Flashback: IMF, World Bank pressured govt to privatise mines – Nawakwi
By Chiwoyu Sinyangwe and Chibaula Silwamba
Friday November 02, 2007
FORMER finance minister Edith Nawakwi has revealed that the IMF and the World Bank pressured the Zambian government to privatise the mines on the pretext that copper prices would not increase in 20 years.
According to a report by Action for Southern Africa (ACTSA), Christian Aid, and Scotland’s Aid Agency entitled, “Undermining development, Copper mining in Zambia” dated October 2007, Nawakwi – who is Forum for Democracy and Development president – admitted that the International Monetary Fund (IMF) and the World Bank told the Zambian government that copper prices would never increase, hence they should privatise the mines.
“We were told by advisers, who included the International Monetary Fund and the World Bank, that not in my life time would the price of copper change. They put production models on the table and told us that there (was) no copper in Nchanga Mine, Mufulira was supposed to have five years life left and all the production models that could be employed were showing that for the next 20 years, Zambian copper would not make a profit,
” the report quoted Nawakwi as having told its author in an interview on July 26, 2007.
“Conversely, if we privatised we would be able to access debt relief, and this was a huge carrot in front of us – like waving medicine in front of a dying woman. We had no option (but to go ahead).”
According to the report, Nawakwi stated that one of the arguments in favour of privatisation was that it would save the government money by relieving them from propping up an enterprise losing up to US $1 million a day. The report further revealed that in 1999, the donors withheld aid to Zambia until the government agreed to privatise the mines.
“Privatisation of ZCCM (Zambia Consolidated Copper Mines) was a condition repeatedly attached to several loans from both these institutions (IMF and World Bank) and was a pre-condition for Zambia to qualify for debt relief through the Highly Indebted Poor Countries (HIPC) initiative. In 1999, with the Zambian government still reluctant to privatise ZCCM, major donors withheld some US $530 million in aid until the government conceded,” the report revealed.
“ZCCM’s assets were split into seven sections and sold to various investors, though the company was able to retain shares in some of the units – including in KCM (Konkola Copper Mine) – through the creation of a holding company called ZCCM-IH (Zambia Consolidated Copper Mines Investment Holding).”
According to the report, the negotiators argued that increased investment by the new mine owners would generate significant profits that would be channelled back to the Zambian government through taxation and dividends.
“Although this has happened to some extent, evidence from a variety of reports suggests that the amount of revenue transferred to the Zambian government by new mining companies is relatively small compared to the revenues transferred to governments in other resource-rich countries,” the report read. “For example, according to Christian Aid’s Rich Seam report, Botswana’s largest diamond mining company Debswana pays at least 70 per cent of its profits to the government through revenue transfers of different sorts, including dividends.”
On financial benefits from the development agreements with the mines, the report points to the fact that Vedanta’s annual report does not detail the amount of net profit that KCM makes in various financial years or how much was paid to the Zambian government in various forms of revenue transfers.
“Given the lack of information available, the figures cited below are approximate. We firmly believe that Zambia was placed under considerable pressure, which weakened its bargaining position, leaving it unable to replicate models that had been successfully applied elsewhere,”
read the report.
The report indicated that in the financial year 2006/07, KCM would have paid in excess of US $6.1 million despite the company extracting ore that generated revenues in excess of US $1 billion.
It also stated that it was not clear whether the mining companies had paid “even these low rates of royalties”. The report also highlighted the practice of price participation that evidenced Zambia’s weak negotiating position.
“Price participation constitutes a separate contract in its own right. We’ve been unable to obtain a copy of the contract, but a ZCCM official told us that, if the price of copper at the London Metal Exchange exceeds a specific benchmark (US $2,700 -2,800 per tonne) then government through ZCCM-IH starts to claim back a certain percentage (in KCM’s case, 25 per cent) of the difference between the benchmark price and the current price,” read the report.
“According to the same official, ZCCM-IH rarely receives the full percentage as “there are conditions (attached) and a cap on the amount that ZCCM can receive from KCM in one year (roughly US $16 – 19 million). In our view the net result of these clauses is that the Zambian government is unable to derive what would normally be considered its rightful or normal rewards from the extraction of the country’s key natural resource.
