CHAMA Fumba has wondered why it is fashionable to call out Hakainde Hichilema alone on privatisation in Zambia even when it is clear that many Zambians were involved in the process.

In a statement on his Facebook page, Fumba also known as Pilato said the concept of accountability was and should be broad, beyond political opportunities.

He said those that demand for accountability and transparency must do so not because it advantages them politically.

“Since there are so many Zambians dead and alive who were involved in the privatisation process in Zambia, why do we just focus on an individual (Hichilema)? Is it because he wants to become president of this country?” Fumba asked.

He wondered if those attacking Hichilema were going to still crucify him for his involvement in privatisation process if not for his being a threat to those in power.

Fumba asked why those calling for HH’s blood on the privatisation issues were not demanding to know what Edith Nawakwi, President Edgar Lungu and Elias Chipimo and many others did and what they benefited individually.

“I ask these questions because failure to be clear on the crusade in demanding for accountability and transparency may reduce the whole trip to a fight against an individual. The scope for the fight for accountability and transparency regarding the privatisation process should be expanded beyond an individual if our fight is to be credible,” he said.

He wondered whether those pursuing Hichilema would sustain the fight demanding details of what happened during that process or would go back to sleep if he retired from politics tomorrow.

“What about leaders who were in government; to what extent did they fail in their responsibilities to protect the interests of our people? If Madam Nawakwi can confidently claim that an individual dribbled them in the privatisation process, what did she and her government do about it? Why does she feel the need to act now? What did she do that allowed an individual to take advantage of the whole process?” Fumba asked.

He wondered if Nawakwi was going to demand an explanation from Hichilema today if Hichilema was a poor man living at his farm in Namwala.

“To the young people of this country, I would like to challenge you to take the demand for accountability as your duty and should be beyond partisan politics. As it can be observed, politicians will only demand for accountability and transparency when it benefits them and their career prospects,” he said.

And Fumba said the concept of democracy demands that “we allow others the same room of expression as we feel we deserve”.

Fumba lamented the abuse and ridicule of Nawakwi after the radio programme where she had an altercation with Hichilema.

“Now that the excitement about this seems to be calm and bearable, I would like to share my thoughts to the discussion and probably ask a few questions. I must quickly run to defend madam Nawakwi from those that have decided to insult her and her business simply because she asked unromantic questions,” he said. “The concept of democracy demands that we allow others the same room of expression as we feel we deserve. The abuse and ridicule towards madam Nawakwi that I saw after the radio programme is backwards and any person who believes in democracy must condemn it with the arrogance they can afford.”

Fumba said Nawakwi had the right to ask questions even if those questions have the power to destabilise people’s comfort just as any other person could also ask her in return.

He cautioned young people in the country to resist the temptation to demonise those that ask difficult questions.

Fumba said the youth must dare to engage no matter how difficult it might be to respond.

Further, Fumba said young people have the power to influence the reality of today and of the country’s future and should therefore aspire for a superior level of engagement with each other no matter the environment.

NAWAKWI IS NOT THE BEFITTING PERSON TO STRETCH AN ACCUSING FINGER

Not to defend and protect the accused, in this case Mr. Hakainde Hichilema and the atrocities which could have been committed by all the crooks, corrupt and dishonest individuals during the ill-conceived process of putting the state owned institutions into private hands referred to as privatization.

It takes a crook to catch a crook. Mwayamba Kuululana (you have started exposing each other). Nothing will save, other than death, any living criminal who could have criminally involved in the sale of Zambia people’s companies in the name of privatization.

In fact, Madam Edith Nawakwi being the finance minister at the time; in comparison to the role which Mr. Hakainde Hichilema could have played at the time in question, Madam Edith Nawakwi has no option but to give us more answers than Mr. Hakainde Hichilema.

The sleeping government of one Dr. Edgar Chagwa Lungu has lamentably failed to come up with an inquiry into the privatization of the state owned institutions; even after making a lip and fake pronouncement – reasons best known to themselves.

PF, whose trademark is political scandals – The party will say this now and in the next minute, change its mind (if has any functioning mind that is) and do the total opposite. That is PF in power. Jokers, if not manipulators.

MMD just like its byproduct PF was a very careless and corrupt party in power.

We know all of you and have enough detailed information of what could have transpired during the entire evil episode of privatization.

On behalf of the people of Zambia, you shall all be made to answer and pay the price.

Umulandu tabubola.

You will do the people of Zambia and us good, if you can stop washing your dirty linen in public. You know each other and your misdeeds.

Stop the dirty, you are not the befitting person to accuse the other.

Issued by President Enock Roosevelt Tonga (ERT) of 3RD Liberation Movement (3RD-LM) and the current Bonse Alliance – BA2021 Intermediator.

Date issued: Today Sunday August 30, 2020.

Let’s do it for Zambia!

CIC EDITORIAL ANALYSIS.

THE OFFICE OF THE UPND PRESIDENT MUST TAKE NAWAKWI TO COURT WITHOUT FAIL TO PROTECT HER SEXISM REACTIONS TOWARDS HER FROM THE PUBLIC.

Yesterday we gave an insight on the other side of the story away from politics and privatisation President Nawakwi is championing. However as the saying goes “Society is more sympathetic and understanding to a man and unforgiving to a woman” 21st century politics have seen gender equality in all aspects of leadership ranging from Military, corporate companies and politics. In 15th Century where a woman had no say in the running of the political affairs of the country other than cooking and raising Children it will take close to 5 centuries to come in order for the voice of the woman to be understood in a subjective and figurative way without considering their sex.

To this end feminism is usually a strongest weapon a woman has in her last armoury hardware to shield herself from the man’s dominated world and sexism remains the biggest weakness and deadly weapon every woman’s voice is used to be shuttered to have no say.

The UPND office of the president will do justice to Zambians and president Nawakwi to save her from the sexism embarrassing comments pouring on her from all walks of life.

Yesterday night CIC observed attentively what the FDD leader was saying and some of the touching areas to recharge her base support was Sexism which according to her she said she was not bothered because it’s being used on her to disadvantage her voice. But analyzing further what she meant we quote
one of the posts by the The Lady’s Voice sub-department of CIC EDITORIAL section today which quoted Ms Prudence Chikonka who explained the following that :

“Women should not ride on the fact that because they are women, they are at liberty to provoke men and think they can get away with it! Who doesn’t know that to date Nawakwi has been trying so hard to provoke HH? There’s an adage in Bemba which says, ” Akanyelele inga wakapatikisha kalasuma”! Who in their right senses would claim that they don’t know what Nawakwi and her sponsored friends are up to in this whole privatization issue? I am a woman and I don’t expect any kind words from a man if I provoke Them! The best I would do to gain respect from men is never to step on their toes provocatively!!”

Reading the above quote gives us a different thought if indeed president Nawakwi is ready to handle the heat in any amount as it comes even if Sexism is to be factored. Is she really not bothered about Sexism where she feels people are simply attacking her sexuality instead of the issues she’s raising. We don’t think she’s not bothered actually the fact that she mentioned it tells us how much she’s bothered and its her wish to keep misleading the Zambians on the basic realities in public domain because whatever response in opposition to her is Sexism. Applying Ms Prudence Chikonka’s words her sexism indeed is no passport to provoke men (HH) on issues she’s aware are not true.

CIC and Zambians are not stupid neither where they born yesterday to be mislead on account of lies from President Nawakwi and the game of sexism will get nasty and very dirty if she won’t come back to her senses many women so far distancing themselves from her actions knowing very well society respects and understands men well than a woman technically it’s still the man’s world where lies in president Nawakwi would not be spared on any account.

To this end taking her to court will give her an opportunity to be protected from the public ridicule which currently internet is not showing any sign of mercy towards her. HH must demand huge sums of money for damages since other president’s where not this clever or interested to scandalise HH for being rich on account of privatization which he never was in charge of thence Nawakwi has presented herself as the long awaited sacrifice to put this matter to rest once and for all in court by proving how illegally or illegalities that occurred which would have made Zambians richer than HH.

Another advantage of taking Nawakwi to court is for her own protection because as a mother and a woman not everyone will rejoice the feminist insults coming towards her. Her behavior have the potential to erode all the gains made in women participation in politics because they will feel if you have any issue to air out your sex will be used against you.

Let Nawakwi be sued to prove her allegations.

CIC PRESS TEAM

EDITH NAWAKWI’s LETTER OF INTENT TO THE IMF – 1999.

By Vinoria Mwewa

Evidence showing Edith Nawakwi was responsible for privatization of ZCCM and other government assets.

The following item is a Letter of Intent of the government of Zambia, which describes the policies that Zambia intends to implement in the context of its request for financial support from the IMF. The document, which is the property of Zambia, is being made available on the IMF website by agreement with the member as a service to users of the IMF website. Lusaka, March 10, 1999
Mr. Michel Camdessus

Managing Director

International Monetary Fund

Washington, D.C. 2043.

Dear Mr. Camdessus,

During the last few years, Zambia has continued to make progress in stabilizing the economy and implementing structural reforms, including the privatization of state enterprises, the reform of the public service, and the strengthening of the banking sector. The country has experienced a strong growth of economic activity in the nontraditional sectors since the start of our adjustment program, and the fight against inflation has born results. The recent progress on the privatization of the copper mines has been crucial in creating an enabling environment for economic growth in the coming years. Notwithstanding these encouraging developments, Zambia’s economic recovery remains fragile, and we must continue with our macroeconomic stabilization and structural reform efforts in order to establish the conditions for sustained economic growth.

The attached Memorandum of Economic and Financial Policies of the government of Zambia describes the policy objectives for 1999. The government’s medium-term macroeconomic and sectoral policy objectives are embodied in a policy framework paper (PFP) for the period 1999-2001. In support of the program for 1999-2001, the government hereby requests a three-year arrangement from the Fund under the Enhanced Structural Adjustment Facility in an amount equivalent to SDR 254.45 million (52 percent of quota).

We believe that the policies and measures set forth in the attached Memorandum are adequate to achieve the objectives of the program, but will, if necessary, take any additional measures deemed necessary for this purpose. During the period of the arrangement, we will consult with the Fund on the adoption of any such measures in accordance with the Fund’s policies on such consultations. The government of Zambia will provide the Fund with any information that may be requested for the purpose of monitoring progress under the program.Yours sincerely,

/s/

E.Z. Nawakwi

Minister of Finance and

Economic Development Attachment: Memorandum of Economic and Financial Policies Memorandum of Economic and Financial Policies
I. Introduction
This memorandum summarizes the government’s medium-term adjustment strategy for the period 1999-200 1 The medium-term strategy is elaborated in the policy framework paper for 1999-2001. and presents its economic and financial program for 1999.
Our main macroeconomic objectives for the period 1999-2001 are to achieve average economic growth of about 5 percent a year, further reduce inflation, and strengthen the external position. To that end, we will continue our stabilization efforts through prudent financial policies, complemented by structural reforms, specifically public service reform, privatization, a strengthening of the banking sector, an improved legal framework and the provision of growth-enabling infrastructure. These reforms will be essential for removing the bottlenecks that hamper the development of the private sector, which, in turn, will create the conditions for making a dent in the widespread poverty through job creation in the private sector.
The main sources of economic growth over the medium term are in mining, agriculture, tourism, and export-oriented manufacturing:
We expect copper production to grow by some 10 percent a year during 1999-2001. In the wake of the recent economic crises in Asia, the copper price has weakened considerably and is projected at about US$1,600 per metric ton over the medium term.
The government recognizes that sustained growth in agriculture , which contributed about one-fifth of GDP over the 1990-97 period, will require the elimination of bottlenecks on the supply side, notably through improved roads, increased access of farmers to new production and harvest technologies, and wider access to financing. The government will also emphasize and stimulate the role of the private sector in agriculture and refrain from intervening in the marketing of agricultural products and input supply, except in the context of officially declared emergencies and specifically targeted poverty reduction schemes. Agricultural production is projected to grow on average by some 7½ percent a year, driven importantly by the nontraditional sectors, including cotton, tobacco, horticulture, and floriculture. Past agricultural reforms, including the liberalization of prices and the privatization of support services, processing, and distribution, have encouraged new private sector initiatives.
Several recent developments have affected tourism positively, including the establishment of a number of private airlines and the leasing to the private sector of government lodges.
The restructuring of the manufacturing sector has been accelerated by trade and exchange reforms, as well as by progress in privatization and the removal of restrictions on private sector activities.
The tariff reform of 1996 and the elimination of the import declaration fee in 1998 have been particularly beneficial in enhancing the attractiveness of producing for exports. A continuation of these policies should encourage further growth in these sectors.

The growth projections are predicated on normal weather conditions and a steady increase in investment to 21 percent of GDP in 2001 from 14½ percent in 1998, with the bulk of the increase originating from foreign investment in the mining sector. Improved macroeconomic conditions and a strengthened banking system should help raise the national savings rate by about 7 percentage points of GDP while reducing the savings-investment gap by about 1 percentage point between 1998 and 2001.

The medium-term fiscal strategy will aim at reducing the overall fiscal deficit to about 1 percent of GDP by 2001, which will require domestic fiscal surpluses of about 1 percent of GDP a year (excluding exceptional lending to the mining parastatal (ZCCM). In view of the limited scope for raising substantially the revenue- and expenditure-GDP ratios, the need for expanding investment in infrastructure and social services will require a significant reallocation of public outlays. The lowering of the combined wage and interest bill as a share of total expenditure over the medium term will create room for stepped-up expenditure in priority areas. As the scope for raising tax rates and introducing new taxes is limited, the revenue effort will need to come mainly from a further strengthening of tax administration, while avoiding new tax exemptions and special regimes. We also intend to undertake a study of the structure of corporate income tax rates, with a view to unifying these rates in a revenue-neutral manner.
The main objective of monetary policy is reducing inflation through an appropriately tight policy stance, notably by controlling the expansion of reserve money and maintaining positive real interest rates.
The privatization of state enterprises is key to the government’s efforts to raise efficiency and bolster economic growth. In January 1999, the government and a foreign mining company reached firm understandings on the sale of the main asset packages of the ZCCM, which is expected to take place by end-March 1999. As regards the nonmining sector, we plan to do the following:
offer for sale a minority shareholding and management rights in the telecommunications company (ZAMTEL);

concessioning of the railway system;

privatize the Zambia National Commercial Bank (ZANACO);

instruct the Zambia Privatization Agency (ZPA) to explore the options for divestiture of the electricity company (ZESCO), parastatals in the transport sector (the Njanji Commuter Company and ZAMPOST), and the National Savings and Credit Bank;

ensure that the Zambian and Tanzanian privatization agencies will submit recommendations to their respective governments on options for private sector participation in the operations of the commonly owned TAZARA railway and TAZAMA pipeline.

The government adopted on September 1, 1997 a comprehensive public service reform program , with the twin objectives of reducing excess employment in the public sector and improving the delivery of public services by, inter alia, eventually offering a more competitive remuneration. Some 15,500 public workers were retrenched between December 1997 and end-1998 under this program. The original plan envisaged a reduction in the size of the public service to 80,000 employees by end-1999. However, an updated payroll analysis suggests that such a sharp reduction in the public service cannot be realized without reducing employment in education and health care. With the assistance of the World Bank, we are carrying out more detailed work to determine the optimal size of the civil service in the medium term. Nonetheless, for 1999, we are targeting a reduction in the number of civil servants to 112,500, which entails removing 7,000 civil servants from the payroll through retrenchment, natural attrition, and the hiving off of public institutions. Owing to delays in the retrenchment of pensionable civil servants in 1998, we envisage an extension of the timetable for the implementation of a revised program through 2001. A new civil service remuneration structure, which will address, inter alia, the significant compression in the pay scales, will be introduced after the substantial completion of the retrenchments, but with the understanding that the central government wage bill will not exceed 5 percent of GDP.
The liberalization of the trade regime has contributed importantly to the expansion of private sector activity. The government intends to complete this process by following up on its commitments under the Cross-Border Initiative, as well as by reducing import tariffs to a weighted average of close to 10 percent. To this end, we also intend to reduce the maximum import tariff rate from 25 percent to 20 percent by 2001.
During 1999-2001, we intend to make significant progress toward the attainment of external viability by
fostering a stable macroeconomic environment;

maintaining trade and exchange rate policies that are conducive to the further expansion of nontraditional exports;

revitalizing the mining sector, led by the privatization of the ZCCM;

raising national savings;

increasing gross official reserves to the equivalent of about three months of imports.

