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President Rupiah Banda has arrived in Sao Paulo, Brazil for a three day State visit.The President arrived at Sao Paulo’s Guarulhos International airport at 22:51 hrs Zambian time monday.
His visit to Brazil is in response to the invitation by Brazilian President Luiz Inacia Lula Da Silva in July this year, when he visited Zambia.
Among the activities on President Banda’s programme is a visit to Dedini, a major company dealing in bio-fuels. He will also address a Zambia-Brazil business forum, which has been organized by the Federation of Industries of the State of Sao Paulo.
The President will wednesday leave Sao Paulo for the capital city Brasilia for a ceremonial welcome, and talks with President Da Silva.
President Banda is also expected to meet the President-elect, Dilma Rousseff who will be sworn-in in January next year, to become Brazil’s first female president.
During the President’s visit, Zambia and Brazil will sign more agreements, which will add to the eight agreements and two Memoranda of Understanding which the two countries signed in Lusaka in July this year.President Banda is expected to depart from Brazil on Thursday.
[ZNBC]
Murder suspect Mathew MohanBy LusakaTimes
A 31-year-old Lusaka businesswoman, Mwansa Mfula, this morning presented her testimony before the Lusaka High Court as part of the state evidence in rebuttal against murder accused Mathew Mohan during his defence.
Appearing before Supreme Court judge Gregory Phiri who sat as High Court judge, Ms Mfula narrated how police officer got the car keys to the unregistered Toyota Vitz from her at night, which is believed to have been used in the murder of Itowala.
“In November last year, around 01:00 hours, police officers came to Kabwata, my grandmother’s house to collect keys for the Toyota Vitz,” she said, adding that the police officers claimed that the car had been involved in some crime.
Ms Mfula further said when she asked the police about the nature of the crime the car was involved in, the police officers did not tell her what crime the vehicle had been used to commit.
She also told the court that the car which was purchased from a Swaziland national in 2009 was sometimes driven by her husband and further disclosed that her husband was a friend to Mohan.
Ms Mfula said the police officers who went to pick up the key from the house in Kabwata also informed her that her husband had been arrested but they did not disclose to her the charge.
She produced two photographs before the court to prove that the car in question was hers and that she had custody to the said vehicle at the time.
When being cross examined, Mfula was asked why the car was not registered and she responded saying she did not know why her husband did not register the vehicle with relevant authorities.
This is a case in which Mohan, Idris Patel and Shabia Patel are charged with the murder of Cyclone Hardware proprioter Sajid Itowala.
Zambia will not play any friendly match this month prior to traveling to the Cecafa Senior Challenge Cup, Faz has disclosed.
This follows the cancellation November 17 friendly international against Sudan set for Khartoum that fell through this week.
Coach Dario Bonetti and his team are now expected to gather this Saturday in Lusaka to begin training camp for the Cecafa Cup that will be held in Tanzania from November 27 to December 12 in Dar-es-Salaam.
However, the team might be without Israeli based midfielder William Njobvu who will miss the tournament due to injury.
Meanwhile, the Zambia Under-20 team is due to enter camp in Lusaka on Wednesday after a 24 hour delay to begin preparations for their Cosafa Youth Championship outing in Botswana next month.
PROVISIONAL CECAFA CUP TEAM
Goalkeepers: Jacob Banda (Zesco United), Raja Kola (Zanaco), Kalililo Kakonje (Clubless), Davey Kaumbwa (Green Buffaloes)
Defenders:Billy Mwanza, Nyambe Mulenga (Both Zesco United), Jimmy Chisenga (Red Arrows), Emmanuel Mbola, Hichani Himoonde (Both TP Mazembe, DRC), Davies Nkausu (SuperSport United, SA), Dennis Banda (Green Buffaloes), Stephen Kabamba (Kabwe Warriors)
Midfielders: Rainford Kalaba, Sebastain Mwansa (Both TP Mazembe, DRC), Joseph Sitali, Simon Bwalya (Both Power Dynamos), Thomas Nyirenda (Zanaco), Jonas Sakuwaha (Le Havre, France), Fwayo Tembo (FC Basel, Switzerland), Norman Munthali (Konkola Blades)
Strikers:Felix Sunzu Jnr (Konkola Blades), Emmanuel Mayuka (Young Boys, Swizterland), Roger Kola (AS Ashdod, Israel), Adubelo Phiri (Red Arrows)
A new political party called Africa’s Democratic and Economic Development Organization -Zambia Must Change Now ADEDO – ZAMUCANO which was formed last week, has officially been launched in Lusaka.
