THE ZCCM – IH SAGA IS A BIG ISSUE AND REFLECTIVE OF HOW CORPORATE GOVERNANCE HAS DETERIORATED UNDER CURRENT STATE OF AFFAIRS.
BY PF PRESIDENTIAL CANDIDATE Mutotwe Kafwaya
And in a country where leadership is serious about values and economic progress, this should be at the centre of conversations.
If I may, let me make a preliminary comment.
When we said there is something grossly wrong with the government intention to dispose off ordinary interest in FQM, some people argued against our position. We knew that there was bad interference from powers that be.
Then a few days ago, we woke up to a resignation of the former board chairperson of ZCCM – IH, citing INTERFERENCE from State House. This should spell sadness in everyone’s mind. Especially in those peoples minds who are concerned about creating an enabled economic and social environment.
The ZCCM – IH is listed not only primarily under ISIN Number ZM0000000037 on the Lusaka Securities Exchange, but also secondarily on the London Stock Exchange and the Euronext Access Exchange in Paris. This may imply that the mismanagement of the entity in Zambia would affect how the entity is viewed not only locally but internationally too, and how markets globally would react to our poor internal actions.
Now the entity has been suspended on the London Stock Exchange. This is sadly the first time in our history. This suspension is terrible for the image of our governance.
Do we now see what bad interference in corporate affairs is capable of producing?
- Because of bad interference from State House, ZCCM – IH proposed to dispose of ordinary shares held in FQM against national interest and against Constitutional provisions.
- Because of bad interference from State House, an ethical board chairperson for ZCCM – IH resigned from her position paving way for the creation of bad perception and God forbid reality.
- Because of bad interference from State House, ZCCM – IH has been suspended from the London Stock Exchange.
- Because of bad interference from State House, the country’s perception in so far as corporate governance is concerned is now low; from both the domestic and global perspectives.
My question – is there any area where State House is not exerting bad interference?
If you just breath in and consider what is currently obtaining at:
(1) Auditor General
(2) ACC
(3) Ministry of Finance and National Planning
(4) Ministry of Agriculture
(5) Ministry of Health
(6) Ministry of Mines and Minerals Development
(7) Ministry Tourism
(😎 Cabinet Office
(9) DEC
You may agree with me that change is urgently needed in the manner these entities are being managed.
For me, these are my priority areas of concern as far as things stand in the now. I know you may have your own areas too.
Implications
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With State House badly influencing everything. The economy can never perform well. Numbers can be falsified, but the pressure of reality will always outweigh imaginary reported progress. In the very end people are bound to completely lose confidence in government.
Recommendation
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State House should consider stopping bad interference in institutions.
State House should consider reinstating ethical people who have been frustrated out of their roles due to their bad interference.
Restoring EVERYTHING PATRIOTIC.
MK08.05.2023