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Government Chief Whip Defends Speaker from Muna Ndulo attacks

Government Chief Whip Brian Mundubile says he is very certain that posterity would judge Speaker of the National Assembly Dr. Patrick Matibini very FAIRLY on allegations being levelled against him by Constitutional Lawyer Muna Ndulo who alleges that he, the Speaker made a statement that he reserves powers to interpret the Constitution within the confines of the operations of the Legislature and that the Constitutional Court can not tell him what to do.

Mr. Mundubile says he had had the privilege of reading the ruling by Speaker Matibini where he said on page 47 that he, the Speaker may be required from time to time to interpret the laws of the land in general and the Constitution in particular at least in so far as they relate to the functioning and management of the National Assembly.

He said there was nowhere in the entire ruling where Dr. Matibini made the statement as alleged by Muna Ndulo.

The Chief Whip said, at page 50 of the ruling, Speaker Matibini said ” the actions and decisions of the National Assembly as well as that of the Speaker and other Presiding Officers are subject to Judicial review”

Hon. Mundubile explained that here, the Speaker relied on two cases, first the case of the Attorney General and the Speaker of the National Assembly v Ludwig Sondashi (2003) Z.R 42 and the second being the case of the Attorney General and the Speaker of the National Assembly v the people (1999) Z. R 186.

Mr. Mundubile who is also the Mporokoso law maker and PF Chairman for legal, in exonerating Speaker Matibini said the allegations being levelled against him are not true according to the ruling and said he was certain that posterity would judge Dr. Matibini fairly.

Zambia has made significant strides to transform its economy through use of technology-World Bank Group

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The World Bank Group (WBG) says Zambia has made significant strides to transform its economy through use of technology and that the application of various digital platforms in national economic governance had set the country on a path to attaining its economic goals as set out in Vision 2030.

According to the World Bank report released in Washington D.C June 24 entitled “Accelerating Digital Transformation in Zambia: Digital Economy Diagnostic Report”, Zambia’s progress in digitizing national development programmes through SMART Zambia deserved commendation. The strides have since seen Zambia now rank now among the top 10 in the least developed countries category of the E-Government Development Index published by the United Nations.

In a statement released to the media by Mr. Eric Mwanza, the First Secretary – Press and Plubic Relation at the Zambian Embassy in Washington D.C, the 152-page WBG report assessed Zambia’s strengths and weaknesses with respect to five pillars that together formed the foundation upon which the benefits of digital transformation could be realized. These pillars are Digital Infrastructure, Digital Skills, Digital Entrepreneurship, Digital Platforms, and Digital Financial Services.

According to the report, once these services are fully optimized, they would bring about increased efficiency in government services directed towards citizens and the business community.

“The foundation is also now in place to fully leverage digital payments in the public and private sector. This is critical today when contact-less transactions and rapid transmission of funds to the vulnerable are vital to Zambia’s COVID-19 resilience.”

Noted among the many strides made with respect to digital infrastructure, all provincial centers were now linked to the fiber backbone, and the country had a state-of-the-art data center that can be leveraged for government and commercial use. International benchmarks for affordability of broadband have also been met, and the use of mobile phones had increased significantly, reaching 15.5 million mobile subscriptions in 2019, out of which 63.5 percent use broadband.

“The digital infrastructure foundation has thus been built to now focus on the use of the infrastructure, as well as on ensuring the reliability and security of the infrastructure that is in place.”

Substantial progress was also reported to have been made to digitize government salary and pension payments; gains in government-to-business and government-to-government payments; digitizing receipts from businesses and individuals while preliminary data from the digitization of government pay slips showed that transaction costs decreased by 85 percent and several “ghost” workers were identified and removed.

The report recommended that government develop a digital transformation strategy with a dual focus on meeting the 7NDP targets and improving the country’s fiscal space.
“This recommendation is closely aligned with the “doing more with less” mantra introduced by H.E. President Lungu, and it emphasizes the use of digital technology to improve (1) public sector efficiency and effectiveness, (2) private sector productivity, and (3) accountability across both the public and private sectors.”

Noting that digitization was not without risks, the report recommended that Zambia strengthen its cyber security and consumer protection measures.

The report was developed in collaboration with Cabinet Office, seven-line ministries and hundreds of representatives of the Zambian public and private sector.