The party has adopted Change Life Zambia’s Red Card symbol as its official party symbol.
Party President Brown Kapita said he consulted widely and made an agreement with Fr. Frank Bwalya and Change Life Zambia team to use their symbol.
He said this when he launched the party.
Mr. Kapita has also promised to bring about a different kind of politics.
[ZNBC/ZANIS]
President Rupiah Banda has said the country has been robbed of a humble, generous, social, approachable and accommodating leader in the death of His Royal Highness Chief Kabamba of the Lala people, who died after a short illness in Serenje at his palace on Saturday.
Conveying his message of condolences today during the burial ceremony in Serenje through Minister of Local Government and Housing Dr. Brian Chituwo, President Banda said his government was deeply touched by the loss of Chief Kabamba who stood for development not only in his chiefdom but also the nation as a whole.
He said the late chief whose names were Kunda Mwape Sayi was a humble, generous, social, approachable and accommodating person who exhibited rare attributes in his leadership which government would want surviving chiefs in the province and beyond to emulate in order to foster development in the country.
The President said the death of Chief Kabamba who died at the age of 69, was a loss not only to the royal family but also to the Royal Establishment in Serenje district.
He said Chief Kabamba’s death brings to five the number of chiefs to pass on in the province from December 2009 having lost Chiefs Shaibila, Muchinda, Chamuka and Chibuluma of Mkushi, Serenje, Chibombo and Mumbwa districts, respectively.
He added that the late chief would be remembered for the land he gave to Serenje District Council for the purpose of extending the district town boundary and that government would forever appreciate this rare gesture.
President Banda reminded mourners that the late chief has left behind a big family that requires the support of every person in the chiefdom and beyond, and further advised them to ensure that the widow and the dependants are accorded every comfort they may require as they pass through this dark moment of mourning.
He further appealed to the Kabamba Royal Establishment to maintain peace and ensure that they handle the transition period with calm and maturity so that succession wrangles are avoided as much as possible.
President Banda said government would be sad to hear of succession wrangles in the chiefdom because the late chief preached peace and respect for the institution of the chieftaincy.
Earlier, His Royal Highness Senior Chief Mboroma of the Lala people said he was deeply saddened at the loss of his friend and colleague Chief Kabamba.
Chief Mboroma said it was sad that Chief Kabamba died shortly after the district lost Senior Chief Muchinda who died in February 2010.
He said he personally knew the late chief as a hardworking, loyal and accommodating chief who ruled his subjects with love and solidarity.
The Senior Chief urged the people of Kabamba chiefdom to look to God and maintain peace by ensuring that they choose a wise leader who will continue with the legacy of Chief Kabamba.
And His Royal Highness Chief Chibale of the Lala people in Serenje has thanked government and all well-wishers who have offered support of any kind from the time of Chief Kabamba’s death to his burial.
Chief Chibale who is also a representative of the House of Chiefs for Central Province said he was however disappointed that as big as the late chief’s kingdom was many of his subjects did not attend his funeral.
He said it was embarrassing that the people of Chief Kabamba’s chiefdom shunned the funeral of a man who led them with wisdom and love throughout his 11 years of reign.
He appealed to the Kabamba Royal Establishment to be guided by the family tree in choosing the successor so as to avoid succession wrangles.
Meanwhile, His Royal Highnesses Chief Mailo and Chieftainess Serenje have called for peace in the Kabamba Chiefdom.
The duo said the subjects should ensure that peace continues to reign in the chiefdom during the mourning and the succession periods.
They said the people must reflect on the leadership skills of the late chief and seek God’s guidance during the succession period because leadership comes from God.
The late Chief Kabamba who was born on 13th November, 1941 ascended to the throne of chieftaincy on 13th November 1999 bringing his total reign to 11 years.
He is survived by a wife, eight children, 32 grandchildren, and three great grand children
Fr. Frank Bwalya
Former Patriotic Front (PF) Secretary General Edward Mumbi has threatened to sue change Life Zambia Executive Director Father Bwalya for libel.
Father Bwalya is said to have referred to Mr. Mumbi as a crook who has been using his late brothers name as his.
