Court orders Chiluba to appear before UTH docs
By Laura Mushaukwa
Saturday May 19, 2007 [04:00]
ACTING deputy registrar of the High Court Jones Chinyama has directed second Republican president Frederick Chiluba to appear before a team of doctors at UTH to review his medical condition. Chiluba is to have his medical condition reviewed within a period of two weeks. The order came after lawyer Diana Bunting informed the court on behalf of the defence (Robert Simeza and John Sangwa) that Chiluba was not before court for mention because he was still unwell.
Bunting further asked the court to set trial dates sometime in August because Chiluba was scheduled to go to South Africa for medical review in July.
In response, state prosecutor Mutembo Nchito noted that from what Bunting was saying, Chiluba was not able to attend trial anytime before August.
Nchito noted that it was evident that Chiluba was active in the public domain and engaged in matters more strenuous than attending court.
He suggested for special equipment to be provided for Chiluba to attend court in the comfort of his home if it was not possible for him to attend court in person, or that the trial date could be set in August as per request by the defence.
After listening to the applications, magistrate Chinyama said he ordered Chiluba to appear before a team of doctors last time because of his medical condition.
He said he did not order Chiluba to stay away from court at will.
Magistrate Chinyama then ordered that a review of Chiluba's medical condition be done and a report presented before court after which trial dates would be set.
Defence lawyer Robert Simeza said it would be ambitious to assume that the review could be carried out in two weeks because the doctors needed a report from Chiluba's doctors treating him in South Africa.
This is a case where Chiluba is jointly charged with Access Financial Services directors Faustin Kabwe and Aaron Chungu for theft of about US $500 000.
The trio is alleged to have stolen the money in question between 1998 and 1999.
The matter comes up on May 31
Labels: CHILUBA, COURTS, UTH
Read more...
Tilyenji has failed, replace him
By Editor
Saturday May 19, 2007 [04:00]
There is no doubt things are not as they should be in UNIP. Both the leadership and the membership of the party are in disarray. As we have stated before UNIP is an incredible case of a political organisation destroying itself. Unquestionably, the leaders, the ones who have been running that party since Dr Kenneth Kaunda left the scene are responsible for its destruction. Some attempted to destroy it wittingly; others, unwittingly.
Everything they did led to the destruction of this party; all the phenomenon and all the tendencies that were unleashed in and on this party led to its destruction. We saw this right from the beginning - or soon after the beginning - when a series of phenomena of that kind began to appear.
UNIP's current leadership under Tilyenji Kaunda doesn't seem to have a clear, precise idea of its role, and of all those factors that can help stimulate and encourage people to stay in, or join, this political party. There doesn't seem to be any link between what the leadership of this party is doing or what it is ready to do, on the one hand, and the future, on the other hand.
UNIP seems to have lost all its values and ideological orientation. If one starts a process in which all of a political party's values begin to be destroyed, that process is very negative. It's a matter not of the analysis of criticism of problems, but of the destruction and negation of all of the values, merits and history of UNIP.
The leadership of this party has made enormous mistakes by failing to foresee the consequences of what they were doing and by not doing the right thing to enable them to return to power or play a meaningful opposition role to reach the goals and purposes they proclaimed - which, of course, were necessary and legitimate.
Many of the strategic and tactical mistakes that were made were viewed as the correct way of doing things. Then, when all those negative tendencies were unleashed, opportunistic elements were also introduced, including all of the elements that wittingly acted to destroy UNIP and what it stood for. Naturally, the MMD and its government, especially under Frederick Chiluba, helped to destroy UNIP, urging on vultures in that party.
However, there's no way the MMD and Chiluba could have destroyed UNIP if this party's leadership and members hadn't destroyed it first, if those in leadership hadn't already destroyed their party, which is what happened. The death of UNIP is not a natural one - it has been assassinated.
The names of those who worked wittingly with MMD and Chiluba as a fifth column to destroy UNIP, are not yet known but will be known someday, as will the names of those who worked wittingly in complicity to destroy UNIP. They will be known someday; that information always comes out. It may take years but someday they will be known.
This doesn't mean things ended there. Right now, there's so much uncertainty, problems and splits that are painful to see.
But it's pleasing to see some UNIP leaders like Col Panji Kaunda trying to reassert some old values; trying to struggle for what is right. There is no doubt UNIP is a very difficult party for anyone to lead right now. But there's also no doubt that Tilyenji Kaunda has been a disaster as the supreme leader of this party. Tilyenji came into the leadership of this party without anything discernible to offer other than his name, the fact that he was Dr Kaunda's son and a brother of one of the outstanding leaders of that party, Major Wezi Kaunda, who had just been assassinated.
This is what got Tilyenji the leadership of this party and very little of anything else, if any, really mattered. But the last six years or so have proved that Tilyenji's family connections were not enough for him to be an effective and efficient leader of this party. There is nothing Tilyenji has displayed as the leader of UNIP to convince anyone that there was still hope for a reversal of fortunes in this party. And it’s good his own brother, Col Panji is the one pointing out all these things; is the one telling the nation that Tilyenji is a useless leader running the party from a bedroom at his father's house.
Truly, Tilyenji has cost UNIP a lot; his poor leadership drove away even some of the most committed party members with no hope of him ever being able to bring them back. There is urgent need for UNIP to reorganise itself and draw back to its principles. With sufficient commitment, UNIP can be rebuilt and made to make a meaningful contribution to the politics and leadership of our country.
Losing an election or elections is not the end of things - it is part and parcel of a multiparty political dispensation. If a political party's bearings are correct, it will always come back to power no matter how long it takes. And even if it doesn't come back to power immediately, it can still contribute to the politics and governance of the country through effective and efficient opposition.
The Sandinistas of Nicaragua were out of power for a much longer period than UNIP but they kept their faith and organisation and are back in power. No revolution ever comes to an end and all revolutionaries have the duty to keep its ideas, principles and goals alive. Even if UNIP tried to close off prospects for future progress, it wouldn't be able to do so. Nobody controls the future.
We think UNIP did some great work in our country, effecting great changes and engaging in important social projects that will last. Nobody can wipe them out or suppress them. Therefore, regarding prospects for the future, we think they exist because our people have no alternative to meet the future, they have no hope but the changes, advances and improvements that the future may bring.
Above all, UNIP still has some structures albeit very weak and disorganised, a small but courageous membership that has endured the difficult years of the Chiluba regime struggling in disadvantageous conditions and to recover from setbacks. But if UNIP is to harbour any hope for a reversal of fortunes, it has to start working seriously at its organisation and leadership.
The Tilyenji type of leadership cannot do given the conditions UNIP finds itself in today; even with the most advanced technology, UNIP cannot successfully be run from a bedroom as Tilyenji would like everyone to believe. The best thing for Tilyenji if he has any sense of dignity and honesty in him is to step down and help this party find a more suitable and competent comrade to take over the leadership.
Otherwise his will be just a job to enable him earn a living and not political leadership. Col Panji deserves credit for pointing out the deficiencies in his brother's leadership of the party. This is the way things should be because UNIP should be bigger than a family, the Kaunda family. We should be able to criticise even our own family members if the situation or circumstances call for that.
There's no need for another protracted leadership struggle within UNIP because there's none at the moment; Tilyenji has decimated the party and should graciously hand over to a more capable member of UNIP. This will be in the interest of UNIP and the country. For our multiparty political system to operate efficiently, we need well organised political parties that are efficiently and effectively managed.
Labels: EDITORIAL, TILYENJI KAUNDA, UNIP
Read more...
Panji accuses Tilyenji of running UNIP from his bedroom
By Brighton Phiri
Saturday May 19, 2007 [04:00]
EASTERN Province UNIP chairperson Colonel Panji Kaunda has accused his younger brother Tilyenji (r) of running the party from his bedroom. Col Kaunda, who confirmed in an interview that he had differed with Tilyenji over his leadership style which he said had destroyed UNIP, said his brother was under the heavy influence of UNIP vice-president Njekwa Anamela because he was ever at his father, Dr Kaunda's residence.
"He must be under the influence of his vice-president because he spends most of his time at daddy's house. Tilyenji has never been to Freedom House to run the party. You can't run a party from the bedroom...it is completely a disaster," Col Panji said. "We have no choice but to change UNIP leadership from the top to the grassroot level. Tilyenji has completely failed the UNIP membership."
Col Panji cited the party's recent selection process of the Kapoche by-election candidate, where UNIP adopted former Msanzala UPND parliamentary candidate Levison Mumba, as one of Tilyenji's failure to provide leadership. He wondered why Tilyenji chose to ignore him as Eastern Province chairperson in the selection process.
"As provincial chairman, I should have been consulted. As UNIP provincial chairman, I have been preaching the consolidation of the United Democratic Alliance (UDA) but to my rude shock, Tilyenji and his colleagues chose to field their own candidate," he said. "I feel strongly betrayed. We cannot afford to compromise our principles just like that."
Col Panji said he would not allow Tilyenji and his colleagues to have a field day over the running of the party affairs.
"I am determined to contribute towards changing UNIP leadership. As chairman, I am aware that we have not met as Central Committee to discuss the party's affairs. You can imagine that we went into the 2006 elections without the Central Committee meeting," Col Panji said. "How can we go into war without the generals meeting?"
According to UNIP sources, differences between Col Panji and his younger brother erupted after Tilyenji engineered the adoption of Mumba for the Kapoche parliamentary seat.
The sources disclosed that Tilyenji left his elder brother behind in Lusaka when he travelled to Petauke and that Col Panji confronted Tilyenji over his conduct.