“One would expect that the Zambian government/ZCCM to benefit from these profits through its shareholding in KCM. However, sources suggest that KCM has distributed only four percent of its net profit to shareholders in form of dividends for the financial year 2007.”
Recommendations that were made
- The authors of the report recommended an end to the culture of secrecy that surrounded the mining industry.
- It recommended that development agreements should be published.
- “The mining companies should pay the Zambian government a larger share of the difference between the actual copper price and the trigger copper price in the price participation scheme, and also pay value added tax at local business rates,” the report recommended.
- “Develop the political will and institutional capacity to effectively enforce existing labour, safety and environmental legislation, update national pollution laws in line with the latest World health Organisation guidelines, and to ensure that companies agree to include these standards in their environmental management plans as part on the renegotiations process.”
- They also recommended that the Zambian government revisit the development agreements from the perspective of the Zambian people rather than that of the companies.
- They also recommended that mining companies approach the renegotiation exercise, not as an opportunity to pursue their own interests, rather to revise the government’s share of revenue upwards for the long-term benefits of both parties.
Experts built the Titantic,amateurs built the Ark…..Why are we continuously blinded by this fact.Why do we think someone in the US knows how Zambia should function? Only Zambians will fix Zambia
They did the right thing
All successive companies and organisation are run by foreigners in particular whites, although here or there you have some Indians.
What I am saying people is, it is the RIGHT thing to let zambian companies in foreign hands because they know that little better than zambians.
We are overall, it pains me to say this, not as clever as we think we are .
Let foreigners run these companies, and this really shouldn’t be making headlines whatsoever.
We are blessed, top engineers, top doctors etc are not zambians in teh world, what more clue do you want?
Sorry truth hurts I know
Thanks
THAT IS THE MADAM WHO WANTS TO RULE ZAMBIA – EASILY SWAYED AND BELIEVING! SELL ZAMBIA BECAUSE IN THE NEXT TWENTY YEARS THERE WILL BE NO ZAMBIA TO TALK ABOUT! IF IMF AND WORLD BANK THOUGHT THAT THERE WAS NOTHING LEFT IN OUR MINES, WHY DID THEY RECOMMEND FOR THEIR PRIVATISATION? CAN SOMEONE BUY SOMETHING THAT HAS NOTHING IN IT? ANYWAY, THAT ASIDE, DID WE HAVE ANY OTHER OPTION APART FROM PRIVATISING THESE MINES? FROM WHERE WOULD WE HAVE GOTTEN THE MONEY TO RECAPITALISE THESE MINES?
@ Mushota, please do not take this personal but I think you are doing yourself a disservice on this forum. You need to understand that the inferiority complex you are displaying, especially with your ‘qualifications’, is partly to blame for such things happening.
There are a number of blacks in the world who are inventors and scientists. Have you heard of the following: Dr Ben Carson (first surgeon to successfully separate conjoined twins ), Frederick McKinley Jones (Invented refrigerated truck systems), Granville Woods (Invented the Synchronous Multiplex Railway Telegraph), John Albert Burr (Rotary blade lawn mower patent), Otis Boykin (artificial heart pacemaker control unit)…the list is endless.
@Reality
In essence I am refering to the majority. You are right about those people you have thrown at me, but really, those are exceptions.
Exceptions in the sense that even twins who are identical are never quiet similar in looks,before i lose I am saying predominatly.
I am black and I think by many people’s standards and cerainly Zambian weomen I am an exception and rare breed who has achieved by any standards wellabove average. Ofcourse you are probably thinking I am not modest in talking about me, but the truth is, I dont have to. I like to ‘show off’ that I am this much better and different from he rest.
…..
Point really of my point earlier was that IMF or World bank pressuring Zambia to sell any companies is silly to believe t is the route of the problems of the super unreported profit
There was no proactive intuitive action from MMD, not PF.
They have showed they were not up for it when privatising companies in Zambia, I don’t think such mismanagement could have happened if PF was in charge.
