GBM's loyalty was doubtful - Sampa
By Moses Kuwema and Darious Kapembwa in Kasama
Sat 28 Dec. 2013, 14:01 CAT
MATERO member of parliament Miles Sampa says he has been vindicated for questioning Geoffrey Mwamba's loyalty to the party and President Michael Sata. And Mandevu PF member of parliament Jean Kapata says Mwamba, the former defence minister, should apologise to President Sata, saying no individual was above the party.
Meanwhile, Northern Province PF secretary Everest Chellah says the provincial executive committee wants Mwamba to resign as member of parliament because of the manner in which he resigned his Cabinet position.
Speaking upon arrival at Kasama airport yesterday, Sampa, who is PF chairman for commerce and also commerce deputy minister, said while individuals have a right to resign, it matters how they do it.
He said the disclosure, by Mwamba, of the conversation he had with President Sata was not right.
"We questioned his loyalty a long time ago and now we have been vindicated. Every member needs to behave according to the rules of the party. So if there is anyone in the party who still has divided loyalty, they should resign and follow suit. All of us need to have loyalty to one leader, who is Sata," said Sampa.
And Kapata, who is community development deputy minister and a member of the PF's central committee, said discipline was cardinal in the party.
"What has happened (Mwamba's resignation) is very unfortunate because the appointing authority...even in a home, when a child is whipped, banoko naba wiso nga bakuponona, nishi chapwa waleka (When your mother and father cane you, that is it; you stop). How many times are you going to run from home and say you are not my father or mother? So we need discipline because there is no one who is above the party. An individual is not above the party," she said.
Kapata said the best thing that Mwamba could do was to apologise to President Sata and be in line with what the PF believed in.
"We did not invite anyone to come and join PF, neither did we chase anyone to leave PF; they came on their own accord and they have left on their own accord and we will leave it like that. For now, let us be united in the province. We are waiting for 2016, and if we do not organise ourselves now, the opposition will find their way here in Northern Province," she said.
Kapata said the problem people had with President Sata was that he was very frank.
"He never hides; if he hears anything, he will call me and say 'Jean, you said this' and if you cannot take it, too bad. He will never go behind anyone to talk about anyone, so let's be united and rally behind our President," she said.
Further asked by reporters if she would take time to pay a courtesy call on Mwamba, who is in Kasama, Kapata said Mwamba was too junior to her and Sampa in the party hierarchy.
Meanwhile, Chellah said the executive committee in the province had never worked in harmony with Mwamba because of his divisive leadership as member of parliament.
"His loyalty to the party and to the President has always been questionable. That is why we are asking the President to let him get
out of the party so that we can work in harmony," said Chellah.
The two ministers, who have embarked on a tour of provinces to look at the party structures in the various provinces, later visited Kasama Milling, which is owned by Lupando Munkonge, who is Mwamba's cousin. They also appeared on Radio Mano, where they addressed various issues, among them party organisation and small scale enterprises.
During the programme on Radio Mano, Sampa said some vultures were trying to take advantage of the standoff between the Bemba Royal Establishment and the government to discredit the PF.
Mwamba resigned his ministerial position early this week after President Sata questioned his meetings with the Bashilubemba.
Labels: GBM, MILES SAMPA, PF
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'Members destabilising PF must be weeded out'
By Allan Mulenga
Wed 11 Dec. 2013, 14:01 CAT
MATERO PF member of parliament, Miles Sampa says he will sort out members disrespecting the party hierarchy. And Sampa says the habit of attacking senior party officials in the name of the President should come to an end in Matero, in the PF structures and in the entire country.
Addressing party cadres at Matero Constituency offices in Lusaka yesterday, Sampa, who is member of central committee in charge of commerce and also commerce deputy minister, said he would not allow disorderliness to continue in the party.
"I will personally ensure that those attacking senior party officials are sorted out here in Matero or wherever they are doing it. The same man who appointed them is the same man who appointed all of us. The same way they love the President is the same way we love him also," he said. "They shouldn't go round posing as if they are the only ones who love the President. All of us here love the President, isn't it? Those who don't love the President have gone to other parties."
Sampa observed that there were a lot of indisciplined party members.
"We fought very hard before elections, but now we are in power; it is important that we are all disciplined. We need to respect those in leadership. These positions we have were given to us by the president of PF Mr Michael Sata," he said. "Some positions are junior; some positions are senior, but they were all given by our leader. For all of us with junior positions, please respect those with senior positions. If you disrespect those with senior positions, you are disrespecting the appointing authority."
Sampa, however, said all those destabilising the party using President Sata's name would be dealt with severely.
"Those of us in the PF structures should stop pointing others fingers that they don't love the President. We know those who are destabilising the Matero structure and the Lusaka structures, we will not allow them to do that," he said. "I urge all members of PF to show love to each other and respect party structures because all those holding positions were appointed by the President and if you disrespect them, you are disrespecting the appointing authority."
And Sampa asked the party leadership to weed out indisciplined PF members causing confusion in the party structures.
"I will not sit by as a member of the party and watch anybody disrespecting those in leadership. Let's unite as one party in Matero, as one party in Lusaka; and as one party in the country. We know those who are destabilising; they have to be weeded out of the party once and for all," said Sampa.
"This habit of attacking senior party officials in the name of the President should come to a stop in Matero and in the entire country, in the PF structures. If you are in the constituency, respect those who are in the district; if you are in the district, respect those in the province; if you are in the province, respect those in the central committee; and if you are in the central committee respect the leader, who is the President."
Labels: MILES SAMPA
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'All they want is zero tax'
By Editor
Mon 04 Nov. 2013, 14:00 CAT
IF it was left to the mining corporations to determine what taxes they should pay, we have no doubt most of them would pay zero.
And Miles Sampa is right when he says "all they want is zero tax". We should not deceive ourselves in any way that the mining corporations are here to serve the interests of the Zambian people. These are not charitable organisations. They are here for a profit - and their mission is to maximise that profit.
It is up to us and our leaders to make sure we get a fair share of the rewards of mining. If we don't, we will get very little, if not nothing.
And in this regard, Nelson Mandela in June 1998 gave very timely advice to the political leaders attending the Organisation of African Unity summit: "It would be a cruel irony of history if Africa's actions to regenerate the continent were to unleash a new scramble for Africa which, like that of the 19th century, plundered the continent's wealth and left it once more the poorer."
