PF wants to slide Zambia into another debt trap - Magande
By Abel Mboozi
Sun 01 Dec. 2013, 14:01 CAT
COMMENT - "And Dr Situmkeko Musokotwane last week said the rate at which Zambia's external debt is climbing is worrying." Wow, really. This is the same Finance Minister who shielded the mines from taxation, and justified that by saying "We can always borrow". Short memories, perhaps, or just blatant hypocrisy and corruption?
Zambia now has more sources to borrow from - Musokotwane
By Bright Mukwasa
Fri 04 Mar. 2011, 04:01 CAT
‘Zambia can’t stop borrowing’
Written by Kabanda Chulu
Thursday, June 11, 2009 12:28:12 PM
" ZAMBIA can’t stop borrowing because available local resources are not adequate to sustain the financing of many projects around the country, finance minister Situmbeko Musokotwane has said. "
"“And the US $7 billion debt we had, in absolute terms it was a small amount by any standards but through our inability to service it, that was too huge because economic activities that needed to be sprouted out of that did not happen.” " - MrK
IT is sad that the PF wants to slide Zambia into another debt trap that would be difficult to dismantle, Ng'andu Magande has charged.
Magande, who is National Movement for Progress president, said it is surprising that the PF government is against the re-introduction of windfall tax on mines when it is the only sure way of raising reasonable revenue for the country.
He wondered why the PF government which campaigned on the premise of re-introducing the windfall tax was backpeddling over the matter and was now resorting to huge external borrowing.
"Even if the government does not want to re-introduce this tax on mines, what other tax sources are they intending to get money from in the mining sector? Money lies in windfall tax and the PF should tell the nation whether it is its policy not to implement the windfall tax," Magande said.
Levy Mwanawasa's government in 2008 introduced a windfall tax on copper at 25 per cent owing to the sector's low contribution to government revenue which still stands at less than two per cent.
Magande, as finance minister then, said the government envisaged to earn at laest U$415 million annually from the windfall tax as mining companies accounted for over 80 per cent of the country's export earnings.
However, Rupiah Banda's government in 2010 scrapped the tax amidst calls from civil society and opposition political parties to have it maintained.
The PF during its campaigns in the run-up to the 2011 elections promised to reintroduce the tax but finance minister Alexander Chikwanda last year, categorically indicated that the windfall tax would not be brought back and called those calling for its re-introduction 'lunatics.'
Commenting on Parliament's decision to allow Chikwanda to increase Zambia's external borrowing ceiling from K20 billion to K35 billion, Magande said in Lusaka yesterday that Zambians had now seen for themselves that the PF does not mean well.
He said the expansion of the mining industry in Zambia was fast and that was where economic growth was coming from.
"The expansion of the mining industry is very fast, that's where all this growth is coming from and then we have growth of six to seven per cent but poverty is still high because there is no equitable distribution of wealth which is supposed to be done by the government," he said.
He said taking the route of external borrowing would only take Zambia back into a debt trap situation.
"Why can't we really learn? It was going to be a different scenario if we had people in government now that have never served in similar capacities. The minister of finance has been in government before, so are President Sata and Vice-President Scott, so why can't we learn from those mistakes?" Magande asked.
"There is no doubt that the decision to raise the external debt ceiling would plunge Zambia into the Third Republic times, where her external debts would swell to unimaginable levels, which is sad."
Magande said former president Frederick Chiluba could not buy medicine in hospitals and that he built no single school then because he was servicing the external debt.
"Even medicines were in short supply because the government could not buy them. It is therefore, sad that the PF want to slide Zambia into another debt trap that would be difficult to dismantle," Magande said.
And Dr Situmkeko Musokotwane last week said the rate at which Zambia's external debt is climbing is worrying.
Dr Musokotwane, who is the immediate past finance minister, said it was saddening that Zambia's external debt which stands at U$3.2 billion was getting pushed up because of quick borrowing.
He was debating a motion in Parliament moved by Chikwanda, asking the House to permit him to increase Zambia's external debt borrowing ceiling from K20 billion to K35 billion re-denominated currency.
"The rate at which Zambia's indebtedness is climbing is too fast. Two years ago the debt was U$1.5 billion, today it's U$3.5 billion, in two years, you are talking of an increment of U$2 billion, this is too fast," Dr Musokotwane said.
"UNIP increased the debt from zero to U$7 billion in 27 years now we are increasing the debt by U$2 billion in two years, this is worrying people," he said.
Dr Musokotwane said in the Yellow Book, external debt indicated that a U$2 billion bond would be issued in 2014, meaning that the debt would shoot to over U$5 billion by next year.
"In three years, from U$1.5billion to U$5.7 billion, this of course is now getting close to where we were when we got debt relief, which is definitely worrying," Dr Musokotwane noted.
He said external borrowing of 75 per cent was substantial and raised questions.
Dr Musokotwane said the external debt could even be more than U$3.2 billion because he was not too sure the control called 'contingency liabilities' was included in the amount.
"These are amounts of money that can potentially become real debts. Of hand is the ZAMTEL liability; there is no question of the fact that the Libyan company(Lap-Green) transmitted something like close to U$400 million to acquire ZAMTEL," he said.
"Obviously they will not accept that such money goes into the drain, it is a contingent liability subject to judgment or agreement to the government and of course with time, we don't expect the US$400 million to be less than $500 million then."
He said the same applied to the Railways Systems of Zambia which has reverted to Zambia Railways.
"So, if you add all these plus other smaller amounts, I suspect we could already be owing U$3.7 billion which means that in actual fact, we could have already reached the existing limit perhaps even exceeded it. So, the debt issue is obviously a serious one," Dr Musokotwane said.
Bweengwa UPND member of parliament Highvie Hamududu in his debate said it was wrong for the government to premise the 2014 national budget on the decision to increase external borrowing.
Labels: DEBT, NEOLIBERALISM, NG'ANDU MAGANDE, SITUMBEKO MUSOKOTWANE
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(STICKY) (LUSAKATIMES) Management failure at ZCCM-IH has lead to a loss of $1 billion income
Time Posted: August 7, 2013 11:54 am
Long-term minority shareholders of Zambia Consolidated Copper Mines-Investment Holding (ZCCM-IH), the investment holding company of the Zambian Government have urgently appealed for intervention in the corporate governance and management of ZCCM-IH as Zambia continues to loss colossal sums of money through mismanagement.
This is according to an Open letter addressed to Vice President Guy Scott and made available to the media. How GRZ and the Zambian people continue being cheated and short changed by Foreign mining companies
The Long-term minority shareholders raised concerns over the ineffective management of the company that has led to ZCCM-IH and through it the GRZ and the Zambian people being cheated and short-changed by the foreign mining companies in which it is invested.A few examples are:
1. According to the international auditors Grant Thornton, Mopani Copper Mines fraudulently avoided $175 million in corporation tax to the ZRA in the 5 years from 2003 to 2008, by various fraudulent procedures including transfer pricing to the Swiss parent company Glencore and misrepresentation of production figures and production costs. In this same period ZCCM-IH also lost $50 million per year in profits from Mopani
source:
appendix 1
appendix 1.1
Questions
* Why has ZCCM-IH together with the Government and the Zambian Revenue Authority failed to take any action whatsoever to recover these fraudulent losses?
* Why has no pressure been put on Mopani to come clean or otherwise lose its mining licence?
Recovering these fraudulent gains from Glencore along with due penalties would make a big difference to the well-being of the Zambian people as well as dissuading other companies from doing the same.The shareholders reminded Vice President Guy Scott of what he once said.
“We don’t want to destroy the cow that produces the milk but we want to make sure that you get your share of the milk”Post
* Why does Government let Glencore take our share of the milk?
* Why has the new audit of mines initiated by the former Mines Minister Wilbur Simuusa not been finalised and made publicsource: Reuters
* Why has the current Minister of Mines Yamfwa Mukanga failed to take action on this scandalous situation, whereas in 2011, he stated
“no government official must protect Mopani Copper Mines for violating the law and Mopani should be punished”Post
2. In 2007, the Zambian Task Force on Corruption investigated a fraudulent loss of $ 100million at the expense of ZCCM-IH. These investigations helped to identify those responsible, as well as the banks that received the stolen funds but as surprising as it sounds, no action was taken!All the investigations that were started during the presidency of the Late President Levy Mwanawasa have been stopped. Why were they not taken up since the election of the new President 18 months ago?
Source:APA
APA – Port Louis (Mauritius) Zambia and Mauritius, within the framework of the MutualAssistance Programme are working to retrieve 100 million dollars alleged swindled from theZambia Consolidated Copper Mines (ZCCM), APA learnt here.The Zambian government holds 85 percent of shares in the ZCCM.A high level delegation of the Zambian Task Force on Corruption, Tuesday arrived inMauritius to pursue the matter. Rama Valayden, the Attorney General and Minister of Justice to reporters Wednesdayin the capital, Port Louis, that he will hold a working session in the evening with theZambian delegation to discuss the follow up of the case which implicates offshorecompanies incorporated in Mauritius.He said about 100 million dollars have been transferred through the Bank of ButterfieldAccount in London, before being invested in the banking system in Mauritius and saidthe suspects in the scam are known by Zambian and Mauritian authorities.At the beginning of the year, at the request of the Zambian government, the MauritiusSupreme Court issued an ’Attachment and Freezing Order’ to several banks here onthe accounts of the suspects, Mr Bernard Mungulude, Mr Kazhi Kateke and the Laxidiamond company.The duty of the Zambian Task Force on Corruption now was to seek to identify the localagents and representatives of the suspects so as to be able to recover and repatriate themoney.Hence, local banks have been assigned to submit documentary evidence to expose thecriminal gang, or else the banks will face dire consequences, Valayden said. SR/daj/tjm/APA 02-05-2007
3.ZCCM-IH hold a 20% stake in Kansanshi Mining, the most profitable Mining Company in Zambia. The ZCCM-IH stake in Kansanshi currently represents $550,4 million in undistributed profits attributable to the Zambian holding. FQM 2012 Annual Report (see page 56). Non-controlling interests are the Minority shareholders’s benefits after investment. ZCCM-IH is the only Minority shareholder in FQM accounts.The amount of non-controlling interest (for ZCCM-IH) is $550.4 million, a sum that increases by more than $100 million per year. However the majority owner First Quantum Minerals (FQM) insists on conserving this money as a legal reserve and only distributes derisory dividends to ZCCM-IH in spite of having made more than $2,5 billion in net profits in recent years and having totally recovered its investment in the mine.
