Category Archives: News

What Chamber of Mines of Zambia Has To Say On VAT rule 18

Chamber of Mines Logo

September, 2014

History

The Zambian mining Industry was in private hands for just over 40 years from the late 1920’s.  During this period consistent investment in Exploration, Mine development, Mining and processing facilities construction resulted in copper production going from almost zero to over 750,000 tonnes with 64,000direct jobs being created.  The Mining industry was nationalised in 1972/73 and remained in State hands for 24 years.  At the end of this period annual copper production levels came down to around 250,000 tonnes and employment levels had reduced to 22,000 jobs.

The mining industry was privatised. The process spanned a period of three years from 1997 to 2000.  Between 2000 and 2014, the new investors had invested over 10 billion US Dollars in the Mining Industry for Exploration, Mine and processing facilities development, refurbishment of dilapidated mining and processing facilities.  This resulted in deepening of mine shafts, extension of open pits, sinking of new mine shafts, starting new green field integrated mining projects, construction of modern environmentally friendly processing facilities and opening up of new mining frontiers away from the traditional Copperbelt of Zambia into the North Western province.This has resulted in copper production levels reachingover 760 000tonnes in 2013 and the projection for 2014 is 800,000 tonnes with over 90,000 direct jobs being secured/created.

Zambian Mining Industry contribution to the treasury

According to the ICMM (International Council on Mining and Metals) report quoting submissions from the Zambia Revenue authority, between the periods 1997 to 2006, the total contribution of the Mining Industry as a percentage of all tax collections by ZRA was averaging around 5%.  As the investments started maturing the levels started increasing progressively until the percentage reached a high of 44% in 2011 and slightly dropped to 32% in 2012.  Mineral royalties and company tax make up the bulky of the mineral taxes.  Table below shows the detailed data from the ICMM report.

Mining Contribution to Govt

The latest EITI report shows that mining revenue in 2011 nearly doubled to Kw7.7 bn compared to Kw3.7bn revenue collected in 2010. This represented over 30% contribution to Government revenue in the year under consideration.In addition to the increase in revenue, the EITI report has shown a decrease in the discrepancy between mining company payments and Government receipts. The net discrepancies were ZMW 12 billion in 2008; ZMW 31.4 million in 2009 and 8.8 million in 2010.

Comparing Zambian Overall Mining Tax Rate to other Mining Jurisdictions

According to Wood Mackenzie (An international, energy, metals and mining research consultancy group that supplies comprehensive data, written analysis and consultancy advice) Zambia’s overall effective tax rate on Mining companies is about 45% as shown in the graph below.  This is one of the highest tax rates in the world.  Even our neighbours DRC have a much lower rate at 25%. This is a major deciding factor for Foreign Direct Investment decisions.

 Changing Mining Policies

 Audits done on the Mining Companies.

Various statutory audits are done on the Mines.  Firstly by independent internationally recognised accounting firms which audit the books of accounts.  ZRA conduct annual and ad hoc audits on the mines and these look at mine to metal production and revenue streams thereto.  Additional audits are conducted by the Office of the Auditor General on Government agencies which are overseers of Mining operations such as Ministry of Mines, Energy and Water development Mines Safety Department, Geological survey and Zambia Environmental Management Agency.

Furthermore in order to show transparency and accountability in the extraction of Zambia’s natural resources, The Chamber of Mines joined the Zambia Extractive Industries Transparency Initiative, ZEITI in 2008, and in 2012, Zambia was declared EITI compliant. Being declared EITI compliant implies that Zambia has put in place effective processes for enhancing transparency and accountability in the mining sector.

In addition to all these audits, ZRA in early 2013 set up the Mineral Value Chain Monitoring Project.  The project was responsible for carrying out an independent assessment and verification of the levels of production in the entire mining industry in Zambia and for reviewing, developing and implementing a mechanism for monitoring the exports of these minerals.  All the mining companies fully supported this initiative and cooperated with the whole exercise.  The findings of this high level audit have not been shared with the Mining companies so that any gaps found can be addressed.

 The Mining Investment cycle

In the Mining business, Exploration is a prerequisite and this can take 5 to 10 year (without a guarantee of finding something) , Mine development another 5 to 10 years, Construction of Mine infrastructure and processing facilities another 5 to 10 years and closure anything from 2 to 20 years depending on the project environmental activities.  This is a long time and requires a stable investment climate with fiscal policies which are clear, competitive and stable.See graph below.