It shouldn't be forgotten that this country's first coloniser was not the British government but a mining corporation - the British South Africa Company. This company governed this territory, the territory we are today calling Zambia, from 1891 to 1924. What did this company do for us? Nothing. It simply enriched Cecil Rhodes and its other shareholders. Things improved a bit more for our people when the British colonial office took over the administration of the territory.
We therefore know what corporate rule means. And Sampa is right in urging the government to ensure it has full control of the country's economy and assets.
It's not difficult to see through First Quantum Minerals' scheme of stockpiling concentrates, creating a crisis and then seeking to benefit from a self-created situation. They knew what they were doing. They were piling up these concentrates, as Sampa correctly observes, so that in the end, they build a strong case to force the government to forgo taxes on it.
If we are to harness our mining resources for human development, we have to secure a fair share of the wealth now being drained out of our country through unfair and sometimes illegal practices.
The ultimate measure of natural resource is the benefit that it generates for our people. We can see the gap between economic growth as a result of copper exports and the weak progress in human development.
The economic growth the statistics give us is not tying up with the reduction of poverty. Economic growth should result in the improvement of people's living standards. It's meaningless to develop a country without developing the people. Economic growth should be for the benefit of the people. To close this gap, our government needs to spread the benefit of our natural wealth by mobilising revenue through taxation, and by investing it efficiently and equitably in public goods. This requires a taxation system that combines incentives for investors with fairness for our people.
We also need to realise that the mining industry typically operates an economic enclave, with few links to our local firms and employment markets, and little value added in production. Strengthening linkages and adding value are critical if the benefits of mining are to be spread more widely.
Taxation is here a case in point. We have to review the current mining tax regime in the light of prevailing world market conditions. Of course, creating incentives for high quality investment is critical and we can't ignore this. Given the large initial capital costs and the long-term investment horizons involved in the mining sector, it is also important that we create a stable and predictable environment for investors.
There is something seriously wrong in the way we are taxing mining corporations. The current tax regime suffers from several failings. We signed too many concessions with individual mining investors which are increasingly becoming difficult to harmonise and administer. Multiple tax structures do not make for efficient administration. There isn't much benefit or advantage in case-by-case negotiations with investors.
And whatever benefits are there, their significance is exaggerated. They pitch government into negotiations on the potential profitability of a deposit with investors who are likely to be better informed. Adherence to a general tax structure is the rule in Latin America and much of Asia.
We need to pay special attention to the concessions we offer mining corporations. And some of the concessions we have offered need review. Most of the concessions we offered in the 1990s no longer make sense in today's market conditions. In this era of high and rising prices, they are excessively generous.
Clearly, our leaders need to think much more of the future. It is possible to exhaust our minerals with very little to show for it in terms of development. Look at how many years copper has been mined in this country! What is there for us to show for over 70 years of mining?
It's important for our leaders to think about the future and the future generations. What will the future generations find or benefit from our mineral resources which belong to us as much as they belong to them?
We think that the idea of the future is the most important and most noble that any honest, serious, progressive and revolutionary leader can harbour. Good leaders have always fought for the future. But the fight for the future does not mean avoiding doing every day what must be done for the present.
We need to collectively develop coherent, long-term strategies that convert our temporary natural resource wealth into permanent human capital that can expand opportunities across generations of Zambians. There is need for those involved in all these processes and activities to adhere to the highest standards of transparency and accountability.
Without this, corruption will be rampant. Those with the responsibility to make policy and administer it will be selling it for money, for bribes, kickbacks. Highly questionable decisions will be the order of the day. And if they can get away with it, they will continue to do it - for a few million dollars put in their pockets, they will make their country and their people lose billions of dollars in revenue.
And there is also need to protect communities and the environment by assessing the potential impacts of mining activities. Here again, transparency and accountability is a must because all these can be ignored if money, bribes, kickbacks are paid to those who make decisions.
Labels: MILES SAMPA, STATUTORY INSTRUMENT 89, TAX EVASION
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Govt gives mines ultimatum on contracts for Zambians
By Misheck Wangwe in Kitwe
Fri 20 Sep. 2013, 14:00 CAT
MILES Sampa has given mining companies a 30-day ultimatum to give local contractors and suppliers business, failure to which the government will introduce a Statutory Instrument to compel them.
Addressing leaders of associations for mine suppliers and contractors including the Kitwe and District Chamber of Commerce and Industry, Sampa, who is commerce deputy minister, said he would be on the Copperbelt after 30 days to see if mining companies have started giving enough business to the locals.
He said appropriate action would be taken against companies that would fail to comply and that such mining firms would be named and shamed for refusing to empower Zambians.
He said the government was not happy that the business of contracts and supply in the mines was mainly given to foreigners.
Sampa said the PF government was voted into power to change the lives of Zambians for the better by giving them business opportunities to grow their business and not to deprive them.
"My job and that of the entire government is not to make the Chinese and the South Africans rich. My job is … to make Zambians rich through business. The new broom is here and it starts now. We are here to sweep the Copperbelt and when we finish, Zambians must be rich," Sampa said.
He said the government was mindful and aware of the good and bad investors in the mining sector.
Sampa said the government was working towards creating a win-win situation between the investors in the mines and majority Zambians.
He said the idea of getting suppliers from abroad or engaging foreign companies to do projects in the mines that Zambian companies were capable of doing would be brought to an end.
"We have reports about a mining company that is importing sand from South Africa when there is abundant sand in Zambia. Some of these mining companies have even gone to an extent of hiring a South African company to supply them water. That we are not going to tolerate going forward," Sampa said.
"Foreign companies have become rich, going back with a lot of money, smiling while our people are languishing in poverty. This is unacceptable and we will change the situation."
He further urged suppliers to unite under one association, adding that there was no need to have many associations representing the contractors and suppliers.
And speaking earlier, Association of Mine Suppliers and Contractors president Augustine Mubanga said lack of proper implementation of existing legislation such as the mines and minerals development Act was a major challenge facing the country.
He said many Zambians doing business in the mining sector had been marginalised despite having capacity to carryout projects.
Mubanga said the association had taken comfort in the words of government.
