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Zambia National Union of Teachers – ZNUT has called on the government to first investigate the Human Resources (HR) officers who are responsible for the alleged issue of overpayments to teachers before before any recovery is initiated.

ZNUT spokesperson Godwin Maseka said the HR officers who credited these allowances that were not due to these civil servants should be investigated first as to why they gave allowances when they were not supposed to.

In an exclusive interview with the Zambian Business Times – ZBT, Maseka said the government should hold the idea of recovering the allowances from the affected civil servants in till  investigations are done because the thought is there is more to the recovery of the funds and why they were given in that manner.

He further added that the payroll system in the ministry of Education is porous, there is more that needs to be done. He said there is a serious mismatch. He said there is a procedure that is followed for teachers to be awarded certain types of allowances and is approved by the Head Teacher of a respective school.

The ZNUT spokeperson stated that the unions desire is for the Ministry of Education and Finance to go on the ground and ascertain the abnormalities in the education sector, so that as they sit to recover the allowances, it is well appreciated.

He has since urged the respective ministries to wait until investigations are instituted and concluded before the move to the recovery of the allowance funds is taken.

The ministry of education is on the move to recover about K209 Million that was accredited to Teachers and some civil servants as funds for different allowances among them is , housing, rural hardship, remote hardship, double class and responsibility allowances to about 9,444 civil servants in the education sector.

This issue has attracted the attention of almost all the teachers unions and they have called for the investigation of the human resource offers. Any move to recover these funds should be put on hold until investigations are instituted and concluded. Any abrupt recoveries risks affecting the general welfare and morale of various affected teachers.

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Zambia National Union of Teachers - ZNUT

Mining

Zambia National Service – ZNS has been blamed for the continued delay in the re-opening of Zambia’s second largest gold mine – Kasenseli gold mine of Mwinilunga. This is because it’s unit guarding the mine site are awaiting official communication from their high command weeks after the mines ministry gave a go ahead for re-opening.

A source who asked that their identity be withheld told the Zambian Business Times – ZBT that the ZNS unit on the site have refused to allow officials who have the official authorization from the ministry of mines to re- open the mine on grounds that only their chain of command can ask them to leave the mine not a civilian.

This means Zambia Gold Company and its officials, suppliers and support staff cannot have its personnel on site to service equipment and prepare the plant for re-opening. This is further lengthening the re-opening timelines which is resulting in further loss of production time and revenues.

The Source further told ZBT that despite the Ministry of Mines lifting the suspension of the operations the mine, the current delays to reopen is squarely because of the bureaucracy of government operations. The ZNS officers are reducing to cede control of the gold mine on account of “no instructions have come through from the –ZNS- Command”.

And when contacted by ZBT to confirm if these allegations were true, ZNS Public Relations Manager Colonel Nakazwe Chinunda confirmed that ZNS and the commander have not received official communication on the matter.

Colonel Chinundu said ZNS will wait until such a time when they will be told to move out by the high command. “ZNS does not receive direct orders from the Ministry of mines or any ministry, adding that the commander has not received any official notification on the matter.

Kasenseli Mine is said to have huge gold deposits that are key to opening up a viable revenue line for government and Zambia in terms of forex earnings. The prolonged closure has further affected announced plans by the central bank – BOZ to build gold reserves that can help the country to stabilize its local unit – the Kwacha if well harnessed.

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Zambia National Service - ZNS has been

Tech

Zambia Railways Limited – ZRL has confirmed that it does not have any plans currently to introduce electric trains in the railway transport sub-sector. This is despite the company running a system that is currently slow and needs rethinking.

Speaking in an exclusive interview with the Zambian Business Times –ZBT, ZRL Public Relations Manager Caristo Chitamfya explained that the introduction of electric trains will mean abandoning what is there which might be too expensive at the moment.

He said the Zambia Rails Limited is however working on improving the current speed and infrastructure. To bring an electric train system without sorting out what is already there may be a challenge, Chitamfya said.

“We don’t have plans now, Zambia railways is working on improving what we have now because we can’t go for an electric train when we have not sorted out what we have now, so at the moment, we working on rehabilitating what we have,” he said.

He said he was not aware if there are any plans to implement the electric trains were under the current regime. The Zambia Railways Former Chief Executive officer Professor Clive Chirwa had in February 2013 disclosed plans and designs to construct a US$1.5 billion train system in Zambia with an underground electric train rail line for passenger trains in Lusaka to decongest traffic in the city.

The Railway designs were meant to revamp the Zambian Railway sector and turn it into a modern railway system that was efficient and profitable. ZRL was also allocated part of the Euro bond funds but little was seen and heard of on how those funds were utilized.

An electric rain railways system are a climate smart and efficient and the cheapest method of transporting people and goods in the world there by promoting economic growth while cutting greenhouse gas emissions. They are a clean, cost effective  and compact way to move millions of tons of goods across countries and continents.

Fast forward to the present day, the railway system in Zambia remains largely stagnated. This is a sharp contrast with most developed countries which reveals that railway systems investments remain prioritized with most of the human and goods traffic between cities and towns done through rail.