ILLUSTRATION OF A TYPICAL PRODUCTION PROFILE

 ILLUSTRATION OF A TYPICAL PRODUCTION PROFILE

VAT rule 18

This Rule was introduced in 1997 and was meant to encourage exporters. By allowing an exporter to reclaim input from value-addition, the Rule would reduce the exporter’s costs and in turn make the product more competitive on international markets. Mining companies that export their products to the international metal markets must meet the following requirements before a claim of the VAT is refunded by ZRA.

  1. Copies of export documents for the goods, bearing a certificate of shipment provided by the Authority;
  2. Copies of import documents for the goods, bearing a certificate of importation into the country of destination provided by the customs authority for the country;
  3. Tax invoices for the goods exported;
  4. Proof of payment by the Customer for the goods;
  5. Documentary evidence proving that payment for the goods has been made by the customer into the exporter’s bank account in Zambia; and
  6. Such other documentary evidence as the authorized officer may reasonably require”

It is the requirement that proof of arrival of the exported commodities in the receiving country is made which is impractical.  Almost all the metal sales into the international market is to trading houses which are multinational.  Products once received by the traders can be split, can change hands several times and may even be changed into different products before reaching the final point of consumption.  It is impossible for the seller/exporter to track the products and obtain documentation from the receiving customs jurisdiction to confirm that the products did reach that destination or destinations.

Impact of failure to resolve the outstanding issue on VAT rule 18 on the Mining companies

The non-payment of the withheld VAT refunds have had and continue to have a major adverse impact on the operations of the Mining companies.  Cash flows are seriously constrained and to keep operations going the following undesirable actions have had to be taken:

  1. Suspension of capital projects,
  2. Deferment of capital projects,
  3. Cancellation of capital projects,
  4. Slowing down of production levels,
  5. Provision for bad debt
  6. Payments to suppliers pushed back by 90 days or more
  7. Reduction on CSR programs. Some programs have had to be suspended,

The effects of these actions are already being felt and in the medium to long term, there will be a negative impact on:

  • Mine production,
  • Production costs,
  • Jobs (Direct, indirect and induced)
  • Suppliers of goods and services to the mining industry will have no business,
  • Overall reduced revenue collection by ZRA

The way forward

Our sincere appeal is that VAT rule 18 be looked at urgently and resolved and the VAT refunds made to all exporters so that we can continue to progress on the path of increasing mining and manufacturing production to sustain and continue to create jobs.  The Zambian Mining Industry will continue to be the Engine of the Zambian economy for a long time to come.  This industry needs to be nurtured so that we continue to generate revenues required to diverse our economy.

Nigerian Pastor Ayo Oritsejafor implicated in the $9.3 Cash saga. He ownes a Bombardier Challenger 601 aircraft

KADUNA –President of the Christian Association of Nigeria, CAN, Pastor Ayo Oritsejafor, yesterday for the first time spoke on the controversial $9.3m cash allegedly smuggled into South Africa by two Nigerians and an Israeli using his private jet. The money which has been confiscated by a South African court was meant for the purchase of arms for the Nigerian Intelligence Services. This is just as the #BringBackOurGirls# campaign group, has said it will soon drag the CAN president and the Federal Government to court over the money.

Following the use of his aircraft to convey the money which was not declared in South Africa until immigration officials discovered it, the CAN president was linked to the arms deal with critics condemning his role in the arms deal.

Explaining his own side of the story yesterday, at an emergency meeting of the expanded National Executive Council, NEC, of CAN in Abuja, Pastor Oritsejafor denied any involvement or knowledge of the deal to buy arms in South Africa, noting that enemies of Christians were fuelling the division of CAN.

He said: “The media has been awash in the past few days about an unfortunate incident involving the movement of funds from Nigeria to South Africa. In the unfortunate news reports, attempts have been made to link me directly with the transaction. So far I have refrained from making any direct public statement pending the time that I would have briefed the leaders of the church and explained my position on the issues to them.

“I believe that the primary institution that I owe any explanation to is the church. Permit me to thank everyone who stood by me these past days by ways of prayers, as well as strongly defending me even though I have not undertaken any public defence of myself.