Labels: MILES SAMPA, MINING
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GBM, Name the pf riffraffs - Sampa
By Moses Kuwema
Wed 21 Aug. 2013, 14:01 CAT
COMMERCE deputy minister Miles Sampa has asked defence minister Geoffrey Mwamba to name the riffraffs in the party instead of making blanket statements. And Sampa says it is premature and irrelevant to talk about endorsing President Michael Sata now.
Commenting on Mwamba's statement that he wants to safeguard PF from riffraffs who want to destroy the party by imposing themselves as President Michael Sata's potential successors, Sampa, who is Matero PF member of parliament and also member of the party's central committee, advised Mwamba to name the people he was referring to instead of speaking generally.
Sampa said he did not know of any riffraffs in the party, adding that that was why Mwamba should have been specific in his statement.
"I trust all my colleagues in the Central Committee are upright, and that's why they are there. Everybody is dignified and deserves to be members of the party be it at district or constituency. He Mwamba needs to come out in the open and state who those riffraffs are and share with some of us. If he convinces us that indeed there are riffraffs, then at that stage we can even help him. At the moment, I have not noticed anyone that would qualify to be called that. He needs to alert all of us in the Central Committee," said Sampa.
"I know my colleague is not in the Central Committee but I think he has adequate channels to convey messages. If he thinks the party or presidency is under threat, we can assist him really because it is the duty of everybody to protect the presidency and the party. In my interactions with everybody in the past for the last couple of years, I have not come across somebody I can call a riffraff."
Sampa said while Mwamba had the right to express his views, he should do so through the internal party structures.
"This could be discussed internally. Let us learn to consult each other internally. If GBM knows someone who is a riffraff, first of all he should exercise the option of speaking directly to that person or get other senior members of the party involved, like the Vice-President and the chairperson. That's what I will propagate, probably call for an internal meeting and discuss these issues internally and not through the media," said Sampa.
And Sampa said the timing for endorsing President Sata as sole candidate in 2016 was wrong.
"There has not been any question yet on succession and we are not yet there. There is an incumbent who is fully in control. Our priority now should be to deliver. I am speaking as a member of parliament from Matero which contributed the highest vote to the presidency. If someone wants to challenge President Sata, they should come out but that is then in 2016, they should not be stopped," he said.
Sampa said if those endorsing President Sata had any idea that the President was being challenged internally, they should state so.
He said the talk of endorsements was not something that the people wanted to hear as it was disturbing the programme of development.
"This talk is irrelevant now because it is stating the obvious. If some people want to impress the President, they should do it by concentrating on developmental issues. This talk is ill-timed. This is diverting our attention from the real issues we need to work on. Time to talk about succession will come towards 2016. The President will state himself then," said Sampa.
On Monday Mwamba said he wanted to safeguard PF from riffraffs that had come to destroy the ruling party by imposing themselves as President Sata's potential successors. Explaining his campaign to endorse President Sata as the PF's sole presidential candidate in 2016, Mwamba, popularly known GBM, said in an interview that those that wanted to impose themselves as presidential candidates knew themselves.
"I will go on with my agenda to protect the party from other people that have secret agendas to come and take over the presidency," Mwamba said. "Is anything wrong with us supporting the current President? As PF members, we want to safeguard our party. We don't want riffraffs to come and destroy our party. Tell them this time around they will not succeed. Sata, 2016 again."
Asked to explain what he meant when he told PF cadres in Kalabo to sort out anybody that would come to them with a view contrary to his over the presidency debate, Mwamba said: "I meant what I said."
He explained that the PF members should simply do what was right.
"Yes, this is not the right time that we should talk about the presidency, no. It is too early to say that. We should remain united but we shouldn't have secret agendas," Mwamba said. "We are going to detract the President. So that is my view."
He said although he had triggered the presidential endorsement issue, he was not interested in the PF presidency himself because he had "no crowd".
But Mwamba said his lack of interest in the party presidency was only as along as President Sata remained there.
Labels: GBM, MILES SAMPA, PF
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Sampa says he requested for transfer from finance ministry
By Chiwoyu Sinyangwe and Henry Sinyangwe
Mon 13 May 2013, 14:00 CAT
MILES Sampa says he is happy to have been part of the formulation of Statutory Instrument 32 that seeks to plug income leakages Zambia experiences through tax avoidance and transfer pricing. And Sampa says he had requested for a transfer from the Ministry of Finance, which President Michael granted.
Sampa was last week moved from Ministry of Finance to commerce in the same portfolio of deputy minister to swap with Chilanga MMD member of parliament Keith Mukata.
"I am very grateful to President Sata for considering my request for a transfer. I am very ready for new challenges at the Ministry of Commerce," he said.
And Sampa said the formulation of SI 32 to guide the implementation of the 2013 amendments to the Bank of Zambia Act would help Zambia stop losing income through tax avoidance, income leakages and export trade anomalies.
"… This SI is just doing the obvious that also happens elsewhere whether its Europe or United States and even in Africa…its only that we have gone a step further in trying to stop income leakages, transfer pricing and tax avoidance," Sampa said.
He said SI 32 did not seek to compel foreign investors to deposit their pledged investment into a local bank but that the government wanted to ensure tax incentives provided for under the Zambia Development Agency (ZDA) were not abused by unscrupulous people.
"We are not saying they should bring all their money, no! What we want to achieve is to create a monitoring mechanism to ensure that we monitor that the money or equipment for which we gave these investors tax concessions do come into the country," Sampa said.
"So, this reference account to be domiciled with a local commercial bank is just for the purpose of auditing because these tax incentives can be up to 15 years. We are not saying they should bring all their money here."
He said the introduction of SI 32 was consistent with global trends as countries tightened income loses from multinational corporations via transfer pricing and tax avoidance, among other practices.
"In Zambia, we are our own enemies. Anybody who puts Zambia as number one priority will welcome the theme behind this SI but those investors or traders who put Zambia as number two priority will have a problem with it as they think Zambia should always disadvantage itself in the name of free market economy," Sampa said. "We have tried to channel all transactions above $10,000 via banks because banks keep records for at least 15 years."
He said investors needed not seek permission from Bank of Zambia or any other government agency for them to import or export save to ensure that proper documentation and transaction trails are in place through their commercial bank.
And Sampa yesterday handed over a KR340,000-worth ambulance purchased through the Constituency Development Fund (CDF) to Chingwere Referal Clinic to service his constituency.
Handing over the ambulance, Sampa said he was determined to improve the living standards of people in Matero.
