THE Government has terminated Nitrogen Chemicals of Zambia (NCZ)’s contract for the supply of 15,000 tonnes of fertiliser for the 2009/2010 Farmer Input Support Programme (FISP) because the company will not manage to deliver the inputs on time, Agriculture Minister Brian Chituwo has said.
The Government and NCZ early this month signed a Memorandum of Understanding (MoU) for the supply of the 15,000 tonnes, which is part of the 100,000 tonnes of FISP fertiliser, targeted for 500,000 small-scale farmers countrywide during this farming season.
Dr Chituwo said in an interview in Lusaka yesterday that the Government would not go ahead with the contract because it could not wait until October monthend when NCZ was expected to deliver D Compound fertiliser.
“The Government has cancelled the contract for the supply of 15,000 tonnes of the D compound by the NCZ in view of the time factor. We cannot wait until about end of October for the fertiliser to be delivered,” he said.
The supply of the fertiliser was this year awarded to Omnia Small Scale Limited and Nyiombo Investments, which were asked to supply 85,000 tonnes, while NCZ was supposed to supply the 15,000 tonnes of D compound to Southern, Central, Copperbelt and Eastern provinces.[quote]
Dr Chituwo said the Government had already engaged another contractor he refused to name to supply the 15,000 tonnes of the commodity after terminating the deal with NCZ.
He said the Government could not wait for the delivery of the D Compound by NCZ until October monthend because most of the districts had already received Urea and other top dressing fertilisers and the seed.
Normally farmers should first receive the basal dressing fertiliser since it is applied before the top dressing.
Dr Chituwo hoped that NCZ would next season be prepared for the exercise so that the company could participate in the supply of inputs and contribute to the sector.
The National Union of Commercial and Industrial Workers (NUCIW) has, however, opposed the cancellation of the contract, saying it would result in increased hardships among its members at the Kafue-based company.
NUCIW president, Seth Paraza said the Government should rescind its decision and allow NCZ to participate in the exercise so that the financially troubled firm could earn a steady income, which would help it address the plight of his members.
He said the Government’s termination of the contract would result in misery for the employees and wondered if it would help in paying their salaries and other entitlements.
Mr Paraza said the Government, the management and the union were scheduled to hold a meeting on the matter after failing to reach an agreement last week.
[Times of Zambia]
Anyway it is a chicken and egg situation
Nalyamo chituwo..from the other contract !
Ba NCZ, mulebako fast naimwe — Finti nizipu!
Here we go again. Do you s t u p i d Zambians remember Dunlop and CTS? Here you are again! Classic! Dejavu? No it`s real! It`s happening. That is Zambia for you. Instead of protecting your own you are busy doing the opposite. Someone has been paid. Better to import nokulyamo than defend your own. No wonder we have green passports now. Nigeria style!
Here we go again. Do you s t u p i d Zambians remember Dunlop and CTS? Here you are again! Classic! Dejavu? No it`s real! It`s happening. That is Zambia for you. Instead of protecting your own you are busy doing the opposite. Someone has been paid. Better to import nokulyamo than defend your own. No wonder we have green passports now. Nigeria style!
CTS? Dunlop? Anyone? I know you Zambians won`t remember despite claiming to be learned!
This is absurd. I’m so annoyed I’m failing to type. Zambia is so disheartening and lack ambition and planning you want to just cry everyday rubbish comes from that place. Nitrogen if free in the air. KK went out of his way to ensuring set-up of that mamoth plant. his plan was food security . saving the much needed FOREX.. You cannot tell me Chituwo that you and ur govt did not know early this year that fertiliser would be needed this time next year!! im so so gutted
This whole thing stinks of corruption. under this fertiliser support programme alone, the 100+ thousand tonnes of fertiliser has a current subsidised market value of at least $70m. A lot of money.. All that’s happene. is OMNIA & NYIOMBO have oiled this inept govt. I mean who would want to lose that revenue. The above two have no manufacturing plant in Zed. they simply import from South Africa’s SASOL. We continue to lose Forex, and keep our educated people out of employment. Where wil our engineers from our universities work??????? That NCZ plant is capable of manufacturing the national requirement x 3. Whats wro ng with us?????
CTS te Penza wa shitile?
NCZ u have a contract and u still fail to deliver? Fire the whole management, thus what we call failure. let tuma chocholi take over this plant, you will see, we shall even start exporting fertilizer.