“I am particularly appreciative of the valuable support of the Catholic Church in refuting a distorted news item by mischievous elements in the media. I wish to assure you that I will not do anything to tarnish the image of Jesus Christ or compromise the divine standard of the Church.

The aircraft is mine — CAN president

“At the risk of being seen to be defending myself, I wish to confirm to the distinguished leaders of the church that the Bombardier Challenger 601 aircraft in question is mine.

“The aircraft was presented to me as a gift by members of our congregation and ministry partners world wide at the 40th anniversary of my call into the ministry. May I be permitted to stress that the aircraft was not given to me by the President of Nigeria, neither was it a settlement for any political favour or patronage.

“With the benefit of hindsight, the President of the country was a guest in our church during the anniversary celebration when the Jet was presented to me and this has been construed to imply that it was a gift from the President of the country.

“The President of Nigeria has nothing to do with the gift of the aircraft. By the way, I still wonder why all those saying this, still cannot come out to show proof so that the matter can be put to rest once and for all. Let me say that this might be an issue of the court in the near future.

“In order to ameliorate the cost of maintenance of the aircraft, I sought and got permit to allow the aircraft fly in and out of Nigeria.

“Based on this, I leased the aircraft on August 2, 2014 to a company to run it. It was the leasee that entered into an agreement with the people who carried out the transfer of funds. Having leased the aircraft to the Green Coast Produce Company Limited, any transaction undertaken with the aircraft can no longer be attached to me.

War against the Church

“In as much as I am shocked and distressed by the incident, I wish to appeal to Christians in Nigeria to remember that a war has been waged against the Nigerian Church. This war is being fought on many fronts and this unfortunate incident is another dimension in the assault against the Church.

“It is clear that those who manipulated this conspiracy desire to create a schism in the Church. The media hype and the deliberate distortion of information that followed it confirmed that forces that desperately desire to cause division and disunity in the Church are at work. Even the devil knows that a house that is divided cannot stand.

“As Christians, we need unity in the Church now more than ever. We are witnessing inhuman attacks by religious extremists against Christians in the northern part of the country while Christian infrastructure is being destroyed in hundreds.

“If we permit the enemy to divide us, our chances of corporate survival shall be severely threatened.

“Distinguished leaders of the Church, please permit me to state clearly before God and before all of you here present today, I am not a party to the movement of $9.3 million from Nigeria to South Africa to purchase arms and ammunition. I am not part of the deal. I know nothing about it.

“Let me make a passionate appeal to our heads of blocks, heads of denominations and Christian leaders at different levels and spheres of influence to please use your good offices to caution and control your subordinates and followers from making public statements that will further polarise the Church and strengthen the arms of the enemies of the church.

“If I offend you or you offend me, instead of talking to media, let us talk to each other within the house of God.”

#BringBackOurGirls# threatens to sue

Meanwhile, the #BringBackOurGirls# campaign group, at its sit-out, yesterday, in Abuja called for more public outcry over the $9.3 million cash found in Pastor Oritsejafor’s private jet in South Africa, saying it has concluded arrangement to sue the CAN president and the Federal Government over it.

According to the group: “We need more pressure more than ever; this is tax payers money, we must speak up any time an injustice is done especially when it is about infiltration of arms because that is what brought us here. There is need for a louder cry about this because quietly people are forgetting about the $9.3 million, it will continue if we don’t do anything.

“By next week you will have something different, we are working with our lawyers to sue Pastor Ayo Oritsejafor and the Federal Government.”

Also, the House of Representatives Committee on Rules and Business has said that the Publicity Secretary of the All Progressives Congress, APC, Lai Mohammed must have acted out of ignorance for saying that the Deputy Speaker, Emeka Ihedioha was biased in his ruling over the controversial $9.3million arms deal motion.

Briefing House of Representatives correspondents at the weekend, chairman of the committee, Albert Sam-Tsokwa said “it is glaring that the APC publicity secretary was not conversant with our House rules when he said the Deputy Speaker manipulated the proceedings on the motion bordering on the $9.3m arms deal in South Africa.

“The DS acted as a patriotic Nigerian as he considered the interest of Nigerians above any political lineage following our House standing Orders to the letter.

“The motion in question was an investigative one seeking investigation into the alleged arms deal in South Africa which does not need any debate as this might jeopardise the proposed investigation”.