Bill 10 has not Died, it’s Alive and will be Debated by MPs-Inonge Wina

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Vice President Inonge Wina says Constitution Amendment Bill number 10 of 2019 has not died a natural death as insinuated by the opposition UPND.

Mrs Wina says the Bill 10 is alive and will be debated during this same sitting of Parliament as agreed by Members of Parliament from both the opposition and the ruling party.

She assured that the Bill is alive and will be debated accordingly despite it lapsing on 4th June 2020.

Mrs Wina was responding to Lufwanyama Member of Parliament Leonard Fungulwe who wanted to know whether government will consider taking Bill 10 back to the stakeholders particularly the three Church Mother Bodies now that it is dead.

She has advised the opposition to desist from politicizing important matters such as the Constitution amendment process.

Minister of Justice Given Lubinda on Thursday deferred the tabling of Bill 10 of 2019 in parliament for second reading to a later date to accommodate the views of the opposition.

The Bill will however be considered on a later date during this meeting of the house, the Minister said conceding to a suggestion by Leader of the opposition Jack Mwiimbu in a meeting convened by the House Business Committee to hive off Bill 10 from the order paper until there is some semblance of normalcy in the system.

Presenting a Ministerial statement in Parliament, Mr Lubinda said he has been persuaded not to give the opposition another reason for them to claim that their concerns were not heard.

He expressed hope that all MPs will acclimatize themselves to the new normal parliament environment before they engage in debating bill 10 to avoid any room for speculation and suspicion arising from handling the document.

Mr Lubinda said Government wants to avoid a situation where people claim they did not understand what was happening when they were debating or voting for Bill 10.

With High Poverty Levels , President Edgar Lungu and the PF have no moral right to claim Petauke as their bedroom

UPND Leader Hakainde Hichilema says President Edgar Lungu and the Patriotic Front have no moral right to claim Petauke in Eastern Province as their bedroom.

Mr Hichilema has bemoaned the high poverty levels in Eastern Province particularly Petauke where President Edgar Lungu comes from.

The UPND Leader said like he cannot claim to own Choma in Southern Province as his political bedroom, President Edgar Lungu should also desist from claim Petauke as his stronghold because he has failed to take development to the area.

Mr Hichilema said Petauke is also his stronghold and belongs to every Zambian.

He said once voted into Office, he will ensure that Civil servants are taken care of, youths given jobs and medicines supplied to the hospitals.

He said it is shocking that the President and his PF administration have failed to deliver a good road network which is key to developing the nation.

The UPND President was speaking when he featured on radio Explorer via phone.

Mr Hichilema who has been critical of PF corruption admitted that development follow where there is a good road network.

He said the UPND Government will ensure that rights amounts are paid for road construction and other resources channeled to other sectors such as education, health and agriculture.

Mr Hichilema has also promised to develop the agriculture sector which he said has potential to reduce poverty at household level not only in Eastern Province but the whole country.

Casualization and poor salaries of contract workers at ZAFFICO

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By Musyani Siame

Casualization of graduate workers on short term contracts has reached unprecedented high levels at ZAFFICO and is awfully going against labor laws. The fundamental question is, how long is a person supposed to work under contract before being placed on permanent position at ZAFFICO?

In trying to synthesize and demand for answers to the prelude question, I must state that this volume is a continuation of the first titled ‘zero occupational health and safety and workers abuse at ZAFFICO’ which was published on Lusaka Times on June 9, 2020. I brought out many burning yet necessary issues ranging from lack of safety of workers to abnormal work targets to workers abuse at the corporation. Furthermore, although the first volume was characterized more by emotion than reason, I focus this volume on pushing the hidden issue of undesirable casualization at ZAFFICO into the limelight.

Zambia has only two institutions which train foresters: Zambia Forestry College under Ministry of Lands and Natural Resources and the Copperbelt University. ZAFFICO and Forestry Department are the major employers of forester graduates. However, the number of forester graduates without jobs has been on the increase since 2002 when government last employed massively. The situation proliferated to extreme casualization at ZAFFICO and other big organizations. I must confess that casualization has created the atmosphere of abuse of graduate workers especially those on short term contracts. Therefore, I find it attractive to raise some concerns and consequences. I additionally contend that while ZAFFICO cannot do without these foresters on contracts, it has paid very little attention to their salaries and terms of conditions which are very bad.

