WHAT CAUSED BOZ TO CLOSE DBZ?

DBZ moves to write off K693.5m in loans issued to politically exposed persons

THE Development Bank of Zambia (DBZ) has started a process of writing off “non-performance” loans amounting to K693.5 million which were issued to some politically exposed persons (PEPs).

About K71,603,789 million has since been written off, according to sources within the Ministry of Finance who fear that the execution of the debt cancellation was illegal as it did not have blessings from the Secretary to the Treasury.

DBZ Board Chairman, Noel Nkhoma, has however explained that the decision to write off non-performing loans was a directive from the Bank of Zambia, in accordance with the law, stressing that authority had actually been sought from the Minister of Finance.

According to correspondence obtained by News Diggers, the directive to cancel the loans from at least 19 projects, most of which belong to politically exposed persons (PEPs) came from the Bank of Zambia.

“The Development Bank of Zambia has a loan book characterised by high Non-Performing Loans (NPL). The high NPL is as a result of unsustainable loans and accrued interest. The high NPL portfolio is in contravention of regulation nine of the Classification and Provisioning directives, 2020. The Bank of Zambia in their 2022 Examination Report of the Bank directed that K693.5 million should be written off. In this regard, the Bank has proposed that 19 projects should be written-off. These write-offs are proposed in such a way that they also help to improve the liquidity position of the Bank and therefore enable the Bank to resume its lending operations,” read the report.

Further information contained in the report revealed that DBZ had over K1.2 billion in loans, out of which 87 per cent were non-performing.

“The total loan book for the Bank is K1,203,030,255 as of November 25, 2022, the NPL stands at 87 percent while the IFRS 9 impairment is 35.8 per cent. Despite an improvement in the collections, the NPL still remains high, this is because the Bank is not lending out the money collected due to its regulatory capital challenges. It is advisable that the Bank continues with collections to help improve its regulatory standings,” read the correspondence.

“Site visits conducted by the Bank have revealed that several projects are non-operational. The promoters of these projects have been unable to raise funds to meet their loan obligations. However, the promoters have opted to raise funds from other sources to liquidate their outstanding obligations. Despite the efforts made in raising these funds, most of these projects are unable to raise enough cashflows to meet their outstanding debt obligations and have requested to have a portion of their loans written-off”.

Some of the projects whose loans were being written off as contained in the report included former Health Minister Dr Chitalu Chilufya’s Henry Court Yard Limited, which had an outstanding loan of K18.5 million, of which the bank would write off K11.5 million, leaving a payable amount of about K7 million.

“Henry Courtyard Limited obtained a facility in the sum of K5.8 million for the purpose of expansion of Henry Courtyard Hotel in Mansa, refinance a loan held at Cavmont Bank and finance operational working capital. In addition, the client later obtained an additional facility in the sum of K2 million for working capital purposes. However, only K6.9 million was disbursed. The project is currently non-performing despite being operational. The current outstanding loan amount is K18.5 million as of November 25, 2022. The Bank has recovered K10 million through payments which represents 145 per cent of the amount disbursed. In this vein, we recommend that the client pays K7 million as full and final settlement of the outstanding debt. This entails that K11.5 million will be written off and 247 per cent of the total amount disbursed will be recovered,” read the correspondence.

Another facility whose loan was being written off was the Nomads court Lodge which would have about K6.1 million debt cancelled.

“Nomads Court Lodge Limited obtained a facility of K9.4 million for the purpose of purchasing of Mwiza Lodge, expansion, working and refinancing a loan held with CEEC. The loan was fully disbursed. The project is operational while the loan is non-performing. The current outstanding loan amount is K11.6 million as of November 25, 2022. The bank has recovered K13.4 million through payments which represents 143 per cent on the amount disbursed. In this vein, we recommend that a total of K6.1 million be written-off and the client pays an additional K6.1 million. This will result in the recovery rate of 208 percent on the amount disbursed”.

Other projects involving politically exposed persons whose loans are being written off by the bank, according to records, include; Highvie Hamududu’s Highview Enterprise Limited, Nobutula Lodge limited, and Derrick Mpundu’s Stalwart Investments Limited. Others are Westone Driveways Limited, Patichi Patichi Investments Limited, Kalahari Drilling and Exploration Limited, Nshima Towers Limited, Videokom Enterprise Limited, Zambia Radiological and Imaging Company Limited, Muleka Investments Limited, Kingphar Company Zambia Limited, Mwachokumba Investments Limited and former Foreign Affairs Minister Joe Malanji’s Royal Gibson hotel limited.

Asked to explain why the bank executed the non-performing loan write-offs without approval from the Secretary to the Treasury, Nkhoma said, in an interview, Wednesday, that it was not true, saying the letter had actually been written to the Minister of Finance.

“It is not true, just understand in this context; before this board was appointed, there was an examination which was done by the Bank of Zambia. Now that Bank (DBZ) is regulated by the Bank of Zambia. So, every so often, they do what you call an examination of the bank. Now one thing that they came to discover or to establish was that the bank was charging interest on interest; if you borrow K100 the interest alone is K200. So the bank says, no there is a limit on what you call interest capping which is 100 per cent, you cannot charge someone interest more than what he has borrowed to double or 100 per cent more than what he has borrowed, the capping must be 100,” he explained.