Vanguard recalls that in the wake of the arms deal, the matter came up in the form of a motion on the floor of the House last Tuesday, but Ihedioha, who presided over plenary that day, did not allow debate on the motion, citing ‘national security.’ He later called for a voice vote and majority of the lawmakers voted against it.

This development did not go down well with some lawmakers, most of whom are of the opposition All Progressives Congress ,APC, who staged a walk out from the floor immediately Ihedioha ruled.

The motion, sponsored by Deputy Minority Leader Abdulrahman Kawu Sulaiman,APC, Kano sought for a thorough investigation into the matter.

But Tsokwa argued at the briefing that what Ihedioha did was in line with the relevant rules of the House, which do not allow debate on matters relating to infrastructure, security and investigation.

He explained that “the House is precluded from discussing any issue that is pending in court. Our rules also say motions on infrastructure, security and investigation are not to be debated. The motion on $9.3 million seeks an investigation, so it shouldn’t, couldn’t and mustn’t have been debated. That was exactly what happened,” Tsokwa said.

Tsokwa further stressed that “the mover wasn’t supposed to take it that day, because it wasn’t on the Order Paper. He insisted on taking it because he said he was away on the Speaker’s errand. But any matter that is not on the Notice Paper can’t be included on the Order Paper. Some members were against taking the motion, but the Deputy Speaker allowed him.”

The Taraba state lawmaker explained that going by parliamentary rules, if any member is not satisfied with a particular decision taken, such a member would call for the House to be divided based on the ‘ayes’ and the ‘nays,’ saying walking out was not appropriate.

“The decision wasn’t taken on the basis of party. It wasn’t all APC members that voted against it and vice-versa”, he said.

Matrix of Creating Employment in Zambia

Unemployment is one of the most serious problems facing Zambia today. The Labour Force Survey (LFS) of 2008 reviewed that unemployment stands at 15.9 percent. This data needs to be updated to reflect the current true picture of the problem. However, the numerous youth roaming about in the streets, offices and everywhere looking for employment shows the desperation for employment.

The desperation for employment lead to nine people, including a nine months old baby, who were crushed to death, while six others sustained serious injuries during a stampede in Mpulungu at Great Lakes Products (GLP) after word went round that the proprietor Sahran Salim was in town to employ casuals workers. This happened in May of 2012.

For the purpose of this paper it is good to define some terminologies which will be used in further discussions. The term “Unemployment” is defined as a situation where anyone of working age is not able to get a job but would like to be in full time employment.

On the other hand the term “Employment” is attributed to an individual who works part-time or full-time under a contract, whether oral or written, express or implied, and has recognized rights and duties

Another terminology used on this subject is “Underemployment” which is the condition whereby people in a labor force are employed at less than full-time or regular jobs or at jobs inadequate with respect to their training or economic needs. The flip side of underemployment is “Voluntary unemployment”, this occurs when the unemployed choose not to take the employment offered because it is a wrong job or benefits are too high or other such reasons. Such people are still counted as unemployed because they are still seeking a job (they just don’t want to take one they are offered).

We also have to classify people working in the informal sector such as home businesses, street vending, cross-border trading, agriculture, and many other such businesses. Such people cannot be counted among the employed but they are simply occupied. On the other side of this we have the un-occupied who are literally doing nothing and not actively looking for jobs. 

It must be mentioned that unemployment crisis is not unique to Zambia but rather it is a global issue.

Unemployment arises from factors beyond the control of the individual worker. Unemployment may be due to seasonal layoffs for instance in agricultural jobs, technological changes in industry (particularly by increased automation), racial discrimination, lack of adequate skills by the worker, or fluctuations in the economy.

Poverty 1

Lusaka Peri-urban

The target group which deserves special mention consists of young people and women, who constitute the bulk of the unemployed in Zambia. For instance, according to reports, about 73 per cent of Zambians between 18 and 35 are unemployed. There is also an increase in unemployment among university graduates in the country. This is due to several reasons   including changes in societal goals and aspirations. Increased education is encouraged by changes in government policy, such as the introduction of such laudable programmes as free, universal primary schooling which is among the millennium development goals (MDGS), which results in an increase in secondary school enrollments. This in turn leads to a proliferation of universities. While the aim is to accommodate as many qualified students as possible there is often inadequate planning for the future employment of graduates.  This could perhaps explain why urban areas have higher rates of unemployment than rural areas as most of these graduates opt to stay in the cities rather than return to their indigenous areas.