I don’t like responding to people but I see you didn’t resort to profanity and sacrilege in responding to me, hence you got my attention.
Keep it up.
Thanks
But miss nawakwi, did you allow your own zambians carry out research on the viability of nchanga mine or the projected copper prices of the future? we have economista and minining engineers at UNZA and copperbelt province. why did you not tell IMF and World bank to wait a few months until our own experts at these learning institutions carried out their own research to see if what IMF was suggesting was true. you cant go to a gun fight with malegeni. PF find a way to fund research at our institutions of learning, or develop policies that will encourage all companies to work with the universities. Whats the whole point of having these learned people at UNZA, CBU,MUlungush and other universities if you cant efficiently use their expertise.
@ Mushota, I understand where you are coming from and it is embarrassing to say the least for the whole nation to succumb to such pressure from these big organisations. A beggar is not a chooser as they say but this is not an excuse. The government should have employed some lawyers to help them scrutinise these deals, especially including clauses to maximise wealth for the nation should the opposite of what IMF or WB predicted happened.
I understand you are well accomplished education and career wise but we are looking up to you to be role models and encourage the young who are still climbing up the education ladder.
The PF have a chance of making things right if they want to be seen as smart, especially following the revolting video of Argawal boasting of supernormal profits!
simply put, IMF and the world bank do not, have never and will never save our interests as Zambia or indeed interests of any developing country.
the more often we take the carrot that is dangled in our faces the better for IMF and world bank because each time we accept to implement their flawless and sweet sounding development programs and they give us loans in return, only to discover much later that we were duped, we are 50yrs behind in development.
We need to trust ourselves instead of taking anything and everything that comes from IMF and world bank.
The revelation by KCM owner is not only embarrassing but injurious to our pride as nation as we have been stripped in public and flogged by an indian
When the KCM video was first published and people started calling Levy Mwanawasa all sorts of names, I asked people to take the circumstances as they were at the time KCM was sold for $25m. People in their wisdom (only gained with the benefit of hindsight) jumped to castigate me. But this vindicates me in as far as my points suggesting that the Zambian Mines were in a deplorable state when they were in Govt hands and instead of making profits, they were chewing the little public funds at a rate of a $1m a day. Given such facts, anyone offering $25m cash, $375m in investimate, jobs for your people and revenue in taxes would look like a “Saviour”. Our problem in Zambia is that we always wait for the WEST to lead the way. Our Economists should have known the anticipated demand for copper
They can still be nationalized and chances are 50/50, only if we happen to get a president that cares and got guts.
Mushota, with that mentality, one wonders which village your man picked you up from and i pity you cos it seems he just abuse and use you knowing what kind of fool(full) dog you are.
Yet Fossil Chikwanda still repeating the selfsame thing today…signing loan after loan.
You be right.
But honestly Zambians & Zambian government has a big problem with inferior complex. Even today, whatever IMF will tell him they will believe. Even Indians are riding on Zambian backs sure.
The problem is not WB and IMF but ourselves. These institutions only makes recommendations, Zambia as a country it is free to modify or adopt the recommendations in its entirety or reject them. What happens is the failure to effectively consult internally by politicians which leads to poor decisions. Currently why can’t the govt introduce windfall tax? Chances are that the powers that be are living in heaven on our taxes hence they seeing nothing wrong with the suffering of the poor, hence the removal of subsidies all together on fuel and maize.
Well said
” The problem is not WB and IMF but ourselves. ”
Nonsense. There is a reason why the IMF/World Bank recommendations are the same for every country in the world.
How can you say ‘we are to blame’ when the same thing is happening in Ireland, Greece, The Ukraine, the United States, Chile, Argentina – India itself.
Can you detect a racial trend in that? I can’t.
The fact is that we are all being shaken down by the same banking cartels, because most people in the world don’t understand banking or finance, so they get to blame eachother.
This is what prompted president Levy Mwanawasa’s administration to introduce windfall tax, the very tax the PF is refusing to bring back, with FINANCE minister Alexander Chikwanda describing as “lunatics” those advocating the reintroduction of the 25 per cent windfall tax on base metals:
“There is a misconception by external people who feel that we can get more money from the mines. Even internally, they have been many lunatics who think we should involve windfall tax…but the production costs in the mines are very high,” Chikwanda said. Source: The Post Thu 22 Mar. 2012.
