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Companies

Grant Thornton Zambia – a local unit of a leading international auditing firm engaged to verify and audit domestic payment arrears related to the supply of goods and services to the government of Zambia has also refused to comment on the legality of it’s awarded contract.

When contacted by the Zambian Business Times – ZBT, to give their side of the story, one of the employees at the firm who declined to disclose her name stated that the company was in no position to give a comment on the matter.

When asked to who at the firm could comment, that employee further said the information that no comment should be given was coming from the top offices that included the office of the Managing partner Edgar Hamuwele. Efforts to speak to Hamuwele proved futile by press time.

This is in a wake of emerging Controversy over the legality of Ministry of Finance awarding foreign owned and associated private audit firms multimillion Kwacha audit and arrears verification contracts that includes audits related to defense and security wings of Zambia.

After being asked to give a ministerial statement, Finance Minister Dr. Situmbeko Musokotwane revealed that the total contract value awarded to private audit firms is about $1 million (about K16.8 million).

Leader of the Opposition in the National Assembly Brian Mundubile and other mainly opposition members of parliament have called on the audit firms to prioritize their reputation and withdraw from these audit if they do not meet the legal test as audit firms need to safeguard their reputation.

However, the ministry of finance insists that the contracts were duly awarded despite indications from sourced at the Office of the Auditor General that they are capable of doing these audits and that there is no need to sub-contract.

Governance stakeholders say the audit firms should clear the air as their business hinges on reputation. The fact that they are even refusing or unable to comment speaks volumes as to how confident they are with the concerns surrounding these controversial contracts.

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Grant Thornton Zambia - a local unit

Companies

A local unit of an international audit firm engaged by the Zambian government to audit payment arrears relating to road contracts that has been alleged to also involve an audit related to defense and security wings has refused to comment on the question of whether the contract is valid and passes the legal test.

PricewaterhouseCoopers – PwC has been contracted by government to audit arrears on road contracts, a situation which has raised concerns with some governance stakeholders calling for full disclosure as to whether the right legal procedure was followed on the awarding of the audit contract.

Government throught the Minister of Finance stated that audit firms were engaged to verify domestic arrears are Grant Thornton – GT which has been assigned to audit arrears related to goods and services, PriceWaterhouseCoopers – PwC was awarded a contract to audit arrears related to road contracts and Ernst Young – EY was awarded a contract to audit fuel arrears.

And when contacted by the Zambian Business Times –ZBT, PwC Country Senior Partner Andrew Chibuye said he could not comment as the firm does not comment on such issues. “There is an authority that you can call that can comment, we don’t comment on these matters. There is the authority that has given a statement [Ministry of Finance]”.

Concerns were raised in parliament by mostly opposition members of Parliament who even resorted to walking out that Zambia risked its national security by engaging foreign owed or foreign associated privately owned audit firms that may end up passing on sensitive information to their foreign associates.

However, the ruling party insiders told ZBT that the opposition is against the engagement of private audit firms because they conducted some illegals deals during their time in government through that defense and security wings, and that they are afraid of the revelations that will follow.

Legal experts have told ZBT that audit firms risk losing their reputation and standing as they seem to have been caught up in some kind of political and now legal battle. They need to seek independent legal opinions and clear the air as staying quite and not safeguarding their reputation risk being misconstrued by some sections of society.

According to the Law Association of Zambia, the Auditor General can only appoint an external auditors to audit the defence forces where circumstances of an audit justify such sub-contracting, with the prior written consent of the President, authorizing access by external auditors.

In a statement seen by ZBT, LAZ President Lungisani Lungu said this is provided for under section 73(3) of the Public Finance Management Act, No.1 of 2018 and the pre-conditions are meant to safeguard national security.

Lungu stated that it is LAZ’s considered position that the subcontracting of external auditors to audit the defence forces is legal if it was done by the Auditor General following the President’s prior written consent. The confirmation that prior written consent by the Republican President is yet to be made public.

The LAZ president further stated that the Auditor General is required to satisfy the President that national security would not be compromised by the access, before the President can grant such written consent.

