The Movement for Multiparty Democracy MMD says it has been vindicated that the PF/UPND pact is headed for doom.
Party National Chairman Michael Mabenga who is in Mongu to drum up support for the MMD parliamentary candidate in the Luena by-election said Zambians must now realize that the Pact has no agenda is only meant for taking over the nation for selfish reasons.

He stressed that Zambians must now make the right choice on who to vote for now that they know that the Pact has deceived them enough.

Mr Mabenga said the MMD is now even more optimistic of scooping the 2011 presidential elections with the emerging cracks in the PF/UPND pact.

His comments come in the wake of divisions that have emerged in the pact following the two parties’ fielding of separate candidate in the Chadiza and Kaoma ward elections, violating the 2009 agreement they signed not to compete against each other in successive elections.
[ QFM ]

Zambia has cut its economic growth forecast for 2010 to 5.8 percent from 7 percent due to the possibility of a sluggish global economic recovery, Finance Minister Situmbeko Musokotwane said.

The government and Bank of Zambia are also aiming for inflation of 8 percent by the end of the year, Musokotwane said in a letter to the International Monetary Fund seen by Reuters on Monday. Annual inflation stood at 7.8 percent in June, slowing steadily from double-digit rises last year.

Despite the lower economic growth forecast, outlined in the June-dated letter, senior Treasury officials said growth was likely to come in above the new forecast.

“We revised the target downwards because of the global economic crisis but agriculture and mining have performed very well and we expect to grow the economy beyond 5.8 percent,” , Secretary to the treasury, told Reuters.

In the letter, Musokotwane said growth in Africa’s biggest copper producer would be driven mainly by new investments in mining, power generation, construction and agriculture.

“As agricultural output reverts to trend levels, real GDP growth is expected to fall marginally to 5.8 percent in 2010 before rising to 6 percent thereafter,” Musokotwane said.

“A number of large investments in the mining and energy sectors are expected over the medium-term.”

Musokotwane also said Zambia would start financing talks this year for the 600 megawatt Kafue Gorge Lower power project and the 120 MW Ithezi-Tezhi project. Both are expected to be completed by 2017.

Mines mothballed during last year’s global economic slump have reopened, while tourism may receive a boost in the wake of the soccer World Cup in South Africa.

Musokotwane said domestic revenues were expected to rise to 16.3 percent of GDP due partly to better tax collection and an increase in excise tax on diesel from 7 to 10 percent.

“Downside risks, however, still remain amidst uncertainties about a full-fledged global recovery in 2010 and rising oil prices,” Musokotwane said.

Musokotwane said the government would reduce its spending by 0.9 percentage points of GDP relative to 2009 to allow for more capital spending, which was expected to rise to 4.6 percent of GDP.

“The overall fiscal deficit is expected to remain at 2.5 percent of GDP, and domestic financing is expected to remain as programmed at 1.9 percent of GDP,” he said.

Musokotwane said the government’s spending plans were consistent with a year-end inflation target of 8 percent

[Reuters]

Luapula Member of Parliament (MP) Peter Machungwa has said the United Party for National Development (UPND) and Patriotic Front (PF)-Pact is doomed because there is no harmonisation of the manifesto between the two.

And Dr Machungwa has said there would be more cracks in the UPND/PF Pact as the country heads for 2011 general elections.

Commenting on the apparent crack in the PF-UPND Pact by competing against each other in Kaoma and Chadiza ward by-elections, Dr Machungwa said the developments were a clear indication that the pact was heading for a demise.

He said him and his fellow MPs foresaw that the pact would crack because none of the two leaders was ready to step aside and give chance to the other to contest the presidency.

“We knew and we have always stated right from the beginning that there is no pact. So what you are seeing is just the beginning of many more to come, especially as we head towards elections,” Dr Machungwa said.

He said it was also surprising to see that the mouthpiece of the pact, one which fully supported the pact and reported in their favour was the same paper that had stated that no true pact could be built on the shifting sands of evasions.

Dr Machungwa said UPND leader Hakainde Hichilema should have announced that he was going to contest the presidency in 2011 or that his PF counterpart Michael Sata would contest as that would have established the credibility of the pact’s existence.

He said the determinant of the pact was who was going to contest the presidency between the two leaders but that none of them was ready to step down.

