Opposition has no moral right to criticise govt - Sata
By Kabanda Chulu
Fri 28 June 2013, 14:00 CAT
PRESIDENT Michael Sata says opposition parties, especially the MMD, have no moral right to criticise the government which is fulfilling its promises of service delivery.
And Nitrogen Chemicals of Zambia chief executive officer Zuze Banda says the company has produced 37,000 tonnes of basal fertiliser out of the 70,000 tonnes earmarked under the Farmer Input Support Programme (FISP).
Meanwhile, Kafue PF member of parliament Obvious Mwaliteta has accused opposition parties of allegedly funding Petersen's song Bufi which is aimed at tarnishing the image of the government.
During the flagging-off of fertiliser distribution at the NCZ plant in Kafue on Wednesday, President Sata, in a speech read for him by agriculture minister Robert Sichinga, said the government had chosen not to import fertiliser but to rehabilitate the company in order to create jobs and improve security of input supply.
"Life in Kafue is intrinsically connected to operations of this plant which the previous government declared obsolete and wanted to sell as scrap metal but we didn't think so when we took over office since we believe NCZ is important to the entire economy of this country and this is why KR70.1 million has been provided for rehabilitation of the plant and KR34 million has been paid to retirees," he said.
President Sata said the government would continue working to bring services to the people while the opposition remains politicking.
"It may seem dark this time but in future people will definitely see the benefits of what the PF government is doing. You can't correct wrongs done in 20 years within a short period of time but we shall deliver and in two years we have done positive things such as selling houses to former workers of Kafue Textiles, payment of terminal benefits to NCZ workers and rehabilitation of the plant which has started production and will now produce 150,000 tonnes from the previous installed capacity of 100,000 tonnes," President Sata said.
"If this is not delivering services to people, what is it? We should be asking why it took long to pay retirees, some even died without seeing their money, so the opposition, especially the MMD, has no moral right to criticise the PF government which is fulfilling its promises of service delivery."
He said the government would rehabilitate the entire NCZ plant.
"We shall not stop at revamping the fertiliser plant but we shall also rehabilitate the ammonium plant and once completed, NCZ will also be contracted to produce and supply Urea fertiliser and ammonium solutions can be sold to the mines," said President Sata.
"What else can a government do to prove that it is performing? This fertiliser will be taken to all corners of the country including Namwala where we have no MP and let us hear what the UPND will say about this. This is the first time inputs are being distributed in June, and this shows how the PF is committed to work for the people."
NCZ workers' representative Sylvester Daka commended the government for resuscitating the plant which the MMD government failed to support.
"The previous government allowed the mushrooming of briefcase traders to supply cheap and low quality fertiliser, thus completely cutting off NCZ," said Daka.
And Banda said NCZ was producing 750 tonnes per day from the previous capacity of 200 tonnes per day.
"President Sata should be commended for showing political will to revamp this company. We have been given enough money to kick-start production and we shall produce 150,000 tonnes of basal fertiliser of which 70,000 tonnes will go to FISP while the remainder will be offloaded onto the open market," he said.
And Mwaliteta, who is also Western Province Minister, said what was impossible under MMD was now possible.
"Kafue is alive due to the wise policies of the PF which aims at uplifting the livelihoods of people. The Chirundu-Leopards Hill Road, Chiawa Bridge and many other projects have created jobs for people, so where is 'Bufi' (lies)?" asked Mwaliteta.
"We know he (Petersen) has been paid by opposition to tarnish our image but with these positive projects, let him go back to the studio and compose what is reflecting on the ground."
Labels: CORRUPTION, MICHAEL SATA, MMD, NCZ, ZUZE BANDA
Read more...
NCZ ready to take up basal dressing batch under FISP
By Gift Chanda in Kafue
Fri 01 Mar. 2013, 09:40 CAT
NCZ says it is ready to take-up the whole Basal Dressing fertiliser consignment under FISP this year to address the chaotic input supply by private firms.
And the government says Nitrogen Chemicals of Zambia (NCZ) could surpass local demand for basal dressing once it romps up annul output to277,000 metric tonnes.
Speaking after Ministry of Finance officials led by secretary to the treasury Fredson Yamba toured the plant in Kafue on Wednesday, NCZ interim chief executive officer Zuze Banda assured that the plant currently had the capacity to meet D compound fertiliser needed under the Farmer Input Supply Programme .
Banda said if the company was given a consignment to produced about 150,000 tonnes of D compound fertiliser needed under FISP, it could complete the consignment by October.
"If the government diverted those funds that are usually given to the private sector under the Farmer Input Support Programme (FISP) and channel it to NCZ, we are ready to produce to carter for this coming season," Banda said.
He urged the government to go that route as one way to address the chaotic input supply.
Banda said NCZ would commence fertiliser production next month following the completion of rehabilitation works on part of the plant.
He said the firm was looking at producing about 15,000 tonnes by the end of next month.
And Yamba, who was impressed with rehabilitation works at NCZ following government injection of KR25 million recently, said the firm could earn the treasury enough revenue once it starts exporting fertiliser.
NCZ currently has capacity to produce 142,000 metric tonnes per year but plans to increase output to 277,000 metric tonnes.
"What I have seen here is testimony that this company is able to run on its own, create jobs and earn the country revenue," he said.
"The government will ensure that this plant is up and running. We the government will make sure that it makes funds available where necessary but at the rate you are going you should be able to become self-sufficient."
Yamba was particularly impressed with the way the firms was
efficiently utilising the KR25 million capital injection.
He said the firm had not spent the money buying luxury vehicles and refurbishing offices like most firms do when they receive money from the government.
"Instead, they have focused on rehabilitating the plant which shows that they have the firm at heart," h said.
"We have learnt that NCZ has only KR4 million out of the KR25 million it was given. And it is using local expertise to work on the plant and most of the materials are being sourced locally. This is commendable."
