JCTR calls for new mine tax regime
By Margaret Mtonga
Tue 19 Jan. 2010, 04:00 CAT
THERE is serious need to rework the tax regime of the mining sector, Jesuit Centre for Theological Reflections (JCTR) has observed. In a statement, JCTR programme officer for debt and public resource monitoring Privilege Haang’andu noted that the year ending 2009 was a challenge for Zambians because there was a huge challenge in the fiscal policy.
“It was challenging in that the global economic crisis continued to seriously depreciate Zambia’s main foreign exchange earner, the mining industry, seeing the commodity prices tumbling to below US $3,500 per metric tonne in the first quarter of 2009,” Haang’andu stated.
He stated that Zambia had opportunities to grow economically but little achievements were recorded.
“The copper prices improved up to more than US $6,000 per metric tonne in the last quarter of 2009, slowly bringing some stability to national income,” he noted.
“However, there is still a concern in this area. Much as copper is Zambia’s most important source of foreign exchange, accounting for two thirds to three-quarters of its export revenue, tax revenues from the copper sector are not significant contributors to the public finances.”
Haang’andu stated that it was important for the government to take note of the crucial missed opportunities.
“First, the scandalous scam in the Ministry of Health was a momentous revelation that unveiled inherent weaknesses in financial administration in the public service,” he stated. “We continue to hope that thorough investigations will sweep-clean the entire public service system and restore confidence in the Zambian people.”
Haang’andu added that it was important for the government to have a good strategy in order to curb corruption in the country.
“The revelations made by the 2007 Auditor General’s Report were an immense window for the Zambian government to spell out its seriousness in curbing misappropriation and theft of public funds. The correction of past vices and corrupt practices, some of them by personnel still serving in public,” Haang’andu stated.
He stated that the government should put up a strong mechanism that would help the public service officers as public funds were for public benefit and not for private use.
“With so much uncorrected or at least not made known to the public, the taxpayers are left at risk of skepticism and fear that their money this year and in the future could still be stolen, “he stated. “What measures have been put in place to avoid similar occurrences in the future, one of which would be to sack culprits.”
He applauded the government for the change in the budget cycle among others, which he said could make a difference.
“But also there are still systemic problems, for instance, the lack of a strong debt mechanism, unnecessarily bureaucratic and almost impossible processes of acquiring information that should be readily available to the public,” stated Haang’andu.
Labels: JCTR, PRIVILEGE HAANG'ANDU, TAXATION, WINDFALL TAX
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JCTR urges govt to prioritise infrastructure development
By Maluba Jere and Chiwoyu Sinyangwe
Fri 27 Nov. 2009, 04:00 CAT
GOVERNMENT needs to become more committed to infrasructure development and re-align its priorities and policies towards national needs if it has to deliver on its promise of poverty reduction, Jesuit Centre for Theological Reflections (JCTR) has urged.
JCTR's debt, aid and trade programme assistant Andrew Banda stated in a press release yesterday that socio-economic injustice would continue to be perpetrated among the poor if basic infrastructire is not developed.
Banda stated that it was imperative for the governmnet to streamline the implemenatation of developmental programmes especially when dealing with debt resources.
He emphasised that delaying infrastructure development must not be an option because of the country's many pressing needs.
Banda urged the government to place more commitment on the timely implementation process and fulfill its pledge and promise of poverty reduction through equitable economic growth.
“We saw this when we monitored the BADEA (Arab Bank for Economic Development in Africa) loan contracted by government for feeder roads in Copperbelt Province,” stated Banda. “This is also a trend evident in the JCTR monthly Basic Needs Basket which reveals that the cost of living is always closely related to the availability and state of infrastructure facilities.”
And JCTR debt policy programme officer Privilege Haang’andu noted that with the current trend of continued non-implementation and postponement of development programmes, the Vision 2030 and National Development plans would barely be met.
Labels: ANDREW BANDA, INFRASTRUCTURE, JCTR, PRIVILEGE HAANG'ANDU
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JCTR slams govt’s corruption fight
Written by Kabanda Chulu
Saturday, September 19, 2009 5:10:36 PM
JCTR programme officer for debt monitoring Privilege Haang'andu yesterday said the current government's fight against corruption is an erroneous belief or fire-fighting mechanism because theft has been "legitimised" due to
weak enforcement laws.
And Haang'andu has advised the government to devise
its own debt sustainability analysis system, saying Zambia's debt situation is worrying and the country is slowly getting back into the debt trap.
During the Jesuit Centre for Theological Reflection (JCTR) media day in Lusaka last Thursday, Haang'andu said fighting corruption would be meaningless unless the government takes action against culprits mentioned in the Auditor General's reports.
"In this country we have legitimised theft due to weak enforcement laws because how can we allow a minister coming back from abroad but failing to retire imprest or failing to repay a loan?" Haang'andu asked.