PovertyHence unemployment as a problem has hindered the country’s development economically, socially, psychologically, politically and culturally. Economically, unemployment has led to an increase in poverty levels in the country. According to a Survey research, during the 2006 to 2010 period, it was reviewed that poverty levels stood around 62%. Common knowledge still indicates that poverty levels in Zambia are still high especially in rural and peri-urban areas. Youth and women seem to be the most affected.

Street vending is also one effect of unemployment. This is because people from rural areas tend to migrate to urban areas in order to make a living from trading various commodities to consumers. In as much as this helps them economically, the benefits are very minimal as the earnings they acquire are not enough to sustain their needs.

venda

Street Vending

To make matters worse, relevant authorities seem to be overwhelmed by the problem that they have lost control on street vending.

At a social level, prolonged unemployment usually results in some form of social pathology, as reflected by an increased crime rate and violent agitators. It breeds discontent against the state, and any slight provocative issue or incident may trigger violent demonstrations and social unrest, which may result in loss of life and damage to property, if the situation is not handled properly by the authorities.

The destruction of family life and is another social consequence of unemployment. Unemployment reduces the social status and self-esteem of an individual. It causes scarcity of money for household maintenance and other essentials of life, including payment of the children’s school fees. This usually results in constant family feuds and friction, with the wife demanding money for food and housekeeping, which the unemployed husband cannot provide. Nagging and incessant quarrels ensue, and sometimes also wife battering, when the unemployed husband vents his frustration on the defenceless wife. This may result in a divorce if the situation does not improve, leading to a broken home and its dire future consequences for the children.

GBV

Gender Based Violence

Research dating back to the Great Depression found that men who experienced substantial financial loss became more irritable, tense, and explosive. This can therefore be witnessed in the country’s continuous rise in Gender based violence (GBV) cases. Children also often suffer as these fathers become more punitive and arbitrary in their parenting. This can be seen in Zambia today where cases of child defilement have continued to rise with almost each week recording such cases.  

Intoxicated

Intoxicated youth

Unemployment may even impact decisions about marriage and divorce. Unemployed or poor men are less likely to marry and more likely to divorce than men who are employed or who are more economically secure. Here again this can be observed from the high divorce rates that have characterised the country. According to reports, the increase in divorce rates can be linked to GBV which is in some cases a result of unemployment as earlier alluded to.

In an attempt to escape from the hopelessness of the situation, the unemployed may indulge in excessive consumption of alcohol, usually the cheap local brew with its potential health repercussions; especially for the liver but also for physical health in general. The stake may eventually be raised to include drug abuse, and in order to sustain the habit, the unemployed may engage in petty crime such as pick pocketing, stealing or, in the case of females, prostitution.

Prostitutes

Psychologically unemployment has Individual and family consequences. This is because job losses are associated with elevated rates of mental and physical health problems, increase in mortality rates, and detrimental changes in family relationships and in the psychological well-being of spouses and children. Compared to stably employed workers, those who have lost their jobs have significantly poorer mental health, lower life satisfaction, less marital or family satisfaction, and poorer subjective physical health. Additionally studies by psychologists have shown that unemployment is associated with depression, anxiety, psychosomatic symptoms, low subjective well-being, and poor self-esteem. Therefore unemployed workers were twice as likely as their employed counterparts to experience psychological problems.

Unemployment can also contribute to reduced life expectancy. For instance according to a development review in 2005, Zambia has one of the lowest life expectancy rates as maternal mortality, infant mortality and crude death rate have worsened. Although Zambia has had no war, it is sadly in the same category with other war ton countries such as Sudan and Somalia and according to the World Health Organization (WHO), the country’s life expectancy has dropped from 52 years in 1980 to 43 in 2013.  This has led to a reduction in man power necessary to foster development in the country.

Elevated depressive symptomatology has also been found among unemployed single mothers, and mothers who are more depressed as they more frequently punish their adolescent children. This is evident in the number of cases reported in the country where single mothers have either killed or dumped their young ones in latrines. Frequently punished adolescent children, in turn, experienced increased distress and increased depressive symptoms of their own. 