Other firms engaged are local and include CYMA chartered accountants that will audit arrears related to Farmer Input Support Program – FISP, Mark Daniels will audit Value Added Tax – VAT refunds and Client Focus will evaluate awards and compensation.

A source at the Office of the Auditor General – the institution that is  mandated to audit government accounts by law said it’s not correct to insinuate that the office is not capable of conducting these audits. Auditor General Dick Sichembe is yet to issue a comprehensive statement on the matter to help clear the air.

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A local unit of an international audit

Markets

Even as the Bank of Zambia – BOZ continues to hold quarterly (every three months) Monetary Policy Committee – MPC meetings and announcing a that Zambia has held its benchmark lending rate – Monetary Policy Rate – MPR at a single digit rate of 9%, the reality on the ground is that the majority of Zambian citizens are subjected to effective lending rates of between 60 to 75% per annum.

This is so because the majority of Zambian citizens and local companies are in the informal sector, and the main source of funding for both household and businesses plying their trade in the informal sector is through micro-finance institutions and independent money lenders. A random survey of the leading registered micro finance institution has revealed that the lending rates obtaining stand at between 5% to 20% per month, which builds up to an average annual lending rate of above 60% per annum.

It is from this reality on the ground that BOZ top management team has been challenged to come down their high horses and initiate reforms that will lead to the majority of Zambians who need or are raising capital from the micro-lenders access affordable and business friendly lending rates. If commercial banks lending rates are averaging about 25% per annum, with a huge spread of 16% from the MPR rate of 9%, micro lenders who access funds from commercial banks (wholesale banks) can not be realistically be expected to drop their current rates, it has to start at commercial bank level.

And a check with the Association of Microfinance Institutions of Zambia – AMIZ has confirmed that the micro finance lending rates are still very high which has been attributed to the high demand for credit coupled with low finance supply in the Zambian economy. The reality is that majority Zambians can only access credit at rates which make it impossible to solve the very problem they are obtaining credit for.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, AMIZ President Webby Mate noted that during one of the years between 2019 and 2020 the credit market monitoring report showed that of the 100% demand for loans on the market, micro-Finance institutions were only meeting 20%, meaning that, if there are 10 people applying for a loan only 2 were able to access the loan.

The call for reforms to be initiated by BOZ follows concerns by members of the public that despite the Central bank holding the benchmark lending rates at 9% for the 4th time this year, the situation on the ground, especially for the majority of citizens and local companies remains extremely challenging. Despite some notable improvement for commercial banks lending rates from about 28% to 25%, micro lenders need an even bigger drop in rates at commercial bank level for it to trickle down to micro lenders.

And commenting on these concerns, AMIZ President Mate said when it comes to retail level, each micro-financial institution has its own cost structure, credit exposure and other factors that they include in their consideration of lending interest rates that are finally offered to up-takers.

He said some of factors are structural issues which may include the cost of lending, as some micro lenders cost of operation are still very high and they need for example to leverage technology so that those costs can be brought down.

He noted that the rate at which that is happening is not to the expectation of the public as they expect that rates low, adding that unfortunately that is not what is obtaining on the ground. “So this is the sellers’ market where sellers want to maximise their game because the demand is high, so those are some of the factors that are keeping interests rates high.” he said.

He said Micro finance rates are varying from institution to institution but generally most of them would be in the range between 60 and 75% per Annam. He further explained that these are those that are regulated by the Bank of Zambia and there are those called money lenders who are outside the regulation of the bank of Zambia, these even the charge higher rates that are over 100% per annum.

Mate said there is need for financial institutions to improve their efficiency as those who are adopting technological solution are beginning to lower their rates, adding that just adopting mobile solution costs come down by about 20 to 25%.

“We also need an increase of sources of capital from financial institutions especially micro finance institutions as most of them depend on other foreign financial services providers and banks, and when the exchange rate is like the way it is now, it means their service cost on those financial facilities can be quite high.”

