A Lusaka magistrate Court has convicted former Finance Minister Katele Kalumba together with six of his co-accused on corruption charges.

Lusaka High Court deputy director of court operations Edward Musona sitting as magistrate convicted Dr Kalumba together with his co-accused today when he delivered judgment in the long running corruption trial.

Those convicted together with the MMD national secretary are former finance permanent secretary Stella Chibanda, former finance chief economist Bede Mphande, former finance director of budget Boniface Nonde, former secretary to the treasury Professor Benjamin Mweene, former Access Financial Services Limited (AFSL) directors Faustin Kabwe and Aaron Chungu.

The corruption charges relate to the payments made to US security companies Systems Innovation and Wilbain Incorporation involving US$20 million during the time he served as Finance minister in former president Fredrick Chiluba’s Government.
[ QFM ]

Zambia’s economy may grow faster than the government forecast this year on higher copper prices and a bumper grain crop, putting the country in a good position to seek its first credit rating, central bank Governor Caleb Fundanga said.

The government may sign an agreement with JPMorgan Chase & Co. as early as this week to advise it on proceeding with the credit rating, Fundanga said in an interview yesterday in Abidjan, the commercial capital of Ivory Coast.

Zambia, Africa’s biggest copper producer, shelved plans for a credit rating in the second half of 2008 after the global financial crisis hit. Copper prices have more than doubled since the beginning of last year, while the government estimated a 42 percent surge in grain output in 2010. That could push economic growth to between 7 percent and 8 percent in 2010, compared with 6.3 percent forecast in December, Fundanga said.

“There are reasons why one should be optimistic,” the governor said. “I don’t see why in a year when we have fewer problems we should do less than a year when we had more problems.”

Zambia will probably produce a grain surplus of 1 million metric tons this year, which will be exported, boosting foreign currency earnings, Fundanga said.

Credit Rating

A credit rating will allow local companies to borrow at more favorable rates abroad, the governor said. The government hasn’t decided whether it will also use the rating to sell an international bond, he said.

“If there’s an opportunity for the government to borrow to finance critical investment in infrastructure, for example hydropower generation, roads and so forth, there’s no reason why the government can’t borrow,” Fundanga said. “Debt sustainability ratios are good right now, and our capacity to repay is very good.” Still the primary purpose of the rating is to “assist our private sector,” he said.

Angola, which vies with Nigeria as Africa’s biggest oil producer, was awarded its first credit rating of B+ by Standard & Poors and Fitch Ratings last week, paving the way for the sale of an international bond. Ghana, the world’s second-biggest cocoa producer, is also considering selling its second dollar bond next year, Deputy Finance Minister Fifi Kwetey said in an interview yesterday.

China and Copper

Zambia’s economy is benefiting from Chinese investment in its copper industry. China Development Bank Corp. will provide $5 billion of loans to companies involved in Zambia’s mining sector under an accord signed this month, the official Zambia News & Information Services reported on May 13.

Copper production is forecast to reach 1 million metric tons in 2012 from 700,000 tons this year, Fundanga said. Output was 697,860 tons last year.

[pullquote]“If there’s an opportunity for the government to borrow to finance critical investment in infrastructure, for example hydropower generation, roads and so forth, there’s no reason why the government can’t borrow,” Fundanga said. “Debt sustainability ratios are good right now, and our capacity to repay is very good.” Still the primary purpose of the rating is to “assist our private sector,” he said.[/pullquote]

The price of copper climbed to as high as $7,960.25 a ton in April, compared with $2,809.50 in December 2008.

“The key to maintaining a high price depends on growth in the key copper-consuming countries, such as China,” Fundanga said. “If China continues to grow, if India continues to grow, and countries in the euro zone can sort out their problems and start growing, that will help. They are also major consumers of our copper.”

Zambia’s Kwacha has slumped 6.6 percent this month as investors sold riskier, emerging market assets on concern the European debt crisis may stall the global recovery. The currency was trading at 5,065 per dollar late yesterday.

The inflation impact from the Kwacha’s depreciation may be limited, while exports may benefit, Fundanga said. The government is still on track to meet its goal of bringing inflation rate down to 8 percent by the end of the year, from 9.2 percent in April, he added.

“With a food surplus like that, prices will come down,” the governor said. “The trend is towards lower levels of inflation. Our target can easily be attained.”

[Bloomberg BusinessWeek]
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–Editors: Philip Sanders, Heather Langan

To contact the reporters on this story: Nasreen Seria in Abidjan at [email protected].

To contact the editor responsible for this story: Peter Hirschberg at [email protected].

The National Revolution Party (NRP) has called on President Rupiah Banda to set up a tribunal to investigate the death of late President Levy Mwanawasa.

Party Secretary General Kelly Walubita Jr told Q fm that Zambians would be interested in knowing the circumstances that led to the death of the late President.

