Saturday, January 12, 2008

Distributing mining wealth through taxes

Distributing mining wealth through taxes
By Editor
Saturday January 12, 2008 [03:00]

It is pleasing that the intense debate that has been taking place in Zambia has resulted in a change of policy towards the mining industry in terms of taxes. The question has been: who is benefiting from mining? This question was increasingly being raised in Zambia, a country where the exploitation of mineral resources constitutes a significant element in the national economy.

The nature of the challenge is clear. It is to create a situation in which the Zambian people have a direct share in the wealth produced by exploitation of their mineral riches in a way that translates into improvements in their quality of life and level of wellbeing. This is an appropriate reciprocity for the reduction in natural capital resulting from exploitation of non-renewable resources, an exploitation that can generate significant negative impacts.

And with President Levy Mwanawasa’s announcement of an increase in taxes to be paid by the mining industry, there are two reasons to celebrate. First, that it is the beginning of the end of a regulatory and tax framework for mining that clearly benefits large-scale mining to the detriment of the country. And second, that citizens are now able to impose their views on those who govern and an industry increasingly distant from the concept of great politics in which the public task evolves strategic vision.

As Levy correctly observed, Zambia’s development has been intrinsically connected with mining. The institutional and regulatory model that arose after privatisation of the mines resulted in the arrival of significant foreign capital and an expansion of production. However, this has happened at the cost of ceding to multinational corporations practically all the income from this resource that belongs to the country and its people. Now is the moment to revise these policies. Zambia needs the income from its copper for development and to protect its citizens. The country cannot wait any longer.

Mining uses a non-renewable resource which means that there is an “economic rent” that belongs to all Zambians and which at present is appropriated by the industry. It is this fact that justifies an increase in the royalty and other taxes. In economics there are many theoretical debates but also in some cases a strong consensus, one of which is to charge the “economic rent” corresponding to resources.

In the beginning the government was uncomfortable with altering anything in their agreements with the mining companies. Of course, this is for understandable reasons. The government tried all means to close the subject, claiming that an increase in royalties and other taxes would be a break on investment. But the evident injustice of the mining sector’s level of contribution, and above all common sense, inspired many citizens to agitate for an increase in royalties and other taxes.

Others, just by expressing their opinion, contributed to breaking the wall that had been built to block any discussion of this subject. Finally, in the face of civic opinion and parliamentary pressure, Levy’s government has decided to put forward legislation providing for an increment in the level of royalties and other taxes on mining. By this decision, the existence of company obligation and the legitimate right of Zambia to demand reasonable payment has been acknowledged.

This demonstrates that the state, by constitutional provision, has a dual role as tax collector and owner of resources. As owner of the resource, the Zambian government must charge a reasonable price or fee when authorising a third party to make use of it. In short, natural resources are part of the capital of society and the state has a responsibility to collect a competitive return on that natural capital.

Of course, a great variety of positions had arisen for and against increasing royalties and other taxes on mining. However, what emerges as indisputable is the principle that it is just and necessary for the state, as owner of the minerals, to impose a reasonable charge or compensatory fee for the exploitation of these non-renewable and scarce resources. And it is good that Levy and his government have realised the urgent need to address this deficiency that is generating distortions and inequalities.

This charge is supported not only by our own laws but also by various resolutions and reports of organisations such as the United Nations and the World Bank, according to which the Zambian government, under the principle of sovereignty, can charge what it considers to be reasonable or appropriate for the use of a non-renewable and finite natural resource. Also, as the state is the owner of the resources in the ground, the concessionaire uses them in lieu of the state. So the state, as owner, has the right to a reasonable payment of royalty and other taxes which must be paid by the concessionaire.

Taking into account the current technological advances in the mining industry, it is probable that in less than two decades, mineral ore reserves currently being exploited will be almost exhausted and what remains will have a lower mineral content, which in view of high production costs will make extraction uncompetitive or unprofitable.

When a mine closes, in addition to the environmental impacts, another direct consequence for the population of the area is a substantial loss of income and indirect services due principally to the fact that mining does not generate other enduring local activities or initiatives. We therefore hope that the money that will be collected from increased royalties and other taxes will be allocated to the financing or co-financing of investment in production projects that articulate mining with the economic development of each area in order to ensure the sustainable development of urban and rural areas.

We hope the measures the government has decided to take will help the mining sector’s tax contribution to meaningfully increase and consequently raise the sector’s contribution to the development of the country to higher levels.

Again, these responses by the government demonstrate the need for our people to take a keen interest in all the affairs of their country and put demands on government to do what they think it should do. This also demonstrates the need for a responsive government, a government that favourably addresses the concerns of its people. It is only in this way that meaningful development can come to our country and its people. If not, we may end up with a kind of development that has all sorts of very favourable economic statistics but without, in any meaningful way, lifting the people out of poverty and despair.

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Zambia is not benefiting from mineral revenues, says Levy

Zambia is not benefiting from mineral revenues, says Levy
By Brighton Phiri and Mutuna Chanda
Saturday January 12, 2008 [03:00]

THE government has introduced a windfall tax and a variable profit tax for the country to benefit from its mineral resources. The tax regime, yet to be approved by Parliament, will be designed to work in periods of both high and low prices and for both low and high cost mining projects. The development moves Zambia into the median position in international comparisons at 47 per cent effective tax rate for mineral resources.

Opening the second session of the Tenth National Assembly yesterday, President Mwanawasa announced that the government would swiftly move to introduce a tax regime that would increase its share of mining revenue.

He said in recent years the price of copper on the international market had risen from an average of US$1,714 per tonne in 2001 to US$6,893 per tonne in 2007, an increase of over 400 per cent.

President Mwanawasa said the rise in copper prices made the mining companies to re-coup their initial capital investments and make huge profits in a short period.

"To illustrate the point of the effect of mining companies paying taxes at concessional rates, the companies only paid a paltry US$142 million in company taxes and mineral royalty to the treasury from the total earnings of US$4.7 billion in the 2005 and 2006 financial year," President Mwanawasa said. "If the current prevailing prices and production forecast hold, the mining companies under the development agreements tax regime will earn an estimated income in excess of US$4.0 billion in the 2008/9 financial year while they will only pay an estimated US$301 million in taxes to the treasury."
President Mwanawasa said by international comparisons, Zambia today earned far less from its mining activities than any other mining country in the world.

He said Zambia's average effective tax rate at 31.7 per cent was eight per cent points lower than the next lowest country in the world, Peru which stood at 39.2 per cent. President Mwanawasa said it had been brought to his attention that even if the mining companies were to move to the 2007 tax regime, the country would still not get fair returns on its mineral resources.

"The government, has therefore, decided to introduce a new fiscal and regulatory regime in order to bring about an equitable distribution of the mineral wealth between the partners, namely the government and mining companies," he said.
President Mwanawasa said the new tax regime would introduce a windfall tax and a variable profit tax that had been designed to work in periods of both high and low prices and for both low and high cost mining projects.

"With these measures, the Zambian tax regime still remains competitive and moves Zambia into the median position in international comparisons at 47 per cent effective tax rate," he said.

"Assuming that current prices and production forecasts hold, we anticipate that the country will earn in excess of US$400 million in additional revenues in 2008 when the new fiscal regime is implemented by all the mining companies."

He said when the new tax system was enacted, and assuming that current prices and production forecasts hold, the country would earn an estimated revenue of US$250 million. President Mwanawasa told the House that the government had already prepared all the paper work for the new tax measures.

He said there was no need anymore for special agreements with investors in the mining sector and any other sector of the economy.

"I ask you Honourable members of parliament to support us when we bring legislations to the House for enactment," President Mwanawasa told the House as members of parliament responded in support:"Bring them tomorrow...bring them tomorrow."
President Mwanawasa said as a result of the team's findings, the government had decided to put in place a new fiscal and regulatory framework for the mining sector.

"Many people have expressed concern that the country and indeed the people of Zambia are not getting the maximum benefit from the current high metal prices. This is because the mining companies are paying low taxes based on the concessions in the development agreements signed with the government at the time of investment. As a result, there have been loud calls on the government to renegotiate the agreement," President Mwanawasa said. "Given the history and importance of mining in this country, my administration has examined this matter with extreme caution.

A special team of experts was therefore appointed to study this issue in great detail. Based on the findings of the team, it has been concluded that the development agreements in their current form and in the current circumstances are unfair and unbalanced, and further, the development agreements no longer meet their stated purpose of providing maximum benefits to the Zambian people and an appropriate return to the mining companies."

On governance, President Mwanawasa disclosed that government had established eight pilot integrity committees with a mandate to address corruption and other malpractices in government ministries.

On the Freedom of Information Bill, President Mwanawasa told the House that the government intended to provide safeguards to ensure that increased access to information did not compromise the country's national security and violated people's rights to privacy, before re-introducing the bill to the House this year.

He further told the House that the Zambia National Broadcasting Corporation (ZNBC) board of directors would be in place this year.

On rural electrification, President Mwanawasa said it was unacceptable that access to electricity in rural areas was less than three per cent and yet the majority of Zambians resided in the rural areas.

On telecommunications, President Mwanawasa said the government intended to introduce three bills to the House, (Information and Communications Bill, Postal Services Amendment Bill and the Electronic Communications and Transactions Bill), which would provide the appropriate legal framework in the sector.