Workers are consecutively given one month casual contracts for years. This type of contract is for non-graduate field workers who do the actual manual work in the field earning about K50 per day. This is a starting point of casualization and graduate workers abuse. For instance, workers under contract are ill-treated by making them stay on a one-month casual contract for so many years before moved to the next position of a field supervisor and be placed at least on a one-year contract. If not, one has to know someone who knows someone with influence in the corporation (connections).

It is sad that the graduate workers on contracts are poorly paid as compared to permanent workers and in relation to the amount of hard work they offer to ZAFFICO. Field supervisors and others on contract are in fact regarded as the tools of the corporation. Moreover, they are squarely abused as they are given abnormal work targets to attain without safe working conditions.
And Perhaps more prominent, is the huge difference in salaries and terms of conditions between permanent workers and contract workers at the corporation. It is so displeasing that permanent workers get paid almost 3 times the salaries of contract based workers at the same level and yet in reality, contract workers do more work in the field. In plain fact, this is evil and mockery to contract workers who are distressed, outraged, annoyed and incensed about the huge salary disparities at ZAFFICO.

There must be uniformity of treatment between the two types of workers. The corporation must strive to strike a balance between contract and permanent workers and treat all employees in the same fashion. Both permanent and contract workers must be paid same salaries and be given the same working conditions without favoring one type. Nevertheless, obtuse disparity in salaries at ZAFFICO is a diseases needing sufficient treatment. The current dogmatism towards contract workers has potential to exacerbate frustration and compromise productivity. Contract workers deserve a decent pay too.

The dramatic events of high casualization, poor salaries, abnormal workload and poor terms of conditions at ZAFFICO have been going on for a long time and have been marked with some of the worst abuses of workers on contracts. I would also note that hardworking of workers on contracts is the least prized virtues at ZAFFICO because work culture allots much greater penalties and warnings for failure than rewards for success. The truth of the matter is that; the corporation has capacity to absorb all the graduates working on casual and short term contracts. ZAFFICO continues to reap huge benefits at the expense of these graduates who are poorly paid, over exploited and without offering them permanent employment for years.

Mostly, ZAFFICO places its workers on one-month contract and or one year contracts for a very long time some as long as six years or more making the cooperation to seem immune to labor laws. Going forward, people are not going to continue celebrating the achievements the cooperation is making while undermining workers on short term contracts. We cannot afford to sit and see fellow foresters becoming the sacrificial lambs of the corporation. There is high need for sanity and hygiene at ZAFFICO before it can even officially go public.

The corporation must start respecting labor laws and uplift the plight of hard working foresters particularly those on contracts. The cooperation must not continue to hang graduates simply because they have nowhere to go and look for jobs. Casualization and workers abuse must be overturned and put to an end. The vices of ill-treating casual and contract workers in the name of compassionate must be stopped. These workers deserve better terms of conditions and salaries as those on permanent basis. Moreover, the cost of putting contract workers on permanent jobs is not even a big issue because the corporation has enough money. The big issue is with the management trying to minimize the operation cost unnecessarily.

Besides, President Edgar Lungu in 2015 signed into law the amended Employment Act No. 15 Cap 268 of the Laws of Zambia which makes casualization and unjustifiable termination of contracts of employment illegal. government banned casualization and unjustified termination of employment but the case is different with ZAFFICO. It still has a huge workforce of graduate casual workers who are paid poor salaries. the amended Employment Act into law meant that it is illegal for any employer (ZAFFICO) to engage an employee (contract worker) on a casual basis for any job which is of a permanent nature yet the corporation is not following such regulations. Instead, it is capitalizing on the vulnerable graduates by offering them casual jobs on short term contracts for too many years. The implication is that these workers have no say regarding the circumstance, there have no job security as their contracts are unjustifiably terminated at any time and they have for a long time, suffered exploitation and abuse of their rights.
Once more, casualization at ZAFFICO has propagated high worker turnout. Since there is no employment security, contract workers are unjustifiably dismissed citing many reason such as failure to meet the abnormal work targets in silviculture section, failure to account for logs in logging section, failure to suppress fire in fires section and many more. The corporation has nothing to lose in terms of contract breach and compensations to dismissed workers and this has amplified rampant casualization. However, the case is different with permanent workers who are just transferred to other stations or departments without being dismissed because of job security.

