THEY PROMISED MORE MONEY IN PEOPLE’S POCKETS…but look where they have ended up, Magande sounds distress over PF governance

By Patson Chilemba

Former finance minister Ng’andu Magande says it’s distressing to see where the PF has ended up when they promised more money in people’s pockets.

And Magande says it is welcome that the Chinese have deferred Zambia’s debt repayments for three years, but would be interested to know what Zambia is offering in return and what the government will do with the money that was meant for debt servicing.

Speaking with Daily Revelation, Magande said he would be interested to see what President Edgar Lungu would accomplish in this his full term going up to 2021, hoping he could bring up something that would change the country’s trajectory at the 11th hour.

Magande said the PF government had proved that party manifestos meant very little in terms of how the ruling party was governing the country.

“They (manifestos) can be beautiful, more money in your pockets, but you can see where they (PF) have ended up,” he said.

Magande said it was welcome that the Chinese had allowed deferment on Zambia’s debt repayment, but very little was known on the terms of that decision.

“If indeed it happened that is good news. The only thing is we don’t know who negotiated for us. It seems the Chinese just decided on their own. I think it’s just about transparency about our dealings with the Chinese,” said Magande, adding that he would be interested to know what sort of impact the deferment will have on Zambia. “And what impact it will have on any of our plans that if we get this money then we are going to do this and this. It’s good if they have allowed us to defer. I would like to know if the minister will give a ministerial statement.”

Magande said the money that was due for China should be channeled towards productive ventures, like in the agriculture sector, where with the onset of rains, government could procure equipment to increase production.

He said investment into the production, would in turn create demand, which was needed during these dire economic stresses the country was going through.

Magande hoped the money would not be channeled into election related ventures, saying during his time as finance minister under the late Levy Mwanawasa, the country did not experience over expenditure, saying even the budget deficit went down during the period of the elections.

Zambia has been granted a Debt Service Suspension Initiative (DSSI) by the Chinese government and all concessional facilities as provided by the G20 guidelines.
Zambia has also been given a one-year grace period and suspension of three years of repayment.

China has suspended and maximum debt service repayment for 2020 and rescheduled it amounting to $225 million which was due between May to December 2020.

Debt suspension for 2021 and 2022 amounting to $426.3 million and $428 have been suspended and rescheduled. -Daily Revelation

By Mwelwa Mwape CIC Private Reporter.

NORTHERN ~Chilubi

AS BEMBAS WE DEMAND THE RELEASE OF CHISHIMBI KAMBWILI HE MUST COME OUT IN GOOD HEALTH WARNS BENARD MPUNDU.

Ambassador Bernard Mpundu went on fire yesterday demanding the end assault on Bemba leaders dating back to Late Mr Simon Mwansakapwepwe, Late Micheal Sata and now they are on Chishimba Kambwili.

Mr Mpundu said that it’s not fair that all the Bemba prominent figures who dare to aspire for leadership are eliminated on political grounds that Dr CK must come out in good health if not Edgar Chagwa Lungu will have to answer to the Bembas.

Mr Mpundu said the coming out of CK to work with the UPND leader Mr Hakahinde Hichilema to work together and better the lives of the people has made Edgar Chagwa Lungu so afraid hence the gimmicks to block, jail, and eliminate his political opponents, he went on to say that Kalaba is also on target just because he is aspiring.

Mr Bernard Mpundu was speaking this in Nsumbu ward yesterday in Chilubi island of Northern province at a rally in drumming up support to the UPND candidate Mr Risto Mushembe saying that the Bembas will rise if anything happens to Dr Chishimba Kambwili.

“Dating back to Simon Mwansakapwepwe, Micheal Chilufya Sata and now Dr Chishimba Kambwili enough of our people being subjected to torture of this manner. When Edgar Lungu comes to Chilubi ask him what crime Chishimba Kambwili has committed to be sentenced to prison that he (Edgar Lungu) has not, Chishimba Kambwili is your son of this Bembaland being a political rival does not mean one has to be eliminated from the race, Edgar Lungu does not want any Bembas to be a leader in this country, he has vowed to keep rulling even if he has no capacity to rule this country, this place Nsumbu ward a child has never seen a car in his or her life, others don’t even know how a hospital or school looks like, Edgar Lungu comes here flying with a chopper instead of making a bridge for this place to connect Chilubi island, Santa Maria and this place but he managed to commission a multi million bridge in Western province because you people here do not matter even if they bring nothing during any election like this it’s better to bring K20 and make you in the queue you will still vote for them” Mpundu charged.

He said Mucheleka Patrick, Elias Mubanga, Samuel Ngwira and Kalusha Bwalya of Kasama and so many more where jailed and are still suffering to go on and on in courts over frivolous charges.

“Right now the UPND President Mr Hakahinde Hichilema has been summoned in Chinsali simply because he cared about your own to go and visit them in prison in Kasama it’s now HH to go and get arrested in Muchinga province” said Mr Mpundu.

And UPND candidate Mr Risto Mushembe said that he will be a thorn on PFs throat once he wins so that they will have no choice but to deliver development to Chilubi instead of taking advantage of the people just corrupting them during the elections, Mr Mushembe said that failure to have sensible representation Chilubi will remain in abject poverty because until UPND representatives gets there there will be no one to speak for Chilubi.

And Chilubi island Campaign manager Mr Edward Roy Makayi told the gathering that he saw PF giving huge money in queues such as K300 and above to every person they find yet still lost but why do they have to be giving you a K20 and that’s it to be a determining factor for elections that they care. Makayi said voting for Risto Mushembe will mean adding a voice in the PF government for the people of Chilubi otherwise they will keep on doing the samething of not considering Chilubi because all that matters is the K20 by Dr Chitalu Chilufya.

“The minister has no shame Chilubi needs quality medical facilities, good clinics and hospitals with well motivated staffs both nurses and doctors, right now how many people can access Chilubi island clinic for medical attention from here Mwanakasabi which took us with a speed boat 4 hours at a high cost in booking the boat?, why can’t Dr Chitalu Chilufya tell the government to construct a clinic or hospital here instead of dishing out K20’s for a by-election ” Makayi wondered.

