Road contractors
By Gilbert Wandi
Friday June 13, 2008 [04:00]
The programme by the government to repair and rehabilitate some tarred roads in the country is an expensive exercise that should be taken seriously to avoid wastage of taxpayers’ money. The sad thing is that in spite of the huge amounts of money the government is spending on these roads, some of the repaired ones are far short of the required standards.
I don’t know the criteria which the government and RDA use to certify a road that has been worked on as completed before a contractor is paid. Take for instance the road which branches off from Kapiri Mposhi/Ndola road and joins the Luanshya-Ndola one.
This road was recently worked on by some road contractor and a few weeks ago, I was surprised to find that the road already has big potholes? Is this the new fashion of how roads should be repaired in Zambia or what is happening?
I challenge officials from Road Development Agency to inspect this road and see for themselves what I am talking about.
It does not make sense to start mending potholes on a new road unless there is something fishy about how these contracts are awarded.
http://www.postzambia.com/post-read_article.php?articleId=42744
Zambia Sugar: warning from history
By M M Mazwi
Friday June 13, 2008 [04:00]
Your June 11 article entitled ‘Chief accuses Zambia Sugar managers of being pompous’ on Zambia Sugar's attitude towards the Zambian government made interesting reading.
Actually, that problem is not new, will never end and has a long history.
While my fellow Evelyn Hone students protested against former president Frederick Chiluba's third-term bid in 2001, I recall attending a 'handover' function, organised by the Zambian government (or was it Zambia Sugar management) to mark the transfer of (majority) ownership from government hands to Illovo Sugar.
The only senior official then was some union leader whose name escapes my memory but is Lozi. I suppose by now the government knows the behaviour of investors, especially those from South Africa. So the government should not expect anything more from these people.
And I hope Magande was not fighting to be accommodated in that Zambia Sugar 'guesthouse'.
Labels: CONTRACTORS, ROADS, ZAMBIA SUGAR
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Chief accuses Zambia Sugar managers of being pompous
By Justine Kawisha in Mazabuka and Fridah Zinyama in Lusaka
Wednesday June 11, 2008 [04:00]
CHIEF Mwanachingwala of the Tonga people of Mazabuka district has accused Zambia Sugar Plc management of being pompous in their dealings with government leaders. And ZAMBIA Consumer Association (ZACA) executive secretary Muyunda Ililonga said the government is not doing enough to resolve the sugar situation in the country as it had not allowed other players to import the commodity.
Reacting to finance minister Ng'andu Magande's complaints on Radio Mazabuka yesterday during Face the media programme, over Zambia Sugar management's failure to welcome him and attend the fundraising dinner for Mazabuka Radio station, chief Mwanachingwala said it was an insult for Zambia Sugar management to ignore Magande's presence in the Zambia Sugar estate where the function was being held.
"Zambia sugar is pompous because 90 per cent of the company shares are owned by the Illovo group who are foreigners,” he said.
Chief Mwanachingwala said he was very disappointed with Zambia Sugar management for shunning the function, which was officiated by the country's senior minister.
He disclosed that Zambia Sugar even refused to offer Magande accommodation giving an excuse that the rooms were fully booked at the time the minister went to request for accommodation.
"No one forced the company to donate to the radio station and it is better to welcome the minister and attend the function even when they cannot pledge anything," he said. "How would you feel if you went to someone's home and that person runs away from you? It's an insult suggesting that you are nothing to him."
Chief Mwanachingwala said he always quarrelled with Zambia Sugar management over their disrespect for government officials and workers. He said he was, however, happy that Zambia Sugar's behaviour against Magande had vindicated him because Zambians could now tell who was bad between him and the company management.
"Even the employees themselves have no freedom, what kind of a company is Zambia sugar which has no regard for senior government officials?" chief Mwanachingwala asked
He blamed members of parliament for failing to come up with laws which could supervise the operations of foreign investors, to avert a situation where the foreign investors insulted the people of Zambia.
Zambia sugar corporate affairs manager Lovemore Sievu who could neither respond to the minister nor chief's complaints, just cut the phone line after asking the reporter to hold on for a long time.
Magande said he was not happy with Zambia Sugar's absence at the function and that he was going to request the company management to explain why they never attended the dinner dance which was hosted in their estate on Saturday night.