Unemployment also culturally affects Communities. This is because the impact of unemployment extends beyond individuals and families to communities and neighbourhoods. High unemployment and poverty go hand in hand, and the characteristics of poor neighbourhoods amplify the impact of unemployment (Wilson, 1996). Inadequate and low-quality housing, underfunded schools, few recreational activities, restricted access to services and public transportation, limited opportunities for employment all characteristics of poor neighbourhoods contribute to the social, economic, and political exclusion of individuals and communities, making it more difficult for people to return to work. In a six country study, increased risk of mortality was associated with higher neighbourhood unemployment rates. Unemployed workers also report less neighbourhood belonging than their employed counterparts, a finding with implications for neighbourhood safety and community well-being.

Politically youths are used in political violence. The unemployment get into politics not because they have the desire to serve people, but because they want to find an income. This brings are poor fiscal discipline, corruption and generally poor policies

The Zambian Voice recognises the urgency and significance of finding a workable solution to unemployment, therefore, a project dabbled “Matrix of Creating Employment in Zambia”. The project is being undertaken in phases. The first phase was to found out what has been done, through a literature review,  in the quest to answer the problem of unemployment.

The literature review has been done and it will be shared with a number of stakeholders in preparation for the next phase. The next phase will be done based on the feedback from the literature review from stakeholders.

 http://www.economicshelp.org/blog/2247/unemployment/definition-of-unemployment/

http://www.businessdictionary.com/definition/employee.html#ixzz3DkQR5T9w

No More Lies On Sata’s Health


Opening Parliement

Finally the 4th session of Parliament has been opened by HE Michael Chilufya Sata. There are a number of issues that one can choose to discuss on the event of yesterday, the 19th September 2014 at Parliament. I would like to look issue of the Presidents health. I will dwell more on his health because I have not read the full speech which the President did not read very well to make an objective and informed comment. I will make comments after accessing it sooner than later.

Like have stated many times that our President is not well, yesterday my assertions from what we saw, were proved correct. Certainly our President has not been enjoying good health and there are so many indications to ascertain this fact.

Unfortunately a number of people have questioned my intentions each time I have spoken about the il-health of the President, but I would like to state it, like I have done in the past, that I love our President and I have no reason to wish him ill. On the contrary I always wish him well and pray for him.

Why speak about the President’s health?

It is folly to ignore the health of the President of any nation because he is at the centre of everything in the centralized governance system like ours. The President is like a locomotive engine which pulls all the wagons carrying policy cargo such as economic policies, agriculture, education, health and many other national policies. If the locomotive engine slows down, everything follows suit.  The analogue is exactly the same with a governance system.

If the President is not well, it is highly unlikely that things in the Country will move normally, something somewhere is bound to go amiss. Well meaning Zambians cannot fail to see the ramifications of the current poor health of the President that has characterized Zambia for number of months now. The wrangles in the party are so apparent, which would not be the case if the King Cobra is at his best. In terms of governance, you can overwhelmingly feel the inertia in many government workers and yet many were scared for their jobs due to their poor performance. The Sata we have today is not the same one who rocked the Ministry of Health in 1995. Nurses used to fear to sleep just in case he (Sata) walks into the hospital. But today, no government worker is scared of President Sata because he is confined to State House. Policies on the economic front keep oscillating in the absence of an affirmative voice of the President. Our workers voted and danced to have Sata as their President so that they can be liberated from ruthless and disrespectful employers but today, they have their minister cutting deals at Inter-continental and later on crying foul after failing to mint. Corruption is as smelly as chicken dang in the infrastructure contracts. Zambians are not benefiting substantially apart from being employed as traffic controllers and cement-mixers. The King Cobra I know, in good health would do much more in all these areas.

It is not Sata’s Fault so why Lie?

However, health issues are beyond every human power no matter what status or position you hold. As a strong Christian believer, I only look up to God when it comes to health. President Sata has not chosen to be sick of whatever he may be suffering from. It is natural to get sick and we must sympathize.   I do sympathize and pray for our President with a genuine heart.

What has displeased me in the poor health of the President is the lies that has characterized it. At no point has anyone come out clean to announce that the President is not well. Instead people have been lying through their teeth that the President is fit and working. Surely is what they have been saying correlated with what we saw yesterday at parliament or in Mukushi and Zambezi.  All those people who have spoken so vehemently of the good health of the President must be ashamed of themselves for not speaking the truth. Facts were laid bare when we saw our President; he is not well as they have been purporting.