He said it was high time people started having confidence in local expertise as not only a cost saving measure but as a way of creating employment.
According to data obtained from the company, NCZ currently has a workforce of 480 permanent employees and around 500 casual workers.
An additional 1,600 employees is expected once the plant fully resumes operations.
Labels: FERTILIZER, FISP, NCZ
Read more...
Kafue PF leaders condemn decision to privatise NCZ
By Henry Sinyangwe and Allan Mulenga
Mon 23 Apr. 2012, 13:27 CAT
THE government's decision to privatise the Nitrogen Chemicals of Zambia (NCZ) is wrong and should be rescinded, according to Patriotic Front Kafue district leaders. And Dr Fred Mutesa says it is disappointing that the PF government has gone back on its promise of revamping NCZ.
Commenting on
recent remarks by agriculture and livestock minister Emmanuel Chenda that the government's privatisation of NCZ was the ultimate solution for the plant, Kafue district chairperson Paul Banda in a statement jointly signed with district secretary John Ngwira stated that people were expectant that the PF government, once voted in, would provide employment and improve their livelihoods by
revamping the plant.
He stated that if NCZ was privatised, benefits would not accrue to the Zambians but to the investors' countries of origin, a situation he described as unacceptable.
"Conversely, looking at the agriculture minister's statement, the expected generation of employment through revamping of NCZ will not occur but this will only happen in those countries where Zambia imports the products which are supposed to be produced by NCZ,'' Banda stated.
He stated that recapitalisation of the plant was a better solution as the duty of government was to raise funds to meet what Zambians needed.
And Lusaka Province vice publicity secretary Clement Katongo said the government's position that it cannot afford to revamp the NCZ operations because the undertaking was expensive and the only solution was to privatise it, showed lack of vision and proper planning.
He said it would be prudent for the government to employ initiatives other than privatisation as this had failed since 1998.
"NCZ was not built in one year but in many years, Katongo said. "Similarly, the minister employing a clear vision and objectives can spread the revamping of its operations in phases or stages, Katongo said.
He said NCZ was a viable and strategic industry for the country, which did not need privatisation but expansion of its capacity to generate products related to its explosive grade fertilisers.
"The government can consider giving NCZ to our security wings which can put it to good use due to its viability of explosive grade fertiliser," Katongo stated.
And Zambians for Empowerment and Development president Dr Mutesa urged Zambians to ensure that the country starts producing fertiliser locally.
"It is disappointing that the PF has gone back on its promise. But let's do something as a country to ensure that we are producing fertilisers locally because in the process, we will also create jobs for our people," he said.
Dr Mutesa said the country needed vibrant chemical engineering industries to strengthen the agricultural sector.
"I believe that Nitrogen Chemicals of Zambia was set up for that purpose. We also need to look at agriculture, that is the sector where the majority of our population is found. And if we improve and remove the bottlenecks that affect performance of the agricultural sector, then we are improving incomes in the rural areas, issues of marketing , timely supply of inputs such as fertilisers and payment of farmers on time so that they can plan properly. Those are cardinal issues that the PF government must critically look at," he said.
Dr Mutesa said the government should realise that fertiliser imports had been riddled with corruption.
"They need to give us the alternatives. So until we begin to produce locally and we have this infrastructure it might be old, but they must tell us what they intend to do with it," he said.
Dr Mutesa urged the PF government to explain how it would deliver on its campaign promises.
Labels: FRED MUTESA, NCZ, PRIVATISATION
Read more...
Governmentt can't afford to revamp NCZ - Chenda
By Henry Sinyangwe
Thu 19 Apr. 2012, 13:00 CAT
AGRICULTURE minister Emmanuel Chenda says the government cannot afford to revamp operations of the Nitrogen Chemicals of Zambia because the undertaking is very expensive.
During his tour of the fertiliser production plant in Kafue on Tuesday, Chenda said the government could not manage to run the plant as the cost of revamping it to its 132,000 tonnes production potential was above the K1.6 trillion budget for the whole ministry.
‘'Our total budget as a ministry is K1.6 trillion and revamping this plant would chew up the whole budget, so the ultimate solution as government is to privatise this plant as soon as we find a suitable investor," he said.
Chenda's remarks followed NCZ chief executive officer Richard Soko's call on the government to assist with K25 billion to revamp the Ammonium Nitrate plant as it had ready market from Africa Explosives and also rehabilitation of the whole plant at the cost of US $40 million to improve its operations.
And Chenda also said farming inputs would be delivered before the commencement of the 2012/2013 farming season.
He said this would be done through early completion of the tendering process so that the selected bidders could begin early.
Chenda said the government was redesigning the Farmer Input Support Programme to make sure the inputs reach the intended farmers and not individuals that did not need government's support.
"The process had been hijacked FISP but now we want to be on top of things; so we are putting in measures to ensure that the inputs are delivered to the intended farmers and not people that made the who process corrupt and benefited the wrong individuals,'' he said.
Chenda also said the government would consider NCZ's request to increase the production tonnage from 30,000 to 70,000 metric tonnes.
The Zambia Public Procurement Authority, on behalf of the Ministry of Agriculture and Livestock has invited bids for the supply of 64,028,50 metric tonnes of basal dressing and 89,605,20 metric tonnes of top dressing.
Labels: FERTILIZER, NCZ
Read more...
NCZ to meet FISP's fertiliser target tomorrow
By Gift Chanda
Wed 19 Oct. 2011, 14:10 CAT
NITROGEN Chemicals of Zambia says it expects to complete the production of 30,000 metric tonnes of fertiliser for the Farmer Input Support Programme this Friday.
In an interview, company head of sales and marketing Daniel Zyambo said NCZ had so far produced 26,000 metric tonnes out of the 30,000 tonnes it was contracted to supply under the Farmer Input Support Programme (FISP).