Zambia’s heavy external public debt burden will require continued reliance on debt relief and concessional balance of payments assistance for the foreseeable future. We intend to make a request for debt relief under existing mechanisms in early 1999. In addition, we hope to qualify for assistance under the Heavily Indebted Poor Countries (HIPC) Initiative, as it is not expected that the external debt burden can be reduced to sustainable levels without such supplementary debt relief. We recognize that consideration for participation in the HIPC Initiative will require a strong track record under Fund- and Bank-supported programs, improvements in our capacity to produce accurate debt and external sector statistics, and the maintenance of an accurate database on social sector outlays.
The widespread poverty in Zambia remains a key concern. The government has prepared a National Poverty Reduction Plan, which aims to reduce the overall incidence of poverty from the current 70 percent of the population to 50 percent by the year 2004. This is to be achieved through rural development, increased investment in infrastructure, the development of human resources, and targeted poverty reduction programs. In this regard, we intend to allocate at least 36 percent of domestic expenditure (excluding debt service) to the social sectors in 1999-2001. We also intend to promote the construction of dwellings and home ownership through the President’s housing initiative, which is expected to gain momentum in 1999.
The government’s macroeconomic objectives for 1999 are to achieve real GDP growth of 4 percent; reduce inflation to 15 percent (end-of-year basis); and strengthen the external position by adding some US$120 million to gross international reserves. The principal structural reforms in 1999 relate to public service reform, privatization, and the strengthening of the banking sector.

Our main fiscal policy objectives are to reduce inflation, to reconfigure the expenditure profile toward high-priority sectors, and to contribute to an increase in national savings. We will aim at limiting the overall fiscal deficit to K 250 billion (3.2 percent of GDP) and attach great importance to controlling firmly the government wage bill and implementing a restrained public service wage policy. As part of the budget process, we will in 1999 continue to operate a contingency reserve mechanism to cope better with unforeseen outlays and revenue shortfalls.
Domestic revenue is programmed to increase by 30 percent to K 1,460 billion in 1999, which takes into account the improvements in tax administration, notably in personal and company income taxes. 2 Also, we are continuing to step up our efforts to combat smuggling and customs fraud. In this regard, as part of the customs modernization project, antismuggling operations started in November 1997, and the collection of excise duties was tightened, including through the closure of major loopholes, during 1998. Furthermore, we expect positive effects on value-added tax (VAT) and customs revenue from the ongoing computerization of controls on removals in bond and transit and customs declarations, as well as from increased cooperation with customs officials in neighboring countries.
To achieve the targeted improvement in revenue performance, it will be crucial to maintain the integrity of the tax system. With a view to protecting the tax base, we have revoked import duty and import VAT exemptions granted in September-October 1998 to three companies, 3 including ZESCO. We will ensure that the duty exemptions granted to the parliament 4 will be limited to goods imported through the National Assembly for use by parliamentarians in performing their official duties. In practice, this exemption will apply only to the importation of one official car for each parliamentarian. In addition, we will refrain from introducing any tax reductions, new exemptions, rebates, or any other preferential tax treatment in 1999, except for the suspension of import duties on agricultural machinery and equipment, and the specific tax concessions that were made in the context of the privatization of the ZCCM.
Total domestic expenditures (excluding the contingency reserve) in 1999 will increase by 29 percent to K 1,333 billion. As regards current outlays, the wage bill will increase by 21 percent to K 395 billion (5 percent of GDP), which will be achieved by limiting the average per worker pay increase to 22 percent (including wage drift), retrenching public workers, and setting limits on employment levels in 1999 (see ¶26 below). Domestically financed capital expenditure will increase by 23 percent over the 1998 budget provision, to K 170 billion. More than 25 percent of this amount will be used to improve the road infrastructure, and about 10 percent of the funds will be spent on water and sanitation facilities. Foreign-financed capital expenditure is projected at K 666 billion, of which more than 30 percent will be spent in the social sectors, 36 percent on infrastructure, about 13 percent in the agricultural sector, and about 9 percent on private sector development. Exceptional charges in this year’s budget consist of the retrenchment costs for 7,000 civil servants and the lending to the ZCCM of K 302 billion for the financing of the retrenchment of 7,500 workers and the settlement of arrears.
To strengthen the cash management of the budget, the government will establish a contingency reserve of K 147 billion in 1999, which will be utilized to offset unforeseen shortfalls in domestic revenue and external program assistance, and to cover unforeseen domestic arrears and interest payments up to the total amount allocated for each quarter. Any remaining amounts in the quarterly contingency reserve would then be allocated in the month following the quarter to projects that could not be funded in the original budget. The contingency reserve will also be used if a tightening of the fiscal stance is needed to counter unexpected macroeconomic developments.
The government is strengthening budgetary procedures, notably with respect to spending commitments, cash outlays, and domestic arrears. Two comprehensive audits of domestic arrears, completed in 1998, are being used to build a database for the monitoring and payment of arrears, as well as for the analysis of commitments. In addition, six principal budget management measures will be introduced in 1999:

quarterly auditing of arrears and commitments by the Ministry of Finance;

the establishment of a coordination cell in the Budget Office for cash release and monitoring of ministry monthly returns on commitments, expenditures, and arrears;

outstanding commitments of ministries at any time must not exceed 10 percent of their warrant limit without the specific agreement of the Permanent Secretary of Budget and Economic Affairs; 5
the rationalization of commercial bank accounts held by ministries, and, where appropriate, the transfer of these accounts to the central bank by end-June 1999;

the completion, by June 30, 1999, of a comprehensive inventory of capital projects, complemented by a review of the management and control of ongoing capital projects; and

the completion, by end-June 1999, of a feasibility study of a computer-based financial management information system.

The key to bringing down inflation is a firm control over the growth of money supply . Taking into account the programmed strengthening in 1999 of the net foreign assets position by almost 23 percent of beginning-of-year broad money, net domestic assets of the banking system will need to be reduced by about 2½ percent of beginning-of-year broad money. To provide sufficient credit to the private sector, which is projected to grow in line with nominal GDP, net bank claims on the government will need to contract by K 109 billion. The increase in treasury bill rates since mid-May 1998 has contributed to our objectives of stabilizing the kwacha and mobilizing financial savings. We will continue to maintain positive real interest rates.
With a view to keeping broad money growth within the program targets, the Bank of Zambia (BoZ) will carefully monitor the growth of reserve money. The targeted improvement in the net foreign assets position of the BoZ will require a decline in its net domestic assets of about 4 percent. On November 1, 1997, when the payments clearing house was transferred to commercial banks, the BoZ ended operation of its unsecured overdraft facilities to financial institutions. It will continue to refrain from providing unsecured overdrafts to commercial banks.

Notwithstanding the projected recovery in metals production and robust growth of nontraditional exports, the current account deficit (including official transfers) is expected to widen from an estimated 8 percent of GDP in 1998 to almost 9 percent in 1999. The balance of payments projections assume an average copper price of US$1,507 per ton, copper export volume growth of about 16 percent, and import volume growth of about 13 percent. The growth of imports mainly reflects higher imports of capital goods by the mining sector. With adequate external support, the BoZ will be able to build up its official reserves without putting undue pressure on the exchange rate.
The exchange rate of the kwacha is market determined , and the BoZ will continue to refrain from interventions in the exchange market that go against underlying market trends. We will closely monitor conditions in the exchange market and price and exchange rate developments in other major countries in the region, and we will adjust policies if exchange rate developments jeopardize the inflation objective or Zambia’s external competitiveness.
The external financing requirement before Paris Club debt relief is estimated at US$526 million in 1999 (excluding foreign-financed capital expenditure). Of this amount, US$175 million could be covered by World Bank program assistance, 6 US$20 million by the African Development Fund, US$50 million by the European Union, US$50 million by the United Kingdom, and US$12 million by Germany. The remaining financing gap (US$219 million) could be filled by debt relief.
The government intends to remain current on all its external debt-service obligations and start discussions with the Paris Club in early 1999 on the rescheduling of debt-service obligations falling due during 1999-2001. We will also make efforts to reach an agreement with Russia on the rescheduling of outstanding debt, consistent with the 1996 Paris Club rescheduling agreement, and with non-Paris Club bilateral official creditors, both on terms at least as favorable as Naples terms. We will also settle in 1999 payments obligations dating from the era of exchange controls that give rise to exchange restrictions under Article VIII of the Fund’s Articles of Agreement.

The program for 1999 envisages that a further reduction in the size of the public service will take place in the context of the restructuring of ministries, the hiving off of government units, 7 and the government’s long-term strategy to develop the sustainable capacity needed in the public sector to deliver high-quality services. With the assistance of the World Bank, we have drawn up a detailed implementation plan for the retrenchment of 7,000 public sector employees in 1999 to be achieved through (i) the hiving off of three government institutions with a total of 3,754 employees; (ii) the elimination of 500 positions in restructured ministries; (iii) 645 voluntary separations; (iv) natural attrition of 355 employees (on a net basis); and (v) the compulsory separation of 1,746 contractual daily employees. To ensure that the total cost of retrenchment of pensionable civil servants in 1999 will not exceed K 80 billion, we will adjust the benefits that separated civil servants presently can claim under the Public Service Pensions Act. An actuarial review of civil service pensions, which will specifically correct the anomalies in the various pension options under the present plan, will be submitted to the President by end-April 1999.
The monitoring of the targeted reductions in the public service will require reliable payroll data and effective controls on the establishment register. At present, inconsistencies exist between the payroll data of the Ministry of Finance and the establishment register managed by the Cabinet Office. By end-April, 1999, we will submit recommendations on improving the quality of the payroll data and establishing controls. In the meantime, the size of the public service will be monitored on the basis of the payroll data of the Ministry of Finance.

The government will continue to give high priority to the privatization of state-owned enterprises, including major utility companies, parastatals in the petroleum and transport sectors, and financial institutions. The following specific actions are envisaged in 1999:

offering for sale minority shareholding and management rights in ZAMTEL before end-September 1999;

requesting the ZPA before end-June to study options for the divestiture of ZESCO;

offering for sale or closing the Zambia National Oil Company (ZNOC);

before end-September 1999 putting out to tender the granting of concessions of the railway system;

tendering management rights on the operations of the National Airports Corporation in Livingstone, Ndola, and Mfuwe;

handing over ZAMPOST and the Njanji Commuter Company by end-June 1999 to the ZPA; and

ensuring the preparation by ZPA of options for the privatization of the Zambia National Commercial Bank (ZANACO).

Owing to the decline in economic activity, the financial position of the banking system remained weak in 1998. We are addressing this problem by pressing banks to step up their loan recovery efforts and, where appropriate, requiring changes in management in those banks. This policy has already led to a decline in the portfolio of nonperforming loans in recent months. In addition, the supervisory authorities will not hesitate to require new capital injections or the closure of banks that show capital deficiencies. In conjunction with these measures, prudential supervision of commercial banks will be further reinforced in 1999. The BoZ intends to strengthen off-site risk analysis through intensified training of staff and the use of an improved commercial bank database, which will be set up with Fund technical assistance. In addition, we have prepared an amendment to the Banking and Financial Services Act that, inter alia, would strengthen the supervisory powers of the BoZ and extend supervision to nonbank financial institutions. We intend to send a legislative proposal to parliament in early 1999.

We aim for the completion of the sales agreement on ZCCM’s largest asset packages by end-March 1999. The net amount of short-term debt and suppliers’ arrears (after deduction of the privatization receipts) to be repaid by the ZCCM holding company at the time of the transfer of the assets is projected at US$124 million, including US$110 million arrears to the electricity supplier (CEC). This financing gap will be covered in part as follows:

rescheduling of ZCCM debt to the CEC beyond 1999, amounting to US$50 million; and

assumption by the government of ZCCM’s debt-service obligations to the World Bank, amounting to US$23 million.

The net financing gap to be covered by the government is projected at US$51 million. Taken into account the uncertainties with regard to the financial position of the ZCCM, the program for 1999 includes a budgetary provision of K 151 billion (US$65 million) to cover the remaining liabilities emanating from the sale of the assets. If the debt settlement by the government is below this provision, the difference will go toward raising the targeted domestic fiscal surplus in the second quarter of 1999.

Recognizing the importance of a reliable and efficient energy supply for the economy, the government remains committed to the market-based pricing of energy products. The privatization of public enterprises in the energy sector will contribute to this effort by ensuring an environment that fosters competition and efficiency. In support of this objective, regulations make it possible for the private sector to connect to the power grid and import petroleum products. However, given the existing monopolies in the energy sector, oversight of energy pricing will continue to be necessary. To this end, the Energy Regulatory Board (ERB) will henceforth adhere to a price adjustment policy that allows for the adjustment of wholesale and retail petroleum prices in order to reflect costs, including changes in exchange rates and world market prices. With respect to electricity tariffs, prices will be set to reflect underlying costs and a reasonable margin. Price adjustments in energy products will be subject only to ex-post reviews by the ERB on the basis of the aforementioned criteria.

In the recent period, considerable progress has been made in improving the quality of monetary and balance of payments data. The BoZ will attach the highest priority to the elimination of the remaining inconsistencies in the monetary survey and further improve the timeliness of balance of payments data by implementing the recommendations of the November 1997 STA technical assistance mission by, among other things, speeding up the collection of bills of entry forms from customs offices. The Central Statistical Office will eliminate inconsistencies between the revised national accounts data and production data on the agricultural and manufacturing sectors. The Ministry of Finance and the Bank of Zambia will strengthen data reporting on external debt service.

The progress in the implementation of the government’s adjustment program will be monitored on the basis of quantitative and structural performance criteria and benchmarks, as shown in the attached Tables 1 and 2 . These include ceilings on (i) increases in net domestic assets of the BoZ, (ii) increases in net bank claims on the government, (iii) the outstanding stock of domestic arrears of the government, (iv) the accumulation of external payments arrears, (v) the contracting of new medium- and long-term nonconcessional public or publicly guaranteed loans, (vi) the stock of short-term debt contracted or guaranteed by the central government and the BoZ, and (vii) the size of the public service. The quantitative performance criteria and benchmarks also include floors on the domestic fiscal balance (cash basis) of the government and the net international reserves of the BoZ. The structural performance criteria and benchmarks relate to (i) the offering for sale of a minority share and management rights in ZAMTEL; (ii) the submission of recommendations on the establishment of an actuarially sound civil service pension system; (iii) the maintenance of positive real interest rates on treasury bills; (iv) the abstention from new tax exemptions, waivers, or preferential tax treatment; and (v) the transfer of the major asset packages of the ZCCM.
The Fund will conduct with Zambia two reviews of the annual program based on performance through end-June 1999 and end-December 1999, respectively. The reviews will include an assessment of the macroeconomic framework, progress in public service reform, the implementation of measures to improve expenditure control, privatization, and the strengthening of prudential supervision of the banking sector.

The medium-term strategy is elaborated in the policy framework paper for 1999-2001.
The modernization program for direct taxes includes the following measures, which were substantially completed by mid-1998: (i) revised procedures to improve the issuance of tax returns and assessments; (ii) procedures for the systematic management of tax arrears; (iii) systematic control procedures for the examination of accounts; and (iv) the reallocation of staff to areas of greatest revenue return. On the basis of a review of direct tax legislation completed in October 1997, legislative amendments to ensure appropriate powers for the charging of pay-as-you-earn (PAYE) taxes and the provisional tax were introduced in 1998.
Under Statutory Instruments 113, 114, and 116.
Statutory Instrument 115 of September 22, 1998.
Violations of this rule will be sanctioned by withholding cash allocations in the following month.
Disbursement totaling US$170 million from the public sector reform and export promotion credit (PSREP), and US$5 million from IDA reflows.
Thus far, the restructuring plans for 12 out of 22 ministries have been approved, and a decision was taken to hive off 3 government institutions. We intend to implement the restructuring plans for the 22 ministries and take a decision regarding the possible divestiture of a further 23 government units, which employ about 2,000 persons, in the first quarter of 1999.

The PF government weighs in on grabbing the Sun International Hotels among other companies opposition leader Hakainde Hichilema was involved in evaluation during privatisation.

Following a revelation by former Minister of Finance Edith Nawakwi that Hichilema commonly known as HH allegedly sold the Livingstone based multi million tour venture to himself, the PF says Government may repossess the companies.

In an article below published on the official PF Facebook page, lack of disclosure of interest by HH amounts to corruption according to the article will attract nationalisation.

NAWAKWI REVELATIONS MAY NULLIFY SALE OF CERTAIN STATE OWNED ENTERPRISES, PROMPT STATE TO NATIONALISE INDUSTRIES STOLEN

Forum for Democracy and Development(FDD) Edith Nawakwi has revealed that certain persons perpetrated extensive malpractices in the privatization programme carried out by the MMD government between 1993-2008.

Appearing on ZNBC’s Sunday Interview with Grevazio Zulu, Ms Nawakwi singled out Opposition Hakainde Hichilema as one of the key perpetrators of extensive abuse of the privatisation process.

She cited the example of the sale of Musio-O-Tunya Intercontinental Hotel, Rainbow Lodge and National Heritage Park as one such example.

She disclosed that Hichilema literally sold the entity to himself using the cover of Sun International Hotels.

From her revelations Sun International risk being nationalized on the clear case of corrupt practices in winning the bid, as well as non-declaration of interest by the Privatisation Negotiation Team Chairman, Hakainde Hichilema.

Zambia’s privatization programme was done under the IMF/World Bank regulations whose stringent guidelines forbade such acts of corruption as perpetrated by Mr. Hichilema.

Nawakwi also said Hichilema was the consultant of Anglo America in the sale of the Mines and today his political party had linked funding by the same entity.

TIMELINE OF SUN INTERNATIONAL BID AND INCLUSION OF HICHILEMA AS DIRECTOR OF THE HOTEL

Here is a timeline of events leading up to the sale of the Hotel.