That being said, the status quo of contract workers at ZAFFICO is bad as if they do not subscribe to a union. Each time the union go to represent workers in meetings, it always sides with the corporation management and biased towards permanent workers. Such are the characteristics of the weak union as a whole because it fails to represent the real issues its members are facing such as poor salaries, abnormal work targets and imbalance of working terms of conditions. These workers pay subscription fee to the union every month yet do not get value for their money. On one hand If the situation endures, I would suggest that another separate union be formed for contract workers in order to have a balance of representation between contract workers and permanent one. While on another hand, I suggest the criteria for choosing union leaders be changed so to get firm unionist to stand with the employees and not the management.

As a matter of observation, it is unnecessary for ZAFFICO to have a Business Development as a directorate because the corporation does not have market competition for it its products. The directorate is a huge cost and a share waste of resources for the simple reason that ZAFFICO purely operates in a monopolistic manner. No other company supply round wood like ZAFFICO and if there is any, it is insignificant. In fact, the demand for round wood is always more than the supply which, in my simple understanding, does not need Business Development section to function as a directorate. The fact is other products other than round wood are secondary such as tea, seedlings and poles which are actually at infant stage. And of course not forgetting ‘Mukula’ tree which is highly political. So, there is totally zero competition and as such, I see no reason why Business Development should be given a directorate status at ZAFFICO. Arguably with all due respect, let the Business Development directorate be reduced to the level of a subsection and be headed by the Assistant Manager of some sort who’s at same level as Fire Control Officer (FCO) and not a director. The resources committed to servicing the directorate can therefore be channeled to revising, readjustment and improving salaries of contract workers and equalize them with those of permanent workers.

In sum, ZAFFICO is big and as it continues to expand, workers on contract becomes an integral part of the corporation and they deserve to be treated as important assets and be subjected to the same terms of conditions of permanent workers. This is not much to ask for because the corporation has capacity to employ all the workers on contract and still operate normally going by its cash flow or cost and benefit analysis. Most importantly, it is my hope that the challenges facing contract workers highlighted in this volume will be considered without any emotions but reason as this is not war to malign the corporation but a route in pursuit of amicable and desirable solutions to the challenges.

The author is an environmental and water consultant

President Lungu pledges K1 million towards the construction of Catholic Boys’ Boarding School

President Edgar Lungu has pledged K1 million towards the construction of Catholic Boys’ Boarding School under the Archdiocese of Lusaka in Njolwe, Chongwe District.

The Head of State has urged the corporate world to follow suit and contribute towards the construction of the Boarding school.

He said to achieve success, collective effort is required hence the need for the private sector and individuals to support the project.

Officiating at the Ground Breaking Ceremony of the school today, President Lungu paid tribute to the Catholic Church for the role it has continued to play in the development of the nation.

He said since the day the Catholic Church set foot in Zambia, they have not only brought Christianity but continue to deliver development in collaboration with government to the people.

President Lungu has encouraged the private sector to, therefore, partner with the church in delivering developmental projects to the Zambian people.

And Archbishop of Lusaka Alick Banda expressed gratitude to President Lungu for the support towards the project.

He said the future of the Church in Zambia does not lie in international aid but within individuals and projects.

Opposition UPND Vows to Block Bill 10 from being Debated in Parliament

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The opposition UPND has vowed to block Bill 10 from being debated in parliament after Justice Minister Given Lubinda postponed the presentation of the Bill for second reading.

The opposition Party has said that it will go to court to seek legal redress over the matter of Bill 10.

Speaking at a media briefing at the party secretariat today, UPND Deputy Spokesperson Cornelius Mweetwa said Bill 10 is dead and the PF should not dream of bringing it back to parliament.

Mr Mweetwa said other than having the numbers of Parliament, the UPND will consider the legal avenue in blocking Bill 10 in Parliament.

He said Bill 10 has two road blocks and the PF do not have the numbers to take the Bill back to parliament and there is no way it will see light of day in the house.

Mr Mweetwa said if the matter was taken to court, the UPND believe the Court will dispense justice on the matter.

Vice President Inonge Wina said in Parliament today that Constitution Amendment Bill number 10 of 2019 has not died a natural death as insinuated by the opposition UPND.

Mrs Wina says the Bill 10 is alive and will be debated during this same sitting of Parliament as agreed by Members of Parliament from both the opposition and the ruling party.
She assured that the Bill is alive and will be debated accordingly despite it lapsing on 4th June 2020.