"We are projecting to clear the outstanding quantity by the end of this week," Zyambo said, adding that "the delay was partly due to derailments in the release of funds to buy raw materials."
He said the distribution of farming inputs to some parts of the country had already commenced.
"As of yesterday Monday, the transporting companies picked 15,275 metric tonnes," he said.
Meanwhile, Zyambo revealed that discussions over the supply of additional fertiliser for the 2011/2012 farming season were under way.
The PF pledged to increase the amount of farming inputs to farmers in the 2011/2012 farming season.
But part of the new government's plans on agriculture is to diversify the sector from dependence on maize to other crops.
Zyambo said NCZ was ready to supply the additional fertiliser if contracted.
He said the plant had increased its production capacity from 18 metric tonnes per hour to 25 metric tonnes.
"We can do 5,000 metric tonnes at short notice in a week," said Zyambo.
Labels: FISP, NCZ
Read more...
Egyptians, Russians show interest in NCZ
By Ndinawe Simpelwe
Tue 01 Feb. 2011, 04:01 CAT
BRADFORD Machila says Russian and Egyptian investors have expressed interest in partnering with the government in revamping the Nitrogen Chemicals of Zambia. In an interview, Machila, the Kafue parliamentarian, said the government was looking for long-term solutions to the problems that the company faced.
“We hope to have a long-term joint partnership under the PPP public private partnership. We have already received interest from partners in Egypt and Russia,” said Machila who is also livestock and fisheries minister.
He said the current focus was to ensure that the company continued to manufacture enough fertiliser for the farmers.
He expressed happiness that NCZ was able to live up to its contract of manufacturing 15,000 metric tonnes of Compound D fertiliser for this year’s farming season.
“We awarded NCZ to supply 15,000 metric tonnes of fertiliser for the first part of the farming season and we are glad they were able to manufacture enough for the farmers,” he said.
Machila said the government was also looking at the possibilities of manufacturing explosives that could be used by the mines.
He said business in the mines had grown and the demand for explosives had also risen up to 15 per cent.
“The demand for explosives has grown following the boom in the mines. We want to take this opportunity to manufacture explosives that would be supplied to the mines,” Machila said.
NCZ had been rocked with capital and operational problems, subsequently creating uncertainty as far as the future of the company and workers is concerned.
Labels: BRADFORD MACHILA, CORRUPTION, NCZ, PRIVATISATION
Read more...
Ex-workers sue NCZ
By Maluba Jere
Thu 25 Nov. 2010, 04:00 CAT
NITROGEN Chemicals of Zambia (NCZ) Limited has been sued for over K7 billion by 87 former employees of the company. Kasumba Wilfred Ngulube and 86 others have sued NCZ demanding to be paid the sum of K7,633,325,798.93 terminal benefits.
In a statement of claim filed in the Lusaka High Court, Ngulube stated that during the period between retirement and whilst awaiting their retirement benefits, NCZ paid them upkeep or maintenance allowances.
Ngulube on behalf of the others stated that upon receipt of terminal benefits which included repatriation expenses on October 16, 2009, it was discovered that NCZ had unlawfully deducted the said allowances from the money due to the former workers.
Ngulube added that NCZ claimed that the deductions were treated as part payments towards their terminal benefits.
Labels: KASUMBA WILFRED NGULUBE, NCZ, PARASTATALS
Read more...
Rupiah has U-turned on his campaign promises, says Fr Chibuye
By Chibaula Silwamba
Mon 08 Nov. 2010, 04:01 CAT
PRESIDENT Rupiah Banda has U-turned on his campaign promises and does not care about the welfare of his people, Mpika Catholic Church’s Fr Patrick Chibuye has charged. Commenting on President Banda’s two years in office, Fr Chibuye said the head of state did not keep his word on various issues he promised Zambians.
“There has been a big U-turn of Rupiah Banda. He has not continued where late president Levy Mwanawasa left,” Fr Chibuye said.
“He promised that he will act in accordance with people’s demands not to increase the salaries for constitutional office holders but immediately he came to power he signed the bills effecting the increment of salaries for constitutional office holders which included his salary.”
He said President Banda had promised to fully recapitalise Nitrogen Chemicals of Zambia (NCZ) but had not done so to date.
Fr Chibuye said President Banda went against the wishes of the majority citizens on the sale of Zamtel.
He said President Banda, during his campaigns, kept saying he wanted to keep the legacy of Mwanawasa but had failed to keep his word.
Fr Chibuye said President Banda had compromised the fight against corruption, a fight he supported during Mwanawasa’s presidency.
“There is a turn in the fight against corruption as exemplified by his government’s refusal to appeal against the acquittal of former president Frederick Chiluba and the throwing of the London High Court judgment,” Fr Chibuye said.
“The removal of the abuse of office clause from the Anti Corruption Commission (ACC) Act of 1996, for me, is giving a leeway to office bearers to do whatever they want in the use of public resources. There would be no one to ask them to explain and justify why they are doing what they are doing because they are protected.”
He said there had generally been lack of commitment in the fight against corruption.
“The only continuity is on the NCC, which has produced questionable results,” he observed. “There is no clear roadmap from this government on the way forward on the constitution-making process.”
Fr Chibuye said over the last two years, President Banda had not been democratic.
He noted that there was no internal democracy within the MMD, which was slowly affecting democracy at national level, during President Banda’s rule.
“Since he came into office, he wanted to continue as President for another term but I expected him to call for the convention within the MMD and not relying on the NEC National Executive Committee but he has kept quiet on this democratic event,” Fr Chibuye said.
“It will be better for him to take a bold decision and test his popularity within the party by calling for a convention ahead of next year’s elections. There are already wrangles within the MMD, with some saying ‘he is a capable leader’ while others are saying ‘no’.”
He said the only way for President Banda to prove his popularity in the MMD would be for the party to hold a convention.
“There it will be tested and this will reflect and promote democracy,” Fr Chibuye said.
He said the President should be very objective in his dealings.