“The rates looks stable now but for someone who is servicing a foreign exchange denominated facility and making their money in Kwacha, then they have to covert it in dollar or euro in order to service the facility and that can also be a significant [when the Kwacha has depreciated] call.”

Mate said the supply demand issue requires government intervention as government need to study the industry and see how best they can help.  “For example the micro finance institution that is accessing the targeted medium term financing facility from the Bank of Zambia, they will borrow that facility at 9.5% plus may be 1.2% which mean they will get that money at about 11%, then they will be able to lend it at a reduced rate than their existing normal rate.”

“But of course the sentiments in the public domain is that micro finance rates are too high for the ordinary Zambians, I think that is well noted and even us, we encourage our members to begin to see how they can lower these rates to have more customers.”

He said Government should study and understand the business model and see how best they can encourage the financial institutions to make changes and lower the cost of borrowing in the economy. “Unless you understand the business model, you can continue saying lower your interest rate because some lowering the interest rate it mean collapsing because government will not cover their cost.” He said.

Lending rates in Zambia continue to be prohibitive with no sound solutions or reforms being implemented. Blame has historically fallen on the fiscal side, but even with some measures that have been put in place for now over one year, lending rates for the majority Zambians seem to remain immune. The efficacy of continued use of the MPR is now debatable if the rate continues to mean nothing for the majority of citizens. One indicator that the lending rates in Zambia are prohibitive and dysfunctional is that products such as mortgage and other long term lending products uptake or availability remains low.

High interest rates are a damper to entrepreneurship and Innovation. With the current situation were the majority Zambians are in the informal sector that are excluded from the banking system, one wonders how the country stands a chance of developing its people with lending rates of 100% per annum still prevalent and the only available source of funding.

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Even as the Bank of Zambia -

Agribusiness

The Ministry of Agriculture has confirmed that Government have issued letters of credit to all the suppliers contracted for the 2022/2023 Farmer Input Support program – FISP, which they can claim full payments once they meet the set minimum delivery conditions.

This follows reports that had earlier emerged that most of the current suppliers for Famers Input Support program – FISP have delayed to deliver their quotas because Government has not yet been paid them and are cash strapped .

Speaking in an exclusive interview with the Zambian Business Times – ZBT – Ministry of Agriculture Permanent Secretary Green Mbozi however said government has devised a way such that suppliers are paid immediately when they meet the set conditions.

Mbozi however admitted that government is still owing some Suppliers dating as  back as 2017. “We are paying off those that we are owing from 2017 up to date, off course we have all those records on our data base and everybody that we owe up to 2021, we have a record and they are the suppliers that we are paying now.” He said.

Mbozi said as of 2021, what was owed to suppliers was about K1.6 billion but with the corporation that they have had with their colleagues at the treasury, they have been paying and currently only about K200 million was owed to the past suppliers.

“We keep on paying of course you know that there are so many c from the treasury as the demands on the treasury are high but since this is our season also we have put our stake there with the treasury and I think we have been working very well and they have been financing us when they have resources.” He said.  

When asked how much has been paid for the new ones and the balance, Mbozi said, “for the new contracts,  we have not yet started paying as we only started the process of redeeming the Inputs but there are thresholds that we said only when the minimum requirements are met, suppliers may start claiming and this is known by the suppliers themselves.”

He said this was done for the new suppliers as a way of ensuring that payments are done in an orderly manner and that everyone meets their contractual obligations, adding that government decided that letters of credit be issued to all the suppliers.

“The money is there sitting in the account but we just had to issue letters of credit so that every supplier, as they finish, will have worked out modalities as soon as any supplier meets the requirement entered into in the contract, they will be paid their money.”

He said it was the government’s idea that above 75% or 80% of the money for new contractors should be paid before the end of 2023 calendar. “So yes we are paying those that we owe from the past and the new ones we have just entered into the contract will be paying as they perform on the contract.”

“Our wish is that if everything goes well, we already agreed with the treasury that we probably need to make sure that the previous suppliers are paid 100 percent so that we just remain with about  20 percent for the new contracts that we have entered into with new suppliers for this year.” He stated.