Featuring on Monday Nite Live programme on QFM, Father Bwalya stated that Edward is not Mr. Mumbi’s first name, as he is Kangwa Mumbi.
The Change Life Zambia Executive Director further called on Zambians not to believe Mr. Mumbi because of his unknown identity.
Father Bwalya on the same programme challenged Mr. Mumbi to sue him on the accusations that he was making.
He added that once he is sued, it will be an opportunity to show Zambians who the former secretary general of the PF is.
Mr. Mumbi has, however, charged that the opportunity to know who Father Bwalya is has finally come, and that would be in the courts of law.
Mr. Mumbi said that he has informed his lawyers on the cause of action he is about to make.
He said that father Bwalya is now trapped and his sponsors will not be there to save him.
The Former PF Secretary General noted that father Bwalya’s sentiments lack truth as he has no dead brother by the name of Edward Mumbi.
He said that in his family, he is the only one who is known with the name of Edward Kangwa Mumbi and it is not another person’s name.
Mr. Mumbi availed his Curriculum Vitae to QFM in Lusaka today bearing the name Edward Kangwa Mumbi from the time he was at school, until his professional life.
[ QFM ]
Children performing at a function in Southern Province
Over 450 children in Livingstone have received birth certificates through the help of Save the Children Norway, Department of Registration and Ministry of Education.
And Southern Province Minister Elijah Muchima has said children need to have birth certificates which are a legal identification and a proof of their existence.
The children who received the birth certificates are from Ngwenya, Mahululu, Simonga, Twabuka ,and Chaaba areas of the district.
Mr. Muchima said government will continue educating the nation on the need to protect and respect the rights of children as provided for in the Zambian constitution.
He said it was unfortunate that many children were not registered at birth and as such forfeited their rights to protection which government was obliged to provide because there was no official record to confirm their existence.
Mr. Muchima said this in Livingstone yesterday in a speech read for him by Acting Livingstone District Commissioner Godwin Sanjase at the handover of the birth certificates to registered children in Livingstone.
He said in the absence of children’s birth data, government found it difficult to plan and monitor national policies and programs for children.
Mr. Muchima said birth registration had a number of benefits and played a key role in the prevention of child trafficking.
He, however, acknowledged that parents faced challenges such as lack of medical centres in rural areas, in their quest to register their children’s births.
But Mr. Muchima was quick to add that government would turn its birth registration policy into reality by decentralizing the issuing of certificates to provincial and district levels.
He called on more stakeholders to come on board to provide financial and technical support focusing on birth registration in the province.
Meanwhile, Provincial Child Development Coordinator, Ernest Chilufya said government’s commitment to children’s development issues was evident in its policies.
Mr. Chilufya noted that registration was an advocacy issue that had been made possible by support from line ministries such as education and department of registration in partnership with Save the Children Norway.
FLASHBACK: Some players from the Zambia National soccer team in training
FOOTBALL administrator, Simataa Simataa has said Premier Division clubs that boycotted the KCM-FAZ Premier League did not at any time discuss withdrawing players from national team duty in their quest to press for the FAZ emergency council meeting (ECM) as alleged by some quarters.
Meanwhile, the planned international friendly match between Zambia and Sudan billed for Khartoum tomorrow has been put off because of that country’s other pressing commitments.
Speaking in the wake of Zambia’s pulling out of the international friendly match in Sudan, Simataa said there had never been a call for the withdrawal of players for national duty among the clubs as being alleged by some clubs.
He said in an interview in Lusaka yesterday that the call for the ECM was meant for the dissolution of the FAZ executive and election of a new team.
The Amakumbi Stars proprietor said even when Premier League teams came on board, they only decided to boycott the remaining league games to pressurise FAZ to hold an ECM.
Simataa said there was no agreement concerning withholding of players for national duty saying, it was not part of the agenda.
“There has never been a call for withdrawal of players from national duty. From the onset, the call for the ECM was for the dissolution of the FAZ executive and the Premier Division teams came on board by boycotting league games,” the former FAZ president said.
He said there was no discussion of boycotting national team assignments even at the last meeting called by the Zambia Premier League (ZPL) which he attended in Kabwe.
Simataa blamed the FAZ secretariat staff, saying it was because of their incompetence that the friendly match was cancelled and accused some secretariat staff of taking sides in the current FAZ impasse to an extent of forgetting their roles.
“The FAZ secretariat should not blame other people for their incompetence,” he said.