@CHETE: TWASALIFYA! HOW WOULD THE WINDFALL TAX WORK ANYWAY? THE GOVERNMENT TO AGREE WITH MINE OWNERS THAT AT THIS LEVEL OF PROFIT THE MINE CONCERNED PAYS AN AGREED UPON TAX BEYOND WHICH THEN THE DIFFERENCE BETWEEN WHAT WAS AGREED UPON AND THE NEW LEVEL IS EITHER STERILISED OR SUBJECTED TO WHAT TAX REGIME? PLEASE “CHETE” EXPLAIN TO US. WHAT THEN HAPPENS IF PROFIT LEVELS GO TERRIBLY BELOW AN AGREED UPON LEVEL BECAUSE OF FALLING COPPER PRICES? DO YOU SUSPEND THIS “WINDFALL TAX” APPLICATION AND AT WHAT COST? WHAT BENEFITS TO BOTH THE GOVERNMENT AND THE MINE OWNERS? LET US LOOK AT BOTH SIDES OF THIS VERY NASTY END. WINDFALL TAX WHEN COPPER PRICES SKY ROCKET BUT WHAT WHEN THE PRICES PLUMMET?
Kalumba, do you know why the tax was known as ‘windfall’? How did it work under Mwanawasa? How wouldn’t it work anyway?
You have to be aggressive when operating with these thieves tax those tonnes of copper at market prices….you simply can not let politicans like Shamenda do the negotiating.
@CHETE: I AM NOT VERY SURE IF THE MWANAWASA ADMINISTRATION EVER ADMINISTERED THE WINDFALL TAX REGIME – I MAY BE WRONG HERE BUT IF MY MEMORY SERVES ME WELL, THE MWANAWASA ADMINISTRATION WAS PLANNING TO INTRODUCE IT BUT OPTED FOR ANOTHER FORM OF TAX WHICH PROMPTED THE PF (IN OPPOSITION THEN) TO PUSH FOR ITS INTRODUCTION AND PROMISED THAT IT WOULD INTRODUCE IT WHEN IN POWER. THE ONLY COUNTRY THAT I AM AWARE OF THAT HAS INTRODUCED THE WIDFALL TAX IS FROM SOUTH AMERICA – I GUESS CHILE?
Kalumba, your memory is serving you wrong! Please search this story on Google: We are not opposed to windfall tax – Chamber of Mines. It was carried by Lusaka Times and reading it will give you an idea of when the windfall tax was introduced, how much Zambia benefited from it in one fiscal year and who shamelessly removed it. After your memory has served you right, come back and contribute from an informed position, not guesswork, please.
@CHETE: I APPRECIATE AND THANX. WILL VISIT THE STORY. IS THERE A REASON THEN WHY IT WAS DROPPED AND WHY THE CURRENT GOVERNMENT CANNOT GO FOR IT?
How painful! There are no adequate words for this.
I am outraged and even hurt by this, especially in the light of the recent solid evidence of tax evasion by KCM and after watching Good Copper, Bad Copper and the Vedanta clip. We are being ripped off so blatantly, and driven into debt for lack of strong leadership and more likely due to a very shadowy partnership between state actors and the mining companies, and one that goes right back to the Chiluba era mining development agreements. I am increasingly of the view that if we can’t manage and gain significantly from our mineral resources, we might as well stop all mining until such a time we are prepared to lead the sector. No wonder they assassinated Levy!
I do not like your last statement about levy can you substantiate it? If not keep quiet *****!
Aggressive- Why are you angry, do you know something we don’t? Levy died in mysterious circumstances and it was around when he started calling for the windfall taxes.
I watched the good copper, bad cooper too. I am beginning to see the connection.
