By Amb Emmanuel Mwamba
Zambians watch your national assets all sorts of excuses will be used for their disposal including reported losses.
President Hakainde Hichilema as IDC Chairperson, instead of protecting the assets and placing them on good strategic business performance will instead promote their privatization(LCM and Mopani Copper Mine) or liquidation as seen in the sad cases of DBZ and INVESTRUST Banks.
Thirteen Industrial Development Corperation (IDC) subsidiaries incurred losses amounting to over K1.8 billion in 2022.
The same companies also incurred losses amounting to over K746 million in 2021.
This is as revealed by the Report of the Auditor-General on the Accounts of Parastatal Bodies and other Statutory Institutions for the financial year ended December, 31, 2022.
The report highlighted that out of the 30 State-Owned Enterprises in which IDC holds 62.28 percent to 100 percent shareholding, only five declared dividends amounting to K61, 334, 600 and K62, 012, 587 in 2021 and 2022.
“During the period under review, it was observed that 13 subsidiary companies incurred losses amounting to K746, 984, 000 and K1, 854, 902, 817 in 2021 and 2022 respectively,” the report showed.
It also revealed that as at September 30, 2023, the IDC had not produced audited consolidated financial statements for the years December, 31, 2018 to 2022 and no sanctions were meted out on institutions that delayed in preparing their financial statements.
In addition, the report noted that eight State-Owned Enterprises had not produced audited financial statements for the financial years December, 31, 2020, 2021 and 2022 as at September, 30, 2023.
This is “Contrary to the provision of section 72 (2) (e) of the Public Procurement Act of 2020, IDC did not obtain clearance from the Attorney-General for three contracts,” it stated.
Read More: Auditor General calls for greater transparency, accountability at stakeholders’ meeting
The IDC did not provide clearance for the contracts for construction of fruit processing plant in Mwinilunga and Katete Districts at a contract sum of K62, 006, 153 which were revised by K85, 340, 834, to K147, 346, 987.
Under the report, it was noted that IDC did not also get clearance for the contract for the construction of the Tomato Processing Plant and associated works at Fig Tree in Chisamba District of Central Province at a fixed contract sum of US$4, 644, 508.66.
It was also noted that clearance for the contract was not obtained for the rehabilitation of Mukuba Hotel in Ndola District in the Copperbelt Province at a contract price of K18, 250, 654.82.
“During the period under review, the IDC had leases out for properties located in Lusaka, Ndola and Mongu however, a review of rent statements of accounts revealed that rentals in amounts totalling K5,001,895 for the period from January 2021 to December 2022 had not been collected as at September, 30,2023,” the report highlighted.
1.The IDC portfolio is two fold. It includes entities where IDC is the
majority shareholder; the State-Owned Enterprises (SOEs)
minority shareholder the; Investee Companies
1. ENERGY & INFRASTRUCTURE
● INDENI
● ZESCO
●Bangweulu Power Company
●Ngonye Power Company
●Lusaka South MFEZ
●INFRATEL
2. BANKING & FINANCIAL SERVICES
●Indo-Zambia Bank
●Zambia Industrial Commercial Bank
Zambia Reinsurance
● ZANACO Bank PLC
●ZSIC General Insurance
●ZSIC Life
3. TRANSPORTATION AND COMMUNICATION
● Mpulungu Harbour Corporation Limited
● Zambia Railways Limited
●Zambia Airways
●Zambia Cargo & Logistics
●Times Printpak
●Zambia Daily Mail
●ZAMTEL
3. HEALTH, TOURISM & REAL ESTATE
● Mulungushi International Conference Centre
● Lusaka Trust Hospital
● Mukuba Hotel
●Mulungushi Village Complex
Mr. Mwamba stop being an alarmist. We read recently that a number of Parastatals have been making losses since. Why? Is the question you suggest. Not stop selling them. Even the bible says if your arm causes you to sin. Cut it off.
Money runs these companies. ZCCM was sold because it cost government and the people of Zambia 1million dollars a day to run. Shi noonoo can attest to that.
Where was that money coming from? The government could not sustain this from tax collections with the “thin tax collection”. Be honest, with your self ba Mwamba.
So you borrow. To finance losses? You in Zambia dont dictate the price of copper? You dont consume it.
Yes, we love Zambia. Yes, we love that we have copper. But you dont have the capital capacity to run a mine. Lets be blunt and honest. Mining is big business.
This state is vague and we dont undetstand what that has to do with the heading.