Editor are you sure you are normal?
Zambia, Zambia, Zambia!!!
#11 Magicroundabout, we are all not normal, all what differs is the degree of abnormality, from your name, u seem to have more degree of abnormality than me. Anyway, my point is zambian managers are generally failures, honestly how do u fail to produce when u already have a ready market?? I know you are not in zambia right now so u r so disconnected about whats happening out here.
#9 Digga. Exactly! This is what we are seeing here. Penza got the whole country into trouble just to keep his wife`s company going.
#13 Editor. I am in missus compound right now mwana.
As usual emotionalism without reading, I wonder what kind of minds are on this blog. Read the story. It is clear NCZ was given the contract and THEY FAILED FAILED FAILED FAILED to deliver and what do you expect the government to do when the rain season is almost here? Cancel the whole farming season because UNIP peolple like most of you will complain. Come on get real and enroll in a basic economics course before you yap senselessly.
This is not the UNIP era the MMD is in charge and they have done the right thing. If NCZ delivered the fertilser the MMD govt was not going to cancel the contract it is that simple. NCZ need to compete and yes they will get first priority but they need to deliver. Id the are ready the next farming season Govt will procure from them
But the president is from the UNIP era no wonder you as an adult still has chitenge material RB in it. I bet I have to go and look for chitenge material with David Cameron in it because I work for the Torries! F o o l!
#16 Bootlicker!!! I wonder want you are doing in South Africa!!!! Zambian Govt should protect its industries and economy at large. Currently the Zambian Govt is supporting NCZ in terms of Financially and capacity hence the govt should know the problems NCZ is experiencing!!! So the Govt is to blame as well.
You are such an a@s hole BOOTLICKER
Hey I see you are new here , anyway I work at the embassy here. Look read what I said NCZ was given first preference to supply fertiliser they failed. Why are you avoiding that point. This is not a new contract where NCZ was overlooked. They were given a contract.
Ok to use your logic, in the name of protecting the industry, we decide not to import fertiliser and wait for NCZ to deliver can you tell me the consequences this would have on the farming community. Lets debate don’t just insult me like PF cadres and sure you are a smart man and can do better than just insult me.
This whole cancellation smells a rat. Dr. Chituwo is just being used to announce the GRZ position but somehow some where they have given each other contract to supply fertilizer to small scale farmers. This is direct killing of NCZ. Wait and hear next the pipo involved.
Botlicker you mean like we did with ZCCM? How about the repurcations? You are not just dim but irritating!
MMD has some of the best mind in the country than some of you think. MMD is the best party. Surely you can’t compare us to PF. Just look at what GBM said in Kasama. Vote for me because am Bemba. What a protectionist stand. Why can’t GBM just compete on a playing level field without using his tribe. Shame!!
Coming to the topic at hand, let me pause this question: Would people rather protect NCZ jobs and pay for mealie at 100 pin per 25kg bag or import fertiliser and pay for mealie meal at 50pin/25Kg? This is the issue here. You you lower cost of production for farmers, they can produce more and export more and even consumers can save money and use that money to stimulate the economy and create more jobs than the little you are protecting at NCZ. If NCZ want to be viable ..contd
To be viable NCZ management need to do two things:
1. Producce fertilizer cheaper than the foreign imports
2. Execute orders in terms of delivery and meet market demand.
If they can’t do these two things, they might as well close just like UBZ and nobody misses UBZ
#21 Mine privatisation, say what you want has been a success. Read the numbers since MMD took over. Zambia mines are producing more copper today than when we took over
Mines are contributing more to the GDP number today more than we took over . From January this year, under President Banda, Zambian exports have been steadily on the rise. Not even a single month of decline and if this continue, we are on our way out of poverty. Our trade surplus is has been rising. Check these stats. they are publicly available…
LET ME BEGIN BY APPRECIATING ALL FELLOW BLOGGERS FOR YOUR CONTRIBUTIONS ON THE MATTER AT HAND WITHOUT INSULTING ANY LIKE OTHERS ARE DOING. HOWEVER, I WONDER AGAIN JUST WHEN SOME BLOGGERS WILL ONE DAY SHOW OBJECTIVE THINKING. THE ISSUE HERE IS VERY VERY VERY STRAIGHT FORWARD. NCZ WAS AWARDED A CONTRACT BY GOVT AND FAILED TO BEAT THE DEADLINE TO SUPPLY FERTILIZER. THUS, GOVT CANNOT SIT BY AND WATCH, IT MUST DO SOMETHING BCOZ THE SEASON WILL NOT WAIT FOR NCZ. THEREFORE, IN ORDER TO PROTECT OUR POOR PEASANT FARMER PARENTS, GOVT HAS GOT TO EMBARK ON OTHER ALTERNATIVES AVAILABLE IN MARKET BCOZ FARMERS WONT PUT BLAME ON NCZ IF FERTILIZER IS NOT SUPPLIED BUT RATHER GOVT.