"Yes, I asked Tilyenji to explain why he left me out and how UNIP could go it alone when we belonged to an alliance. He said he wanted to introduce high profiles in the party. This is absurd because Charles Banda was our candidate as UDA," Col Panji said. "I am on my way to Kapoche to campaign for UDA candidate Charles Banda because Levison Mumba is a mercenary."
When contacted for comment, Tilyenji admitted that there were differences between him and his elder brother over party matters.
"These are internal problems and can be resolved internally," Tilyenji said. "There will be always grievances but they will be resolved internally."
Tilyenji said there were differences between him and his elder brother on the pull-out of UDA.
"There was full consultations...I think that there is no UDA candidate in Kapoche," Tilyenji said.
He said there was no need to describe Mumba as a mercenary because he was UNIP before moving to MMD and UPND.
Tilyenji said UNIP considered Mumba because he apologised to the Zambians for having participated in the corruption scandal under the Chiluba administration.
"He is our son as UNIP and we allowed him to come back," he said. "Levison Mumba is very much UNIP while Charles Banda is not."
On Col Panji's accusation that he was running UNIP from his bedroom, Tilyenji, who could not deny, said technology had necessitated one to operate from a house office. Tilyenji dismissed Col Panji's accusation that he was being influenced by his vice-president Anamela.
"I am being influenced by all my leaders from the section, branch, ward, constituency, district, province and central committee level," he said. "My job is to harmonise the UNIP leadership."
Tilyenji took over UNIP leadership after UNIP cadres ousted then embattled president Francis Nkhoma from Freedom House in 2001. In 2004, Tilyenji's other elder brother Dr Waza left UNIP in anger and joined Patriotic Front before retiring from politics.
Labels: PANJI KAUNDA, TILYENJI KAUNDA, UNIP
Read more...
(50YEARS.ORG) Don’t Just Ditch Wolfowitz—Democratize!
Dear 50 Years Is Enough Network Supporters,
The king is gone, but the kingdom remains. The Wolfowitz scandal is just the tip of the ice berg when it comes to World Bank corruption, lack of legitimacy, transparency and accountability. While media coverage on the Wolfowitz scandal has been critical of the institution and its erstwhile President, the general assumption is that once Wolfowitz is gone, the World Bank will once again regain its legitimacy as the world’s largest “poverty-fighting” institution. It would be sad if after hundreds of articles written on this scandal, the World Bank ends up with an enhanced reputation.
~We need your help!~
How? Write a letter to the editor, of between 100-200 words, to your local newspapers. We have included two sample letters for inspiration. Mail, fax or email them it to them, and send a copy to us at ruth@50years.org. Remember to include your name, phone number and email so the editorial staff can get in touch with you!
Sample Letter A: Don’t Just Ditch Wolfowitz—Democratize!
Two years on the job and two years too late, Iraq-war architect and World Bank President Paul Wolfowitz, has finally been given the boot. Nominated as President by the White House, Wolfowitz managed the World Bank as well as the Bush administration has managed the Iraq War. The scandal over Wolfowitz’s cushy pay package for his partner is just the tip of the iceberg when it comes to World Bank corruption.
In 2005 Wolfowitz got the job despite having no credentials, because the World Bank, the largest development institution in the world, is run by the richest countries in the Global North: the U.S. holds veto power over all decisions made, the Bank president is always nominated by the U.S., and board meetings are closed to the media.
Firing Wolfowitz is not enough. The World Bank cannot act as a cash cow for Northern contractors and the IMF must cease to function as a political tool for the United States and other rich countries. The World Bank and its shareholder governments must take this opportunity make the organization more accountable and democratic.
Ruth Castel-Branco, 202 463 2265/ ruth@50years.org
Sample Letter B: Wolfowitz—An Appropriate Symbol for the IMF and World Bank
World Bank President Paul Wolfowitz, now exposed as a corrupt liar, has been an invaluable asset in exposing the fundamental illegitimacy and institutional corruption of the World Bank and IMF.
Wolfowitz’s arrogance, his insistence that any problems were the result of his colleagues’ actions, never his own, is a perfect match for the World Bank, which has always refused to take responsibility for its own disastrous policies and projects, inspired by a unquestioning belief in neo-liberalism. The failures of the World Bank’s neo-liberal ideology, such as privatization of basic services, user fees for primary education and healthcare, and the rapid deregulation of trade and investment, have resulted in death, marginalization, and impoverishment.
Ruth Castel-Branco, 202 463 2265/ ruth@50years.org
--
Ruth Castel-Branco
Outreach/Communications Coordinator
50 Years Is Enough Network
3628 12th St. NE
Washington, DC 20017
Phone: + 1 202 463 2265
Email: ruth@50years.org
www.50years.org
We need your support for Global Justice!
Donate online at http://50years.org/donate.html
Labels: IMF, PAUL WOLFOWITZ, World Bank
Read more...
World Bank calls for 'windfall tax' on mines
By Fridah Zinyama
Friday May 18, 2007 [04:00]
A WORLD Bank adviser has urged the government to impose a 'windfall tax' on the mines to enable Zambia benefit from the high copper prices on the international market. A windfall tax is said to be a one-off tax levied, where some unexpected increase in profits or value is made which the government or the public think is an unreasonable advantage taken at the public's expense.
Presenting a paper to the World Bank, Paul Collier said the Zambian government had made an error in allowing the tax-free regime for copper despite the copper boom.
“This is one of the first order errors that needs urgent attention at senior level within the Bank,” Collier said.
He said in re-contracting the mining agreements, Zambia should not dwell on the legal issues of contract.
“Whether a contract should be maintained is a cost-benefit decision,” Collier noted. “I suspect that the gross gains from the re-contracting considerably outweigh the value of the current ‘reputation’ of the Zambian government.”
And in a submission to the Parliamentary Committee on Economic Issues looking at the legal and policy framework on investment in Zambia, Lusaka Central member of parliament Dr Guy Scott who was quoting from Collier’s paper, said there would be a lot of international support if Zambia decided to impose a windfall tax on the mines.
Dr Scott informed the committee chaired by Kabwata member of parliament Given Lubinda, that the document that was presented to World Bank officials by Collier, on Zambia's copper taxation, would be worth debating in Parliament .
He said Collier was optimistic that it was possible for Zambia to quickly resolve the tax issues, or the country would continue losing revenue from the high prices of copper.
Dr Scott said it was shocking that the government was running a fiscal budget deficit when Zambia was experiencing a peak in copper prices.
He said if the government continued delaying the process of re-negotiating the development agreements and 'windfall tax', Zambia would continue losing about US $ 800 million in potential revenue from the mines.
"This situation cannot be allowed to continue. Government should show a lot more commitment in resolving the tax issues or hospitals will continue running without medicine, schools without teachers and impassable roads," Dr Scott said.
He said if the government made a decisive move over the mining agreements, the mining houses would be left with no choice but to pay the windfall taxes.
"Even if the mining companies tried to rubbish the government to the international community, donors are of the view that Zambia should be benefiting from the rentals that mining companies ought to be paying," Dr Scott said.
Dr Scott said Zambia needed a good lawyer to handle the legal implications that would arise from re-negotiating the development agreements and windfall taxes.
He said government had been delaying to make a decision over the issue of the mines because they feared that Zambia’s reputation would be ruined.
"It is not just about Zambia's reputation in the eyes of the donor community at stake here but the future of Zambians who are not benefiting from their resources," said Dr Scott.
There have been calls from different stakeholders for government to quickly impose a windfall tax on the mines so that Zambians could benefit from the good prices on the international market.
Labels: GUY SCOTT, WINDFALL TAX, World Bank
Read more...
Put pressure on Chiluba
By Editor
Friday May 18, 2007 [04:00]
It is very important to pay a lot of attention to the backgrounds of people we elect as our leaders. In 1991, UNIP had accused Frederick Chiluba of having stolen some money as a trade union leader. We didn’t want to listen to anything negative about Chiluba at that time. Everything was dismissed as propaganda from UNIP.
Even now, we don’t want to listen to anything negative or critical of the politicians we support. And those who attempt to do so are accused of having all sorts of agendas and harbouring hatred. We are glad that Hakainde Hichilema now accepts this approach following the London High Court judgment on Chiluba and his tandem of thieves.
But when questions were being raised last year for Hakainde to explain how as liquidator of Lima Bank he allegedly sold himself this bank’s house in Kabulonga in which he now lives, he didn’t take kindly to it. Yet people wanted to get to the bottom of his character, of how he treats his fiduciary duties.
This was important because if he could sell to himself assets of a company in which he was liquidator, that may raise questions about what he might do as president of the Republic with assets of the nation entrusted to him. Hakainde has not explained this issue up to now, the issue of Lima Bank house. We are not in any way trying to insinuate anything or victimise him, but we are merely following his advice to the Zambian people.
We are not saying we should do it now, we can wait because right now we have a lot of work to make Chiluba account for and bring back what he stole; we have to see to it that the London High Court judgment is enforced to the letter without respite. Hakainde can explain this issue at his own time but in the meantime, he should join the rest of our people in ensuring that Caesar gets what belongs to him from the thieves.
We truly need to know our leaders, especially those vying for very high political offices. We agree with Hakainde that Chiluba’s thefts are disgraceful and horrifying. And if the nation can help it, this should be the last time we have a thief for a president. And to achieve this, it will require a strong critical spirit on the part of our people.
Of course it cannot be ignored that bloodthirsty people hate anyone who is honest and criticises them or exposes the crimes of their league, but righteous people will protect the life of such a person. Good always prevails over evil. When an intelligent man brings a lawsuit against a fool, the fool only laughs and becomes loud and abusive (Proverbs 29:9).
We shouldn’t be envious of thieves like Chiluba, and we shouldn’t try to make friends with him because causing trouble is all they ever think about. If you love your life, stay away from the traps that catch the wicked along the way. It is a disgrace to be greedy; poor people are better than thieves and liars.