We cant rule out anything…
I recall that the former first lady Maureen Mwanawasa once suggested that the death of her husband should be probed. Why did she say that? Let us not forget that she was with her hubby when he died. I think it is time we take the suggestion very seriously. In the wake of new evidence suggesting that the late Yasser Arafat was poisoned, I am wondering if our very own Levy Mwanawasa was also assassinated. It is simple to dismiss any suspicions about his death as unfounded and conspiracy, but given the rapid and mysterious deaths of some leaders in the recent past and the development of such lethal or fatal substances as radioactive polonium, which does not emit gamma rays, but alpha particles, making it hard to detect, anything is possible in our world today.
Was it really a mere stroke that killed Mwanawasa or perhaps he was assassinated by powerful people, or institutions, or corporations, or countries, or a combination of these, whose critical interests he threatened? Was his an ordinary heart attack or a sudden ‘disease’ contracted in Egypt through natural causes? Or was he deliberately infected with a poisonous substance or agent by those who wanted him out of the way?If he was assassinated, do we have the capacity as a country to investigate his death and unearth those who found the way to harm the health of our arguably best president after KK? If we lack that capacity and are therefore in no position to ascertain what killed Levy, what guarantee do we have that he will be the last leader we will lose to a ‘stroke’ or ‘heart attack’?
Kazembe, Levy actually died when the windfall tax was in full force! And when RB came to power, one of the first things he did was to remove it! I think this Chete fellow and The Owl are raising important questions. Let us reflect on the possibilities.
Did the IMF, WB, donors also insist the mines be sold for a song ignoring common sense? You accepted production models from a buyer! Kids are taught in schools that copper will one day dry up yet you listened to a desperate buyer telling you there will be no copper in 20 years and the little there is would be valueless? This was obviously a con job. We should really learn to negotiate and appreciate the wealth we are endowed with.
” Did the IMF, WB, donors also insist the mines be sold for a song ignoring common sense? ”
Pretty much. They created the conditions for a fire sale.
” You accepted production models from a buyer! ”
Not from a buyer. The IMF wasn’t officially buying the mines. However they were most definitely benefiting. For instance Konkola Deep Mine was sold to Anglo-American, whose twin De Beers was funded by NM Rothschild, in 1887 (it’s on their website, google: de beers history rothschild).
However, what they could have done, was say: “OK, you say that copper prices won’t rise in my lifetime, lets’ say you’re wrong, and put a 100% tax on every cent over $2,00 per pound. If you’re right, we never get to collect, but if you’re wrong, we won’t lose money.”
In other words,…
In other words, call their bluff.
Now they would have probably said no, but it would have been clear for all to see that the IMF was not acting in what lawyers call “good faith”.
The whole neoliberal project of the IMF/World Bank is completey dogmatic, has nothing whatsoever to do with development (as we have seen), and is all about the concentration of wealth into the hands of ultimately one family, one individual.
They even have the gall to say “if only we had more Zambian/Zimbabwean/etc billionairs”. Because that’s their world view – a world developed by a few billionairs.
What we need, is to build a massive middle class that includes everyone, which means a safetynet for the poor, and confiscation of extreme wealth.
If nothing outrages this country as this – then I declare this nation and its people useless and they deserve to be ripped off of every cent.
What a country!
You are what you negotiate.
When the US/Britain/Japan go to WTO, they carry more than 200 lawyers, and an outrageous number of expert negotiators combing through every clause and looking out solely for their interests. Botswana, Namibia and SA have learnt the same.
Zambia travels with three people – A PS, the Minister and probably some staff member, no lawyer, no negotiator.
Dear Zambia, Please let us wake up and fight for our resources. If politicians are not ready to correct things, please let us all stand up and be counted. We expect the copperbelt to chivivula and we will follow suit. We cannot continue allowing this theft of our natural resources. Please let us start this fight. Our politicians are busy receiving bribes from the same mining companies
Aggressive Muntanga, you mean you do not know that Mwanawasa was assassinated ? Fredrick Chiluba and Xavier Chunugu were the chief planners. Mwanawasa was poisoned!
That moment when you feel like Insulting some…..
Get back those mines or increase and re introduce windfall tax. All mining companies must be compelled to spend 5 % of their profit on the local community
A percent of their revenue, not profit because they are excellent at manipulating profit figures. The number one manipulator is KCM with their ugly indians
My people perish for the lack of knowledge (Hosea 4:6)
We are busy misdirecting our energies on trivial issues and foreigners are busy helping themselves on our resources.