He urged the people of chilubi island to teach PF a lesson get the K20’s because it’s there’s Dr Chitalu Chilufya stole and went to corrupt electorates but on 22 of October they should turn up in numbers and vote for UPND candidate Mr Risto Mushembe when that is done and next year no matter what PF brings they should all vote for UPND candidates beginning with councillors, Risto Mushembe again as a mayor and Hakahinde Hichilema as the Republican president then the much and long awaited dream bridge will be construed by the UPND government. He said.

CIC PRESS TEAM.

The holders of Zambia’s $3 billion of Eurobonds will vote next week on the country’s request for a six-month interest-payment delay.

While, a core group of creditors have already rejected the proposal, prompting Zambia to say it won’t be able to service its commercial debts including the bonds unless it gets the relief, the country is now pinning hopes on the pending polls.

According to Bwalya Ng’andu, Zambia’s finance minister, the government failed to make a $42.5 million interest payment yesterday, though it has a 30-day grace period before it becomes a default event allowing bondholders to demand immediate repayment of the principal.

Meanwhile, President Edgar Lungu has expressed worry over the country’s debt position, saying it is giving him sleepless nights.

Lungu said it is a very tight situation for the country, though expressed hope that a solution would be found.

Zambia’s trick situation was also highlighted by some economic analysts world over.

“Zambia is between a rock and a hard place with the IMF demanding transparency on Chinese loans and the political economy going into the elections,” said Ron Raychaudhuri, an emerging-market fund manager at APG Asset Management in Amsterdam.

“Some Chinese lenders also seem to be reluctant to allow a moratorium until arrears are dealt with.”

The Group of 20 agreed Wednesday to renew a debt-relief initiative for the poorest countries through the first half of 2021.

The group said in a statement it was “disappointed by the absence of progress of private creditors’ participation” in its Debt Service Suspension Initiative.

Eurobond holders want Zambia to sign up for an economic program with the International Monetary Fund before tackling its commercial debt.
But the country’s debt levels are significantly above the Washington-based lender’s thresholds, and a general election in 10 months makes deep spending cuts less likely.
There are also questions about transparency around borrowing from China, which accounts for as much as a third of the nation’s $12 billion of external debt.

Zambia already gained some relief from the Paris Club group of bilateral lenders, and said it wants all commercial and bilateral creditors, including bondholders, to commit to similar measures.

Skipping the Eurobond interest payment was part of that process and done at the urging of Zambia’s debt advisers, including Lazard Freres and White & Case, Ng’andu told lawmakers Thursday.

“They were of the strong view and opinion that if we pay we were going to create a very hostile environment within which to negotiate with other creditors, because we would have departed from the principal of pari passu,” Ng’andu said.

“Based on that, we didn’t make the payment that was due yesterday. Not because we didn’t have the money to pay, but because the issue of treating all the creditors equitably is a very important part of the process that we are going through.”

Zambia’s Eurobonds slumped for a third day on Thursday, and are trading at less than half their face value.

Notes due 2024 fell 5.5% to 41.7 cents on the dollar by 3:07 p.m. in London, the lowest on a closing basis since May.

The securities have lost 14% of their face value since Monday.

While the pandemic has contributed to Zambia’s debt woes, the IMF warned more than two years ago that the nation was already at high risk of debt distress after a borrowing binge.

Still, a rebound this year in copper prices which Zambia relies on for about 70% of export earnings means that the government could probably stay current on Eurobond coupons if it chose to.

The government should focus on extending maturities of the notes, according to Richard Briggs, a fund manager at GAM Holding AG in London, which holds Zambian bonds.

“I think at these levels, Zambia is worth holding as recovery values, even if the negotiations might last beyond the elections, should in the case of Zambia be generous versus current trading levels,” he said.

THE Law Association of Zambia says no eligible voter should be disenfranchised on account of processes involved.

And LAZ has proposed that political parties that foment violence be banned from participating in elections.

There has been a growing public outcry on the Electoral Commission of Zambia’s decision to introduce online voter pre-registration as well as completely discarding the old Voters’ Register.

In a statement, LAZ said it felt that everyone should be accommodated.

“LAZ reiterates the need for ECZ to ensure that no eligible voter is disenfranchised from voting on account of processes, and that everyone must be carried along, including prisoners, subject to the guidance offered to ECZ by LAZ,” the statement signed by honourary secretary Sokwani Chilembo reads in part.

It called on ECZ to ensure that the will of the people prevailed in the electoral process.

“LAZ also calls upon the ECZ to ensure that free and fair elections are delivered, and that the will of the people should always prevail, as enshrined in the Constitution of the Republic of Zambia, and all enabling subsidiary legislation. In order to achieve this, the process leading up to voting is sacrosanct, as any form of electoral violence makes the process flawed,” LAZ said.

And LAZ has expressed concern at the continued countrywide electoral violence.

The association has since condemned the act, describing it as an assault on human rights and freedoms.

“Going forward, LAZ is of the view that the ECZ has sufficient powers to punish offenders, and must accordingly act when faced with electoral violence, regardless of the political party involved,” said LAZ. “We wish to echo what the Constitutional Court said to the ECZ in the aforementioned case, which was followed by a directive to hand over a copy of the judgment to the ECZ by the Court, as follows: …’We therefore, strongly urge the Electoral Commission of Zambia (ECZ) to take necessary steps to curb the worrying culture of electoral violence in the country. We take judicial notice that the ECZ has wide powers under the law to punish perpetrators of electoral violence which include but not limited to disqualification of a political party in breach of the electoral code of conduct from taking part in an election. It’s time that such powers are invoked so as to preserve life, property, democratic values and principles…’’’

LAZ also committed to use, to the full extent, all legal tools at its disposal against perpetrators of political violence.

CHINGOLA DC AND POLICE STORM LIFE GOSPEL CATHEDRAL CHURCH, ORDER BISHOP KAZHILA TO PREACH POWER POINT MESSAGE.