Mrs Wina was responding to Lufwanyama Member of Parliament Leonard Fungulwe who wanted to know whether government will consider taking Bill 10 back to the stakeholders particularly the three Church Mother Bodies now that it is dead.

She has advised the opposition to desist from politicizing important matters such as the Constitution amendment process.

13 Academies Get FIFA Support

Thirteen Football Academies are set to benefit from a FIFA junior football support programme.

The academies qualified for the programme following their consistent supply of players to the junior structures of both the boys and girls Zambia national teams.

“Thirteen football academies in Zambia have been selected as beneficiaries under the FIFA Talent Development Football Ecosystem Analysis program,” FAZ spokesperson Sydney Mungala said.

“The Zambian academies will join others across the world on the project which is a Youth High Performance program.

“According to the strict selection criterion the beneficiaries were run through a seven-point process.

“Among the conditions were teams that have produced the highest number of players for the under-17 national teams for both girls and boys in the last five years. The academies also must have at least three consecutive age groups like under-12, 14 including Under 17.

“Furthermore the academies must have participated regularly in youth competitions, have a regular weekly training program, have a director coordinator) and a minimum of three coaches.

“The final criterion was the presence of a centralized training facility.

“FIFA has appointed world acclaimed Double Pass as the supervisory company for all the academies in the world.

“After the selection the next step will be for Double Pass to contact successful academies for an analysis of their operations. The online survey will reveal the level of kind of support that each of the academies requires. Support will not be uniform but tailored to the requirement of each individual academy.

“Double Pass will do a world report for all the academies across the globe with a county report available for individual nations.”

The girl’s academies are Bauleni United Sports Academy, Yasa Girls, Pataki, Choma Warriors, Queens Academy and Luyando Foundation.

The boy’s academies are Blaze Academy, Athletico, Morkeved, Red Arrows, Kafue Celtic, Modern Skills Academy and Superade Academy.

Napsa Stars Coach Fathi Looking Forward to July Restart

Coach Mohamed Fathi hopes Napsa Stars can continue from where they left off in March following confirmation that the 2019/2020 FAZ Super Division will restart next month.

Republican President Edgar Lungu on June 25 disclosed in his bi-monthly Covid-19 address that sporting activities, including football, had been given a green light to resume after three months of quarantine due to the pandemic.

Matches are expected to resume behind closed doors under strict guidelines from the Ministry of Health.

“I think it is a very good move by the President to motivate us to finish our job and we thank him very much,”Fathi said.

“We also appreciate FAZ’s efforts to see that the league finishes as every club will now have to express themselves up to the end.”

With nine games left to play, Napsa will return to action in second place with 45 points, one behind Forest Rangers after 25 and 24 games played respectively.

First and second place finishers qualify for the CAF Champions League while three and four will earn tickets to the CAF Confederation Cup.

“Our target is to play continental and book a top four position. We know what we are supposed to do and we will continue from where we ended at quarantine,” Fathi said.

Meanwhile, FAZ has proposed that teams should resume full team training two weeks before the league restarts.

Teams have currently been restricted to individual training during the lockdown that began in mid-March.
Fathi said he also welcomes the provisional law that allows an extra two substitutes during the pandemic lockdown due to the lack of match fitness.

“I think three or weeks will be good for us but if you look at Europe, despite their facilities, they know the challenges they have and that is why they have increased the substitutes to five because some players, especially midfielders and strikers, will not be 100 percent in this short period,” Fathi said.

“I hope it will be the same for us but after four, five games, I believe they will be back to full fitness.”

UK envoy praises Lusambo for his fight against Covid-19

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UK High Commissioner to Zambia Nicholas Woolley has commended Lusaka Province Minister Bowman Lusambo for his passionate fight against Covid-19.

Mr Woolley said Mr Lusambo’s spirited fight against Covid-19 provided strong leadership which was required following the outbreak of the pandemic.

He was speaking on Thursday when he paid a courtesy call on Mr Lusambo at his office in Lusaka.

Mr Woolley said the UK has been impressed by Mr Lusambo’s fight against Covid-19 which he said has helped manage the pandemic in Lusaka.

And Mr Lusambo stressed that Zambia values its cooperation with the United Kingdom.

He said the country is looking at strengthens its existing warm and cordial relationship with the UK.