Unfortunately we Zambians don’t just lack knowledge, but we also lack patriotism and commitment.
Amen! is it not beautiful that God’s words are alive and fresh even on this very simple yet precarious topic.Thanks for saying it the best.
We have been docile for a long time and the time has come for us to claim what belongs to us and our children in the future. We need to break the chain now by opening state mines which will offer job opportunities for our graduates and enable us to diversify into other economic sectors. Lets be serious and never again give in to the priviledged foreigners to come and cheat us with short term solutions of debt! All well meaning Zambians should join me and advise the Government above politics so that this project can get started now for the sake our innocent children who are to pay back the unsustainable debts we are surving on now.
This is common knowledge
The wet blanket approach.
People need to be and have every right to be up in arms.
This is time for action.
If we do not nationalise the mines compel them to do the following
1.Introduction of windfall tax
2.Social responsibility
3.Sponsoring clubs like football
3.Ensring that all the taxes are paid by them on accruals basis
2016 vote wisely
State run interprise can never work out because we depend on capital from the same oppressors the multnational IMF.Try to develop they will blot you out like happened to gaddafi and sudam.
I thought the money lender is the Biggest Robber of them all, ooooooooh…… what a surprise!!!!!!!!! Wake up Zambians, it’s a well known fact!
State companies will not work .they will be full of cadres . And educated cadres are worse than those at the market or the bus stop
If sata had any brains (which he sadly does not have), he should have fired Chikwanda for colluding with Mine owners against Windfall Tax.
@CHETE: I AM NOT REALLY SURE THAT THE MWANAWASA ADMINISTRATION DID ADMINISTER THE WINDFALL TAX! IF MY MEMORY SERVES WELL, THE MWANAWASA ADMINISTRATION WAS TRYING TO INTRODUCE IT AND IN FACT THE PF (IN OPPOSITION THEN) WAS PUSHING FOR ITS INTRODUCTION AND IF I REMEMBER, PROMISED TO INTRODUCE IT WHEN IN GOVERNMENT. I AM NOT REALLY SURE IF ANY SUCCESSIVE GOVERNMENT IN ZAMBIA HAS EVER INTRODUCED THE WINDFALL TAX. THE ONLY GOVERNMENT THAT HAS DONE THAT IS FROM SOUTH AMERICA – I GUESS CHILE?
Kalumba,your memory is serving you wrong!
Read this: http://www.lusakatimes.com/2013/12/10/opposed-windfall-tax-chamber-mines/
Kalumba,your memory is serving you wrong! Please search this story on Google: We are not opposed to windfall tax – Chamber of Mines. It was carried by Lusaka Times and reading it will give you an idea of when the windfall tax was introduced, how much Zambia benefited from it in one fiscal year and who shamelessly removed it.
After your memory has served you right, come back and contribute, hopefully from an informed position, not guesswork, please.
“Mr. Mutati said it was ridiculous for the MMD government under late President Levy Mwanawasa to introduce windfall tax which targeted gross revenue. He said the mining industry would welcome a windfall tax as long as it is targeting profits on a sliding scale. ”
In other words, they welcome a windfall tax that they can cheat on. A windfall tax that depends on THEIR interpretation and declaration of profits.
The nice thing abour revenues is that they are hard to cheat. You multiply the publicly traded price of copper with the amount of ore exctracted, and you have your windfall tax.
What they don’t object to, is the opportunity to cheat.
The trouble is you are all lamenting from abroad, shedding crocodile tears. Lets go and fix the mess!
You are wrong. If you are abroad yourself, don’t think we all are. I am in Lusaka. When you decide to return, you will find us. And by the way, you can also do something useful from where you are. You do not necessarily have to come here to make a positive contribution.