23 JULY 1997

Bids for the Purchase of the Hotel are opened and Sun International is one of the 5 listed bidders

11 NOVEMBER 1997

Sun International Zambia Limited is incorporated in Zambia, and Hakainde Hichilema is listed as one of the Directors together with Chief Mukuni

The address on date of incorporation is listed as Mosi -O-Tunya Road, Livingstone.

4 MARCH 1998

Mosi -O-Tunya Intercontinental Hotel was offered to Sun International Zambia for the purchase price of $6.5m Dollars.

ZAMBIANS NEED ANSWERS TO THESE QUESTIONS

How could Hakainde Hichilema be the Chairman of the Negotiating Team and Be a Director of the Company they are negotiating with?

Should he have declared interest and recused himself from being Chairman of the Negotiating Team.?

Why did Hakainde Hichilema incorporate Sun International Zambia just after the Tender was opened and Sun International listed as the Preferred purchaser, did he know that he was going to award the bid to Sun International?

Most importantly, did he enter into an agreement with Sun International to offer them the Hotel and Game Park at a Reduced Price in exchange for being a Shareholder and Director in Sun International Hotel?

HOW SEAN TEMBO DEFRAUDED THE GOVERNMENT OF BOTSWANA AND FLED

By Tasha Mwansa

Patriots for Economic Progress (PeP) leader Sean Tembo defrauded the government of Botswana and fled the country it has emerged.

Tembo who is also Chairperson of the UPND Opposition Alliance Media and Finance Committees ended up in the High Court of Botswana for fraudulent data collection when he was engaged to conduct research on the effects of alcohol on youths in neighbouring Botswana.

The government of Botswana through the Ministry of Health and Wellness lost thousands of Pula as a result of Tembo’s falsified “work”.

This has been confirmed in a Judgement obtained from the Registry of the High Court of Botswana under Cause Number CVHGB-002065-14 ruled by Judge M. T. Motswagole.

The Judge ruled that Mr. Sean Tembo’s conduct description of being “dishonest and unprofessional” was too mild as his actual conduct was dishonest and most likely amounted to attempt to obtaining money by false pretences, or stealing by conversion; considering that he received the sum of * P100 000.00 (One hundred thousand Pula) as advance payment for empirical investigation and data collection, which he did not carry out, but instead falsified it. (*Pula 100,000 is approximately K112, 000 Zambian Kwacha)

Judge Motswagole further ruled that it was established during trial that no data collection tools were developed by Mr. Tembo as the questionnaire that he attached to his report claiming that it was a data collection tool he had developed for the purpose, turned out to be a document he uplifted from the World Health Organisation, which had been used elsewhere used for a different purpose.

Page 33 of the judgement also established that even Tembo’s Final Comprehensive Report of the research had the same fraudulent deficiency ; and that Sean Tembo had admitted and conceded during trial that he had only collected data in Gaborone and from one institution in Lobatse; thereby cheating the terms of reference.

Furthermore, the judgement also established that it was irrefutable that Mr. Sean Tembo had received advance payment from the Government of Botswana for the sole purpose of data collection. The judge also ruled that it was indisputable that Sean Tembo did not use the funds he received from the Government of Botswana on their intended purpose; even though Tembo held out his falsified report as if it were genuine and informed by empirical data when in fact not; as it was in fact a falsified document.

Additionally, Judge Motswagole went on to rule that Sean Tembo held out his fraudulent final report as if it were a genuine product of a joint scholarly effort with some named behavioural experts when in fact not; adding that Tembo’s falsified final report was the result of a sole effort by an unqualified person namely Mr. Sean Tembo.(himself). The judge recommended a criminal investigation in the Judgement.

When his fraudulent ways were discovered, the current Chairperson of the UPND Opposition Alliance Media and Finance Committees hastily closed his “business” and dubious network of activities which he carried out from his office in Gaborone’s Commerce Park, and fled to Zambia in a hurry.

By Eugene Makai

The date Tuesday, 4th December, 1990 was a landmark in determining the future of Zambian political and economic management.

The President, Dr. Kenneth David Kaunda under political and economic pressure signed a presidential decree ending the One Party state in which his United National Independence Party (UNIP) had ruled unchallenged since 8th December 1972.

The opening up of the political space in late 1990 saw the birth of the Movement for Multiparty Democracy (MMD) as the strongest of the new opposition political parties which included the National Democratic Alliance (NDA), National Democratic Party (NDP) and the Democratic Party (DP).

With the first multi-party elections in more than18 years slated for 31st October, 1991 the ruling UNIP was under pressure to sell a revised economic recovery plan to the people of Zambia at a time when Dr. Kaunda’s government was facing popular dissatisfaction that led to 3 days of rioting in late June, 1990 leaving at least 24 people dead and 150 people injured.

The riots, a result of price increases of essential commodities particularly that of the staple mealie-meal whose price immediately more than doubled, were accompanied by looting and also unrest at the University of Zambia (UNZA) the country’s highest learning institution, where students called for the resignation of Dr. Kaunda.

UNIP now under the burden of a US$7 Billion external debt was under pressure from multilateral lenders and had lifted price controls on what was an embarkation to a market economy.

Two months earlier from 9th-11th April, 1990, Zambia’s Minister of Finance and National Commission for Development Planning, Gibson G. Chigaga, headed a delegation to Paris to a meeting at the World Bank’s European Office in Paris with the CONSULTATIVE GROUP for Zambia which included the World Bank, IMF.

Participants included delegations from Canada, Denmark, Finland, France, the Federal Republic of Germany, Ireland, Italy, Japan, the Netherlands,Norway, Sweden, Switzerland, the United Kingdom, the United States, the African Development Bank, the Commission of the European Communities, the European Investment Bank, the International Monetary Fund, the OPEC Fund for International Development, the United Nations Children’s Fund, and the United Nations Development Program.

Observers from the Arab Bank for Economic Development in Africa, the Food and Agricultural Organization,and the Organization for Economic Cooperation and Development also attended the meeting.

DÉJÀ VU

Zambia was back at the table with multilateral lending institutions after famously abandoning the IMF on 1st May, 1987 with President Kaunda’s famous words:

”Zambia has not abandoned the restructuring program. That program will continue, but not on the lines of the I.M.F., which were too demanding on the economy.

”It was our genuine desire to work with the I.M.F. and World Bank, and we did so honestly, but it reached a stage where the programs headed by the I.M.F. became completely unbearable.”

Dr Kaunda had rejected the I.M.F.’s conditions for a new financing package of about US$300 million, which Zambia would access after it paid off debts to the fund estimated at US$230 million.

He ended the foreign exchange auctioning system, established a new fixed rate of eight kwacha (K8) to the United States dollar, restricted payments on the foreign debt, which had been consuming 40% of export earnings, to under 10 percent and said Zambia’s scant foreign exchange would be used for necessities such as fuel imports, fertilizer and equipment vital for the mining industry.

PART THREE FOLLOWS…..

By Amb. Emmanuel Mwamba

Introduction
The Privatisation Programme pursued since 1992 remains a conflicting process and spawns divisive intense debate. It was a government flagship program but supervised by the International Monetary Fund(IMF).

The government was determined that the programme succeeded as debt cancellation, international Aid and, restructure and reform of the economy, was tied to the success of the programme.

The IMF hailed it as a model and successful program in Africa, while many Zambians have realized and regarded it as done in a hasty and deeply flawed manner. It has since been recognized that it was also a program that allowed the corrupt acquisition or looting or cheaply selling of prized state assets. But what is clear is that after the sale or liquidation or disposal of over 270 state-owned enterprises, Zambia was left de-industrialised with an almost dead manufacturing sector, unpaid workers in many cases, and a shrunk formal employment sector.

Therefore we have to face the facts, if we do not look into this matter, one day our children will!

Back to the issue.
The Evaluator/Consultant or ZPA set the price and selected the preferred buyer. To divorce and avoid political influence and political corruption from the process, the price and selection of preferred buyer were left to the Zambia Privatisation Agency or its hired consultants.

For each sale, ZPA management was assisted by an independent negotiating team whose appointment was approved by the members of the ZPA board. This always comprised an independent chairman, a lawyer, at least two technical consultants from ZPA staff, and specialist consultants/advisers, as required.
The negotiating team liaised and bargained with each selected bidder and eventually hammered out a deal with the selected buyer.

Overall, the team was responsible for securing the best possible deal and for ensuring that agreement was reached on all issues of concern to the Government of Zambia.
These included making sure that the new owners honoured existing conditions of work and pledged to fulfil agreed investments in the business. Was the use of independent negotiating teams ensured in each and every sale?

The use of consultants or independent negotiating teams was considered as a good way to avoid political interference in the sales and, by and large, negotiating teams or consultants were appointed in accordance with the Privatisation Act. But it was noted in many evaluation processes as far back as 1998 that the independent consultants or independent negotiating team also acted dishonestly in some cases and also perpetrated private sector driven illegalities.

But both government and the IMF were focused on branding the programme as successful and making it a model, and despite the deep concerns, these matter were shelved or did not attract much attention or scrutiny.

The Exceptional Case of ZCCM
The ZCCM privatization – by far the most important of Zambia’s parastatals – was one notable exception. Negotiations over the sale were led initially by the international Merchant Bank, N.M. Rothschild until, at the end of March 1997, Mr. Francis Kaunda was appointed by the President, rather than by the ZPA board, to head the ZCCM Privatisation Negotiating Team. This decision was drawn up to ensure the process remained free from undue political influence. What Happened After Consultant/Evaluation/Negotiating Team Finished Their Process?

Once each individual agreement had been finalized for the sale of the entity by the negotiating team or consultant, the process came back to the Members of the ZPA Board with the proposed price and selected bidder for approval. The ZPA Board and the Attorney General would review the draft agreement reached. The Privatisation Act specified that the Minister of Finance would sign the final Sales Agreement to transfer shares to the selected bidder.

Conclusion
To respond to the current debate that the consultant/Evaluator/ or Negotiating team had no hand in determining the price or in picking a successful bidder is not informed by law or by facts as they happened! The Privatisation Debate is multifaceted. I will return with any other angle if need be.

By Peter Sinkamba

SHOULD GOVERNMENT USE ZCCM-IH TO BUY MOPANI SHARES FROM GLENCORE OR WHAT?- THE GREEN PARTY PERSPECTIVE

Last week, it was revealed by Government, through ZCCM-IH, is seeking to buy controlling shares in Mopani Copper Mines (MCM) by buying off Glencore shares.

At the moment, ZCCM-IH is a shareholder in MCM with only 10% shares. Glencore holds 73.1% shares while First Quantum owns 16.9%.

MCM is valued at about US$1.67 billion. This means Glencore shares are worth about US$1.22 billion.

The question is: should Government use ZCCM-IH as a vehicle to buy these shares?

First of all, at the moment, we do not think that ZCCM-IH has financial resources to pay US$1.22 billion cash. However, IDC has the capacity to do so.

Of course, we are aware that IDC has 60.28% shares in ZCCM-IH, while Government has 17.25% shares in ZCCM-IH.

Our view as the Green Party is that acquisition of the MCM shares is a very welcome move in the sense that in 2022, we expect the prices of copper and cobalt to spike. This could therefore a golden opportunity for Government to find money to pay the first Eurobond loan of US$750 million which is due about that time. Otherwise, it will be extremely hard for Government to find such colossal funds if restructuring efforts fail to materialize.

Having said this, we think that ZCCM-IH is a wrong vehicle to acquire the MCM assets. Rather, we think that it is better for Government, through IDC should set up a new company altogether to takeover the Glencore and Government shares in MCM.

The reason is simple. You will recall that two years ago when Felix Mutati was Finance Minister announced in Parliament that Government would soon sale 17.3% of its shares in ZCCM-IH?

You remember he said the long term strategic plan was to reposition ZCCM-IH for growth through strategic partnership and to comply to LUSE requirements? He said that the LUSE listing requirements stipulates that no single shareholder should control more than 25% of equity in any one listed company? And that in compliance with the listing requirements, government intends to sale 17.3% of its shareholding in ZCCM-IH?

You also recall that Government planned to sell the shares to an Israeli company? You also recall that a search on the physical address of the company in Israel for the said company was elusive? And you recall that ZCCM-IH paid over $100 million advance payment to an Italian company to rehabilitate Ndola Lime, and that company went into liquidation making ZCCM-IH lose so much money?

You will also recall that ZCCM-IH is in court and arbitration with KCM over multi-million claims? Are you aware that if, ZCCM-IH loses, it may be liable to compensate Vedanta billion dollars?

How far has Government gone with the sale of the 17.3% of ZCCM-IH shares to comply with LUSE listing requirements? How far has ZCCM-IH gone to recover the US$100 million advanced to the Italian company in liquidation? How far is the ZCCM-IH and Vedanta KCM case in court? How far is the ZCCM-IH and Vedanta KCM case under arbitration?

As Green Party, we do not think it is wise to use ZCCM-IH as a special vehicle to take over MCM shares owned by Glencore. We think that ZCCM-IH has too many skeletons that require to be cleansed or exorcised. Otherwise, ZCCM-IH will be a public liability that will swallow for nothing MCM shares.

We demand that Government abandons the dirty scheme of transfer of MCM shares to ZCCM-IH as the scheme will ultimately not be in public interest.

mwaisebanya mayo

James Kasanda Musendeka Lukuku RPP President

There was only one single question that summed up the whole Sunday Grevasio Zulu Interview yesterday. It wasn’t even a strange question anyway because it was the same question even President HH asked;-

Where were you?

Edith said she was aware of bidders of upto $26million for the Sun International Hotel. Others even put up bids for $20million.

Up from that she said President HH picked the bid lying at $6million.

Now if you look at the colossal difference between 26 and 6, this can only be substantiated if Nawakwi further went on to tell us that MMD was a government of magots, idiots, fools and stupid embeciles.

But that wasn’t the case. FTJ still stands by far as the most intelligently gifted President our country ever had and the entire ministry of finance technocracy which included Edith could not have sunk that too low.

Just after that Grevasio question and the subsequent answer Edith provided, I switched off the television and got to table for Nshima with pieces of Hungarian sausage.

Awe mayo ba Edith Nawakwi you are expected to be a states woman please mwilaitumpa mufya buwelewele kwati ni Peter Chanda.

You made me personally feel sorry for you as I watched that Interview where you seemed too socked like a socked grasshopper. “Vumbwe olokewa.”

Mwanawasa took Fredrick Chiluba to court for $800, 000, which even Olusegun Obasanjo offered to pay if that’s all it took for Mwanawasa to start having tensions with the former President. That was of course before Mwanawasa took a file of fake claims against Chiluba to parliament.

Now you madam so called Edith Nawakwi, why did the Task force on corruption formed by Mwanawasa disregard to Investigate President HH for the 26/6$million difference but investigated FTJ for the $800,000 and some pairs of shoes that were recovered at the container of Faustina Sinyangwe’s Access Financial Services.

Namukula mayo kwateni amano. Lekeni HH ateke nemwe mayo. Seleni atekeko.

Satanism accusations were falsehoods.

Freemasonry accussations were fabrications.

HH doesn’t smile, were total lies.

HH is a tribalists, proved wrong by his love for Hon Mutale Nalumango, James Kasanda Musendeka Lukuku, Hon Masebo, Hon Mucheleka and Dr Chishimba Kambwili.

Privatisation nonsense, right now being burried and dusted by Hon Edith Nawakwi.

Selenifye atekeko!

James Kasanda Musendeka Lukuku RPP President

By CIC Editors.

CIC EDITORIAL ANALYSIS.

AS EDITH NAWAKWI FEATURES ON ZNBC TONIGHT TO TALK ABOUT HH: HERE IS WHAT TO LOOK OUT FROM HER BEHIND POLITICS AND PRIVATISATION WHAT YOU DIDN’T KNOW.

PASSIONATE REVENGE.

Madam Nawakwi has been crushing on HH for so many years dating back to their school days. She was in the same class with the UPND President Hakainde Hichilema at the University of Zambia doing the same course (BBA) up to Birmingham university in the UK for their masters (MBA).
We took time to analyze exactly what sin HH committed to madam Nawakwi our reports shows interesting results.

“Ninkani yapa mutima”

“I love HH with all my heart I will be the happiest person on earth if he ever married me” Edith Nawakwi in 1987 told a friend a record made available to CIC investigations.

Okay that was personal yes we know but we need to dig deeper to find out the extrem hate of Edith Nawakwi to HH even if it means going Koswe way it’s clearly out of politics and there is only one thing we could find. She’s frustrated that she will never beat HH at anything.

Edith Nawakwi loved HH so much that it took more than tears to let go of him and settle for a married man whom she snatched from another woman. We have no choice but to go dirty because Nawakwi is not this stupid as educated as she is she knows exactly what went during Privatization the process was never HH’S making in anyway but that of Government of MMD who included Nawakwi herself. Privatization was a process that involved alot of people government delegation we shall fish them one by one to ascertain the extent of dullness that they where drippled by a 29 year old Economist in the name of HH. For Madam Nawakwi she will do well to stick to her sausages because we have a duty to protect and defend public figures from washing dirty linens in public but at the speed she’s trending this is what she must be prepared to face and we are just getting started.