Who is Responsible for the President Sata’s Health?

Opening Parliament 2

While I condemn those who have been lying on the Presidents health, I hold President Sata himself and the First family responsible. The sickness of any person is very private in spite of the position one holds in the Country. We can discuss his health but only to a point where it affects the person’s performance as a public worker.  It is not necessary to know what exactly is wrong because the individual has a right to his privacy.  It is enough to announce that someone is sick, and whether he can still carry on his duties or not.

That said, I wonder why President and the government officials have not come out clean on this matter.  The law is on their side in that, falling sick is not an automatic disqualification from Presidency. Further the law allows a President to take leave after appointing someone to act.

On the other hand, the President still enjoys an overwhelming goodwill from many Zambians and therefore they would be on his side in times of difficulties.  All considered, the President does not need to strain himself to prove what he is not at this point in time.

I, therefore, think that the people around him have failed to advise him so that he can take it easy and still enjoy his position as an elected President and the goodwill of the Zambians. The first family must also be held responsible for failure to give confidence in the President that to them he is their head of the family, a father, a grandfather a man they love and would want him health before being President. I know President Sata has a strong character but he also listens.

Conclusion

It is clear the president is not well, so no one should continue making a fool of himself by stating facts other than what we have seen. The president needs to be supported during this difficult time and advised to take it easy to allow full recuperation.  The law is there to be used in this situation and enjoy the good will of Zambians.

Let us pray: May the Good Lord bless our President, give him good health, strength and wisdom so that he can govern this Nation which you have bestowed on him when you allowed Zambians to elect him. Through Christ our LordAmen

 

Julius Malema’s MP Raises A middle Finger Towards Mr. Ramaphosa In Parliament

Malema takes Oath in parliament3

Julius Malema

18 September 2014

THE EFF CHIEF WHIP STATEMENT ON THE MIDDLE FINGER SHOWN TO MR. CYRIL RAMAPHOSA

During its sitting on the 17th of September 2014, the Parliament of Republic of South Africa deliberated on a variety of questions, which the Deputy President of the ANC, Mr. Cyril Ramaphosa was responding to.

Instead of allowing Mr. Ramaphosa to answer the follow up question on Why he instigated the killing of Mineworkers in Marikana, the Speaker ordered the Commander in Chief Julius Malema to leave the House for refusing to withdraw the assertion that Mr. Ramaphosa killed the workers in Marikana and his hands were full of blood.

The Speaker also ordered that I leave the House because I asked what was wrong with stating that Cyril Ramaphosa is a murderer and the basis of the Rule she was applying. In the process of leaving the house, I raised my middle finger towards Mr. Ramaphosa to express the digust of the reality that workers have lost lives due to his pursuit of private profits and interests.

I however realise that raising the middle finger was not necessary, because there are platforms to express the utter disgust for Mr. Ramaphosa’s role in Marikana and everywhere else where he is involved. Instead of raising the middle finger, there exists space and time to express honest and truthful observations on his role in the counter-revolution. I therefore publicly withdraw the middle finger and will bring this to the attention of the House in the next sitting of the National Assembly. The assertions made about Mr. Ramaphosa in Parliament remains and I have no regrets expressing what I said about him.

While speaking the truth at all times, we as representatives of the EFF do not want to degenerate in a similar way the ANC has degenerated since the beginning of the 5th democratic Parliament. With no caution from Presiding Officers, the ANC has been labelling Members of Parliament as ‘Fascists’, ‘Charlatans’, ‘Hypocrites’, ‘Schizophrenic’, ‘Bastards’ and so on. We refuse to join this band, but will at all times speak truth to power and will never retreat!

ISSUED BY THE ECONOMIC FREEDOM FIGHTERS PARLIAMENTARY CHIEF WHIP:
Contact via Email: floydn@gmail.com

What Zambia can learn from Zimbabwe’s local diamond Auction

ZIMBABWE will start auctioning its diamonds locally in November as Government moves to plug leakages and maximize revenue collection. This was said by Minister of Mines and Mining Development Walter Chidhakwa, in response to questions on why Government continued to auction diamonds in hostile nations following an ex-parte ruling in a Belgium court last week in favour of Amari Platinum Holdings Limited to attach diamonds worth US$45 million.