Earlier, President Mwanawasa led the House in observing a minute of silence in honour of the late Kanyama Patriotic Front (PF) member of parliament Henry Mtonga.
The House adjourned to next Tuesday.

And commenting on President Mwanawasa's speech, Cuban Ambassador to Zambia Francisco Javier Correa said investors should share the profits in Zambia's mining industry.

"Most Zambians should own mineral resources and get as much profit from them. I fully agree with the President that Zambia should have higher taxes in the mines," Ambassador Correa said. "Foreign investors are always exploitative and are getting as much resources as possible. They can bring technology, yes that is good, but they should share profits."

Ambassador Correa said if the revenues from what would be earned from the mines resulting from President Mwanawasa pronouncements were properly utilised, many Zambians would benefit.

And United Nations resident coordinator Aeneas Chuma said the measures that President Mwanawasa spoke of on the mines were a new initiative of domestic mobilisation of resources which allowed the mines to make reasonable profits.

"Government is desirous of encouraging investment through the measures announced," Chuma said. "It is important to realise that the mining agreements were obsolete and it is important to have a regime that is consistent with international standards."

And Reform Party president Pastor Nevers Mumba said there was need to set up strong regulations to ensure that safety was not compromised.

"Many of the accidents that we've had on the mines are that there's been a compromise on safety," Pastor Mumba said.

Pastor Mumba said corruption needed to be dealt with firmly to ensure that regulations were upheld and further loss of life and productivity were avoided.
And European Commission head of delegation Derek Fee said there was need for the government to emphasize on the private sector over the next few years to achieve job creation.

"It's important for Zambia to increase revenues from the mines and the important thing is get the economic growth to be felt by the people," Ambassador Fee said. "Economic growth will depend on providing jobs so there must be emphasis on the private sector. The President touched on agriculture and tourism and there are jobs in tourism and agriculture and that is where emphasis should be."

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Act on corrupt officials, Hikaumba urges Levy

Act on corrupt officials, Hikaumba urges Levy
By Noel Sichalwe
Saturday January 12, 2008 [03:00]

Zambia Congress of Trade Unions (ZCTU) president Leonard Hikaumba yesterday said President Mwanawasa cannot be complaining about corrupt government officials when he had the power to dismiss them. Hikaumba was commenting on President Mwanawasa's continued complaints about corrupt public officers. He said it was not enough for President Mwanawasa to complain when he had the powers to rectify the situation.

"President Mwanawasa is the only one who has the power to remove corrupt officials from their positions and there should be a follow-up after removing them," Hikaumba said. "If somebody stole, that person should not just be removed but the due process of the law should be followed like in any other case where somebody stole. Such persons must be prosecuted."

Hikaumba, who noted the high levels of corruption in the civil service, said appropriate action has to be taken against those involved.

"They should be tried, if found guilty then they should be punished accordingly. If they are free, the law prescribes that they should continue being free. Now where the problem seems to be emanating from is the fact that year in and year out, the Auditor General's report shows that money was misdirected, money was misused but there is no action taken against them," he said.

He said ZCTU had been encouraging government to punish those involved in misapplication of public resources as a deterrent measure to those who were corrupt.
Hikaumba said the Auditor General's report should be released in good time to ensure that the law enforcement agencies could swiftly act on it.

He said there was need for a strong system of governance that would competently handle the cases of corruption.

Transparency International Zambia (TIZ) president Reuben Lifuka recently said President Levy Mwanawasa should not just complain about corrupt civil servants because the buck stops with him in the fight against corruption.

And Caritas Zambia executive director Sam Mulafulafu said President Mwanawasa could not keep lamenting about corruption in government without taking punitive measures.

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NCC delegates accuse Banda of favouritism

NCC delegates accuse Banda of favouritism
By Mwala Kalaluka and Noel Sichalwe
Saturday January 12, 2008 [03:00]

Some delegates to the National Constitutional Conference (NCC) have accused their chairperson, Chifumu Banda, of favouring lawyers in his selection of speakers during deliberations. And NCC delegates on Thursday night elected the conference’s disciplinary committee in a tightly contested poll. Meanwhile, Mapatizya UPND member of parliament Ackson Sejani cautioned NCC delegates not to give a casual approach to the issue of the two-thirds voting majority as they decide on the conference’s rules and procedures.

Debating proposals contained in the National Constitutional Conference (Procedure) Rules, 2008, one of the delegates complained that Banda had not pointed at him despite raising his hand for a long time.

“Mr Chairperson, I am just asking you to stop favouring lawyers here,” the delegate said.
Another delegate identified as Mumbi complained that Banda was only picking people that were known to make contributions.

She said that not all NCC members were members of parliament, hence the need to allow contributions from even those who were not known.

“We want the chairman to open it up so that as many people as possible can contribute. We want to make contributions so that we can come up with a solid constitution,” she said.

Banda, who accused the delegate of being overgenerous with his comment, said he was striving to be as fair as possible.

Mubita said Pastor Cornelius Matandiko, Sakwiba Sikota and senior chief Imwiko of Lukulu were elected NCC disciplinary committee members. Those that lost the poll for committee members included Major Robbie Chizhyuka, Col Joseph Mweene, Edwin Sakala, Sage Samuwika, Lazarous Chota, and Reverend David Masupa.

Lusaka lawyer Bwalya Chiti went through unopposed as a member of the Legal Practitioners’ Committee, whilst Grace Njapau, Wynter Nalumango and two other females were declared members of the disciplinary committee.

Meanwhile, the conference, which adjourned sine die on Thursday night, took time to discuss Section 48 (3) of the NCC Procedure rules, 2008, which deals with electoral procedures.
Banda allowed the delegates to debate the matter and pledged to give direction on some of the anxieties raised in relation to the issue of two-thirds majority.

The conference wanted to establish what percentage of the membership should constitute a quorum during a division. Section 48 (2) states that: ‘All questions before the conference shall be determined by consensus, but in the absence of consensus, the decisions of the conference shall be determined by a two-thirds majority vote of the members’.

Sejani and Professor Patrick Mvunga proposed that a two-thirds majority should be calculated from the entire membership and not only on those present when a vote is called, as proposed by some delegates.

“The whole success of this conference depends on this particular issue and so we should not give it superficial treatment,” said Sejani. The House ultimately settled for an impossibility that a division should be called by 100 members as opposed to the 36 members proposed by Sikota.

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Govt to revive Mupepetwe Military Factory

Govt to revive Mupepetwe Military Factory
By Mwala Kalaluka
Saturday January 12, 2008 [03:00]

Defence minister George Mpombo said yesterday that a survival plan has been put in place in this year’s budget to revamp production at Mupepetwe Military Factory. And Mozambique has expressed interest to have its officers trained at the Zambia Defence Staff College in line with the objectives of the recently-formed SADC Brigade.

Mpombo said Mupepetwe Military Factory in Serenje was a strategic military facility that could be used to generate sufficient funds for the army. Mupepetwe Military Factory produces bullets apart from other domestic metal appliances such as hammer mills.

Mpombo said the factory was set-up in the 1980s to support operations of the defence forces.

Contributing to a report tabled before the last sitting of the House, some members of parliament accused the government of not using Mupepetwe Military Factory to enhance the country’s economy. Zambezi West UPND member of parliament Charles Kakoma said the bullets manufactured at the facility could be exported.

“Even before the MPs came up with that report, I visited Mupepetwe and I can inform you that we have included a survival plan for Mupepetwe in the budget,” Mpombo said. “Another measure is that we have directed government institutions to buy from Mupepetwe, things that are produced there.”

Mpombo said further that his ministry would soon institute stringent measures to curb the use of military fatigue by criminal elements. “The law is still there and the law acts promptly,” he said. “If we allow the careless use of military fatigue, we are going to promote crime. We want the public to respect military uniforms.”
He said he was constantly receiving reports from members of the public about people using military garb when staging criminal activities.

When reminded that replicas of military attire were being sold openly in shops and markets, Mpombo replied: “I have taken serious note of that and we shall move.” And Mpombo said Zambia was becoming the most preferred training destination for military personnel in the SADC region.

“Mozambique wants to send its military personnel to Zambia on reciprocal basis,” he said.

He also disclosed that there were currently about 500 Zambian defence personnel involved in peace-keeping missions abroad, especially in Sudan’s Darfur region and Eritrea.
“Their performance has been very impressive,” said Mpombo.

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Friday, January 11, 2008

Milupi bemoans 2007 under-expenditure

Milupi bemoans 2007 under-expenditure
By Chiwoyu Sinyangwe
Thursday January 10, 2008 [03:00]

Parliamentary Public Accounts Committee chairperson Charles Milupi has said it is a national scandal for K900 billion from last year’s budget to remain unspent. But deputy accountant general, Joel Mwanza, said the huge amount of money from last year’s budget remained unspent due to the tight fiscal policy reforms the government had embarked on.

In an interview, Milupi said there was no justification for not utilising such a huge amount of money when the government had failed to attend to a number of obligations.

We can’t be ‘patting ourselves on the back’ when about 10 per cent of our budget remains even when we have a lot of development challenges,” Milupi said. “Nine hundred billion is too large to remain unspent. And what that implies is that there is something wrong with our management system or that we are not estimating our budget correctly. Mind you under-expenditure is as bad as over-expenditure.”

Milupi observed that revelations by the Secretary to the Treasury were a clear indication that either the budget planning capacity was not there or that capacity to execute it was missing on the part of the Ministry of Finance and National Planning.