“There were some loans which were delinquent, none performing. And Bank of Zambia after examination… some of them, there was not even sufficient security, yes, some of them were impacted by the pandemic and so many things. But what the bank of Zambia did, they come and classified the loans, [directed to] write off what they call excess interest of about six hundred and ninety something million. Now, in banking that is what they call a supervisory directive, you cannot challenge it because the condition of a license is that you are regulated, so if you are regulated the bank of Zambia has powers to give what you call supervisory directives. Now when we came on board, we hesitated to execute that, then they wrote another letter to me to say, we gave you this directive and you are still not implementing it, can you do it within 30 days failure to which we shall invoke supervisory action. Supervisory action can even be the removal of the board or suspending your license or withdrawing your license. We needed to meet as a board to review that directive and after that, it had to go through the committee and from the committee, which is investment committee of the board, it has now been escalated to the main board and a board decision to that effect has been passed. Now we cannot effect that without what you call treasury authority”.

Nkhoma explained that the right person to seek authority from was the Minister of Finance.

“Yesterday (Tuesday) they did communicate to me because I’m out of the country that the letter going to the Minister of Finance is ready and I gave a go ahead yesterday that before we do this, let it get the necessary approval. Because under the Development Bank of Zambia Act, it is only the minister who has got powers to write off an asset, so that is what has been done,” he said.

Asked whether the execution of writing off the selected loans had already been done before authority had been sought, Nkhoma said the process had been initiated, but not executed in full.

“In terms of passing the entries, in the P and L, the profit and loss, that has been done, the adjustment has been done, but it is the actual write-offs on the individual accounts which has not been done until treasury approval is secured and that can only be granted by the Minister of Finance, that is where we are. Those which were recoverable, we recovering, you can write off interest but if there is an underlining asset in terms of security, you pursue the security. But for those which are none recoverable, what can you do? Most of them they were getting monies which were with inflated securities; you find someone has got two chicken runs but has gotten five million, and the security is the chicken run, so what do you recover from the chicken runs, nothing. You write off, maybe, four million, five million, just like that,” he said.

Nkhoma explained that about 90 per cent of the loans that DBZ disbursed were to politically exposed persons.

“Yes a lot, almost 90 per cent. So what we have been now trying to do, we are rewriting our governance policies, to strengthen them and to ensure that those PEPs, due diligence must be done. I’m not saying that PEPs cannot borrow, but they should borrow having met the minimum due diligence and credit worthy criteria; sufficient security, sufficient guarantees and so on,” he said.

Meanwhile, according to other correspondence seen by News Diggers, Acting DBZ Managing Director, Maybin Muyawala wrote letters to some borrowers on August 26, 2022, responding to proposals for debt cancellation and loan settlement.

“Reference is made to the above captioned matter, your letter dated 16th May 2022, and the meeting held on 8th June 2022 in the Development Bank of Zambia Boardroom between yourselves, the Investment Committee of the board and the Bank management.

In the above-mention letter, you proposed payment in the sum of K4.3 million, as full and final settlement of your outstanding loan obligation. Please be advised that the Bank is agreeable to your offer. Kindly make payment on or before the 30th September 2022, failure to which, the bank will reserve the right to rescind the offer,” read one letter addressed to the Stalwart Investment Limited chairman.

Similar letters were written to other borrowers where the bank was agreeing to some proposals while rejecting some. These include; Star Energy Limited, Henry Courtyard Limited, Messrs Andrew And Partners, ALS Capital Limited, Impact Properties Builders Centre Limited, Nomad’s Court Lodge and Africa Transmission Ltd.

@News Diggers

President Hakainde Hichilema says government has negotiated a formal order of one million tonnes of mealie meal with the Democratic Republic of Congo.

The President said this follows the formalisation of the trade mechanism put in place between Zambia and the Democratic Republic of Congo.

Me Hichilema said the Congolese government has for the first installment paid in advance through the bank 14. 5 million dollars which was deposited on Thursday July 20th , 2023.

“We are not selling maize but selling mealie meal so that we can keep the commodity ourselves, get a better price and be able to minimise on smuggling,” President Hichilema said.

The President said this in Namwala today shortly after arriving at his Naminwe Farm where he is on a working holiday.

He, however, assured Zambians that government is committed to addressing the issue of smuggling which has continued to affect mealie meal prices.

The President also called on Zambians to support the growth of the agriculture sector through irrigation farming in view of existing crop export opportunities created.

” Let’s give more value to the farmers so that they increase maize production and will provide funds to support farmers to venture into irrigation farming. With farming inputs given early this year and a fair price will increase production,” he said.

President Hichilema also said the debt restructuring has opened investment opportunities in various sectors of the economy.

He said the signing of one billion US dollars solar thermal power project investment into the energy sector with the ACSG Westland Consortium of the United Arab Emirates will enable remote rural communities connected to power supply.

He said the thermal power will invest in a 510megawatts modular thermal solar power with Shangombo District in Western Province being the first targeted community to benefit from the first 10 megawatts solar thermal power initiative.

The other 500 megawatts will be spread to other remote areas in the country to enhance Internet services.

“It is coming in modular form. It means it can be put anywhere so that the people can have e- health, e-education services in rural areas and this will spur economic development,” the President said.

He said the recent signing of trade agreements with the United Arab Emirates on various economic issues which will also see small medium enterprises, mining benefiting from a loan facility amounting to 15 million dollars.

“We add more business opportunities for young people and women. This is another envelope we are opening to give value to the people through investment.

He said the agreement will ensure that the government has 50/ 50 investment opportunities so that the people can do business fairly.

He urged Zambians to work hard and avoid laziness as it is not tolerable even by God stating that people should take advantage of the opportunities that government is creating to improve lives.