It is good that most of our politicians have joined our people to denounce Chiluba’s thefts. This is good because it will help the nation set new ethical standards.
And as Hakainde has correctly observed, the London High Court judgment must sound warning bells to all our people to be very careful in choosing their leaders because we cannot continue to have monkeys in charge of our maize fields. They will eat all the maize and leave nothing for the people. Fire tests gold and silver; a person’s reputation can also be tested through what he says or what he does.
Abuse of public resources and thefts of the Chiluba type will only stop when we have intelligent, honest and humble leaders who see politics as a vocation to serve the people and not as a tool to self-enrichment. No one deserves to be a leader unless they love this country and all its people more than themselves.
We say this because if Chiluba had any bit of love for this country and its people, he wouldn’t have done even a tiny fraction of what he did; he wouldn’t have stolen and abused so much public resources when over 80 per cent of our people are wallowing in abject poverty. No one, unless he is a kleptomaniac or he is sick in the head, steals from the people he loves.
We need political leaders who are concerned with justice in the nation because in this way, the nation will be strong. When a leader is only concerned with the money that goes into his pocket, he becomes a danger to the nation and may ruin his country.
We should strive as far as possible to make our politics an area of great importance for promoting justice, peace, development and community among all our people; a way of building up our nation for the common good.
We also welcome the position taken by Benny Tetamashimba and his colleagues in the MMD to put pressure and ensure that Chiluba owns up. There is no way the Zambian people should be forced to build a house for a person whose dishonesty and thefts have left them impoverished. There are definitely many ways in which this can be achieved or implemented. The only thing that the Zambian people can construct for Chiluba is a prison.
We welcome the advice by Tetamashimba to journalists. We see no reason why journalists should not write about the thefts of politicians when they are in government. And the state media is notorious for this. For ten years, they never brought even a word critical of Chiluba; they never attempted in any way to criticise or correct him. They have continued to do the same with Levy Mwanawasa and his ministers.
They can’t tell us that we were the only ones who were able to see Chiluba’s transgressions and iniquities. For over six years, they have never criticised or questioned anything Levy has said or done. Again, are we the only ones with special eyes to see the wrongs of our rulers? This type of journalism does not help the nation; it is useless journalism if it can be called journalism at all.
And since Tetamashimba is in government, he should help the state-owned media to get out of this bad practice which is of no benefit to the nation because they can play a far much better role than they are currently doing. But this can only be possible if more independence and autonomy is given to state media organisations. As things stand today, this is not possible because of interference from those in government.
Labels: CHILUBA, EDITORIAL, HAKAINDE HICHILEMA, UNIP
Read more...
Pressure on Chiluba will continue - Teta
By Bivan Saluseki
Friday May 18, 2007 [04:00]
PRESSURE on former president Chiluba will continue until the man owns up, MMD spokesperson Benny Tetamashimba said yesterday. Tetamashimba said if it were possible, even the money government had allocated for Chiluba's house should be used for other projects that would benefit the people.
"The pressure is going to continue on Chiluba. He has to own up. The pressure will continue. He had his time to defend himself. He is saying he wants to appeal, he wants to appeal for what?" he asked.
Tetamashimba said Chiluba should not feel that the kind of pressure he was experiencing now would be the last.
“He is a very lonely man. There is a lot of pressure on him,” said Tetamashimba.
He said Chiluba had been given an opportunity to defend himself but even for the criminal case in Zambia, he had used illness as a scapegoat.
He said Chiluba before the 2006 elections openly campaigned for PF president Michael Sata on the Copperbelt and he (Tetamashimba) witnessed that.
Tetamashimba said MMD had welcomed the London judgment including the support by donors.
He said the MMD had made Zambians believe in the fight against corruption, which the President had been pursuing.
Tetamashimba gave credit to The Post for exposing corruption. Tetamashimba said prior to the last elections, Sata had written off the allegations against Chiluba and even talked of forgiving him but now had seen what Judge Peter Smith had revealed.
Tetamashimba said benefits given to a former president were not free for all.
“It’s not free for all. It’s according to the way you behave yourself,” he said.
Tetamashimba said Chiluba stopped the same benefits from being given to Dr Kaunda and at some point brought officers from Scotland Yard as explained by Dr Kaunda.
Tetamashimba said had Chiluba’s house been constructed, it would have been one of the assets to be seized.
Tetamashimba said if there was any money, which was supposed to be used on Chiluba’s house, the government could ‘recover’ the money by not constructing it.
He said President Mwanawasa had been vindicated.
“I just hope that politicians who had been stealing had learnt a lesson,” he said.
Tetamashimba said the judgment had come at the right time and would teach government workers in the habit of stealing a lesson.
Tetamashimba said journalists should be able to write about politicians’ thefts even as they were in government.
“If we are thieves, talk about us when we are in government,” he said.
Tetamashimba said Chiluba should not even talk about President Mwanawasa being a beneficiary of the plundered money because every Zambian was entitled to medication outside the country.
He said there was a time when Zambians wanted to know how the money was plundered and how President Mwanawasa benefited but Chiluba failed to provide proof.
“He should have gone to testify. Was he fearing because he was involved in plunder?” he asked.
Tetamashimba thanked The Post for exposing Chiluba’s plunder despite the arrests made during his government when the paper wrote that Chiluba was a thief.
Some European nations and the United States observed in a joint statement on Wednesday that Chiluba’s judgment was a historic victory for the people of Zambia.
Denmark, Ireland, Norway, the Netherlands, Sweden, the United Kingdom and the United States of America stated that the money stolen by Chiluba and his co-defendants could now be returned to Zambia to be invested.
The donors stated that the judgment was likely to have an impact on corruption in Africa and globally.
“It is courageous that the government of Zambia has pursued this case and that a former head of state has been held accountable for corrupt activity in this way. This is likely to have an impact on corruption in Africa and globally.
We look forward to a continued commitment by the government of Zambia and the President to the fight against corruption and wish them further success in bringing those who have stolen from the people of Zambia to justice. We also look forward to a further institutionalisation of the fight against high level corruption in Zambia,” they stated.
And finance deputy minister Jonas Shakafuswa said Chiluba’s US $41 million theft was a tip of the iceberg.
Shakafuswa warned Chiluba that the government would move a motion to suspend his benefits if he continued being stubborn.
About two weeks ago the London High Court established that Chiluba and others defrauded Zambia a total of US $41 million through the BK Facility and Zamtrop Account in London.
Judge Peter Smith ordered Chiluba and others to pay about 85 per cent of the total sum within 14 days upon service.
The London court upheld the claim by the Attorney General of Zambia and found Chiluba and others liable and ordered that defendants compensate or account for a total amount of approximately US $41 million.
Judge Smith established that Chiluba breached his fiduciary duty owed to the country and gave dishonest assistance in the arms sale (B.K. Facility) and he was therefore liable to pay US $20.9 million.
The Attorney General, can register the judgment using the provisions contained in foreign judgments reciprocal enforcement Act.
Labels: BENNY TETAMASHIMBA, CHILUBA, JONAS SHAKAFUSWA
Read more...
Chiluba is a disgrace - HH
By Nomusa Michelo
Friday May 18, 2007 [04:00]
UNITED Party for National Development (UPND) president Hakainde Hichilema yesterday described Chiluba's thefts as disgraceful and horrifying. Commenting on the London High court judgment in which Chiluba was found liable to pay the Republic of Zambia US $41 million, Hichilema said it was sad that the person who was chosen to be at the top looted the Treasury.
“It is horrifying to see the extent of thieving by those tasked with the responsibility to look after the affairs of the nation. It must sound warning bells to the people that you just don’t chose anybody to be your leader, just because he is from your region and speaks good English,” he said. “You have to chose a leader who can look after your interests. But what we have seen is the person at the top is the one in the forefront of looting the Treasury. It is disgraceful.”
Hichilema said it was shameful that Chiluba even had the audacity to say he did nothing wrong.
“It is not correct for people to allow the Treasury to be ransacked. And he even had the audacity to say there is nothing wrong,” he said.
And Hichilema likened the Chiluba term of office as president to having a monkey in charge of a maize field.
“How can you make monkey a captain of a maize field? You know that a monkey eats maize, so what do you expect.”
Hichilema also said the judgment should serve as a lesson to the Zambian people on the kind of people they chose to lead them.
“What lesson can we learn from this? We can learn how we choose our leaders. We have to check their background,” Hichilema said.
“The politicians hanging around to become presidents were eating from the same pot as Chiluba and today are distancing themselves. What they want is to deceive the people.”
Hichilema commended The Post for the work it was doing in exposing thieving by people entrusted to high office.
And Hichilema, who was on a tour of Kazungula district said the high levels of poverty in the country were disturbingly high.
Hichilema also called on the government to find a solution to Contagious Bovine Pleuro Pneumonia (CBPP) in the Southern and Western provinces as it would have serious economic implications if left unchecked.
Labels: CHILUBA, HAKAINDE HICHILEMA, UPND
Read more...
Nkhata accuses small-scale miners of frustrating govt efforts
By Fridah Zinyama
Friday May 18, 2007 [04:00]
MINISTRY of Mines Permanent Secretary Leonard Nkhata has expressed concern that some small-scale miners are selling their mines to foreign investors. Appearing before the Parliamentary Committee on Economic Issues looking at the legal and policy framework on investment, Nkhata said the move by some small-scale miners to sell their mines was frustrating government’s efforts of empowering the indigenous people.
“Government has reserved ownership of the small-scale mines “artisan mines’ for the people of Zambia but they are either selling them or forming joint ventures with foreigners,” Nkhata said
He said since most Zambians did not have the capacity to invest in big mines, government had made a deliberate policy of selling licences to small mines to locals.