But Mwanza said it was not correct to suggest that the government lacked the capacity to implement its own budget.

He cited some of the reforms as Public Expenditure Management and Financial Accountability (PEMFA) and Integrated Financial Management Information System (IFMIS).

He said officers were afraid of spending money on budgeted projects for fear of the repercussions.

“The situation we have now is that due to the tight and prudent fiscal management policies, the Ministry of Finance and National Planning has started implementing. Controlling officers are now beginning to take a second thought before they get the money meant for their ministries and departments,” Mwanza said.

“Unlike in the past when the officers could get money even when they did not have proper plan for it, so I think we should give credit where due. If you want to say that the government was not doing well because of the huge amount that remained unspent, the question you should be asking yourself is: Which is better; for money to remain unspent or be wasted or get stolen?”

And Civil Society for Poverty Reduction (CSPR) has stated that failure by the government to spend K900 billion from last year’s budget was a threat to achieving pro-poor national developments.

CSPR acting executive director Ivy Mutwale stated that the failure by the government to spend money on much needed social services threatened to throw the country backwards in achieving pro-poor national development through the Fifth National Development Plan (FNDP) and Millennium Development Goals.

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Govt terminates Sable, Basil Reeds contracts

Govt terminates Sable, Basil Reeds contracts
By Mwala Kalaluka
Thursday January 10, 2008 [03:00]

THE government has terminated Sable Contractors and Basil Reeds’ contracts on the controversial Kasama-Luwingu and Choma - Chitongo roads respectively. RDA acting chief executive officer Erasmus Chilundika said in an interview yesterday that the decision to terminate the contracts on the two long-standing road projects was necessitated by the need for cost saving measures in the implementation.

He said the cost for the two projects that were commenced in 2001 and 1998 respectively, were US dollar denominated and as such the terms were not amenable to the prevailing economic situation in the country.

“On the Choma-Chitongo, the contract was signed in about 1998 it’s an old contract and a lot of things have happened, which necessitated the review of that contract,” he said.

“We had a discussion with the (South African) contractor and he was magnanimous enough to acknowledge the fact that the conditions of contract now are not suitable for the implementation of that project.”

He said another reason for the termination and review of the contract was that it had no provision for payment of simple interest in case of delayed payments to the contractor.

“We had to pay compounded interest and that is not very good because you have to pay a lot more money when you delay to pay,” Chilundika said.

“We also have to change the quantities; that is a gravel road, which now has become, probably an earth road.”

He said the RDA had commenced the process to work out a new bidding document for the Chitongo - Choma road.

“We are hoping that within this year, we shall have a contractor of the road,” Chilundika assured. “We were able to pay, out of the budget, about K4.5 billion that we owed the contractor on the previous contract and so we hope that we will be able to start the new works with the remaining balance.”

Choma-Chitongo road was allocated about K18 billion last year.

On the status of the Kasama - Luwingu road, Chilundika said the contract would now be exposed to a competitive bidding process, as demanded by tender procedures.

And the Road Development Agency (RDA) has identified about 11 dangerous spots on the Maamba - Batoka road that need to be worked on urgently before they are completely damaged by heavy rains.

RDA head of public relations Loyce Saili said the dangerous spots would be rehabilitated by Road Construction Company (RCC) with China Geo-Engineering Corporation (CGC).

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Re-advertise contracts, govt directs Kansanshi

Re-advertise contracts, govt directs Kansanshi
By Mwila Chansa in Lusaka and Mulimbi Mulaliki in Solwezi
Friday January 11, 2008 [03:00]

LABOUR minister Ronald Mukuma has directed Kansanshi Mining PLC to re-advertise the contracts to provide catering and cleaning services it awarded to two foreign companies. Briefing the press at his office yesterday, Mukuma said the action taken by Kansanshi was not only inconsistent with the provisions of the Citizens Economic Empowerment Act but also with the spirit of the mining development agreement that the company signed with the government.

“My ministry therefore urges the Kansanshi Mining PLC to revisit their decision to award the contracts to foreign owned companies,” he said.

“The contracts should be re-advertised in Zambia and Zambian owned companies should be re-engaged.”

Mukuma added that the government’s policy of recruitment of foreign labour was restricted to those skills that were not available locally.

He said while the government appreciated Kansanshi’s role in improving the economic landscape in North Western Province, it was not happy that contract jobs that could be done by Zambian companies had been awarded to foreign contractors.

“I wish to inform both local and foreign investors that government’s policy is to promote and encourage effective participation of Zambian citizens in the economic sector. The provision of section 21 of the Citizens Economic Empowerment Act states that specific areas of commerce, trade and industry shall be reserved for Zambians,” Mukuma said.

He added that the government considered the development of large mines such as Kansanshi as an opportunity for Zambians to meaningfully participate in the economy through the mines contracting out their non core business activities to Zambian companies.

Mukuma said in the development agreement signed between Kansanshi and the government, the company undertook to award contracts to local contractors in an effort to promote the quality of goods and services supplied by locals.

He warned that if foreigners were engaged on contracts that could be performed by locals, they would find it hard to secure work permits for their workers because there was local capacity.

Kansanshi Mine contracts manager Franques Lee, in a letter to the Zambian companies that were providing cleaning services to the mine, said the mine would not renew their contracts and have been awarded to another company.

But most of the contractors to the mine whose contracts have been terminated questioned the criteria the mine used in selecting the foreign companies to provide services to the mine.

The contractors disclosed that Kansanshi mine management has given MR Clean, a South African Company, a contract to clean the offices, ablution blocks and the golf estate while another foreign company, Allterian Services Group ATS, had been contracted to run the mine canteen.

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Electoral corruption is Africa's greatest sabotage, says Nevers

Electoral corruption is Africa's greatest sabotage, says Nevers
By Speedwell Mupuchi
Friday January 11, 2008 [03:00]

ELECTORAL corruption is the greatest sabotage Africa faces today, Reform Party president Pastor Nevers Mumba has said. And Pastor Mumba yesterday said without clear policies, strategic institutions, and a constitution that demands accountability, Zambia’s fight against corruption would always only be good rhetoric.

Commenting on the disputed Kenyan elections, Pastor Mumba said Africans were tired of the abuse of their votes. The disputed elections in Kenya saw President Mwai Kibaki being declared winner.

The opposition leader, Raila Odinga, claimed President Kibaki stole his victory.

“We must work to ensure that electoral offenses are heavily punished by completely disqualifying those implicated in vote buying,” Pastor Mumba said.

He said the recent Kenya experience was a big lesson for Africa.

“The permissive electoral processes of Africa will, henceforth, only accelerate violence and rob us of true and lasting development for the continent. As we march towards the 2011 election, Zambia would do well to reflect on the Kenya experience. We can together avoid loss of life by doing our homework now,” he said.

“The days of electoral theft are over in Africa. Zambia is privileged to have the ongoing Constitutional Conference. This is an opportunity to ensure that the electoral act is cleaned up and sealed against abuse.”

Pastor Mumba said Zambia must rise and lead the way in the vicious fight against corruption.

And Pastor Mumba noted that corruption was not a political problem, but a heart problem embedded in selfishness and greed.

Pastor Mumba said Zambia would remain stigmatised by its ranking as number 11 most corrupt country in the world.

“The goal of the government should, therefore, be to change this perception by sustaining an aggressive fight against corruption,” he said.

Pastor Mumba said corruption was in effect a tax usually imposed by the privileged few and usually, affected the most vulnerable members of society.

“A retired lady once narrated her ordeal to me concerning the effect and extent of corruption in Zambia. She has been waiting for her retirement benefits for close to 10 years. Her frequent visits to the Ministry of Finance have yielded no success. Recently a friend of hers advised her on how to obtain her money in record time - to promise the responsible officer a percentage of her benefits.

When she made this offer, the officer demanded that he gets K200,000.00 from every million kwacha she will get. This is 20 per cent tax on the principal! In desperation the lady collected the money minus the 20 per cent ‘tax’ which was pocketed by the public officer.

I asked her why she did not report the officer to higher authorities. Her answer was; “everyone in the department is corrupt, and you will only end up implicating yourself further,” Pastor Mumba narrated.

Pastor Mumba said Zambia could break the shackles of corruption by creating a new environment that was hostile to corruption.

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Chief Ndungu bemoans govt's failure to deliver relief food

Chief Ndungu bemoans govt's failure to deliver relief food
By Mulimbi Mulaliki in Solwezi
Wednesday January 09, 2008 [03:00]

Senior chief Ndungu of Zambezi district has complained about the government’s failure to transport relief food, which is still marooned in Zambezi, meant for his subjects who were affected by floods last year. And North Western Province Permanent Secretary Jeston Mulando urged people in Zambezi to start moving to the upper land as water levels had started rising in the west bank.

In a telephone interview from his palace in Zambezi west bank, chief Ndungu expressed worry that relief food meant for people who were affected by floods last year had not yet been transported since last year.

“The water levels in Zambezi River and in the plains have started to rise and my worry is when is government going to start distributing the relief? I don’t want this situation to repeat itself this year,” he said.

Chief Ndungu named the worst affected places as Chinyama Litapi and Kucheka where people’s crops were submerged in water last year.

He disclosed that Zambezi district was currently experiencing heavy rains which had even damaged a section of the M8 road between Kabompo and Zambezi districts.