Southern Province Minister Cornelius Mweetwa said the President is in Namwala at his Naminwe farm for a working holiday and also to enable him to reflect on national economic recovery.

Mr Mweetwa said the President needs to work out quietly especially after a hectic schedule of travelling locally and internationally negotiating debt restructuring.

UPND provincial chairperson Billiard Makwembo said the party is happy with the process that government has made since being elected into office.

He said there is light at the end of the tunnel for the country as the President has done more than what the people expected him to do in a short period of time.

“We are not complaining because they are happy with the process that government has made in a short period of time. This is what the people wanted,” Mr Makwembo said.

ESTABLISH A BANK FOR TEACHERS BY TEACHERS – NAQEZ

The National Action for Quality Education in Zambia, NAQEZ has proposed for establishment of a bank for teachers by teachsers themselves.

In a statement, NAQEZ Executive Director Aaron Chansa said this must be done to avoid the “current punishing bank interest rates on loans”

Mr Chansa said as it stands, three quarters of teachers in Zambia are highly indebted chiefly because of contracting very expensive loans meant for furthering their teaching qualifications.

“Since commercial banks and other financial institutions are still still offering poverty- inducing loans, there is urgent need for the teachers in Zambia to take advantage of their big number to quickly and collectively establish a bank that would offer them loans at 5% or less. This monumental teat will, without doubt, help most of our struggling teachers to cheaply offset the current loans they are painfully servicing.” He said

Mr Chansa added that if Government allows this formation and each of the 135,000 public service teachers contributes a K450 through the payroll, more than K60 million would be raised and Zambia would become the second country in Africa to set up a financial institution for cheaper loans for teachers.

“Because loan recoveries will be done through the Government payroll and that professionals will be employed to run the bank, success and sustainability are guaranteed.” He said.

“In Kenya, the Mwalimu National Sacco has powerfully helped thousands of teachers to avoid expensive borrowing. In Australia, the Teachers Mutual Bank is a major economic tool teachers have been using for personal prosperity.” He added.

And Mr Chansa said that once formed in Zambia ,the Bank would be owned and overseen by teachers.
“It will be governed and overseen by their own board. The teachers in respective provinces will elect one from among themselves to sit on the board. These board members will hire a competent management team to ethically and credibly run the bank. Profits made by this bank will be reinvested into the business for an increased number of cheaper loans for teachers.” He said.

“NAQEZ hopes that Government, all teachers and other stakeholders will embrace this proposal. Once in place ,the bank will empower and motivate teachers for improved quality of education in the country.” He added.

By: Alexander Vomo

The recent decision by the New Dawn government to settle court cases with Vedanta and allow them to resume operations at the Konkola Copper Mines (KCM) has sparked significant debate and public scrutiny. Vedanta’s past operations at KCM have been marred by allegations of poor conditions of service for local employees and non-payment of contractors, raising concerns about their return. Furthermore, there are accusations that Vedanta funded the UPND party during the 2021 elections, leading some to question the motives behind the government’s decision.

The Decision and Its Implications
The government’s choice to allow Vedanta back into the mining sector was likely influenced by several factors. Firstly, Vedanta’s expertise and experience in the mining industry could be seen as beneficial for the stability and continuity of KCM’s operations. Secondly, the decision may have been expedited to avoid prolonged legal disputes, which could have further destabilized the mining sector.

However, the public’s concerns about Vedanta’s past conduct cannot be ignored. Reports of poor labor conditions and non-payment to contractors raise ethical questions about the company’s operations. The alleged funding of a political party during the elections also raises concerns about conflicts of interest and transparency in decision-making.

Ensuring Responsible Mining Practices
To address the concerns surrounding Vedanta’s return, it is essential for the government to establish strict contractual agreements. These agreements should include specific conditions that prioritize responsible mining practices, environmental sustainability, and fair treatment of local employees and communities.

Additionally, robust monitoring mechanisms must be implemented to ensure Vedanta’s compliance with the agreed-upon conditions and local regulations. Regular audits and inspections can help verify their adherence to ethical and environmental standards.

Transparency is paramount in the mining sector. The government must ensure that relevant information is accessible to the public, allowing for independent verification of the company’s activities and promoting accountability.

Economic Development and Social Welfare
Vedanta’s return to KCM has the potential to contribute to the country’s economic development. It can create employment opportunities and generate revenue for the government, fostering economic growth in the region.

However, the government should prioritize the welfare and rights of local employees and communities affected by mining activities. Engaging with local communities and investing in infrastructure, education, and healthcare can lead to positive socio-economic impacts and improve relations between the company and its stakeholders.

Proposals for Improvement
While some opposition parties, such as Dr. Fred M’membe from the Socialist Party and Emmanuel Mwamba from the Patriotic Front party, have criticized the decision, their role should not be limited to criticism alone. They can play a significant role in shaping policies by presenting well-researched and detailed proposals for the government’s consideration.

Advocating for greater transparency, accountability, and local participation in decision-making processes is essential. By engaging in constructive dialogue with the government and other stakeholders, they can work towards finding solutions that address the concerns in the mining sector effectively.

Public’s Role in Accountability
The public plays a crucial role in ensuring accountability in the mining sector. Informed and vigilant citizens can demand transparency and responsible practices from both Vedanta and the government.

Engaging in discussions and staying informed about the developments in the mining sector empowers the public to hold all stakeholders accountable for their actions and decisions.