And Zesco United said they released their players who coach Dario Bonetti had called for national duty.
Club secretary, Justin Mumba said Zesco allowed goalkeeper Jacob Banda with defenders Nyambe Mulenga and Billy Mwanza to attend camp for the national assignment against Sudan.
Mumba said Zesco could not stop their players from featuring for Zambia on a FIFA sanctioned day.
FAZ communications manager Erick Mwanza said in Lusaka yesterday that the Sudanese federation has advised against the friendly match and FAZ has since communicated to all foreign-based players not to travel.
“The Sudanese federation has just written to us that because of circumstances during this period they are in, it will be difficult for them to play a competitive game, so we can safely say it is official the national team will not be travelling to Sudan. With this postponement, the national soccer team’s engagements for this year have been wrapped up until next year,” he said.
And Mwanza has said that the Council of East and Central Africa Football Associations (CECAFA) developmental squad will regroup this Saturday to start preparations for the next week’s Tanzania senior challenge where Zambia plays the hosts in their opening match.
Mwanza said the CECAFA side will not play any international friendly matches ahead of the Tanzania competition because it is a developmental gathering for all national teams where future players are identified.
Zambia is among the 12 countries invited for the tournament and have confirmed their availability to the Serengeti Breweries-sponsored competition that will draw participation from Ivory Coast, Malawi and Kenya, Uganda, Tanzania, Rwanda, Burundi, Somalia, Zanzibar, Ethiopia and Sudan.
And the two under-20 national soccer teams today at the FAZ technical centre resumed training for the Botswana 3-11 December COSAFA championships and the Swaziland Southern African Development Community games that runs from13-19 December.
Former President Frederick Chiluba’s spokesperson Emmanuel Mwamba
POLICE in Lusaka has summoned second Republican president Frederick Chiluba’s press aide Emmanuel Mwamba in relation to a contempt order issued by Judge Gregory Phiri.
Mr Mwamba confirmed in Lusaka yesterday that a call out was yesterday delivered at his house at around 16:00hours and he would appear before the police as soon as he returned to Lusaka after attending to a family bereavement.
Last week Mr Justice Phiri ordered that the editor of the Zambian Watchdog and author of contemptuous articles on the site be brought before his court for contempt charges.
This followed an application by Bonaventure Mutale, the lawyer representing one of the suspects Mathew Mohan who said the analysis was prejudicial to the proceedings in court and pleaded with Mr Justice Gregory Phiri that the author and publisher be cited for contempt.
This was in a case in which Inktech Managing Director, Mathew Mohan, and his two co-accused, Idris Patel and Shabir Patel, have been charged with the murder of Cyclone Hardware Director, Sajid Mohammed Itowala.
Mr Mutale submitted that the blog-based articles, published on October 22 and November 2, 2010, were not only a serious on-slaught on the judiciary but also on the administration of justice in the country.
The first article was titled “The plot thickens” and the second one was titled “Mathew Mohan:Has his testimony done anything to the judiciary.”
Earlier, Post managing editor Amos Malupenga in his letter copied to Mr Justice Phiri and the Inspector General of Police Francis Kabonde challenged Mwamba to deny that he was the author of the said documents published on the Internet and were allegedly against The Post and other people.
Mr Mwamba had earlier refused to comment on the matter stating that he would not fall in the trap set by The Post and stated that the malicious letter from Malupenga was based on hearsay and innuendoes and the false accusations contained therein were misdirected at him.
The son of late president Levy Mwanawasa, Patrick has said he is not part of the planned legal action by his sisters against their stepmother, Maureen.
Patrick has since advised his older sister Mirriam not to rush to court but consider resolving the matters at hand in an amicable manner.
In an interview in Lusaka yesterday, Patrick said: “I don’t know what is really happening because I just heard these issues in the media. While Mirriam has the right to go to court, I think that this matter is better sorted out in a family manner.”
He charged that bickering over the matter in public was not a good thing as doing so compromised the integrity of the family.
On Sunday, Mirriam called on the Registrar of Societies to de-register the recently launched Levy Mwanawasa Foundation (LMF) if former first lady Maureen did not explain its purpose.
Mirriam claimed she was not consulted when she was made one of the board members on the foundation, which was launched after this year’s second memorial anniversary for the late Dr Mwanawasa. Mirriam has since threatened to sue Mrs Mwanawasa over the issues.