Question:
1. Why does the ZCCM-IH management and the GRZ fail to put pressure on FQM to distribute fair dividends to ZCCM-IH and so get its proper yield from the most important investment held by ZCCM-IH on behalf of the GRZ?As this scandal continues, FQM is using Zambia’s money to build the world’s largest mining corporation by buying othermining companies outside Zambia.
2.When will the GRZ take action to get its fair share from its vast mineral wealth and put a stop to foreign companies plundering its resources? What will the Zambian people have to live on once these resources are depleted?
Opacity in governance of company as well as infringement on shareholders rights
The long term minority shareholders also raised concerns over the persistent bad governance of ZCCM-IH with respect to minority shareholders as demonstrated by the way the selection of the eighth board member has been handled.
Early last year ZCCM-IH launched a call for nominations to elect a representative of minority shareholders to the Board of ZCCM-IH. The GRZ holds 7 seats on the board and the nomination of an eighth member to represent minority shareholders was seen as a significant effort improve the corporate governance of the company by letting minority shareholders have their say in company matters in proportion to their holding (12.3% of ZCCM-IH shares traded on Paris Euronext, the London and the Lusaka Stock Exchanges)
Use of an obsolete Register of shareholders
The minority shareholders made a very strong and co-ordinated response to this call despite starting from the considerable disadvantage of not being recognised as registered owners of ZCCM-IH shares.The Company Secretary, Mr Chabala uses an obsolete Register of Shareholders which does not list the owners of any ZCCM-IH shares bought through the Paris Euronext Stock Exchange (the most active of ZCCM-IH’s markets). Strangely, shares of the old ZCCM bought decades past in the UK and whose owners died many years ago are listed as registered shareholders.
To compound this failing, Mr Chabala is said to refuse to recognise official bank or broker’s certificates attesting to the ownership of ZCCM-IH shares.
The minority shareholders have repeatedly asked the Company Secretary to correct this failure and have explained the procedure to be followed to update the register, without success. As a consequence of this attitude, most minority shareholders are denied their legal right to attend company meetings or to vote directly on company matters.In order to respond to this “Call for nominations” minority shareholders had no choice but to adopt avery laborious and indirect voting procedure (via their stockbrokers, banks and Euroclear, theInternational Share Depository that records all share ownership and transfers) to ensure that their voteswere registered.
Secrecy
Unfortunately, but not surprisingly, the company refused to make public the result of this vote (even though the minority shareholders gave a clear mandate to their chosen representative by a very large majority of the votes submitted). Since then the Executive Chairman Mr Wila Mung’Omba, in what the shareholders describe as a totally unacceptable act of bad governance, has postponed indefinitely the nomination of the eighth board member to represent the minority shareholders.
It is not known the reasons why the Executive Chairman wants to keep minority shareholders excluded from exercising their democratic rights in matters of governance of the company of which they, alongside the GRZ, are the owners and who have the same reasons to make sure that this company is properly run for all the stakeholders.
The minority shareholders fear that the Executive Chairman may be planning a biased and unethical conversion of government debt into ZCCM-IH shares
ZCCM-IH Cautionary Announcement leading to severe dilution of the minority shareholding thus making the nomination of the eighth board member no longer an issue and giving him the freedom to run the company single-handedly.
The opacity of the companies intentions and the past years of poor (or corrupt) governance give credence to even the worst scenarios. Having exhausted all other avenues of intervention (letters to successive Chairmen, the Zambian Securities and Exchange Commission (SEC), the Lusaka Stock Exchange etc.), the long term minority shareholders humbly asked for the Vice President to help to ensure that the legal rights of the Minority Shareholders of ZCCM-IH are upheld and that the company finally applies the rules of good corporate governance. The credibility of foreign investment in Zambian securities is surely weakened by the failure to ensure high standards of governance of this most emblematic government-controlled Zambian company and can only bring dishonour to the Zambian Government.
Conclusion
Without all these management failures, ZCCM-IH would have been able to register income of more than $1 billion and so refund the long-standing debt of $425 million to the GRZ as well as paying dividends to shareholders (including the GRZ) and investing in the Zambian economy. Had ZCCM-IH benefited from good governance, good management and strong support from its majority shareholder the GRZ, to make sure that it got its fair share from its mining investments, it would now be a flourishing company providing wealth, employment and pride for the Zambian People.
Time for us to develop ourselves
President Sata once said “Zambia was tired of moving with a “begging bowl” from one developed country to another as the country had the capacity to become self-reliant and lift its millions of unemployed youths out of poverty if its vast natural resources were exploited to the benefit of Zambians”. He added “Time has come for us to develop ourselves and let others come to beg from us because we have more resources than the people we are begging from”. The minority shareholders expressed extreme disappointment that the Executive Chairman Willa Mung’omba has not put all his efforts into ensuring that ZCCM-IH lives up to the expectations of President Sata.They said this lack of action, hesitations, incomprehensible decisions and lack of transparency only serve to create suspicion about the intentions of the company and the government-appointed officials that runit.
The long term minority shareholders acknowledged however, that since the nomination of the CEO Mukela Muyunda in June 2010, the management has made unprecedented efforts to catch up on no less than 5 years arrears in the publication of the company’s accounts. They encourage him to finally get the the accounts up to date in2013 and to make sure, as promised, that the company’s assets are listed in the balance sheet at fairvalue. Until now these have been incomprehensibly listed in the company balance sheet at minimal cost valuations (approx. year 2000), which massively undervalues the company and disastrously distorts its balance sheet.
Promises can not hide a woeful performance
Changes have also been promised since more than 40 shareholders sent emails in November 2012 to the executive Chairman W. Mung’Omba expressing their dissatisfaction about the management of the company. The shareholders now fear that these may be hollow promises to calm the reactions of the shareholders.Only time will tell.
In any case these hypothetical promises cannot to hide the woeful performance of ZCCM-IH. At a time when the GRZ is considering quoting other para-public companies and inviting Zambian citizens to invest their hard-earned money in such companies, should it not first take a close look at its most emblematic para-public company and ensure that ZCCM-IH sets an examplet hat others can follow? There is still so much to be done here.
The minority shareholders stated that have exactly the same interests as the majority shareholder, the GRZ: that ZCCM-IH becomes one of the leading companies in Africa. It has the means to achieve this, but so far,as a result of weak direction, it has lacked the will to make significant progress. They therefore humbly asked the Vice President to consider taking an active part to ensure that the corporate governance and management of ZCCM-IH are of the highes torder and above suspicion so that the Zambian people can once again be proud of this flagshipcompany and reap the benefits that should be theirs.
Labels: CORRUPTION, GUY SCOTT, MINING, SITUMBEKO MUSOKOTWANE, WILBUR SIMUUSA, WILLA MUNG'OMBA, YAMFWA MUKANGA, ZCCM-IH
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MMD won't go into oblivion like UNIP, says Dora
By Kombe Chimpinde and Allan Mulenga
Tue 18 Dec. 2012, 14:00 CAT
MMD chairperson for finance Dr Situmbeko Musokotwane wants Nevers Mumba's dual presidency and Major Richard Kachingwe's expulsion discussed by the party's National Executive Committee (NEC).
And MMD spokesperson Dora Siliya says the party will not go into oblivion like UNIP did.
Meanwhile the MMD Lusaka Province youths have petitioned NEC to endorse the expulsion of Maj Kachingwe at their next meeting.
In an interview yesterday, Dr Musokotwane, who is Liuwa MMD member of parliament, also said MMD was undergoing a rough patch.
"If it is tabled in the NEC, then we will express our views on it," he said.
"If there is a contention about that issue, it should be tabled before NEC and then we discuss and agree on the way forward."
He, however, said the differences were normal in politics.
"This is part of politics. How many vice-presidents has UPND had (since its inception)? How many national secretaries has PF had? So squabbles in politics happen. The important thing is that we are able to regroup and continue forward. Right now, we are going through a rough patch. I think it will be unwise to deny that," he said.
"Defections are a normal thing in any party. There were defections in UNIP. They were defectors to MMD when it was in government. You remember about two years ago nearly half of the members of parliament (rebel MPs) belonging to PF defected, almost half. So these are normal things in politics. Of course you must have good reasons for defecting and personally I have no reason to defect from MMD."
Dr Situmbeko was hopeful that many Zambians would begin to symphasise with the MMD.
"The fact that election promises have not been delivered…they (people) are dissatisfied with the fact that they had very high hopes in good governance, observance of the rule of law, observance with freedom of association. They are observing these things. They are very disappointed that now they have to queue up for mealie -eal. These are fertile grounds for the opposition parties. Those who are affected will see value in joining the opposition MMD," said Dr Musokotwane.
He said the defections in the party were as a result of the rough patch that had gripped the former ruling party.
"Party's are like living organisms. There was PF, nearly half of the people defected but it found other ways of bringing other people and today, they are in government. The success shall not be judged on whether people are defecting but whether many more other people are being attracted to the party," Dr Musokotwane said.