In conclusion, the decision to allow Vedanta to return to KCM presents both challenges and opportunities for Zambia’s mining sector. To ensure responsible practices and economic development, the government must establish stringent contractual agreements, monitor compliance, and prioritize the welfare of local communities.

Opposition parties have a role to play in presenting alternative solutions and advocating for transparency and accountability. The public’s engagement and vigilance are instrumental in holding all stakeholders accountable for the country’s mining activities. By striking a balance between Vedanta’s return and responsible practices, Zambia can pave the way for a sustainable and prosperous mining sector.

REMOVAL OF VENDORS FROM THE STREETS WILL HAVE CONSEQUENCES – HOWARD KUNDA

….as Jones Kalyati pledges that street vendors in Ndola won’t be hurt as the city tries to regulate vending

Ndola, Sunday, July 23, 2023 ( Smart Eagles )

Opposition Zambia Wake-Up Party (ZAWAPA) interim President Howard Kunda has warned that the removal of vendors from the streets will have consequences on the UPND’s performance in the 2026 General Elections.

Mr. Kunda said he was not happy with the manner in which the Government has handled the issue of street vending in Lusaka.

He said the New Dawn Government must handle street vending with caution and care.

Mr. Kunda said people have resorted to selling in streets to earn a living because the local economy is biting as evidenced by the high cost of essential commodities such as mealie meal.

He said the best way of removing vendors from the streets of the central business district is by improving the national economy so that people can afford the cost of living.

Featuring on a Radio Icengelo’s Open Talk Show on Friday, Mr. Kunda said laws like the one governing vending should not stifle the people.

“This issue of street vendors needs to be handled with care. 2026 is coming. In 2026 the people of Zambia won’t forget the ruthless removal of vendors. These are hard times in which people are suffering. You cannot just wake up and burn people’s stands. The Ministry of Local Government is starting this issue from the end and instead of the beginning,” Mr. Kunda said.

“As far as I know, if this Government won’t sort out the economy of this country, vendors won’t go anywhere. Where will the vendors even go? We need the council and the government to be proactive on this matter,” he said.

On the same programme, Ndola Mayor Jones Kalyati said there is a need to control street vending.

Dr. Kalyati pledged that street vendors in Ndola won’t be hurt as the city tries to regulate vending.

“We will be engaging vendors on how best we can find solutions to vending. I am open to discussions. The solution to controlling vending lies with the vendors themselves. I don’t want anyone to be injured as we handle this issue,” Dr. Kalyati said.

DECENTRALIZATION POLICY, GAME CHANGER- PRINCESS KASUNE

July 22, 2023.

CHIBOMBO- Keembe Member of Parliament Princess Kasune says she is happy with the massive achievements delivered in the constituency within a short space of time.

Speaking when she graced the handover of a mothers’ shelter at Chibombo Rural Health centre built at a cost of K690,000, Princess Kasune who is also the Government Deputy Chief Whip said she was thrilled to note that CDF has been equitably shared among all wards.

The area lawmaker said Keembe Constituency like any other Constituency in the country has developed exponentially due to the decentralization policy that has brought resources closer to the people.

She commended President Hakainde Hichilema for implementing policies that are of mutual benefit to local communities such as the construction of a 1×3 classroom block and procurement of 70 desks at Mwayasunka day Secondary School as well as 2800 desks for distribution across the constituency.

And Chibombo District Medical Officer Dr Yona Hendrix commended government for responding to the needs of expectant mothers as part of the fight against maternal deaths.

Dr Yona said the facility will help his team diligently monitor and treat expectant mothers without any difficult as the facility will cater for more than 18,000 people in the district.

Meanwhile, UPND Deputy Secretary General Gertrude Imenda says the constituency development fund has transformed the C
country into a construction site.

Ms Imenda said the Decentralization policy approach implemented by the UPND-led government has positively impacted communities that lagged behind in terms of development.

And Chief Liteta has commended the government for taking development closer to the people.

He further called on Zambians to support the people centered Ideologies of the New Dawn administration.

Ms Kasune has for a long time been associated with infrastructure development at Chibombo Rural Health centre having helped in the construction of a maternity Annex which was opened in May 2016 worth K 600, 000 personal funds.

(C) THE FALCON

IT’S SILVER JULILEE FOR UPND, BUT

By Aswell K. Mwalimu

THIS December 2023, the United Party for National Development (UPND) will celebrate the Silver Jubilee after a long walk on a very rough political road.

Founded on 28th December 1998, the ruling party will celebrate the 25 years milestone alongside the 2nd Anniversary of being in power following the electoral victory of 12th August 2021.

Since forming Government, the UPND is firmly walking on two steong feet leading the people of Zambians on a right, progressive and promising trajectory.

The economic turnaround we seek as a people will not come by chance, but by making right decisions at the right time!

But, what barometers can Zambians use to measure the policies on which the UPND’s developmental agenda is currently standing on?

The policy intent such as free education, National Pensions Scheme Authority (NAPSA) 20% partial withdraw, the fight against corruption, restoration of peace, law and order are excellent, but not enough.

And the increased Constituency Development Fund (CDF) including the increased amounts and number of beneficiaries under Social Cash Transfer (SCT) adds to the list of the wonderful New Dawn policy intent.

Further, the establishment of Ministry of Green Economy and Environment as well as Ministry of Small Scale and Medium Enterprise and Development adds to the list.

Unfortunately, re-alignment of some Government departments to other ministries has only addressed the issue of policy direction half way.

For instance, Arts in Zambia still remain ‘orphaned.’

And calls for the re-opening of Mulungushi Textile are made without interrogating the fashion and textile industry as well as cotton and cassava growing in the country.