Mr. Walubita was backing former first lady Maureen Mwanawasa that there is need to investigate the death of her husband. He said there are a lot of speculations concerning the death of Dr. Mwanawasa, adding it is incumbent upon the government to help respond to these speculations.

Mr. Walubita said there have been a lot of suspicious deaths of prominent politicians in the history of the country. He named some politicians whom he says died suspiciously as late Paul Tembo, Ronald Penza, Peter Lishika, Major Wezi Kaunda, among others who died during the Chiluba regime.

He said the death of the late President also might have been a planned one, urging the government to take seriously, the former first lady’s concerns.
[Q fm]

THE Government has criticised some opposition political parties who have continued to stay away from national celebrations even after being invited to the events.

Chief Government spokesperson Ronnie Shikapwasha said it was sad that some opposition leaders had continued to stay away and called on them to separate their differences from national activities.

Lieutenant-General Shikapwasha, who is Information and Broadcasting Services Minister, was speaking in an interview during the Africa Freedom Day celebrations held at the showgrounds in Lusaka yesterday.

Gen Shikapwasha wondered why some opposition leaders who were so vocal had failed to differentiate between political functions and national events.

“We are not bothered by the opposition staying away from national events but if they claim to be popular why have they continued to ignore such important gatherings and what assurance is there that they are not capable of cancelling such important events given a chance to govern the affairs of the nation,” he asked?
[pullquote]
Gen Shikapwasha wondered why some opposition leaders who were so vocal had failed to differentiate between political functions and national events.[/pullquote]

He said it was clear that some opposition leaders were ignorant and did not understand events such as the Africa Freedom Day, which had brought about freedom not only in Zambia but Africa as a whole.

The minister urged the opposition leaders to reflect on their action and that the MMD Government remained committed to dialogue with every person despite their status or political affiliation.

The Government would continue to embrace the peace and unity which the country had enjoyed over the years.

Tribute was also paid to political parties in the country which had showed leadership and continued to attend such events each time they were invited.

Among some notable people who attended the celebrations were former secretary-general of UNIP Grey Zulu, freedom fighter Sikota Wina and his wife Princess Nakatindi.

[Times of Zambia]

The Citizen’s Forum has challenged the ruling Movement for Multi party Democracy (MMD) it would be democratically incorrect to force president Rupiah Banda on the MMD members as their representative for the next tripartite election set for 2011.

Forum executive director, Simon Kabanda said that the MMD has a responsibility to ensure that democratic values are advocated for at every level of governance.

He urged MMD to take the leading role in upholding democracy and tolerance in Zambian politics.

Mr. Kabanda noted that ruling MMD currently has no choice but to enhance democracy in the country in oto create sanity in national politics.

He has challenged the MMD national executive committee NEC to give Zambians a chance to elect a person of their own liking rather than to impose President Banda as the party’s sole candidature for the 2011 elections.

Mr Kabanda has also noted that there is need to ensure that the ruling party takes on board observations of those holding divergent views by giving them the space to express themselves.

He has therefore called on the MMD leadership to ensure that the national convention goes on as requested by the party members and that people chose a party representative of their own.

[ QFM ]

LOSING MMD candidate in the Mufumbwe Constituency by-election Mulondwe Muzungu has petitioned the election result of United Party for National Development (UPND)’s Eliot Kamondo, arguing that the polls were marred by violence.

According to the petition lodged in the Lusaka High Court on Monday, Mr Muzungu stated that it was his prayer that it should be determined that Mr Kamondo was not duly elected and that the election was null and void.

In the affidavit verifying the election petition obtained by the Times of Zambia, Mr Muzungu said the elections were characterised by undue influence that resulted from violence and threats to life and property.

He further stated that there were rampant physical attacks on the members of the MMD and members of the general public, resulting in severe injuries to people and damage to property.

“I verily believe that as a result of the acts of violence that characterised the parliamentary by-election, members of the MMD and the general public feared for their safety while others chose to leave their residences and fled the area without participating in the said elections,” he said.

He said at a rally held on April 30, 2010, UPND president Hakainde Hichilema offered and promised to deliver 20 head of cattle to the voters in Mufumbwe as an earlier promise made to them that he would deliver the said animals if they voted for Mr Kamondo.

He said the said promise was designed to unlawfully induce the members of the public to vote for Mr Kamondo and alter their independent and voluntary decision at the polls.

Mr Muzungu in his petition also stated that on April 14, this year, Vice-President George Kunda was addressing a rally at Matushi area when a riot broke out in the area and that a 10km stretch of the Mutanda-Chavuma Road was blocked with stones and logs by UPND cadres.

Mr Muzungu said UPND cadres who were throwing stones at motor vehicles surrounded several MMD members and threatened people who were to attend the vice-president’s rally.

During the polls, Mr Kamondo polled 5,313 votes; Mr Muzungu got 5,009 votes while Steven Kamwendo of UNIP got 180 votes.