Zambians should know that Madam Nawakwi’s hate for HH is way beyond politics but personal. HH through God had a different plan for him, his businesses and his marital life. And currently HH is a happily married man with a clean family if morality is to go bye the same is true about his wealth because the law is not blind or stupid like Madam Nawakwi to spare him if at all he was ever a culprit.

A woman’s heart is a deep ocean of secrets that holds dangerous venom behind passion of smiles.

If a woman can’t have you this is where it leads to and such people can only find peace and joy if such a person is buried.

In 2016 General Election the total rejected number of voters where more than what Edith Nawakwi got as a presidential material. Her approach in fronting passionate beef towards HH have destroyed her political career because this is a woman with so much potential in the Zambian political realms and spectrum but because HH is in the queue and Nawakwi would rather see anyone else than HH be the president her torture to HH is herself torture that buries her political career to statistics because any leader worthy talking about does not attack the fellow opposition and Zambians don’t entertain such leaders.

To engage a man like HH in a political field you need to have a clear and clean hands alas the crooked Nawakwi was devastated in 2016 hence her party missused the party donations she received as the only female candidate to create Legana Sausage company.

This was after her negative disparaging remarks towards her fellow opposition leaders not all opposition leaders but HH specifically because she marked him never to succeed before her and it freaks her a same classmate and course mate today is at another level politically commanding high respect internationally.

If HH had won in 2015 by elections it was Nawakwi Edith in line to be the biggest opposition but whenever it gets to that she always goes to bed with the other parties when she clearly knows she will never jump the queue it’s HH first then her and everyone else later.
We therefore warn Madam Nawakwi to play her cards well because she’s living in a glass house which will not handle the stones she’s attracting when they are aimed at her.

In the next analysis we are coming from the political angle after that we will also look at the circumstances that surrounded the death of Nawakwi’s step-daughetr in 2013 her name is HH (Hatamba Hambulo).

CIC PRESS TEAM.

ZCCM-IH minority shareholders say Zambians are ill-informed about their mineral wealth and exploitation.

In a statement issued by Thierry Charles on behalf of Euronext Minority Shareholders of ZCCM-IH, a few weeks ago, the excitement caused by the exploitation of a Zambian gold deposit by a foreign company, in this case a Sudanese one, alongside ZCCM-IH, particularly astonished the stakeholders and demonstrated the lack of knowledge of the Zambian people in the mining sector.

“Our astonishment can be summed up as follows: how is it that there has been such popular unrest over the presence of foreign shareholders investing 2.5 million dollars in the gold sector, and that at the same time all these Zambians so devoted to their country and impatient for its development are indifferent to the total absence of profits declared by almost all the copper mines or the criminal complaint of ZCCM- IH for the theft of 520 million dollars by First Quantum Minerals in August 2019?” he wondered.

Charles stated that the reality of mining was that foreign companies own the mines and Zambians have only crumbs left.

He stated that since privatisation in the early 2000s when copper prices were at their lowest, the main mining resources had been exploited and implicitly monopolised by foreign mining companies (Chinese, Indian, Swiss, Canadian, Australian, etc).

“Not only copper but also other minerals and gemstones such as the famous emeralds. So far, however, few Zambians have taken offence at this… when the former ZCCM was privatised, the new entity ZCCM-IH retained minority shareholdings in the order of 10-20 per cent in the copper mines. These holdings were intended to generate revenues that were to be partly paid back to the Zambian state and used for new investments in the mining sector,” he stated.

“But in September 2019, the words of the chairperson of the select committee appointed to negotiate the sale of Konkola Copper Mines, Anthony Mumba, were eloquent: One thing which also caught my attention in the mining sector is that for the last 12 years ZCCM-IH holdings has various shareholdings in these companies. Now out of those nine or ten companies, only one company consistently paid the dividend to ZCCM holdings. Why only few people? I wonder how possible it is that an investor can keep pumping money into a company for years without making profits and yet not giving up? Why do we hear no one protesting the theft of $520 million by First Quantum…? $520 million… !!” he stated.

On gold, Charles stated that the government had decided to entrust the mining and marketing of Zambian gold to ZCCM-IH.

He stated that local artisanal miners were being offered a purchase at a more attractive price than that offered by unscrupulous traders.

Charles stated that ZCCM-IH also provides technical support to gold mining cooperatives from Rufunsa, Vubwi and Lundazi districts.

He stated that the gold produced would be sold to Bank of Zambia.

“However, ZCCM-IH’s financial capacity and expertise in this area is limited, so partnership with investors is essential for larger-scale mining. Usually, copper ore is accompanied by a by-product that is either gold or cobalt. For example, the Kansanshi mine produces around four tonnes of gold per annum, KCM and the Lubambe mine produces cobalt. Why does no one find it strange that some mines have no by-product or only a tiny amount?” he asked.

On Gemstones, Charles stated that any well-informed Zambian who was or had lived on the Copperbelt knows for a fact that the country had over 100 Emerald mines in the province alone.

“However, most of these mines, if not all, are in the hands of foreigners, including but not limited to Senegalese and Israeli, such as the iconic Grizzly Mining or UK Gemfields’ Kagem Mine. The only Zambian share is a 25 per cent stake in Kagem owned by IDC. Zambian emeralds are world famous. Why is nobody offended that the gemstone sector is not organised in cooperatives owned by Zambian small-scale miners? Why nobody reacted a few years ago when ZCCM-IH, then headed by Pius Kasolo, passed up the opportunity to acquire 50 per cent of the shares of Grizzly Mining, preferring to invest in non-mining and disastrous investments such as a bank and a milling company, or the far-fetched project envisaged in a cement plant?” he asked.

On oil, Charles said oil exploration and exploitation was still in its infancy in Zambia.

He, however, said the potential was promising, particularly on the borders of Angola.

ZCCM-IH has obtained a few blocks with licences but there again, the company would have to join forces with partners due to lack of sufficient equity capital.

Charles stated that the Zambian State benefits from some mining revenues such as the mineral royalty tax.

“But they are out of all proportion to the revenues obtained by the former ZCCM which was able to build and maintain houses for the miners, roads, schools and hospitals until copper fell to $1,500 per tonne (now around $6,000). In addition, with each economic crisis, Zambian miners are thrown out like handkerchiefs waiting for raw material prices to recover,” he stated.

He stated that there was lack of knowledge caused by incorrect or concealed information and misinformation from “so-called experts”.

Charles stated that people who present themselves as experts were distilling so-called knowledge and truths that do not correspond to reality.

“In early June, former ZCCM-IH CEO Dr. Pius Kasolo announces that there’s no gold mine in Zambia, it’s just exploration on Diamond TV’s COSTA programme. However, a few days before the words of Pius Kasolo, ZCCM-IH issued a call for tenders for equipment from the Kasenseli mine in the Mwinilunga district. On 27 April 2020, ZCCM Gold Company has injected approximately K45 million for the initial phase of the Kasenseli Gold Mine Project in Mwinilunga. With numerous press releases, ZCCM-IH clearly demonstrates that operations are also underway at Rufunsa. This plant is aimed at chemically processing the gold stock piles from two old gold mines, at Mumbwa, the setting up of a gold wash plant and other mining machinery to mine and process placer gold raw material,” he stated.

He stated that another so-called expert Chamber of Mines president Goodwell Mateyo regularly appears in the media.

“With our statement Chamber of Mines president Goodwell Mateyo outrageously misleads the Zambian people on 24 September 2019, we castigated his untruthful figures in support. His sole objective is to do everything possible to ensure that the unfair and shady game of mining companies continues at the expense of the Zambian people and the shareholders of ZCCM-IH, including NAPSA. Former mines minister Christopher Yaluma and the KCM disaster – already in 2014, the situation was worrying. Voices were being raised to nationalise the mine for serious breaches. At the same time, Vedanta boss Anil Agarwal revealed that KCM gave him $500 million per year and extra $1 billion,” he stated.

“But Christopher Yaluma had then vigorously protected Vedanta and said in a ministerial statement in front of parliamentarians instead of rushing to resolve the issues surrounding KCM through nationalisation, government has decided to engage KCM to ensure that operations are turned around for the company to become viable once again and that government will be undertaking regular audits at all the mines to ensure compliance and avoid the recurrence of the situation as at KCM. It is incomprehensible that the so-called thorough ‘regular audits’ did not make possible to anticipate the closure of two Mopani shafts, the decrepitude and finally the bankruptcy of KCM five years later,” he stated.

“Why no one was surprised by the total lack of transparency on audits? Why no one has protested that Christopher Yaluma has misled the Parliament and the parliamentarians, the Zambian miners, the contractors and suppliers, ZCCM-IH shareholders and the Zambian people.”

Charles stated that following the privatisation of the copper mines, foreign mining companies had demanded that any disputes that may arise with the GRZ or ZCCM-IH be settled by arbitration tribunals outside Zambia.

He stated that strict confidentiality was imposed on all disputes, preventing the Zambian people or minority shareholders from being informed leading to a total lack of transparency.

“In the KCM insolvency petition initiated by ZCCM-IH, Vedanta demanded that an arbitration tribunal in South Africa resolves the matter. We commend the voluntarism of Minister of Mines Richard Musukwa in recalling Zambia’s sovereignty in matters of justice and dismissing this procedure. Almost all the decisions taken in these arbitrations are unfavourable to Zambian interests and to ZCCM-IH in particular and are rendered after years of proceedings. Why does nobody protest against this lack of transparency and arbitration abroad for other ongoing proceedings?” he asked.

“We hope that our insights from this partnership in gold will provide greater insight into the mining sector. We deeply hope that all these people so dedicated to their country, having protested against a 2.5 million dollar partnership, are asking themselves questions about issues that can be counted in billions of dollars. Is it still tolerable for Zambians to be reduced to being the mere ‘Jerabos’ of their mineral wealth? Under the impetus of the board and new CEO Mabvuto Chipata, ZCCM-IH is taking its full part in the challenge despite a desire of some to financially suffocate the Zambian flagship company to prevent it from playing its role and from being a leading mining operator. Our company has refocused on mining and has returned to being a pure mining operator with a diversification of the minerals exploited. ZCCM-IH participates in the development of the country by developing green fields and involving the local population. Our company has invested about $1.5 million in setting up a wholly owned manganese mine in Serenje District of Central Province.”

Charles encouraged the management on the one hand to continue in this direction and on the other, to initiate very thorough forensic audits in the mining companies in which the company holds stakes.

By Sikaile C Sikaile

NAWAKWI’S RUMBLING COMFIRMS THAT SHE WAS CORRUPT AND VERY DULL

In Zambia, we are really very backwards with the choice of propaganda. Edith Nawakwi a well known PF Surrogate sounded very stupid with her rumbling on hot FM. If that was the quality of senior Government officials we had at the time, then I am afraid we were in a mess just like we are now. Her rumblings confirm she was very corrupt and very dull at the same time.

In fact she just confirmed that she could not ask pertinent questions then, simply because her hands were soiled with corruption. No wonder whatever she touched turned into a scandal, ie Cartlington maize scandal.What is more ironic is this, when these same charlatans go to campaign in churches they accuse Hakainde Hichilema to be a Freemason. Emphasizing that Freemasonry is a source of his wealth and thus he hardly give out his money, but some of us have seen HH sponsoring thousands of students at the university of Zambia, building health and education facilities and some times even being blocked by PF to give donations. He has been doing a lot of community works especially those that sustains the agriculture sector. Yet daylight robberies after stealing our natural resources they go to drink beer and use it to have multiple girlfriends.

The moment they come out of the church they say HH earned his wealth from privatization. What type of foolishness is this? They have really taken advantage of illiterate in our nation. They know that majority of us hate reading. This is a regime that has collapsed our education system so that citizens remains uninformed and continue making poor decisions.

As Zambians, we don’t ask ourselves one question that will shut them up forever. From the little information we have about Satanism, they make their money from dark powers. The moment you hear a Freemason stole, then know he is not a Freemason after all. So to hear the PF through Nawakwi, accusing HH of being a beneficiary of privatization in one breath and Satanist in the other, know they are just taking advantage of our gullibility.

The real question is, as a minister of finance then madam Nawakwi, how much was Grandthornton paid for the contract to value our assets? Five million? Ten million? Or what? In that amount is real source of wealth. With a five million or even a ten million well invested one will never lack in fact even in this most useless economy of Edgar Lungu given fifty thousand kwacha I can run a viable business that can do wonders. HH stands out from the rest because of financial discipline. When others were paid ten million for services rendered, they invested their money in girlfriends, acquired them property and drunk the rest, or spent the rest on socialization.

How many herds of cattle can you buy from five million dollars? Quite a lot, eh. HH on several occasions has explained how he began his cattle ranching with six cows, of course under good management, if they are heifers six can cost you about K24,000.PF has hired a wrong witness this time in madam Nawakwi who I feel she envy HH so much.

On the program she just sounded to be a careless thief herself who did not know how to invest her stolen money. Oh! Wait a minute, she bought pigs and created a sausage processing factory. Lagana. It is simple for all of us Zambians to connect with HH source of wealth, education as he puts it unless you are viewing his success from your primitive aspect of lacking a vision in life.

It is through education that he formed financial company Grandthornton, because of education, he was given a contract, because of education, he thought about the power of entrepreneurship, because of education he managed his businesses with wisdom and intelligence, because of education he invested in one woman, because of education ( yet some of you have invested in ten women), he was paid enough money, because of education, he invested the money from the contract, because of education, he managed it properly. And the rest is history. Five million dollars is a lot of money to start up anything meaningful if you think right.

For the first time PF hired a wrong gun to propagate their same old and boring political story. HH and his companies are separate entities, education, hardwork and discipline paid him HH off. education, the best equaliser.

This is why today we have hopeless ministers and former graveyard diggers like Bownman Lusambo, asking us what is two million kwacha when he doesn’t know how to make it apart from stealing public resources.

It is on record today, how these people are abusing tax payers money having ten girlfriends each, honestly speaking how do you expect such retrogressive minds to be successful in life? Let this be a big lesson to us the youths in Zambia. HH and ECL upbringing are real life practical examples for one to choose the right path in life.

Sikaile Sikaile Good Governance and Human Rights Activist.

A brief history of the privatization of mines in Zambia and RAMCOZ in particular.

72. Mr Lubinda (Kabwata) asked the Minster of Finance and National Planning:
    (a) how much revenue was earned from the privatisation of RAMCOZ;
    (b) who were the liquidators or RAMCOZ and how much were the liquidators/receivers paid for liquidating the company;
    (c) how many employees lost jobs immediately after the privatisation of RAMCOZ;
    (d) how much was paid out as terminal benefits and how long it took to pay the employees after liquidation; and
    (e) how many jobs were created by the new owners of the company.

The Deputy Minister of Finance and National Planning (Mr Shakafuswa): Mr Speaker, before I answer the question raised by hon. Lubinda, I would like to give a brief background to the privatisation of the mines. As you are aware before the privatisation of the mines, ZCCM Limited operated ten mines, three smelters, two refineries, two cobalt plants and a tailing leach plant.

Over the years the performance of the mines declined considerably to the extent that the very existence of the mines was being threatened. This forced the Government to reconsider its position and adopt a pragmatic mineral policy that would allow for private sector participation. The mineral policy adopted focused on transferring control and operations of the mines from ZCCM to the private sector, mobilising resources, diversifying ownership and allowing Zambians participation.

Mr Speaker, Roan Antelope Copper Mines Limited (RAMCOZ) was initially sold to the Binani Group of Companies in 1997 for a consideration of US$35,000,000. Payment of the US$35,000,000 was made in full through their lawyers, Rothschild & Sons.

Following the privatisation, RAMCOZ took over both mining and non-core mining responsibilities. This led to the financial problems and forced the company to borrow from suppliers and financial institutions to sustain its operations. Subsequently, the company failed to meet its obligations and this situation culminated in Zambia National Commercial Bank placing the company under receivership in the year 2000.

Mr Speaker, I wish to inform the House that RAMCOZ is still under receivership and that the process of liquidating the company has not yet began. Mr Christopher Mulenga of Grant Thornton was appointed Receiver by ZANACO in 1997 and continued up to January 2006 when the management of the receivership was transferred to the Administrator-General.
Mr Christopher Mulenga of Grant Thornton has been paid a total of US$3,306,783 as receivership fees, from August 2002 to January 2006.

Sir, I wish to point out that as part of the privatisation agreement with Binani, it was agreed that no employee would be retrenched in the first two years of operations. Therefore, Binani took over 6,200 employees.

Mr Speaker, I wish to inform the House that the Government released US$35,000,000 in 2004 towards the payment of terminal benefits of former employees of RAMCOZ as a condition for disposing of the mine to new owners.
Sir, Luanshya Copper Mines, the new owners who took over the former RAMCOZ mines in 2004 currently employs 1,500 employees.
I thank you, Sir.