Interestingly, during Parliament session a UPND Member of Parliament was asking for Policy direction on Human and Wildlife Conflicts, did you know that?

We are all aware that policies in any socio economic setting are supposed to be reviewed every 5 years, and expire after 10 years.

What, then; are the implementation dates of the policies that drive all Ministries, ZESCO, TAZARA, ZNBC, ZAMTEL, ZR, TAZAMA, ERB, FRA, IBA etc, and other quasi-government agency including various Commissions.

When were the same policies revised? Has the UPND made an input to these policies yet as per manifesto?

In the absence of the UPND input to policy-direction, I can foresee a huge challenge in how the New Dawn Government shall handle issues such as the fight against corruption, border security and human trafficking, street vending and Council by-laws, children living on the street and children’s rights, professionalism in the Zambia Police etc.

One cannot rule out the fact that some of the ‘inefficiencies’ we are witnessing in the New Dawn Government are as a result of ‘stale-policies’ to which the UPND has had no input yet!

But when will UPND policies be a reality?

Aren’t these new appointed Board Members and Commissioners treating existing policies like ‘old wine in new bottles?’ How old are the policies they are working with and how much of the UPND manifesto do those policies contain?

How will UPND policies address charcoal burning in the Game Management Area or littering of plastic bottles in the Kafue National park?

I know I may be misunderstood by those who elevate views of ‘members of the technically elite’ (Technocrats) over real life, But, all policies urgently require input from the UPND manifesto!

Look at FISP, Mukula (Timber) or Cooperatives in mining; the story is different when one considers policies at play.

As you are aware, Policy Intent is set by top Government Officials or Ministers when commissioning the work and can change over time for varied reasons such as changes in public or parliamentary opinion or change in party leadership or evidence on the ground.

Nonetheless, Zambia needs solid UPND policies, period!

Checkmatezambia247@gmail.com

HON MUNDUBILE CONFIRMS ‘NICKSON CHILANGWA SITTING PROTEST’.

……says the Civility of the PF MPs must not be mistaken to be a weakness.

Lusaka……..Saturday, July 22nd 2023 [SMART EAGLES].

The silent protest which has been exhibited by the Patriotic Front Members in Parliament in the last two days is called the ‘Hon Nickson Chilangwa Sitting Protest’.

Leader of Opposition Hon Brian Mundubile has confirmed this at a media Briefing in Lusaka today.

Hon Mundubile said the Protest has been necessitated by the manner the house was been handled.

Hon Mundubile said second deputy Speaker Moses Moyo has been unfair to the opposition Members of parliament

He said despite several attempts to engage the Presiding officers, nothing has changed.

The Leader of Opposition said if the trend continues, the opposition MPs will bring order to the house.

In the last two days, Opposition MPs have not been posing questions on the floor of the house.

And Hon Mundubile said what was agreed was to allow only UPND MPs to participate in Parliament to see if they would be allowed to do so freely without being stopped by the Presiding officers, a situation which transpired.

“Sitting as leader of Opposition and the whips, we have had a lot of pressure from the Members on the treatment that we have been receiving. MPs are responsible citizens, representatives of the people. To come to parliament to be reduced to a school boy because Comrade Moses Moyo feels like saying anything is simply unacceptable. We have to remind you that we are senior MPs, we were hoping by now you could have learnt…. During the last Parliament, Speaker Matibini respected the channels of handling members in the house,. Calling out names for Members of Parliament is a new practice that we have seen now,” he said.

Meanwhile, Hon Mundubile has noted that it is only in Zambia where presiding officers speak more than the Members of Parliament.

He said the Civility of Opposition MPs must not be mistaken as a weakness.

“If we were not civilised, we can cause chaos everyday. Our silence and respect should not be taken for granted. The rules for debating in the house, must ensure that the information is true and factual. In this house, the Presiding officers are the ones going against the standing orders. When will capacity ever be built at parliament. Even when the house has fallen into contempt, we have fallen out.

I refuse to be part of a class of Cowards. Why should he send shivers in everybody. They do not want PF members who have the expertise in particular fields to speak in that regard. Abantu benu balamitina, ama judgement nomba they leave much to be desired. Ifyakuisangula Muli bu lesa bunono fikamiletelela,” he said.

THE REMOVAL OF STREET VENDORS WAS NOT ABOUT SANITATION, BUT ABOUT REVENUE COLLECTION – PF

Friday, 21 July 2023

As we emphasise with our brothers and sisters whose livelihoods have been thrown in the cold by the new dawn government, we want to reveal the real reason for which this decision was made without proper planning and solutions.

President Hakainde and his new dawn administration are growing increasingly desperate to collect revenue to impress the IMF. Due to PRESSURE from the IMF on the failing economy, the UPND in their consultations with IMF agreed to arbitrary remove street vendors in order to collect revenues through levies and penalties from markets. It is their considered view that government has been losing revenue with the continued existence of street vendors in the Lusaka CBD.

Hence the overnight decision to move in on the defenceless vulnerable street vendors. Like we have stated to the Zambian people, that HH and his UPND dont care about the plight of the poor Zambians. While they have given collosal tax holidays and subsidies for their friends in the mines and big business empires, the UPND has pounced on the street vendors by squeezing them in the markets so as to collect revenue from them.

As PF we see this as a clear indictment on the UPND of a dekiverate policy of heavily TAXING THE POOR of the poorest while giving a free lunch of tax incentives, TAX HOLIDAYS and subsidies to the RICH and powerful whom they have negotiated with to keep their dollars abit longer in the country in order to create an artificial low dollar to kwacha rate.

