state-owned trading company in Zambia is exempt from obeying the competition and fair trade Act. what is missing is enforcement by ZCC.
Labels: ANDREW KASHITA, MONOPOLIES, PARASTATALS, ZCC
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Govt shouldn’t blame current problems on global economic situation – Kashita
Written by Nicholas Mwale and Nchima Nchito
Wednesday, December 17, 2008 9:51:10 PM
FORMER works and supply minister Andrew Kashita has said the government should not blame all the current problems being faced in Zambia on the global economic situation.
And European Union (EU) head of delegation to Zambia Dr Derek Fee has asked the government not to panic over the current economic situation in the country. In an interview, Kashita said the government lacked understanding on the country's priority areas.
“It is not possible to blame everything on the world economy. How can the global economic meltdown affect our maize production?” Kashita asked.
He said the country could never run short of food if the government's put in place adequate mechanisms to produce enough maize stocks.
“The country can sell maize if only there is so much in excess. This is the only way you can have maize in stock to the extent that you never run short of food,” Kashita said. “If that is how it was, this country should have been a maize basket for the surrounding countries.
Most farmers had maize in stock but they were saying that they did not have it because of the unattractive prices on the market. Most farmers, like those in Chipata were selling their maize in Malawi following better prices there.”
Kashita suggested that the government's strategy in promoting maize production should have been focused on small-scale farmers and not commercial farmers.
“Commercial farmers should be channelled in wheat production and things like that,” he said. “If planning was good, we can even be a very big producer and supplier to the neighbouring countries.
There are a number of things that have gone wrong because many ministers do not understand priority areas such as education, agriculture and tourism.”
Kashita further expressed shock that Luanshya Copper Mine would be closed without the mines permanent secretary knowing about it.
“It is very surprising that Luanshya Mines announced about the closure before the minister or the permanent secretary knew about it. Under normal circumstances, there should have been meetings first before the company make an announcement,” said Kashita.
And Dr Fee said it was important to note that copper prices usually fluctuate on the international market, urging the government to be calm.
“Even the issue of the copper prices, depending on market forces, they will go up or they will go down,” he said. “So far I think the government's approach towards the Zambian economy is ok.”
And Dr Fee said Zambia could not come up with measures to protect the economy from effects of the current global economic crisis because it was not an urgent issue in the country. [So the global economic crisis has nothing to do with the drop in copper prices? More unaccountable 'advice' from the free market economists; they are full of excuses while people are going to starve. MrK]
“Zambia is not at the centre of the current economic global crisis, so you cannot expect the same measures as those put forward in Western countries. What happens in economies like the US has a global effect, that is why there is so much done to rescue their economies,” he said. “I think so far, the Zambian economy is being well managed.” [Zambia cannot expect the same measures as rich countries, because thanks to Derek Fee, it are the rich countries which now have Zambia's money. MrK]
Dr Fee added that Zambia needed to diversify its economy and move away from its dependence on copper.[Which it can only do if it taxes the mines to the max, and then develop agriculture and infrastructure. MrK]
“Every commodity will have its periods of high prices and low prices, that is why it's not prudent to over rely on one commodity for revenue,” he said.
Dr Fee reassured the EU's continued support to different projects in Zambia despite the current economic meltdown.
“We have committed some money for regional projects from 2008 to 2011 and these will go on as planned,” said Dr Fee.[Money that will be worth considerably less. Let's hope it doesn't turn into paper money. MrK]
Labels: ANDREW KASHITA, DEREK FEE, GREAT DEPRESSION II, MMD, NEOLIBERALISM
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