NOOSE AROUND GEORGE KUNDA’S ACTS OF ALLEGED GRAFT BEGINS TO TIGHTEN

Former Vice President, George Kunda, last year allegedly authorised the collection of taxes, as a national revenue mobilisation measure, without cabinet or parliamentary approval.

This was through statutory instrument number 101, which was conspicuously signed on 28^th August 2011, after both cabinet and parliament had been dissolved, by then President Rupiah Banda.

The respective piece of legislation was in replacement of statutory instrument number 54, which was earlier signed by then Finance Minister, Situmbeko Musokotwane, in connection with the Bradwell International contract with Zambia Revenue Authority.

This was in a contract, in which the UK-based company was engaged to operate and maintain the NUCTECH scanners procured for Zambia’s border posts.

According to the report of the commission of inquiry on ZRA’s operations and contracts, the act was both illegal and illegitimate, therefore its recommendation that Mr Kunda and others involved in the deal being probed.

The respective deal has also implicated the immediate past two ZRA commissioner-Generals, a former permanent secretary in the Ministry of Finance and National Planning, as well as some five officers in the Intelligence system.

According to the findings of the commission of inquiry, Bradwell International was awarded the said ZRA contract last year, with influence from the Ministry of Finance and some named five Zambia State and Intelligence System officers.

However, payments for the Bradwell contract were to be mobilised through the statutory instrument signed by Mr Kunda, which facilitated a K 360,000 levy for every truck passing the border post, with or without a scanner.

Conspicuously the levy was to be shared between the ZRA and Bradwell International on a 15 per cent and 85 per cent ratio, despite the earlier NUCTECH scanner supply deal having had an 8 million dollars component of operate and maintain, all within the total 25 million dollars contract.

And arising from this, the commission of inquiry discovered that a total of 12.3 billion kwacha had since accumulated in the Nigerian owned Access Bank, within a month of operation of Bradwell and effecting of the respective number 101 statutory instrument.

As a result of SI No. 101 the importers and exporters were made to pay K12.3

Billion Kwacha in 24 days out of which Bradwell International was to receive K10.4 billion while the Zambian Government through ZRA was to receive a paltry K1.9

billion as per sharing ratio.

Zambia Public Procurement Authority Director-General, Samuel Chibuye has also been implicated in the deal, through his act of granting a direct bidding on 14^th and 15^th February, 2011.

The commission of inquiry has since concluded and observed that statutory instrument number 101, signed by Mr Kunda was hidden in its formulation, as it did not give an inclination that the fees raised would be channelled to Bradwell International, a private company, for the operations and maintenance of scanners.

KWACHA REBASING GOOD BUT MISPLACED PRIORITY SAYS MILUPI

The opposition in Zambia has advised against prioritising the rebasing of the kwacha as government continues to work towards arching its own social-economic agenda.

Alliance for Development and Democracy President, Charles Milupi says there are several other problems, which the new government can pay attention to.

Finance and National Planning Minister, Alexander Chikwanda has indicated government’s plans to rebase the local currency, within a time frame of six months.

But Mr Milupi has stated that the rebasing of the kwacha, good as it might be, is mistimed because there are poverty and employment challenges, which demand immediate attention.

He has said on a local radio interview that alarming unemployment levels and poverty must have made priority for government.

Mr Milupi has explained that the kwacha is currently very strong and very stable compared to other global currencies, a factor, which can be used to strengthen the economy instead.

He has added that for now, the economy needs to be nurtured to levels of jobs and wealth creation in order to counter poverty and unemployment.

And on the anti-corruption crusade, Mr Milupi noted the aggressive approach as very welcome.

He however cautioned the new Patriotic Front government to be focused and ensure they clean up what he called the mess created by the previous Rupiah Banda regime.

NEW LIBYA GOVERNMENT TO DIALOGUE WITH ZAMBIA OVER ZAMTEL

Libya will do all it can to protect its 75 percent stake in Zamtel, the fixed-line telecoms firm in Zambia, whose government announced plans last week to seize Libya's stake in the firm.

Libyan Foreign Minister, Ashour bin Khayyal says he has spoken to his Zambian counterpart about the issue, on the sidelines of the African Union summit in the Ethiopian capital.

Zambia dissolved the board of Zamtel and appointed a new acting CEO last Tuesday, a day after announcing plans to seize 75 percent of the firm from Libya's LAP Green Networks.

The previous Zambian government had sold the 75 percent stake to LAP Green Networks for 257 million dollars in 2010.

Libya made major investments in Africa during Muammar Gaddafi's rule, some of them managed by the 65 billion dollars Libyan Investment Authority through a 5 billion dollars fund known as Libyan African Investment Portfolio.

LAP Green, a telecom company operating in six African countries, was one of these investments.

Khayyal has added that Libya would send a delegation to Zambia to discuss the Zamtel issue in one or two weeks.

AIR EMIRATES LAUNCHES LUSAKA, ZAMBIA FLIGHTS

Emirates Airlines on 1^st February 2012 launches its maiden flight from its base in Dubai to Lusaka, Zambia.

Emirates manager for Africa, Muhammed  Riza has confirmed that an airbus A330 takes off at 07:25 hours Zambian  time after a brief ceremony at Dubai international airport tomorrow for a seven hour flight to Zambia.

The 239 seater aircraft is expected to land at Kenneth Kaunda International Airport at 14:50 hours.

Mr. Riza says will thereafter proceed to Harare, Zimbabwe.

EMBATTLED ZIMBABWE OWES ZAMBIA MILLIONS OF DOLLARS

Zimbabwe has an outstanding 70.8 million dollars debt with Zambia over the Kariba South Hydro Power station.

The Zambia Parliamentary Public Accounts Committee has heard that the debt is over shares Zambia sold to its neighbouring country in 1987.

The respective power plant, which was jointly owned by Zambia and Zimbabwe when the two countries were jointly called Rhodesia, is located across the Zambezi River.

When the two countries became independent, the power plant was found to be in the Zimbabwe territory forcing Zambia to sale its shares to the latter at the cost of US$70.8 million which has remained unsettled to date.

Ministry of Energy and Water Development Permanent Secretary, George Zulu told the Public Accounts Committee that Zimbabwe has since assured that it will this year start offsetting the debt.

Mr. Zulu, however, noted that the debt has overstayed and accumulated interest of about 216 million dollars, which Zimbabwe will also have to pay on top of the actual debt.

The power plant used to supply power to both Zambia and Zimbabwe and was being run by the Central African Power Company before handing it over the government of Zimbabwe.

ZANACO CONFIRMS THE START OF A GOVERNMENT PROBE

Zambia National Commercial Bank –ZANACO- has confirmed that it is under investigations following the partial sale in 2007.

This comes after the setting up of a commission of inquiry on 20^th December last year.

The Bloomberg has further reported that the financial institution has, meanwhile, expressed fears that this might have, what it has described as ‘material effect’ on its share price.

ZANACO Spokesperson, Chana Musakanya has further hinted that the bank will cooperate fully with the investigating team, adding that it looks forward to the review of the privatisation process.

In 2007, ZANACO’s 49 per cent shareholding  was acquired by the Utretcht-based  Rabobank Nederland, in a deal, which then manifested public and stakeholder controversy.

However, 5 years after the transaction, the bank, which seems to have now settled, has further listed on the Lusaka Stock Exchange, following completing an initial public offering in 2008.

But Information Minister, Fackson Shamenda says the investigation is a routine inquiry and aimed at simply establishing that all procedure was followed when it was sold to Rabobank.