PRESS STATEMENT

Contact: Charles Kakoma- National Spokesman – 0977 780 397 – upndhq@gmail.com

WE WONT BE DETERRED BY HATRED AND CHEAP PROPAGANDA

Lusaka – 30/08/20

We want to take the opportunity to thank all Zambians who have resolved to rally behind President Hakainde Hichilema and the UPND, we reassure our people that we won’t let them down.

We are however concerned with the recent behaviour of opposition FDD leader Edith Nawakwi on her path to discredit President Hichilema on flimsy grounds of having stolen from the state during the privatisation program that was undertaken by the cabinet in which Nawakwi herself was minister.

Nawakwi was even privileged to serve as minister of Finance, a ministry that oversaw the privatisation process and if she saw wrong doing on President Hichilema, why didn’t she raise the alarm that time?

After being expelled from MMD and having joined the FDD, Nawakwi was an alliance partner in United Democratic Alliance (UDA) in the 2006 elections and if elections went in our favour, probably she could have been the Vice President. Does it mean at this time she didn’t know about the allegations she’s raising today?

We don’t want to go into character assassination on Nawakwi because that’s not our main focus, we are busy thinking of how to fix the economy when we take over office. We are a committed people and do not want to let the Zambian people down.

We know that Nawakwi will continue shopping for media space and we have information that the next appearance is on ZNBC Sunday interview this evening.

The whole idea is that PF is feeling the heat and our growing popularity on the Copperbelt province has terribly unsettled them, and now want to put the blame of the mess in the mining sector on us… Twakana, We don’t want, we refuse to be drawn into cheap politicking.

Similarly we thank the Zambians and particularly our supporters ku Kopala, we want to assure you that we don’t take your support doe granted and we will fix the problem.

PF must also stop behaving as if they are in the opposition and always blaming Mr. Hichilema for anything, even privatisation which took place close to three decades ago.

For now, let us all treat Nawakwi as a hired mother and citizen. All the best.

Zambia forward.

(C) UPND MEDIA TEAM

PF CONTINUES TO DISTRIBUTE PROCEEDS OF CRIME AT THE DEATH AND EXPENSE OF PUBLIC INSTITUTION

By: Anthony Bwalya – UPND Member.

The country has seen a rejuvenated attempt by the Patriotic Front (PF), its operatives and surrogates to divert the collective attention and conscience of the nation away from their calculated misdeeds and acts of premeditated sabotage which have placed the hopes of a nation on a knife edge.

At 11.52am yesterday morning, I got a call from a former ministry of justice employee who is among the close to 3,000 who have continued to languish in poverty while still fighting the PF regime for their retirement benefits.

Last week, he had received a call from the office of the Permanent Secretary at the Ministry of Justice that he should travel to Lusaka and collect his money. On arrival, he and his colleagues were told that those with lawyers should go and see their lawyers because their money had been sent to the lawyers, while those without lawyers needed to go to the Ministry of Finance.

Suffice to say, both the lawyers and the Ministry of Finance have indicated that no such money is available.

The gentleman had travelled from Ndola and had spent the last 3 nights at Lusaka’s Intercity Bus Terminus.

Now, government ministries and departments are struggling for cash not only to deliver basic services, but also failing to fulfill their historical obligations; and all this while the PF regime, all out on a cash distribution spree led by President Edgar Lungu himself.

WHERE IS THIS MONEY COMING FROM?

Last week, the country witnessed a pure moment of madness from the presidency when the Central Bank governor was fired for refusing to give money BoZ did not have.

We are now witnessing PF political assasins led by Edith Nawakwi, a person known to have failed to do her job when she served as Minister of Finance during a tumultuous privatization era, now championing calls for BoZ to “issue the K10bn stimulus package.”

Can Edith and the PF tell the nation where BoZ will get the K10bn they want to distribute for political reasons?

And because we know that all the current “empowerment” disbursements are being made against NON EXISTENT line ministries’ respective budgets, can the PF regime tell the nation where this money is actually coming from?

The PF regime have been stealing from the Zambian people since they assumed office in 2011. The PF regime and its promulgators have more liquidity than the people’s government. But this is not money backed by anything. These are proceeds of crime.

1. Public Debt and Corruption

Of the $20bn total debt stock, we know $12.6bn has gone directly into their pockets. The price Zambians are paying for this is $200m PER MONTH in debt repayments covering interest alone. This is what has killed the ability for government to function, because ALL tax revenues are now swallowed up by these gigantic debt repayments which have strangled the economy but benefitted the PF.

2. Natural Resources Plunder

(a) Mukula: We also know Mukula revenue of between $2.5bn to $3bn has not been accounted for the period 2012 – 2019. This is why it was essential for the PF to take over the Mukula supply chain.

(b) Gold: Nearly $500m worth of unprocessed gold deposits have been handed to Two (2) foreign owned companies under the control of individuals with known links to terrorism financing activities. It is not a surprise that President Edgar Lungu is now alleged to be linked to a well established network of individuals known to be waging war against President Paul Kagame in Rwanda.

Otherwise, why has the PF and President Edgar Lungu refused to investigate a terrorism financing activity which took place on Zambian soil between 2017 and 2018?

One of the key person’s known to be a terrorism financier has been appointed to the procurement committee of the Industrial Development Corporation (IDC) by President Edgar Lungu.

It is not unthinkable to conclude that the PF is actually being funded by individuals and groups linked to international terrorism.

3. Fuel procurement

Zambians have continued to pay a premium for FUEL because the PF regime now get K2 per litre of fuel bought in Zambia at the pump. The people in charge of the fuel procurement and distribution chain are now the ones SPONSORING THE Economics Association Zambia (EAZ) “empowerment project.” These are the same people controlling the fertilizer procurement, supply and distribution channels.

4. Fertilizer Procurement

Why does Zambia spend close to $500m every year importing fertilizer when Nitrogen Chemicals of Zambia can be fully CAPITALIZED for 3% of this amount? Well, it is because the PF get a 10% commission of this massive contract every year! And while the PF keep getting their commission payments, a bag of fertilizer is now K500. This is why the cost per bag of Mealie meal is astronomical.

5. Wildlife Pilfering

Zambia’s tourism industry is worth nothing without wildlife. More than 75% of all tourists visit Zambia because of the richness and diversity of our wildlife. The PF have successfully diverted at least 50% of all wildlife linked revenues by illegally capturing prized animals from their natural habitats in our game parks, and these animals have been transferred into PRIVATE GAME RESERVES owned by high ranking PF officials and their friends.

So, while the country is getting zero revenues due to captured productivity, the PF political establishment and its promulgators have been getting minted at our expense.

The whole country is now surviving at the mercy of the Patriotic Front.

This is how come the PF and its high ranking officials can afford to throw around money while government itself has nothing to spend.

Where can Davies Mwila get K90,000 CASH to “donate” to a church in Kabwe?

2021 is the year Zambians redeem themselves.

Anything less, we will be damned.

DEBUNKING PF NONSENSICAL PROPAGANDA ARTICLE

Proud Aushi Musamba Mumba

“HOW HICHILEMA SOLD MUSIO-O-TUNYA INTERCONTINENTAL HOTEL, RAINBOW LODGE AND NATIONAL PARK VALUED FOR $26MILLION SOLD FOR $6.5MILLION”

A clear case of a smear campaign against an individual.

Interesting but there is substance missing in the very nonsensical article being circulated by PF propagandists. The Sun International Bid came with a capital investment of $50 million to build a 3-star (Sun Hotel) and 5-Star (Royal Livingston) on the sites of the old delapidated hotels. The other bidders were for the existing structures only with no additional capital commitments. Sun Internal essentially bid for the land and demolished existing structures. The enduring benefits of the new hotels are still drawing tourists to Livingstone.

Further, Directorship do not mean Ownership. The owners were Sun International. HH and Mukuni were directors in the Zambian operating entity but did not have an ownership stake. When Government decided to privatize the Intercontinental hotel was it just selling the land? It was selling the land and the hotel as was. What the new owners intended to was probably not part of the valuation. The Sun could have gotten land and built elsewhere.
So when evaluating who the successful bidder do you go with a bidder who is just going to continue with the existing infrastructure or someone who commits to invest an additional $50 million to modernise the infrastructure, create more jobs and increase economic activity in the town and nation at large?

It’s also shocking that people are mistakenly equating directorship you shareholding. One is merely an office held while the other confers equity ownership rights. HH and Mukuni were merely non-executive directors of the Zambian subsidiary of Sun International. The most they got out of this was sitting allowances and probably free accommodation and meals.

Also the assumption that there was a conflict of interests on the part of HH is also misconceived. He was not a director in Sun International (the bidder) or any of its subsidiaries at the time of the negotiations. So where does the conflict arise? From the PACRA document printed in 2014, it is not stated the date of appointment as director. Sun was not the second preferred bidder but the first. The cash price offer was second yes, but Sun International was preferred for 2 reasons (1) the additional $50 million they committed to inject in the hotel (2) their experience in running hotel Businesses.

The highest bid for Livingstone hotels only was $10 million by a company/consortium with no experience running hotels.
This bid also included an additional $10 million bid for Intercontinental Hotel in Lusaka. Sun Internation did not bid for Intercontinental hotel.

Based on the PACRA printout 99.998% shareholding was Sun International with the Canadian citizen having 1 nominee share. Sun owned 49,999 shares of the 50,000 issued shares. The 1 share held by Elizabeth, the Canadian citizen (0.00003%) was most likely a nominee shareholder to meet the statutory requirement of having a minimum of 2 shareholders.

Based on the above, it is surprising that people are accusing HH of negotiating a bad deal, when in fact, the deal he negotiated was the best thing that could happen for the tourism industry with proven growth in the Livingstone economy following the upgrades of the hotel.

Emmanuel Mwamba writes:
Status Report on Privatisation of 270 State-Owned Enterprises as at 30th November 2010

(The sale value mentioned here refers to unrebased Kwacha)

1.AFE Limited – F.C Ndhlovu K700million.

2. Agip Zambia Agip Petrolli of Italy $850,000.00
3. Africa Bounds,non operational, dissolved
4. Amalgamated Milling – Ghirardi Milling Company

Ghirardi Milling was handed back to original owner due to court decision.
Document signed 15 May 1996

5. Amalgamated Milling – Roncaglia Mill

Amalgamated Milling – Roncaglia Mill was sold on competitive tender basis to all Terrain motors Limited for a purchase consideration of K252 million cash.

6. Anros Industries Limited

Non-operating company dissolved by ZIMCO

7. Auto Care Limited

Autocare was sold on competitive tender basis to Astro Holding Limited of Lusaka for the total purchase consideration of K178.2 million

8.BP Zambia – Zamlube Re-refiners

Zamlube, a 100% owned subsidiary of BP (Zambia) was privatised upon the privatisation of BP

9. BP Zambia Limited

25% shares plus one share were sold to BP Africa under rights of pre-emption for $3.3 million. The remaining 25% shares will be offered on public flotation. The final share holding will be BP Africa – 75%, Public – 25%.

10. Bangweulu GMA – Shoebill Camp

Shoebill is leased by the Ministry of Tourism to G.W Safaris Limited on a right of first refusal basis.

11. Blue Lagoon Park – Nakeenda Lodge

Blue Lagoon is leased by the Ministry of Tourism to Baobab Safaris on a competitive tender basis.

12. Blue Lagoon Park – Shamikobo Camp

Blue Lagoon is leased by the Ministry of Tourism to Tully Ho Safaris.

13. Buildwell Construction

Buildwell Construction was dissolved for being non-operational.

14.Cape Kachese

Cape Kachese was handed back to previous owner due to government decision. Consideration paid to Ministry of lands.

15. Chico Milling

Chico milling was handed back to the previous owners. A consideration of K30 million was paid for property in Kitwe as part of the hand over.

16. Chilanga Cement Limited

26% shares in chilanga cement was sold on a pre-emptive right basis to commonwealth Development Corporation for US$ 5.4 million cash, bringing their total shareholding to 50.1%. A further 6.5% of shares were sold to Zamanglo Industrial Corporation Limited (ZAMIC) of Lusaka for US$ 150, 092 under a judgement order by the high court. The shareholding of the privatised company is as follows:
CDC 50.1%
ZAMIC 12.6%
Public 37.3%

17. Chimba Crocodile Farm

Chimba Crocodile Farm was handed back to original owners due to government decision.

18. Choma Milling Company

Choma milling was sold on competitive tender to Nshima Ltd of Lusaka for K1 billion plus liabilities of K200 million.

19. Cleanwell Dry Cleaners

Cleanwell Dry cleaners was sold on competitive tender to Swan Dry Cleaners for a total package of K89 million.

20. Consolidated Tyre Services

CTS was sold on competitive tender basis to Jane Chibulu Penza & Amon Kambole Sikazwe for K760 million cash.

21. Coolwell systems Ltd.

Coolwell systems Limited was sold on competitive tender basis to Professor F.D Yamba of Lusaka for the Kwacha equivalent of US$ 74 000 for shares deferred over 20 quarters with interest @ 10% and the principal to be repaid in three equal annual instalments beginning with the end of the third year.

22. Crested Crane Hotel

Crested Crane Hotel was sold on competitive tender basis to Mr Charles Mpundu for the purchase consideration of k11.10 million cash.

23. Crushed Stone Sales Ltd.

Crushed Stone Sales was sold to MBO Team on competitive tender basis for K110 million deferred over a five year period.

24. Dairy Produce Board – Chipata

DPB Chipata was sold on competitive tender basis to Pyanjala (Eastern Dairies) for $150,000 plus K6 million cash.

26. Dairy Produce Board – Kabwe

DPB Kabwe was sold on competitive tender basis to Kabwe Farmers Co-operative Society for K24 million cash.

27. Dairy Produce Board – Lusaka, Mazabuka, Kitwe, Chingola, Mufulira

DPB Lusaka, Mazabuka, Kitwe, Chingola and Mufulira depots were sold on competitive tender basis to Bonzam Ltd for
US$ 800,000.

28. Dairy Produce Board – Ndola

DPB Ndola was sold on competitive tender basis to Northern Dairy Ltd for K35 million cash.

29.Duncan, Gilbey and Matheson (Z) Limited

40.7% of the company’s shares were sold on right of pre-emption to Douglas Morgan Limited, a private company incorporated in the Bahamas for US$ 77,000 cash.

30. Dunlop (Zambia) Limited

24% GRZ Shares in Dunlop (Zambia) Limited were sold for US$51,375.21 on right of pre-emption basis to Dunlop Africa investments Limited.

31.Eagle travel Limited

Eagle travel Limited was sold on a competitive tender basis to Quantum investments Limited of Lusaka for a total price of K157, 135,900.

32. ENGINEERING SERVICES CORPORATION
    (ESCO)
33. ESCO LUSAKA

National Pension Scheme Authority purchased the

Lusaka property for k13,000,500,000.00 in October 2008

NAPSA had awarded a contract to G5 Group of South Africa and a consortium of Zambian companies to construct a multi purpose business Complex Known as Levy Junction Business Park

33.Elephant’s Head Hotel

Elephant’s Head Hotel was sold on competitive tender basis to Chainama Hotel Ltd for K410 million cash.

34. FDS – Kabwe

Forest Department Sawmill Assets of Kabwe were sold on competitive to Kabwe Press for the purchase price of K18, 050,000 cash.

35.FDS – Solowezi

Forest Department Sawmill Assets of Solowezi were sold to Pittsburg Engineering Limited for the purchase price of K11.5 million cash.

36. General Pharmaceuticals Limited

General Pharmaceuticals was sold on competitive tender basis to Mutashi Limited of Lusaka for the total price of K250 million.

37. Indeco Milling – Kasama Mill

Indeco Milling – Kasama Mill was sold on competitive tender basis to GBM Trucking Zambia Limited for K1, 281,958,000 cash plus all liabilities.

38. Indeco Milling – Luangwa Mill

Indeco Milling – Luangwa Mill was sold on competitive tender basis to Goodward Mulubwa for K90 million cash.

39. Indeco Milling – Mansa Mill

Indeco Milling – Mansa Mill was sold on right of first refusal to MBO for K150 million payable K15 million cash and balance deferred.

40. Indeco Milling – Mukushi Mill

Indeco Milling – Mukushi Mill was sold on right of first refusal to MBO for K115 million payable K25 million cash and balance deferred.

41. Indeco Milling – Mongu Mill

Indeco Milling – Mongu Mill was sold on competitive tender basis to APG Motors Ltd of Lusaka for K450 million cash plus all liabilities.

42. Indeco Milling – Ndola Mill

Indeco Milling – Ndola Mill was sold on competitive tender basis to Dr R.L Mahtani of Ndola for US$ 1million cash plus take over of K3.2 billion Liabilities

43. Indeni Petroleum Refinery Company Limited

5% Shares of GRZ’s 50% shares in Indeni Petroleum Refinery were offered to the Zambia privatisation Trust Fund (ZPTF) for future floatation in the Zambia Public. The ZPTF accepted the offer in August 2003.

44. Intercontinental Hotel – Livingstone

Intercontinental Hotel – Livingstone was sold on competitive tender to Sun international of South Africa for the purchase price of US$6.5 Million. The purchase included leasehold rights to Rainbow Lodge.