Speaking during a stakeholders' meting at Lusaka's Chrismar Hotel yesterday, Ililonga said the government seemed to have continued protecting Zambia Sugar when it had failed to off load enough sugar on the market.
"We have in the past expressed concern about the unfairness of trade especially in the sugar sector but government has not paid attention to our cries," he said. "We therefore need to join forces as civil society and project our voice on this issue."
Ililonga said civil societies, therefore needed to come up with a strategy to push government to take action especially concerning the sugar shortage in the country.
"High sugar prices are leading to an increase in poverty levels amongst many Zambians and we feel that the domestic market should not be subsidising the export market," he said. "We are wondering whether government really has the interest of its people at heart because they seem not to be doing any thing serious about the shortage," he said.
ZACA programme manager Micheal Musenge said the government should institute an investigation as to why Zambia Sugar had continued exporting the commodity when they had failed to meet the local demand.
"They have not shown any sympathy towards their customers and have violated the basic rights of the citizenry," he said.
Labels: CHIEF MWANACHINGWALA, LABOUR, MUYUNDA ILILONGA, NEOLIBERALISM, ZACA, ZAMBIA SUGAR
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Zambia Sugar is a dormant player, charges Dr Chigunta
By Joan Chirwa
Wednesday June 04, 2008 [04:00]
IT is sad that Zambia Sugar exported sugar to the Great Lakes region when local markets have an artificial shortage of the commodity, UNZA Development Studies lecturer Dr Francis Chigunta has said. And sources have questioned the reduction in export price for sugar from around K1,400 in March to about K1,200 in May at a time when the country was experiencing the shortages. Commenting on revelations that Zambia Sugar had exported around 3,000 tonnes of sugar to the Great Lakes region between March and May this year, Dr Chigunta said the dominance of the latter on the market had necessitated the current problems.
“It is a sad development that Zambia Sugar actually exported sugar when it had been refusing all this time and this is the more reason why we had a shortage,” Dr Chigunta said. “Zambia Sugar is a dominant player in the sugar industry. And with the Vitamin A fortification requirement for sugar sold on the Zambian market, this has made Zambia Sugar to exploit the consumers even more.”
According to documentation obtained by The Post, Zambia Sugar exported a total of 2,982.20 metric tonnes of sugar between March and May this year, against the company’s earlier denials that it had not done so in the recent past.
In March, the company exported 1,330.95 tonnes; 1,106.95 tones in April and 544.30 tonnes in May. However, Zambia Sugar on Monday only admitted to exporting 30 tonnes of sugar to Burundi on May 23, 2008, saying this was due to a system breakdown.
On March 25, 2008, Zambia Sugar exported 32 tonnes of sugar to Bujumbura, Burundi at US $440 per unit, higher than the US $365 per unit of sugar sold on May 23. Rough estimates indicate that in March, the sugar was exported at around K1,400 per kilogramme while the price was reduced in May to around K1,200 for the same quantity.
“The question is why Zambia Sugar exported at a much lower price in May when that is the time the country started experiencing shortages of sugar,” the source said. “From the figures, it is clear that the company is trying to make more money from local consumers than the export market, which is not fair at all.”
And Dr Chigunta has advised the government not to completely rely on market forces to determine the cost of commodities in the country to avoid exploitation of consumers.
“There is need to revisit the competition law so that we don’t have a reoccurrence of such situations where prices of commodities rise beyond consumers’ reach,” Dr Chigunta said. “Zambia sugar just wants to maximise its profits by creating an artificial shortage.
First of all, Zambia Sugar knew it would have less production, and should have notified relevant authorities so that we find a way of mitigating the shortage.
The company has been forced to supply to the local market after government announced that it would allow imports.”
Commerce permanent secretary Davidson Chilipamushi was not readily available for comment by press time.
Labels: FRANCIS CHIGUNTA, ZAMBIA SUGAR
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Zambia Sugar, Zesco in talks over Nakambala expansion
By Joan Chirwa and Florence Bupe
Tuesday April 24, 2007 [09:41]
ZAMBIA Sugar Plc has engaged into discussions with ZESCO Limited over the use of water in Kafue River for its Nakambala expansion project. But an energy expert has called for the re-evaluation of the reported impact that increased water abstraction for irrigation purposes from the Kafue River will have on power generation.