The MP said the violation of their own pact agreement of not competing against each other in the by-elections was evidence enough that the pact existed only on word and was not going anywhere.

Dr Machungwa said the only thing the duo could do was to start working independently and build on what they already had because all the stakeholders knew that the parties which existed would work independently.

And Kawambwa MP Elizabeth Chitika-Mulobeka said it was just a question of time and the pact would be grounded.

“We all know and everybody is talking about it. There is no pact and there has never been one,” she said.
[ Times of Zambia ]

PRESIDENT Rupiah Banda has said he is only interested in unifying the MMD as opposed to discussing the imminent cracking of the opposition United Party for National Development (UPND) and Patriotic Front (PF) Pact.

Speaking to journalists at the Lusaka International Airport shortly before his departure for Turkey yesterday, President Banda said the preoccupation of the MMD leadership and him was to unify the party at all the levels.

Mr Banda, accompanied by First Lady Thandiwe, was seen off by Vice-President George Kunda, Information Minister Ronnie Shikapwasha, Mines and Minerals Development Minister Maxwell Mwale, Secretary to the Cabinet Joshua Kanganja and Lusaka Province Minister Charles Shawa, among others.

“Whatever is happening in the pact is not our business. Like you and I have just read that in the papers but that is not our business. What we are interested in is the unity of our party,” President Banda said.

On his trip to Turkey, President Banda said Zambia was bound to learn a lot from that country considering that Turkey’s economy was one of those emerging in the world.

For the last one year, he said Turkish President Abdullah Gul had been inviting President Banda to that country and it was, therefore, an honour for him to accept the invitation.

“As you know, Turkey is an emerging economy and I feel greatly honoured to be invited. We are going to see how we can benefit from the visit,” President Banda said.

Speaking in an interview, Lieutenant-General Shikapwasha said the MMD and the critics of the pact had been vindicated following its cracking.

[pullquote]“We have been telling them that the entire pact is a useless thing and they have not understood us,” Gen Shikapwasha said.[/pullquote]

Gen Shikapwasha said for a long time now, there had been a prediction that the pact would crack but the leaders of the PF and UPND pretended that all was well in their alliance.

“We have been telling them that the entire pact is a useless thing and they have not understood us,” Gen Shikapwasha said.

He claimed that the decision to form the pact was pushed by UPND leader Hakainde Hichilema because of his realisation that he could not stand and win an election without entering into an alliance.

“It’s Mr Hichilema who has been pushing for the pact because he knows that he has no legs to stand on his own,” Gen Shikapwasha said.

Gen Shikapwasha, who is Information and Broadcasting Services Minister, said as a result of the cracks in the pact, the MMD would emerge victorious in both the Luena and Chifubu parliamentary by-elections.

“We are going to win handsomely,” Gen Shikapwasha said.

The Electoral Commission of Zambia has set August 5 as the election date for the by-elections in the two constituencies.

[Times of Zambia]

United Party for National Development (UPND) President, Hakainde Hichilema, has accused President Rupiah Banda of finding solace in the air.

Reacting to President Banda`s trip to Turkey through South Africa, Mr. Hichilema said the President is at it again to go and dine with foreign dignitories when he has no regard for those in the country when they ask how their money is being used.

He said the President`s trip to Turkey is not necessary, adding that he must know that domestic issues take precedence to any other issues.

He accused the President of taking initiative to clean other people`s governments when his own government is filthy with all sorts of dirty.

Mr Hakainde said President Banda was supposed to stay at home and ensure that the civil servants` delayed salaries are resolved.

He added that the country expects the President to spend time supervising his subordinates to ensure that pending issues such as the underpaying of teachers and police officers are worked on as opposed to spending his time in the air.

He advised the President to reduce his trips abroad so that he could have enough time to address issues affecting the people domestically.

President Rupiah Banda is scheduled to leave for Turkey on Sunday on a trade and investment promotion visit.

President Banda, who has been invited by Turkey leader Abdullah Gul, is expected to sign a number of agreements, address the business community and tour one of the largest car manufacturing plants.

President Banda, who will be accompanied by first lady Thandiwe, energy minister Kenneth Konga, finance minister Dr Situmbeko Musokotwane, foreign affairs minister Kabinga Pande and deputy minister in the Vice-President’s office Gaston Sichilima, returns to Zambia on Thursday.

[ QFM ]