Fr Chibuye also denounced President Banda’s arrogance on the mining taxes.
“His attitude that he doesn’t care and no more questioning of removal of windfall tax, is retrogressive. He is a President who does not care about the welfare of his people. The wealth of his country is taken away by other people,” Fr Chibuye observed.
“It is unfortunate that we the owners of the minerals are the ones who are suffering; the foreigners are becoming rich almost daily, they have externalized the Zambian wealth.”
He also observed that there was no equality in the administration of justice under President Banda’s two-year rule.
Fr Chibuye said President Banda had promoted two sets of laws.
“One for those in his government and the other for those in opposition – be it the Church or other leaders. For example, the arrest of Kafulafuta parliamentarian George Mpombo for bouncing a cheque while gender deputy minister Lucy Changwe went scot-free for committing the same offence,” Fr Chibuye said.
He said although President Banda’s administration had scored on economic indicators that were showing positive growth of the economy, the impact was not being felt by the poor, saying the only way Zambians would appreciate the economic growth would be when they benefit from it.
“Under his reign, we have also seen political violence and culprits are not prosecuted,” said Fr Chibuye. “He needs people who can truly advise him because sometimes people that surround him are cheating him.”
Labels: NCZ, PATRICK CHIBUYE, PRIVATISATION, RUPIAH BANDA
Read more...
Govt risks selling NCZ at a loss, says Soko
By Florence Bupe
Thu 04 Nov. 2010, 04:01 CAT
THE government has been advised to recapitalise NCZ before privatising the fertiliser manufacturing plant. In an interview, Nitrogen Chemicals of Zambia (NCZ) chief executive officer Richard Soko said the government risked selling the manufacturing plant at a loss if it decides to go ahead with the privatisation of the firm in its current state.
“The problem with privatising NCZ in its current state is that government will give it away for a song. It will
not be prudent to sell the plant without first of all recapitalising it,” Soko said. “Government needs to recapitalise the plant to get the real value of its assets.”
Last month, an Egyptian firm expressed interest to procure and invest in the defunct NCZ, following an assessment of the plant.
But the Zambia Development Agency (ZDA) indicated that it was still waiting for more submissions from other potential investors. Soko said it would be more beneficial for the government to sell the plant to a local investor as opposed to a foreign entity.
The government had earlier engaged Grant Thornton to carry out a due diligence study of the fertiliser manufacturing plant before a way forward is drafted for the ailing institution.
And appearing before the Parliamentary Public Accounts Committee (PAC), Soko insisted that NCZ was still viable and all that was needed was recapitalisation for the plant to resume full capacity operations.
He told the committee that a strategic plan had been drawn and that the plant needed approximately K240 billion for rehabilitation and working capital.
“What we have discovered is that NCZ is viable and we have made recommendations to the board for scrutiny,” he said.
He further said NCZ was overstaffed, with the current staff levels standing at 520, but the company had no money to pay retrenched workers if it decides to take that route.
Soko disclosed that NCZ would need about K45 billion to retrench excess workers.
And committee chairperson Emmanuel Hachipuka stressed the need to invest in fertiliser production locally if the country’s efforts of sustaining the agriculture sector were to be fruitful.
“Our efforts to diversify our economy to include the agriculture sector can only be realised if we invest in areas such as local fertiliser production and we should resolve the issue of NCZ urgently. Let government decide whether to close NCZ and invest in a modern manufacturing plant, or recapitalise the existing plant to make it more viable,” advised Hachipuka.
Labels: EMMANUEL HACHIPUKA, NCZ, PARASTATALS, PRIVATISATION, RICHARD SOKO
Read more...
Local firm among 6 more eyeing NCZ
By Joseph Mwenda
Tue 02 Nov. 2010, 03:59 CAT
SIX more firms have expressed interest in taking over operations of the paralysed Nitrogen Chemicals of Zambia (NCZ). And the Zambia Development Agency (ZDA) has said it is still awaiting an evaluation report of NCZ assets upon which a decision of whether to privatise the parastatal or to restructure it would be made.
In an interview yesterday, ZDA acting director Muhabi Lungu said other than the Egyptian firm, six other companies, among them a local company, had expressed interest to resuscitate the Kafue-based fertiliser manufacturing plant.
“What has happened to NCZ is that it has been earmarked for privatisation but there will be a tender procedure to follow. The Egyptian firm is not the only company that’s interested in NCZ; we have offers from the Chinese, India, Germany and a local company which is run by a prominent politician in partnership with an Indian firm but I can’t give all the details now,” Lungu said.
He said the Ministry of Agriculture had contracted a private auditing firm to evaluate NCZ assets and submit a comprehensive report that would help government decide what to do with the company.
“Some companies want to become equity partners of NCZ, while some want full ownership of the company so after that report is submitted, government will decide whether to restructure it or to privatise it,” he said.
Lungu said ZDA was currently gathering information and making consultations on the future of NCZ.
Labels: NCZ, PRIVATISATION, ZDA
Read more...
Govt will regret NCZ privatization-ZUFIAW
Sunday, October 31, 2010, 21:46
The Zambia Union for Financial and Allied Workers (ZUFIAW) has charged that government will regret the privatization of Nitrogen Chemicals of Zambia (NCZ).
Egyptian Ambassador Salah El Sadek recently revealed intentions of
a certain Egyptian company that is interested in giving government a private hand in running the NCZ.
The named company is said to have already submitted a proposal to the Zambia Development Agency (ZDA) for the takeover of NCZ. And the National Union of Commercial and Industrial Workers (NUCIW) president Seth Paradza has called on the government to hasten the privatization of Nitrogen Chemicals of Zambia (NCZ).
However, ZUFIAW president, Cephus Mukuka said that government should finance the plant to start running without any private help.
Mr. Mukuka said that government has the capacity to finance the NCZ but lacks political will to keep the company within the hands of Zambians.