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Zambia Railways Limited – ZRL has confirmed

Tech

The Zambia Forestry and Forest Industries Corporation (ZAFFICO) has expressed shock over the Power utility ZESCO’s stance that local companies that supply wooden poles are not able to deliver the required number, specifications and quality of poles ordered, hence the reason why the utility has opted to import the poles.

Speaking in an exclusive interview with the Zambian Business Times – ZBT, ZESCO Spokesperson Henry Kapata stated that the local suppliers [ZAFFICO and CFC] have no capacity to supply 100% of the poles order and that they are unable to meet 100% pole quality requirement standards.

ZESCO has insisted that local companies are falling short on quality and has proceeded to award the tenders to foreign firms at the expense of local and even Lusaka Securities Exchange listed ZAFFICO.

He said quality poles demand that a poles should be able to stand for twenty five years without having any challenges. “We go for quality and specifications, we may have certain local companies that are in business and if they are going to deliver poles that [are thin and] look like street pole lights, we cannot go for them. Am not saying there is anyone but specifications and quality is what will determine who to award the contract to deliver poles,” he said.

He said ZESCO will not go beyond boarders if the local are producing and delivering the quality poles. The challenge ZESCO is currently facing with the Local suppliers is that they do not meet the demand whenever they are engaged.

But when contacted by the Zambian Business Times –ZBT, ZAFFICO Public Relations Manager Ireen Chipili said she would not comment further on the matter stating that “ZESCO is an independent company and they choose which suppliers they want to deal with”.

“Am actually surprised that that the statement you got from [ZESCO] because we actually have a running contract with ZESCO since 2020 and we are still supplying them with high quality poles,” she said.

When further asked why ZAFFICO is not investing more to meet the quality specifications, ZAFFICO Public Relations Manager Chipili requested for a formal press query so that she could give more details on the matter.

Some stakeholders have accused ZESCO of deliberately coming up with some technical standards to disqualify ZAFFICO, CFC and other local suppliers in order to justify contracting firms from outside Zambia. Others say it’s because of vested interests and possible corrupt practices that may be driving some of these decisions to import when the country has huge forests to meet the entire annual ZESCO poles demand.

ZESCO is yet to issue a comprehensive statement to clear the air on what has motivated the company to proceed with the issuance of the tender to foreign firms when Lusaka Security Exchange listed companies such as ZAFFICO could meet the demand. See article were ZESCO claimed that there was lack of capacity with local firms ZAFFICO, CFC have failed to meet pole quality-specifications-zesco/

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The Zambia Forestry and Forest Industries Corporation (ZAFFICO)

Tech

One of the colleges that has been listed for forging Technical Education, Vocational and Entrepreneurship Training Authority – TEVETA registration certificates to access Constituency Development Fund – CDF has protested the report, and instead accused TEVETA of not having its correspondence and records properly kept.

Heavy Duty Operators College of Zambia has disclosed that it did not and has not receive any formal notification from TEVETA but only saw the name of institution circulating on social media along with nine (9) other institutions that

General Manager for Heavy Duty Operators College, Gift Mwandila said the statement by TEVETA was unjustified and illegal. He said the TEVETA registration certificate for his institution expired on March 31st 2022 and there was an appeal for re- registration or renewal of the certificate. What surprised us is that before the issue was concluded, our college was then listed among those colleges which are operating illegally.

In an interview with the Zambian Business Times – ZBT, Mwandila said the institution which has three (3) campuses in Lusaka, Kitwe and Solwezi has valid TEVETA registration certificate for the Lusaka campus. TEVETA then went for inspection as part of the procedure to acquiring registration certificate and it went against the institutions favor, which we later appealed and we were not given audience to be heard.

And when asked if the institution was enrolling students as early as January even in other two of its campuses that do not have valid TEVETA registration certificate, he said that the institution was receiving applications from all three campuses because they knew that the registration for the other two campuses was going to come through for it was already in the process. Mwandila added that TEVETA did not specify as of which campus was shut down since campuses are certified separately.

Mwandila said TEVETA should not have listed the institution as illegal because it is them that did not respond to the appeal by Heavy Duty Operators College. “It means we were denied justice because even when the shutdown was announced, no one came to our offices to tell us that you have been shut down”, he stated.

Heavy Duty Operators college of Zambia is among the ten (10) colleges that have been alleged to be involved in the illegal act of forging TEVETA registration certificates to access CDF funds for students. TEVETA is yet to confirm if the names of the colleges have been reported to relevant investigative and law enforcement offices. See article on https://zambianbusinesstimes.com/10-institutions-caught-forging-teveta-certificates-to-access-cdf/

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One of the colleges that has been

Agribusiness

The Food Reserve Agency-FRA has announced that it will be buying a 50kg bag of maize at K160 for the 2022 crop-marketing season, which is an increment of only K10 from last year.

FRA Board Chairperson Kelvin Hambwezya said the agency has pegged the buying price for a 50kg bag of soya beans at K550, an increase of K50 from last year’s K500 and has maintained the price of a 40 kg bag of paddy rice at K200.