"Lusaka district has only four ambulances that service the 28 health centres in the district. However, with efforts like this one we are witnessing today, this shall be a thing of the past," he said.
Sampa said his office would also purchase graders and trucks to repair roads in the next three months.
"In Matero, we believe in doing things on our own. As we wait for the government progammes to develop the nation, we will continue carrying out development programmes in our constituency," said Sampa.
And 82-year-old Matero resident, Roy Chileshe said transportation of patients had been a problem, saying the purchase of the ambulance was therefore timely.
"If all MPs can utilise CDF like this, it would be nice. This is the time our nation should move forward," said Chileshe.
Labels: KEITH MUKATA, MILES SAMPA
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'Govt committed to developing WP'
By Mukosha Funga in Kalabo
Sat 27 Apr. 2013, 14:01 CAT
FINANCE deputy minister Miles Sampa says the government is committed to developing the Western Province regardless of election outcomes.
And Kalabo UPND member of parliament Chinga Miyutu says anyone who does not appreciate the good President Michael Sata has done for Kalabo is evil.
Meanwhile, a Baroste Royal Establishment representative says civil servants will no longer travel long distances to access their salaries.
Speaking when he officially opened the National Savings and Credit Bank (NATSAVE) Kalabo branch yesterday, Sampa said the government would continue developing the region.
"Fortunes or misfortunes in elections will not stop us from bringing development here; whether or not we win elections here, we shall bring development to the province," he said.
Sampa highlighted the major developmental projects that had been funded for the period January to March 2013.
"KR780,156 for the completion of the construction of prison
infrastructure in Kalabo, KR1.4 million for construction of district hospitals in the province, KR619,448 for the rehabilitation of medical training schools, rehabilitation of health facilities and construction of staff houses, KR200,000 for drenching canals to ensure that waterways are passable," he said "KR137,500 as operational support fund for rural roads equipment, KR225,723 for rural roads infrastructure development, KR100,000 for Forest Protection and Management, KR358,800 for child empowerment, protection and advocacy and finally, KR500,000 for the Mongu stadium which the president recently commissioned."
Sampa commended NATSAVE for extending banking facilities to newly created districts despite the many challenges that they faced.
"We note the challenges being faced by NATSAVE in the pursuit of supplying affordable financial services among its branch network, such as, poor infrastructure and high operational costs, which, in the long run, impact negatively on the cost or income ratio of the bank," Sampa said.
Sampa also rolled out a micro-finance programme under NATSAVE which incorporates an affordable savings account with a minimum balance of KR10 which he opened as the first customer.
The Kalabo branch is NATSAVE's 30th branch. Two more branches in Mpongwe and Lufwanyama are expected to be opened before the end of the year.
Labels: MILES SAMPA, WESTERN PROVINCE
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Govt will reduce personal tax every year, says Sampa
By Henry Sinyangwe
Thu 18 Oct. 2012, 11:59 CAT
THE PF government has an agony of reducing personal tax every year, says finance deputy minister Miles Sampa. And Sampa says the government is strengthening checks to curb cheating among foreign mining firms operating in the country.
During the KPMG post - 2013 budget discussion breakfast yesterday at Radisson Blu HoteloH, Sampa said the government would continue lowering taxes to ensure more money in line with the PF's campaign slogan of more money in people's pockets.
"The agony that the PF government has found itself in is immediately taking over power and having to lower the taxes," Sampa. "We found the tax threshold at 800, 000, raised it to K2 million and now it is at K2.2 million and we will continue doing this every year until we are satisfied with the threshold," Sampa said.
And Sampa said that government was setting up mechanisms that would enable the country benefit more from the mines. He said the PF's focus was to continue maximising collection of revenue from the mines rather than increasing taxes.
"Windfall tax which some people are calling for is not the only source of income from the mines… We will closely monitor the mines in terms of them repatriating their profits," Sampa said.
"That is still on the drawing table and we are in a consultative process with all the players, the mines and all the interested parties and looking through the legal implications and otherwise."
Labels: 2013 BUDGET (ZM), MILES SAMPA, TAXATION, WINDFALL TAX
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Govt will reduce personal tax every year, says Sampa
By Henry Sinyangwe
Thu 18 Oct. 2012, 11:59 CAT
THE PF government has an agony of reducing personal tax every year, says finance deputy minister Miles Sampa. And Sampa says the government is strengthening checks to curb cheating among foreign mining firms operating in the country.
During the KPMG post - 2013 budget discussion breakfast yesterday at Radisson Blu HoteloH, Sampa said the government would continue lowering taxes to ensure more money in line with the PF's campaign slogan of more money in people's pockets.
"The agony that the PF government has found itself in is immediately taking over power and having to lower the taxes," Sampa. "We found the tax threshold at 800, 000, raised it to K2 million and now it is at K2.2 million and we will continue doing this every year until we are satisfied with the threshold," Sampa said.
And Sampa said that government was setting up mechanisms that would enable the country benefit more from the mines. He said the PF's focus was to continue maximising collection of revenue from the mines rather than increasing taxes.
"Windfall tax which some people are calling for is not the only source of income from the mines… We will closely monitor the mines in terms of them repatriating their profits," Sampa said.
"That is still on the drawing table and we are in a consultative process with all the players, the mines and all the interested parties and looking through the legal implications and otherwise."
Labels: 2013 BUDGET (ZM), MILES SAMPA, TAXATION, WINDFALL TAX
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World Bank Country Director not aware of plans to halt budgetary support to Zambia
TIME PUBLISHED - Tuesday, October 16, 2012, 6:28 pm
The World Bank in Zambia has said that it is not aware of reports indicating that effective next year, it will stop offering budgetary support to the country following its graduation from lower income nation to a lower middle income country.
Finance Deputy Minister Miles Sampa is quoted in some sections of the media saying that the World Bank has indicated to stop offering budgetary support.
But World Bank Country Director Kundhavi Kadiresan has said that she is not aware of such developments stating that the bank will continue to be engaged in Zambia.
Ms. Kadiresan said that Zambia is still a low middle income country and is still eligible for concessional loans.
She told journalists in Lusaka today that her office is currently in talks with the Government to see how best it can help in financing the 2013 national budget.
Ms. Kadiresan said that once the talks are concluded, the World Bank will base its support on key policy priorities.