“At the moment we do not have a law stopping such kind of behaviour by the miners,” Nkhata said. “This trend has ended up disadvantaging the miners who form partnerships as they are deprived of profits and cannot progress.”
He said government understood that most miners could not have easy access to finances and that was why a revolving fund had been established for the miners.
“A lot of effort has also been made by government to help finance the small-scale miners who have been complaining of lack of access to finances by setting up the revolving fund for them,” Nkhata said. “The European Union also tried to help the small-scale mining sector by releasing the 16.5 million euros.”
He explained that the miners however could not easily access these funds, which were given to commercial banks by EU because the miners did not have collateral.
And when asked by Mbabala member of parliament Emmanuel Hachipuka what the ministry was doing to improve safety in the mines, Nkhata said the ministry had been seriously under-funded and this had affected their work.
“We want to be more proactive in averting calamities in the mines,” he said. “To this end, we need to have more motor vehicles that will enable our inspectors to move in the different provinces of the country.”
He said last year, the ministry only had four mines inspectors and one vehicle due to lack of adequate funding from government.
“Engineers have left the public for the private sector and we had since put a strong campaign for more funding which will help us employee more personnel and buy vehicles,” Nkhata said.
He said since then, accidents in the mines had reduced from 81 to 18 from 2005 to 2006, respectively.
Labels: MINING
Read more...
Zimbabwe: We're Not About Tractors Per Se: Made
The Herald (Harare)
Published by the government of Zimbabwe
INTERVIEW
3 March 2007
JUST like the initial Development Cabinet that came up with two new ministries that stirred debate among the people, the recent mini-reshuffle came up with another new ministry, Agriculture Engineering and Mechanisation, that has sent tongues wagging. Some have dubbed it a "ministry of tractors" while others believe it is another atomisation of the Agriculture Ministry. The Herald caught up with the head of that ministry, DR JOSEPH MADE, to talk about this and other issues pertaining to his new portfolio.
Dr Made, you are heading a new Ministry of Engineering and Mechanisation, can you briefly tell our readers the scope of your work?
Let me first of all say the Ministry of Agriculture Engineering and Mechanisation, in broad terms, signifies a gap both perceived as well as real that exists. Particularly having successfully dealt with the land issue, land acquisition, land distribution, and now wanting to address the issues of agriculture production and productivity relating to that particular land. That's one side. The second aspect of that land is also the desire to re-organise and to effectively utilise, the communal areas, the communal sector because remember the premise of land reform was also to decongest the communal areas and to replan those communal areas. So that is the premise within which, I think, that we should look at probably the issues of agriculture engineering and mechanisation.
But coming back to the major functions of the ministry, I must say that these functions we are still defining them though: One of the principal issues that we must look at is quickly producing a comprehensive strategy on engineering and mechanisation of agriculture production activities. Here we cannot pretend that we are inventing a new wheel because there is already a certain level of agriculture engineering and mechanisation in our agriculture. But I think we want to give greater emphasis to those activities that are much more focused on modernising the agriculture sector. The aspect is researching, testing, adopting and adapting appropriate agriculture engineering technologies and mechanisation techniques and the development of the agriculture machinery and equipment and tools.
This, I think, is going to be the hallmark, in actual fact, of the new ministry and structures so that we are able to maintain again that course which we are saying is not a question of re-inventing some of the tools, machinery and equipment. I think we want to quickly move into the question of adapting and the question of adoption. If you look at technologies in Europe and Asia, in Central America, even in North America itself, you will see that most of the technology developed on the basis of adopting, on the basis of researching your own ideas.
The third aspect would be the provision of engineering and mechanisation technologies, in land, soil and water conservation. You will note that when we talk of the communal areas, the aspect of land, soil and water conservation is a very critical aspect.
Water conservation can also be dealt with in the sense that you can deal with drainage, to take out water, but you can also deal with conserving the water so that you utilise it for purposes of applying it to the crop, or for purposes of applying it to livestock. The Ministry of Water has dealt with dam construction, but a lot of our dams are suffering from siltation. I am not only referring to the communal areas; I am also referring even to the commercial sector. There are certain conservation works that have got to be carried out from an engineering point of view as well as from a mechanisation point of view.
Relevant Links
Southern Africa
Zimbabwe
Food, Agriculture and Rural Issues
The fourth function is the establishment of an effective, efficient and viable tillage and harvesting programme maybe at this point you might say, now that we are already cropping and so on. We are already preparing for the winter crop, so an effective tillage and harvesting programme will make us achieve a number of issues. If we can be able to harvest our crop, say at crop maturity or at the right time in relationship to the next planting date or the next date of land preparation, I think it will be very critical for us to enhance particularly the timing of our planting.
I think if we come up with a model that will enable the farmer to effectively and efficiently utilise the fuel, the limited fuel that is there, I think that will also be critical. I want to join this point together with the aspect of draught power, remember when we talk of engineering and mechanisation; we are talking of both tractive power, which is animal-drawn, as well as the tractor-drawn implements -- machinery and equipment. So we want to look at both. It is at this particular stage that we even want to reintroduce competitions at ward level, district level and even at provincial level -- to look at tillage.
But a much more serious issue that the ministry will be interested in is the aspect of the private sector. I have already met 17 companies that deal with the acquisition of machinery and equipment that include Zimplow -- who are the largest producer of ox-drawn implements, particularly the plough. Including also those that produce scotch carts for purposes of transportation. To me, what will be very critical are the workings that we are going to have between Government-related institutions and the private sector as it also provides services. We must really come to the table and I must address that exercise. The group, as represented by ADMA, they are busy writing a document -- which is a proposal that we are going to be putting to the RBZ Governor in the short term, we want to work together so that we can see to what extent we can allocate resources so that they are effective in either looking at old machinery and equipment so that we can clean them, we can recondition them.
Zimbabwe: We're Not About Tractors Per Se: Made
(Page 2 of 3)
The fifth aspect that the ministry is going to be dealing with is the establishment of post-harvest handling facilities of all agricultural produce at the farm level. If you look at the areas where we have acquired land, you will find that now, there are crop dryers, which is quite a heavy investment.
We want to revamp these crop dryers so that we are able to harvest a crop when it is, say, at 20 percent moisture, it is already mature for purposes of seed. Even at 34 percent moisture, in terms of maize, it is already mature. So we want to revamp these so that we can see the way we can speed up removing the crop from the fields and have the field ready for the next crop.
Sixth point deals with provision of technical services in some structures. On the farms, I have already mentioned that you talk of infrastructure that will be mainly developed by the Ministry of Water and Infrastructure Development. There are also other infrastructures that will be required by the farmer, from this ministry, from an engineering point of view; we will be looking at that. From a mechanisation point of view, there are certain buildings where you have got to place certain machinery for it to be able to function, either as a storage unit or either as a drying unit, or as a cooling unit.
We will also want to look at the training aspect. The extension provision relating to mechanisation and engineering will be one of the most critical elements. We can have new tractors, combines, but the saying is that machinery can be a write-off and be as old as one minute, why? Because a single mistake in operating some of these machines can permanently damage a brand-new piece of equipment. So training will come in. So these are a few of the functions, but there many more. So you can see this ministry is much more than about tractorisation.
Very extensive indeed, but Minister the Land Reform Programme was premised on rural empowerment, and such empowerment should of necessity be driven by mechanisation. But the majority of the people were disenfranchised for centuries, and thus may not have the resources to afford the technology. How do you hope to get around that?
It's a chicken-and-egg situation. The majority of our people were marginalised and they must access the technology that they may not afford. Maybe the best model at the moment is we should pay fair prices. We would like to see a situation where the farmers are paid fully for the cost of production, and we should capacitate Government institutions so that they charge commercial rates. But I think the most important aspect is that we have to continue debating as we have to introduce a full cost-recovery model. I am looking at the prison farms, for example; they may assist in serving the farmers in a particular area. I will also not shy away from talking about institutions like DDF, I think over the years they have done a commendable job. There are tractors that are coming, we should be satisfied that if we are in a certain region that we said we want to empower, it is empowered. Currently we are going to be taking a census of the machinery that is working and get it to work efficiently, and also act on the equipment that is not working and get it to work. Industry has already indicated their willingness to work with us.
Minister, some white farmers sabotaged equipment and machinery when the farms they held were about to be acquired. Tied to that are the challenges of the brain drain that has robbed Zimbabwe of skilled manpower. How do you hope to get around the problem of rehabilitating the machinery in light of the manpower challenges?
Maybe 20 to 30 percent of the 25 000 tractors in the country are working. Let's talk of the equipment that the farmers put in the barns, we are quickly identifying this equipment, but the major issue is paying compensation for this equipment.
Relevant Links
Southern Africa
Zimbabwe
Food, Agriculture and Rural Issues
I am happy to say that some of the equipment had already been put for disposal. Some of it, of course, will need a large consignment of spare parts. It is important to note that some of the old commercial farmers were not investing in new equipment and machinery, and some of the equipment on the farms is 20 to 25 years old, but they should be commended for having kept it in working order for so long. There are some of them who have realised that the battles for the land reform programme have been won by the Government. Some of these farmers who are no longer farming, we have invited them to provide the services, and we will pay them for that.
Coming now to the issue of engineering, we are going to be working with the Ministry of Youth, Ministry of Education, the universities and the Ministry of Higher and Tertiary Education in the field of engineering. There are two issues that pertain to engineering: The complex aspect of putting up a new piece of equipment.