He wondered why the ruling MMD government has constantly opted to sale off national property even when it could revamp the institutions and keep it as a public business.
He said that privatizing the NCZ at this moment will only result in a lot of joblessness and lawlessness in the country.
Mr. Mukuka has,therefore, advised government to focus on rebuilding the chemical plant rather than privatising it.
[ QFM ]
Labels: CEPHAS MUKUKA, NCZ, NEOLIBERALISM, PRIVATISATION, ZDA, ZUFIAW
Read more...
COMMENT - What uncorrupted union leader would call for the priviatisation of a company, which is certain to lead to joblosses at the company? Corruption.
Union leader urges govt to expedite NCZ privatisation
By Florence Bupe
Sun 31 Oct. 2010, 04:00 CAT
A trade unionist has called on the government to hasten the privatisation of Nitrogen Chemicals of Zambia (NCZ).
In an interview, National Union of Commercial and Industrial Workers (NUCIW) president Seth Paradza said the government should allow the E
gyptian company that has expressed interest in investing in the fertiliser manufacturing plant to go ahead if the plant has to survive.
Paradza charged that the government was dragging its feet on the privatisation process and warned that NCZ risked falling into deeper liabilities the longer it stayed under government hands.
“In our view, the Egyptian company has shown seriousness in investing in NCZ. We are disappointed that the Zambia Development Agency is saying they are still waiting for other proposals. There is really no need if the company that has expressed interest is viable,” he said.
Earlier this week, Egyptian Ambassador Salah El Sadek disclosed that a named Egyptian company who had come to assess the viability of NCZ was satisfied and willing to immediately take over the operations of the plant.
El Sadek said the company had already submitted a proposal to ZDA for the takeover of NCZ, but ZDA communications manager Margaret Chimanse said the agency is still receiving proposals from corporations interested in taking over NCZ.
And Paradza has disclosed that former NCZ workers are owed about K15 billion in retirement benefits for the period 2008 to date.
He said this figure is likely to go up if the privatisation process is not speeded up.
“In 2008, government came in to settle the K40 billion that was owed workers, but since 2008, about K15 billion has accumulated in unpaid benefits to former workers. There are also other statutory obligations that need to be taken care of,” said Paradza.
Labels: CORRUPTION, NCZ, NEOLIBERALISM, NUCIW, PRIVATISATION, SETH PARADZA, TRADE UNIONS
Read more...
Govt’s approach to NCZ problems is dangerous, says Hamududu
By Florence Bupe and George Zulu
Fri 11 June 2010, 07:50 CAT
GOVERNMENT has taken a dangerously weak approach to the problems facing Nitrogen Chemicals of Zambia (NCZ), Bweengwa member of parliament Highvie Hamududu has observed. In an interview, Hamududu said the government was being unpatriotic in addressing the challenges being faced by the fertiliser-manufacturing plant.
“The problem we have with government is that they don’t seem to appreciate the huge financial investments that went into the establishment of NCZ. The government of that time put in huge investments to set up the plant but those investments are now going to waste because of the way the present government is running its affairs,” he said.
There have been various concerns raised on the continued awarding of contracts for the supply of fertiliser to Omnia and Nyiombo Investments but the two companies have again been contracted to deliver 80 per cent of the total fertiliser requirement for the 2010/ 2011 farming season.
NCZ has been contracted to supply only 20,000 metric tonnes, translating into 20 per cent of the total requirement, despite the manufacturing plant having a capacity to produce 142,000 metric tonnes per annum.
Hamududu, who is also the chairperson of the parliamentary committee on estimates, called for an investigation into government’s interest in Nyiombo and Omnia, arguing that it was unusual for the same companies to keep getting tenders for the supply of fertiliser for eight consecutive years.
He said many jobs and the economy of Kafue district were at stake as a result of government’s approach.
“Omnia and Nyiombo are private entities and they have nothing much to offer the country in terms of development because they just import fertiliser and re-package it. These two companies are basically traders and they don’t offer any sustainable employment like NCZ does,” he said.
And Hamududu has said the government must take responsibility to ensure that farmers are not exploited by briefcase maize traders during this year’s crop marketing exercise.
In an interview in Monze yesterday, Hamududu said there was a government in place which must show concern over the outcry of the people especially small-scale farmers whose livelihood depended on farming.
“...But it is unfortunate that government has failed to protect its citizenry. This is not Sudan or Congo where people do things at their wish, this is Zambia and there is order and a government in this country. So government must redeem itself and come to the aid of farmers by stopping the exploitation in maize buying. Government must stop these exploitative maize buyers; let this government deal with them,” Hamududu said.
He said exploitation was a crime against humanity and the government must ensure that people were protected from such vices.
“I want to send a warning to those maize traders, I hope they are not a frontage of millers, they are exploiting poor farmers by buying maize at K25, 000 and K30, 000 per 50 Kg bag. That is total exploitation, those people have no conscious and I want to appeal to their conscious that it is not fair to have such evil profiteering, how can you buy a 50 Kg bag of maize at such low prices when the government price is K65,000?” he asked.
“It is very unfair and they are killing people in rural areas and we are ready to take them on. Very soon, we are going to mobilise people in Monze to deal with anyone buying maize at such low prices, we are going to mobilise our people to chase them from the district and I will be in the forefront of doing that.”
Hamududu said it was unreasonable for people to take advantage of the high moisture content in maize to buy at an exploitative price.
Labels: HIGHVIE HAMUDUDU, NCZ, PARASTATALS
Read more...
Use CDF to develop your areas – Shawa
Wednesday, August 12, 2009, 16:22
Government has urged civic leaders and parliamentarians in Lusaka province to utilize the Constituency Development Fund (CDF) to develop their areas. Lusaka Province Minister Charles Shawa said there is need to unlock the potential of Zambians to enhance the promotion of economic growth and diversification.