By Richard Aaron Ngoma

Chingola District Commissioner Agness Tonga accompanied by several police officers this morning stormed a live Church service at Life Gospel Cathedral, that was being presided by Bishop Joseph Kazhila. The shocked congregation watched as the equally startled Bishop led the high powered delegation to his office.

Earlier in the service that was broadcast live on Radio and TV, Bishop Kazhila had vehemently opposed the tradition of the national day of prayer that compels people to pray and fast on the 18th of October every year. In his sermon Bishop Kazhila argued that government had no moral obligation to force anyone when to pray or not to pray.

“The Bishop said prayer was a personal matter and that it was not correct for a government that thrived on injustice, corruption and violence to force people to pray and then after prayers return to their evil ways. The Bishop insisted that prayer should be an every day matter and not on any one day and that those involved in undesirable vices must not be the ones to force people to pray” , said the source.

The message appeared to have angered the District Commissioner who scrambled a team of Police officers to the Church.

“In the Bishop’s office, the District Commissioner ordered the Bishop to preach the power point message that had been authorised by the government under the Ministry of Religious affairs. Upon his return to the auditorium, the Bishop walked to the pulpit and announced that he would rather fear God than man and that as a matter of fact politicians ought to fear him than him fearing politicians”, said the impeccable source.

The District Commissioner’s entourage left the Cathedral after the service. Early last year Bishop Kazhila was arrested by police after accusing them of being behind the gassing and ritual killing in the small Copperbelt mining town of Chingola. He was charged for alarming the public but was however acquitted of the charge by the courts.

It is yet to be seen if the Police will charge Bishop Joseph Kazhila for preaching a contrary message to that of government on the national day of prayer and fasting. -Zambia Eagle

Kanganja has shot himself in the Foot!

IG’s HH SUMMON: AN OPPORTUNITY TO MOBILIZE THE GREATEST ROAD SHOW FROM LUSAKA TO MPIKA – SIMATAA
—————————————————————

By CIC Reporter | 18 Oct 2020 | Lusaka

UPND firebrand aspiring councillor for Kamwala Ward 5 Mainda Simataa has confessed that God really works in mysterious ways.

Simataa who has boycotted and rubbished today’s National Prayer Day as a circus, a day for political pharisees and religious hypocrites, was speaking in reference to Police Inspector General Kakoma Kanganja whom he says has shot himself in the foot by summoning UPND party President Hakainde Hichilema and his Sesheke MP Romeo Kangombe to appear before PF cadres in Mpika this Tuesday.

Kanganja has given the UPND and it’s sympathizers an opportunity to have the greatest and longest political roadshow the world has ever seen as thousands of Zambians escort their next President Hakainde Hichilema from Lusaka to Mpika and back, and we’ll maximize on this opportunity.

“Every Zambian knows that from a professional point of view, Kanganja is a failed policeman, he’s a letdown and a disgrace to the ZP uniform. But his failures go beyond failed policing duties. Kanganja is also a failed cadre, he is failing his political appointing authority President Lungu, he’s making HH more popular, and Lungu extremely unpopular, and his actions are proving to be very politically beneficial for the UPND…it’s as if he’s secretly working with UPND to dismantle the PF government by making it extremely unpopular.”

“If he’s doing it consciously, then the man is a far better genius of politics than policing, and I wish to thank him for giving us a free-pass to Mpika” says Simataa, adding that if UPND had used normal channels to request for a police permit to hold a road show from Lusaka to Mpika in the Northern regions perceived to be a no-go-area and PF bedroom, the same Kanganja would have never allowed it for fear of being fired.

“As I’m speaking to you, we have over 10,000 Zambian drivers who’ve volunteered their cars, buses and trucks with full tanks and food supplies to escort HH all the way to Mpika and back, and the beauty of it all is that Kanganja called for this rally, and there’s no law and no way to stop anybody from driving to Mpika because if Kanganja stops and asks ‘where are you going?’ just tell him you’re going to order Nakonde rice and fish in the North.

Simataa says the roadshow will be streamed live on Facebook because it promises to be very colourful and spectacular. “I wish to encourage all Zambians to line up the route from Lusaka to Mpika because the police will also come out in numbers never seen before, to showcase the newly acquired military anti-riot vehicles, tanks, water cannons and body armour – it will be like watching a movie, like a repeat of Sarafina in a reality show”.

Simataa has since appealed to the IG Kanganja not to cancel HH’s summon because a lot of well-wishers have pumped in a lot of money, food, fuel and vehicles to ensure the roadshow is a success.

LEAVE ONE EYE OPEN AS YOU PRAY WITH THE PF CRIMINALS – KATUKA.

LUSAKA-Country Men and Women.
We are saddened with the happenings in our beloved country Zambia.

Today 18th October 2020”, is a day which the Patriotic Front Government declared a National Day of Prayer. What a mockery! Yes, the day of National Prayer should be supported by all of us even though we have not been invited for the gathering.

This PF government is responsible for the deaths of our fellow citizens.
Mapenzi Chibulo, Grazier Matapa, Frank Mugala, Lawrence Banda are dead because of this evil government that launders itself on a day like this one, under a misguided belief that when our people see the calling for prayers, they are good people. But these are real wolves in sheep’s clothing. After prayer they start beating, assaulting, stealing and all sorts of detestable things

This is regime that has presided over unprecedented corruption the country has ever witnessed and has led us to an economic meltdown.

This is a government that had our President Hakainde Hichilema incarcerated at Mukobeko Maximum Prison over a trumped up charge. This is a government that kept Patrick Mucheleka, Elias Mubanga, Samuel Ngwira and two others at Milima Prison just so they can instill fear in citizens with divergent views. Look at what they have done to Chishimba Kambwili! Evil
This is a government that has just issued police call- outs to Hakainde Hichilema so that they imprison him again.

In Matthew 5:23-24, the Bible says “so if you are offering your gift at the altar and there remember that your brother has something against you, leave your gift there before the altar and go. First be reconciled to your brother, and then come and offer your gift.