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The Ministry of Agriculture has confirmed that Government

Companies

With Zambia being self sufficient in Maize or Corn production, its always been a puzzle that the country has had to rely on imports for its cornflakes consumption.

A Lusaka based company has decided to challenge the status quo and  started making cornflakes locally using local raw materials derived from its farms and other supported small scale farmers in different parts of the country.

Located in Makeni of Lusaka, Share Africa Zambia – SAZ is a Zambian owned company that may save the country huge sums of forex and support the import substitution agenda, once members of the public support its products buy giving it  chance against international  imported cornflakes brands.

Speaking in an exclusive interview with the Zambian Business Times –ZBT, SAZ Chief Executive Officer Eddie Kasongo, said the company is proud to be a Zambian cornflakes producer and aims to be price competitive with most high-profile brands.

He said the cornflakes produced locally are Cheaper by about 20 – 30% compared to the imported products as the company does not pay import duty, transport and other expenses, savings which it’s passing on to the Zambian consumers.

When asked what motivated him to come with the initiative, Kasongo said, “basically when you have a bit of skills and knowledge and you want to give back to the community, you think of how best you can try and help, so we wanted to see how best we can help communities.”

“If you look at maize, Zambia is one of the major maize producing countries with excess maize produced every year and you find out that most of the maize is either consumed for Nsima, porridge, stock feed and less expensive things without giving the prestigious position where we can get high value product from maize, so that is why we thought about starting to make cornflakes.” He said.

“So we thought we could play a role in trying to supplement in foreign exchange savings because if we can produce the cornflakes that have been importing since time immemorial, it means that the country will save a bit of foreign exchange instead of importing something that can be easily made locally.”

He noted that most of the cornflakes consumed in Zambia were made from outside the country when the main ingredient was apparently maize which Zambia is also producing, a situation he said was robing jobs for Zambians.

“We do seed multiplication as we grow certified seed soya beans and then we thought of it would be more benefiting if we added value to some of the products that we are producing to help us be self-sustainable and continue with other programs.” He said.

He explained that the organisation was established in 2006 and primarily then it was looking at charitable activities as a way of helping some school going children adding that currently about 600 pupils are being supported in different parts of the country

He said since inception, the company has been producing a range of breakfast cereals, peanut butter among other assorted foods and it has resolved to take a milestone in cornflakes production.

He describes the market environment for his products in Zambia as average stating that there is room for the company to grow.

“We have just started and we are ramping up as the average production for the whole cereal is about 10 tonnes per day and for cornflakes the production capacity per day is about 5 tonnes.” He said.

“Then also it is job creation as every truck load that comes with a full load of cornflakes it means that the country is exporting jobs equivalent to produce that, so we are trying to see how best we can help fellow Zambians through job creations.”

“As we speak we have 42 people on permanent employment who the majority are youths and they are paying for NHIMA, pay as you earn -PAYE and NAPSA hence contributing to national development of the country.”

Kasongo said the company has four shareholders in which three are Zambians and one British national who just came in to raise a bit of capital and to give a bit of expertise in business management. For more details – contact email info@zambianbusinesstimes.com

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With Zambia being self sufficient in Maize

Companies

Controversy has erupted over the legality of Minister of Finance Dr. Situmbeko Musokotwane awarding foreign owned and private audit firms Grant Thornton – GT and PriceWaterhouseCoopers – PwC multi million Kwacha audit and arrears verification contracts that includes audits related to defense and security wings of Zambia.

The contracts have been awarded at the expense of using government’s own Office of the Auditor General – OAG, after revelations that the office is unable to conduct the required works within expected timelines. A source at OAG told the Zambian Business Times – ZBT that it’s misleading to say the OAG is unable to do the work.

The use of the Office of the Auditor General would not only have saved the government some funds as private audit firms are generally more costly, but would have ensured that access to sensitive government information is safeguarded with the audit reports rendered being reported via the established governance  channels and be made public through existing legal provisions.

Concerns were raised in parliament that Zambia risked its national security by engaging foreign owed, foreign associated and privately owned audit firms that may end up passing on sensitive information to their foreign associates.