Asked why they were seemingly no new members joining the MMD, a situation that had been compounded by the confusion that had befallen the party, Dr Situmbeko said that each party had its own squabbles.
Recently, MMD chairman for elections Gabriel Namulambe resigned from the MMD to join the PF.
And party vice-president administration Dr Brian Chituwo differed with Mumba over his dual presidency of both the MMD and the Reform Party and Maj Kachingwe's expulsion.
Dr Chituwo wants both issues discussed by NEC but Mumba says the decision to expel Maj Kachingwe is final.
And speaking when she received the petition by Lusaka youths on behalf of NEC members, Siliya, who is also Petauke Central MMD member of parliament, said the leadership would not be swayed by the conduct of a few individuals who were against the party leadership.
"This party is yours. You have to ensure that you take ownership. You have to ensure that you support the leadership. There is no party with the record like MMD. We are not going to be swayed. We are not going into oblivion like UNIP did. It will not happen to MMD," she said.
Siliya said the greatest enemy of the PF was time to deliver of its campaign promises.
"The greatest enemy of promises is time. MMD has time on its hand because we will see those promises fail and we will remind the Zambians that those promises failed. We have a track record and MMD back in government will ensure that we improve on that record," said Siliya.
Labels: DORA SILIYA, MMD, NEVERS MUMBA, SITUMBEKO MUSOKOTWANE, UNIP
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COMMENT - Who on earth is asking Situmbeko Musokotwane for his opinion? He is a corrupt loser and moron. Whatever happened to the 1230 bicycles that were found at his residence? This is the same idiot who got rid of the windfall tax, losing Zambia hundreds of millions of dollars in revenue. Who never demanded that ZCCM-IH actually received dividends on the shares they hold. And they're going back to him for advice? He should be in prison. He is a criminal.
Withdraw minimum wage SI – Musokotwane
TIME PUBLISHED - Friday, August 10, 2012, 12:37 pm
Former Finance Minister Situmbeko Musokotwane has asked government to withdraw the Statutory Instrument on the revised minimum wage and engage in negotiations. Mr. Musokotwane said the revised minimum wage has the potential to negatively affect foreign investment in the country.
He said one of the factors for foreign investors is a low cost of labour adding that with the imposition of the high wages on employers, potential investors will hold their investment in Zambia on account of an expensive labour market.
The former cabinet minister said if the status quo continues, Zambia’s economic growth will stall as investors will shun the country.
Mr.Musokotwane said the Patriotic Front government has failed to put money in people’s pockets but that they have resorted to imposing wages on employers as a way of empowering people.
Mr. Musokotwane pointed out that the ongoing anger in the labour market which has resulted in protests by employers has been created by the PF government and needs an urgent solution.
[QFM]
Labels: MINIMUM WAGE, SITUMBEKO MUSOKOTWANE
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COMMENT - When he was Finance Minister and was in a position to do something about it, Situmbeko Musokotwane couldn't care one bit about unemployed youth. This is as problem the MMD let fester, because they prioritised foreign investers and mining houses above everything and everyone. Situmbeko Musokotwane himself got rid of the Windfall Tax, which would have generated hundreds of millions of dollars which could have been put into infrastructure projects for job creation - but of course they didn't believe in government intervention, they wanted to 'see what the markets can do'. They neglected job creation for 20 years. They lost any right to criticize or comment on their own mess.
Unemployment will make PF unpopular - Musokotwane
By Allan Mulenga and Bright Mukwasa
Tue 03 July 2012, 13:25 CAT
SITUMBEKO Musokotwane says unemployment levels will make the PF government unpopular. And Zambians for Empowerment and Development (ZED) president Dr Fred Mutesa says the government must implement measures that will boost existing entrepreneurial businesses as a way of tackling the current unemployment.
Meanwhile, Dr Mutesa says President Michael Sata's comment regarding George Kunda's widow, Ireen that she should stop politicking before "traditional rituals" were performed on her, was a move to subjugate women in politics.
In an interview, Dr Musokotwane, who is former finance minister, warned that unemployment levels would get worse if good economic policies were not put in place.
"Youth unemployment will only get worse and worse because every year there is a lot of young people coming on the job market. Every year 400,000 young people get on the job market. So, the situations can only get worse. It requires very serious economic policies to get controlled. The cumulative of people who are not being employed for a year added to the new ones… that will even make it difficult to solve," he said.
Dr Musokotwane observed that many countries experiencing uprisings and
turmoil had failed to solve the unemployment problem.
"It unemployment is a very serious problem in all these countries where you have heard a lot of uprisings and there is a lot of turmoil is because of problems related to unemployment. In short, what I am saying is that if this is not solved it will make the government unpopular," said Dr Musokotwane.
And Dr Mutesa said the youth policy must be revised.
"The first thing that the government must do is revise a number of policies. For instance, the youth policy itself must be revised with the participation of the young people. Already the young people are involved in many activities where they have already identified the constraints," Dr Mutesa said.
"If you take entrepreneurship, a lot of young people are involved in self employment and they will tell you that the challenge they are faced with is capital. How do we make credit affordable and easily available to these young people?"
He said the government must find means of assisting with skills training to the
horde of youths that prematurely got out of school.
Dr Mutesa said the government should critically look at how it could grow the micro, small and medium scale enterprises.
"Critically look at how we can provide skills to those that are already involved in a number of these activities so that they can increase their productivity and improve the quality of their product."
And Mutesa said women's movements should challenge President Sata on his comment regarding Ireen as that would encourage the men domination in politics.
"It may have been in the context of a campaign, but for him to say that this woman must not be campaigning before even traditional rituals are performed is one way of subjugating women, make them second class citizens in society," said Dr Mutesa.
He said there was no greater honour a widow and her children could
to their departed one than to take up his legacy.
Dr Mutesa urged women to challenge President Sata on his remarks.
"If we talk like that, we will perpetuate this patriarchal domination of women in society where they would always be scared to come out for fear of what people are going to say. That's an outdated way of looking at issues and one that's sure to stifle the potential for development of this country."
President Sata, in reaction to Ireen's accusation that the PF prayed for the death of her husband so their candidate could take over the seat, said it was unfortunate that Kunda's widow and her son Howard could have taken to politics even before mourning period was over.
Labels: FRED MUTESA, MICHAEL SATA, PF, SITUMBEKO MUSOKOTWANE
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Nevers vows to fight corruption in MMD
By Roy Habaalu and Kombe Chimpinde
Wed 30 May 2012, 13:30 CAT
NEVERS Mumba has declared that fighting corruption within MMD will be his first call of duty. But MMD founding member Alfred Lienda says fighting corruption in the former ruling party wouldn't be easy as some national executive committee (NEC) members were used to corruption and handouts
which came to nestle during Rupiah Banda's reign.
Meanwhile, Situmbeko Musokotwane says Pastor Mumba must work on getting MMD into a position where it will be
electable. In an interview yesterday, Pastor Mumba assured that he would use the mandate given to him to remove the tag of corruption on the party.
He said he would work closely with the NEC to remove any traces of corruption in the MMD.
"I am determined to make that fight against corruption as my first call of duty. I am addressing our general membership on Friday…That corruption you are talking about was when President Michael Sata was national secretary of the MMD.
Now that he's not in the party, we have a very small job. The main person who left that image is no longer in the party; he's the President of the country so it will be very easy to clean up," said Pastor Mumba when asked if he would drop NEC members facing corruption charges in the courts of law.
Pastor Mumba was elected fourth president for the MMD last week through provincial conventions, beating six other contestants.
But, Lienda, a former commerce deputy minister, said it would be difficult to reorganise the MMD with the corruption that was prevalent in the party.
He further said genuine members of the MMD would have difficulties dealing with Pastor Mumba because he had embraced people facing corruption charges who had allegedly bankrolled his campaigns for the party presidency.
Lienda said it would be difficult to reorganise the MMD under Pastor Mumba because of corruption since people were used to handouts and free money.
"So I don't know where Mr Mumba will find that money. There is no more reasoning in the MMD, the corruption was so much in Frederick Chiluba's second term and came to nestle under Rupiah Banda where everything was about money, whatever you do is money. It will become difficult to organise MMD without money because it lacks ideologies now," he said.
Lienda said the survival of the MMD would depend on the performance of the Patriotic Front government.
And Dr Musokotwane, a losing candidate for the MMD presidency, said what happened in the elections must now be "water under the bridge".
"The most important thing for him Pastor Mumba right now is to get MMD into a position where it can win an election. If you can't win an election, then of course it becomes hard, so that is the first priority," he said.
"The next one, which is critical, is it is one thing to make promises and it is another thing to deliver. This is what is getting the PF into trouble today. They made so many promises but they do not know how to deliver. We shouldn't fall into that trap."
Dr Musokotwane said if the MMD got elected again, people would expect it to deliver.
"…Failure to which, this will spell total doom for the party. The elections are over and we have to move forward, meaning, those who won and the rest of the members should now do what we said we were going to do, that is reorganise the party, hopefully get it into a better shape than it is in right now," said Dr Musokotwane.
And Pastor Mumba is today expected to convene the first NEC meeting under his leadership.
He also said a report on the just-held elections would be tabled by the convention development committee.
"I will receive reports of what happened in all the provinces if they are saying there was any vote buying. We will be able to look at the report and we will ensure that we audit every development that took place and if there was anything that was below the arrangement we made, then we are going to deal with it. But I do not agree that any of my members were involved in that vote buying," said Pastor Mumba.