He feared this year’s damage might be worse than last year’s.

And Mulando said the relief food in Zambezi had not been distributed because the World Food Programme had not yet released funds to transport it.

“I conquer with senior chief Ndungu’s concern over the failure to transport the relief food, this is not our problem but World Food Programme who should have released funds for transportation have not done so, hence making it difficult for us to transport the food to the outlying areas,” Mulando said.

Mulando said the Disaster Management and Mitigation Unit in the province was ready to assist those who would fall victim to floods.

He urged the people in Zambezi west bank to start moving as the water levels had started rising.

“We have purchased 150 tents which are on standby though we sent 100 tents to Mazabuka to help the victims as they are still awaiting their tents. I am also appealing to the people in Zambezi to move to the high land, they shouldn’t wait to be told to move,” he said.

Mulando also disclosed that the province had relief food for emergency in Kabompo and Zambezi, which could be airlifted to outlying areas in case of any disaster.

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(HERALD) Sanctions cripple NRZ

Sanctions cripple NRZ
Bulawayo Bureau

Illegal sanctions have hit the National Railways of Zimbabwe hard as companies in the West are refusing to supply spares for its broken down equipment. NRZ general manager Retired Air Commodore Mike Karakadzai said the company was also failing to open letters of credit with international financial institutions to access the much needed foreign currency. He said although the West always claimed that the sanctions were targeted at certain political leaders, the sanctions had affected operations at the parastatal and by extension, the ordinary people who used rail services.

Zimbabwe has been under sanctions from the West since 2000 as punishment for embarking on the land reform programme to empower the black majority by taking land from the white minority who owned large expanses of land while the indigenous were squashed on barren land in communal areas.

The land reform programme addressed a century-old imbalance caused by colonial rule.

The United States of America, Britain and their European Union allies claim that the sanctions were aimed at the ruling elite. However, the measures have caused untold suffering for the majority as the country has lost Balance of Payment support resulting in foreign currency shortages.

Rtd Air Comdr Karakadzai said most of the equipment used by the parastatal was bought from western countries and suppliers were now refusing to supply them with spares forcing the parastatal to go through third patties at times.

He said the shortage of foreign currency in the country was adversely affecting operations as most of the NRZ spares were imported.

"Ninety percent of our spares are forex denominated. On a daily basis we consume 100 000 litres of diesel which requires forex.

"We have an arrangement with Noczim and they have done their best but they are meeting a third of our requirements and we have to import the balance to run our trains," he said.

The NRZ has 168 locomotives of which between 83 and 91 were operational last year resulting in a big gap between those in service and those not working.

It also has 10 000 wagons but only 5 000 were available.

To enable the parastatal to move its targeted freight volumes of 8,4 million tonnes, the parastatal needed at least 115 locomotives and 8 000 wagons, Rtd Air Comdr Karakadzai said.

He said the life span of a locomotive was 25 years and another five years could be added through overhauls or refurbishments.

He said NRZ had entered into public-private partnerships with local companies to repair some of the wagons.

He paid tribute to NRZ workers whom he said were coping under extreme conditions.

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LAND RIGHTS

Zambia: Land law is a set-back to the dark ages
The Land Act is causing millions of Zambians to be deprived of land and livelihood without any form of compensation. Its another apartheid, says an outspoken Zambian land activist, in her personal comment to the situation.
By Lucy Sichone

01. October 1998

Colonialism and imperialism were imposed on Africa and Zambia by the introduction and enforcement of a land law that robbed indigenous peoples of their birthright. The land was vested in a Monarch across the seas who in turn gave it away to her (white) subjects by way of title deeds. This system of land tenure was completely alien to the African way of life. The exclusive properties of private ownership were at variance with and destructive of communal and family life as it existed in the colonies.

In fact, the only way in which this land grabbing could be enforced was through the introduction of "pass" laws in various forms. They prohibited the access to traditional lands by the birthright owners and condemned the indigenous people to live in overcrowded "squatter reserves" to which the private land tenure system did not extend.

The colonialists used private titles to benefit only themselves; it was never intended to benefit the owners of the land for development or any other purpose.

Nationalism and the war to reclaim the land were a natural consequence of this forcible deprivation of land.

Pressure from the World Bank

In Zambia, the war to liberate the land from colonialism was not as protracted and violent as say the Mau Mau liberation war in Kenya. This was because Zambia, unlike Kenya or Zimbabwe, was not a settler colony. The then Northern Rhodesia was almost wholly (90 %) reserved for the "natives who continued with the communal system of land tenure based on the place of birth.

The traditional land tenure was protected by law from settlers, investors and speculators by the provision that excluded private title in what were designated native reserves and trust lands or merely reserves and fast lands after independence.

These colonial laws, which reserved land for Zambians, continued in existence after independence up until September 1995. At that time - and against massive resistance from churches, NGO´s, chiefs and ordinary Zambians - a land law was introduced at the behest of the World Bank that set back the Zambian people to the dark ages experienced at the height of the scramble for Africa.

No compensation to displaced Zambians

John Todd, until 1997 the World Bank representative to Zambia, had the arrogance to attempt a defense of the land law on the basis that it was written for Zambia by a Boer, Peter Moll - now a World Bank consultant whose main brief appears to be one of writing the laws that made Apartheid "successful" for three hundred years in banana republics like Zambia.

Hence the main provision of the Act deprives 80 % of the Zambian poor of their inalienable right to land - a birthright guarantee - and vests it in a banana president for purposes of accommodating the second great trek of those who have lost their immoral benefits under apartheid.

Just like under apartheid, Zambians now stand to lose land without compensation.

Zambia’s Investment Center - a creation and stooge of the World Bank - has been negotiating with the so-called South African Farmers Association (all white) t bring into the country hundreds of Boers to build lagers on huge tracts of Zambian land.

Like the original laagers - fortresses built by te first Boer trekkers to protect themselves from hostile natives - the new laagers is displacing millions of Zambians. Especially the 80 % poor are rendered landless peasants, homeless without any form of shelter and without livelihoods to the same extent as existed in Brazil or indeed South Africa. The displaced Zambians are given no compensation.

Titles liquidate entire life style

The Land Act of ´95 has achieved this theft by taking away the traditional title to land by abolishing the protecting laws and vesting the sole ownership of land into the President. In other words titles have not been issued to the chiefs or people living in the villages, so their land is predicated as squatters settlements or merely "vacant".

Thus, although the Land Act has put a monetary value on land, the money paid by the so called investors does not go to compensate, resettle or rehabilitate the villagers. The purchase price is paid to the owner of the entire Zambian land mass - the President.

The requirement of title has deprived access to ownership of land that every Zambian used to enjoy under customary tenure by virtue of birth and regardless of economic or social status.

Furthermore, customary tenure had the objective of communal sharing of land. Land for subsistence farming normally did not exceed 25 hectares per person, and pastoral land was owned by the community for all the members to use. Titles to communal, pastoral lands by an individual is be cost effective, it means the liquidation of an entire way of life, a death sentence for both the people and their livestock.

It is for this reason that Zambians are resisting and indeed fighting the Land Act in the same way that the liberation wars were born, pursued and brought to successful conclusion.

Resistance paid off

300 kilometers south of Lusaka, In Choma, Chief Singanis area of 40.000 hectares (the size of some Western European countries) was privatized. The new Boer owner took possession of the land (with a court order) by the simple act of burning the shelters and harvest of over 400 families who held traditional titles to the land.

The villagers have since "liberated" the land, they have rebuilt their homes and replanted their fields. The investor, in the interest of preserving his life and limb, has gone back to where he came from and put back his land on the market. So far, no one else has shown interest.

Zambians will not wait for 200 years to reclaim their land. It will be done now. The World Bank should take note.

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State-owned companies shouldn't be exempted from competition law

State-owned companies shouldn't be exempted from competition law
By Kabanda Chulu
Friday January 11, 2008 [03:00]

ZAMBIA Competition Commission (ZCC) has submitted draft proposals to government which recommend that state-owned companies should not be exempted from the competition law. ZCC acting executive director Thula Kaira yesterday said the draft proposals would result in amending the 1994 competition and fair trading Act in order to make it more responsive to the challenges facing the Zambian market. He said certain areas in the current Act were not clear hence the commission found it difficult to enforce the law.

“The position currently obtaining whereby the Act states that government must be exempted from the competition law must be stopped because it is not clear to what extent the exemption must be applied to public owned companies especially when these companies are dominant,” Kaira said. “The exemption clause in the Act is not clear, for example, Celtel can be punished for anti-competitive practices but it becomes difficult if similar cases are raised against Zamtel since it is government-owned and must be included in the exemption clause.”

Kaira said there was also need to have a competition and consumer tribunal to be put in place to ensure quick dispensation of cases.

He further noted that the consumer law was not adequate to protect people because it was too fragmented, resulting in higher cost of enforcement.

“Need has arisen to have law covering all sectors in order to ensure full protection for consumers because consumer rights are synonymous with human rights and another challenge is that the commission has no powers to punish offenders administratively through fines and penalties but just recommend to courts of law, which is costly to prosecute hence we are proposing the creation of a tribunal to arbitrate cases in a quick and fair manner,” said Kaira.

The draft proposals were compiled by ZCC together with various stakeholders and have been submitted to the Ministry of Commerce so that the minister can present the bill to parliament for amendments.