QFM
Labels: KUNDHAVI KADIRESAN, MILES SAMPA, World Bank
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World Bank to drop budget support to Zambia next year
TIME PUBLISHED - Tuesday, October 16, 2012, 7:37 am
THE World Bank has indicated to Zambia that effective next year, it will not offer any budget support to the country following its graduation from lower income nation to a lower middle income status, says the Deputy Minister of Finance Miles Sampa.
Mr Sampa said the government has since engaged the World Bank for financial support through the International Development Association (IDA) that provides interest-free loans to governments of the poorest countries, adding that despite Zambia graduating to a lower middle income country, poverty levels are still high.
“We are still a country that requires some levels of grants, and we are engaging the World Bank on those levels. We can only uplift the lives of people from poverty from grants and not loans,” he said.
In an interview, Mr Sampa said following Zambia’s graduation from a lower income country to a lower middle income nation, it is no longer entitled to aid related to poverty reduction.
And Mr Sampa said Government is also finalising a programme with the International Monetary Fund (IMF) on how the country will relate with the fund to be concluded before the end of the year.
Zambia’s three year Extended Credit Facility arrangement which was approved in June 2008 by the IMF came to an end in June 2011 and Government has been studying the options available for future IMF support.
Meanwhile, Government says there is need to reform the public sector, the Farmer Input Support Programme (FISP) and maize marketing to avoid budget deficit and borrowing.
The IMF fiscal monitor report 2012 launched in Tokyo at the IMF and World Bank Group annual meeting notes that Zambia’s deficit is likely to rise this year due in part to lower copper prices, along with higher public wages and delays in subsidy reforms.
Mr Sampa said the issue of subsidies is very sentimental to Zambia.
“Subsidies are targeted towards the FISP and maize marketing subsidies. We can’t have it both ways, if we continue subsidising maize, we have no choice, the budget deficit will increase and it will mean we will have to borrow to meet the expenditure of our budget,” he said.
He said there is need for Zambia as a country to be bold, bite the bullet by reforming the maize input and marketing system.
“Government is clear; we don t want wastage of resources through subsidies. It’s not subsidy which is the problem but the manner in which it’s managed,” he said.
Mr Sampa said the system is not working well and has become a huge cost on the budget.
“Zambians don’t want to get back to the HIPC (Highly Indebted Poor Countries initiative) days and equally, they don’t want to be wasting money by programmes that do not benefit the intended beneficiaries,” he said.
He said subsidies for the vulnerable small scale farmers are welcome but pointed out that in most cases the resources do not end up to the right people.
On public wages, Mr Sampa said there is need to structure the civil service so that it becomes efficient.
Commenting on the IMF calls for governments to reform the financial sector, Mr Sampa said Zambia is a step ahead of the Fund’s programme citing recapitalisation of banks.
“What the IMF is calling for in terms of reforms in the banking sector, Zambia is one step ahead and I recommend the governor. The central bank has taken precaution in the financial sector,” he said.”
[Zambia Daily mail]
Labels: FISP, IMF, MILES SAMPA, World Bank
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Miles Sampa asks Dambisa Moyo to get her facts right before making divisive statements
TIME PUBLISHED - Sunday, August 26, 2012, 2:58 pm
The government has advised US-based Zambian born writer Dambisa Moyo to have her facts straight on economic issues before making divisive statements that have the ability of painting a bleak picture of the country.
The advice is coming from Miles Sampa, the Deputy Minister of Finance who says Ms Moyo has lately been issuing statements on Zambia’s economy largely based on opinion rather than fact.
“As an economist, Ms Moyo knows that you don’t go around making statements that make the country look bad without facts,” Mr Sampa said, “she has insinuated that investors are wary of coming to Zambia when our in trays are full even as we try to empty them.”
At a recent Economics Association of Zambia discussion forum in Lusaka, Ms Moyo tabulated a shopping list of things she believes have gone bad in Zambia including an unstable economic playground that scares away investors.
But at no time, according to Mr Sampa, did she place a finger on anything tangible or give a scientific example of how investors are now discouraged of coming to Zambia.
“Criticism without facts seems to be the latest avenue for venting personal anger, frustrations and disappointments by people like Ms Moyo,” Mr Sampa said.
Under the previous Rupiah Banda administration when she released her first book Dead Aid, Ms. Moyo was treated like royalty, a trend that led her to land various board positions on multi-national corporations whom she sometimes speaks for.
Ms Moyo’s attacks did not end at investors sounding alarm but she went further to question the Zambian government’s decision to pass a law banning the use of US dollars in domestic transactions which has even been commended by Wall Street Journal analysts.
Mr Sampa said: “If an educated economist cannot appreciate the importance of rebasing our currency, then I wonder whether I should continue pursuing my PHD.”
Mr Sampa said: “If an educated economist cannot appreciate the importance of rebasing our currency, then I wonder whether I should continue pursuing my PHD.”
Ms. Moyo whose two books Dead Aid and her latest cover How the West was Lost have attracted mixed reactions, was in Lusaka recently giving her views on the economic direction of Zambia under the PF administration.
Her views, however, have been seen by other economists and bankers such as Mr Sampa as ‘skewed’ and sometimes even nostalgic of the previous administration that listened to her without question.
“I would like to tell Ms. Moyo and other critics that Zambia is open for business despite the futile negative criticism we continue to get by those that wish us ill,” Mr Sampa said, “ours is a national duty and calling, not a personal war.”
[Zambia Daily Mail]
Labels: DAMBISA MOYO, MILES SAMPA
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COMMENT - Also check the comments on the Zambian Economist blog,
"PAYE Is Not A Mining Tax".
FQM claim dismissed
August 9, 2012 | Filed under: Business | Posted by: web editor
By NANCY MWAPE
GOVERNMENT has dismissed claims by First Quantum Minerals (FQM) that Zambia has the highest fiscal regime for the mining sector globally,
challenging the company to substantiate its claims with reputable publications. Deputy Finance Minister Miles Sampa says Government is working with the Zambia Revenue Authority to ensure that there are no income leakages from the mines.
Mr Sampa was reacting to
FQM’s head of tax Adam Little who, in an interview with Daily Mail this week, stated that the tax rates applicable to the mining industry in the country are
the highest in the world.
In an interview, Mr Sampa said a holder of a mining right is exempt from customs, excise and value added tax duties in respect of all machinery and equipment required for exploration or mining activities.