45. Intercontinental Hotel – Lusaka

Intercontinental Hotel – Lusaka was sold on competitive tender to Marasa holdings of Uganda for the purchase price of US$8.8 million.

46. KM Katai

KM Katai was handed back to the Administrator of the Estate of KM Katai, Talwakalumo Enterprises due to Government decision.

47. Kabwe Industrial fabrics Limited

Kabwe Industrial fabrics Limited was sold on competitive tender to Namibstar (Pty) Ltd and Knightsbridge Industrial Investment for the purchase consideration of US$ 300,000 cash plus liabilities.

48. Kacholola Hotel

Kacholola Hotel was sold on right of first refusal to MBO and equity partner, Dr Moses Banda for K28 million payable K21 million cash and the balance deferred over 1 year.

49. Kabwe Tannery Limited
50. Kafironda Limited

34% Shares in Kafironda Limited was sold on right pre-emption to ICE Explosives (Africa) Limited for a purchase consideration of US$ 783,902 cash.

51. Kafue National Park – Kafwala Camp

Kafwala Camp is leased by the Ministry of tourism to Busanga Trails Limited on a right of first refusal basis

52. Kafue National Park – Lufupa Camp

Lufupa Camp is leased by the Ministry of tourism to Busanga Trails Limited on a right of first refusal basis.

53. Kafue National Park – Moshi Camp

Moshi Camp is leased by the Ministry of Tourism on competitive tender to Star of Africa (Pvt) Limited jointly owned by Callow Ventures (Pty) limited registered in British Virgin Islands and the Zimbabwe Sun Limited.

54. Kafue National park – Muyukuyuku Picnic Spot

Mayukwayukwa Picnic Spot has been leased by the Ministry of Tourism to Pro Africa Safaris for 15 years.

55. Kafue National Park – Ntemwa Lodge

Ntemwa Lodge is leased by the Ministry of Tourism on competitive tender to Chilongozi Safaris, formerly Tongabezi River Safaris.

56. Kafue national Park – Nanzhila Park

Nanzhila is leased by the Ministry of Tourism to Chundukwa Adventures on a competitive tender basis

56. Kafue National Park – Treetops Camp

Treetops Camp is leased by Ministry of Tourism to Treetops Management Committee on a competitive basis.

57. Kapiri Glass Products limited

89% shares in Kapiri Glass products were sold of pre-emption to Floco of Hamburg for US$1.4million plus liabilities and investment commitment of US$7 million bringing their shareholding to 98%. The remaining 2% shares are held by Zambia National Provident Fund.

58.Kawambwa Tea Company

Kawambwa Tea was sold on competitive tender basis to Metal Distributors (UK) Limited for K400 million cash.

59.Kafue Textiles (Zambia) Limited

The assets of KTZ were sold to MB International, a Zambian
Company for a purchase consideration of US$ 1million. MB International also agreed to write off K 1.2 billion owed to them by KTZ.

60. La Hacienda Hotel

La Hacenda Hotel was sold on competitive tender basis to Stanford M Hlazo of Mumbwa for K25 million cash.

61.Lake Hotels Limited

Lake Hotels was sold on competitive tender basis to Hon. Ben Mwiinga for US$611,400 plus all liabilities payable US$35,700 cash and the balance deferred over a 2 year period.

62. Lint Company of Zambia Chipata Unit

Lintco –Chipata was sold on competitive tender basis to Cotton of South Africa for Rand 3 million cash.

63.Lint Company of Zambia Gwembe Unit

Lintco – Gwembe was sold on competitive tender basis to Lonrho Zambia for US$2 million cash.

64. Lint Company of Zambia Lusaka Unit

Lintco – Lusaka was sold on competitive tender basis to Lonrho Zambia for US$4 million cash.

65. Lochinvar Camping Site

Lochinvar Camping Site together with Lochinvar Park – Community Camp Site were not available for leasing and were handed over to the community. These camps are on one site and being run by the community themselves.

66. Lochinvar Park – community Camp Site

Lochinvar Park – Community Camp Site together with Lochinvar Camping Site were not available for leasing and were handed over to the community. These camps are on one site and being run by the community

67. Lower Zambezi Park – A1 Chiawa Site

Chiawa Site is leased by the Ministry of Tourism to G & G Safari on a competitive tender basis.

68. Lower Zambezi Park – A2 Chifungulu Site

A2 Chifungulu Camp is leased by the Ministry of Tourism to Hartobezi Safari on a competitive tender basis.

69. Lower Zambezi Park – A3 Mwambashi Site

Mwambashi Site is leased by the Ministry of Tourism to Zambezi River Safaris on a competitive tender basis.

70. Lower Zambezi Park – B1 Nkalange Site

Nkalange Site is leased by the Ministry of Tourism to River Horse Safaris on a competitive tender basis.

71. Lower Zambezi Park – B2 Chifungulu Island Site

B2 Chifungulu Camp is leased by the Ministry of Tourism to Tongabezi Safaris on a competitive tender basis.

72. Lower Zambezi Park – B3 Musanga Camp

B3 Site is leased by the Ministry of Tourism to Kiambi Safaris on a competitive tender basis.

73. Lower Zambezi Park – Munsensenshi Site

Munsenseshi Site has been leased by the Ministry of Tourism to Wilco Limited on a competitive tender basis.

74. Lower Zambezi Park – Mushika Site

Mushika Site has been leased by the Ministry of Tourism to Safaris Expeditions (Z0 Limited on a competitive tender basis.

75. Luangwa Industries

Luangwa Industries Limited was sold on a competitive tender basis to TATA (Z) Limited for the purchase consideration of US$379,876.20

76.Lublend Limited

48.9% additional GRZ shares in Lublend (Zambia) Limited were sold for US$104,157 Mobil, Agip and Total on right of pre-emption basis. However, Caltex did not take up the offered shares which will be re-offered to the three oil companies on the basis of their current holding.

77. Lukanga Investment and Development Company Limited

Lukanga Investments and Development Company was sold under creditors receivership.

78. Lundazi Castle Hotel has been leased to Mr. Chifumu Banda and Rodgers Kunika for a period of 25 years.
79. Lusaka Engineering Company Limited

60% ZIMCO shares in Lusaka Engineering were sold on competitive tender to Amanita Zambiana for a total package of K1.8 billion.

80. Lyambai Hotel

Lyambai Hotel was sold on competitive tender basis to Josiah Situmbeko Songongo et al of Lusaka for K55.2 million payable K27.6 million cash and balance deferred over 1 year.

81. Maamba Collieries Limited

Nava Bharat Ventures (Pte) of Singapore paid US$ 26.07 million for 65% shares in MCL. However, the actual purchase consideration paid was nil since after the completion accounts were prepared the liabilities of Maamba were about US$92.6 million which was significant higher than the value of the coal mine net of liabilities at US$40.12 million. ZCCM IH retained 35% shares in Maamba.

82. MEMACO Farm – Four Farms (One Lot)

Memaco Farms 1088, 1824, 1872 and 1873 were sold on competitive tender basis to Amedeaus International of Lusaka for US$232,000 cash.

83. MIL Construction Limited

MIL Construction was sold on right of first refusal to MBO for K120 million payable K12 million cash and balance deferred.

84. MIL Engineering & Tooling

MIL Engineering & Tooling was on right of first refusal to MBO for K220 million payable K88 million cash and balance deferred.

85. MIL Sawmilling & Joinery Limited

The 100% GRZ shares in MIL Sawmilling and Joinery were sold to Integrated Management Services Limited (IMSL) for a purchase price of K140 million. This was after the Government, Mulungushi Investment Ltd(in liquidation) and SGM Associates Ltd entered into a Novation Agreement with IMSL relating to the Agreement for the Sale and Purchase of Shares of the company.

86.Mansa Hotel

Mansa Hotel was sold on right of first refusal to MBO for K225 million payable K22.5 million cash and the balance deferred.

87. Metal Fabricators of Zambia Limited

33% shares in ZAMEFA were sold on right of pre-emption to Phelps Dodge for US$3.2 million bringing their shareholding to 82%. The remaining 18% shares were transferred to the Zambia Privatisation Trust Fund.

88.Mindeco Small Mines Limited

Mindeco Small Mines was sold on competitive tender basis to MBO and Technical Partner for K183 million.

89. Mosi oa Tunya –Makumbi Launch Site

Launch Site has been leased by the Ministry of Tourism to Eagle Travel Limited on a competitive tender basis.

90. Mosi oa Tunya Park – Fairyland Camp

Fairyland Camp is leased by the Ministry of Tourism on competitive tender to Star of Africa(Pvt) Limited jointly owned by Callow Ventures (Pty) Limited registered in British Virgin Islands and the Zimbabwe Sun Limited.

91. Mpelembe Drilling Limited

Mpelembe Drilling Limited was sold on competitive tender to the MBO Team for the purchase consideration of K335 million.

92.Mpende Fisheries

Mpende Fisheries was handed back to owner due to Government decision

93. Mwaiseni Stores Limited
    Holding Company dissolved after privatizing operating units.

94.NDC Property – Chililabonbwe (Ref: 210 CB)

NDC Property – Chililabombwe (Ref: 210 CB) was sold on competitive tender basis to Zambezi Snack Bar for the total purchase consideration of K35 million.

95. NDC Property – Kabwe (Ref: 206 KB)

NDC Property – Kabwe was sold on competitive tender basis to sigma Investments for the total purchase consideration of K33 million.

96. NDC Property – Livingstone (Ref: 207 LS)

NDC Property – Livingstone (Ref: 206 LS) was sold on competitive tender basis to Lukoma Holdings for the total Purchase consideration of K35 million.

97. NDC Property – Mazabuka (Ref: 209 MB)

NDC Property – Mazabuka (Ref:209 MB) was sold on competitive tender basis to Mrs Anne Mung’omba for the total purchase consideration of K67 million.

98. NDC Property – Monze (Ref: 208 MZ)

NDC Property – Monze (Ref: 208 MZ) was sold on competitive basis to Mandes Supermarket for the total purchase consideration of K31 million.

99. NDC Property – Mufulira (Ref: 204 MF)

NDC Property – Mufulira (Ref: 204 MF) was sold on competitive tender basis to Sunbird Drug Stoare for the total purchase consideration of K25 million

100. NDC Property – Ndola (Ref: 203 ND)

NDC Property – Ndola) was sold on competitive tender basis to Chemopharm Limited for the total purchase consideration of K250 million

101.NDC Property – Parklands Kitwe (Ref: 202 KW)

NDC Property – Parklands Kitwe (Ref: 202 KW) was sold on competitive tender basis to Jin Feng Limited for the total purchase consideration of K48 million

102. NHDC – Chichele Lodge

Chichele Lodge is leased by the Ministry of Tourism on Competitive tender to Star of Africa (Pty) Limited jointly owned by Callow Ventures (Pty) Limited registered in Britain Virgin Islands and The Zimbabwe Sun Limited

103.NHDC – Kasaba Bay Lodge

Kasaba Bay Lodge is leased to Eco-Tourism by the Ministry of Tourism.

104. NHDC – Lochinvar Lodge

Lochinvar Lodge is leased by the Ministry of Tourism on competitive tender to Star of Africa (Pty) Limited jointly owned by Callow Ventures (Pty) registered in Britain Virgin Islands and the Zimbabwe Sun Limited.

105. NHDC – Mfuwe Lodge

Mfuwe Lodge has been leased by the Ministry of Tourism to Mfuwe Trails (Z) Limited on a competitive tender basis.

106. NHDC – Mufulira Hotel

Non-operating hotel closed by Directorate of State Enterprises.

107. NHDC – Nkamba Bay Lodge

Nkamba Bay Lodge has been leased by the Ministry of Tourism to Game Trackers Safari Limited on a competitive tender basis.

108. NHDC – Pamodzi Hotel

70% shares in Pamodzi Hotel were sole don competitive tender to TATA Zambia Ltd for the purchase consideration of US $2,536,000.00 plus all liabilities. The remaining shares will be offered on Public flotation

109. NHDC – Rainbow Lodge

The sale of Intercontinental Hotel – Livingstone on competitive tender to Sun International of South Africa for the purchase price of US $6.5 million included the leasehold rights to Rainbow Lodge.

110. NHS Property – Cairo Road (Ref: 301 LK)

NHS Property – Cairo Road (Ref: 301 LK) was sold on competitive tender basis to Shoprite for the total purchase consideration of SA Rand 1,136,000.

111. NHS Property – Kabwata, Lusaka (Ref: 302 LK)

NHS Property – Kabwata, Lusaka (Ref: 302 LK) was sold on competitive tender basis to Valachi Enterprise for the total purchase consideration of K155 million.

112. NHS Property – Kitwe Matuka Ave (Ref: 303 KW)

NHS Property – Kitwe Mastuka Ave. (Ref: 303 KW) was sold on competitive tender basis to Shoprite for the total purchase consideration of SA Rand 856,000.

113. NHS Property – Livingstone (Ref: 307 LS)

NHS Property – Livingstone (Ref: 307 LS) was sold on competitive tender basis to Shoprite for the total purchase consideration of SA Rand 112,000

114.NHS Property – Mufulira (Ref: 304 MF)

NHS Property – Mufulira (Ref: 304 MF) was sold on competitive tender basis to Pep Stores Ltd for the total purchase consideration of US $110,000 cash.

115. NHS Property – Ndola (Ref: 306 ND)

NHS – Ndola was sold on competitive tender basis to Pepkor of South Africa as part of a package deal with ZCBC – Cairo, Lusaka and ZCBC – Kitwe for the total purchase consideration of SA Rand 7.5 million.

116. NIEC Agencies Limited

Holding company dissolved after privatising operating units.

117. NIECO Farms

NIEC Farms was sold on competitive tender to EBM Chambers for K125 million

118. NIEC Overseas Services Zambia Limited

NIECOS was sold on competitive tender to the MBO Team for the total purchase consideration of K175 million payable K50 million cash and the balance deferred over 3 years.

119. Nanga Farms Limited

Nanga Farms was effectively privatised through signing of shareholders agreements with Commonwealth Development Corporation in January, 1993.

120. National Breweries Limited

21% shares in National Breweries were sold on right of pre-emption to Henricks Syndicate for US $1,785,000 brining their shareholding to 70%. The remaining 30% shares were offered to the public through the Zambia Privatisation Trust Fund.

121. National Drug Company Limited

National Drug Company Ltd was sold on competitive tender to Nachera Holdings Ltd and Patrick Chiumya, all of Lusaka for K900 million payable K700 million cash and K200 million deferred.

121. National Milling Company

51% shares in National Milling were sold on right of pre-emption to Erabus BV and Namib Mills for US $400,000 bringing their total shareholding to 100%.

122. Nchanga Farms – Mbala Farm

Mbala Farm was sold on competitive tender to RDS Investments for the purchase consideration of K510,000,000 cash.

123. Nchanga Farms – Mukumpu Ipumbu Farm

Mukumpu Ipumbu Farm & Mukumpu Kampemba Ranch were both sold on competitive tender to Commonwealth Development Corporation for the purchase US $7.2 million cash.

124. Ndole Bay

Ndole Bay was handed back to original owners due to Government decision.

125. New Savoy Hotel

100% GRZ shares in New Savoy Hotel Limited were sold to Integrated Hospitality Solutions Limited for a total package of K3.150 billion.

126. Nkwazi Manufacturing Company Limited

86% shares in Nkwazi were sold on right of pre-emption to M K Patel for K100 million cash.

127. Norgroup Plastics Limited

Norgroup Plastics was sold on Competitive tender to Simba Chemicals Industries of Ndola for the purchase consideration of K300 million cash plus liabilities.

128. Northern Breweries (1995) PLC

Northern Breweries was sold on competitive tender to Lonrho Limited for US $9 million.

129. Ntingila Fisheries

Ntingila Fisheries was handed back to previous owner due to Government decision. Consideration paid to Ministry of Lands.

130. Nyika National Park – Nyika Camp

Nyika Camp has been leased by the Ministry of Tourism to Robin Pope Safaris Limited on a right of first refusal.

131. PC Sichivula

P C

138. Rycus Heavy Haulage

50,260 GRZ shares in Rycus Heavy Haulage which were not paid for by some members of the MBO team were withdrawn and offered to the non-defaulting members of the MBO team for a purchase consideration of K125,650,000 on the right of first.

139. Scaw Limited

Scaw Limited was sold on competitive tender to Beekay Engineering of India for US2 million cash plus all liabilities.

140. South Luangwa Camp – Nsolo Camp

Nsolo Camp has been leased by the Ministry of Tourism to Kapani Safaris Limited on a right of first refusal basis.

141.
South Luangwa Park – Big Lagoon

Big Lagoon Camp has been leased by the Ministry of Tourism to Eco-Tourism Limited on a competitive tender basis.

142.
South Luangwa Park – Chamilandu Camp

Chamilandu Camp has been leased by the Ministry of Tourism to Chinzombo Safaris Limited on a right of right refusal basis.

143. South Luangwa Park – Kakuli Camp

Kakuli Camp has been leased by the Ministry of Tourism to Savanna Trails Limited on a right of first refusal basis.