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Sampa calls for wider export base

Sampa calls for wider export base
By Florence Bupe

Friday January 11, 2008 [03:00]

FINANCIAL Markets Association president Miles Sampa has said Zambia needs to increase its export base in order to cushion the economy against the impact of the expected weak dollar this year. And Sampa said the expected weak dollar will lead to higher international oil prices, thereby adversely affecting Zambia’s economic growth. In an interview, Sampa said the country needed to enhance trade with countries other than the United States where there were stronger currencies.

“There is already talk of an economic recession in the United States, and this means there will be reduced global productivity,” Sampa explained. “In the short term, this means the US will import less copper, which is our major export, and the effects will eventually trickle down to Zambia.”

Sampa observed that the country was likely to realise less revenue from exports as a result of a weaker dollar on the global scene.
“Once the dollar depreciates, it will mean the country will not be able to earn as much from its exports. In order to mitigate the impact of the weakening dollar on the country’s economy, there is need for the country to increase its export base and reduce reliance on importation,” he said.

Sampa advised that government needed to substitute imports with local products, as well as enhance trade within the region.
And Sampa projected that the weakening of the dollar would lead to further increases in the price of oil on the international market.
The international oil price is currently US $100 per barrel.

Zambia’s main import is oil, which is also essential. The main oil producing region is the Middle East, and if the dollar weakens, the impact on Third World countries will be negative,” he said.
Sampa said the development could also work against a stable inflation rate, as the country would be importing inflation.

The World Bank early this week projected that the dollar would weaken, leading to reduced export revenues and capital inflows for developing countries, and reduce the value of their dollar investments abroad.

The bank stated that the reserves and other cushions that developing countries have built up in the past years might have to absorb unexpected shocks.

Director of the World Bank Development Prospects Group and International Trade Department Uri Dadush warned that the economic growth of developing countries might be slowed down by the dollar trends.

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Nyirongo grabbed land meant for squatters, says senior land official

Nyirongo grabbed land meant for squatters, says senior land official
By Inonge Noyoo
Friday January 11, 2008 [03:00]

A SENIOR Lands officer yesterday told the court that the land which former lands minister, Rev Gladys Nyirongo, fraudulently acquired for herself was intended to accommodate squatters. In his evidence led by Anti-Corruption Commission’s Martin Maembe, Harry Mwewa said the land in question was supposed to be replanned and given to squatters.

He said the two farms were handed over to the state by the Zambia Consolidated Copper Mines (ZCCM) and one of the farms was already being replanned while the other one was awaiting fund approval.

He said that the replanning could not be completed due to a lack of funds.
Mwewa said Rev Nyirongo called a meeting in her office to which he was part and said that she wanted a plot.

“We told her that we did not have land apart from farm 390A former ZCCM which had not been replanned yet. We then referred her to the Ministry of Agriculture and gave her a specific person to see. I made an effort to call Chewe (Junior Technical officer) and told him about the minister’s request,” he said. “I told him to show the minister part of farm 390A and I don’t know what happened thereafter,” he said.
Mwewa said he was later questioned by ACC officers over the plot Rev Nyirongo acquired.

In cross-examination by defence lawyer, Frank Tembo, Mwewa said Rev Nyirongo had indicated that she wanted a farm where she could settle upon retirement.

Rev Nyirongo is charged with two counts of abuse of authority contrary to section 99(1) of the Penal Code chapter 87 of the Laws of Zambia by directing Daisy Mulenga M'soka, a lands officer at the Ministry of Lands, to generate offer letters of the land in Foxdale area.

The letters of offer were given to Walinase Nyirongo, Janet Isaac Nyirongo, Peter Kapolya, Peter Ngulube, Precious Ndlovu, Doris Mulenga, Mubanga Muyunji, Mickey Mukubu, Mwelwa Kamfwa, Bruce Chipasha and Dingwall Hayden in contravention of land alienation procedures, an act which was prejudicial to the interests of the government of Zamb

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State-owned companies shouldn't be exempted from competition law

State-owned companies shouldn't be exempted from competition law
By Kabanda Chulu
Friday January 11, 2008 [03:00]
Sampa calls for wider export base
By Florence Bupe
Friday January 11, 2008 [03:00]

FINANCIAL Markets Association president Miles Sampa has said Zambia needs to increase its export base in order to cushion the economy against the impact of the expected weak dollar this year. And Sampa said the expected weak dollar will lead to higher international oil prices, thereby adversely affecting Zambia’s economic growth. In an interview, Sampa said the country needed to enhance trade with countries other than the United States where there were stronger currencies.

“There is already talk of an economic recession in the United States, and this means there will be reduced global productivity,” Sampa explained. “In the short term, this means the US will import less copper, which is our major export, and the effects will eventually trickle down to Zambia.”

Sampa observed that the country was likely to realise less revenue from exports as a result of a weaker dollar on the global scene.

“Once the dollar depreciates, it will mean the country will not be able to earn as much from its exports. In order to mitigate the impact of the weakening dollar on the country’s economy, there is need for the country to increase its export base and reduce reliance on importation,” he said.

Sampa advised that government needed to substitute imports with local products, as well as enhance trade within the region. And Sampa projected that the weakening of the dollar would lead to further increases in the price of oil on the international market. The international oil price is currently US $100 per barrel.

Zambia’s main import is oil, which is also essential. The main oil producing region is the Middle East, and if the dollar weakens, the impact on Third World countries will be negative,” he said.
Sampa said the development could also work against a stable inflation rate, as the country would be importing inflation.

The World Bank early this week projected that the dollar would weaken, leading to reduced export revenues and capital inflows for developing countries, and reduce the value of their dollar investments abroad.

The bank stated that the reserves and other cushions that developing countries have built up in the past years might have to absorb unexpected shocks.

Director of the World Bank Development Prospects Group and International Trade Department Uri Dadush warned that the economic growth of developing countries might be slowed down by the dollar trends.

ZAMBIA Competition Commission (ZCC) has submitted draft proposals to government which recommend that state-owned companies should not be exempted from the competition law.

ZCC acting executive director Thula Kaira yesterday said the draft proposals would result in amending the 1994 competition and fair trading Act in order to make it more responsive to the challenges facing the Zambian market.

He said certain areas in the current Act were not clear hence the commission found it difficult to enforce the law.

“The position currently obtaining whereby the Act states that government must be exempted from the competition law must be stopped because it is not clear to what extent the exemption must be applied to public owned companies especially when these companies are dominant,” Kaira said. “The exemption clause in the Act is not clear, for example, Celtel can be punished for anti-competitive practices but it becomes difficult if similar cases are raised against Zamtel since it is government-owned and must be included in the exemption clause.”

Kaira said there was also need to have a competition and consumer tribunal to be put in place to ensure quick dispensation of cases.

He further noted that the consumer law was not adequate to protect people because it was too fragmented, resulting in higher cost of enforcement.

“Need has arisen to have law covering all sectors in order to ensure full protection for consumers because consumer rights are synonymous with human rights and another challenge is that the commission has no powers to punish offenders administratively through fines and penalties but just recommend to courts of law, which is costly to prosecute hence we are proposing the creation of a tribunal to arbitrate cases in a quick and fair manner,” said Kaira.

The draft proposals were compiled by ZCC together with various stakeholders and have been submitted to the Ministry of Commerce so that the minister can present the bill to parliament for amendments.

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Maureen has presidential qualities, says minister

Maureen has presidential qualities, says minister
By Maluba Jere
Friday January 11, 2008 [03:00]

NORTHERN Province minister Lameck Chibombamilimo has said first lady Maureen Mwanawasa has the qualities of being Republican president. In a telephone interview on Wednesday, Chibombamilimo said Zambia needed an intelligent and patriotic leader who would put the interest of the nation first, adding that Maureen had such qualities.He said the country and the MMD in particular was not short of credible candidates to lead, adding that such a person did not need to be a financial giant.

“What we want is someone who is intelligent and patriotic; not necessarily a financial giant, but someone with the calibre,” Chibombamilimo said.

“The first lady is one of the hard working people that this country has. I personally have travelled with her and seen that she has love for the people of Zambia and if chance allowed, she would qualify.”

Asked what he thought about some people saying Maureen would make a good president if elected, Chibombamilimo said if that was the will of the people, then there was nothing wrong because she had the necessary qualities.

“But why are you just pointing out the first lady? It is happening in the world and what we need is the calibre so I don’t see anything wrong,” Chibombamilimo said.

“She has all the qualities and she understands issues. So if the Zambian people say they want her, there is no problem. The truth of the matter is that she has the calibre.”

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Sata, explain your dealings with Chiluba!

Sata, explain your dealings with Chiluba!
By Editor
Friday January 11, 2008 [03:00]

It is said that no one feels sorry for a snake charmer or wild animal tamer who gets bitten. This is what one would say about Michael Sata and the crisis that has rocked his political party as a result of his dealings with Frederick Chiluba.

Many people, including some important leaders of Sata’s Patriotic Front, questioned his political relationship with and support for Chiluba. Sata found it wise to defy logic and lead his cadres to receive and dance for Chiluba whenever he travelled to or from South Africa.

In the last elections, Chiluba threw himself behind Sata and most of his corrupt associates, those facing corruption charges with him joined Sata’s campaign. Some were even adopted as parliamentary candidates. We joined in questioning all these activities and the rationale behind but we were singled out and made to look like we just hate Chiluba. For us it simply became another case of every creature preferring its own kind, and people being no different.