Mr. Shawa noted that this would also help to improve the quality of public service delivery to the people. The Minister said this when a group of councillors from Kafue District Council called on him at his office today.
He advised civic leaders to work closely with their area Members of Parliament in the use of funds from CDF to improve the social services and infrastructure development in the district.
Mr Shawa added that government is in hurry of extending benefits of economic growth and development to the people through the involvement of key stakeholders.
Earlier, Kafue District Council Chairperson, George Muleya said the council was working had in reviving the manufacturing industry in a bid to make the district an industrial hub of the province.
Mr Muleya said the construction of Universal Mining and Chemicals Industries, a major hotel and a cement manufacturing company would revive the economic activity in the district resulting in job creation among the people.
He commended government for injecting capital into Nitrogen Chemicals of Zambia (NCZ).
The Coucil Chairman said the move would help the fertiliser company resume full production.
Mr Muleya however, bemoaned the decline in the collection of council levy from firms that have closed down, such as Abion Nickel Mine.
He noted that the development has negatively affected the revenue base of the council leading to failure by the council to provide quality service to the people.
ZANIS
Labels: CDF, CHARLES SHAWA, KAFUE, NCZ
Read more...
OMNIA defends FSP
Written by Ernest Chanda
Sunday, April 26, 2009 2:52:41 PM
OMNIA Fertiliser Zambia has defended the Fertiliser Support Programme (FSP), saying it has worked well so far in the country. And the parliamentary committee on land and agriculture on Friday sent back Nitrogen Chemicals of Zambia (NCZ) management to redo their submission.
The committee, which was chaired by Kalomo UPND member of parliament Request Muntanga, was looking at the performance of the FSP.
Appearing before the committee, managing director Bertie Serfontein said the FSP worked better than the proposed voucher system.
"In our view, the FSP has so far worked well, although we know there have been some problems here and there. And we know people are talking of introducing the voucher system, but it would be better to work on the problems encountered in the FSP than start a new process. We are aware of the various problems encountered in the voucher system because we run a fertiliser programme in Malawi as well. And the voucher system has proved to have more problems than the Fertiliser Support Programme," Serfontein said. "I'm simply saying why do you stop a system that is already working and then start something else instead of improving on the already existing system? Starting from the scratch always brings problems. It's like changing your Zambian law from Roman law to English law. You will have to start all over again."
And Muntanga asked NCZ chief executive officer Richard Soko to resubmit a written and detailed survival plan for the company.
"This committee deals with written submissions, and when you talk about figures we want to see them on paper. This will help us argue with government on your behalf so that even if we say give NCZ K150 billion we shall have the figures to refer to. Remember you are competing against organisations which believe that you are only standing there doing nothing. Give us figures that will show how you can defend yourselves from these attacks. Show how you propose to produce fertiliser cheaper than your competitors and come back to us on the 5th of May," said Muntanga.
Labels: FERTILIZER, FSP, NCZ, OMNIA GROUP, PARLIAMENTARY COMMITTEE ON AGRICULTURE, REQUEST MUNTANGA
Read more...
NCZ management Team fail to explain the viability of their company
Friday, April 24, 2009, 21:53
Nitrogen Chemicals of Zambia (NCZ) Managing Director, Richard Soko, and his delegation were on Friday turned away by the Parliamentary committee on Agriculture for failing to respond to queries.
Committee Chairman, Request Muntanga, directed Mr. Soko and his team to go and prepare details sought by the committee.
This was after Mr. Soko’s delegation failed to ascertain the amount of money required to fully recapitalise the fertiliser plant which is currently non-operational.
Mr. Muntanga was also displeased by the delegation’s failure to determine the anticipated production levels and profitability once the plant is fully recapitalised.
The NCZ delegation was consequently directed to re-submit its report on Wednesday next week.
The Parliamentary Committee on Agriculture and Lands is currently receiving submissions from stakeholders on the viability of the Fertiliser Support Program.
It is also looking at the status of the fish population in Zambia.
[ZNBC]
Labels: FSP, NCZ, PARASTATALS, PARLIAMENTARY COMMITTEE ON AGRICULTURE, REQUEST MUNTANGA, RICHARD SOKO
Read more...
COMMENT - Why can't the workers and managers get together, create a profitable business model for NCZ, and get funding on the basis of that model? NCZ could be worker owned. They should be manufacturing the nation's fertilizer, whose prices are at an all time high.
NCZ workers bemoan govt’s failure to keep plant running
Written by Florence Bupe
Saturday, March 07, 2009 10:17:34 AM
NITROGEN Chemicals of Zambia (NCZ) workers have criticised government’s failure to keep the manufacturing plant running while an equity partner is being sought.
In an interview, National Union of Commercial and Industrial Workers (NUCIW) branch president Seth Paradza said it was irresponsible for the government to stall operations at the plant through failure to release the required funds.
“Government should have let the company continue to run as they look for an equity partner. We needed only K5 billion to purchase additional raw materials to resume production, yet government has failed to avail these funds. Instead, they are talking of close to K40 billion to settle retirees’ and workers’ dues, which at the end of the day is very uneconomical.”
NCZ was shut down in November, 2007 due to lack of funds needed for recapitalisation and procurement of raw materials.
Paradza expressed disappointment over the government’s stance on the recapitalisation of the fertiliser manufacturing company.
He said the government was not committed to the revival of the company, adding that the country would continue to spend unnecessarily huge amounts of money on fertiliser imports for as long as the local plant was not revamped.
“Government’s pronouncements that NCZ is a strategic company will remain empty for as long as they are not accompanied by action,” he said.
Paradza disclosed that workers were owed two months’ salary arrears, and explained that the K8.5 billion that had been released would be channeled towards the payment of salaries for one month, as well as part payment of terminal benefits.
Labels: NCZ, NUCIW, SETH PARADZA
Read more...