We challenge President Edgar Lungu to confess and apologise to these people if he means well with his Day of National Prayer for the Bible, in the Book of Proverbs 28:13, says “Whoever conceals his transgressions will not prosper, but he who confesses and forsakes them will obtain mercy.” But this group in government has not shown us any signs of being repentent at all; they have continued with their evil acts of brutality and inflicting terror daily.

The PF Government is using this day to keep Zambians sleeping so that they continue stealing public resources. What else can we say when year-in, year-out, innocent citizens are being attacked for merely exercising their freedom of assembly and movement, opposition political party members are sent to prison for being good campaigners, and many other bad vices are the order of the day. All these things are being done to instil fear in the citizens.

This government has been asking citizens to pray so that when they close their eyes, they have an opportunity to steal and continue with plunder.

Today, I am asking you my fellow citizens “please as you pray with these thieves who are not ashamed of themselves, leave one eye open”.

In the Book of Proverbs 6:16-19, the Bible tells us “There are six things that the Lord hates, seven that are an abomination to him: haughty eyes, a lying tongue, and hands that shed innocent blood, a heart that devises wicked plans, feet that make haste to run to evil, a false witness who breathes out lies, and one who sows discord among brothers.

Fellow citizens, be wary when these shameless thieves come to you with hand-outs and ask to pray.

I ask you to “Keep Cool and Your Eyes Open” as you pray with them and vote like your whole world depended on Bally in 2021. Bally will definitely fix it!

Down with visionless leaders. They are NOW hoping China will takeover ZESCO, ZNBC, KKIA and the MINES because of debt defaulting.

As UPND, we believe in not mocking our God. Yes, it is only prudent that we embrace God through prayers, fasting and meditation on God’s word. Therefore, let’s continue praying and taking God seriously in our every day lives.

As a responsible party, we are looking forward to a day when all citizens will have the basic needs, which include food before calling them for a day of prayer and fasting.

Places of worship should also be built to avoid gatherings in schools and other places not designated for prayers. This can only be possible if the government of the day facilitates some form of resources.

When UPND comes into power in 2021, our government will ensure to work together with the three church mother bodies to establish a financial institution like a Christian Bank.

Our objective is to help churches access loans, among other products at affordable rates as they are not profit-making entities and should be treated as such. The proposed bank will be based on the principles of Christianity. It’s an idea we are promoting and shall take priority just like any other sphere of our economy that needs urgent attention like job creation for our youths.

Issued by: Stephen Katuka
UPND SECRETARY GENERAL

By Lubinda Namukolo

Mongu the capital city of Barotseland unlike other towns which benefitted from the colonial legacy, Mongu has largely been developed by local people.
“Most of the buildings in Mongu were put up by indigenous people. And Zambian government is still renting some buildings such courts, zampost, police, government officials residence

POPULATION

Mongu has a population of 191,845, of which 55,635 are urban and 136,210 are rural (2010 census).
About 14.8 of the district’s urban road network is tarred, while the 16.2km Mongu-Limulunga road which is still under construction.
The contractor, Avic International, had already mobilised on site but has not started work because Government only released K6 million from the required K20 million down payment required to start the work.
Other roads earmarked for rehabilitation include the 1km Libonda Road and the 1.9km Lyambai Road.
The construction of the Mongu-Limulunga road will ease communication between the two districts, while trade and mobility will improve greatly.
Mongu boasts of a cathedral and a number of upcoming hotels, though still at lodge level.

HOTELS

Its hospitality sector boasts of one hotel (Ngulu), 12 lodges, four motels and 26 guest houses, including council-owned Sir Mwanawina III Motel located in the Winela area, west of Mongu town, off the Limulunga Road.

Mongu municipal council notes that the construction of hotels, lodges and guest houses is on the rise due to the rising demand for bed space in the district.
To facilitate the growth of the hospitality sector, Mongu is expected to host the Barotse Expo to showcase the investment potential of the Region in general and Mongu in particular.

HEALTH

Mongu has one general hospital-Lewanika General Hospital- offering first-level referral services while Mongu District Hospital is also in place.

EDUCATION

The district has 11 secondary schools and seven tertiary institutions, which include one private university, the Barotse University, while a public university, King Lewanika is not yet under construction. The Zambian Government has abandoned the project.

FINANCIAL INSTITUTIONS

Mongu has nine banks namely Zanaco, Barclays Bank, Indo-Zambia Bank, National Savings and Credit Bank (Natsave), Investrust, Standard Charterd Bank, Atlas Mara, and Zambia National Building Society (ZNBS).

SHOPPING MALL

The district has one shopping mall – the Barotse Mall -comprising the anchor store Shoprite and attendant shops such as Hungry Lion and 15 others.

PROPERTIES

Mongu has 3,000 properties with rateable value of K2.5 million.

WATER AND SANITATION

The district is serviced by 12 boreholes drilled along the plain edge north of Mongu hilltop while two boreholes are situated at Wenela water works.
Currently, there is a project under design funded by the African Development Bank (AfDB) to tap water from the Zambezi River in order to enhance water supply.

GROWTH POINT

The local authority, which has been squatting from the district administration for some time now, intends to build a civic centre in Kasima where land has been set aside for the project.
Mr Akayombokwa says the civic centre will be built from internally generated resources, 20 percent from the equalisation fund and well-wishers.
Mongu is strategically located in the centre of Barotse kingdom and has comparative advantage for trade and administrative purposes.
It has a growing market, especially from the growing middle class, with potential for production and marketing of fish.
Currently, Mongu has a growing number of value-addition industries such as APG Milling, Zambeef, Mongu Cashew Company, Mongu Joinery, Country Aqua, Country Milling Company, HMM Milling Limited, and Kasima Water Company.

“Overall, Mongu’s economy providing employment comprises the primary industries of agriculture, fishing, forestry and hunting (about 81 percent) followed by commercial activities in whosale, retail, restaurant and hotels (11.6 percent), followed by manufacturing (three percent) and the construction industry (2.1 percent).
Other economic activities in the district include transport and storage (1.5 percent), information and communication (0.2 percent) and mining/quarrying (0.1) percent.
“Mongu has grown and will soon transform into a city.

MONGU is Accessible by Air, water and road.