Just as animals of the same species flock together, so people keep company with people like themselves. A corrupt politician has no more in common with a clean politician than a wolf has with a lamb. An honest politician has no more in common with a crooked politician than a hyena has with a dog. Honest people hunt down corrupt elements just as lions hunt down wild donkeys in the open country.

At that time Sata’s political fortunes were really rising, were at their peak. And when things are going well, it is hard to tell who your real friends are, but in hard times you can recognise your enemies; even your friends will leave you then. But when you are successful, your enemies will act like friends. Never trust an enemy; his wickedness is as destructive as rust. Watch out, and be on guard against him, even if he acts ever so humble. He is like a metal mirror that rusts away if you don’t keep it polished. Seat an enemy at your right hand, and the next thing you know, he will be trying to get your own place of honour. Put him next to you, and he will overthrow you. Then you will realise the truth of our words, and be stung with regret when you remember them.

An enemy will stay with you for a while, but not when trouble comes. He will speak fine words while he plots how to trap you. He will pretend to share your sorrows, but he will kill you if he gets a chance. If trouble comes your way, you will find him waiting, ready to trip you while he pretends to help you. He will be a different person then, rubbing his hands, nodding his head, and spreading rumours about you.

If you touch tar, it will stick to you, and if you keep company with thieves or crooked people, you will come to be just like them. Don’t try to lift something too heavy for you, and don’t keep company with people who are crooked, who are corrupt – criminals. You cannot keep a clay pot next to an iron kettle; the pot will break if it hits the kettle. A crooked man will use you as long as he can profit from it, but when you need him, he will leave you helpless.

He will live with you as long as you have something and will gladly drain you dry. If he needs you, he will trick you with his smiles and cheerful, kindly words. “Do you need anything?” he will ask. He will feed you until you are embarrassed. Finally, when he has drained you two or three times over, he will laugh at you. If you see him later, he will pretend he doesn’t know you, and will pass you by.
Be careful not to be misled; you can be enjoying yourself and suddenly find yourself humiliated.

This is the way what has happened to Sata, what Chiluba has done to Sata can be explained. Wicked people are always hungry for evil; they have no mercy on anyone; they walk a crooked path. And sometimes it takes a painful experience to come to know and accept who they are. Sata is getting his baptism.

It is not right to favour crooked characters and keep honest people from receiving justice. Those who are good travel a road that avoids evil; so watch where you are going – it may save your life.

Chiluba will never change his ways – that’s what he is. People talk about forgiveness. Yes, there should be forgiveness but it should be on the basis that one has changed his ways and is repentant. One can easily distinguish the mistakes of an honest man from those of a crook. No one can pretend that Comrade KK’s rule was perfect, was faultless. He made many mistakes, some of them very big and serious. But these were clearly mistakes of an honest man that cannot be compared to those of Chiluba which were clearly deeds of a dishonest person. The mistakes of an honest man are open to correction whereas the deeds of a crook are his way of life that cannot be corrected easily.

But why did Sata decide to team up with Chiluba and his tandem of thieves? It is not difficult to guess why. He must have thought there were benefits to be derived from such a marriage – even if it is of convenience.

The crooked elements had the money. Therefore, it was assumed that they could easily use it to win him political support and elections. And they nearly succeeded but they didn’t succeed. Now it has even gotten to their heads and it’s making them think what they nearly achieved for Sata they can do for themselves. They believe they are very popular. That’s why they can even talk about the nonsense of Chiluba coming back to contest the 2011 elections.

Again, this is what happens when principles are lost. This is what happens when values are abandoned. This is the result when crookedness, deceit and corruption are allowed to dominate a country’s politics. This should be a wake-up call to all Zambians to open their eyes and see that which needs to be seen so that they can stop that which needs to be stopped.

Tomorrow may be too late even though it is said there is honour among thieves, among crooks. Let us ask ourselves what type of Zambia we want for ourselves, our children and their children, and their children’s children. Do we want a Zambia that operates or is governed by the standards set or dictated by crooks, corrupt elements, scoundrels, jackals, hyenas and scorpions? Well, it is said that at the end of the day we reap what we sow. If we want politics and a government of crooks, we should never expect honest politics and clean dealings in the nation; we should expect corruption to be the order of the day.

It would be interesting for Sata to explain to the nation, to the Zambian people why he went into a political marriage with Chiluba – a person who is facing very serious criminal charges and there is a judgment in London of him stealing public funds, a judgment Sata once said he recognises. What was in it for Sata? He needs to tell the nation the truth about all these things before he can be trusted again and voted for. Otherwise, Sata should be trashed and sent to the garbage dump together with Chiluba.

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Thursday, January 10, 2008

SA firm to re-open Kabwe mine

SA firm to re-open Kabwe mine
By Fridah Zinyama
Thursday January 10, 2008 [03:00]

ZCCM Investment Holdings (ZCCM-IH) executive director Joseph Chikolwa has said South Africa's Alberg Mining and Exploration is to re-open Kabwe zinc and lead mine. Chikolwa said unlisted Alberg Mining and Exploration would have the task of re-starting Kabwe zinc and lead mine, one of the oldest mines in Zambia, which was abruptly shut in 1994 due to poor management and a lack of capital.

"We have written to Alberg advising them of the offer to re-open Kabwe mine and we are waiting for their response, which should include the timing for negotiations," Chikolwa said.

He however said the financial details of the deal had not yet been finalised.
"Alberg Mining was chosen ahead of Congo Border Resources, Ilifa Commodities Ltd, Leopard Exploration & Mining and Pochy Mining Ltd," Chikolwa said.

Alberg Mining had expressed interest in 2007, to re-open the three shafts to mine lead and zinc in Kabwe.

Chikolwa said the value of the mine and its assets would be subject to negotiations.

"Of course it will have to take into account the value of assets to be sold and provision for environmental liabilities in case of default," Chikolwa said.

He said ZCCM-IH would retain a minimum stake of 20 per cent in the mine once Alberg Mining resumed lead and zinc production.

Chikolwa said the ZCCM-IH would ensure Alberg Mining followed its guidelines on mining lead and zinc, after global environmental campaigners Blacksmith Institute listed Kabwe as one of the world's 10 most polluted towns, blaming the local mine named after the town.

Lead poisoning has left thousands of people in Kabwe, especially children, with high lead content in their blood.

Chikolwa said the ZCCM-IH had developed guidelines for environmental rehabilitation for the new developer as a precaution to avoid future lead contamination.

"We will diligently follow up their actions through monitoring on the ground and our presence or representation at board of director level. We also expect the developer to prepare an environmental management plan to deal with future environmental issues that will be acceptable to us," Chikolwa said.

Alberg Mining said last year that it also planned to produce 12,000 tonnes of blister copper per year after constructing a processing plant at Kabwe through its Zambian subsidiary, Silver Lining Ventures Ltd.

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Government embarks on quality control project

Government embarks on quality control project
By Agness Changala
Thursday January 10, 2008 [03:00]

THE government will next month launch a project to improve the quality of goods and services in the country to meet international standards. Ministry of Commerce, Trade and Industry director of foreign trade Dorothy Tembo yesterday said funding and technical assistance from various cooperating partners had been sought.

“We are receiving support from European Union Development Fund (EUDF) and from United Nations Industrial Development Organisation (UNIDO) to embark on this project that will help to improve the quality of goods and services in order to meet international standards,” she said.

Tembo said the ministry was also working hand-in-hand with the Zambia Bureau of Standards (ZABS) to help it purchase equipment needed to do their assessment programme for the quality of goods in as far as meeting the international standards was concerned.

She expressed happiness at the progress the country had made so far in meeting international standards for the goods the country was already exporting.

“I must say I’m happy because we are meeting the required standards for the goods being exported so far,” Tembo said.

She said trade in Zambia was doing well but the cost of doing business was very high due to the country’s landlocked nature.

Tembo said this was hampering business because it took a long time to move trucks from one point to the other.

“You may find that because of the route being lengthy and complicated, the driver has to take a lot of days away from the family and this requires that these people are paid some allowances which are costly on our part because the more one delays the more money we pay them,” she said.

Tembo said the situation was slowly being addressed to ensure that little time was spent on transportation.

“Because of these problems, we have signed a Memorandum of Understanding (MoU) between Zambia and Zimbabwe called One Stop Border Post (OSBP) which will allow for quick clearance on the boarders,” said Tembo.

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Blame it on Levy

Blame it on Levy
By Editor
Thursday January 10, 2008 [03:00]

Although no single individual can assume the role of Messiah, President Levy Mwanawasa has to take full charge and responsibility for the fight against corruption. As President of the Republic, it is Levy's responsibility to ensure that government business is conducted in an efficient, effective and orderly manner. It is also his job to ensure that public resources are as far as possible utilised or used in an accountable way and to the maximum benefit of our people.

It is the President's duty to ensure that there are adequate controls over the use of public funds and other resources. And to achieve this, he must ensure that honest and competent people are appointed to government jobs.

When things don't go well, when public funds are misused, abused or stolen, it is him who ultimately should be answerable.

Answerable in the sense that it is him who should ensure that there are adequate and effective controls in place that make it easier to detect and bring to book corrupt elements within the government and state systems. If he fails to come up with systems that secure public funds and resources, then he should be considered a failure in his job and be fired by his employers, the Zambian people.