“Mr Little sounded more of a politician than an expert. His claims are unsubstantiated and as an expert in tax he should be factual,” he said.
Mr Sampa said mining companies should not claim pay-as-you-earn (PAYE) as part of their taxes as this is paid by workers.
[That kind of claim by the mines is infuriating, and shows their tendency towards tax evasion. All their money comes courtesy of the Zambian people, who own the copper in the first place. It are the end users who actually pay for everything, not the mines, not anyone else. - MrK]
In a separate interview, University of Zambia, School of Mines lecturer Mattias Mphande said mining companies should open up their books for public scrutiny. Dr Mphande said Zambia’s taxes are the lowest compared to other mining countries such as Australia, Canada, Botswana and Namibia.
He said Zambian mines enjoy 10 years tax holiday, 100 percent capital allowance as an investment incentive, reduced customs duty on heavy fuel oil from 30 to 15 percent. Dr Mphande said Zambia’s tax is very low compared to Australia that has introduced a windfall tax at 40 percent.
“The mining sector’s contribution to treasury is very low in totality, they pay low electricity rates. If they import fuel, it’s duty free while Zambians pay excise duty,” he said.
Dr Mphande said the wages and salaries paid to Zambian mine workers are very low compared to the Democratic Republic of Congo and Malawi.
“PAYE is tax paid by workers and when this is removed from their tax bracket, the mines contribute very little to the treasury,” he said.
He said it is sad to note that in all places where mining activities have taken place in Zambia citing the Copperbelt and now North Western provinces, people are poorer compared to places where there are no minerals.
Labels: FIRST QUANTUM MINING, MATHIAS MPHANDE, MILES SAMPA, PAYE, WINDFALL TAX
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Workers, loan sharks and micro-lenders
By The Post
Fri 13 July 2012, 10:20 CAT
The revelation by Dr John Phiri, the Minister of Education, that over 77,000 public school teachers are shackled in debt they owe micro-finance institutions is frightening.
But they are not the only ones. Most of our working people are in a similar situation. They are in debt not only with so many micro-finance companies but also with banks, shops and other suppliers of all sorts of things.
And come pay day, they are left with nothing, they can hardly buy a bag of mealie-meal. So they have to go back to borrowing. It is not borrowing for investment; it is borrowing for consumption. Everything they have is obtained on credit.
The house they claim to own is on mortgage; the car they drive, there is a loan behind it. Sometimes even the clothes they wear are from borrowings or are purchased on credit from suppliers.
Some of our workers have consumed their salaries 20 to 30 years in advance. And this being the situation, where is their future? What happens to their families if they dropped dead today?
It is good that our Minister of Education sees this as a big problem, a gigantic challenge affecting the plight of our workers and one that demands urgent intervention. But urgent intervention by who?
This is an issue that calls for strong leadership from Dr Phiri and his colleagues in government to reform our whole system of credit and debt in the country.
This problem has not been dealt with properly over the last 20 years. Now is the time to make sure that the interests of the ordinary Zambian workers come first, not last.
For too long, our people have suffered because government policy and laws have favoured business interest above the interests of the working people.
In this country, the poor pay more interest on the little money they borrow than that paid by the rich people. Ours is a financial system that rewards the rich and punishes the poor. It is a system that makes the rich richer and the poor poorer.
Rich people can borrow from banks to start businesses, get loans for houses and cars, get credit cards, buy clothes, shoes, everything on credit and pay back from their earnings at rates they can afford. Poor people struggle to get meaningful loans from banks; they must use the money for food, school fees, transport and for emergencies like funerals.
They have to borrow from the so-called micro-lenders, the loan sharks who charge the most interests. It is not unusual for these micro-lenders to charge up to over 40 per cent or even over 60 per cent interest on small loans to poor people, workers and pensioners.
This is not in order. This is wrong.
This is shameful. This is exploitation of the workers and the poor. It is time for change. This exploitation must end.
We should not accept a system where loan sharks masquerading as responsible micro-lenders or banks steal what little our workers and the poor have in high interest charges.
The government needs to move in and set some limits on interest charges to the poor and bring it to the same level as the interest that the rich pay. This situation demands that the government acts quickly to deal with this issue. And we call on the working people, the people most exploited by loan sharks, micro-lenders and banks, to demand their own redemption.
There is need to transform our financial sector so that it meets the needs of all our people.
Transformation of important sectors of our economy is of just as much interest and importance to all workers, the users or buyers of goods and services as to the banks, the providers or suppliers of goods and services or the regulators, the government and its agencies. This is something that some in the financial sector seem to have difficulty learning.
And the trade unions need to come in. They are answerable to the workers whose interests they represent. It is therefore right to call upon the workers as a whole, and organised workers in particular, to strengthen their formations, flex their muscles.
There is need for our trade unions, our labour movement to get more involved in economic issues and policies affecting our country's economic growth and development. Workers must control their financial resources, including pension. It is time that the unilateral control and investment decision over workers' funds by the financial institutions was challenged.
A united working class must break the seemingly arrogant culture of entitlement by business to want to use workers' monies as it deems fit. And this must be located within the broader goal of deepening workers' unity in our country, and earnestly work towards the goal of returning to one country, one trade union federation.
There is increasingly more that unites the working class than divides it, including the common challenge of unemployment, retrenchments, poverty. It is only a united working class that is the social force best capable of taking our country out of a current crisis of unemployment and poverty, and lead our society towards a better life for all.
In order for this government of Michael Sata and the PF to address and effectively respond to the electoral mandate of the workers and the poor, as well as the challenge of joblessness and poverty, it is absolutely critical that they place workers' interests at the centre of transformation of our society.
In this respect, concerted effort is required if the PF government is to address poverty and joblessness. We cannot address unemployment in our country unless it is from a consistently workers' perspective and from the standpoint of its political interests.
Any approach to this problem outside the worker and the poor's perspective will not succeed.
In the light of the current high unemployment levels, one cannot fail to admit that private capital in this country has not played a meaningful role in the overall economic development of our country.
As a country, we have made more progress in those areas where government and the donors have taken a lead. Where matters have been left to the private sector, to international private capital, we have seen retrenchments and low job creation.
Therefore, there is need for the government to take a keen interest and play an active role in ensuring that all sectors of our economy are making progress and are doing so without leaving the workers and the poor behind.