Mr Lusambo said Britain’s investment in Zambia’s social sectors such as health and education has tremendously helped government deliver development to its people.

Lusambo with UK High Commissioner to Zambia Nicholas Woolley
Lusambo with UK High Commissioner to Zambia Nicholas Woolley
Lusambo with UK High Commissioner to Zambia Nicholas Woolley
Lusambo with UK High Commissioner to Zambia Nicholas Woolley

Chellah Tukuta out on bail

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The Ndola Magistrates Court has granted celebrity photographer Chellah Tukuta a K5,000 bail in his own recognisance.

Tukuta has been in police cells for 10 days moving from dufffeng police stations between Lusaka and Ndola.

In this matter, Tukuta, 34, four counts of offences, one of which is triable by the High Court.

His Lawyer Chimuka Magubbwi complained to Ndola Magistrate Misozi Banda that it has now become fashionable for the police to over hold suspects facing misdemeanor charges.

There are fears that Chellah could be rearrested on fresh charges.

There is no Sense of Justice in Zambia Anymore-Msoni

All Peoples Congress Leader Nason Msoni says there is no sense of justice in Zambia anymore.

Mr Msoni says criminals have perfected the art of protecting each other and covering the backs of their fellow criminals.

He said the criminals have undoubtedly mastered the art of securing each other from the wheels of justice via the infamous nolle.

“We are in a very precarious position as a country looking at the level of lawlessness and corruption in government”, he said.

Mr Msoni in direct reference to Health Minister Dr Chitalu Chilufyas arrest for corruption by the Anti Corruption Commission said a minister who has committed such terrible transgressions cannot reasonably be expected to remain in his portfolio after being arrested.

He noted with regret that the rule of law has irretrievably broken down in the country.

Mr Msoni has demanded for the immediate suspension or dismissal of the Minister of health Dr.Chitalu Chilufya from his government portfolio without any further delays to help protect the integrity of the ministry responsible for providing health services to the overwhelming majority of our people.

“As matters stand no donors will be willing to fund the ministry of health and as a consequence to that unfortunate situation the true victims undoubtedly will be the ordinary citizens who are hugely dependent on these government hospitals”, added Mr Msoni.

ActionAid Zambia welcomes Government’s move to cancel the Double Tax Agreement with Mauritius.

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ActionAid Zambia has welcomed the government’s move to cancel the Double Tax Agreement with Mauritius.

Action Aid Zambia Country Director Nalucha Ziba said her Organisation has for a long time been campaigning for cancellation and re-negotiation of problematic DTAs Zambia has with different countries.

She said a Double Tax Agreement or tax treaty is a legally binding agreement between states, which governs the taxation of cross- border activities; namely investments by a resident of one state in the other state, and vice versa.

Mrs Ziba said Zambia has signed DTAs with different countries such as Germany, Ireland, Norway, Sweden, Mauritius (now cancelled) to mention but a few which spell out how companies investing in a country that Zambia has signed a DTA with their country of origin should be taxed.

She has explained that if for instance, if Zambia has a tax treaty with Mauritius, therefore a Multinational Company originating from Mauritius and operating in Zambia will utilize the tax provisions in the DTA between Zambia and Mauritius.

Mrs Ziba however said that in the recent times, Tax Treaties have not only been found to be unbalanced but also a source of tax evasion by most multinational companies, denying the host countries the much-needed revenue.

“For example, some DTAs provides for as low as 0-7 percent tax rate while others have no or weaker anti-abuse provisions”, she added adding that for some time now ActionAid has been calling for revision and/or cancellation of regressive DTAs like the now cancelled Zambia and Mauritius DTA.

She said the DTA between Zambia and Mauritius provided for 0 Percent Withholding Tax on technical fees paid for technical services.

Mrs Ziba said with this provision a Mauritius based Multinational Company, would take advantage of such provisions and not pay any WHT on technical services which is currently capped at 15 percent.

“For example, if this company engaged a sister company from Mauritius to provide technical services at a cost of USD100 million. This company when making this payment (USD100 million) to a sister company will not deduct any WHT. This implies that the entire USD100 million is untaxed. On the Contrarily, if the DTA provided for 15 Percent WHT on technical fees then USD 15 million would be deducted as Withholding Tax and remitted to Zambia Revenue Authority (ZRA)”, Mrs Ziba said.