We must invest in individuals with the skills, first of all, of maintenance -- the applied aspect of technology. Here I think we have a critical mass we can work with. On the manpower side, there is a committee sitting with NEDPP looking at retention of manpower. There are a lot of skilled people on the ground. But we must never lose sight of the importance of training the people who use the equipment, for instance, training drivers, I can assure you we can go a long way. The people we have should be able to work with the equipment if it is to work efficiently. We are having discussions with the UNDP, FAO; we have programmes with Iran, Algeria, China. For the machines that are coming, we attach great importance to proper maintenance. This is why we are sending some of our engineers to these countries to see how the machines are assembled.
Zimbabwe: We're Not About Tractors Per Se: Made
(Page 3 of 3)
Two questions, Minister: We want to mechanise our agricultural sector but without a strong manufacturing base we have to import most of the equipment. Which brings in the question of the foreign currency shortages. How do we reconcile that?
I think we need to be clear on what we mean by mechanisation. It ranges from a simple tool like the hoe that you use to work in your garden, that is the first level. The second level is the level of tractorisation, irrigation development and so forth, that is, really modernising agriculture. For instance, in irrigation we already have equipment like centre pivots, drip irrigation pipes, boom sprays.
When you link it to the land reform programme where the level of mechanisation was clearly only dealing with 15 percent of the land, when you are looking at equipment that is 20 to 25 years old, we must phase it out gradually. And maybe look at a 10-year mechanisation programme, say 1 500 tractors, in the next four years. What becomes critical is that farmers know how to use the equipment efficiently, for instance not using a 110-horsepower tractor drawing a four-wheel trailer to go and pick up labourers. Such a tractor must be effectively used in the fields to generate foreign currency.
There are also aspects of maintenance. If you have a brand new tractor and give it to an untrained driver who does not even know how to check oil, or the number of hours after which it should be taken for service, then that tractor will not last long. We must talk to industry, for instance the 17 companies involved in manufacturing various equipment, among them Farmec, Bain, Zimplow. Several of them have said we want to talk to Government. There are several little things that we take for granted, like calibration of equipment, that impact on productivity.
There are so many Government departments and quasi-Government departments involved in various aspects of agricultural engineering or procurement talk of DDF, IDC, Arex, the Department of Agriculture and even the RBZ. How are you going to relate to them and isn't there duplication of duties?
I want to allay those fears. Agricultural engineering permeates many sectors, Government departments or parastatals; and I see all those entities from a support aspect. There are obviously aspects of agricultural engineering in which we will take a leading role, and others where we will play supporting roles.
Take the Ministry of Science and Technology Development, for instance. It has a leading role in giving us some of the technology used by our farmers; the Ministry of Energy supplies us with fuel. You also have blacksmiths, artisans and manufacturers involved. To me, it all comes down to effective co-ordination and consultation. Our emphasis will be on the farmers' unions.
The question is: Who should we understand effectively? It is the farmer, the new farmer, and the old farmer. We will be requiring, for example, an animal census, and you can only do that when you talk to the Ministry of Agriculture. We should understand the plight of the farmer.
We will be approaching a new season shortly and also looking at winter wheat, the question of draught power. How prepared are we?
Our objective is to carry out a quick survey to establish the state of machinery and equipment, and, secondly, animal-drawn power and implements. We have a programme that is going to be dealing with animal-drawn implements. We are looking to establish a fund.
This week we drew up a document from the 17 companies involved in agriculture implements. We have tractors that are already in place, and we have already had questions in the media and in Parliament as to who will benefit from the tractors. I think they will go a long way in complementing the tillage programme. There is machinery and equipment available for individuals and institutions.
We have tended to rely on rain-fed agriculture. What can the nation expect from your ministry in moving away from this reliance on the benevolence of nature?
Under these circumstances, it sometimes comes down to the way you plough your land, the way you use a reaper, a plough. The way you plough can determine the moisture retention.
You can plough in such a way that you can hold the moisture or get it out of the field. Rain-fed agriculture is a subject that will preoccupy us, and the first stage comes down to the way you prepare your land.
You should do it in such a way that you retain moisture. You will see as we establish our departments that we will be focusing a lot on that. It is also a question of the crops you grow; we have in particular different regions suited to different crops.
Labels: AGRICULTURE, LAND, LAND REFORM, MECHANISATION, TRACTORISATION, ZIMBABWE
Read more...
We are doing it for all of Africa
By Editor
Thursday May 17, 2007 [04:00]
The support and solidarity which our country is receiving in its fight against corruption is highly welcome and well deserved. This is a war which our people cannot win all by themselves. They need the support of all their friends the world over. And it is therefore not wrong to mobilise not only our people but the whole world to help this poor country of ours fight corruption and ensure that its very limited resources are efficiently, effectively and in an orderly manner utilised for the benefit of all its people.
When a nation undertakes a job like the one Zambia has undertaken, when a poor country like Zambia is fighting people who have stolen millions or billions from it, all the possibilities should be foreseen, and the people should know what it is they have to do. What they have to do, above all, is to know that they should never be manipulated by the propaganda and lies of thieves who have stolen from them. The reaction of our people should always be to close their ranks.
When a poor country like ours takes upon its shoulders a job like the one that we have taken upon our shoulders, they must always know what to do. And if we conduct ourselves well, it doesn't matter that we are poor. If we know what to do, we will win because victory always goes to those whose cause is right, to those who know how to uphold their rightful cause, and know how to fight for their rightful cause. We can be sure that if we do what we have to do, we will win, we will triumph over corruption in our country.
So, with the London High Court judgment against Frederick Chiluba and his tandem of thieves in our hands, what remains for us to do is reaffirm that purpose, that purpose of all of us - to continue to fulfil our duty to our country, in whatever we do, in our positions, and to ask that everybody else do the same.
To express our faith in the destiny of our country, our faith in the solidarity of other nations. We shouldn't forget that whatever we are doing here in our fight against corruption, we are fighting for all our sister countries of this continent. We are fighting for all of them because they will learn from our experience. They will learn from the successes that we have, and they will learn even from the errors that we make.
So, our mistakes as well as our successes will be useful to our sister nations. We have faith in the solidarity of many countries in the world and faith in the solidarity of all the peoples of the world.
What we are doing in our fight against corruption is what Africa expects of us. That is what the world expects of us. And we will know how to respond to the friendship and the solidarity that we have received and are continuing to receive.
The joint pledge by Denmark, Ireland, Norway, the Netherlands, Sweden, the United Kingdom and the United States to continue actively supporting our country's fight against corruption is highly welcome. If Chiluba and those opportunists in the political sphere who support him think we are alone in this fight and they can use their criminal deep pockets to destabilise the nation politically or otherwise in order for them to escape liability or being made to account for their thefts, they are deceiving themselves.
With these countries, with these nations supporting our fight, which force on this planet can defeat this very legitimate cause we have undertaken as a nation? With their pledge to help us bring those who have stolen from the people of Zambia to justice, how will Chiluba escape, where will he hide?
It is no wonder Chiluba today is making noises about imperialism because he knows that the whole world is with us against him. Chiluba cannot claim to be a patriot because a patriot never steals from his people, never abuses his people and can never misuse the resources of his country for personal aggrandisement.
It is not surprising that Chiluba's first reaction or instinct to the London judgment is to smear it with the filth of imperialism or racism - however greedy, corrupt he himself may be. The problems Chiluba is facing today have nothing to do with imperialism but his sticky fingers, his greed and vanity.
We hope our people have learnt something from this about the need to have critics in the nation. When we published stories and comments calling Chiluba a thief in 2001, we received a lot of criticism, we were called all sorts of names and the state media was unleashed on us. But today we can see that a society that doesn't take pride in its critics is a human hell where leaders indulge their anarchical instincts without moral compunction. They will siphon the wealth of the land and deposit it in European or other foreign banks and squander it there. We should never allow ourselves to be stuck in a culture of overzealous worship of leaders, a culture which would look primitive in the eyes of our ancestors.
And as the governments of Denmark, Ireland, Norway, Sweden, the Netherlands, the United Kingdom and the United States have correctly observed, it is courageous that the government of Zambia has pursued the case of Chiluba's thefts and obtained a favourable judgment. It deserves credit because this is not an easy undertaking for any individual or government. But things shouldn't end here; there should be no pulling punches.
Chiluba should be pursued to the very end until everything that belongs to the people whom he stole from is given back to the people; until what belongs to Caesar is given back to Caesar. And in this regard, all his benefits should be stopped even if this may call for Parliament to legislate to that effect. There's no way the Zambian people should continue to pay and look after Chiluba after all that he has done to them. As we stated before, the only place where the Zambian people should have an obligation to look after Chiluba is in prison. Outside that, he has lost the right of being looked after by the Zambian people.
We are grateful for the support, financial and otherwise, that our country has received from these countries in its fight against corruption. This fight is just starting; there's still a lot of it going on, and when we are done with Chiluba, we'll have to pursue these others until our country is rid of this scourge that is subjecting our people to unbearable hardships, poverty, disease, ignorance and early deaths.
Labels: CORRUPTION, EDITORIAL
Read more...
I abused my office by placing agriculture first, says Levy
By Brighton Phiri and Joan Chirwa
Thursday May 17, 2007 [04:02]
PRESIDENT Mwanawasa yesterday said that he had abused his office by placing the agriculture sector at the centre stage of development. And President Mwanawasa directed Eastern and Southern African Dairy Association (ESADA) to protect peasant farmers as they promote dairy production on the continent. Speaking during the 3rd African Dairy conference and exhibition at Lusaka's Pamodzi Hotel, President Mwanawasa said agriculture had always been at the back of his mind in his quest to serve the people of Zambia.
"Some several years ago I was asked a question...what portfolio would you like to hold in government? I said minister of agriculture... but I have not been accorded chance to serve that ministry because I was appointed Vice-President. I have abused my office to ensure that I put agriculture at the centre stage," President Mwanawasa told the delegates attending the conference.