144. South Luangwa Park – Kapamba Camp

Kapamba Camp has been leased by the Ministry of Tourism to Kapamba Trails Limited on a right of first refusal basis.

145. South Luangwa Park – Luambe Camp

Leased by the Ministry of Tourism to ZAMCAN – Luangwa wilderness on a 25 year lease.

146. South Luangwa Park – Luanfwa Camp

Luamfwa Camp has been leased by the Ministry of Tourism to Transact Limited on a right of first refusal basis.

147. South Luangwa Park – Luwi Camp

Luwi Camp is leased by the Ministry of Tourism to Kapani Safaris Limited on a right of first refusal basis.

148. South Luangwa Park – Manzi Camp

Manzi Camp is leased by the Ministry of Tourism to Chinzombo Safaris Limited on a right of first refusal basis.

149.
South Luangwa Park – Muchenja Camp

Muchenja Camp is leased by the Ministry of Tourism to Savannah Trails Limited on a right of first refusal basis.

150.
South Luangwa Park – Nsefu Camp

Nsefu Camp is leased by the Ministry of Tourism to wilderness Trails Limited on a right of first refusal basis.

151. South Luangwa Park – Old Lion Camp

Old Lion Camp is leased by the Ministry of Tourism to Eco – Tourism Limited on a competitive tender basis.

152.
South Luangwa Park – Tena Tena Camp

Tena Tena Camp is leased by the Ministry of Tourism to Robin Pope Safaris Limited on a right of first refusal basis.

153.
South Luangwa Park – zebra Pan

Zebra Pan Camp is leased by the Ministry of Tourism to Robin Pope Safaris Limited on a right of first refusal basis.

154. South Luangwa Park – Zebra Plain Camp

Zebra Plain Camp is leased by the Ministry of Tourism to Tundwe Safaris Limited on a right of first refusal basis.

155. Supa Baking Company – Kitwe Bakery

Supa Baking company – kitwe bakery was sold on competitive tender to mr. Reniie of kitwe for K380 million

156. Tobacco Leaf Limited – (National Tobacco Company)

National Tobacco Company – Natco was sold on right of f irst refusal to the Tobacco Association of Zambia for the Total consideration of US$ 500,000.

157.ZADL Farms – Chainda Dairy Farm

Chainda Dairy Farm was sold on competitive tender basis to HS Limited of Lusaka for the total purchase consideration of K96.8 million cash

158. ZADL Farms – Chilongolo Farm

Chilogolo Farm was sold on competitive tender basis to Zamdaell Farms Limited of Lusaka for the total purchase consideration of K330 million cash.

159. ZADL Farms – Chipata Dairy Farm

Chipata dairy Farm was sold on competitive tender basis to Eastern Dairies Limited for the total purchase consideration of K95 million cash.

160. ZADL Farms – Hartley Farm

Hartley Farm was sold on competitive tender basis to Hon Gilbert Mululu for the total purchase consideration of K85.5 million cash.

161.
ZADL Farms – Holding Farm

Holding Farm was sold on competitive tender basis to Evergreen Farm Limited for the total purchase consideration of K30.8 million cash.

162. ZADL Farms – Kafubu Dairy Farm, Ndola

Kafubu Dairy Farm was sold on competitive tender basis to Ernest Mutamboh of Lusaka for the total purchase consideration of US$ 320, 000

163. ZADL Farms – Kapilyomba Dairy Farm

Kapilyomba Dairy Farm was sold on competitive tender basis to Parkside Trust Limited for the total purchase consideration of K185, 999, 000 cash.

164. ZADL Farms – Kasama Dairy Farm

Kasama Dairy Farm was sold on competitive tender basis to Bwikashi Properties Limited for the total purchase consideration of K50.2 million cash.

165. ZADL Farms – Katito Crop Farm

Katito Crop Farm was sold on competitive tender basis to G Sikasote of Lusaka for the total purchase consideration of K150 million cash.

166. ZADL Farms – Mansa Dairy Farm

Mansa Dairy Farm was sold on competitive tender basis to Mr P M. Chipulu for the total purchase consideration of K50 million cash.

167. ZADL Farms – Minisini Crop Farm

Minisini Crop Farm was sold on competitive tender basis to Golden Valley agriculture Research Trust for the total purchase consideration of K100 million cash.

168.
ZADL Farms – Mongu Dairy Farm

Mongu Dairy Farm was sold on competitive tender basis to APG Motors Limited for the total purchase consideration of K20 million cash.

169.
ZADL Farms – Nkumba Piggery & Feedlot, Lusaka

Nkumba Piggery & feedlot was sold on competitive tender basis to RP Investments Limited for the total purchase consideration of K81 million cash.

170.
ZADL Farms – Simmenthal Stud Farm

Simmenthal Farm was sold on competitive tender basis to Mr Choongo for the total purchase consideration of K81 million cash.

171. ZADL Farms – Solwezi Dairy Farm

Solwezi Dairy Farm was sold on competitive tender basis to Kansanshi dynamics Limited for the total purchase consideration of K111.5 million cash.

172. ZAFFICO – Dola Hill Sawmill

ZAFFICO – Dola Hill Sawmill was sold on competitive tender basis to Wood Processing Limited for the total purchase consideration of US$ 500,000 for the portion of standing plantation volume and US$ 65, 000 f or the sawmill assets.

173. ZAFFICO – Kafubu Sawmill

ZAFFICO – Kafubu Sawmill was sold on competitive tender basis to the MBO Team led consortium called Copperbelt Forestry company for the total purchase consideration of US$ 1, 150, 000 cash plus all third party liabilities as at the take over.

174.
ZAFFICO – Kalibu Sawmill

ZAFFICO – Kalibu Sawmill was sold on competitive tender basis to MBO Team led consortium called Copperbelt Forestry company for the total purchase consideration of US$ 100, 000 cash for the plantation and K620, 000, 000 cash for the Sawmill assets.

175. ZAL Elevators

ZAL Elevators was sold on right of first refusal to MBO Team and their joint venture partners for K85 million.

176. Zambia Telecommunication Company

LAP GreenN of Libya paid US$ 257 million consideration for 75 per cent shares in ZAMTEL. GRZ retained 25% shares in the company. All
employees were declared redundant. LAP GreenN employed new employees on fresh conditions and terms of employment.

177.
Zambia National Commercial Bank plc

In April 2007, Zambia National Commercial Bank PLC (“Zanaco”) was partially privatized with the Government of the Republic of Zambia (GRZ) selling a 49% stake in Zanaco to Rabobank Group
The final stage of the privatization was completed in November 2008 by the offer for sale of 25.8% of the shares held by Zambia Privatisation Trust Fund (ZPTF) (on behalf of GRZ) to the Public
Zanaco simultaneously raised new capital through an Offer for Subscription.

178. ZCBC Property – Cairo Road (Ref: 601 LK)

ZCBC Property – Cairo Road (Ref: 601 LK) was sold on competitive tender basis to Pepkor of South Africa as part of a package deal with NHS – Ndola and ZCBC – Kitwe for the total purchase consideration of SA Rand 7.5 million.

179. ZCBC Property – Chililabombwe (Ref: 4526)

ZCBC Property – Chililabombwe (Ref: 4526) was sold on competitive tender basis to Shoprite of South Africa for the total purchase consideration of US$ 30,000.

180.
ZCBC Property – Chingola (Ref: 604 CG)

ZCBC Property – Chililabombwe (Ref: 604 CG) was sold on competitive tender basis to Shoprite of South Africa for the total purchase consideration of SA Rand 127, 000 cash.

181.
ZCBC Property – Kabwe (Ref: 608 KB)

ZCBC Property – Kabwe (Ref: 608 KB) was sold on competitive tender basis to Shoprite of South Africa for the total purchase consideration of SA Rand 127, 000 cash.

182. ZCBC Property – Kasama (Ref: 609 KS)

ZCBC Property – Kasama (Ref: 609 KS) was sold on competitive tender basis to Daksha stores for the total purchase consideration of K111 million cash.

183.
ZCBC Property – Kitwe (Ref: 602 KW)

ZCBC Property – Kitwe (Ref: 602 KW) was sold on competitive tender basis to Pep Stores Limited as part of the package deal for the total purchase consideration of SA Rand 7.5 million.

184.
ZCBC Property – Luanshya (Ref: 609 LH)

ZCBC Property – Luanshya (Ref: 306 LH) was sold on competitive tender basis to Pepkor Stores Limited for the total purchase consideration of US$ 50, 000.

185. ZCBC Property – Mufulira (Ref: 605 MF)

ZCBC Property – Mufulira (Ref: 605 MF) was sold on competitive tender basis to Daksha stores for the total purchase consideration of SA Rand 93, 000

186. ZCBC Property – Petauke (Ref: 6326)

ZCBC Property – Petauke (Ref: 6326) was sold on competitive tender basis to Pep Stores Limited for the total purchase consideration of US$ 30, 000.

187.
ZCBC Property – River side Kitwe (Ref:606KW)

ZCBC Property – Kitwe (Ref: 606 KW) was sold on competitive tender basis to Vin-Mas Ltd for the total purchase consideration of K133 million cash.

188.
ZCBC Property – Solowezi Ref: 2426)

ZCBC Property – Solowezi Ref: 2426) was sold on competitive tender basis to Pep Stores Ltd for the total purchase consideration of US$ 50, 000.

189. ZCCM (B) – Luanshya Division

ZCCM (B) – Luanshya Division/ Baluba mining and metallurgical complex (the “BCo” Package) excluding the precious Metals plant was sold on competitive tender basis to Binani Industries an International company registered in both the United kingdom and India.

The negotiated purchase consideration comprising cash at close of US$ 35 million and ZCCM retained interest of 15%.

190.ZCCM (C) – Mufurila Division

ZCCM (C) – Mufurila Division together with Nkana Mine, concentrator and Cobalt Plant was sold on competitive tender basis to First Quantum mines Limited and Glencore International AG.

The negotiated purchase consideration of US$43 million comprising cash at close of US$ 20 million and US$ 23 million deferred.

ZCCM retained interest of 10%.

191.
ZCCM (D) – Chambishi Copper Mine

ZCCM (D) – Chambishi copper mine assets were sold on competitive tender basis to China Non-Ferrous Metal Industries of the republic of China.

The negotiated purchase consideration comprised cash at close of US$ 20 million and ZCCM retained interest of 15%.

192. ZCCM (E) – Kansanshi Copper Mine

ZCCM (E) – Kansanshi Copper Mine was sold on competitive tender basis to Cyprus Amax of the USA.

The negotiated purchase consideration comprised cash at close of US$ 3 million, conditions deferred cash of US$ million (Depends on the results of the feasibility studies) and ZCCM retained interest of 20%.

Cyprus Amax is currently conducting feasibility studies and exploration works that are expected to lead to large scale mining.

193. ZCCM (F) – Nampundwe Pyrite Mine

ZCCM (F) – Nampundwe Pyrite Mine which is part of the package of assets comprising, Nchanga Division including the Chingola Refractory Ore dumps (CROs) and Konkola Division including the Konkola Deep Mining Project (KDMP) was sold on competitive tender basis to a consortium comprising Zambia Copper Investment (ZCI), International Finance company (IFC) and the commonwealth Development Corporation (CDC) . The negotiated purchase consideration comprised cash at close of US$ 30 million, conditional/ deferred cash of US 60 million (depends on the results of the feasibility studies) and ZCCM retained interest of 20% plus future copper and cobalt future price participation of US$ 125m.

194. ZCCM (H) – Ndola precious Metals Plant

At bid closing on 28 February 1997, no serious offers were received for this package. Following a re-tender, the package has been sold to Binani Group. Completion was archived in November 1998.

The negotiated purchase consideration comprised cash at close of US$ 350, 000 and Future performance related participation/ Sharing.

195.
ZCCM (J) – Power Division

The ZCCM Power division (excluding the bulk transport, its assets and fleet vehicles) was sold on competitive tender basis to the Copperbelt Energy Consortium comprising National grid company and Midland Power International both of the United kingdom, together with a team of some ZCCM managers.

The negotiated purchase consideration comprised cash at close of US$ 50 million ZCCM retained Interest of 20% and Unconditional debt assumption of US$ 73 million and Conditional debt assumption of US$ 61 million.

196. ZCCM (L) – Chingola Refractory Ores Dumps

ZCCM (L) – Chingola Refractory Ores Dumps (CROs) which is part of the package of assets comprising Nchanga Division, Konkola Division including Konkola Deep Mining Project (KDMP) and Nampundwe Pyrite Mine was sold on competitive tender basis to a consortium comprising Zambia Copper Investment (ZCI), International Finance company (IFC) and the commonwealth Development corporation (CDC) .

The negotiated purchase consideration comprised cash at the close of US$ 30 million, conditional/ deferred cash of US$ 60 million (depends on the results of the feasibility studies) and ZCCM retained interest of 20% plus future copper and cobalt price participation of US$ 125 million.

197.
ZCCM – Bulk Transport

The ZCCM Bulk Transport assets were sold to the Bulk Transport Limited (BTL) on a competitive tender basis at a purchase consideration of US$ 180, 000 extinguished as a debt-swap with Dar Farms and ZCCM.

BTL was formed by Certain employees of ZCCM constituting a Management Buy Out (MBO) Team and a strategic partner (Dar Farms).

198. ZCCM – Chibuluma Mine

The ZCCM – Chibuluma Mine assets were sold on a competitive tender basis limited and Miranda Mine Limited both of South Africa Junior mining companies; Crew Development Corporation, a Canadian development company and Genbel Limited (Formerly Randex Limited), a mining finance company of Australia .

The negotiated purchase consideration comprised cash at close of US$ 17.5 million, ZCCM retained Interest of 15% and Future Copper and Cobalt price participation Schemes.

199. Monarch

200.
ZCCM – Konkola Division

ZCCM Konkola Division which is part of the package of assets comprising Nampundwe Pyrite Mine, Nchanga Division including Chingola Refractory Ore Dumps and Konkola Deep Mining Project (KDMP) and was sold on competitive tender basis to a consortium comprising Zambia Copper Investment (ZCI), International Finance company (IFC) and the commonwealth Development corporation (CDC) .

The negotiated purchase consideration comprised cash at the close of US$ 30 million, conditional/ deferred cash of US$ 60 million (depends on the results of the feasibility studies) and ZCCM retained interest of 20% plus future copper and cobalt price participation of US$ 125 million.

201.
ZCCM – Nchanga Division

Nchanga Division including the Chingola Refractory Ore dumps (CRO’s) which is part of the package of assets comprising, Konkola division including the Konkola
Deep Mining project (KDMP) and Nampundwe Pyrite Mine was sold on competitive tender basis to a consortium comprising Zambia copper investment (ZCI) , International Finance company (IFC) and the Commonwealth Development Corporation (CDC).

The negotiated purchase consideration comprised cash at close of US$ 60 million (depends on the results of the feasibility studies) and ZCCM retained interest of 20% future copper and cobalt future price participation of US$ 125 million.

202. ZCCA – Nkana Mine

ZCCA – Nkana Mine, Concentrator and cobalt plant together with Mufulira Division was sold on a competitive tender basis to First Quantum minerals Limited and Glencore International AG.

The negotiated purchase consideration of US$ 43 million comprised cash at close of US$ 20 and US$ 23 million deferred.

ZCCM retained Interest of 10%.

203.
ZCCM – Techpro Zambia Limited

ZCCM – Techpro Zambia Limited was sold to a Management Buy Out (MBO) Team for the cash consideration of
US$ 200, 000.

204.ZCCM Kabwe Water & Sewerage Plants

ZCCM Kabwe Water & Sewerage Plants were sold to the Kabwe Municipal Council for a total purchase consideration of K241 million.

205.
ZCCM Lusemfwa & Mulungushi Power Station

The assets in ZCCM Lusenfwa & Mulungushi Power Stations were sold to Lusemfwa Hydro Power Company Limited for
US$ 250, 000.

206.
ZNPWS – Chakwenga Lodge

ZNPWS – Chakwenga Lodge is leased by the Ministry of tourism to Hartobezi.

207.
ZNPWS – Munda Wanga & Botanical Gardens

ZNPWS – Munda Wanga & Botanical Gardens is leased by the ministry of tourism to Munda Wanga Limited owned by Progressive life Zambia and Kalimba Farms Limited.

208. ZNWMC Property – Chipata (Ref: 702 CP)

ZNWMC Property – Chipata (Ref: 702 CP) was sold on competitive tender basis to Mr and Mrs Patrick Ngulube for the Total purchase consideration of K85 million cash.
Document signed 14 September 1995

209.
ZNWMC Property – Choma (Ref: 709 CM)

ZNWMC Property – Choma (Ref: 709 CM) was sold on competitive tender basis to Betrich Marketing for the Total purchase consideration of K28 million cash.
Document signed 22 June 1995

210. ZNWMC – Head Office (Ref: 710 LK)

ZNWMC Head office was sold on competitive tender to Printpak Zambia Limited for the purchase consideration of k250 million cash.

211. ZNWMC Property– Kasama (Ref: 709 KS)

The Kasama Property was sold to House of Kasama on competitive tender for the purchase consideration of K25 million cash.