And similarly, before he is fired those he has appointed to be controlling officers and other responsibilities who have failed to deliver should go before he goes.

For instance, if the Inspector General of Police fails to play a meaningful and positive role, to do his part in curbing the theft of public resources, then he should be fired by the president. We are not saying that the current Inspector General of Police, Ephraim Mateyo, should be fired because there's still a lot of corruption in government.

Actually this man has done exceptionally well. Since his appointment as Inspector General of Police, crime in the country has really gone down. Maybe what is needed is to see in which way he can help in the fight against corruption.

What we are saying is that if those appointed to manage the Anti-Corruption Commission and help curb corruption are failing to deliver, Levy should fire them and replace them with more competent people. And if those running the Drug Enforcement Commission are failing to curb money laundering and other similar or related crimes, they should be fired.

This also applies to the Secretary to the Cabinet, permanent secretaries and their directors who as controlling officers fail to stop the stealing, misuse, mismanagement or abuse of public funds and other resources. If as controlling officers they are failing to do their job, what does it profit the people of Zambia to keep them in these jobs?

We say this because there is no way Levy can meaningfully deliver on his obligations, duties and promises to the Zambian people if public funds are being stolen, mismanaged, misapplied, misused or abused. And of what use or value will Levy be to the Zambian people if he can't deliver on his duties as President of the Republic. It shouldn't be forgotten that there is nothing which makes people more appreciative of a government than that it should be able to deliver services.

But the question is: how can a government deliver services to the people when the money that is supposed to be used to procure these services is being stolen by corrupt officials?

Clearly, Levy's job is not an easy one; it is one which demands a lot of thinking, creativity or innovation. This means we cannot continue to run public affairs with the same system, the same internal controls that were designed for a very small and simple government of 1964.

Things must change. The ways in which we will achieve our goals are bound by context, changing with circumstances even while remaining steadfast in our commitment to our vision. Belief in the possibility of change and renewal is perhaps one of the defining characteristics of governance and politics.

Trying to curb or eradicate corruption will never be a small fight; it will always be a big and very complicated fight; it's actually a war. And like any other war, it needs strong, committed, resolute and intelligent leadership that can inspire the whole population to rise to the challenge.

And like in any other war, there is need for mobilisation of all the forces that hate corruption, that don't benefit from corruption. But hating or not benefiting from corruption does not automatically make one enlist as a soldier in this war; they have to be mobilised.

And this mobilisation requires political leadership and that leadership has to be provided by Levy himself. We are not talking about political will to fight corruption; here, we are talking about political leadership to fight corruption. Of course where there's a will, there's a way - but that way to be travelled needs people to be mobilised to do so.

There's also need for a political leadership that can effectively and efficiently agitate against corruption. This also has to be provided by Levy. And like in any other war, political education is of great importance. Again, this has to be provided by Levy. If he fails on these issues, the fight against corruption will not go far and very little will be achieved.

It is for these reasons that we agree with those who are saying the buck stops with Levy. But this is not to say Levy alone can single-handedly wipe out corruption from the face of our country. He can't; it's not possible for him to do so.

But he can help us win this fight, win this war by providing the right leadership, by mobilising us, educating us and agitating us to take up arms and enlist as soldiers in this noble war. If he fails to do this, the failure to curb corruption should be blamed on him.

After all, it is his government, his political party and members of parliament that are supposed to pass appropriate laws to help fight corruption; it is his government and officials that are supposed to execute these laws in the fight against corruption; and as head of state, it is him who appoints judges and allocates resources to the judiciary to ensure that it does its job efficiently. So the failure in our fight against corruption should be to a very large extent blamed on him.

He can blame whosoever he wants, whosoever he appointed, but as far as the Zambian people are concerned the primary responsibility lies with him.

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Lifuka urges Levy to lead corruption fight

Lifuka urges Levy to lead corruption fight
By Noel Sichalwe
Thursday January 10, 2008 [03:01]

TRANSPARENCY International Zambia (TIZ) president Reuben Lifuka yesterday said President Levy Mwanawasa should not just be complaining about corrupt civil servants because the buck stops with him in the fight against corruption. And Caritas Zambia executive director Sam Mulafulafu has said President Mwanawasa could not keep lamenting about corruption in government without taking punitive measures.

The duo was commenting on President Mwanawasa's continued complaints about corrupt public officers.

Lifuka said as an appointing authority, President Mwanawasa had the power to appoint and dismiss Cabinet ministers and permanent secretaries.

"The buck really stops at President Mwanawasa's desk," Lifuka said. "For example, if you have controlling officers whose ministry keep coming up in the Auditor General's report, then there is a problem with the President. He should be the final person to take leadership.

The President is in a privileged position to fight corruption and take leadership. So he cannot, therefore, complain of the high levels of corruption in government because he is the head of government to do something about it."

Lifuka said President Mwanawasa needed to come up with a comprehensive action plan in the fight against corruption. He said if President Mwanawasa would continue complaining about corruption in the government six years after he started, it would mean that he had failed.

He said President Mwanawasa appeared to have failed to inspire the public domain to fight with him because of his inconsistency over the years.

Lifuka said President Mwanawasa's fight against corruption now appeared to be mere political rhetoric without substantive action. And Mulafulafu said President Mwanawasa has been complaining for a long time about corrupt civil servants without concrete sanctions against such erring individuals.

He said it was not just enough to complain against corrupt government officials but that the government needed to take punitive action to save public resources from being stolen.

"It is not just enough to keep lamenting about corrupt officials but action should be taken against such individuals. He (President Mwanawasa) needs to impose punitive measures," Mulafulafu said.

"What I am basically saying is that the fight against corruption should go beyond lamenting. There has been more lamentation but very little action except where we have seen public outcry. We want to see real action."

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Simbao is incompetent says Katotobwe

Simbao is incompetent says Katotobwe
By Sandra Mulowa
Thursday January 10, 2008 [03:00]

TOMORROW Investments Limited director Augustine Katotobwe has charged that works and supply minister Kapembwa Simbao is incompetent. During a press briefing yesterday, Katotobwe said that his company had never received complaints from government regarding the quality of work on all completed projects handed over to government. He said that it was extremely sad that Simbao had directed the National Council for Construction (NCC) not to renew his company’s registration.

“I would want to put it on record that our minister of works and supply is incompetent and the challenges of the construction sector and the dynamics involved in them are beyond his comprehension and cannot guide the nation," he said.

Katotobwe said his company had been working on seven clinics in Central, Northern and Luapula, three of which were in constituencies of cabinet ministers Felix Mutati, George Kunda and Simbao but had stalled since 2005. He said Simbao had to date not complained of shoddy works over the stalled clinic in his backyard.

He called for fair play in the construction sector.

“He should not issue statements that are prejudicial in nature which are targeted at influencing the investigations," he said.

Katotobwe said according to the press President Mwanawasa said submission should be made to the Auditor General.

"What the works and supply minister should do is to make submissions to the Auditor General. We are also waiting to be approached to make submissions to the Auditor General and to let her do her independent analysis of the all issue," Katotobwe said.

He said Simbao had inspected Shangombo hospital but never made any statement related to shoddy works after he inspected the project.

"The minister is on TV saying NCC will not renew our registration, we as Tomorrow Investments must be found guilty, the process of the law must be allowed to take its course… We should not be judged ahead of schedule,” he said.

Katotobwe explained that some projects had stalled because conditions of the contracts had not been followed.

He said in 2003 former Republican vice-president Nevers Mumba during a tour of roads in Luapula complained about abandoned works and that he would suspend the contracts but it was discovered that government had not paid for the works.

He said a few days later the money was paid and works were completed.

He said the Ministry of Works and Supply should not interfere in investigations by the Auditor General. He said he was confident that the truth would come out and his company would be vindicated.

Katotobwe also said he had written to President Mwanawasa. Meanwhile, Katotobwe said he would go ahead to submit the registration of his company with the NCC.

"We are not shaken and won't be intimidated by works and supply minister," he said.

He also said that Zambian companies did not have the capacity to start and finish projects without being paid. Katotobwe said delays had been in the processing of the payments.

Addressing the press on Tuesday, Simbao said all contractors with a record of shoddy works would have the same fate as Tomorrow Investment.

At a public rally in Mfuwe on Saturday President Mwanawasa said he found several projects throughout the country which Tomorrow Investments had failed to finish or abandoned despite being paid up front.

“When this information reached my office I wrote to Marina Nsingo who was minister of works and yourself Simbao that from now on don’t give contracts to Tomorrow Investments but I get surprised that they continue to get contracts.

The thing is that they are thieves, they award contracts to their friends and share money,” President Mwanawasa said. “Our people are saying the government is not working. You have mentioned huge figures of money which we are going to spend on the roads but projects are not finished just because companies like Tomorrow Investments are given jobs.”

President Mwanawasa said he had powers under Article 33 of the Constitution which he would use to deal with such situations.

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Simbao warns contractors

Simbao warns contractors
By Mwala Kalaluka
Thursday January 10, 2008 [03:00]

WORKS and supply minister Kapembwa Simbao has declared that days of begging and pleading with contractors on the proper implementation of developmental projects are over. Addressing a press briefing on Tuesday, where he announced Tomorrow Investments’ deregistration, Simbao said the relationship between contractors and his ministry would be anchored on quality works and nothing else.