Labels: MMD, NEC, NEVERS MUMBA, SITUMBEKO MUSOKOTWANE
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We'll bounce back - Musokotwane
By David Chongo in Solwezi
Wed 02 May 2012, 09:10 CAT
MMD presidential aspirant Situmbeko Musokotwane (right) says
party members should brace themselves for intimidation and arrests under the PF government. Speaking during the card renewal exercise for North Western Province in Solwezi on Saturday, Dr Musokotwane, however, advised the party to remain strong "to bounce back to power in 2016 because the nation knows its work".
He said the MMD was still strong on the ground and preparations were underway to mount a serious comeback in 2016. Dr Musokotwane said the party would not perform like most former ruling parties in Africa that disappeared into oblivion when they lost power.
He said the MMD was encouraged by the return to power of Ghana's ruling National Democratic Congress led by John Atta Mills in 2008 when it lost power under Jerry Rawlings to John Kufuor's New Patriotic Party in 2000 after only two terms.
"So we are here and we are destined to make history like in Ghana, we will make history in 2016. So let's prepare ourselves. We are going to make history by bouncing back," Dr Musokotwane said. "…Now, there will be a lot of intimidations, people will be arrested, people will be accused, we have to remain strong. Are you following? We have to remain strong. Some of the things that are done that we don't accept we must refuse. The issue of Zambia being divided across tribes we must refuse. The issue of people saying this district, whether it's Chirundu, whether it's Kaoma, whether its Solwezi taking them to other provinces without consulting us, we say what? No!"
He also accused President Michael Sata of appointing half of his Cabinet from one province and lying about following the biblical Ten Commandments by not fulfilling PF's campaign promises.
Dr Musokotwane charged that the PF's ‘boat' was at crossroads because President Sata and his ministers were pulling it in different directions by their pronouncements which had stalled development in the country.
Meanwhile, the event which raised about K43 million in pledges, was snubbed by many MMD councillors in Solwezi where only three were present out of 18.
Solwezi East member of parliament Richard Taima was also not present during the card renewal exercise.
Labels: MMD, SITUMBEKO MUSOKOTWANE
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COMMENT - The Bicycle Man is telling people to 'calm down' again.
Fulfil your promises, Musokotwane tells PF
By Allan Mulenga and Abigail Sitenge
Mon 23 Apr. 2012, 13:29 CAT
THE government must calm down and focus on the issues that Zambians voted them for, says Dr Situmbeko Musokotwane. In an interview, Dr Musokotwane, a former finance minister, said the Patriotic Front should stop being excited by the fact that they are now in government.
"Calm down and focus on the issue that you promised Zambians. You said you were going to create employment, where are the jobs? You said you are going to create more money in our pockets, where is the money? You promised universities all over the place, where are the universities? This is what the people are looking for, not just the heap of confusion; today it is this; tomorrow it is that. That is not what we are looking for," he said.
Dr Musokotwane said the government should explain its economic policies to Zambians.
"Stop being excited by the fact you are in the office, stop being excited by the fact that you are now a minister or deputy minister or a member of parliament; that is now history. What the people are looking for is how you are going to improve their lives, that is what people are looking for," he said.
And Musokotwane expressed concern over the decline in the country's foreign reserves ratio.
Zambia's gross international reserves has dropped from US$2.371.4 billion in February to US$2.317.7 billion in March.
"We are unhappy that the levels of the reserves have gone down. The time we left office, we left this country with US$2.6 billion which was the highest amount in recent history that the country has ever had and within a short period of time this has come down to US$2.3 billion, meaning that the level of reserves has gone down by more than US$300 million from when we left office," he said.
Dr Musokotwane attributed the decline of reserves ratio to mismanagement of national economy.
"The reserves have gone down because it is all about confidence. You cannot bring money to a country unless you are absolutely sure that the government where you are taking the money to is a competent government; it is a government that adheres to agreements; and it's a government that respects private property. There is nothing happening that is why people rather than bringing money in the country, they are taking money out of the country leading to the depreciation of our currency from K4,748 to K5,300. In fact, the exchange rate would have been worse if the central bank had not been taking money from the reserves to defend the currency. So we are not happy with that," said Dr Musokotwane.
Labels: SITUMBEKO MUSOKOTWANE
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Musokotwane urges government to harmonise statements
By Ernest Chanda
Sun 08 Apr. 2012, 13:29 CAT
SITUMBEKO Musokotwane says the government should harmonise their statements to avoid confusing the people. And Dr Musokotwane has urged commerce minister Bob Sichinga to stop confusing the public with unrealistic statements about the status of the kwacha after rebasing.
Dr Musokotwane, the immediate past finance minister in the Rupiah Banda regime, said there was also need for the government to give a clear policy and economic direction of the country.
He said if leaders did not harmonise their statements before issuing them to the public, they risked confusing the whole nation.
"Of course it's important that leaders every often can communicate to the public so that the public have a clear perspective of where the leaders are taking the country in terms of economic direction; that is the minimum. And of course as they discuss they must harmonise because without harmony there's a danger that the President will say this on one topic, the minister of finance on the same topic will say something different as we saw on the issue of fake money," Dr Musokotwane said in an interview on Thursday.
"And then the minister of commerce also and indeed any other minister on the same topic will say something different; so, the public gets confused. Yes, we look forward to getting briefs from them, but we also look forward to getting briefs that are well coordinated so that they don't confuse us and the public, more especially the minister of commerce and the minister of finance."
And reacting to Sichinga's statement recently that once rebased, the kwacha's strength would be equal to the dollar like it was just after independence, Dr Musokotwane said that was not true.
And early this year, Sichinga told the nation at a public forum in Kitwe that the MMD administration printed about K3 trillion fake money in China, which was still in circulation.
However, his statement was refuted by the Bank of Zambia and Finance minister Alexander Chikwanda.
Dr Musokotwane said unrealistic statements from the commerce minister could confuse the entire nation.
"Mr Sichinga should not confuse people by saying that when the kwacha is rebased then it will be equal to one US dollar like it was just after independence. This is not true because even as the pound which was the major currency was one kwacha to one pound, it was not because of rebasing. But even then if we look at today's situation where the pound is costing the Kwacha about K8, 400, the kwacha will not be equal to the pound after rebasing," he said.
"So it means that when you rebase or chop off three zeros, the pound will cost you eight kwacha forty Ngwee. Now the exchange rate Bob was talking about in the 60s, it was one pound equals one kwacha. So, in rebasing the kwacha, how then can he expect that the kwacha will be equal to one pound? After simply chopping three zeros, the pound will still demand that you pay K8.40, not the one kwacha that he's talking about."
Dr Musokotwane said just as money was a measure of value, there would be confusion in its absence.
"If one pound is going to be equal to one kwacha as claimed by Mr Sichinga while the pound is going to be equal to eight kwacha forty ngwee as logically explained by the Bank of Zambia people, then clearly Mr Sichinga is now confusing people; because there will be people after rebasing who will say, ‘okay, now that you have rebased for every new kwacha that I have I want to go to the commercial banks and buy pounds because there will only be one kwacha per pound. When they reach the bank, the bank will tell them, ‘sorry, if you want the pound you produce K8.40. So, now there will be confusion in society and this is undesirable," said Dr Musokotwane.
Labels: ROBERT SICHINGA, SITUMBEKO MUSOKOTWANE
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Kachingwe annoys Dora
By Roy Habaalu
Fri 06 Apr. 2012, 13:55 CAT
RICHARD Kachingwe is more likely to steal than me, says Dora Siliya. Major Kachingwe on Wednesday said the party was considering tabling the issue of whether or not Siliya must remain as party spokesperson in view of her court case in which she has been accused of abusing public office.
But Siliya, who has since been granted a K50 million bail by the courts, said Maj Kachingwe should be the last person to talk about morals. She said Kachingwe must learn to consult the National Executive Committee (NEC) members before issuing statements that would embarrass the party.
"Those who live in glass houses must not talk about morality. Between Kachingwe and I, who is more likely to steal? Ask the MMD cadres. My advice to him is that he should stop issuing unwarranted statements that will embarrass the party," Siliya said.
"In Zambia and in MMD, people are innocent until proven guilty. Kachingwe must consult his superiors, the NEC to avoid embarrassing the party further such as unilateral suspension of…Austin Liato," she said.
Siliya said Maj Kachingwe must stop misapplying himself and concentrate on having a crack-free MMD.
"…Now it's our own party members that should find us guilty. Is Mr Kachingwe saying that Felix Mutati should be suspended because he appeared before the Task Force on corruption for allegedly influencing Dr Situmbeko Musokotwane over Pepsi tax rebate? Should he stay away from NEC? Should George Kunda, Austin Liato, Maxwell Mwale, Kenneth Konga, Kenneth Chipungu, Gabriel Namulambe be suspended because they are being investigated? If Mr Kachingwe doesn't know what he's doing, he must consult his superiors in NEC," she said.
Maj Kachingwe, in an interview, had said Siliya's matter was a moral issue that was of interest to the party and that her fate would be tabled before NEC and acted upon until her case was cleared.
Meanwhile, the MMD has lifted the suspension slapped on its national youth chairman and Chisamba member of parliament Moses Muteteka.
And Muteteka yesterday said the lifting of his suspension had given him impetus to go flat-out to campaign for the party presidency.
In a letter dated April 5, 2012 and signed by Maj Kachingwe, the MMD decided to dispose of Muteteka's case to avail him an opportunity to realise his ambition of vying for the party presidency.
The MMD had suspended Muteteka for alleged insubordination, misconduct and contravening party regulations, among other offences.
"I make reference to my letter of instant to you and the charges contained therein which also carried suspension from the party pending the disposal of the case by the disciplinary ad-hoc committee. I wish to again to invoke the powers vested in me by article 50 (3) of the MMD constitution in line with the general amnesty which had been effected due to ongoing convention to lift your suspension and that you are free to participate in any party activities," read the letter in part.