This is “Contrary to the provision of section 72 (2) (e) of the Public Procurement Act of 2020, IDC did not obtain clearance from the Attorney-General for three contracts,” it stated
Who was Chairman of IDC then? Who revived Mwinilunga Pineapple Company? Was it not PF? In their decision to do so, was it a political and unsustainable decision or an economic one?
Now the cost show it was a Political and UNSUSTAINABLE decision who is left to sort out the mess?
Mopani, Mr. Mwamba be sincere and tell us the truth as to how government at THE TIME took over a company and agreeed to take over the debt and pay them move than the value of the company? Which Government was that? Was it not PF? Today you want to distance yourself from those facts to appear noble.
Mr. Mwamba you are in the habit of twisting the facts so that you can appear a saint yet, you are just a wolf dressed in sheep’s cloth bwana.
Instead of Government spending on services that it should spend on. It is spending to sustain companies that are NOT VIABLE because of the inherent ability of state natured instutions. If MarcoPolo Tiles was so viable. Why did the orginal owners sell to government?
Ask yourself that very basic question. Why did government invest in a viable entity? Government is not in the business to investment. Its in the business of running a country.
Privatisation in the early 1990s was to shed the burden from government the debt that these companies were accuring.
If Zambians have the money and can run them better. Let them buy them. Just like this Zambia Airways arrangement that PF went into with Ethiopian Airline doesnot benefit Zambians. The business concepts of these loss making companies isnt working. Neither can government continue to sustain them. They are a drain. Lets innovate in other sustainable areas and move on. Investrust and DBZ have gone under because of Political abuse.
Not becuase they are not viable. The likes of Mmembe used their position and muck they could get on influencial people to get loans they did not deserve. A house of cards effect.
No national asset is safe under Hakainde.
He has form.
To be honest, we all knew he would sell our assets from day one. It is just that PF were so bad we just wanted to get rid of them. Unfortunately, we got something a lot worse in Hakainde the conman and liar.
Vote wisely in 2026.
HH just saved National assets from being stolen by ELC , LUSAMBO, LUBINDA and those gluttons including you Lumpen Mwamba. Take a leaf from Dora Skirts.
What Ba Mwamba has written about is what we have been hearing for a long time from those working in the mining sector. It took long for UPND to find partners because they were hoping with the reduction in production and exports, KCM and Mopani’s value were going to go down so they could sell them to their friends and themselves for a song.
It’s the Same strategy the Privatization criminals employed in the 90s. Exaggerate the losses of the companies , under estimate the values of the assets , then buy them off using proxies. Remember Mosi o tunya Sun Hotel??! And the three Musketeers??
One musketeer was recently given a $40millon Environmental Consultancy Contract for the Mines…and Slag Dumps in Mufulira Mopani. Given $40 Million Cool Cash to manage on behalf of the Ministry of Mines( Kabuswe) without any government oversight.
So ZCCM – IH shares in Investrust Bank will be given away the Mopani way to some crook most likely from Dubai, offcourse a proxy …it’s going, going …it’s gone.
And many more Assets will follow suit, as the Tribal zealots and Praise Thugs cheer..and Zambia Sleeps!
Which Mosi-o Tunya hotel is that, thought it was intercontinental hotel?
@ kubeja badala
Am sure you know what iam talking about…am talking about Hakainde Hichilema, the Liquidator of Zambian State Companies , Valentine Chitalu the CEO of Zambia Privatization Agency, and Muna Hantuba.
And the havoc these people have caused on Zambia’s Industry..taking Zambia to the stone age!
When misconception is your preoccupation this is the result.
If HH or any person undervalued assets, the law was there to prosecute them. Do you think these men would have risked their careers to steal? Those that stole have been prosecuted. Access Finance and its directors, Samuel Musonda of ZANACO, Katele Kalumba, Prof Ben Mweene, and the list goes on.
There were guideline and laws to protect any criminal activity. Next you will suggest that the of KCM to Anglo was under valued. Bids were made and the government through the Min of Finance accepted the bids. What theft was there? We have a problem with people wanting to suggest what isnt there. Already we have a Mulundika wanting to suggest the sale of Mopani was illegal. He has threatened to sue. What is stopping him? And some people without critically examining the facts just come here and make accusation. Your friend Nawakwi was sued for lying about the Hatembos. Do you have the facts to prove your assertions? No! Then please keep quiet and stop misleading people. Spreading lies on the internet is a crime and you can be found even when you want to hide behind aliases.
An opinion is one thing, but perpetuating falsehoods is another.
Bwamba clearly has insider information. Wasn’t it ECL who single-handedly signed off ZESCO as collateral for a loan?
If the loan sharks come knocking on the door, we all know who signed on the dotted line.