ShowUsOurMoney! ECONOMIC HITMEN, STATE CAPTURE, HIGH COST OF LIVING AND GRZ FACILITATION OF MORE LOOTING BY MINES
Zambia lost US$7 billion in illegal emerald trading in 2017. This “black economy” continues to flourish and every year our nation loses US$8 billion. When you add the billions of dollars that cooper mining companies pocket every year through fraudulent accounting and price transferring, you will see that our nation can take a leap from a US$6.6 billion national budget to over US$50 billion, which can transform lives and pay off the debts in one year. It’s a clear lack of love of country to pay debt with debt which is not debt repayment at all!
The new economic hitmen in suits, under the New Stealth Government (NSG), know that mining companies contribute less than 20% to the revenues of the state yet copper mines contribute 77% to the export volume and only 2.4% to employment. Thus, the only paper-based benefit from our copper is computation of GDP, which does not translate into improved welfare because production and revenues are in foreign hands. In the end, it’s the Zambian workers (civil service and private sector) who fund 80% of the national budget through PAYE. Other citizens and workers continue to be victims of double taxation through Withholding Tax, VAT on goods they buy, toll fees, market levies, road tax, road levy on every litre of fuel, council service fees, borehole fees, excise duty on every unit of electricity bought, etc.
In one auction sale of emeralds in Singapore, Kagem made US$28.4 million (just one official sale) – think of the NSG holding a public media event to celebrate less than US$20 million donated to Zambia by the USA!! You leave billions of dollars in your country in favour of moving with a beggar’s bow overseas? In 2019, Kagem contributed US$80 million to revenues. Take note that Zambians only own a paltry 25% in Kagem though the IDC which is chaired by the President of Zambia.
Today, the trend in terms of revenues continue on the same path. The black market makes billions as Main street suffers. Economic hitmen are products of capitalistic systems which made them who they are today. Their allegiance is to international institutions that they have historically served in their careers. This is their religion.
In 2020, the Bank of Zambia bought 282.79 kgs of gold from Zambia Gold Mine Company (a subsidiary of ZCCM-IH) and Kansanshi at K345.6 million. At today’s price, 282.79kgs is over US$16 million. How much more gold has been mined today? How much more emeralds have been mined? How about manganese, nickel, beryl, etc?
The President of Zambia, who is fully in control of all the mining activities in Zambia through his/her role as chairperson of the IDC, which controls ZCCM-IH, has huge authority to change course for the good of the country. Remember that ZCCM-IH has a stake in all major mining companies in Zambia. Whose interests is the President serving between those of the Zambian citizens and foreign owned mining companies?
The economic hitmen under the NSG are facilitating more looting in the mines through policies that have entrenched more revenue losses to the Republic!
Saviour Chishimba
Leader
United Progressive People (UPP)