Bootlicker, are you really normal???? Would you really say MMD government has made alot of progress???
Imagine countries like Malawi and Uganda are better than Zambia!!! Malawi just started their mining operation (Uranium) now otherwise they depend on agriculture same applies to Uganda, these countries are much better than Zambia. Zambia has minerals, about 60% water resources in Southern Africa but we can’t feed ourselves.
Honestly you make me sick when you preach about MMD. Our people are living in poverty!!!!!
#23 Bootlicker. How many people are employed by the mines on the CB? How many did ZCCM employ you f o o l? Just because you are always kissing imputi yaba God knows doesn`t mean all is well. A waste of time arguing with you!
MMD 15,000 tonnes(15%) out of a total purchase requirement of 100,000 tonnes IS NOT PREFERENCE. on the contrary it shows Govt’s lack of seriousness and resuscitatting and localising fertiliser production. ultimately job creation. Govt had a good 1yr to plan production machine set-up, production run plans. etc
#26 just debate me. Put down your point and stop insulting me please. You can do better than than. Anyway to address your point in #25. Yes Zambia is a poor country that is no secret and we know we have poverty and that is obvious, but we are doing something about it. We have set targets. Zambia was never a developed country under UNIP with zero poverty. Yes the levels are certainly high now but it is characteristic of an economy in transition from Socialist to Free market enterprise. What you need to measure is out progress and the numbers show we are making progress.
Employment numbers of ZCCM I don’t know. am sure the old ZCCM employed more people. But for sure they produced less copper than the current mines are doing. Maybe old ZCCM hired more people to build a road with tea…
I cannot stand the currently crop of so called leadears. their acumen to facilitate and put in place a real strategy is. nil. They cannot dot the I’s cross the T’s. They can’t link issues, read a pattern, fill in the blanks. They all need to LEARN AND PLAY SCRABBLE.. no cohesive thinking on issues .. they just sit and make pronouncements.. “We are diversifying and supporting griculture”. “We Govt is opening Farm block to three or 4”. “Govt is supporoting Farmers”.. The *****s cant see that the Critical Success Factor to crop production is availability of fertiliser at or near each farmer, at the right time at right quantity.. Now what are the Operation, Financial & Comperative’s of achieving CSF one
continued from #28..Maybe the old ZCCM hired more people to build a road with tea spoons and the new mines are using Graders and hi-tech and need less people. I hope you get the analogy. You don’t create employment for the sake of employment ..it is about productivity. You can’t fake wealth you need to create it. We can employ all Zambians to build a new road to Shangombo and give them spoons to do it and it will take them 15 years to finish the road and they will remain employed. What value will that add to our economy and who will we be cheating? Ourselves!! Is that the type of employment you want? Let’s be realistic. We are competing on the world stage now and we need to bring value to the table. The world is flat again
Botlicker this is where I see you to be dim. Look, with all the mistakes ZCCM made, at least the beneficiary were Zambians. Thanks for agreeing ZCCM employed more people which obviously meant villagers like yourself benefited as well. How about when you publicly displayed your f o o l i s h n e s s about net banking not existing in Zambia?