He urged ESADA to work hard and ensure that peasant farmers were protected as the continent embarked on increased dairy production.
"I hope your organisation will work hard to ensure that the peasant farmer is protected... it will not do to promote the commercial farmer... to increase the production of milk through the commercial producer and then kill the dairy industry for the small farmer," he said.
"It is important to appreciate the fact that most of our rural people depend on agriculture for a living. Those that are engaged in dairy production should be assisted to adopt better methods of production by applying cheap methods or make it possible for them to access funds. But if you only concentrate on the commercial farmer, I am afraid most governments, most responsible African governments will not support you."
And President Mwanawasa said that Zambia needed to rapidly forge ahead in meeting various challenges in agricultural production.
"Notable among the challenges is the increasing agricultural production to meet the demands of the ever-increasing population as well as to increase agricultural exports," President Mwanawasa said.
He also said that a number of environmental challenges, among them changes in weather patterns such as floods, droughts, as well as outbreaks of livestock diseases, were affecting dairy production in Africa.
President Mwanawasa further said that most African farmers relied heavily on rain-fed pasture and fodder and that traditional practices of raising cattle had led to overgrazing that had resulted into soil erosion.
"It is imperative therefore that we find a long-term solution to these problems in order to make livestock production more sustainable," President Mwanawasa said.
"The dairy sub-sector has an important environmental and economic impact. It is therefore critical that the dairy sector carefully identifies appropriate livestock technologies and prioritise best practices which should be adopted."
President Mwanawasa said that he was happy to learn that ESADA had been working with other partners and governments in the region, and in consultation with the Common Market for Eastern and Southern Africa (COMESA), towards increasing efficiencies through reduction of costs, improving marketing institutions and delivery of farm services.
He further said that the fight against poverty in Africa was hampered by among others poor infrastructure, low levels of innovation, inadequate value addition to primary agricultural commodities and lack of market access.
The ESADA conference has attracted more than 300 delegates from member countries, with the aim of sharing information on economic issues affecting the dairy industry including dairy production, processing and marketing among countries in the region.
Earlier, Parmalat Africa chief executive director Theo Hendrick advised African corporate organisations to stop measuring growth purely on financial performance.
"It is important to look at what each individual company has contributed towards the growth and well-being of the dairy industry in the region," Hendrick said.
He also said that value addition to milk products was crucial for people's health, as raw milk was quite hazardous.
"Consuming raw milk is hazardous to health. All stakeholders should work together in ensuring that milk is processed before it is consumed. For example in Uganda, 90 per cent of milk is consumed in raw form," said Hendrick.
Chairman of ESADA Sandres Nyirenda said that the dairy sector offered the best opportunity in economic development.
"Many countries in the region are pursuing economic reforms and the dairy sector can present good opportunities for enhanced economic growth," Nyirenda said.
"Government and the private sector should work together in developing the dairy sector which mostly comprises of small holder farmers. The partnership will lead to the transformation of the global economy through disease control, management and training in the dairy industry."
Labels: AGRICULTURE, ESADA, MWANAWASA
Read more...
UNIP is a villain in UDA - Charles Banda
By Chibaula Silwamba in Kapoche and Nomusa Michelo in Lusaka
Thursday May 17, 2007 [04:01]
UNIP is a villain in UDA, Kapoche FDD parliamentary candidate Charles Banda has declared. And UNIP parliamentary candidate Levison Mumba said he is not part of the United Democratic Alliance (UDA). Meanwhile, UDA spokesperson Newton Ng'uni has said the alliance is disappointed with UNIP for fielding a parliamentary candidate for the Kapoche despite agreeing on a single candidate.
Reacting to UNIP's decision to sponsor a candidate instead of supporting one candidate under the UDA, Banda said UNIP was in the forefront breaking the alliance. "They should not hide in (FDD president Edith) Nawakwi or anyone, they (UNIP) are villains. They are the ones breaking the alliance," said Banda after filing his nomination for the Kapoche by-elections set for June 5.
"I have filed my nomination on FDD ticket because UNIP refused to sign on my UDA adoption certificate."
He charged that UNIP had brought confusion in the UDA. "UNIP is the one that brought confusion. But this will spell the end of UNIP," said Banda.
But Mumba said he did not know why UNIP picked him as its candidate. "They (UNIP) probably know what they are doing. No comment, all comments must be referred to UNIP Freedom House. I can't speak for UNIP, I have no mandate," said Mumba who once served as minister of health and Msanzala member of parliament. "I'm not part of the UDA because I have no position."
Asked if he had relinquished his membership in UPND, Mumba responded: "No comment."
Ng'uni who is also Forum for Democracy and Development (FDD) national secretary said that FDD decided to field the UDA candidate Charles Banda under the FDD ticket after it became aware that UNIP would field its own candidate.
"We had decided as UDA to field one candidate, but UNIP decided to field their own candidate. If we have to field a candidate under the UDA, there would be two similar symbols," he said. "We don't know why our friends decided to field their own candidate. It is very disappointing."
UNIP on Tuesday fielded former health minister Levison Mumba who was before the day of filing in nominations a member of the UPND. Other contenders for the Kapoche seat are the FDD's Charles Banda, the MMD's Professor Fashion Phiri, the Patriotic Front's Mike Tembo and Sara Zulu from the All People's Congress Party.
Ng'uni expressed confidence that Banda would scoop the seat.
"We will do better than them, we'll do better than all these people hanging around here," he said.
And UPND president Hakainde Hichilema said it was unfortunate that UNIP decided to field their parliamentary candidate when the alliance had already agreed to field a single candidate.
And FDD national youth chairman Levy Ngoma, who is also Sinda member of parliament, said UNIP's decision to adopt a candidate was shameful.
"We want to appeal to the UNIP leadership to realise that the party has been infiltrated by the MMD. UNIP leadership should wake up because the situation on the ground is bad," Ngoma said. "UNIP had agreed to support Charles Banda under the UDA alliance but what has happened today is shameful."
Ngoma also warned the MMD to desist from engaging in malpractices during the campaigns.
"They should not blame our youths for what they will do if they don't stop," said Ngoma.
Meanwhile, Nicholas Banda whose elections as Kapoche member of parliament was nullified by the Lusaka High Court, protested at the district commissioner's office on Tuesday over the MMD's last minute decision to drop him as its candidate in preference to professor Fashion Phiri.
Banda had even started campaigns for re-election. However, Banda and science minister Peter Daka ushered Prof Phiri to file nomination just before the closing time.
Banda later said, "I definitely accept the decision of the party and I will support the party until we get the seat. I don't feel bad, it's ok."
He said the MMD still had other people to stand other than him and expressed optimism that Prof Phiri would be of service to the people of Kapoche.
Asked if he had gotten a motor vehicle loan from Parliament which he could be asked to repay through his eight-month benefits, Banda responded: "I didn't get the loan for a vehicle from Parliament. I was in the process of preparing the papers but I didn't finish."
And Prof Phiri dismissed as rumours the divisions in MMD over his candidate.
"As a party we are one," Prof Phiri said. "As you saw when we were coming, we are very close to each other."
He said if there were serious divisions in the party, Banda would not have accompanied him to the nomination centre.
Labels: MMD, UNIP, UPND
Read more...
Discuss land ownership
By Justin O'Brien, Zambia Land Alliance
Thursday May 17, 2007 [04:00]
We, the
Zambia Land Alliance (ZLA), are writing to commend the May 15 column by Mweelwa Muleya on current status of land ownership in Zambia. Land ownership (or lack thereof for local people) is a serious issue in Zambia and it must be discussed in an open and honest manner. ZLA welcomes this type of public discourse and strongly encourages it to continue.
As the column clearly stated, it would be naïve to say the existing land allocation set-up in Zambia is efficient, transparent and fair to all parties involved.
Therefore, it is the responsibility of the government to balance the needs of local communities as well as the entire country. It is in this respect that the ZLA serves as a network of organisations advocating just land policies and laws that take into account the interests of the poor.
The ZLA “vision” is of a Zambia in which the rural poor have secured access and ownership of land for development.
Land policy in the country has come a long way since the Zambian government’s land reform process initiated in the 1990s, but there is still more work to be done.
http://www.postzambia.com/post-read_article.php?articleId=26673
Chiluba's misdirected attack on KK
By Cuthbert Makondo, Kabwe
Thursday May 17, 2007 [04:04]
Chiluba’s lies are so many that the will to state the truth is completely overpowered by lies. And that is what it is for liars; they must continue lying in order to survive, and eventually lies become too many to be managed. The outcome is obvious- no matter how well engineered a heap of lies is, it finally collapses on top of the liar; the one who produced, blended and incubated it.
The FTJ attempt to imply that comrade KK was allegedly responsible for the loss of $250 m in 1973 is like a drunken man trying to stand and balance on a spinning wheel and expect good results. Just what is his problem? Does he still think Zambians are that dull?
In fact, this is not the time to start accusing the old man. Why has he got to wait 16 years down the line to hint on KK’s alleged corrupt practices? He even got the courage to quote the Bible.
Satan also knows the Bible, and the powers of God. So please FTJ, quotes from the Bible do not at all make anyone repentant, because repentance comes from deep inside; so deep that it makes one’s conscience bleed profusely.
In other words, the realisation for doing wrong triggers true and genuine remorse, and thereafter, behaviour and conduct is positively changed towards the true love for God.
My humble advice: Please FTJ, bring back the $41m or risk losing your benefits, because rest assured, the Zambian people will get their money back by whatever means at their disposal.
As for the President; finding out how much money was stolen by FTJ and his fugitive friends was one problem (Well done!) now, getting back the money will obviously be another. FTJ will not pay back that money. Many of us can see it.