“I did say that 2008 will be a different year. In 2007, I kept on pleading with people, I kept on begging with contractors because I thought we should get to know each other. I am sure they have come to know me and they have come to know what everyone in this ministry stands for,” he said.

“It will not be a question of knowing each other as friends, or money or anything like that. It will just be the quality of the road and buildings that the contractor has made.”

Simbao said this time around, contractors would have to explain how they have utilised development funds.

He said the Ministry of Works and Supply would only tolerate contractors that undertake works that were acceptable to the users.
“The users are the final determiners of whether that road is good or bad, not the contractor or the consultant. No!” Simbao said.

“I have said that 2008- Action, if you do not perform we will take action and action will be to blacklist you or to deregister you. Tomorrow Investments, in serious terms, is not the first one.”

He said other contractors with a poor history of performance would suffer the same fate as Tomorrow Investments’.

Stakeholders in the construction industry on Monday held a meeting to discuss the possible ‘deregistration’ of Tomorrow Investments’ following a string of uncompleted projects in some parts of the country.

The Auditor General’s office has pledged to conclude investigations into the allegations levelled against Tomorrow Investments by Friday and the National Council for Construction (NCC) has already submitted its recommendations on the issue to the investigators. NCC has been directed not to renew the contractor’s registration.

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Magande is qualified to be president, says Munkombwe

Magande is qualified to be president, says Munkombwe
By Bivan Saluseki
Thursday January 10, 2008 [03:01]

SOUTHERN Province MMD chairman, Daniel Munkombwe, yesterday said finance minister, Ng'andu Magande, was clean and qualified to succeed President Levy Mwanawasa. Munkombwe said Magande was among a clique of good people being talked about for presidency. "He is one of the people who is clean. He is qualified in all departments. He will relate to a number of good people being talked about," he said.

Munkombwe said people should, however, not be discouraged from expressing their interest and his comments should not discourage anybody. "There are a lot of people. It is a question of who will eventually win," he said.

Munkombwe said Magande was just good in most areas. Munkombwe said he did not want to talk about party secretary general, Katele Kalumba's bid for presidency and compare him with Magande.

"I don't want to commit myself to that. All I can say is he Magande is among the good people who will add to the number of other people. So far the best way is to wait," said Munkombwe.

Magande's name is being prominently mentioned among those likely to succeed President Mwanawasa.

On Monday, Magande said he would wait for President Mwanawasa as 'captain' to choose his successor for the 2011 general elections.

Asked on reports linking him to people making manoeuvres to succeed President Mwanawasa, an evasive Magande said President Mwanawasa as 'captain' had asked people not to talk about the issue but instead concentrate on development.

"The President says he will take part. It is only the President as the captain who will make his choice. I will wait until the President chooses," he said.

Asked if he wanted the presidency since his name was prominent among MMD members likely to replace President Mwanawasa, Magande said he was for now concentrating on this year's budget and development work because there was a lot of time before 2011.

Last week, finance deputy minister, Jonas Shakafuswa, said Magande was one of the potential MMD presidential candidates because he was a capable leader.

"I can mention Hon Magande. We have discussed it with Magande over his presidency. A lot of politicians' agenda is to distract; they have no agenda. We need capable people," Shakafuswa said.

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Zambia needs to explore other forms of energy, says Prof Sinkala

Zambia needs to explore other forms of energy, says Prof Sinkala
By Kabanda Chulu
Thursday January 10, 2008 [03:00]

BIOFUELS Association of Zambia chairman Professor Thomson Sinkala has said the country needs to explore other forms of energy because world oil resources were getting towards extinction.

And Aquagro Limited managing director Viswanath Shankar yesterday said Zambia must seriously embark on biofuel production in order to reduce costs related to the importation of crude oil.

During demonstrations by the Young Energy Specialists, YES- Africa at Arcades in Lusaka on how a Leyland DAF truck engine was running on biofuel, Prof Sinkala said Zambia needed to be self-sufficient and embark on full-time production of biofuel.

“This truck we are seeing is from South Africa and its engine is running on oil extracted from rape vegetable seeds, actually it is this self-sufficiency that Zambia must follow because global oil resources are getting towards zero hence the need to explore other forms of energy on a largescale production,” said Prof Sinkala.

And Shankar said embarking on large-scale production of biofuel would help to mitigate costs related to importation of crude oil.

He said cultivation of non-food crops such as jatropha would also uplift the livelihoods of villagers since they would have other sources of income.

“There is need to embark on fully fledged biofuel production in order to reduce costs related to the importation of crude oil and other factors are that biofuel is renewable and environmentally friendly,” Shankar said. “

And once people in the village embarks on jatropha cultivation, there livelihoods will definitely change since they will have alternative sources of income.”

Shankar said Aquagro has in stock various equipment with engines that could be operated on biofuels.

The YES-Africa initiative was founded in 2000 by Arjan Doeswijk and Mark van den Bosch with the objective of promoting the use of jatropha nuts that could be processed into biofuel.

The YES-Africa team has embarked on a mission from South Africa to Djibouti with intentions of planting one million jatropha trees.

“The objective of YES-Africa is setting up and promoting networks of energy specialists in developing countries and this initiative is helping African people help themselves, not by taking over responsibility, but by working together and sharing vision, success and failure, actually jatropha gives people a strong means of generating income and reducing poverty,” said van den Bosch.

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Wednesday, January 09, 2008

Magande justifies unspent money at end of financial year

Magande justifies unspent money at end of financial year
By Chibaula Silwamba in Mfuwe
Wednesday January 09, 2008 [03:00]

FINANCE minister Ng’andu Magande has said government’s good budgeting system has led to the country having unspent money at the end of the financial year compared to the past when there were frequent budget overruns. Recently some Zambians condemned the government over its failure to spend huge amounts of money on development projects. This was after Secretary to the Treasury Evans Chibiliti revealed that K900 billion in last year’s budget had not been spent by the end of 2007 due to long tender procedures.

Addressing a rally at Chiutika Basic School on Saturday, Magande said at the time the Mwanawasa government came to power there were serious economic problems which the government had improved on.

“When President Levy Mwanawasa took over office, most of you had a different vocabulary. Those who knew about budgeting, your vocabulary was budget overrun. Those who have issues of foreign exchange, you were saying kwacha is useless.

Those who knew a lot of economics, you were saying Zambia is Highly Indebted Poor Country (HIPC),” Magande observed. “But Mwanawasa said this vocabulary is not suitable for our country. We decided to change the vocabulary from all these bad words.”

He said because of the guidance of President Mwanawasa, Zambia was no longer a HIPC country.

“Because of the programme your budget now has no overrun; we even end up with some money at the end of the year because we have not completed the tendering procedures,” Magande said. “Instead of a kwacha depreciating uncontrollably now the kwacha is very strong and stable.”

He said the good economy had boosted the confidence of foreign investors and lenders.

“There are many foreign companies that have come to invest in Zambia. They have found that because of our good economic management, they come to this country or we go to their banks and they can lend us money or give us grants,” Magande said. “With this situation, all I can urge all of you is that we must continue to work hard.”

He said in order to ensure that any money the government gets from tax payers or cooperating partners was properly used, the government had formulated the Fifth National Development Plan.

“For the first time in nearly 20 years, we have a development plan,” said Magande. “We want you to be interested in the development plan so that you know what your government wants to do for you. In order for you to understand the FNDP we translated it in local languages.”

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Govt to probe Puta's Congo trip

Govt to probe Puta's Congo trip
By Sandra Mulowa
Wednesday January 09, 2008 [03:00]

Mines minister Dr Kalombo Mwansa yesterday said the government would investigate senior chief Puta's trip to Congo to find out what Democratic Republic of Congo Katanga governor Moses Katumbi discussed and agreed with him concerning mining rights in his chiefdom.

Commenting on revelations that Katumbi last month sent a plane to ferry chief Puta to Lubumbashi to discuss with him mining agreements in Chiengi district, Mwansa said the government would have to find out what the duo discussed because mining licences are held in the name of the President.

Mwansa said he was aware that chief Puta of the Bwile people in Luapula Province had travelled to the DRC to meet with Katumbi because of the chief’s admission.

“I am aware he travelled to Congo, he admitted himself. But I have no idea what they discussed,” Mwansa said. “We will have to find out what they discussed. Government is not aware of what they discussed. If anything in Zambia, the licences are in the name of the President.”

Mwansa said the administration of mines was run by the government.

“We are interested in what they discussed and agreed because the administration of mines is run by government,” Mwansa said.

On why no government official accompanied chief Puta to the DRC considering that the DRC side was represented by a mines minister, Mwansa said: “I don’t know why there was no minister (from Zambia). I think the arrangement was between the two. Send me a query and I will answer all your questions.”

Sources on Monday revealed that Katumbi invited chief Puta to discuss exclusive mining investment rights in his chiefdom by DRC’s Anvil Mining Company, which is believed to be owned by Katumbi.

Chief Puta confirmed having gone to DRC to meet with Katumbi and said he had gone there for Anvil Mining Company.

“I followed Anvil Mining. I don’t want to comment on that but I went there because Anvil has been given a very big area by government, government sold it to Anvil. My interest was to stop them from working here (Chiengi). Anvil has taken a big part already in Kapulo, Kasama and Pweto in Congo,” said chief Puta.

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