?? with critical planning.. Govt and Select parliamentary commitee set-up to come up with issues, strategy, industry & wide consultation (both In’tl & Local) and necessary bills to support all this. After all this I assure that it will all come down to Location, Cost, Distribution Infrastructure, Cost of logistics.. I assure it will all come back to the once mighty NITROGEN CHEMICALS PLANT.. Central country location, Positioned along major road infrastructure. Ease and lower cost to the Distribution Chain participants (OMNIA, NYIOBO) cause transportation from SA and othr logistcal costs cut.. Commercial viabiltiy clearly there.. Govt then only has to worry about. Road infrastruture into far flung areas.(their Job) and ultimately prepare for privatisation but retaining at least 35%
. Evenutally provide specific investment framework executed through ZDA, that provides concessions to firms willing to set-up their own plants in Zambia and ease incorporation, cost of doing business etc.. Thats just one CSR of agricultural diversifiaction plan sorted out. then other CSR’s to do with Training (UNZA/AGRIC schools), Disease research centres policies . Eg 90% bursary for 5,000 or so school leavers that enrol into Agric school. and VET school & AGRIC Science degree course at UNZA. separate from the busary commitee general policy…
Only ibolo can blame NCZ in this situation.it’s a game of tricksters.goverment gave NCZ that order to manufacture the fertiliser and the same time not giving them any cent from the huge debt they owe to make them have capital to embark on the production.meanwhile nyiombo is advanced some money to import.it’s just uncouth for this goverment to treat NCZ it’s own child in such a way.chituwo knew that without capital NCZ cant produce so to appear to be transparent they had to play that gimmick so you sleeping quacks would see that even NCZ has been carried on board and they have just failed.mwalefwaya bashitishe amaso elo bakwate capital.mubaleke abene balibelela ukuchula ukuchila ukubatumfya.
So MMD bootlicker, seeing that u are likely to be a shu shu shu.. tell all your MMD thugs and and friends that we have bigger brains and minds than them. The can improve on their conceptual ability by playing SCRABBLE or filing in CROSSWORDS. their something degrees cannot teach.
So what is the next step for GRZ, new contracts then?Who will i contact to supply FRA
Where was the tender for Omnia advertised? I wanted my Co. to compete also. Chituwo answer me before I consider the tribunal. Was this single sourcing or there is an MOU with NYIOMBO?
These guys are just using nyiombo as a vehicle to defraud goverment.because if nyiombo was a serious undertaking the fraud which is going within the company would long have been detected.their employees have made cartels where they steal the same subsidised fertilizer and supply to some people known to them who later take it to an open market.it should suprise you that in towns like kapiri there is a nyiombo retail outlet and their are some guys dealing in fertilizer.the price of nyiombo the supplier is higher that the street dealer selling the nyiombo commodity.so it shows lack of accountability and no one cares because goverment will pay not for the quantities supplied but the figures given to them purpoting to have been supplied.day light fraud
Bootlicker!! How many years has the MMD govt been in power? about 15years!! Tell me how many roads have they built? How many schools, hospitals etc??
You stay in South Africa, where a government is spending billions in upgrading and building infrastructure using their own money not donor funding. There is nothing special about South Africa apart from accountability and focused on developmental issues.
Our politicians what they talk about is election campaigns day in day out!! You really make me sick!!!
Gentlemen this is pure chiluba mentality,if you remember he paralysed the NCZ through out his tenure and he has shown the sleeping giant what should be done so that they may be answerable at the same time.Shall we open our eyes these MMD thieves are again stealing day light.We are good at talking but no action why cant one day do a demonstartion?If we allow these maggots to continue ruling us then we are in for the root shock.Lets change govt,for now its pf/upnd why not try them,after all sata and hh speak sensible things than RB.
This easy, reduce emotion. These guys were given an order and seem unable to deliver on time. And as we all should know, this product is time sensitive. I think we should actually be thinking how effecient the NCZ plant is. If really and truly it is uneconomical, then it should be shut down , transformed or updates. For all good reason, we ahould consider that this plant is like thirty pluss years old. so if it has not been upgraded over the years, it is probably absolete
2012 the end of the world
CRUSHER,
We change goverment then bring in PF/UPND. Sata you mean?with mumbi phiri,jean kapata,kambwili,GBM or sejani and kapita? So you look at those people and see a ray of hope.let me hurriedly move my children out of this country.
There are deadlines, timelines and capacity. When did NCZ get the contract? What is its current capacity. Since (I know) it is not well capitalized, how much down payment did it receive to start executing this contract? NCZ is presented as the incompetent party but we are not given enough information. In its current state, NCZ needs Govt. help to deliver – this is clearly not being helpful.
Know the Facts! NCZ was given the contract on 2 September. GRZ was required to make a down payment as per contract terms in order to enable NCZ order raw materials and meet its other working capital requirements. GRZ did not make this down payment. Contract was cancelled on 14 September for reason that NCZ would deliver the product late. Think about it!