“The question is are we going to look at Belgium as a market and see whether we are prepared to continue marketing there? Our position is very clear. We have always been saying we are only preparing to come back home and we will be doing our first diamond sale in Zimbabwe in November,” Minister Chidhakwa said.

He told Parliament the events that led to Amari approaching the Belgian courts, adding a team of lawyers had been sent to argue Zimbabwe’s case in Belgium.

“Last week a company called Amari went to the Belgian High Court and secured an order to attach diamonds belonging to ZMDC. It did so on the basis of a dispute on a platinum concession that did not subsist for many reasons, including non-performance.

“That dispute was put up to the International Court of Dispute Resolution and after some time it was decided that the seat of the resolution of that dispute be Zambia and that a judge is expected to adjudicate on that dispute on the 19th of September which is Friday,” he said.

“But before that dispute had gone before the Zambian judge, Amari and partners had already gone to the Belgian High Court to attach diamonds,” Minister Chidhakwa said.

“The first thing is that ZMDC does not have diamonds in Belgium. There are no ZMDC diamonds in Belgium. There are diamonds belonging to companies in which ZMDC has got a shareholding and those companies cannot be punished for the ‘sins’ of ZMDC.”

“We have dispatched a team to Belgium and that team left yesterday. They will be looking at two issues; first the matter that has triggered this is sub judice, it is before the International Court, secondly, ZMDC does not have diamonds in Antwerp. This explains what has happened and we are confident that due process will be followed and that the outcome will be favourable to us,” he said.

The dispute dates back to 2010 when then Mines Minister Obert Mpofu cancelled Amari’s memorandum of agreement with the ZMDC.

The company argues that the cancellation was wrongful, especially after it had invested over US$4,5 million in key exploration work.

Zimbabwe tried to sell diamonds locally on a trial basis, but abandoned the idea due to lack of proper infrastructure.

http://allafrica.com/stories/201409180272.html

NITROGEN Chemicals of Zambia (NCZ) Meeting Fertilizer Demand

MINISTER of Finance Alexander Chikwanda (left) with Minister of Agriculture and Livestock Wylbur Simuusa (third left) listen to Nitrogen Chemicals of Zambia managing director Zuze Banda (second left) explaining production processes of fertilizer in Kafue yesterday. – Picture by COLLINS PHIRI.

By ESTHER MSETEKA
NITROGEN Chemicals of Zambia (NCZ) has produced 85,213 metric tonnes of compound D fertiliser to be distributed countrywide under the Farmer Input Support Programme (FISP).
Government has awarded NCZ a K611 million contract to produce 106,409.75 metric tonnes of compound D fertiliser.
Out of the 85,213 metric tonnes of compound D produced by NCZ, 72,000 tonnes has already been distributed to 77 districts across the country.
Minister of Finance Alexander Chikwanda said Government will not relent in transforming Zambia into the food basket of Africa.
Mr Chikwanda said Government is determined to use the agriculture sector to transform the country’s economy.
“Government is very satisfied with the performance of NCZ. When we embarked on this bold business of revamping NCZ, first of all there were some amongst us who were saying NCZ is a white elephant, some people don’t like the idea of localising production because they believe in importation,” he said.
Mr Chikwanda said this when he and his Agriculture and Livestock counterpart, Wylbur Simuusa, toured NCZ in Kafue yesterday.
He said agriculture is poised to become the country’s economic mainstay that will generate the much needed foreign exchange.
Earlier, Mr Simuusa said Government has prioritised agriculture to drive the economy.
Mr Simuusa said 85,000 metric tonnes of compound D fertiliser NCZ has produced and distributed shows Government’s commitment to promoting the agriculture sector.
“It is up to us as Zambians to take up the challenge, they say when you put your money where your mouth is, that shows how serious you are in that agenda.
“One thing that the PF government and President Sata have done is that we have put our money where our mouth is to show you how committed and serious we are,” he said.
And NCZ managing director Zuze Banda said farmers have benefited from the company because it is now supplying them with high-quality fertiliser.
Mr Banda said the efficiency and creativity of the workers have made NCZ a success story.
He said NCZ has rehabilitated most of the obsolete machinery using local expertise and materials.
Mr Banda, however, said NCZ has been facing the challenges of power supply interruptions.

http://www.daily-mail.co.zm/?p=4066

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