Govt not ready to recapitalise NCZ, says Musokotwane
Written by Ernest Chanda
Tuesday, February 17, 2009 4:52:22 PM
FINANCE minister Dr Situmbeko Musokotwane has said the government is not ready to recapitalise Nitrogen Chemicals of Zambia (NCZ).
And the Economics Association of Zambia (EAZ) has supported government's cancellation of the windfall tax on the mines.
Appearing before an Expanded Parliamentary Committee on Estimates in Lusaka yesterday, Dr Musokotwane said it was a hard process for the government to run the fertiliser-making plant.
This was in response to a committee member who is also Bwacha (PF) member of parliament, Lombe Mulenga, who wanted to know why the government was not recapitalising NCZ to produce cheaper fertiliser and create jobs for Zambians.
The committee, chaired by Lukulu East member of parliament, Batuke Imenda, comprises chairpersons of all parliamentary select committees.
Dr Musokotwane said the government would rather have NCZ run by private entities.
"The technology available at NCZ at the moment is in problems, but as government we are open to Zambians who can run NCZ and produce fertiliser. If they can produce that fertiliser cheaply as suggested, then we will be ready to buy from them. As for now, it is a hard process for government to run NCZ. Anybody can come and we shall discuss with them if they want to invest in the company," Dr Musokotwane said.
And Dr Musokotwane said he might consider increasing the Constituency Development Fund (CDF) in this year's budget as demanded by members of parliament.
"Honourable members should know first of all that we have a squeezed budget. If we increase CDF to K1 billion across the board as they have proposed it would attract an extra K8.2 billion to offset the deficit. And where would government get this money from? We surely will do something to adjust the CDF within this budget, but not as demanded by the honourable members of parliament,î he said.
"It is impossible to increase to K1 billion this year, but we would rather start with something so that in the next few years we shall reach K1 billion as demanded. But we must also realise that as we demand this increase, it means that somebody else in the economy must generate this money."
Dr Musokotwane said if the demanded increment were to be effected this year, other projects would suffer.
"If we do it now, Nansaga Agriculture Development and Kasaba Bay tourism development projects would suffer. And these projects are a seed that we want to plant for the future, so let's start them now. Remember that when you plant a seed, it grows to affect the next generation, and that is what we are trying to do," said Dr Musokotwane.
And EAZ supported the government's cancellation of the windfall tax on mines.
Association president Mwilola Imakando told the committee that such tax would have made it difficult for the mines to operate effectively amidst the global credit crunch.
"...There was a designed fault in the windfall tax arrangement on the mining sector. Government ignored the production side, and we are glad that in fact, the government has just shown that it is a listening government by cancelling the windfall tax. That is just about what any government can do because production costs in the mining sector are just too high," said Imakando.
Labels: EAZ, NCZ, PARASTATALS, SITUMBEKO MUSOKOTWANE, WINDFALL TAX
Read more...
‘Use FSP funds to revamp NCZ’
Written by Kabanda Chulu and Joan Chirwa
Wednesday, February 11, 2009 10:17:43 AM
THE government should use part of the K435 billion allocated to Fertiliser Support Programme (FSP) to revamp operations at Nitrogen Chemicals of Zambia (NCZ), sector players have advised.
But agriculture minister Brian Chituwo has said piecemeal financial bailouts would not solve the current problems being faced by NCZ.
Meanwhile, a Chisamba farmer Dutch Gibson has suggested a complete elimination of the FSP, charging that the programme is a source of corruption in the Ministry of Agriculture.
In the 2008 budget, the government announced a K58 billion proposal for the recapitalization of NCZ but in June the same year, this was revised downwards to K8 billion.
The then agriculture minister Sara Sayifwanda indicated that the government decided to revise the funding to avoid another misappropriation of funds like was experienced before when K24 billion, which was given to the company in 2003, was used by management mainly for administrative purposes instead of improving machinery at the plant.
Sayifwanda that time further observed that government had been spoon-feeding NCZ for a long time and that it was now up to the company to seek other sources of revenue for it to become self-reliant.
However, during the Agricultural Consultative Forum (ACF) post-budget discussion for stakeholders in Zambia’s agriculture industry held in Lusaka last week, Women in Agriculture board member Helen Samatebele said resources allocated for the importation of FSP fertiliser should also be channeled to recapitalise operations at NCZ.
“This budget needs balancing to realign it to cater for key sectors and it is not too late, for instance why should we continue importing fertiliser and incurring huge cost when NCZ just requires K58 billion for recapitalisation?” asked Samatebele.
“And why can’t this government channel part of the K435 billion meant for FSP to revamp operations at NCZ which is still viable? And this is the same government that talks about job creation and yet they seem not to be doing anything about the company which is also the lifeblood of Kafue district.”
But Dr Chituwo, without being specific, said several factors needed to be addressed before NCZ could be recapitalised.
“There are many things that we have to sort out to prevent NCZ becoming a drain of resources hence piecemeal financial bailouts will not help and government is committed to ensure that NCZ becomes a viable company for the agricultural sector,” said Dr Chituwo.
Nevertheless, some industry experts believe that the NCZ was still a viable entity that could play a key role in Zambia’s pursuit of diversifying the economy away from copper mining to agriculture.
“Most of the raw materials for the products of NCZ are found locally. Ammonia is produced from coal which is mined at Maamba Collieries through coal gasification process. The raw materials for Nitric Acid production are compressed air and ammonia while the raw materials for Ammonium Nitrate are Ammonia and Nitric Acid,” they stated. “Sulphuric Acid is produced from pyrites while Ammonium Sulphate is produced from Ammonia and Sulphuric Acid and the compound fertiliser NPK is produced from Nitrogen, Phosphorus and Potassium granules.”
And according to the privatisation wing of the Zambia Development Agency (ZDA), when fully operational, NCZ could command a large share of the market for its products [all types of fertilisers] that are utilised in the domestic agricultural market and ammonium nitrate and sulphuric acid could be sold to the mines.