212. ZNWMC Property – Katete (Ref: 6287)

ZNWMC Katete was sold on competitive tender basis to Pep Storees Limited for the total purchase consideration of
US$ 20,000.

213. ZNWMC Property – Longolongo Road (Ref: 705 LK)

ZNWMC Property – (ref: 705 LK) was sold on competitive tender basis to Dr Joseph Kasonde for the total purchase consideration of K315 million cash.

214. ZNWMC Property – Mongu (Ref: 708 MG)

ZNWMC Property – (Ref: 708 MG) was sold on competitive tender basis to Agribim Limited for the total purchase consideration of K30 million.

215. ZSBS – Kalambo Rd, Lusaka

Kalambo unit was sold on competitive tender to Zambia Revenue Authority for K320 million cash

216. ZSBS – Kitwe Manufacturing Unit

Kitwe Manufacturing unit was sold to Wood processing Company Limited for US $385,500.

217. ZSBS – Kitwe Sales Outlet

Kitwe Sales outlet was sold on competitive tender to Spectra Oil for K81 million.

218. ZSBS – Lusaka Door Manufacturing Unit

Lusaka Door factory was sold on competitive tender to S C Kopulande for $250,000 payable US $25,000 cash and balance deferred.

219. ZSBS – Sales Outlet, Buyantanshi Rd, Lusaka
     Buyantanshi unit was sold on competitive tender to Phillips Electrical and M. Sirajuddin, both of Lusaka for the total consideration of K521 million

220.
ZSIC – Zambia State Insurance Medical Trust Ltd

Insurance Medical trust was franchised to staff and workers on basis of mutual benefit.

221.
ZSIC – Zambia State Property Development Company

Non-operational company closed down and wound up by Zambia State Insurance Corporaiton.

222.ZSIC – Zambia State Security Limited

Non-operational company closed down and wound up by Zambia State Insurance Corporation

221.
Zamcargo
Zamcarco was sold on competitive tender basis to MBO team & Intertrek for US $522,000 cash including all liabilities save employee liabilities

222. Zambia Breweries Limited (Lusaka)

The company was split into two divisions to be sold separately. The minority shareholders, Zamanglo Industrial Corporation Limited (ZAMIC), exercised their pre-emptive rights to purchase the Central division and agreed to waive their pre-emtpive rights over the Northern division

ZAMIC purchased 90 per cent of the Central Division Brewery at an agred price of US $13, 815,000 together with the Central division residential properties at an agreed price of US $1,956,004. Following the netting off of their 25 per cent ownership in the company, a total of US $6,677,250 represents full payment for 90% of the Central division

223.
Zambia Cashew Company

87.5 per cent shares in Zambia Cashew Company were sold on competitive tender basis to Western Cashew Industries Limited for the purchase consideration of K100 million. The remaining 12.5 per cent is held by Commonwealth Development Corporation.

224. Zambia Ceramics Limited

Zambia Ceramics was sold on competitive tender to the MBO Team and their equity partner Pheonix Capital Ltd of Lusaka for US $220,000 cash plus all liabilities.

225.
Zambia Clay – Housing

Mortgages have been executed with most of the sitting tenants.

226.
Zambia Coffee Company Ltd

Zambia Coffee was sold on competitive tender to African Plantations Corporation LCD for US$115,694 plus all liabilities.

227.

Zambia Cold Storage – Chipata Plant

Chipata unit was sold on competitive tender to Mosali Agro Food Processors for K124.5 million

228. Zambia Cold Storage – Kabwe Retail Outlet

Kabwe Retail Outlet was sold on competitive tender basis to Raymond G Lewis of Kabwe for K37.5 million cash.

229.
Zambia Cold Storage – Kasama Plant

Kasama unit was sold on competitive tender to Northern Province Cooperative Union for a price of K61 million.

230.
Zambia Cold Storage – Livingstone Plant

Livingstone unit was sold on competitive tender to APG Motors for K180 million cash.

231. Zambia Cold Storage – Lusaka Plant

Zambia Cold Storage – Lusaka Plant was sold on competitive tender to Kembe Estates Ltd of Lusaka for K850 million cash plus liabilities of K200 million.

232.
Zambia Cold Storage – Mongu Plant

Mongu unit was sold on competitive tender to Mongu Meat Corporation plc for K150 million cash.

233.
Zambia Cold Storage Corp – Fountain Farm

Zambia Cold Storage – Fountain Farm was sold on competitive tender to Moses K. Nawa for the purchase consideration of K31,150,000.00

234. Zambia Concrete Limited

Zambia Concrete was sold on competitive tender to Frase Fyfe and Poseidon Construction for the purchase consideration of K125 million.

235. Zambia Detonators

70% shares in Zambia Detonators were sold to the minority shareholders, Nitro Nobel on pre-emptive rights for the purchase consideration of US $1,260,000. The sale resulted in the company being 100% owned by Nitro Nobel.

236. Zambia Engineering & Contracting Company Limited

ZECCO was sold on right of pre-emption to Energo Projekt for K415.8 million cash plus all liabilities.

237. Zambia Horticultural Products Ltd

Zamhort Lusaka was sold on competitive tender to Foodcorp Limited for a total package of US $3.565 million of which US $1.1 million was a cash consideration.

238.
Zambia Housing Development Fund Ltd

Non-operational company dissolved under the Companies Act of 1994.

240. Zambia Maltings Ltd

Zambia Maltings Limited was sold to Sable Transport for the total price of K120 million cash.

241. Zambia National Insurance Brokers Ltd

Zambia National Insurance Brokers was sold on competitive tender to the management buy out team for K150 million cash.

242. Zambia National Shipping Line.

Non-operational company dissolved under the British Companies Act 1985.

243. Zambia Oxygen Limited

70% majority shareholding was sold on competitive tender to African Oxygen Limited of South Africa for US $4.6 million.

244. Zambia Pork Products

Zambia Pork Products was sold on competitive tender to Webster C Musukwa of Lusaka for K300 million plus K200 million employee liabilities.

245.
Zambia Railways Limited

The concession agreement was signed with NLPI/Spoornet on 14th February 2003. The commercial terms are as follows; Fixed concession fee of US$ 253,500,844 spread over 20 years plus a variable fee of 5% on turnover and an investment pledge of US $64,300,000.

246. Zambia Seed Company Limited

Some changes at shareholding level took place in March 1999 whereby GRZ shareholding in the company was reduced from 40% to 37.5 %. ZCF and ZSPA combined shareholding was also reduced from 40% to 10%. As a result of this Svalof Weibull AB shareholding increased from 10% to 27.5 % while Swedfund International AB shareholding increased from 10% to 25%.

247. Zambia State Financing Company Limited

Zambia State Financing was sold on competitive tender to the MBO Team and their equity partner, Geshom Mumba for the purchase consideration of K70 million.

248. Zambia Sugar Company Limited

Tate & Lyle paid US $20.8million for 40% of shares – price offset by $6 million for surrender of rights. CDC paid equivalent US $16 million for 30% of shares and will provide US $15 million in new financing. Joint New investment commitment US $69 million. Following flotations 30% of shares will be in hands of Zambian public. Flotation of initial 7% took place in August 1996.

249. Zuva Zambia Ltd

Zuva Zambia Limited was sold to L & C Wapamesa of Lusaka for the Kwacha equivalent of US $27,690 cash.

COMPANIES UNDER PREPARATION

251. Contract Haulage
252. Kafue National Park – Ngoma Lodge
253. Kariba Minerals Limited
254. Mukuba Hotel
255. Mulobezi Railway
256. National Airports Corporation – Livingstone
257. National Airports corporation – Mfuwe
258. National Airports Corporation – Ndola
259. Nitrogen Chemicals of Zambia
260. State Lotteries Board
261. TAZAMA Pipeline
262. Tanzania Zambia Railways Limited
263. Zambia Educational Publishing House
264. Zambia Electricity Supply Corporation
265. Zambia National Building Society (ZNBS)
266. Zambia Postal Services Corporation (ZAMPOST)
267. Zambia State Insurance Corporation (ZSIC)

268.INDENI

269. Motor City Ltd
     DGH Poly Products Ltd.

270.Ndola Lime Limited

WITH OR WITHOUT THE ISSUE OF PRIVATISATION, PEOPLE HAVE ALREADY DECIDED TO SUPPORT AND VOTE FOR HH-Otis Bwalya.

People of Zambia are fatigued with this issue of privatisation. This is one issue that has been there for more than 20 years now but surprisingly enough it has only become so hot, rife under PF. This is all because those that have been charged with the responsibility of managing the affairs of our country are so incompetent and now they want to blame their failures on an innocent man like HH.

So many people were involved in this privatisation exercise and targeting only one individual and accusing him of the wrong things that could have taken place during the time is unrealistic and very unfair. Where was the government and its cabinet at the time? Why are others such as Mr Lungu who offered legal advice not being mentioned when they were part of this privatisation program?

To us, we want to believe that this whole thing has strategically been planned to bring one man in the name of HH down. They want to disadvantage him, to ensure that he doesn’t assume the presidency of Zambia. These are jealous people who have failed to challenge HH on competence, they have failed to challenge him on substance and now have resorted to accusing him of things he did not do, they accuse him of a matter that is as good as dead.

Today many Zambians know that this story is a lie, it is stale but it is only being pursued by the enemies of progress to scandalise those that have gone ahead of them politically or otherwise.

We are happy to mention though that no matter the malice, no matter the scorn, no matter the venom from these frustrated individuals such as Edith Nawakwi, the people of Zambians have already decided to go with HH next year. They have resolved to support him and ultimately give him the presidency come August 2021. No one, not even Nawakwi and her fellow failures in PF will stop this. This is a revolution and HH is unstoppable this time around!

CIC PRESS TEAM.

PUBLIC LECTURE ON PRIVATISATION: ANSWERING FIVE BURNING QUESTIONS

By Alexander Nkosi (Development Economist: alexnkosi2006@yahoo.com)

1. WHAT IS THE TRUE VALUE OF ASSETS? ASSET VALUATION

A company has assets and liabilities. In most cases critics only focus on assets ignoring liabilities when discussing the value of a company. Valuation looks at both assets and liabilities to come up with the true value. These companies also come with hidden short and long term costs and other complex issues that most critics may not even be aware of. It is not enough to judge the deal based on perception of asset value without looking at all the fine details.

2. WHY ISN’T THE HIGHEST BIDDER ALWAYS THE BEST OPTION? THERE IS A DIFFERENCE BETWEEN BUSINESS AND DEVELOPMENT OBJECTIVES.

When Alexander Nkosi is selling a company his interest is purely to earn as much as possible from disposal and thereafter has no say or interest in the direction the company takes. The goal here is purely business and therefore the highest bidder gets the company. It is totally different with government where development objectives override business objectives. Government is not so much interested in just the revenue from the sale. Government wants to sell to a buyer with a very good and feasible growth strategy which will ensure job creation, better linkages with other sectors, increased forex earnings and increased government revenue through taxes. Hence government retains high interest in the asset, except instead of it being managed directly the burden is transferred to private hands so as to focus on tax collection. It therefore follows that the highest bidder does not always win. What happens to the comapny afterwards depends so much on how government supports and closely monitors it to ensure compliance.

3. WHAT IS THE ROLE OF A CONSULTANT?

When you are hired as a consultant to negotiate sale of national assets or valuation, you do not call the shots, you are only a consultant working within a very strict framework with a clear scope of work developed and monitored by government. You have clear deliverables and you are monitored to ensure compliance. Experts in government and multilateral advisors also monitor the quality of deliverables closely. You are only paid once government is satisfied with the deliverables after review by expert technocrats. In privatisation government calls the shots and has very qualified technocrats who carefully study the output from consultants.

Based on this rigorous process which is well documented and monitored, it is therefore assumed that final decisions made are done on merit and within the framework provided by government. Should people involved in this process buy companies at a latter stage? As long as it is not deemed illegal in the contracts signed between the consultant and government that is absolutely fine. We need to worry more about how assets are being managed afterwards and the level of local ownership. If locals invest better and expand those companies and make money, this should be celebrated because it is basically what we want; increased local ownership and growth.

4. HOW DO YOU ELIMINATE BIAS AND TAKE CARE OF ETHICAL ISSUES?

If my company was involved in providing consultancy during privatisation, I do not have to buy shares in one of the companies privatised for people to suspect bias. Bias can be there even without me buying shares at a latter stage. For instance, if there are no controls in place I can easily conive with my good friend Vikasi who is interested to bribe me and get favours. So in privatisation the work of consultants is closely monitored by experts in government, civil society and multilateral partners like African Development Bank, World Bank and IMF. These stakeholders have to be satisfied the consultant did an objective and thorough job with everything well documented. This eliminates bias and takes care of all ethical issues. This simply means that even if I decide to buy shares at a latter stage, ethical issues should not come up because they were eliminated at an earlier stage when internal and external experts demmed the valuation as thorough, rigorous and objective. It would actually be unfair to stop all individuals who worked for a firm that did valuation from buying shares in those assets in future.

To add context to this, Dr. Caleb Fundanga and Andrew Mwaba in their African Development Bank economic paper highlighted key stakeholders that played a role to ensure the process was of acceptable standard. UNDP provided the financing for technical work required to effect most of these legislative changes under the privatization and Industrial reform programs. The World Bank in provided assistance through the Privatization
and Industrial Reform Credit. A lot of support to the Zambia Privatization Agency also came through bilateral agencies, such as,
USAID, ODA, GTZ, NORAD, and DANIDA. This support was mainly in the form of provision of technical experts to assist ZPA in the technical evaluation of companies to be privatized, provision of equipment, such as, computers and the training of personnel. The ZPA also benefited from capacity building programs.

5. WHO SOLD THE COMPANIES?

To answer this question it is important to understand how the privatisation process was done. As clearly put by Dr. Caleb Fundanga and Andrew Mwaba in AfDB economic paper on the privatisation process, it followed the following steps:

(i) Tranching – approved by Cabinet;
(ii) Technical and financial evaluation of company to fix the price and recommend the mode of divestiture – done by Consultants;
(iii) ZPA decision on price and mode of divestiture;
(iv) Advertising and opening up of competitive bidding – by ZPA;
(v) Evaluation and short-listing of bidders – done by ZPA;
(vi) Negotiations – done by independent teams;
(vii) Signing of Heads of Agreement/Memorandum of sale by the Minister of Finance.

6. CONCLUSION

If we want local ownership, let us take keen interest in what is happening to the gold and other minerals at present. Both public and private ownership can work for a country as long as it has clear, stable, consistent and progressive policies which are strictly implemented.

Pilato writes:

Nawakwi Vs HH

Now that the excitement about this seems to be calm and bearable, i would like to share my thoughts to the discussion and probably ask a few questions.

I must quickly run to defend madam Nawakwi from those that have decided to insult her and her business simply because she asked unromantic questions. The concept of democracy demands that we allow others the same room of expression as we feel we deserve. The abuse and ridicule towards Madam Nawakwi that I saw after the radio programme is backwards and any person who believes in democracy must condemn it with the arrogance they can afford. She has the right to ask questions even if those questions has the power to destabilize our comfort just as we also can ask her in return. Young people of this beautiful great country must resist the temptation to demonize those that ask difficult questions instead they must dare to engage no matter how difficult it may be to respond. Young people of this country have the power to influence the reality of today and of the future of this country therefore it is necessary that they aspire for a superior level of engagement with each other no matter the environment.

Coming to the issue of Madam Nawakwi and Mr. HH, I have continued to ask myself why it is fashionable to call out Mr. Hichilema alone on privatisation in Zambia even when it is clear that many Zambians were involved in the process. The concept of accountability is and should be broad beyond political opportunities. Those that demand for accountability and transparency must do so not because it advantages them politically.

Since there are so many Zambians dead and alive who were involved in the privatisation process in Zambia, why do we just focus on an individual, is it because he wants to become president of this country?

If Mr. Hichilema was not a political threat to those in power, were we going to still crucify him for his involvement in the process?

Why are we not demanding to know what Madam Nawakwi, President Lungu, Mr. Elias Chipimo and many others did and what they benefited individually?

I ask these questions because failure to be clear on the crusade in demanding for accountability and transparency may reduce the whole trip to a fight against an individual. The scope for the fight for accountability and transparency regarding the privatisation process should be expanded beyond an individual if our fight is to be credible.

If Mr. Hichilema stepped down tomorrow from active politics, are we going to see a sustained fight demanding for details of what happened during that process or we will go back to sleep?

What about leaders who were in government, to what extent did they fail in their responsibilities to protect the interests of our people?

If Madam Nawakwi can confidently claim that an individual dribbled them in the privatisation process, what did she and her government do about it? Why does she feel the need to act now? What did she do that allowed an Individual to take advantage of the whole process?

If Mr. Hichilema was a poor man today living at his farm in Namwala, was Madam Nawakwi going to be demanding for explanations from him today?

To the young people of this country I would like to challenge you to take the demand for accountability as your duty and should be beyond partisan politics. As it can be observed, politicians will only demand for accountability and transparency when it benefits them and their career prospects. I

Have a great weekend iweeee