By McDonald Chipenzi

INSIDE LOOK AT THE COMMISSIONERS AT THE ELECTORAL COMMISSION.

The Electoral commission 0f Zambia (Amendment) Act No. 5 of 2019 spells out the qualifications for one to be a member of the Commission which is an improvement to the principal Act No. 25 of 2016 which did not have specified qualifications for members of the Commission.

Under the amended Act, “a person is qualified for appointment as a member [of the Commission] if a) [that person] has a school certificate or its equivalent, b) holds a degree or its equivalent…, c) has knowledge and experience in ( i) election administration and management (ii) finance (iii) governance (iv) public Administration (v) law.

The five (5) commiszioners might have all the qualifications except (c) and (c)(i) which talks about “knowledge and experience in election administration and management”.

This is so, because, other than Commissioner Ali Simwinga, who could have gained this knowledge and experience in “election administration and management” by default as former Town Clerk for Kitwe, the position which gave him the position of District Electoral Officer, in addition to his law qualifications, the rest seem to be remotely from this requirement of possessing “experience and knowledge in election administration and management” and consequently the Electoral Process.

It could have been a job on training on electoral matters at entry point for almost all the Commissioners save for the above mebtioned and those who have been there at the Commission long enough, have gained this knowledge and experience in election management and administration.

Being a crucial year as elections are in less than 12 months, the appointing authority, in this case the president, should have ensured that the appointees had relevant experience and knowledge in election administration and management in addition to their academic and professional qualifications, to avoid spending time doing job on training and applying the “trial and error” methods

The two (2) newly ratified and appointed Commissioners may also be in the similar position of the “job on training”.

I read one of the appointees is a former military person while the other is a former civil servant in the Ministry of Home Affairs, perhaps both must have knowledge and experience in public Administration since military training is not part of the qualifications for them to fit in the requirements for one to be a member of the Commission.

It is important that parliament, when considering the scrutinisation of such presidential appointments, involve, at least, witnesses with knowledge and experience in election administration and management.

I doubt if the two new Commissioners have ever monitored or observed any election either locally or and international or and exposed to the Electoral Process to appreciate the administration and management of elections in Zambia or elsewhere in the world.

This will, in turn, compel ECZ to spend more money flying the two unexposed commissioners to expose them to the Electoral Process within and outside, electoral systems and electoral activities when they are supposed to invest such monies to enhance the Commission operations.

I submit

What Does It Mean To Default?

Let’s start by understanding what it means for an individual or a company to default.

Let’s assume you want to buy a house and decide to borrow money from a bank. The bank issues you the required loan which needs to be repaid back periodically within 20 years. It is worth noting that the legal agreements, including terms and conditions of the loan will be dependent on your credit worthiness and how likely you are to pay the money back. For instance, the bank might require you to pay a portion of the loan along with the interest back to the bank on monthly basis.

Now, assume you pay the payments as per the agreement for first 6 months and then you miss out on the payments due to your bad economical situation.

What Happens Next?

The bank will start chasing you for the money

You might get a letter from the bank, followed up by phone calls leading to visits from the enforcement agencies and finally your property will be repossessed. Once the property is sold, you might also be required to declare bankruptcy. Subsequently, the next time you borrow loan, banks might charge you higher interest due to your poor credit quality.

On the other hand, if a company defaults on its loans then its stock value goes down along with its ratings. Additionally its assets (laptops, offices etc.) might be sold to pay off loan and it will be harder for the company to conduct new business in the future.

So far, everything makes sense. Now let’s move on to country defaulting

Understanding Sovereign Default

Countries (sovereigns) have a complicated economical structure. Their economy is exposed to a wide range of factors; from political risk (corruption index level, autocratic leadership), legal risks (how reliable their legal system is) to economic growth cycles (how dependent their growth on a service or export is and how productive their revenue system is).

Governments require money to pay existing debts and to perform pension and social service commitments. Country’s government has a treasury department which maintains its capital and ensures the country has enough money available.

Believe it or not, some investors prefer to invest in non-democratic countries because their policies are stable and predictable.

Governments can raise capital in various ways; such as from increasing revenue, taxing its people and services, issuing treasury bonds or to borrow money from foreign countries.

Money borrowed from foreign countries is in foreign currency

Let’s Move On To Treasury Bonds And Foreign Debt

Think of governments issuing treasury bonds as borrowing loans from public. Governments pay money back periodically to the bond holder. The money borrowed by issuing bonds is known as local country debt because the bonds are issued in local (domestic) currency. If the government is unstable then you can expect the government to pay higher interest on the treasury bonds.

When countries borrow money from foreign countries, it is known as foreign country debt. If the government has poor rating and is already in high debt then the foreign countries will charge higher interest rate on the borrowed loans.

When countries are unable to pay back on their loans to their creditors then they declare bankruptcy and are then considered defaulted. Most of the sovereign defaults are foreign currency defaults.

Next Steps — What Happens When A Country Defaults?

This section highlights the core of this article. In this section, I will outline the top ten potential consequences of a country defaulting:

1. First and foremost, currency of the country can be devalued. This can make it expensive to import products. Additionally, export businesses might suffer due to selling products and services cheaper in short term. For exporters, currency devaluation is a double edge sword; when services and products get cheaper, it increases their demand. Exports become attractive and raises competition in market. As exports are cheaper for foreign countries, they tend to buy more from the defaulted country. Additionally domestic service providers might benefit due to foreign investments and tourism boosts due to foreigners visiting more frequently as it happened after pound devalued in 2016. Hence default has positive effects for the country too.
2. Secondly, debt can be restructured such as by extending the loan payment date or by reducing the loan amount or by further devaluing the currency.
3. Austerity measures might be followed which includes spending cuts and tax increase.
4. Living standards of people can also be impacted. It might start with riots on the streets leading to banking crises. The core reason for banking crises can be that the people might attempt to take all of their money out of the banks due to uncertainty and confusion. The chances of banking crises might increase, as an instance by up to 10% and the government may close down its banks to avoid money withdraw. Occasionally, withdrawal is permitted but capital controls are imposed.
5. Countries defaulting on foreign currency debt might also end up defaulting on local currency debt. This means that if you bought treasury bonds and the country defaults on foreign currency debt then you might not receive your bond periodic payments.
6. Unlike business or individual bankruptcies, assets of a country are not repossessed. However occasionally military actions are followed when countries default. As an instance, Britain attempted to occupy Egypt when it defaulted in 1880s.
7. Turmoil can be experienced in stock market. This can be due to uncertainty in market. No one might willing to buy anything. Many investors might even decide not to do business with the country until the situation is stable.
8. Governments may refuse to pay any money or reduce the borrowed money as it happened in Argentina in 2001.
9. The country can face loss of reputation, its rating might decline which makes it harder to borrow money in the future.
10. GDP can slow down by up to 2% however it is usually for short term only (1–2 years). Cost to borrow money might even increase up to 1%. Due to higher export demands, current account deficit can decrease and this in turn ends up increasing economic growth. Again, there are some positive side effects.

