Zambia’s information minister has dismissed accusations that a former president and the electoral commission will rig next year’s general elections to keep the ruling party in power.

Ronnie Shikapwasha told VOA the electoral commission is an independent body mandated to organize transparent elections.

“First of all, it must be dismissed with the contempt that it deserves. There is no way (former) President (Fredrick) Chiluba has nothing to do with the electoral commission, has nothing to do with the government and, therefore, he cannot be considered in any situation to do anything…the electoral commission is a high integrity organization that Mr. Lubinda is telling lies upon,” he said.

Given Lubinda, spokesman for the main opposition Patriotic Front, said Zambians will not allow former President Fredrick Chiluba, the government, and the electoral body to rig the 2011 general elections.

Lubinda has often accused former President Chiluba of rigging previous election results in favor of the ruling Movement for Multiparty Democracy (MMD).

But, information minister Shikapwasha said the accusations are preposterous.

“If he has a complaint, he should have gone ahead and tabled this complaint in order for the electoral commission and, indeed, the courts of law to deal with it in Zambia,” Shikapwasha said.

Local media quoted opposition figure Lubinda as saying, “the PF supporters have since advised their Leader, Mr. (Michael) Sata, to go on a self-imposed exile so that his supporters are left to directly deal with the ECZ (electoral commission) if they attempt to engineer the 2011 elections.”

[Voice of America]

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 nseria@bloomberg.net.

To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net.

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]