These concerns relate to the private firms are part of a global network and their systems are that information is shared and this risks Zambia exposing its sensitive information that may in future be used against the country.

In responding to public concerns, Finance Minister Dr. Situmbeko Musokotwane revealed when giving his ministerial statement that the total contract value awarded to private audit firms is about $1 million (about K16.8 million). He Stated that a total of six audit firms and not just GT and PwC were engaged.

The Finance Minister stated that audit firms were engaged to verify domestic arrears are Grant Thornton – GT will audit arrears related to goods and services, PriceWaterhouseCoopers – PwC will audit arrears on road contracts and Ernst Young – EY that will audit fuel arrears.

Other firms engaged are local and include CYMA chartered accountants will audit arrears related to Farmer Input Support Program , Mark Daniels will audit Value Added Tax – VAT refunds and Client Focus will evaluate awards and compensation

The finance minister did not however reveal details of how much each firm contract value was but some local audit firms that were left out say the government disproportionately gave preference to foreign owned or foreign associated firms. Other concerns relate to related party transactions due to the fact that the head of state President Hakainde Hichilema once served as Managing Partner at GT.

Leader of Opposition Brian Mundubile however stated that the real issue is not the audit of arrears but the audit of defense forces, security wings and sensitive institutions by foreign owned or foreign associated private firms.

A ministry of finance source who is not authorized to speak to the press and asked for their details to be withheld told ZBT that opposition members of parliament especially from the former ruling party – PF are jittery over the audit as some of the illegal deals were done through the security wings. Efforts to get comments from the foreign owned or associated audit firms, ministries of defense and home affairs are underway by press time.

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Controversy has erupted over the legality of

Mining

Zambia’s cumulative refined gold reserves as at end of October 2022, stands at 46,200 ounces (about 1,438 kilograms) with a total purchase value of US$83 million (about K1.5 billion).

The Central bank, the Bank of Zambia – BoZ which holds Zambia’s reserves, is projected to purchase about 25,000 ounces (about 780 kgs) of Gold before the end of 2022. BoZ says as at end of October 2022, the Bank had purchased 21,000 ounces (654.2kg) of refined Gold.

In an emailed note to the Zambian Business Times-ZBT, BoZ Communications Assistant Director Besnat Mwanza, explained that the central bank purchases refined gold from Kasanshi Mining Plc on a monthly basis.

She told ZBT that as at end of October 2022, the cumulative purchase of refined gold stood at 46,200 ounces (1,438 kgs) with a total purchase value of US$83 million (ZMW1.5 billion) since inception in January 2021.

When asked what BoZ is doing to encourage buying of gold from local miners who make up the majority of the small scale miners? Mwanza disclosed that the National purchase program of gold from artisanal miners is a framework that has been developed by Government, stating that the role of the Bank of Zambia will be clearer once the framework is finalized and rolled out.

“This is a government initiative which is under development through the Ministry of Mines to formalise and support small scale mining in the gold sub-sector.” She added.

Mwanza however said the Central Bank will continue to purchase gold from First Quantum Minerals – FQM’s Kansanshi Mine where the highest amount of gold is expected to be purchased from.

Analyst say ZCCM-IH owned Zambia Gold Company indefinite closure remains a blocker to the further growth of  gold mining in Zambia. The Ministry of mines continued to kick the can down the road and it’s now about 1 year that the rich gold mine has been closed.

“As provided for in the Bank of Zambia BoZ act, BoZ is permitted to hold Gold as part of the country’s international services. In this regard, the Bank will continue to purchase Gold as this initive will help to build the level of international reserves.” BOZ told ZBT.

Mwanza said the inclusion of Gold to the reserves portfolio is further intended to diversify the asset mix in the international reserves portfolio.