The main aim of this move, is to squeeze people into the markets where government can collect money from stands and market levies and penalties to improve their revenue base to impress the IMF.. The truth of the matter is that the UPND have failed to resolve the economic situation on which they were voted for, and with no money in circulation their narrow and shallow solution was to ambush street vendors.

We find the arguments about health, cleanliness and sanitation as a very narrow and simplistic reason in advancing the removal of street vendors. The question of sanitation can not arise if we had a functional and effective local authority that collects gabbage and cleans the CBD. If the councils were doing their job, this issue of waste management would have been properly resolved and policed. However, the new dawn govt has chosen to use street vending as a scape goat for their failed systems in the councils.

We want to remind the Zambian people that recently the very council overnight ambushed mobile booth operators under the same guise of cleanliness, they destroyed the booths the very way they have destroyed peoples makeshift stands. What happened thereafter, we are told is the booths are going missing at the storage site which is a scandal in itself. Similarly they have destroyed makeshift stands, which form part of the capital for vendors without any means of recompense. Yet they still expect the very people to go and pay the council for the stands in the markets. One would wonder this kind of thinking?

Lastly we want to tell the Zambian people that, President Hakainde Hichilema and his elitist policies has betrayed the Voters and he will do it again, NOT because the UPND enjoys it, but it is because that’s their nature.

We know so because President Hichilema and UPND betrayed all of those traders who gave them a winning vote during the elections. They are now siding with the IMF, succumbing to their pressure. The Zambian people believed UPND when they promised them that Mealie Meal prices will be reduced to K50, they believed them when they promised they would protect the Vendors. Their praise singers defended them when everyone knew that they were just mocking the Zambian people, today Mr Hakainde Hichilema has repaid the vendors and generally the Zambian people with a stab worthy of a calculated betrayer.

The next cities to be ambushed are on the COPPERBELT, KITWE being the first. Instead of resolving the mining sector’s self inflicted problems, which are more important to the people of the Copperbelt who gave them a vote. President HH and the UPND, are at it again like the vile cheap mercenaries they are, have sold the Zambian people to the lowest bidder – their friends and sponsors. The UPND is a mercenary organisation full of unpatriotic citizens whose time of reckoning will soon come.

By;
Hon. Raphael NAKACINDA, MCC.
CHAIRPERSON FOR INFORMATION AND PUBLICITY

HON CHITOTELA, CHILANGWA CASE ADJOURNED TO SEPTEMBER

…. as the Kawambwa Central lawmaker remains in custody

Kawambwa… Friday July 21, 2023 (SMART EAGLES)

The Kawambwa Subordinate Court has adjourned it’s proceedings in the case involving Pambashe Member of Parliament Hon. Ronald Chitotela, MP and his Kawambwa Central counterpart Hon Nickson Chilangwa and five others to September 18th, 2023 for continuation of defense.

The court has also set 3rd August, 2023, 17th August, 2023, 31st August 2023 and 15th September, 2023 as dates for mentions for other accused persons excluding Pambashe Member of Parliament Hon Chitotela and Kunda Chitotela who are not residents of Kawambwa.

And Hon Chilangwa has remained in custody at Kawambwa Correctional Facility.

Luanshya Magistrate Martin Namushi, sitting in the Kawambwa Subordinate Court has since adjourned the matter to September 18th, 2023 for continuation of defense after the defense through Counsel Benjamin Mwelwa made an application for adjournment.

When the matter came up for continuation of defense today, State Advocate Mwala Museta informed the court that the court will resume sitting from 18th September, 2023 to 27th September, 2023 for continuation of defense.

“We have agreed on the dates by all parties totalling eight days and all parties will be available. We have agreed to sit from 18th September 2023 to 27th September, 2023,” he said.

He added that for purposes of the other accused persons Hon Chilangwa, Kawambwa Council Chairperson Kalumba Chifumbe, Davy Kaniki, Charity Musanto and Chabu Chitotela they will appear for mentions on the dates provided excluding Hon Chitotela and Kunda Chitotela who are not residents of Kawambwa.

Earlier in the morning, the court moved to sites of interests in Pambashe Constituency starting with Kanengo Secondary school before proceeding to Chibote secondary school which is about 22 kilometers from the main road.

In the afternoon, the court resumed it’s sitting with the first accused person Hon Chitotela continuing his defense as led by Counsel Mwelwa.

In his continuation of defense, the former Minister of Tourism and Arts informed the court that he had evidence in form of auto phone call recording conversations as well as a video which was recorded by his co-accused Kunda Chitotela at Kawambwa District Hospital on 6th January, 2023.

The two audio recordings were then played before the court involving a Mr. Steven Chikota who Hon Chitotela said is the UPND Deputy National Youth Chairperson in charge of administration saying that is how he introduced himself when he called him on phone.

“Your Honor, as I stated that on 16th September 2021, I did receive a telephone call from a person who identified himself as a UPND National Youth Chairperson Steven Chikota who said that he was in charge of administration. There are two conversation one was on 16th September 2021 and the second on18th October, 2021. Your honour the phone used to auto record was a Samsung Note 9 which is my phone. Your honour, and because for the safety of custody I did transfer that recording to my laptop. Before that, my phone is secured it has my password or my eyes are open for it to open. The laptop is sucured with my personal password and it has a very strong anti-virus which is still valid,” he narrated before the fully packed courtroom.