Why can’t he forfeit his benefits to the cost equivalent of the amount stolen, at 5 pin per dollar. Because whether it sounds harsh to our ears or not, the money misappropriated by FTJ, girlfriends and his fugitive rogues is more than what Judge Smith established.
In my opinion, the London High Court figure is but only what can be traced with some form of records.
http://www.postzambia.com/post-read_article.php?articleId=26674
Truthfulness is vital
By Saka Sokontwe
Thursday May 17, 2007 [04:00]
Zambians everywhere must have been dismayed when they listened to and read former president Chiluba’s press briefing over his judgment passed by Judge Smith in the London High Court.
The former president found the judgement dangerous and stated that it might cause a serious breach of peace and security to Zambia. The press briefing was rhetoric to say the least.
His utterances were unreasonable and in many ways difficult to follow. I must say that I had serious problems with Chiluba’s failure to simply state the truth to the people by asking them to read the judgment objectively before they make any comment. Why can’t he have the courage to state his position instead of being insincere and unfair to the people of Zambia.
One of the greatest Christian thinkers of the twentieth century said, “He who attempts to act and do things for others without deepening his own understanding will not have anything to give others”.
What does this mean? Well you cannot change the world until you learn to change yourself. Many of the things we go through are caused by what is going on in our inner, invisible, internal worlds.
If we look honestly into our internal world (personal introspection) we will find that we are often at war with ourselves. We have very bad thoughts about other people. We sometimes tell lies. We are sometimes intolerant.
Chiluba’s in his press briefing had nothing to give to the people of Zambia. Besides there was nothing he said that would have made anyone say he is innocent. On the contrary, his unguarded speech, openly betrayed his unconfessed admission to misappropriation of $41 million. In all fairness, a morally upright and principled man only does things because he decides to do so and in a right way.
Even with evidence so far presented, Chiluba has denied Judge Smith’s judgment as fictitious, accusing him of forming opinion on arriving at a judgment supported by lack of information, facts and evidence. He sees the judgment differently, by portraying a picture that it does not concern him.
The way he is presenting issues regarding the judgment leaves much to be desired.
For instance, dragging people who have nothing to do with the judgement into verbal debates and reminding them how he protected them even after they also stole from the Zambian people will not help him.
To save our poor nation all this wastage (time, money, physical and intellectual energy) it would be prudent for the former president to simply say “I will appear before any court and tell the truth”.
The Bible tells us that among the things that are detestable to God are “a false tongue” and “a false witness that launches forth lies”-Proverbs 6:16-19.
The former president will continue to carry a heavy load, as long as he does not avail himself to the courts of law whether abroad or at home.
Perhaps he will then be judged as a principled and morally upright man who admitted his wrongs and that it was his independent decision to have his private monies deposited in the intelligence account . Let us be truthful with each other.
http://www.postzambia.com/post-read_article.php?articleId=26676
Chiluba faces Armageddon
By Concerned citizen
Thursday May 17, 2007 [04:00]
Chiluba’s despicable attempt to defend his actions regarding the Zamtrop account only went further to affirm that he is indeed a dishonest man and he consciously chose to defraud the nation.
It is clear that Chiluba and his fellow Mafiosi thought they had hatched a clever little scheme that would be beyond detection and intently, with notable diligence went on to commit the “perfect crime”.
They preyed on the relative naivety and passive nature of Zambians and sincerely believed they would never be caught. But as history has so often taught, the law will always catch up with the shrewdest of criminal minds and their scams get exposed.
If Chiluba thinks his recent denial and claims of innocence will save him from impending ruin, he is terribly wrong. More is yet to come. His lawyer friends and co-conspirators from the UK are facing fresh investigations as a result of the high court judgment. The City of London Police and the Serious Fraud Office, a division of Scotland Yard, are investigating the two law firms for handling proceeds of crime.
These investigations will probably reveal even more of the scam Chiluba and his friends initiated. To say Chiluba is in serious trouble is an understatement, as The Post has said before, the former head of state is facing Armageddon.
The way forward for Chiluba is to heed the voices asking him to apologise for harming the nation. To maintain a stance of arrogance is like sneering at the nation and this will not make matters any easier for him. He should show some remorse and express some contrition for the things he has done. That way he might rescue some semblance of a future from the flames of total destruction quickly closing up on him.
http://www.postzambia.com/post-read_article.php?articleId=26677
Well done Masebo!
By Musa Ziba
Thursday May 17, 2007 [04:00] Print Article Email Article
The significant changes that have taken place on the streets of Lusaka are worth noting. The vendors and their merchandise that nearly ‘ over threw’ the city have disappeared.
The streets are now much neater and more pleasant to walk on. Sanity has finally descended on our city. The presence of enforcement officers is everywhere to keep out vices. Honourable Masebo and the team should be commended for the job well done.
You have really shamed your critics. However, a long lasting solution for vendors should be sought urgently, failure to which they will be back on the streets or worse still, rise in crime may be the order of the day.
As President Mwanawasa has pointed out, leaders should not be afraid to make unpopular decisions that will eventually impact positively in our communities.
Time shall vindicate them. As is the writing on Rumphi Enterprises van….., ‘A clean environment is our pride.’ Keep it up Madam Sylvia, and also give a shot to the problem of street children! You have what it takes to solve social issues.
http://www.postzambia.com/post-read_article.php?articleId=26588
We need credible leaders
By Jeff Kalembe
Tuesday May 15, 2007 [04:00]
The ruling by the London High Court has brought to the fore scary issues about the characters of the people involved and those around them.
The case has shown to what extent some of the people who initially inspired a lot of people used their positions to shamelessly and selfishly amass wealth amidst poverty and squalor. What is sickening up to now is the arrogance that they continue to exhibit in the midst of the amount of evidence that has been brought to the fore. They continue to parade themselves as innocent souls who are being unfairly and corruptly tried.
And I cannot agree more with the call being advocated by NGOCC which has been rightly echoed by The Post. We must mount a campaign in earnest to speedily and effectively deal with these people once and for all and not allow them to use their perceived dribbling skills to evade justice.
On the other hand, the PF leader and his party have been caught in this web too. One commercial farmer could not hide his utter shock when a few weeks ago, he spotted Guy Scott hugging FTJ at the airport in line with the position taken by the PF prior to and after elections.
And now Michael Sata has once again shown why a person's past should not be ignored and why a lack of consistency in a character is a dangerous recipe.
It is laughable that someone who so loudly exalted and defended FTJ amidst all the available information can now and in public turn round and say the things he has been quoted to have said. It is annoying and the worst form of mouth corruption.
Sadly, however, there is a good number of people who are "blind" to these dangerous signs and loosely refer to him as "cobra" while ignoring what this symbolises.
The Post and NGOCC have taken the lead. Leaders must start listening to the people and shut up for now Union leaders must listen to the workers, and church leaders must hear what God is telling them to do and offer guidance to all.
The electorate as well should ensure that only credible people are put in positions of leadership.
God bless
Labels: CHILUBA, LAND REFORM, LETTERS
Read more...
KK dismisses Chiluba's allegations as rubbish
By Bivan Saluseki
Wednesday May 16, 2007 [04:00]
Dr Kenneth Kaunda has described as “damn right rubbish” second Republican president Frederick Chiluba’s attacks and allegations of fraud and corrupt practices against him. In an interview yesterday, Dr Kaunda said instead of Chiluba trying to sway Zambians, he should be brave enough to ask for forgiveness from the people he had stolen from.
Dr Kaunda said he did not want to quarrel with Chiluba but had been forced to respond because of the allegations raised against him. "He just wants to say to the outside world, that even Dr Kaunda, the first president, was corrupt. That's damn right rubbish," he said.
"I thank you young people for your exposé, for exposing Chiluba's problem. As always, the truth on which you based these expositions should have made Chiluba apologise to the nation but he is not that type. As to what he has said about me, only the book by Andrew Sardanis...your readers will see what Andrew Sardanis has said."
Dr Kaunda said in one of the cases Chiluba had referred to, he even fired the permanent secretary and that everything that Chiluba was saying was meant to tarnish his image.
"I think that what we do in this case is to say this to the nation; there are important cases coming up relating to Mr Chiluba. Let him attend to those. I don't think I should make a match between him and myself because it's not. Let him face the truth as it has been brought before him both in London and here. He is under charge. Let him face those. Let the truth come out. We hope similar things will happen here at home," he said.
Chiluba in his statement had said he passed the former Presidents Benefits Act of 1993 to cater for the welfare of former heads of state, as Dr Kaunda had not prepared for his and other leaders' retirement. But Dr Kaunda said there was an Act of Parliament which dealt with looking after leaders in his government but Chiluba abolished it immediately he came to power.
Dr Kaunda said Chiluba even started pursuing some of the leaders in the UNIP government, reducing them to beggars and even prosecuting them. "These are people who had nothing else. When we provided something, he destroyed that," he said.
Dr Kaunda said Chiluba brought in officers from the Scotland Yard to investigate him but they found nothing. "The things he talked about, they did not succeed. It's not that we stole. We did not steal. Those who stole, they were dealt with. There was a mechanism. Everybody knew about the projects. Not all projects succeeded. It's not every project that succeeds, but we did not steal," he said.
And on Chiluba's travel allowances, which he claimed were sufficient to build houses and send children to school, Dr Kaunda said Chiluba should not hide in allowances but be brave and ask for forgiveness for stealing.
"It's not correct at all. These allowances, I myself did not even remember getting them. I did not put allowances in my pocket. They were handled by my staff. How much is presidential allowance to build a house? He wants to divert us, poor man!" said Dr Kaunda. He should just be brave and own up and ask for forgiveness."