Just shut up you coward pretending to be in Zambia
We need to end this nonsense and get back the mines without even paying the people who bought them. The most lenient thing we can do to them is to forget all they have stolen, get back our assets without extraditing them to be jailed in Zambia especially those Indian guys boasting about how they swindled us. This is such a slap in the face. We all know mines were sold at the prices of farms in the developed world. We need to have confidence in ourselves and run our own mines otherwise people will keep on taking us for a ride in our own country. Look at what how the Biritish government is handling the Pfizer-AstraZeneca merger, they discuss job security and other important things before mergers are done, good lesson for us to involve all stake holders when making important decisions.
If that Chilli eating monkey Anil Agarwal can mock us and boast of making US$500,000,000 annually in profits after buying KCM for a song and only invest US$375,000,000 to make the mine run, then there is something seriously wrong with us the so called educated Zambians. What is it that we cannot do to run the mines and make profit that can benefit the Zambians and manage the minimum wage? Could we not have sourced the money and run our own mines? After all 95% of the works in the mines is done by Zambians.
There are alot of interesting suggestions.Perhaps we Zambians are not docile after all but how can we come together as a united voice and reclaim our land.Under what umbrella,under what forum?Will Zambians in Zambia be willing to work with Zambians abroad? United we stand divided we fall.We have to unite under the larger umbrella of Zambians regardless of ones geographical location.
busy contributing to the debate on the other hand money is being taken out.in Zambia people have good ideas they talk too much but no action.people will continue complaining in the end they will become complainers.pa zed ni imwene we mwine yalyalamuka!
Mwanawasa and his team were the most corrupt. They actions to sell all the mines and other companies for a song were deliberate. They knew what they were doing. They are part owners in these mines. As for the current government they have been compromised and are benefiting as well. That is why Mutembo Nchito is DPP and Fred Mmembe’s Post is PF Vuvuzela, it is because they want to hide these criminal acts of their God Father Mwanawasa. These are the issues that a serious government should have addressed a long time. Let’s have all IMF and World Bank agreements and letters of intent be made public. If the IMF and the World Bank were behind these criminal acts, Zambia will sue them as well together with the criminals they were working with. This Chap who is purported to own KCM, has…
This Chap, who is purported to own KCM, has publicly admitted that he got this company from Zambia for nothing and has syphoned US$13.5 billion without paying any tax. This is silly and nonsense. You dragged Chiluba to court and put his pants in public for how much. The same should happen here, this was not negligence or oversight, the entire transaction was done with the intent to defraud Zambia whether the IMF or the World Bank were involved, the intent is the same. Zambia cannot afford to bear such massive losses in excess of US$ 13.5 billion. Everyone involved should explain what tender process they used to evaluate and select this chap and how he has been monitored since then. Then the court process should take its course, but DPP Mutembo Nchito has a Conflict of interest in this case
In national interest the government must compel Vedanta to go. Apart from that also on moral grounds Vedanta must go. At whatever angle you look at it they must go.
The blame should not be on IMF and investorsc but on the Governments we have been voting.g for that lacks analytical skills and performance. Education is good but education without performance is meaningless. Zambia will only utilize it’s full potential when the people power rise up and demand what is theirs , hold the elected Governments accountable leading to a Government that fears itws people. The status quo of party carders will not let Zambia progress.
Sorry meant investors, voting and its people. Justifying the statement on education Zambia needs an educated Government that is performance driven.
Interesting remarks from everyone…It is clear now that everyone makes mistakes, of all presidents to make mistakes, LPM made the biggest one, he sold the nation to the devil by dealing with the most crooked human beings on earth…he is not here (MHSRIP) to defend himself, but I am quite sure if he came back to life he would die again because of this mistake….
Can someone dig deeper and give us the individuals who sat on the negotiation table and trace their lifestyle afterwards.
At the cost of sounding a defeatist, conspiratorial, I venture to say we still do not understand the dynamics and intricacies of the world financial systems, and the powerful forces in the background, pushing here, pressuring there. IMF & WB are just tools, a passport if you will from the finance moguls to our backyards, and if we venture to say no, our assets, countries and lives are ruined while we watch in helpless anguish until we capitulate. It’s played all over, and will continue until the world starts calling for a saviour, a “messiah” (not the Bible Messiah) to save it. No country can resist the forces represented by finance capital without devine intervation.