And Levy Mwanawasa Foundation Chairperson Nelly Mutti has dismissed claims by late President Levy Mwanawasa’s first born daughter Miriam, that the foundation was formed to benefit former First Lady Maureen Mwanawasa and her biological children.
Mrs. Mutti said it was wrong and unfair for Miriam to insinuate that the foundation was meant to benefit selected individuals when the objects and purposes of the foundation have been clearly outlined.
She stated that one of the major objects of the foundation was enhance and uphold the legacy of the late president and his ideologies and vision for the country.
Mrs. Mutti also said the late president believed in the Rule of Law which should be respected in his absence adding that it will be very unfair for anyone to start making profit on issues he totally disagreed with. Mrs. Mutti said this in an interview with ZANIS in Lusaka yesterday. She has since advised Miriam to remain calm and use the right channel in airing her grievances than rushing to the press.
[pullquote]And when asked on whether there are any provisions under the Zambian constitution where a deceased persons Will can be altered, Mrs. Mutti said there are such provisions as long as the applicant is aged 18 years and below.[/pullquote]
Meanwhile Mrs. Mutti, who is a lawyer by profession, has also advised Miriam and her sister Lona to engage the family on how best they can resolve their disputes regarding their late father’s estates than dragging each other to the courts.
And when asked on whether there are any provisions under the Zambian constitution where a deceased persons Will can be altered, Mrs. Mutti said there are such provisions as long as the applicant is aged 18 years and below.
She said the applicant should also prove under any reasonable doubt that he or she has not been well catered for in the Will.
Mrs. Mutti said it is from this background that the court can alter a will having fully studied the application and are convinced that the applicant has been deprived of what belongs to him or her.
Last week the late president’s daughters namely Miriam and Lona threatened to drag their step mother, Mrs. Maureen Mwanawasa to court over their late father’s estates.
The duo also called on the registrar of societies to deregister the Mwanawasa foundation on assertions that it was launched to benefit the former first lady and her biological children.
'Zambians making a difference in the middle east'.In the picture is Alexious Mulemba, Chief Information Officer of Alfahim Group “A United Arab Emirates conglomerate based in Abu Dhabi” that owns the World’s Largest Mercedes Benz Distributor and a number of Luxury 5 star hotels.(courtesy of Alexious Mulemba)
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In the picture is Alexious Mulemba on the Panel with United Arab Emirates Government Heads, discussing how Leveraging Technology has made UAE public sectors operate much more efficiently and effectively. Most government documents like Passport application, Visas, Vehicle renewal and registrations are all electronic and applied online, increasing productivity, convenience and eliminating congestion in public offices
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Alexious is Winner of the 2010 CIO Awards and has implemented a number of innovative Solutions.
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Alexious and Manda Banda, Senior Editor at a chain of Middle East Magazines.Alexious believes investing in Information Technology and innovative solutions like E-Government is something the Zambian Government should emulate to make the Zambian Public sector to be customer centric and bring in convenience to Zambian Citizens.
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A Youth club entertaining people in Southern province
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Youth club members performing a dance in Southern province
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A family in Chief Kaingu area happily display the fish they caught
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Water blues-children are pushing a drum of water for household chores
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Lake Itezhi-Tezhi in Itezhi Tezhi district
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Children learning what adults do
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Kafue flood plains
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Lake Itezhi Spill way in Southern Province
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One of the cars which was burnt during the Garden township riots
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Speaker of the National Assembly Amussa Mwanamwambwa (l) and Chief Justice Ernest Sakala during the remembrance ceremony in Lusaka
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Police officers in charge after quelling riots in Garden township
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The cenotaph before the remembrance ceremony in Lusaka
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President Banda after laying a wreath at the cenotaph
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The Zambia Army parade during the remembrance ceremony in Lusaka
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President Banda greeting Zambian war veterans after the remembrance ceremony in Lusaka
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President Banda greets Zambian scouts after he laid a wreath at the cenotaph
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UPND leader Hakainde Hichilema greeting mourners at the funeral for the late Southern Province Minister Darius Hakayobe.
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President Banda on a dais during the remembrance ceremony
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Representatives of Zambian war veterans going to lay wreaths at the cenotaph
FLASHBACK: Lusaka Mayor Robert Chikwelete loads garbage into a wheelbarrow when he re-launched the Keep Lusaka Clean campaign in Chaisa township.