But Muteteka said he was aware that some MMD youths celebrated upon hearing his suspension.
"This is the spirit which must be encouraged in the party or in any other club where people must be allowed to exercise their freedom of expression and also corrected where they go wrong. I want to appeal to all MMD members and supporters to appreciate the step taken by the MMD to lift my suspension. This has given impetus to me to go out in the country to campaign for the position of president for the party. Therefore, all members of MMD should unite and work together to recruit the membership," he said.
Muteteka promised to continue pointing out the wrongs in the party.
"I am going to continue pointing out the wrongs but there are issues now which I have also learned. There are things we can do administratively and there are things we can do publicly. As a citizen of this country, I am protected by the Constitution to speak but as a member of the club, MMD, we have administrative channels on how to deal with international matters," he said.
Asked on the interest shown by former Republican vice-president Enoch Kavindele to contest the MMD's top position, Muteteka appealed to Kavindele to "back-off from the race".
"…I would appeal to him to be my campaign manager because we are looking at tomorrow. We are looking at 2016 elections, how old is Kavindele? How old I am going to be, 46. If you want the party and the leader who can inspire the party longer, look at the youths…Those youths who have been cooked; who have gone through the systems and I am the one, it is me available in the MMD now," said Muteteka.
Labels: DORA SILIYA, FELIX MUTATI, MMD, MOSES MUTETEKA, SITUMBEKO MUSOKOTWANE
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Rupiah refuses to fund MMD convention
By Roy Habaalu
Thu 15 Mar. 2012, 13:00 CAT
RUPIAH Banda has refused to fund the MMD's extra-ordinary convention, saying he has retired from politics. And Dora Siliya, who is the party spokesperson, yesterday announced that former Republican president Banda had stepped down as party president. Banda has handed over the party presidency to Michael Mabenga who will act until a new president was elected.
Well-placed sources disclosed that during a closed-door-meeting held on Tuesday evening, former president Banda complained that the only money he had was that held in the family account.
Sources said Banda said he had decided to lead a quiet and respectful life.
"So the provincial elections in Muchinga, Eastern, Central, Western provinces to elect new leaders have been postponed. We gave him the bill of K221 million to hold the extra-ordinary convention but he told us ‘I don't have money to give you. The only money I have is that in the family account'," the source said.
"He complained that ‘even people and friends that I know, those I used to talk to anytime have stopped funding us, they don't pick up their phones. I know why they are not picking up. I am not blaming them and they don't hate our party. No, they are scared of being victimised by the PF government because they are looking around who is financing MMD. We can't go ahead with provincial elections unless someone gives us money,'" sources quoted Banda as having told them.
The source said after reaching a deadlock on the source of funding for the convention, they learned that one presidential aspirant had volunteered to bankroll the event but was scared of being investigated.
"People like (former finance minister Situmbeko) Musokotwane are ready to put in close to K2 billion but he's scared that the government will follow him. He's ready to sponsor the convention but he doesn't know how to do it. So it was resolved that tomorrow (Wednesday) during the National Executive Committee (NEC) meeting they would know how much had been fundraised," said another source.
Sources said talking points for the former president's farewell speech had been prepared to NEC members.
Sources said Banda had been invited in America to give lectures on African democracy and politics for two months.
"When he comes back he will find the convention is over and will just hand over the instruments of power to the elected president," sources said.
On his retirement, sources said Banda wondered why the party failed to defend him whenever the government accused him of active involvement in politics when he retired after losing.
"He's saying that he wrote a letter to resign from MMD and active politics long time ago when he lost the elections. He says letters are there at the secretariat. So he's no longer in active politics. He said this is nonsense. He can't continue. He needs the money he worked for. Rupiah said he didn't want to be seen frustrating President Sata's programmes and that he should work freely. He said ‘we want to show him that we are more civilised than he was because he was always insulting us'," sources said.
Siliya also announced that Banda had stepped down as party president.
"I will to report that as you recall on the 23rd September, our president Rupiah Banda addressed the nation saying that after the loss of MMD in the last election, he was retiring from politics. I wish to announce that today, he actually also stepped down as the president of the party of the MMD. For more details on this matter president Banda will be holding a press conference tomorrow at his residence at 08:30 hours and you are all invited to attend this press conference so that you can hear his words and also have an opportunity to be able to ask him questions," she said.
Siliya said according to the party constitution, the chairperson of the Party, Michael Mabenga would act as president.
Labels: DORA SILIYA, MICHAEL MABENGA, MMD, RUPIAH BANDA, SITUMBEKO MUSOKOTWANE
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COMMENTS - Musokotwane is a former politician, who is stuck in a failed ideology.
Musokotwane advises PF to address dwindling investor confidence, as Kabimba trashes Fitch Ratings
TIME PUBLISHED - Tuesday, March 13, 2012, 6:11 am
Former Finance Minister, Situmbeko Musokotwane has advised the PF government to quickly address the country’s dwindling investor confidence. Dr. Musokotwane has told MUVI TV News that the recent downgrading of the country’s economic outlook from stable to negative is due to the misguided economic policies of the PF government.
He said that the downgrading by FITCH is worrying because investors tend to make their decisions based on such ratings. Dr. Musokotwane, who is aspiring to lead the MMD as its President, said some investors have expressed concern with the PF’s uncertain economic direction.
The Former Finance Minister was commenting on the recent downgrading of Zambia’s economic outlook from stable to negative by FITCH international rating Agency.
However, the PF’s Party Secretary General Wynter Kabimba has said that Zambia’s latest economy rating from stable to negative by Fitch Ratings is meaningless and aimed at misleading Zambians.
PF’s Party Secretary General Wynter Kabimba has said that Zambia’s latest economy rating from stable to negative by Fitch Ratings is meaningless and aimed at misleading Zambians.
Speaking on last night’s edition of the assignment programme dubbed” THE PF IN GOVERNMENT”,Mr Kabimba said that the rating is meant to work at the psychology of Zambians. He added that the PF government has done nothing so far as to erode investor confidence in the country.
Mr. Kabimba said that the current economic policies of the party are investor friendly but that the emphasis has been that of ploughing back into communities where they operate. He has further stressed the need for investors not to externalize profits.
MUVI TV
Labels: DEBT, NEOLIBERALISM, SITUMBEKO MUSOKOTWANE, WYNTER KABIMBA
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Varun tax holiday was illegal, says Yamba?
SECRETARY to the Treasury Fredson Yamba has submitted to the Lusaka High Court?that the five-year tax holiday given to Varun Beverages Limited by former Finance minister Situmbeko Musokotwane was illegal.?
This is in a matter in which Varun Beverages has contested the cancellation of a tax deferment. The company has argued that Section 56 of the ZDA Act empowered a company with an investment of more than US$500 000 to enjoy tax exemption.?
In his affidavit in opposing, the application for leave for judicial review filed on March 6, 2012, Mr Yamba stated that the tax deferment was not based on any provision of the law.
The submission was made before High Court Judge Anesi Bobo- Banda.?Mr Yamba, of House Number Nine Njoka, Road in Olympia Park in Lusaka?said he had read the affidavit by Varun in which the company was seeking judicial review.
“On 7 May 2010, then minister of Finance and National Planning Dr Musokotwane did approve the deferment of value added tax and excise duty on the products of the applicant company and I am advised by the attorney general and verily believe the same was not based on any provisions of the present law,” Mr Yamba.?
When the matter came up for inter-parte hearing in chambers yesterday, one of the lawyers representing Varun, Mr Mulenga Mundashi sought an adjournment.
He said his team could not respond to the State’s opposition because they had just been saved with the response and that they needed time to consult their client before responding.
Varun Beverage is seeking a court order to quash the Government’s decision to revoke its five-year tax deferment.
The beverage company has contended that the revocation was in defiance of the rule of natural justice as the firm was not accorded an opportunity to be heard before the action was taken.
Varun Beverages, the maker of Pepsi, has also stated that the verdict was tainted with procedural impropriety as it was not given a chance to make submissions before the Zambia Revenue Authority (ZRA) Commission of Inquiry which recommended the revocation of the tax deferment.
Varun Beverages had argued that it had legitimate expectation to continue to enjoy the tax relief following its investment of US$44, 197, 000.
Varun beverage was given a five-year tax deferment by the previous regime in 2010 which has now been revoked by the Patriotic Front Government.
Labels: SITUMBEKO MUSOKOTWANE
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MMD's crisis of leadership
By The Post
Thu 08 Mar. 2012, 12:00 CAT
"THERE is a vacuum in the MMD and there is no proper control in terms of getting the party organised. Everything is left to chance and we do not know who is supposed to do what," observes Alfred Lienda, a long-standing member of the MMD and a former Deputy Minister of Commerce, Trade and Industry. Truly, it cannot be denied that the MMD is suffering from a leadership crisis. The MMD is today paying for the mistakes of its past leaders.
All the key political leaders of the MMD were eliminated by Frederick Chiluba and a few that remained, Rupiah Banda got rid of them. It is very difficult today to find anyone who was a member of the party in 1990-1991 still playing an active role in the leadership of the MMD.
The party was taken over by opportunists, by elements without any serious political commitment who were just interested in self-aggrandizement. The new leadership of the MMD was constructed from careerism, patronage and business ambitions, from people who wanted to get into the ruling party because it was beneficial to do so. These were not political leaders but something else.
It is interesting to look at the list of those who are aspiring to lead the MMD today and their political backgrounds and record of political service to the MMD or any other political party for that matter. Where did Situmbeko Musokotwane come from? What is his record of political service? When did he join the MMD? Situmbeko has no record of political service.
What he has a record of is probably civil service and working for quasi-governmental organisations like the Bank of Zambia. He only joined politics three years ago when Rupiah Banda made him his finance minister. When did Kabinga Pande join politics? Kabinga was drafted into politics not very long ago by Levy Mwanawasa when he made him minister.