Defaults can be avoided by restructuring debt agreements and to seek help from a guarantor (IMF)

Countries That Have Defaulted In The Past

It is probably worth mentioning that many countries have defaulted in the past.

Furthermore, it is not surprising for a country to default.

This is a list of famous sovereign defaults:

• Venezuela: 2017
• Greece: 2015
• Ecuador: 2008
• Argentina: 2001
• Russia: 1998
• Mexico: 1994
• France: 1958
• Egypt: 1880s
• Spain: 15+ times by 1939

It is not uncommon for a country to default

Why Can’t Countries Reprint More Local Currency?

Someone asked me this question recently. They were wondering why a country simply doesn’t print local currency to pay off local currency debt.

Here’s my take of it. Although there is more to it but this is one side of the coin:

Printing more money might lead to inflation. This is mainly as supply of money increases, costs of products can end up increasing due to their increase in demand. As a consequence, currency can also be devalued which can be often worse than defaulting. Additionally gold standard and the concept of shared currency prevents countries to print money as and when they want — although gold standards and shared currency is not applicable to all countries.

If you want to know more on how to compare countries along with different economical indicators then have a look at my article “How Should I Compare Countries?”.

Sovereign default can be predicted which I will be covering in future.

Summary

This article explained what default means and then the article outlined consequences of a country defaulting. Finally a number of countries were mentioned that have defaulted in the past.

This topic is complex in nature as different countries behave differently. Tu is article presents a possible set of scenarios that are worth considering.

The key point to take away is that sovereign default can put a country into a tough situation for short term, can impact its reputation and living standards of its people, but it is not uncommon for countries to default. Currency devaluation can help exporters and makes it cheaper for foreign countries to buy its products and services. It then helps its economy to grow as current account deficit declines. Additionally, many countries have defaulted in the past. –  Farhad Malik

Dr. Grieve Chelwa PhD

Zambian social media platforms, especially WhatsApp groups, were very active yesterday sharing and discussing the publication of the World Bank’s latest International Debt Statistics Handbook. I’ve lost count of the number of friends on WhatsApp who sent me the hyperlink to the download page of the book. Ordinarily, the publication of the Debt Statistics Handbook goes without notice in much of the world and especially in Zambia. So why all this interest this time around?

Well, in the last couple of weeks, “Zambia and its debt” has been a topical issue with prominent coverage in the Financial Times and Bloomberg among other international outlets. The latest round of interest comes on the heels of an official request from the Zambian government for a payment holiday on upcoming debt service obligations. So this week’s publication of the World Bank’s International Debt Statistics Handbook (hereafter IDSH) fell into this milieu of strong emotions around Zambia and its debt.
So why all the fuss? Well, all the commentary on WhatsApp, Twitter and Facebook on the the IDSH zeroed in one single statistic reported at the top of page 150: Zambia’s external debt at the end of 2019 was $27 billion dollars! This is certainly a huge number and would suggest that the country’s external debt was almost equal to the size of the country’s GDP. And for many of yesterday’s commentators, this number was evidence that the Zambian government was understating the true nature of its external debt. For example, Finance Minister Bwalya Ng’andu recently told parliament that external public debt was $11.97 billion dollars, a number that is about $15 billion lower than the World Bank’s number.

So what is going on here? The confusion stems from the conflation of Total External Public Debt with Total External Debt. The two aren’t the same thing even though they seem like they are.

Total External Public Debt (the first one) refers to all foreign denominated debts that are owed by the Zambian government. This includes external debt directly owed by the government and debt guaranteed by the government but contracted by government or quasi-government entities. For example, Total External Public Debt would include the (in)famous Eurobonds and/or any guarantees issued by the government in favour of, for example, the Zambia Electricity Supply Corporation (ZESCO).
Total External Debt, on the other hand, is the sum total of all the external debt owed by entities domiciled in Zambia. This includes debt owed by the Zambian government (as defined above) and that is owed by Zambia’s private sector. Total External Debt would include external debt owed by the government plus external debt owed to foreign creditors by, for example, the privately-run mining industry.

By definition, and given the above, Total External Public Debt can never exceed Total External Debt. The two can be equal which would imply that all external debt is government debt. In practice, Total External Public Debt tends to be lower than Total External Debt primarily because the private sector also borrows from foreign creditors.
So what does all this mean for the publication of the IDSH and the commentary that followed? Well, the first thing is that the World Bank and the Zambian government are saying the same thing. The fourth line item on page 150 of the IDSH says that Total External Public Debt at the end of 2019 was $11.1 billion [1]. Minister Ng’andu told Parliament on 25th September 2020 that “[total] external public debt stock increased to US$11.97 billion as at end-June 2020 from US$11.48 billion at the close of 2019…”. As one can see, these numbers are pretty much around the same ballpark.

The June 2020 number, as reported by the Minister, is slightly greater than the 2019 numbers (from the government itself and the World Bank) because of the likely accrual of additional external public debt in the first 6 months of 2020. The 2019 numbers by the World Bank and from the government are slightly different from each other because of likely accounting/reconciliation issues. Interestingly, government’s number for end 2019 is greater by about $300million. This might be the result of one public guarantee or the other that was not captured by World Bank statisticians.