In an interview in Mazabuka, Zambia Sugar corporate affairs manager Lovemore Sievu has disclosed that his company would continue discussing with ZESCO Limited, considering that the interests of the two companies were neither divergent nor conflicting.
ZESCO Limited managing director Rhodnie Sisala last month wrote a letter to the board secretary of the Water Development Board copied to the Permanent Secretary at the Ministry of Energy and Water Development.
Sisala raised his concerns over the Zambia Sugar expansion project, indicating that the K840 billion scheme risked jeopardizing the operation of the Kafue Gorge power station including plans to develop the Kafue Gorge Lower and the Itezhi-tezhi power stations.
But Sievu told The Business Post that Zambia Sugar had received approval by the Water Board for water rights in the Kafue River. “The Water Board approved our application for water rights in the Kafue River,” Sievu said. “Zambia Sugar Plc recognizes the strategic importance of ZESCO Limited to the country. And to that effect, Zambia Sugar is dialoguing with ZESCO Limited to see how we can co-operate and work well in the future.”
Sievu said Zambia Sugar, during the time of expansion, would increase its own generation of power. “The increase in power generation by Zambia Sugar will enable ZESCO Limited to meet electricity demand for other people. Zambia Sugar is a large consumer of electricity in the Southern Province and when it starts generating most of the power on its own, more people will have access to electricity,” Sievu said.
“We are actually complementing what ZESCO limited is doing in terms of electricity generation on one hand while relying on them on the other hand. We will continue to discuss with ZESCO limited as we are both interested in having electricity supplied to all the consumers in the country.”
Sisala, in his letter, expressed fears of adverse effects on ZESCO’s current and future operations if the proposed expansion in water abstraction by Zambia Sugar was allowed. The government recently granted Zambia Sugar permission for its expansion project after extensive deliberations with the Water Development Board and ZESCO Limited.
Sisala further indicated that a large-scale increase in the extraction of water from the Kafue River would have an adverse effect on ZESCO and other users of electricity due to a drastic reduction in the volumes of water.
The Zambia Sugar expansion project will involve upgrading of the existing factory, construction of roads and canals as well as the planting of sugar cane on over 10,000 hectare of additional land. This is projected to increase the company’s annual production from the current 246,000 metric tonnes to 440,000 metric tones by 2010, making it the second largest producer of Sugar after Sudan.
Meanwhile, energy expert Charles Haanyika has called for the re-evaluation of the reported impact that increased water abstraction for irrigation purposes from the Kafue River will have on power generation.
Reacting to the decision by the Water Development Board to grant additional water rights to Zambia Sugar Plc for purposes of irrigation to facilitate the company’s expansion programme, Haanyika said increased abstraction of water from the Kafue River, which is Zambia’s main source of power, might impact negatively on power generation capacity.
Haanyika noted that the project had raised a lot of controversy that needed serious and urgent attention, as all stakeholders would be affected. “This project is a very complex issue, and the decision by the water board to ignore ZESCO’s concerns may have serious repercussions even on Zambia Sugar itself because they also need energy,” Haanyika said. “The fact that they (Zambia Sugar) are expanding their cultivation hecterage and production means need will arise for more power. Therefore, there is need for all the parties involved to carry out a detailed evaluation of the situation and reach a compromise that will not disadvantage any stakeholder.”
Haanyika said the Water Development Board should have taken into account the concerns raised by the ZESCO Limited and come up with ways of balancing their decision. “ZESCO’s concerns are justified because the country’s demand for power is ever increasing, but the volumes of water are not. We need as a country to be very careful with the use of this finite commodity, especially in light of the looming power shortage in the region,” he said.
Haanyika also explained that increased abstraction of water from the Kafue River could lead to higher soil erosion, and this could ultimately have adverse effects on agricultural activities in the surrounding areas.
However, Haanyika pointed out that Zambia Sugar Plc’s expansion programme would be beneficial to Zambia’s economic growth if required measures were well handled. “It is obvious that once Zambia Sugar expands its production capacity, the country will be bale to export more and this will greatly benefit the country in terms of revenue,” Haanyika said. “However, relevant authorities and stakeholders need to ensure that concerns are carefully studied and measures put in place to avoid well- intended projects from working against certain players, and the nation as a whole.”
Labels: ZAMBIA SUGAR, ZESCO
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