Kabinga was a public relations officer at the Bank of Zambia before that and was not a member of the MMD. Felix Mutati got into politics in 2001 when Chiluba made him a candidate for Lunte. Felix had no political history or record of public service as a politician or social activist before that. Nevers Mumba was drafted into the MMD by Levy when he made him vice-president in May 2003. Nevers had no roots in the MMD.
Nevers participated in the presidential elections of 2001 on the ticket of the National Christian Coalition, a party he had just formed, to enable him contest that year's presidential elections. Before that, Nevers had never been MMD and was known for preaching the word of God and not politics. These are the men who want to lead the MMD today.
And before them, there was Rupiah himself who, until he was recruited into Levy's 2006 election campaign, was UNIP. After the 2006 elections, Levy made him vice-president to reward the people of Eastern Province for their support. This is how Levy himself explained his appointment of Rupiah as Vice-President.
And two years later, the UNIP man became the MMD leader and president of the Republic following Levy's death. And Levy himself came to lead the MMD from nowhere. Levy had left politics to go back to his law practice after resigning as Chiluba's vice-president in 1995.
He was invited back by Chiluba to take over from him, without any strong organisational roots in the party. In short, all the key politicians of the MMD were marginalised, roughly handled or demoted at the hands of Chiluba's desire to maintain supreme and unchallenged hegemony over the party. And those who followed Chiluba did the same; they also tried to tailor the party leadership to suit their own political designs.
Those who tried to oppose this tendency in the party were excluded or marginalised further. There were early warning signs of the dangers of disciplinary measures being used to cripple political competition within the party and sometimes also to settle political differences.
Clearly, for a long time the MMD had no real political leaders. All sorts of mercenaries, vultures and opportunists of all hues joined the party by patronising the president.
And they accordingly weaved themselves into key positions of the party and the government. These were elements who had never struggled for anything politically but were simply given power on a silver platter; they were given political power they had never worked for or fought for.
As such, they did not know how to continue building the party, how to defend its principles and strengthen its appeal.
They were actually not so much interested in the party per se, but more in the government positions. The MMD simply offered them the opportunity to get government positions - it was simply the door and the key to government positions. For years, these leaders of the MMD did very little to organise and strengthen the party outside government.
Since coming into power, the MMD has increasingly been dependent on government resources to survive. It was not surprising that even civil servants, permanent secretaries were offering themselves to stand on the MMD ticket in by-elections.
The question is: when did they become members of the MMD for them to qualify for adoption as parliamentary candidates of the party? It would seem the MMD had blended itself with the civil service and probably the entire public sector. And because of this, it looked big, strong and better organised.
But now that the public sector is no longer at the service of the MMD, the vacuum of leadership, and even of general membership, is becoming so easy to see.
Now the MMD has to face the real test of political competition. Greatness comes not when things are good for you but when you are really tested, when you have taken some knocks, some disappointments, when you have been visited by the sadness of losing an election and been driven out of power, because only if you have been in the deepest valley can you ever know how magnificent it is to be on the highest mountain.
The MMD certainly needs to do a lot of work about itself. The MMD leaders certainly need to do a lot about themselves. They need better and different organisation. They need better and more committed leaders than the political vultures they are calling leaders who joined the party simply because it was in government and had more to offer and not because they subscribed to any of its values, principles, standards or goals.
After all, the MMD had lost all these things long before these characters joined the party and it has become an omnibus, a gravy train, a party of the corrupt. With government resources out of their way, they will need to learn how to win public support and build a cadre of supporters without money but with principles and standards and common aims and values.
They need to spread their appeal and attract different sorts of people. They need to redefine themselves and get straight what their core beliefs are. They will need to sort out the confusions and false signals that arose while they were in government.
They need to take a fresh look at themselves in the new circumstances. In a word, the MMD needs to renew itself. But with who - Nevers, Felix, Kabinga, Situmbeko? They need time to reflect and listen and come to understand the nation better than they have of late.
Labels: MMD, SITUMBEKO MUSOKOTWANE
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COMMENT - Gee, I guess this means we can't
'borrow more'. Why is anyone asking this corrupt loser for his opinion anyway? Bicycle Man is just a mouthpiece for the World Bank.
Downgrading of economic outlook saddens Musokotwane
By Kombe Chimpinde
Mon 05 Mar. 2012, 11:59 CAT
DR Situmbeko Musokotwane says he is very saddened with the downgrading of Zambia's economic outlook from stable to negative by global rating agency, Fitch.
Commenting on Fitch's downgrading of Zambia's economic outlook from stable to negative, a few months before the country's maiden US $700 million Eurobond is issued, Dr Musokotwane said as immediate past minister of finance, he was saddened by the outcome as it had a considerable amount of repercussions on the country's economy and urged the current government to examine their attitudes and change the course of the economy.
"By the outlook being considered to be negative from being stable, what investors are saying is they are not sure about the safety of investments in Zambia and to reverse this, it takes a long time because people are always nervous about the safety of their money," he said in an interview.
Dr Situmbeko said the lack of predictability in the economic environment necessitated by policy shifts would continue to erode investor confidence if not dealt with.
"There is no rocket science about it. Investments for us are very critical because it is through them that we get jobs to be created, industries to be thriving, agriculture to be going, so it is investment that is very critical.
[Neoliberal idiocy. - MrK]
But the most important thing is that this investment is secure. No one wants to take investment to a country where you commit millions of dollars or thousands of kwacha, then you are told the following day, ‘sorry, we have taken away your investment'," he said.
"Government, however, has a chance to re-examine the attitudes and change the course. They must be a government that is responsible and avoid making careless mistakes. No one stops them from investigating corruption and fraud; that is the responsibility of every government."
Dr Situmbeko said any elements that threatened investor confidence must be taken seriously.
"If that (investment) is missing, you may have your minerals in the ground but there will be no finance to dig the minerals out. You may have your wildlife but there will be no finance to build hospitals and other infrastructure required by tourists. The end result is poverty," said Dr Situmbeko.
[And when 'financing' comes from abroad, who then OWNS those minerals, wildlife, hospitals and other infrastricture? Oh I remember, in neoliberal world, it doesn't matter who owns them. How could I forget? - MrK]
And briefing journalists in Lusaka on Friday, former commerce minister Felix Mutati said Fitch negative rating of Zambia's economic outlook should be seen by all Zambians as a point of great concern.
Mutati, who is also head of the opposition in Parliament, said the economic fundamentals that have propelled the country for some time had began to erode.
"This means the economic and investment environment which in part is based on how a country is rated will be negatively impacted," said Mutati.
"Some of the reasons that the ratings will be negative is from a policy perception in the implementation of policies…"
Fitch rating which provides issuer and bond ratings last year assigned Zambia long-term foreign and local currency Issuer Default Ratings (IDR) of B+.
In its latest outlook released last Thursday, Fitch downgraded Zambia's ratings from stable, citing concerns about the direction of economic policy in the southern African state.
"The revision of Zambia's rating reflects the agency's concerns about some of the government's recent actions and announcements, which bring into question the direction of economic policy," Fitch stated.
The agency affirmed Zambia's short-term issuer default ratings at ‘B' and the country ceiling at ‘BB-‘.
Fitch stated that Zambia's recent decision to reverse a privatisation deal could undermine property rights, while planned reforms of the mining and banking sectors could negatively impact investment and consequently macro-economic stability.
It stated that the government's decisions to reverse the privatisation of Zamtel and investigate the privatisation of Zanaco represent "perhaps the most worrying recent development".
Labels: DEBT, FELIX MUTATI, NEOLIBERALISM, SITUMBEKO MUSOKOTWANE, STUPIDITY
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Kunda wrote letter over Varun tax
TIME PUBLISHED - Thursday, February 9, 2012, 11:00 am
FORMER Republican vice-president George Kunda allegedly wrote a letter to former Finance minister Situmbeko Musokotwane objecting to the decision to award a tax deferment facility to Varun beverages, it has emerged.
Mr Kunda, in his letter a few days before former president Rupiah Banda summoned a meeting at State House on March 15, advised that companies that wanted a tax holiday should arrange with the Zambia Revenue Authority (ZRA).
He had contended in the letter that a “face-less” tax deferment was illegal. Mr Kunda was also Justice minister at the time.
Sources said when he appeared before a team of law enforcement officers, Mr Kunda was asked to read the letter and confirmed that he authored it because it was his duty.
A letter from Mr Banda to Dr Musokotwane in April 2010 directing the ministry to facilitate the awarding of tax holiday was written after Mr Kunda’s advice against the deferment facility.
The former president’s letter has, however, allegedly disappeared from the Ministry of Finance in unexplained circumstances.
The special combined team of security personnel investigating allegations of corruption has attempted in vain to trace the letter dated April 24, 2010.
The letter was a follow up to a meeting that allegedly took place at State House on March 15, 2010 called by Mr Banda in which he allegedly asked Dr Musokotwane to ensure that the tax holiday was granted.
Those who attended the State House meeting included Dr Musokotwane, former Commerce minister Felix Mutati, and Mr Kunda.
Others were Zambia Development Agency (ZDA) Director-General Andrew Chipwende and former chief budget analyst in charge of tax revenue who is now director of economic management, Felix Nkulukusa.
In an interview in Lusaka on Tuesday, Mr Chipwende said he was just called to attend the State House meeting and could not discuss the matter in detail.
“We do not operate like that. I was called to that meeting and what is said is for the Government and not for the public,” Mr Chipwende said.
Mr Kunda declined to comment on the matter saying it would be hard for him because a warn and caution statement had been recorded from Dr Musokotwane.