So in many ways the World Bank’s IDSH is telling us nothing new beyond what the government has already told us regarding the country’s external public debt.
As to whether the $11 billion number (from both the World Bank and the government) is to be believed is a different question altogether. I have good reason to believe that the “true” external public debt is around this figure. Margaret Mwanakatwe, Ng’andu’s immediate predecessor at Finance, instituted a debt reconciliation drive about two years ago and committed the Ministry of Finance to issuing quarterly debt briefings (although the frequency of the briefings has reduced lately). This was in response to heavy domestic and foreign criticism that the Zambian government did not know the true extent of its debt obligations. It appears the Ministry of Finance has gotten on top of this issue and, for example, recent IMF statements on the country are no longer broaching the subject of debt reconciliation as they did a couple of years ago. Economist Trevor Simumba, however, believes the true extent of external public debt might be higher owing to the opacity around debt contraction from China. He might very well be right.

Before concluding, I want to briefly talk about one aspect that struck me from the IDSH that few talked about yesterday and that I had been unaware of. According to page 150 of the IDSH, Zambia’s private sector owes a whopping $14.7 billion to foreign creditors! In other words, private multinational corporations, private companies and private individuals all domiciled in Zambia collectively owe about 54% of Zambia’s Total External Debt (recall the definition of this from above). This implies that Zambia’s private sector is just as indebted to foreign creditors as the Zambian government is. In actual fact, the private sector owes much more.

As a country, we have not debated and thought about private sector debt as much as we should. It’s worth engaging with this issue because, for one thing, economic crises can result from the unsustainable buildup of external debt by the private sector (see the Asian Financial Crisis) just as much as they can from unsustainable buildup of public debt. Second, pressure on the domestic currency (the Kwacha) can also arise from the demand for foreign currency by the private sector to meet its external debt obligations just as it can from demand by the government. So in a nutshell, any talks about devising a strategy for Zambia’s external debt should include discussions about external debt held by the private sector.

Notes:
[1] The IDSH refers to it as “Public and Publicly Guaranteed Debt”

The Author teaches economics at the Graduate School of Business at the University of Cape Town. From 2016 to 2017 he was a postdoctoral fellow at the Center for African Studies at Harvard University. He holds a PhD in Economics from the University of Cape Town. His twitter handle is @gchelwa.

Press statement for immediate release by the UPND Deputy National Youth Chairman Gilbert Liswaniso

17th October 2020

WE ARE ORGANISING A THOUSAND CAR CONVOY TO MPIKA TO BACK HH

We wish to heartily welcome the invitation by the Zambia Police to summon President Hakainde Hichilema to Mpika for questioning and as usual, over a matter he has no hand on. This time around however, HH is not going alone, a thousand cars from all over the country will join him and as we drive along, more and more cars and buses will follow us.

We have had enough of this nonsense and abuse of one man by Edgar Lungu, and the one sided law enforcement by Zambia Police of only one section of the population, while leaving the PF supporters and cadres enjoy unfettered protection of being above the law. IG Kanganja must therefore arrest the thugs that closed HH’s route with rocks and tyres and further, discipline the Police officers that abetted such a criminal act in a public road and in full public view. The pictures are in the public domain.

We call upon those that will not make it to Mpika to hold peaceful protests in their Townships and villages and all Pronvicial capitals and districts. We further call upon our brothers and sisters in the diaspora to hold peaceful protests at Zambian foreign missions and send a clear signal to the International community that if they don’t intervene timely, the once peaceful nation of Zambia is headed for troubled waters.

The police call out of HH is not by the Police, but is under the instigation of Mr Edgar Lungu. How much more can one human being spew so much hate and bitterness against another human being like Lungu is doing to HH. What sin has Hakainde Hichilema committed to be persistently abused, persecuted and humiliated? Is the death of HH what will finally make Mr Lungu happy? Is it a sin to aspire for public office for HH in a so called democracy?

We are aware that the PF want to detain HH to harm him so that he dies before the 2021 elections. Mr Lungu himself has maintained that HH will not enter State House. Isn’t that a declaration of a death sentence? We won’t allow that!

We will also not allow this injustice to continue because Zambia doesn’t only belong to the PF and their supporters. We therefore warn them to desist from always making people angry in the midst of such poverty and hunger. People are suffering because everything under the PF has collapsed, and instead of fixing the mess they are subjecting our citizens to, they are always seeking for ways to make us angry. What sort of people are these?

We will meet in Mpika and please Kampyongo and Kanganja, don’t forget to bring along your newly acquired huge armoured vehicles and big guns, let’s hope they will be enough to go round in all Townships villages and Districts in the Republic. Enough is enough!

Gilbert Liswaniso
Deputy National Youth Chairman
UPND

PF SCHEMING TO ARREST HH, MPs OVER KASAMA TRIP

The Zambia Police command is under pressure from the PF Secretariat to have the UPND President Hakainde Hichilema and some of his MPs arrested over the successful trip to Kasama where they received very good reception.

Some meetings held late last evening at State House deliberated what they thought could be an appropriate charge they could slap the UPND President Mr. Hichilema to keep him out of circulation from political scenes for sometime, especially after the great reception he has been receiving on the Copperbelt and Northern Provinces

State House sources think there is some wind of opportunity to access Mr. Hichilema’s body by PF state apparatus, and harm him while in police custody.

“I can almost bet with you that Mr. Hichilema or at least some of his MPs, especially those who escorted him to Kasama will be summoned latest by Friday or early next week. They want to implicate them into fake charges which are still being determined by the PF. The idea is to access his body and that of his MPs especially with Bill 10 coming up now”, sources close to the meeting disclosed.

Sources said Home Affairs Minister Stephen Kampyongo is the masterminder of this scheme to have HH and some of his MPs arrested, especially after what they considered a successful mission in having the NDC President Chishimba Kambwili thrown behind bars.