“I have transfered this into a flash disk which is a silver in color, it has a round key holder used to hold the stick. The flash disk has three items the third is a video am yet to talk about it your honour. I want to render this flash disk as part of my evidence.”

He said in the phone call conversation, Mr. Chikota indicated that the police can identify the people involved in the arson case as the police were there at the crime scene but that they may just be jailed hence the need for him in the company of Hon Chilangwa who are elected leaders to meet him and see how the burnt Mahindra vehicle can be replaced.

Meanwhile, the video of a Mr. John Lukwesa, a state witness could not be played before the court.

Earlier, Hon Chitotela narrated before the court how his lawyers contacted him that the police were looking for him.

He said in the company of his lawyers, he went to Police headquarters in Lusaka where the police recorded a first warn and caution statement from him.

“Your honour as I stated, on 26th October 2021, I appeared before Zambia Police headquarters (in Lusaka) in the company of my lawyers. A warn and caution statement was administered in relation to the case of arson by Detective Chief Inspector Makukwanu. He (Mr. Makukwanu) did ask me if I had guns with me in form of pistols I confirmed your honor that yes I have two pistols. He requested me that the following day I should take them to headquarters (police headquarters). That is the day I was to appear with my brother Hon Chilangwa. As I stated earlier your honor, the warn and caution statement was recorded in relation to arson involving a Mahindra Bolero vehicle. And Dective Chief Inspector did issue a certificate of ceizure of goods,” he said.

“I was given a carbon copy it has a Zambia logo, it has my names your honor the names (Ronald Kaoma Chitotela) and types of the pistols, my signature and the signature of the ceizing officer Mr Makukwanu. The original copy was left with the dealing officer together with ceized goods. I want to render this document as part of my evidence your honor. After my guns were ceized, I was asked to wait outside because the officer was now dealing with Hon Chilangwa. After sometime of waiting outside the police headquarters your honour, I was called back in the same interview room and the police indicated that we will proceed to Luapula. We shall communicate to you through your lawyers but for now you can go.”

He further narrated before the court that on 13th December, 2021, he received a phone call from the Deputy Director of Investigations at Zambia Police Service who he identified as a Mr Timba that his guns were certified that they have never being fired before in Zambia.

He then proceeded to produce a dublicate document of handover before the court administered by Mr. Timba which he also laid before the court that he intended to use it as part of his evidence.

In this matter, it is alleged that on August 12, 2021, the two lawmakers and five others while acting together assaulted four UPND members, damaged the windscreen of the Mahindra Bolero motor vehicle valued at K400, 000 a property of the UPND before allegedly setting it ablaze and further threatened violence.

The accused persons are being represented by Counsels Benjamin Mwelwa, Jonas Zimba, Boniface Chiwala and Kampamba Kombe.

State Advocates include Mwala Museta and Wilson Mwale.

MILINGO SHOWED THAT ZAMBIANS HAVE THE CAPACITY TO RUN THE MINES-HON KAFWAYA.

………..says KCM managed to run smoothly when Milingo Lungu was the liquidator.

Lusaka……July 21st 2023 (SMART EAGLES)

Patriotic Front Presidential Candidate Mutotwe Kafwaya says Zambians have the capacity to run the Mines in the country.

Hon Kafwaya said this was demonstrated by Former Konkola Copper Mines Provisional Liquidator Milingo Lungu who ensured that the workers and the suppliers were paid on time and enhance the cash flow for KCM.

He said a lot of Zambians have been trained in the technical expertise required to effectively run a mine.

He was speaking when he featured on Millennium TV’s Night live programme.

Hon Kafwaya said it is therefore unfortunate of the intention by Government to give KCM back to Vedanta.

Last week, Government said it was only remaining with one item in their discussion on the issues with Vedanta.

And Hon Kafwaya said he remains sceptical on the statement by Government because it is hard to believe what they say.

“Today we take back the mine to this investor. Government has resolved issues, I am sceptical about any information that comes from the upnd Government. This is the UPND government that was telling the PF to get rid of Vedanta while in opposition. Vedanta boasted how it managed to get KCM on the cheap. PF came into power, the pledges it made of investments were not fulfilled. From that end, you can say that it was reasonable for government to repossess the mine. All stakeholders were happy that government had to repossess the mine,” he said.

Hon Kafwaya said the country has a chance of putting Zambians back to work.

He stated that the idea of relying on foreigners all the time must be done away with.

“As a people let us start thinking about our country. These investors are thinking about their generations. There is need to restructure the mines and take Zambians back to work. The issue of hating people so much must be done away with,” he said.

MPs INVOLVEMENT IN IMPLEMENTATION OF CDF, VERY IMPORTANT- SUNDAY CHANDA.

…….says the council is only but an implementing agency.

Lusaka…….Friday, July 21st, 2023 [SMART EAGLES]

Kanchibiya Lawmaker Sunday Chanda has emphasised that Members of Parliament have a critical role to play in the implementation of the Constituency Development Fund-CDF.

Speaking when he featured on Radio Phoenix’s let the people talk, Hon Chanda said successful operation of any CDF project is contingent upon a strong MP’s involvement and leadership.

He said it is for that reason that he is very involved in the implementation of CDF in Kanchibiya Constituency.

Hon Chanda said CDF is constituency development Fund adding that if he fails to deliver, the blame will be on him.

He said the council is only but an implementing agency.