Value Added Tax (VAT) is not on the list of taxes available for deferment to companies according to the Zambia Development Agency Act (ZDA), but was offered to Varun.
[Times of Zambia]
Labels: ANDREW CHIPWENDE, CORRUPTION, FELIX MUTATI, GEORGE KUNDA, MMD, SITUMBEKO MUSOKOTWANE, VAT
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COMMENT - Heavens forbid, not wage inflation. Top bonuses, graft up the yingyang, that's ok. But woe to all if workers would benefit from the economy. The guy is a mental slave. He simply regurgitates whatever dogma comes from the IMF/World Bank. Remember that Alan Greenspan (former FED chief) used to warn against the perils of 'wage inflation'. He was forced to admit that his entire ideology was wrong. Now if only the former finance minister would follow in his footsteps.
Musokotwane warns of ripple effects of 100% salary hike,as Union urge government to spread increase to all public service workers
TIME PUBLISHED - Sunday, January 29, 2012, 6:56 am
Former Finance Minister, Situmbeko Musokotwane has warned of ripple effects of the announced 100 percent salary hike for health workers. Dr. Musokotwane says the decision to effect the increment whilst being commendable
might result in hyper inflation in the country.He said that the move by government to give increment to one sector of workers is unsustainable questioning government’s source of funds for the increase.
And Dr. Musokotwane has asked government to rescind the prospective decision to reverse the sale of Zanaco to Rabo Bank of the Netherlands. He has maintained that most of the commissions of inquiry established by the PF government have pre-determined outcomes.
Dr. Musokotwane was speaking to MUVI TV News.
Meanwhile,the Agriculture Technical and Professional Staff Union of Zambia have joined calls for government to spread the recent 100 percent salary hike given to health workers to all public service workers.
Union General Secretary, Joe Kamutumwa notes that the 100 percent salary hike is a reflection of the desire by the state to improve the working conditions of the entire public service.
Government recently announced a 100 percent salary increment for all health workers.
Labels: HEALTHCARE, LABOUR, NEOLIBERALISM, NURSES, SALARIES, SITUMBEKO MUSOKOTWANE
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Prosecute Rupiah, urges ZRA inquiry
By Kabanda Chulu
Fri 27 Jan. 2012, 14:00 CAT
THE ZRA Comm-ission of Inquiry has recommended that appropriate action be taken against Rupiah Banda and 12 former government officials for the fraudulent procurements regarding border scanners and concession-related contracts.
But home affairs minister Kennedy Sakeni yesterday said the 12 of those referred to in the report would have to face the law but there was a predicament in terms of making Banda answerable because of issues of his immunity from prosecution.
And the government has with immediate effect terminated the contracts given to Bradwell International and Cargo Scan to manage border scanners. The government has also cancelled the concession given to one company to develop border infrastructure across the country.
Meanwhile finance minister Alexander Chikwanda has said the government has no scores to settle but will provide no sanctuary to people who have committed crimes against society.
According to the report of the findings of the Commission of Inquiry released yesterday, senior MMD government officials, among them former president Banda must be investigated regarding the role they played in the fraudulent manner in awarding Zambia Revenue Authority (ZRA) related contracts.
Banda, then vice-president, played a key role in the procurement of four extra scanners and the increase in the loan from US$ 100 million to US$ 125 million while former finance minister Situmbeko Musokotwane was involved in awarding contract to Bradwell International and giving an illegal tax deferment on consumption taxes to Varun Beverages (Pepsi).
Dr Musokotwane has since been questioned by security wings investigating various offence committed by the previous government.
It stated that former ministers Mike Mulongoti, Prof Geoffrey Lungwangwa and Dr Musokotwane must be investigated for irregularities surrounding the awarding of the Kasumbalesa border concession.
But Mulongoti responded that the council of ministers had authority to approve the border projects.
"It was a project initiated by the developers and they sponsored it because they had money and ideas so what is the loss to government? The questions to ask is, was it public money or private money and would it be normal that an investor comes to Zambia with an idea and money be subjected to public tender, for what?" asked Mulongoti.
"Ask yourself, if you were to build a hospital in Kalingalinga and you have money and it is your idea, would you accept that they do a public tender for your money an idea for the other people to come on board is that possible?"
The report also stated that appropriate action must be taken against former ministers Mulongoti, Eustackio Kazonga, Prof Lungwangwa and Chileshe Kapwepwe for awarding the five border post concessions to a single entity.
The report further recommended that former secretary to the treasury Likolo Ndalamei must be investigated for the role played in the cancellation of the Nakonde border construction project, while former finance permanent secretary Emmanuel Ngulube should also be investigated in the role played in awarding of the Bradwell contract.
When asked for a comment, Kapwepwe said she would only comment when the report is availed to her with Prof Lungwangwa saying: ‘I can't comment on something that I have not read."
Ndalamei said: ‘I don't think I did anything wrong but I need to read the context of the findings before I can comment.'
But Sakeni said all those mentioned would have to provide answers to investigators.
He said the only predicament was on Banda because of the immunity clause.
Sakeni said the immunity issue had been left to people to debate first.
He said security officials were on the ground and there would not be any sacred cows.
The report stated that appropriate action be taken against ZRA board secretary Nana Mudenda and director of administration Tenthani Banda for their involvement in payments to Cargo Scan with no regard to service delivery and contract terms.
The report also recommended that former ZRA commissioner generals Wisdom Nhekairo (who has since been warned and cautioned by police) and Chriticles Mwansa should be investigated for their involvement in the Bradwell contract, justification of direct bidding (single sourcing) based on flimsy grounds, payments to Cargo Scan with no regard to service delivery and contract terms and justifying the procurement of four additional scanners that were not needed and reduction of floatation period.
It further recommended that former ZPPA director general David Kapitolo and his predecessor Samuel Chibuye be investigated for failing to verify information availed to ZPPA by ZRA in relation to direct bidding.
And the government has further revoked the tax deferment for Varum Beverages and ordered that the company pays the tax arrears and people involved in the transaction face criminal prosecutions.
Chikwanda said Cabinet had deemed it desirable and expedient to reverse fraudulent procurements regarding Zambia Revenue Authority related contracts with Bradwell International and Cargo Scan as well as the concessions to operate border posts.
He said ZRA must assume ownership of the scanners and work out appropriate measures for loan repayment for the scanners.
"We have terminated with immediate effect, the Cargo Scan contract on the operations and maintenance of Smith Detection scanners and the Bradwell contract on the operation and maintenance of Nuchtech scanners, and Nuchtech be compelled to perform their contractual obligations of installation, operation and maintenance of eight scanners," Chikwanda said, during a media briefing.
"We have also taken over the Kasumbalesa border project and the concession has been reversed and also the five border concessions of Jimbe, Nakonde, Chanida, Kipushi and Mwami be cancelled because they were given to one company and government will take up the responsibility of development of infrastructure at those borders."
He said the government has immediately taken over the Nakonde border infrastructure project which was concessioned under a PPP arrangement when it has reached 75 per cent completion worth K23 billion of certified works using government money.
"We shall revise all policies and pieces of legislation that deal with awarding of public contracts in particular the PPP policy and its Act is defective and at variance with the public procurement Act," Chikwanda said.
"The role of ministers under the PPP Act should be reviewed and reduced to policy guidance while awarding of contracts should be retained by ZPPA in consultation with the Attorney General's office."
He said the tax deferment for Varun Beverages had been revoked and the company should pay outstanding arrears amounting to K13 billion per annum.
"Concessions or incentives must be given within the confines of the law and not exclusively to individuals or friends because there is procedure to follow when doing things and investors who acquired incentives or concessions should not worry so long the deals were done within the law. We are not prosecutors or judges but it is up to law enforcement agencies to take up these matters especially where there was unlawful," said Chikwanda.
"Government has no scores to settle but there will be no sanctuary given to those who have committed crimes against society through abuse of office and trust which the people of Zambia reposed in them."
And Secretary to the Treasury Fredson Yamba said the government will soon write the affected parties about the development.
"For tax deferment, I would have loved the money to be refunded immediately but we shall write to Varun so that they give us a position and when they can pay. But the incentive was illegal because it was exclusive but they will continue enjoying other incentives and for border concessions, it is something that needs negotiations so that there is proper transfer of operations," said Yamba.
Labels: CORRUPTION, EMMANUEL NGULUBE, KENNEDY SAKENI, LEGAL IMMUNITY, LIKOLO NDALAMEI, MIKE MULONGOTI, RUPIAH BANDA, SITUMBEKO MUSOKOTWANE, ZRA
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Police warn and caution Situmbeko Musokotwane
TIME PUBLISHED - Wednesday, January 25, 2012, 8:49 pm
The joint investigations team has today
recorded a warn and caution statement for former finance minister Situmbeko Musokotwane for the offence of
abuse of authority of office, contrary to
section 99(i) of the penal code cap 87 of the laws of Zambia.
This is in a case in which
Dr.Musokotwane granted the deferment of value added tax (VAT) and excise duty to Varun Beverages Zambia limited the producers of Pepsi on their product for a period of five years. Dr. Musokotwane was accompanied by his lawyer Milton Mubonda of D.H Kemp and company.
This is contained in a statement released to QFM by public relations officer of the joint government investigative wing, Charity Chanda.
Meanwhile Police have arrested and charged four people of Lusaka with forgery.
The police have also confiscated a computer, a scanner with a printer and a type writer.
Also confiscated are forged copies of school certificates, college diplomas and degrees of the University of Zambia, the Copperbelt University, the National Institute of Public Administration (NIPA) and theUniversity of Namibia,
Police spokesperson Elizabeth Kanjela named those arrested as Samuel Muyunda aged 38 of Kuomboka Chawama, Visto Chinyimba aged 44 of Chipata Overspill, Bonnet Kaluya aged 52 of Jack Compound as well as 39 year old Emelda Bwalya of Matero compound.