“Of course some people in the meeting had very serious reservations about going ahead with such evil schemes of arresting political leaders at a time emotions in the country are running very high. Some also thought arresting HH or even his MPs and subject them to be appearing in Kasama court will give them a huge platform for campaigns in that region like it has just happened with the arrest of Patrick Mucheleka and others”, said the sources close to the operations.

Other insiders in the meeting revealed that President Edgar Lungu and his despotic regime has been put under the spotlight by the international community with most Western nations already considering targeted sanctions against him and some of his close associates in the PF.

“President Lungu has been specifically warned against any more repressive actions against his opponents especially with all the bad news coming out of Zambia, about the likely debt default which the PF are trying to avoid ahead of the elections,” sources revealed.

-CIC PRESS Team

THE Lusaka High court has dissolved a marriage of State Counsel John Sangwa to Vivien Nsingo Sangwa.

Judge Nicole Sharpe-Phiri said in her judgment that on the totality of the evidence before her, she was satisfied that the marriage solemnised on June 6 1993, at the University of Zambia chapel in Lusaka between the two had broken down irretriev-ably in terms of section 8 and 9 (1) (d) of the Matrimonial Causes Act no. 20 of 2007.

“ I accordingly decree that the said marriage be dissolved and a decree nisi is hereby granted dissolving the marriage,” Ms Justice Phiri said.
She however said that the decree is to be made absolute within six weeks of the date hereof, unless sufficient cause be shown to the court, why it should not be so made.

Mr Sangwa in his evidence contended that they had lived apart for a period of two years immediately preceding the presentation of the petition and that their marriage had broken down irretrievably on that account.

The petition by Mr Sangwa was uncontested and Ms Nsingo provided her consent to the divorce.
Mr Sangwa on February 6, 2020 filed for the dissolution of his 26 year old marriage to Ms Nsingo.

He stated that after the celebration of the marriage, the couple lived together as husband and wife at Sub Division 1 of Sub -Division ‘U’ of farm no 215a, Lusaka West.

He stated that they were both legal practitioners by profession and had three children.

Mr Sangwa stated that to the best of his knowledge there were no other children now living that have been born to the petitioner during the substance of the marriage and they have been no previous proceedings in any court in Zambia or elsewhere with reference to the marriage or between the petitioner and the respondent with reference to any property of either or both of them.

He further stated that there were no proceedings continuing in any court outside Zambia, which are in respect of the mar-riage or which are capable of affecting its validity.

He stated that there was an arrangement between him and Ms Nsingo for the maintenance of the children of the family.

“The said marriage has broken down irretrievably by reason of the fact that the petitioner and the respondent have lived apart for a continuous period of more than five (5) years immediately preceding the presentation of this petition : from December 2014 to date,” Mr Sangwa stated.

NGAMBELA MUKELA MANYANDO FACES REVOLT FROM BRE INDUNAS

– As Indunas want reforms at BRE

By Kangwanda Mucembele

The prime-minister of Barotseland, Ngambela, sope, Minyoi RT Mukela Manyando is facing rebellion from the entire BRE Kuta.

According to the sources within the Kuta, they have disclosed that Ngambela mukela manyando has completely failed to man up and show leadership in Barotseland.

A group of Indunas has since called for his dismissal or his resignation from the Kuta with immediate effect.

Indunas have disclosed that, Mukela has failed to advise his majesty the Litunga Lubosi imwiko II on many serious issues. The issues of protecting the land, Chiefs , projects, BA1964 and the unity in the kingdom. Further more Indunas have said mukela is too weak to lead the highest authority in the land, because he lacks courage and determination. Mukela manyando is so afraid of his majesty and he can not advice or tell him the truth, what he does it’s only yes sir yes sir, disclosed Indunas.

However, Ngambela mukela manyando is reported to have travelled outside Barotseland. Mukela has also been accused of serving Zambian government’s interest at the Kuta instead of the people of Barotseland.

If you happens to compare between Mukela and immediately former Ngambela nyambe mwenda you will find that there is a big difference. Mwenda was a man who has Barotseland’s interests first , he was so proud and he maintain the status quo and defended the kingdom well despite his crookness. Mwenda used to tell the Litunga the truth and before anything he could convey a meeting of Indunas and deliberate hot issues and then take them to the Litunga. The reason you used to see that there was pressure from Zambian government.

Since his departure the issue of Barotseland agreement of 1964 talks and negotiations left with him because mukela is a coward who is scared to even command the permanent secretary to the Kuta. We don’t have leadership at the Kuta currently.

Once they give him a brown envelope from usually government visitors he forgets about the Kuta’s role.

For the past few months, some of the BRE Indunas have not had access to met his majesty the Litunga.

Sources further said, it’s disheartening to see that some districts Kutas have empowered themselves and Indunas are getting monthly salaries and yet here at the headquarters “Namuso” there is completely nothing like that. Indunas do not get paid only once in a while and it’s pecks. Imagine the Kuta has no any project that is bringing revenue. And right now we hearing that all these mambeti are planning to resign and look for new life since they are not looked well by the Kuta despite so many monies that are coming from many different venture that the Litunga is pocketing with few individuals.

Indunas from Mwandi Kuta of his Royal Highness senior chief Inyambo Yeta who is in charge of Mwandi, Sesheke and Mulobezi are empowered, have projects that are bring in enough revenue and everyone is on s monthly salary including watchmen. Another is Kaanja Kuta of senior chief Lukama who come on the throne just two years ago he has reformed and put every Induna on salaries, he is currently bringing new projects for the Kuta to empower the people. Chief Lukama Mukiti sekeli is in charge of Sioma and shangombo districts. Even in libonda Kuta , the African parks are paying the Indunas and mambeti very well.

Indunas have revealed that, the trend of allowing only one person and few of his subordinates to be benefiting should come to an end and let everyone have a share.

Indunas further discloses the deals that the Litunga has blocked such as councils and zambeef taxes that he chews alone. Liuwa national park, markets , Zambian pipe money , etc

Ngambela mukela manyando was the first Ngambela for Litunga lubosi imwiko II since 2000 until 11th October 2006 when he was forced to resign by the BRE Kuta over land scandal. He was brought back at the Kuta again as Ngambela on the 17th January 2019.