Of course, we know that private capital, especially the foreign one, doesn't care about people's needs but solely about their profits! And as for our labour movement, it is important for it to realise that these are matters that should not be left to the government alone - they have an important role to play.
Labels: DEBT, JOHN PHIRI, MICRO-FINANCE, MILES SAMPA, TEACHERS
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Teachers shackled in debt - Phiri
By Chiwoyu Sinyangwe
Fri 13 July 2012, 14:00 CAT
MOST Public school teachers in the country are shackled in debt they owe micro-finance institutions, reveals education minister Dr John Phiri. And finance deputy minister Miles Sampa says huge debts distract workers and make them less productive.
Officially closing the launch of the national strategy on financial education for Zambia, Dr Phiri said the heavy indebtedness of the teachers in the country deserves urgent intervention.
He said the government had a huge challenge of freeing the teachers from their indebtedness.
Dr Phiri said the levels of financial literacy among teachers in the country were very low, and that there was need to build a future that will be financially literate.
"We have in the ministry the largest number of civil servants who are called teachers - 77,000 plus, scattered all over the country who may greatly benefit from this arrangement," said Dr Phiri. "Today, the plight of the teacher like many civil servants I guess is that their names are in every micro-finance institutions.
The payslip just confirms that 'yes, you have used your money, and here is the other K200,000 you left behind'. So, the scenario demands urgent intervention and that intervention will go a long way."
And Sampa said the proliferation of easy money for workers to borrow was recipe for under-performance among workers.
He said there was need for the government and private sector employers in the country to find a way of limiting workers' exposure to unnecessary credit.
Sampa advocated for increased financial education of the workers in the country.
"Employees who are financially educated are less likely to get into the financial difficulties which can distract them at work and thus make them less productive," said Sampa.
"It's not unusual to see workers zoom out of the offices to go and seek for kaloba somewhere because they are in financial difficulties, but all they are doing is just making their problems even worse and worse. If they are fully informed and educated, they will find other better alternatives to resolve their problems."
Labels: DEBT, JOHN PHIRI, MILES SAMPA, TEACHERS
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CCDP welcomes government's funding to youths' entrepreneurship projects
By Cynthia Phiri in Choma
Sat 07 July 2012, 13:22 CAT
THE Choma Children Development Project has welcomed the decision by government to set up financing for youth entrepreneurship projects in the 2013 National Budget in a bid to create more jobs.
In an interview, project coordinator Cornwell Hademu said the intervention by government is a move in the right direction because it would enable youths who already have skills but have been failing to access funding to become self-sustaining economically.
Hademu said access to funds had been a huge challenge for most youths being churned out of youth skills training institutions who wished to venture into self-employment activities.
He said the Youth Entrepreneurship Facility would enable youth to turn their energies and ideas into business opportunities to increase their incomes and create decent work for themselves and others.
Finance deputy minister Miles Sampa disclosed on Monday after attending the opening session of the United Nations Economic and Social Council (ECOSOC) 2012 that the government is keen to set up financing in the 2013 national budget that will particularly target innovations coming from the youths.
Hademu said while his organisation had intensified efforts in the provision of skills to youths, it was sad that many of the beneficiaries still ended up on the streets as a result of failure to access funding for their entrepreneurship projects.
He said it is for this reason that the Choma Children Development Projects salutes the government for coming up with an initiative that will address this challenge.
"As a project, we are indeed thankful to government for this well-thought move," said Hademu.
Labels: MILES SAMPA, YOUTHS
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Government keen to set up financing for youths - Sampa
By Staff Reporter
Wed 04 July 2012, 13:24 CAT
MILES Sampa says the government is keen to set up financing for youths entrepreneurship projects in the 2013 national budget in a bid to create more jobs.
Sampa, who is finance deputy minister, said this on Monday after attending the opening session of the UN Economic and Social Council (ECOSOC) 2012 Annual Ministerial Review meeting focusing on 'Promoting productive capacity and decent work to eradicate poverty in the context of inclusive, sustainable and equitable economic growth at all levels for achieving the Millennium Development Goals' in New York.
Sampa, who led the Zambian delegation to the high-level meeting at the UN headquarters, said youth unemployment was a global problem.
He noted that all countries were grappling with unemployment especially among the youth.
"What we observed from the meeting today is that the solutions are not only in providing jobs to the youths from government and companies. The youths should become innovative and come up with bankable ideas that can be financed either by the government or the private sector," he said.
He urged the youths to start thinking of becoming employers and not depending on being employed.
"I am happy to say that this government is keen to set up, in the 2013 national budget, financing that will particularly target innovations coming from the youths," said Sampa, who is also PF member of parliament for Matero in Lusaka.
Sampa called for concerted efforts from all stakeholders including opposition leaders and chiefs in addressing unemployment.
Labels: MILES SAMPA
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Treat all borrowers equally, Sampa tells DBZ
By Gift Chanda
Wed 06 June 2012, 13:24 CAT
THE Development Bank of Zambia should treat all borrowers equally, says finance deputy minister Miles Sampa. And Sampa has given the board at DBZ two weeks to find a new managing director to run the bank.
During a familiarisation tour of the bank yesterday, Sampa called for professionalism in the operations of the bank. He said all borrowers, in spite of where they were coming from, should be subjected to the same rules.
"Don't have rules for Mr X and rules for Mr Y; treat all Zambians equally. If 15 years ago a company defaulted, you had your ways of recovering that money, probably you liquidated that company and sold the assets finish; that ended the story," he said.
He said the bank should not be in the "front line of breaking company rules or guidelines of lending."
"If any one of the company owners that defaulted 15 years ago, had signed a personal guarantee for the directors, go back and have those directors taken to court so that you recover the money because they signed a personal guarantee. But if they didn't sign a personal guarantee, please the law does not allow you; don't pursue them," Sampa said.
"Don't create different laws for DBZ."
He urged the bank to ensure that it exercises due diligence before a company borrowed to avoid pointing fingers on other people in an event that the borrower failed to repay the loan.
"If the borrower deserves to be punished by the law and by the term sheet they signed here, pursue it that way. Don't create term sheets in the mind…make sure when you give these loans you take responsibility. Make sure before you give the money out be confident; believe in that particular project. That way, if that project fails; the only people to blame are yourselves. Don't blame government, don't blame politicians; don't blame the borrower. The borrower is coming to get money and they will present the project to the best of their ability and it's up to you to do your due diligence," he explained.