Ms. Kanjela told journalists in Lusaka this afternoon that the victims will appear in court soon.
She has further warned members of the public that the police force will extend the arrests to people who are in possession of forged documents.
Meanwhile, Ms. Kanjela says police have apprehended two people of George Compound for making fake cement.
She says the two have been detained to help with further investigations in the matter.
QFM
Labels: CORRUPTION, SITUMBEKO MUSOKOTWANE
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Government moves into zamtel
By Chiwoyu Sinyangwe, Bright Mukwasa and Kombe Chimpinde
Wed 25 Jan. 2012, 14:00 CAT
THE government has taken back 75 per cent shareholding in Zamtel "fraudulently" acquired by Libya's LAP Green Network in the controversial transaction hatched in 2010 at US$257 million. But former finance minister Situmbeko Musokotwane says the repossession of Zamtel's 75 per cent shares will not die naturally.
And a combined team of security wings yesterday sealed off all Zamtel operations across the country, expelling foreign top officials in Lusaka led by managing director Hans Poulsen, who has been replaced by telecommunications engineer, Dr Mupanga Mwanakatwe.
Meanwhile, the new Zamtel management has opened an account at Zanaco Lusaka Business Centre to provide a window for Zamtel regional accountants to deposit sales and other monies previously blocked by Drug Enforcement Commission (DEC)'s freezing of the company's official accounts.
President Michael Sata said yesterday that he deemed it desirable and expedient to compulsorily acquire the 75 per cent shareholding of Lap Green Network in Zamtel after the government having accepted without reservation the report on the findings of the committee investigating the sale of state-owned telecommunication company.
"The appropriate notice under the law has been given," special assistant to the President for press and public relations George Chellah said in a statement.
"Consequently, the President has ordered the dissolution of the Board of Directors of Zamtel. The Head of State has appointed Dr Mupanga Mwanakatwe, chairman and acting chief executive officer as a first step to regularise the affairs of the company. A new board will soon be put in place to give the policy guidance and direction to management and staff."
He said the government would restructure ownership of Zamtel to ensure Zambians owned the bulk of the shares in a revitalised Zamtel.
President Sata further directed Zamtel management to address the plight of Zamtel workers with due immediacy.
"There should be no loss in jobs except through retirement and attrition while maintaining the highest levels of discipline and respect of law," he said. "Zamtel workers have served with distinction in an area of sophisticated information technology. This has been so from the inception of the company."
President Sata reiterated his "relentless commitment to his duty as custodian of the interests of the Zambian people" and assured the Zamtel workers that their traumas and anxieties would be ended.
But Dr Musokotwane said although the debate on whether government must nationalise Zamtel or not was under the bridge, he was still interested in establishing why the government had taken such a decision.
"I can't speak for Lap GreenN but you cannot expect them to walk away from their investment without asking to be compensated. I do not want to speak for them, I think that is up to them. My interest is establishing why as a government we acted in the manner that we did as far as battles for Lap GreenN are concerned. That is their own internal matter, they can do what they want," Dr Musokotwane said.
He reiterated his demand for ZDA to release its report submitted on Zamtel.
"I know because I was a minister then that on all three counts, the ZDA said something different from what the commission of inquiry has said, so the question is who is telling the truth? ZDA or the commission…," he said.
Asked to counter the argument that officers at ZDA were operating under duress and pressure from government on the deal, Dr Musokotwane who is also Liuwa member of parliament said the same thing then could be said about the Sebastian Zulu-led commission of inquiry.
"Before PF got in government they called the sale fraudulent, remember that the commissioners were ministers so if you say that the ZDA were under the influence of government, why shouldn't the same be said on the commission of inquiry? So let us not politicise these issues. This is probably water under the bridge, but for those who want to know the truth, this issue still needs to be established after all, most probably this thing is going to go to court," he said. "I have been a public officer since 1991. I have worked under the Kaunda, Chiluba, Mwanawasa and Banda regime. Over this period, I have been above board. This is the only period that people are making accusations against me."
Dr Musokotwane also said the re-nationalisation of Zamtel would be a test case for other investors wishing to invest in the country.
And top foreign officials at Zamtel were yesterday expelled from the company shortly after reporting for their "daily routine" work schedules.
The expelled officials included Poulsen, a Ugandan national, David Chetty, chief technical officer, a Malawian of Asian origin, Adrian Hayd, chief financial officer, a Pakistani national and Ismail Dore, senior manager for business planning, a Zambian of Asian origin.
Sources said the expulsion of Dore was a "mistaken identity" as he is Zambian but his "skin colour sold him out".
In an emailed memo to workers, Zamtel chief human resource and administration officer Eve Banda confirmed the presence of state security at Zamtel operations and installations throughout the country.
"Dear all, we are currently surrounded by police presence, please I know this is a difficult working environment but let's endeavour to work as we await further instructions from the Government. Thanks…," Banda stated in a memo sent to all employees about 8:30 a.m yesterday.
Workers who spoke separately confirmed the heavy presence of officers from the security wings who offered thorough screening to employees reporting for work yesterday morning.
"Yes, the cops are screening everything from laptops and just about all personal belongings, and these are officials from Zambia Police, DEC and OP Office of the President," one worker said anonymously.
"But as for the accounts, all accountants that deal with monies from sales, collections on the payment bills, sim Subscriber Identity Module cards sales, and all regional accountants have been instructed to deposit whatever they have collected so far into account number 0030210000008659 at Zanaco Lusaka Business Centre."
And the Lusaka High Court yesterday rejected an application by Zamtel that its quest for a judicial review over the Drug Enforcement Commission's freezing of its bank accounts should act as an injunction if granted.
Judge Evans Hamaundu said in a ruling delivered yesterday morning that while he would grant Zamtel leave to commence judicial review proceedings, this order shall not operate as a stay of execution of the seiziure of the company accounts.
The security wings last week seized bank accounts belonging to Zamtel as part of a money-laundering investigation.
A Cabinet meeting of January 4, 2011 resolved to seize the 75 per cent stake held by the Libyan company, LAP GreenN, an investment wing of the Sovereign Wealth Fund used by fallen Libyan tyrant Muammar Gaddafi in spreading his hegemony on the continent as he sought to rule Africa.
[Fallen tyrant? He wasn't a 'tyrant' and he didn't 'fall'. He was illegally overthrown by NATO, so France and the UK could get a bigger part of the Libyan people's oil. - MrK]
On Monday, finance minister Alexander Chikwanda said the government would take back a 75 per cent stake in the country's sole total telecommunications in a decision made to "restore Zamtel back to the people of Zambia".
Under its previous government, former president Rupiah Banda's influence in abusing and circumventing set government institutions and procedures aided RP Capital to ensure LAP Green Networks bought Zamtel despite not being fit to run the country's total telecommunication provider.
The sale of Zamtel was initiated by former communications minister Dora Siliya and former president Banda's son Henry with RP Capital of Cayman Islands.
The sale saw Siliya's antics and manoeuvres which saw her disregard legal advice of the Attorney General's chambers and often chased top government and quasi government officials who disregarded her sworn trajectory over the sale she orchestrated.
ZDA was "pressured" to sell three quarters of Zamtel to LAP GreenN" despite the Libyan company having failed all three of the mandatory prequalification criteria.
The report also stated that Lap GreenN lacked the minimum three million subscribers as required by ZDA as LAP GreenN had no subscribers to itself, its holding company or its parent company.
The report stated that LAP GreenN had no audited accounts. Despite the government selling Zamtel to LAP GreenN for US$257 million, prior to privatisation, Zambia paid US$120 million for tax shares in Zamtel, and a further US$214. 45 million for investment shares.
"GRZ effectively paid Zamtel US $334.45 million to retain 100 per cent of its shareholding in Zamtel immediately prior to privatisation," the report read in part. "It is most perturbing that the GRZ decided to pay for the 25 per cent shareholding it already owned in Zamtel and paid a total US$334.4 million in what was termed as Tax Shares and a Subscription Amount."
On the other hand, Lap GreenN only paid US$257 million for 75 per cent shareholding of which the government was only entitled to US$42.6 million about 16.6 per cent of the value.
The net effect of this deliberately complicated transaction was that Lap GreenN took over Zamtel as a debt-free company with US$64 million sitting in its bank account with the US$64 million having been provided by GRZ and equivalent to the exact sum of money required for the newly-privatised company's capital expenditure for its first year of operations.
The report stated that the sale of Zamtel was fraught with irregularities in the tender processes, coercion in the acquisition of Zesco's assets, bad faith with the selection criteria, negligence in the management of the account of GRZ net proceeds, and a failure to monitor post-privatization.
The commission of inquiry led by Zulu, the justice minister, revealed that RP Capital was so powerful that it used to draft speeches former president Banda made on Zamtel as well as ministerial statements on the US$257 million sale of 75 per cent of Zamtel to Lap GreenN.
The report detailed that key government institutions like Zambia Development Agency (ZDA) and Zesco made decisions and abrogated their normal tender procedures as well as normal way of doing business because they "may have been under duress".
The report revealed that in some cases, officials who resisted the influence from Banda's aides were dismissed from their positions rampantly.
The report points out a case of Cyprian Chitundu who was fired from Zesco and replaced by Ernest Mupwaya for resisting the seceding of the Zesco optic fibre network to Zamtel to feed into the directive by RP Capital. Chitundu has since been reinstated as managing director of the power utility.
Labels: CORRUPTION, DEC, EVANS HAMAUNDU, LAP GREEN, MICHAEL SATA, RUPIAH BANDA, SITUMBEKO MUSOKOTWANE, ZAMTEL
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