On Monday, Chiluba requested Dr. Kaunda not to issue unguarded statements designed to heighten emotions over his London judgment.
Chiluba accused Dr Kaunda of fraud and corrupt practices as contained in businessman Andrew Sardanis' book, which according to Chiluba, discusses the loss of US $250 million in 1973 through the abrogation of mining agreements, and ZIMCO bonds issued thereafter.
Chiluba said it was not strange that Dr Kaunda had always joined forces that raised a smear and sustained campaign against him. About two weeks ago, Judge Smith established that Chiluba and others defrauded Zambia a total of US $41 million through the BK Facility and Zamtrop Account in London.
Judge Smith ordered Chiluba and others to pay about 85 per cent of the total sum within 14 days upon service. The London court upheld the claim by the Attorney General of Zambia and found Chiluba and others liable and ordered that defendants compensate or account for a total amount of approximately US $41 million.
Judge Smith established that Chiluba breached his fiduciary duty owed to the country and gave dishonest assistance in the Arms Sale (B.K. Facility) and he was therefore liable to pay US $20.9 million. The Attorney General can register the Judgment using the provisions contained in foreign judgments reciprocal enforcement Act.
Labels: CHILUBA, CORRUPTION, KENNETH KAUNDA
Read more...
Prof Saasa advises govt to move quickly on 'windfall tax' on mines
By Fridah Zinyama
Tuesday May 15, 2007 [08:40]
A Lusaka-based economist, Professor Oliver Saasa has advised government to move quickly over the proposed introduction of 'windfall tax' on mining companies, as timing was critical. Commenting on continued calls for the introduction of windfall taxes on the profits arising from high global mineral prices, Prof Saasa commended the government over its efforts to re-negotiate the development agreements in order for the country to benefit from their resources.
He, however added that quick and decisive action had to be taken over the windfall taxes. Prof Saasa said it would be better to implement the 'windfall taxes' now whilst government was trying to resolve the legal issues in reviewing the current development agreement.
"Government has to be very quick and decisive in how it handles the 'windfall tax' as the windfall prices on the international market might not last for long," he said.
"A windfall tax can be simply defined as a one-off tax levied where some unexpected increase in profits or value is made which the government or the public think is an unreasonable advantage taken at the public's expense."
He said this means that precise action needs to be taken by the government over the issue of windfall tax that different stakeholders in the country have been calling for. "If a peak situation occurs there is need for quick response if one is to benefit from it," Prof Saasa said.
He explained that at the moment, prices on the international market were at their highest and mining companies were benefiting from this windfall but not the local people.
He said the suggestion to introduce a 'windfall tax' was meant to help the people of Zambia to benefit from “this short lived situation” that was currently happening. He said it was an opportunity that should be seized immediately and not be procrastinated over as there was no guarantee how long the high copper prices could last.
"This is why government has to move quickly and engage the mining companies about the windfall taxes as we are not assured about how long the good prices will last," Prof Saasa said.
He emphasised the need for the Zambian government to strike whilst the 'iron was still hot' in order for the people of Zambia to benefit from their resources.
Last week, finance and national planning deputy minister Jonas Shakafuswa said proposals for the introduction of windfall tax on mining companies was a good idea which the government could embrace.
Shakafuswa said implementation of windfall taxes would not be done in the short term since the government had already started re-negotiating new taxes proposed in this year's budget under the current development agreements for mining companies.
Discussions on windfall taxes have been sparked by a proposal made by Lusaka businessman and former chief executive of the defunct Meridian Biao Bank Andrew Sardanis.
Sardanis proposed that the government puts windfall taxes on mining companies in order to maximise benefits from high prices of copper on the international market.
Labels: JONAS SHAKAFUSWA, MINING CONTRACTS, OLIVER SAASA, WINDFALL TAX
Read more...
Pessimism continues over mining agreements
By Kingsley Kaswende
Tuesday May 15, 2007 [08:41]
LUSAKA businessman Mark O'Donnell has said he believes that the lopsided nature of the mining development agreement between the government and Konkola Copper Mines (KCM) will be difficult to re-negotiate. And O'Donnell said the concept of develop agreements entails that government is not doing enough to address the needs of business.
Commenting after he read the development agreement between government and KCM made available to him by The Post, O'Donnell said while it was accepted that there was need to re-negotiate and change some provisions of the agreement, it was unlikely that this would happen before the end of the Stability Period, which ends on December 31, 2009.
"Where there is a failing at the moment is in trying to talk to the mine owners in order to better the agreements that are currently on the table, there is no doubt things they would like changed and at the same time government wants certain things changed. Who is talking to anybody at present? I do not see any negotiations taking place at all," he said.
He said most of the agreements in the agreement were already there in law and were being dealt with by a number of ministries, adding that their restatement only rendered the existing law useless.
He said from the language contained in the agreement, government had no room to change anything.
"What this says to me is that government has entered into an agreement with the KCM shareholders and through this agreement is obliged, in accordance with the law, to do certain things.
The language is very strong and the word "Shall" is used very often. The government shall do this and shall do that. In law the word shall does not allow for any discretion at all, so when it states the government shall, then the government has no option. This agreement the renders all the ministries referred to ineffective as once the agreement is signed they will simply deliver whatever was promised," he said.
The agreement does not even give government room for arbitrary decisions.
Clause 13.2 of part C states: "Government further undertakes that, during the stability period (between November 2004 and December 31, 2009), it shall not by general or special legislation or by administrative measures or decree or by any other action or omission whatsoever vary, amend, cancel or terminate this agreement or the rights and obligations of the parties under this agreement, or cause this agreement or the said rights and agreements to be varied, amended, cancelled or terminated or prevent or hinder performance of this agreement by any other party thereto, provided always that this agreement and the rights and obligations of the parties under this agreement may be varied, amended, cancelled or terminated as expressly provided herein.
Clause 13.4 says government shall ensure (both during and after the stability period) that no law, statute, regulation or enactment shall be passed or made which would discriminate against KCM.
Clause 15 shows how the government tied itself and gave no room for any re-negotiations or changes.
It states that government undertakes that it shall not during the stability period "increase any rates of taxation (whether direct or indirect and including without limitation, corporate income tax or withholding tax) applicable to KCM (or change the basis of calculation which would result in the decrease or increase of deductions, rebates or other allowances available to KCM in computing its liability for such taxes or change the basis of computation of such taxes) from those prevailing at the effective date."
"(Government shall not) increase the royalty rate applicable to KCM or change the basis of computation of royalty from that prevailing at the effective date, in a manner that increases royalty payable by KCM.
"(Government shall not) amend the VAT and corporate taxation regimes applicable to KCM from those prevailing as at the effective date including but not limited to, the rules regarding carry forward losses, in a manner which will result in an increase in taxes payable by KCM.
"(Government shall not) impose new or additional taxes or fiscal imposts including export duties on the conduct of normal operations or increase withholding taxes applicable to KCM and its shareholders on the remittance by KCM of principal, interest, dividends, royalties or management fees above the rate prevailing at the effective date."
But the agreement provides that government will have the ability to
impose new, incidental and one-off levies only when it is to fund programmes relating to public health, education utility or benefit, and provided they do not result in increased cost to KCM beyond US $250,000.
O'Donnell said the mining companies sought such agreements because, in his view, they do not trust government.
"You have to look at their point of view as well. Mining is a long-term venture. You invest today and it will take at least three to four years to produce the first copper. It will then take at least another five to 10 years to recover the investment cost, and it will probably only be in year 10 and beyond that returns are made out of this investment.
Ten years sees two general elections in Zambia and this could mean two completely new governments in that period of time. While the government today is friendly towards investment, the next one may not be. Anybody spending hundreds of millions of dollars is going to want some sort of guarantee and protection. Hence the need, in their view, for these development agreements," O'Donnell said.
He said the fundamental problem was that government was not trusted by large international investors.
And O'Donnell said the develop agreement concept only showed that government was not doing enough to address the needs of business.
"In this case it is a foreign enterprise, but the same applies to local investment. Why are local investors not given the same opportunity to sign development agreements and obtain protection in the same way KCM has done?" he asked.
"All businesses need to be assured that their investment has the best chance of success and in addition, there should be no interference from government officials in the running of the business. This is what is being guaranteed in the development agreement. Why does not this automatically apply to all investment?"
The agreement grants KCM a special tax racket of 25 per cent, the normal rate being 35 per cent.
"If this is good for KCM then it has to be good for all business. Why was the rate not lowered to other businesses?" O'Donnell questioned.
"How this rate of 25 per cent was granted I am not sure, but being that it is a special tax bracket, I thought it would have had to have gone through parliament, which it did not."
On the 16-year carry forward losses granted to KCM by the agreement, O'Donnell said the period was unreasonably long.
"Why should they carry forward for 16 years? I think the law currently allows for losses to e carried forward for only five years, which is also not reasonable. A reasonable period should be seven years. By the look of things KCM will not be paying tax for the foreseeable future. So although the agreement says they will pay tax I think this is unlikely," he said.
The agreement also calls for KCM to be deemed a new mine in order to make allowances for capital expenditure but O'Donnell said this was not acceptable.
"This mine is one of the oldest in the country. Such a clause could have only been agreed to by a person who has no idea of tax law and this clause will have cost the government hundreds of millions of kwacha in tax revenue," he said.
The agreement also allows for KCM not to pay withholding tax, which is normally at 15 per cent.
It also allows KCM to make duty free imports, which, according to O'Donnell, effectively prevents any Zambian business being able to do business with KCM.
"How does a local company that pays tax on everything they import, remain competitive in order to supply KCM? It was wrong to do this and it should have only been done if the same opportunity was given to all companies that supply the mines."
Labels: KCM, MINING CONTRACTS
Read more...