Bank of Zambia Governor Dr. Denny Kalyalya has been challenged to use the current opportunity of locally existing gold to stockpile gold reserves to a size-able value of over $1 billion to have an alternative lever to fall back on in an event of steep drop in global commodity prices with Zambia still dependent on copper exports accounting for over 70% of total exports. See earlier articles on .Zambia Gold reserves build up derailed

 

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Zambia’s cumulative refined gold reserves as at end

Lifestyle

The Zambia Tourism Agency – ZTA has clarified that the 3 million tourist arrivals ‘target’ by 2024 announced by Tourism Minister Rodney Sikumba is an aspiration.

ZTA told the Zambian Business Times – ZBT after a request that a breakdown year by year from 2022 be shared on how Zambia plans to reach 3 million tourist arrivals by 2024. ZTA stated that “there is no specific breakdown on a year to year basis of the projected 3 million tourist arrivals in Zambia by end of 2024”.

Minister of Tourism Sikumba announced plans to increase tourist arrivals in Zambia to three (3) million in 2024 from the current peak of 1.2 million per annum. The Tourism ministry further stated that they  will support events that promote tourist inflows in order to help achieve the target.

When contacted to give a breakdown of the target Minister of Tourism Rodney Sikumba directed the query to the Zambia Tourism Agency – ZTA who told ZBT that the 3 million was an aspiration.

The ZTA acting Chief Executive Officer Chavunga Lungu said the figures given by the Minister is a stretch mark. He added that the aspiration will be met after we get back to what the country had in the pre-covid 19 levels before 2019

Lungu said going by that projection, it would be good for the country to get into the 1.5 million tourist arrivals at the end of 2023 so that the number can be doubled by the end of 2024.

“We are working at that particular stretch which the minister did announce and we are putting in place strategies that will ensure that we get to that number which is the aspiration of the Tourism minister.” he said.

Lungu said among other measures being put in place, is to enhance the marketing strategies and ensure that the message reach out especially to countries known as key source markets. He said these are markets that generates the big numbers in terms of tourist arrivals that the country is looking for.

He said other strategies are recommendations from government through the minister of tourism that include the waiver of visa requirements and incentives being given to tourism sector so that there is a lot of investments in the sector to help realise the numbers.

“So yes it is a stretch and is something that can be definitely be realised so that is our initiative as the country to attract tourists”. When asked if it’s right for Zambia to waive visas for countries that are unwilling to reciprocate the gesture. Lungu stated that whether those countries decides to reciprocate or not, that is not our focus for now.

We are taking the initiative as a country and we have identified certain things that we need to do which are being put into the marketing strategies and Visa waiver is definitely one of those for Zambia to attract more tourists.” ZTA told ZBT.

The acting ZTA CEO however said it is not the government’s concern on whether the 17 countries with waived visas requirements [reciprocate], stating that they are sovereign states who make decisions on their own and choose who they decide to accept [via Visa waiver] in their country or not. “So I can only give information as far as what is it that we are trying to achieve as the country which is to attract [more] tourist.”

When asked to share how much revenue loss is expected from the waiver of visa to the 17 countries announced? Lungu stated that “I do not have the figures on what the country will lose out in terms of visa fees, but from a tourism point of view, the country will have potential to attract more foreign direct investments and forex.”

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The Zambia Tourism Agency - ZTA has

Lifestyle

Questions have arisen as to whether it is morally, intellectually or socially right for Zambia to proceed with the waiver of visa requirements for citizens of countries that are unwilling to reciprocate this gesture and continue subjecting Zambian citizens wishing to visit their countries to stringent and exorbitant Visa fees.

In an effort to jump start and exponentially grow its tourist arrivals, government officials have announced the waiving of visa requirements for about 17 countries deemed to be the highest source countries for its international tourist arrivals.

Minister of Tourism Rodney Sikumba has joined the 3 million target club which also has Minister of Finance Dr. Situmbeko Musokotwane who had earlier announced a 3 million copper production target. The only difference is perhaps that Dr. Musokotwane’s announce a target achievement period  of 10 years.

His counterpart, Tourism Minister Sikumba aims to hit the 3 million annual tourist arrivals target in 3 years. Sikumba announced that his ministry plans to increase tourist arrivals in Zambia from the existing peak of 1.2 million arrivals to 3 million in 2024.