The Lusaka City Council (LCC) has denied misappropriating any money meant for the construction of an elaborate drainage system in Lusaka’s Kanyama Compound.
Lusaka Mayor, Daniel Chisenga said the Council was still using the K9.8 billion it received from the Government, through the Ministry of Local Government and Housing for its intended purpose.
He said the Council was strictly following the laid down financial regulations and monitoring the disbursement of the funds and that there was no way it could misappropriate the funds.
Mr. Chisenga said this at a media briefing in Lusaka sunday.
He stated that since November last year, when the money was released to the Council, the Auditor General’s office had conducted more than one audit and that the Council took remedial measures against officers found wanting.
Mr. Chisenga said the Council also instructed management not to mix the Government grants with the other council funds, to ensure accountability and transparency.
He further said, the Council was ready for any action to be taken against it if Government and the Auditor General prove beyond doubt that there was any misappropriation of funds on the part of the local authority.
He explained that works on the drainage was progressing well, but was being slowed by the presence of heavy rocks in the area.
Mr. Chisenga said the contractor was cautious when blasting the rocks, to ensure that the houses close to the drainage system are not damaged.
President Rupiah Banda's motorcade when he arrived to officiate the remembrance ceremony in LUsaka
President Rupiah Banda says Zambia is capable of becoming a developed country if the Zambian people have confidence in what they do.
And President Banda says Zambia has got a lot to learn from Brazil, a nation that was under-developed to an industrious nation it is today.
Mr. Banda observed that the world is watching Zambia in what she is doing but expressed confidence that Zambians have the ability to turn around things using the abundant resources available.
Mr. Banda says Brazil has developed tremendously in her key sectors of the economy such as bio-fuels to become an industrious nation to what it is today largely because of the unity, hard work, huge investment in key sectors of the economy as exhibited by the Brazilians.
Mr. Banda was briefing Journalists in Lusaka today shortly before he departed for Brazil at the invitation of Brazilian President Luiz Inacio Lula da Silva.
He said there is need to invest in the agriculture, education, health and infrastructure for Zambia to rise to greater heights.
“The whole world is watching us as a country and what we have done. For example in Brazil, we are interested in bio-fuels in that country as you maybe aware that Brazil was under developed but has became an industrious nation within a short period of time,” Mr. Banda said.
He further noted that Zambia and Brazil enjoy warm and cordial relations which have lasted for many years now.
He said that though, he as a Head of State is receiving accolades from the international community on Zambia’s achievements, there is more to be done to propel the nation forward.
[pullquote]President Banda has said that PF/UPND pact leaders Michael Sata and Hakainde Hichilema who have been condemning his trips abroad would also be traveling if given an opportunity to be head of state.[/pullquote]
President Banda said Zambia needs to invest more in the agriculture, aviation, education and health sectors of the country.
He disclosed that while in Brazil he would take an opportunity to open up linkages and woo Brazilian firms to invest in Zambia to help the nation develop.
He further said that government will bring a number of airlines in the country as well as expand the Lusaka International Airport to transform and improve on it.
Meanwhile, President Banda has said that PF/UPND pact leaders Michael Sata and Hakainde Hichilema who have been condemning his trips abroad would also be traveling if given an opportunity to be head of state.
Mr. Banda said his travels to other countries have greatly benefited the nation and they were a result of Zambia being recognized and respected by the international community like Brazil and not of his own making.
“Any respected country will be invited and this is exactly what Brazil has done and I’m happy that my colleague President Lula da Silva has invited me because he promised that before he leaves office he would invite me to visit there,” the President said.
And Mr. Banda says he has also been invited by South African President Jacob Zuma in December, this year as one measure of strengthening the bilateral ties that exist between the two countries.
Mr. Banda will be in Brazil for a four-day reciprocal visit, following the invitation by Brazilian President Luiz Inacio Lula da Silva, who visited Zambia in July this year.
While in Brazil, President Banda will among other things tour Dedini, a company which is the largest bio-fuel equipment producing company in the world.
President Banda will also address a Brazil-Zambian business forum which will be held in Sao Paulo.
He will on Thursday hold talks with his counterpart, Lula da Silva, in Brasilia, the capital city of Brazil, and might later meet the President-elect.
Mr. Banda will also pay courtesy calls on the president of the chamber of senate and the president of the chamber of deputies and the Supreme Court.