He blamed the past management and board for all the loans that had not been repaid in the last 15 years.
"For the new board, if you find some people gave out non-performing loans discipline them. That is what happens in the commercial world," Sampa said.
He also urged the new management to ensure that politics were kept away from the bank.
"In the name DBZ, I haven't seen anywhere it says politicians or politics, so keep politicians away from here," he said.
"Don't be used by politicians. When you make a bad loan, don't come and say this politician told us to do it…the PF will not tell you what to do or whom to lend to. If we tell you whom to lend to please refuse because if that loan goes bad, it will not be politicians; it will be yourselves to be answerable."
Sampa said the board and management should ensure it takes control of the operations of the bank.
"Get away from the habit of saying, 'it was that minister who told us'. We will tell you, tell us where that minister signed. And we politicians don't sign anywhere," he said.
Meanwhile, Sampa told the DBZ board to quickly find a new managing director to build confidence in the bank.
"I am aware you are trying to find a new MD but please do that with the speed that it deserves. Within the next two weeks, give us a new managing director," he said.
"As government, we do not care who you choose but choose someone professionally."
He also urged both the management and the board to ensure discipline is instilled at the bank.
Sampa noted that DBZ was the only bank in the country notoriously known for leaking internal information to the public.
"It DBZ is the only bank in the country where we have seen grave levels of indiscipline and this is because you have members of staff leaking information out of here. We see it in tabloids and we could even see that certain letters were pulled out from your own files because we could see the holes punched in them," he said.
"We don't want to know your internal correspondence…we want to hear about you when you are issuing a press statement or when you have your financials released. If there is any staff that is found wanting, please discipline them because only when you have discipline in your institution will you create confidence and able to attract funds which in turn you will lend out to the Zambians."
DBZ acting director Darwin Shinde said the bank needed fresh capital injection.
He said since the bank was restructured in 2001, capital going to the bank had been reducing and the bank had not been active in the market.
"Given that background, it is important that the government quickly recapitalises the bank and thereby creates a platform to help the country move forward," he said.
Labels: BANKING, DBZ, MILES SAMPA
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Government seeking accelerated FDI for mining sector, says Sampa
By Chiwoyu Sinyangwe
Mon 23 Apr. 2012, 13:30 CAT
THE government is seeking accelerated foreign direct capital investment to grow the country's mining sector in which mineralisation mapping is estimated at 50 per cent, says finance deputy minister Miles Sampa.
Sampa said although copper predominated mining activities, which supported by gold production was doing very well, the country could do better so as to optimise investment potential in the sector, which is Zambia's lifeblood.
"More importantly, less than 50 per cent of the country is geologically mapped. This is why we seek more investment in the sector to assure our people of employment and sustainable incomes," said Sampa during a creative connections dinner held at Royal Livingstone Hotel.
"We have the skills and the passion but our mining development programmes are constrained by the huge levels of finance required for such capital intensive ventures. As I look around, I know that the capital required is here among us. To those who can hear me, I say release the capital so that you grow your portfolios by investing in Zambia."
Sampa said despite the skills and the passion, the domestic mining development programmes were constrained by the huge levels of finance required for such capital intensive ventures.
"However, focus on the mining sector alone will not fully deliver governments' promises of job creation, wealth, development and poverty reduction. It is for this reason that we are targeting full-scale economic diversification. To create jobs, do business and improve conditions in which profit is made by the private sector, our vision is to establish an environment in which both local foreign investments will thrive in harmony," he said.
Sampa said to ensure that business was conducted in a predictable environment that assures investors of policy consistency, the government was committed to the rule of law, personal liberties and the well-being of its citizens.
"It is for this reason that we are fighting corruption and rent-seeking. This is because we believe in free enterprise and will do everything permissible to curtail hidden and illegal costs in doing business in our country," said Sampa.
Labels: FDI, MILES SAMPA, MINING
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Sampa urges raising of $100m through a Diaspora bond
By Chiwoyu Sinyangwe
Sat 07 Apr. 2012, 13:30 CAT
THE government and Securities and Exchange Commission (SEC) should consider raising US$100 million from Zambians working abroad through a Diaspora bond, says finance deputy minister Miles Sampa.
And Sampa has implored local authorities to "put their houses in order" and start raising finances from Lusaka Stock Exchange instead of endlessly looking up to central government for operations finance.
Speaking at the launch of SEC strategic plan 2012-2015, Sampa said there was need to leverage the over 2,000 Zambians working abroad to ensure their earnings contribute to national development.
Sampa, who is also Patriotic Front Matero member of parliament, said there was need for SEC and the government to work on a mechanism to structure the bond.
"It has been determined that worldwide, there are about 2,100 professional Zambians abroad doing good jobs at United Nations (agencies), Africa Union, International Monetary Fund and the World Bank, among others," he said.
"Assuming that each one of them can save up US$30, 000 to US$50, 000, there's a US$100 million in the hands of Zambians abroad. So, we need to target that money through a Diaspora bond that can be spiced with some other features that will attract them to bring that money here than invest it abroad. US$100 million raised by the government from Zambians abroad is sweeter than US$100 million that would be raised from foreigners. We need to take advantage of our Diaspora."
Sampa also urged SEC and the Bank of Zambia to harmonise the local bond structure so that a pricing could be determined and properly marketed to the capital market and become a chief source of finances for the country's economic growth and long-term investments in infrastructure projects.
"Because only if pricing for long-term debt is known, it sets a benchmark for short-term borrowing and predictability in the market," he said.
"About 70 per cent of the finances needed in our country can be generated from the capital markets to facilitate mobilisation of funds meant for long-term investments. We need to move from an era where we keep thinking of investment in a short-term, in a one month to five years. We need to have abilities to raise finances for as long as 20 to 50 years because only then will companies be able to borrow to invest in infrastructure."
And Sampa said decentralisation could be accelerated if the local authorities started raising finances from the local bourse.
"These councils…they can actually raise their own funds through municipal bonds like it is done in other countries," said Sampa.
And SEC chief executive officer Dr Wala Chabala said the local capital market was set to grow further and needed support of all key stakeholders in the economy.
Labels: BONDS, MILES SAMPA, SEC
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