Minister of Home Affairs Jack Mwiimbu confirmed at a media briefing that Zambia has waived visa for 17 countries that include, the United Kingdom – UK, United States of America – USA, Canada, Norway, Australia and New Zealand. Others countries are, China, Japan, South Korea, the Gulf States, Bahrain, Irag, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – UAE.

But a Lusaka based immigration Consultant says the waiving of visa requirements for 17 countries is a welcome move as it will help to boost the economy from the spend expected from the increased tourist arrivals.

Reacting on the matter, Managing consultant of an Immigration consultancy firm Robson Mulawa said the waiving of immigration fees for a visa which currently stands at $25.28 would be offset by gains from increased tourist arrivals. He did not however have the number on how much revenue loss will emanate from this initiative.

Mulawa told the Zambian Business Times – ZBT that “It is okay [for government] to have waived the visa requirements, remember this has been done as a strategy to grow the tourism industry in Zambia and when tourists come in the country, they spend money and it has all the multiplier effects on the country.”

“It is a good thing and we do not need to compare what they are doing for us as it is us who are fighting to improve our own economy.” The Immigration firm Managing consultant said this has been done to increase the number of tourists coming into Zambia and when they come they spend money in the country a situation he reiterated that will help the GDP to grow.

Other experts have called on the minister of Tourism to reveal the revenue loss from this measure and advise how it will measure the gains other than just counting the number of tourist arrivals. If for instance, government currently collections as the immigration fee which currently stands at $25.28 for say 500,000 tourist arrivals, then we need to find ways to measure how these funds will be recovered.

There are also questions on the human relations principle of reciprocity, why offer citizens of a foreign country visa free access and entry into your country when they impose stringent and expensive visa requirements for your citizens? This is a moral issue that we shouldn’t  sacrifice on the table of revenue expediency

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Questions have arisen as to whether it

Lifestyle

The Zambia Police Service has disclosed that it cannot make public its findings following its investigations of the authenticity of a pornographic video clip that went viral which is alleged to involve current Drug Enforcement Commission – DEC Director General Mary Chirwa stating that the matter is before court.

Speaking in an exclusive interview with the Zambian Business Times-ZBT, Hamoonga said the matter was in court and the police can not release its report to the public. He however did not confirm if investigations have been concluded and a final report has been presented to the appointing authority.

Earlier in July 2022, a videos containing obscene materials showing a woman alleged to be Director General of the Drug Enforcement Commission Mary Chirwa emerged and went viral with calls for police to fully investigate the matter and avail the appointing authority a report to either convict or vindicate the DEC Chief.

The video was widely circulated on social media and via various WhatsApp blogs with many bloggers expressing disgust and calling for timely investigations and actions from the appointing authorities. Others called for her immediate resignation pending investigations, while others called for the sacking of the DEC boss due to the sensitivity and moral authority required in the public execution of the role.

Concerns are now emerging on blatant failures to live up to the maxim of the rule of law. Office holders for key investigative wings are required to be held by people of high moral standing. They should not just be of high moral standing, they should also be seen to be of high moral standing.

But it’s now about 3 months down the line after the Zambia Police service through its spokesperson Rae Hamoonga stated that Police were investigating the matter and the results have not yet been made public. These are some of the actions that risk resulting in loss of confidence in institutions of governance such as DEC by the general public.

Meanwhile Economic Front (EF) President Wynter Kabimba who took the matter to court said the matter is still active in court. Kabimba told ZBT that the matter is scheduled to take off on the 9th of Novermber 2022, stating that the complaint was launched after the Zambia Information and Communication Technology Authority ZICTA and the Police failed to respond.

He said the Police IG [and acting ZICTA DG needed to tell the public the truth about how far they had gone with investigations and whether they had ascertained that it was her (DEC DG Mary Chirwa) in the obscene video.

Kabimba is on record to have stated that since July 27, Zambians had heard nothing about the conclusion of these investigations but that on September 11 three women of Mindolo committed a similar offence but it was shocking that the following day they were picked despite the video being of poor quality.

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The Zambia Police Service has disclosed that