But due to lack of working capital coupled with stiff competition from imported fertilisers, NCZ has been failing to meet the requirements of the country and the company has since targeted its marketing efforts on a few local entities and government agencies.
NCZ has also sought to reach small-scale producers by introducing smaller packages of fertiliser which are sold through retail outlets.
The company was incorporated in 1967 and has three complexes that produce ammonium nitrate and nitric acid. It also has fertiliser blending and the sulphuric acid plants.
And Gibson said government could get financing from donors for small-scale farmers’ inputs while concentrating its energies on improving infrastructure for a vibrant agriculture sector.
“There are a lot of costs associated with the FSP, meanwhile it is encouraging corruption in the sector. I think it should just be scrapped off,” Gibson suggested. “We can cut out FSP completely and let [finance minister Dr Situmbeko] Musokotwane, [former finance minister Ng’andu] Magande and [agriculture minister Dr Brian] Chituwo go to the donors and sell the idea of FSP. They [the donors] would probably be willing to subsidise agricultural inputs in Zambia and then this will see us producing more and exporting surplus produce to neighbouring countries like Angola and the Democratic Republic of Congo.”
And during the ACF discussion, former deputy director at Livestock Development Trust (LDT) David Daka said the government was deceiving itself by allowing FSP and Food Reserve Agency (FRA) to be under the Ministry of Agriculture and Cooperatives (MACO) when the two institutions were just involved in ‘fighting crises’.
“FRA and FSP should be transferred to disaster management and mitigation unit because the two institutions are just involved in fighting crises instead of preventing the occurrences,” Daka said.
“And funding for animal disease control does not mean that animal production will increase because those animals are not well fed and no matter the good medicine given, those animals will still die hence the focus should be on animal husbandry to increase production.”
Daka also said NCZ should be transferred back to the Ministry of Commerce so that a strategic partner could be found to revamp operations.
And Maureen Mwanawasa Community Initiative (MMCI) coordinator Miriam Nkunika said small-scale farmers were willing to buy fertiliser if the commodity could be made available at the time they sell their produce.
“We need to have fertiliser throughout the year not just in November and December and many farmers are willing to buy the commodity immediately they sell the produce some time in June or July and we appeal to government to ensure that fertiliser is available all year round,” said Nkunika.
And former FRA executive director Chance Kabaghe said there was need to clearly spell out the outlying and uneconomic areas where the FRA should concentrate while allowing the private sector to participate as well.
“Firstly, markets should be predictable and reliable and when we say outlying areas for FRA, what does it mean because we need to be clear since outlying areas can be Chongwe or Mungule and government must facilitate the participation of the private sector in agriculture marketing process,” said Kabaghe.
And Zambia National Farmers Union (ZNFU) president Jervis Zimba expressed concern that the increased allocation to agriculture would not produce positive results if a tangible plan was not developed for the sector.
“It is important that government embarks on ensuring that come next year, we can have proof of increased productivity of say three to four tonnes of maize per hectare as a direct result of funding. But it will be very disappointing to be told that funds were wasted on workshops at the expense of providing extension services,” Zimba said.
“Enhancing productivity has been a primary concern among small-scale farmers and we again urge government to adopt a coordinated plan of action that should monitor progress being made.”
Recent data from the Ministry of Agriculture and Co-operatives indicates that yields per hectare have slumped over the years to around 1.33 metric tonnes of maize due to, among other reasons, poor agricultural practices among small-scale farmers resulting from the almost non-existent extension service. However, research has shown that using the available seed in the country, average maize production was expected in the region of five tonnes per hectare, with correct planting, fertilisation and weeding by the small-scale farmers who contribute over half of the country’s total maize production.
Labels: DAVID DAKA, FSP, JERVIS ZIMBA, LDT, NCZ, PARASTATALS, SARA SAYIFWANDA
Read more...
Govt lacks plans to recapitalise NCZ – Paradza
Written by Gloria Siwisha
Sunday, January 25, 2009 7:23:25 AM
NATIONAL Union of Commercial and Industrialised Workers (NUCIW) president Seth Paradza yesterday said government's move to invite Koreans to invest in Nitrogen Chemicals of Zambia (NCZ) signals their lack of plans to recapitalise the plant.
Commenting on President Rupiah Banda's appeal to the Republic of Korea to help rehabilitate NCZ, Paradza said the move was not welcome, as it had sent wrong signals to the workers.
He said the move had also re-enforced earlier calls by workers to have their terminal benefits paid.
"It is clear that the government is unwilling to recapitalise the plant because if they were, they would not invite outsiders to invest into the plant although the plant needs assistance," he said. "So we are saying let them pay us our terminal benefits."
Paradza said it was wrong for the government to say they had no financial resources when they had plans to import more fertiliser for this year's farming season.
He said the lives of many families in Kafue who solely depended on NCZ had been disturbed owing to the financial problems the plant was currently facing.
"We know that government intends to import more fertiliser this year but we are saying if they could even give NCZ half of that money they want to spend, it will be up and running," Paradza said. "This company can produce as expected when fully recapitalized."
President Banda on Thursday appealed to the Korean government to invest in NCZ when he received credentials from that country's representative to Zambia.
Earlier in an interview, agriculture minister Dr Brian Chituwo disclosed that about K5 billion had been set aside for the rehabilitation of NCZ.
Dr Chituwo also disclosed that a committee of Cabinet ministers had been set up and negotiations with NCZ management on the way forward had started.
He said the government attached great importance to the plant and would do everything possible to rehabilitate it.
Dr Chituwo, who could not categorically state whether the government would fully recapitalise NCZ, said the Cabinet ministers would submit a report to President Banda over the matter.
Dr Chituwo said the committee would also look at NCZ's indebtedness and action would be taken based on the outcome of the report.
Labels: NCZ, PARASTATALS, RUPIAH BANDA
Read more...