"So the current government's fight against corruption will remain an erroneous belief or fire fighting mechanism unless government takes action against all those culprits mentioned in the Auditor General's reports."
He said the government should not listen so much to the international financial Institutions - the International Monetary Fund and World Bank - but must devise its own debt management framework.
"Zambia's debt situation and policy framework is worrying and debt cancellation required a lot of effort by many stakeholders but without a solid system to handle debts, we are slowly getting back into the debt trap especially that there is plenty of money to borrow and the IFIs will continue telling us that 'our debts are sustainable' so we can borrow," Haang'andu said. "But government should devise its own debt sustainability analysis system with legal backing so that we can only borrow for productive purposes."
He explained that allowing the minister of finance to contract loans was not good and must be stopped.
"Government borrowing should be done by Parliament and the fears that this idea will curtail executive powers is erroneous since Parliament will just set a ceiling every year and the finance minister can still go back to Parliament to ask for more if need arises and it is happening in many African countries and it also helps to avoid situations where we have seen a minister goes to China or India for summits but contracts loans in form of TATA or hearse vehicles respectively," said Haang'andu.
Labels: CORRUPTION, JCTR, PRIVILEGE HAANG'ANDU
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JCTR applauds the NCC
Friday, May 15, 2009, 14:12
The Jesuit Centre for Theological Reflection (JCTR) has welcomed recommendations from the Public Finance Committee of the National Constitutional Conference (NCC) about water-tightening the Parliamentary oversight in debt contraction.
Parliamentary oversight entails that Parliament will, by legal mandate, scrutinize, debate, approve, and limit the loans the ministry of Finance and National Planning will raise for the nation.
JCTR Programme Officer for Debt and Public Resource Monitoring Privilege Haang’andu explains that the move would ensure that Parliament takes into account debt sustainability and the needs of the country in every given financial year.
Mr. Haang’andu said in Lusaka today that this is a significant step towards realizing a Zambia free from a debt trap.
Mr. Haang’andu further said that the management of debt resources should be re-looked at to determine how honest and transparent the country has been in expending debt recourses.
He said it is worrying to note that the Auditor General’s report for 2007 exposes a lot of fiscal leakages and indiscipline.
Mr. Haang’andu observed that until measures are taken against those culpable of those huge misappropriations and theft, the country has a long way in ensuring that borrowed resources benefit all Zambians, especially the poor.
He said Zambians need assurance that their financial resources are being put to good use.
ZANIS
Labels: DEBT, JCTR, NCC, PRIVILEGE HAANG'ANDU
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Mining firms urge revision of windfall tax
Written by Fridah Zinyama
Thursday, January 08, 2009 2:15:10 AM
THE Jesuit Centre for Theological Reflection (JCTR) has asked the government to urgently prioritise the diversification process owing to the current ‘windfall tax saga’ in the mining sector.
The mining companies have called on the government to revise the windfall tax in view of the low copper prices on the international market.
In a press statement, JCTR Programme officer for Trade and Capacity Building Humphrey Mulemba stated that the government’s concentration on the mining sector had deprived other sectors like agriculture of the much-needed infrastructure for its development.
“Zambia’s foreign earnings from copper and cobalt amount to 80.8 per cent which lessens the economic dependence of government on other taxable sectors,” he stated.
Mulemba further expressed concern at the inability of government to predict major economic turning points.
“For example, neither the commodity price surge in 2004 nor the slump in 2007 was widely predicted. For Zambia, the instability and unpredictability of mineral prices and revenues pose a threat to sustainable development prospects,” stated Mulemba.
“As we have seen, the credit markets constrict in the international economy, the financial crisis has sparked job losses and closure of mines in Zambia. The country fell into the trap where during the boom, when prices and revenue prospects were high the scope for foreign borrowing was encouraged and increased.”
And JCTR programme’s officer for Debt Privilege Haang’andu observed that the level of dependence on earnings from copper and cobalt showed the impact of the “boom and bust” cycles of the mining sector on both governance and economic management.
Haang’andu observed that the deteriorating governance problem was illustrated by intended protests over the rising food prices.
“Similarly, poor economic management has been exhibited through continued high levels of borrowing without proper institutional policies that govern the contraction and execution of external debts,” he stated.
He also observed that dependence on copper and cobalt earnings perpetuated under-development, thereby increasing the need to find a solution by diversifying the economy in more stable sectors.
“A clear lesson is the harm that the boom and bust cycles cause to countries like Zambia, whereby the country fails to save enough through windfall taxes or, even worse, borrows heavily against uncertain future revenue,” stated Haang’andu.
Labels: HUMPHREY MULEMBA, JCTR, MINING, PRIVILEGE HAANG'ANDU, WINDFALL TAX
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