She said Action Aid conducted a study titled “Sweet Nothings” which showed how Associated British Foods operating in Zambia as Zambia Sugar Company took advantage of the international tax agreement between Zambia and Ireland to avoid large tax payments.

Mrs Ziba said Zambia Sugar Company paid over US$47.6 million equivalent to about K209 billion, for management services and purchases to a fellow subsidiary called “Illovo Sugar Ireland” between 2007 to 2012.

She however said that the international tax agreement between Zambia and Ireland (before negotiation) exempted payment of Withholding Tax (WHT) for management
or consultancy services.

She said by channelling this money (USD 47.6million) through their Irish subsidiary, Zambia Sugar avoided paying an equivalent of US$7.4 million between 2007 to 2012.

“It is against this background that we commend the government for the position taken and we wish to encourage government to take a similar position over other unbalanced DTAs”, she added.

She has urged the government to ensure that an impact assessment/cost benefit analysis is done before they are signed and every five years thereafter.

Mrs Ziba said they should not follow the OECD model treaty but develop their own model adding that the government should negotiate for favorable and/or fair DTA’s Withholding Tax rates (10%-15%) which will not only promote foreign direct investment but also ensure that government collects adequate tax revenue.

Shd said all treaties should be negotiated transparently, and draft versions made available to the public prior to signature.

Government commended for deferring Bill number 10 to a later date to accommodate the views of other stakeholders

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The Young African Leaders Initiative has commended the government for deferring Bill number 10 of 2019 in Parliament to a later date to accommodate the views of other stakeholders particularly the opposition.

YALI Governance Advisor Isaac Mwanza said this is as it should be and has shown that President Edgar Lungu is a listening President.

Mr Mwanza said a lot of Parliamentarians were not comfortable debating Bill 10 in Parliament because most of them especially the opposition had not adapted to the new normal environment at Parliament.

He has explained that the deferment however does not mean that the Bill has been shelved as it will be debated at the later stage of Parliament in this same sitting.

Mr Mwanza has explained that the PF government only has this session to pass the Bill in Parliament failure to which it will never be brought back in the house because the rules might not allow them to do so.

He has urged parliamentarians from both sides to debate Bill 10 when it is brought back in the house for the benefit of the people.

Minister of Justice Given Lubinda on Thursday deferred the tabling of Bill 10 of 2019 in parliament for second reading to a later date to accommodate the views of the opposition.

The Bill will however be considered on a later date during this meeting of the house, the Minister said conceding to a suggestion by Leader of the opposition Jack Mwiimbu in a meeting convened by the House Business Committee to hive off Bill 10 from the order paper until there is some semblance of normalcy in the system.

Presenting a Ministerial statement in Parliament, Mr Lubinda said he has been persuaded not to give the opposition another reason for them to claim that their concerns were not heard.

He expressed hope that all MPs will acclimatize themselves to the new normal parliament environment before they engage in debating bill 10 to avoid any room for speculation and suspicion arising from handling the document.

Mr Lubinda said Government wants to avoid a situation where people claim they did not understand what was happening when they were debating or voting for Bill 10.

Zambia creditors call for IMF plan to anchor debt overhaul

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Zambia’s newly-formed creditor group is encouraging the government to bring a planned debt overhaul under the scope of an International Monetary Fund bailout, to help put the nation’s public finances on a sound footing.

The government in Lusaka should vet its reform plans with the Washington-based fund and unlock aid to help finance projects to support an economic recovery, according to a representative of investors holding about a third of the nation’s dollar bonds.

Talks between Zambian officials and the IMF started on Monday after a request for emergency funding was sidelined due to concern over the sustainability of debt.

The government has hired Lazard Ltd to advise on its debt that’s set to exceed 100% of economic output.

“You want to see a situation where the government is emerging from a crisis, not kicking the can five years down the road,” Rafael Molina, a managing partner at the creditor group’s adviser Newstate Partners LLP, told Bloomberg.

Molina declined to comment on the parameters or targets of a potential restructuring.

Zambia has about $11 billion in external debt that may be renegotiated, including $3 billion of Eurobonds.

A $750 million note is set to mature in Sept. 2022 while $56 million in interest will fall due on July 30, according to data compiled by Bloomberg.

The notes trade at about 53 cents to 54 cents on the dollar, indicating market expectations for bondholders losing about half the value of their investments