The Zambian and Brazilian government will also sign at least two agreements in different fields.
Mr Banda’s advance delegation includes Minister of Foreign Affairs Kabinga Pande, Minister of Mines Maxwell Mwale, Minister of Livestock Bradford Machila and Deputy Minister of Commerce Lwipa Puma and other senior government officials.
President Banda is expected to return home on Thursday evening after concluding his visit.
Of late, the taxation of mining companies operating in Zambia has become a highly topical issue. Currently, the mining companies are reportedly taxed as follows:
(a) 3% mineral royalty on income (that is, earnings) from copper sales;
(b) 30% corporate profit tax on profits declared after deducting costs and mineral royalties;
(c) 15% variable profit tax on all taxable income (that is, profits) earned that exceed 8% of copper sales;
(d) Deduction of 25% of expenditures on machinery and equipment from taxable income per year once a mining project starts operating;
(e) 15% income tax on foreign companies and expatriate consultants providing services to locally based mining companies; and
(f) Mining companies cannot deduct from taxable income on a profitable mining site its capital expenditure on another mining site.
There is dissatisfaction among some segments of Zambian society that this taxation regime does not provide for adequate contribution of tax revenue by mining companies to the country’s coffers, and that the government should not have shelved the idea of a “windfall tax,” which would have provided for a charge on the sales of copper for every US$0.50 increase in the price of copper per pound on international copper exchanges.
The government, however, wishes to maintain the existing taxation regime in order to foster the development of the mining industry.
Clearly, the two arguments are both reasonable. But since the 20-year development agreement signed between mining companies and the Zambian government is still valid, it may not be possible for Zambia to devise a new taxation regime for mining companies without losing its credibility in the eyes of potential foreign investors. Besides, there is a risk of legal action by mining companies against the government if it seeks to institute changes to the terms of the contract.
It is always a good idea to honor contractual obligations. We still have 17 or so years to think about negotiating a new contract with mining companies. We can start thinking about negotiating a contract which will increase the mineral loyalty from 3% to 5%, reduce variable profit tax from 15% to 13%, leave the other tax provisions at current rates, and without the contentious windfall tax.
We could also provide for a mining company to deduct from taxable income on a profitable mining site its capital expenditure on another mining site in order to induce the re-investment of profits by mining companies on Zambian soil.
There is, of course, no doubt that these suggestions are going to provoke unsavory comments from those who wish to extract more tax revenues from mining companies. But more government revenues from mining taxes or any other source will not likely culminate in meaningful improvements in our people’s lives if we cannot avoid wasteful spending on unnecessary expansion of ministerial and deputy ministerial positions, excessive number and staffing of our foreign missions, excessive and costly foreign trips by the Republican president, and on sinecures like the position of District Commissioner.
In fact, additional tax revenues will just be swallowed up by expenditures on the increase in the number of parliamentarians from 158 to 280 members that is recommended by the National Constitutional Conference, and on repayments of loans secured to buy the controversial mobile hospitals and the like!
We need to go through government expenditures line by line, program by program, agency by agency, department by department, and ministry by ministry in order to eliminate unnecessary application of public resources. The savings to be realized in the process could be invested in improving education and training, healthcare services, infrastructure, and agricultural production and food security, among other essential projects and programs.
In passing, we need to be mindful of the potential for foreign companies to engage in what is referred to as “transfer pricing” when devising a taxation regime for such companies—that is, a pricing strategy which a multinational company may employ to manipulate its intra-firm transfer prices by using its transnational network of affiliates in order to achieve a revenue-shifting effect and thereby cope with high corporate taxes, high import tariffs and/or restrictions on dividend repatriation in a host country as follows:
(a) Over-pricing finished, intermediate and capital goods transferred to subsidiaries in high-tax countries so that its profits in these countries are reduced or eliminated and shifted to subsidiaries in low-tax countries;
(b) Under-pricing finished, intermediate and capital goods transferred to subsidiaries in high-tariff countries (except in the case of specific tariffs) in order to reduce customs duties to be paid; and/or
(c) Over-pricing finished, intermediate and capital goods transferred to subsidiaries in countries where dividend repatriation is restricted so that its income is unscrupulously siphoned out of such countries in the process.
President Rupiah Banda has arrived in Sao Paulo, Brazil for a three day State visit.The President arrived at Sao Paulo’s Guarulhos International airport at 22:51 hrs Zambian time monday.