“Whether we are constructing a toilet ,road or bridge, I know what is happening….. there are places in Kanchibiya and they have never known what it feels like to have a clinic, they have a health centre now. The moment you leave the project to a technocrat you have a challenge. An MP has a role to play in facilitating popular participation in this process. If resources for CDF are to be used efficiently, the involvement of an MP is cardinal. The only process I do not interfere with is procurement. But the moment a contractor moves on site I get their contact. I need to know the progress,” he said.

Meanwhile, Hon Chanda said If someone came to Kanchibiya and said CDF is a scam, he would point at projects that have been done under the CDF

He said it is important to understand that CDF is a distributive tool for resources meant to bring development to the people.

“One thing that has helped us is to ensure that there is transparency. Programme identification, selection of projects, awarding contracts, moving politics away from the equation. If someone comes to me and say they want to be awarded because of being from a political party. I dismiss them. We still building capacity in our people. We have made a commitment to ensure that all the schools have desks by the end of August,” he said.

YOU ARE NOT LOCAL GOV’T MINSTER, IMENDA TOLD

…Brian Mundubile says CDF projects are not financed by the UPND as a private political party but by government to which Mr Imemnda does not belong.

BATUKE Imenda is not a government official to have embarked on the monitoring and inspecting of develop- mental projects under the Constituency Development Fund (CDF) and should therefore curtail his marathon tour across the country, Brian Mundubile has said.

Mr Mundubile, the Leader of the Opposition in Parliament says Mr Imenda should instead expend his partisan energies on mobilizing the ruling party, for that was his main mandate as the chief executive officer of the UPND.

Mr Mundubile said Minister of Local Government and Rural Development, Gary Nkombo was the one with the mandate and responsible for monitoring CDF projects and that the UPND officials should not have usurped his responsibilities.

He said Zambia had long dispensed with the philosophy of the party and its government and that government functions should never be performed by party functionaries such as Mr Imenda.

“My dear comrade Imenda may have been tipped privately that he is the next Minister of Local Government but I want to advise him that no matter how strong that rumour is, for as long as he has not been sworn in, for as long as he has not taken oath, let him take it easy and wait.”

“That is how people have lost positions in the past because of being excited. Somebody comes to you and they tip you and you begin to carry out the functions. Mr Imenda, we are pleading with you. I know that the rumour is strong. We have been hearing these rumours that you are about to be appointed, but you have not yet been sworn- in my brother. So just stay home until you are sworn- in,” Mr Mundubile said.

Mr Mundubile said Government was not using funds from the UPND as
a private political party to build infrastructure using CDF and Mr Imenda should not be the one to inspect government financed developmental projects.

Mr Mundubile advised the UPND not to politicise CDF because the money being used to empower members of the ruling party was public.

He was reacting to Transparency International Zambia’s call to Mr Imenda to desist from politicising the CDF programme through his nationwide tour of projects.

(Credit: Daily Nation Zambia)

MITA RECEIVED $4M FOR THE PURCHASE OF CHANCERY FOR GRZ IN TURKEY

….as former Zambia’s Acting Ambassador to Turkey testifies how a property management company was contracted on behalf of property owners

Lusaka, Friday, July 21, 2023 ( Smart Eagles)

A report before the Lusaka Magistrates Court has shown how a Turkish property management company, Mita, acknowledged receipt and disbursement of $6.877m downpayment for the purchase of property in Ankara on behalf of the Zambian Government.

According to the report, Mita’s quotation of $19.5m for 12 properties which included a Chancery was the cheapest of all the quotations obtained from several Real Estate Agencies.

Other bidders included Akkicik Gayrimenkul at $32.5m for 11 properties and Setur Gayrimenkul Yalirim at 28.1m for 11 properties.

In this matter, former Foreign Affairs Minister Joseph Malanji and former Secretary to the Treasury Fredson Yamba are charged with wilful failure to comply with procedure relating to procurement, and being in possession of property reasonably suspected to be proceeds of crime.

When the matter came up for continuation of trial, Thursday, former Zambian diplomat to Turkey Misheck Kaoma testified in cross examination that he was aware of the Contract by the Government of the Republic of Zambia for the purchase of 12 properties valued at a lampsum $19.5m.

Asked by Defense Counsel Makebi Zulu as to whether the Contract for the purchase of the 12 properties was approved by Government of the Republic of Zambia, Kaoma responded in the affirmative.

“Yes”, Government was willing to part away with $19.5m on the property stated Kaoma. “The amount was a Lampsum for all the 12 properties.”

Asked if the Contract distinguished every property, Kaoma replied that it did not.

Mr Kaoma, who was Zambia’s Acting Ambassador to Turkey after the death of Joseph Chilengi testified that the Contract was not with individual sellers of properties but with the Property Management Company, Mita, under whose portfolio the properties were.

“The Buyer is the Embassy represented by Joseph Chilengi. The seller was a company called Mita represented by Mr Burhan Asaf Safak. And Mita was a Property Management Company for the purpose of this Contract,” Mr Kaoma stated.

Meanwhile, Kaoma said out of the $19.5m lampsum value of the properties, only $7.1m was paid through Burhan Asaf Safak in favor of the property owners.

And asked if Mita was paid, Kaoma said “Yes”, according to the report Mita is acknowledging disbursement of payments of $4m for the Chancery, paid $1.8m service costs and $1.077m penalty fee.

“The money that was paid to the Seller was against 12 properties as down payment and the 12 properties were being paid by Mita. I do not know the owners of the other properties.”

In re-examination however, Kaoma clarified that $6.8m was the total downpayment paid to Burhan in two instalments of $4.8m and a second payment of $2m.

Trail continues on July 27.