Speaking during a media briefing monitored by the Zambian Business Times-ZBT, Hambwezya explained that the agency intends to purchase at least 170, 000 metric tons of maize, 1, 500 metric tons of soya beans and 1, 000 metric tons of rice.

Hambwezya noted that FRA undertook a process of crop price scenario analysis and consulted with some key stakeholders in the agriculture value chain adding that the stimulus in price will enable farmers to adequately prepare for the upcoming agricultural season and further be motivated to increase crop production and productivity.

The Board Chairperson mentioned that FRA purchased 947, 777.55 metric tons of maize valued at K2.8 billion, 121.60 metric tons of soya beans valued at K1.2 million and 656.80 metric tons of rice valued at K3.2 million in the 2021 crop marketing season.

 

 

 

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The Food Reserve Agency-FRA has announced that

Companies

Nkana Independent Member of Parliament Binwell Mpundu says the Constituency Development Funds – CDF that was awarded to different constituencies for the first quarter (January to March 2022) are yet to be utilized because there are delays from the casual approach from the ministry of local government compounded by the attached guidelines.

The Ministry of Local Government is currently under the charge of Mazabuka MP Garry Nkombo. The minister has been conspicuously silent on leading the CDF process with limited to no updates on what exactly is being done to clear the blockages.

Mpundu said that even if constituencies push for more money now, they still have not exhausted the CDF for the year 2021, projects have not yet started, Imagine that “in my constituency Nkana, that’s when they are about award the contracts for the 2021 CDF” , he started.

In an exclusive interview with the Zambian Business Times – ZBT,  the Copperbelt MP said here are two things that are delaying the process, the cumbersome procedure which has been provided for through the CDF guidelines and the inertia and casual approach by the technocrats with the mandate of executing the project.

“Me as Member of Parliament working alongside my CDF committee, we end at identifying which projects must be done and the implementation. The procurement, contract awards and the releasing of funds is entirely done by the local authority, so the delay is purely because of lack of capacity by the local authorities”, he revealed.

He further added that going forward, there is need to have an honest conversation with the Ministry of Local government to relax there guidelines so that the process becomes less cumbersome. He stated that there is also need to push the local authority to capacitate them.

Mpundu stated that because of the delays, there is definitely going to be struggle to achieve developmental targets because this time, we are implementing the 2021 projects, so there is going to be an overload.

Some stakeholders are attributing the delays in disbursements of the CDF and the excessive tax refunds by ZRA to the mines as being the main reasons for the current liquidity “no money in circulation” challenges which is leading to low demand for goods and services.

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Nkana Independent Member of Parliament Binwell Mpundu

Mining

ZCCM-IH, an investment company itself has announced that it has opted to outsource a South Africa unit of Rothschild & Co (another investment firm) to assist it with the strategic review and determination of way forward of Mopani Copper Mines – MCM.

This follows yesterday’s Zambian Business Times – ZBT article that a Mining Expert Edward Simukonda challenged the investment company (ZCCM-IH) and the Industrial Development Corporation – IDC to no wait for foreign equity partners but timely source for the required $300 million to return the Kitwe and Mufulira Mopani Copper Mines to full production.

The Mining expert challenged ZCCM IH that the $300 million confirmed to the the required amount to return the large scale copper miner to full production and start contributing to forex revenue generation for the country is not so much money that it is stretch mark for them to fail adding that ZCCM and IDC have the capacity to source that funding.

IDC and ZCCM IH have a combined huge balance sheet running in  billions of dollars that could be leveraged to timely source for the required funds and get the mine to full production. The investment company has been accused of deliberately delaying the re-investment program to facilitate the turning over of the mine from the local management team in preference to targeted foreign equity partners.

And according to a statement made available to ZBT, ZCCM-IH has laid out a longer timeline than the three months deal timelines synonymous with similar deals. ZCCM-IH which currently has no substantive CEO and being guided by board chairperson Dorika Banda has stated that the process is expected to be concluded within a period of six to twelve months, during which time Rothschild & Co’s involvement will not disrupt any business operations at the mine.

The statement from ZCCM IH did not state the fees that would be paid to Rothschilds for these services and weather these are capped since the timelines are much longer.

The new Dorika Banda led board have shown little ambition to locally run and manage both Mopani and KCM opting to initiate moves that would require the partnership or turning over the mines to foreign firms as equity partners. ZCCM IH has not stated if they are unable to raise the required funds.

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ZCCM-IH, an investment company itself has announced

Markets

Minister of Finance and National Planning Dr. Situmbeko Musokotwane says Zambia will not secure the $1.4 billion bailout package from the International Monetary Fund (IMF) by June this year as earlier anticipated.

Speaking during a media briefing in Lusaka today, monitored by the Zambian Business Times-ZBT, Musokotwane however said government is confident that it will be able to seal the deal in September this year.

The Minister explained that the failure to finalize the deal by end of June is due to government’s delay in holding discussions with the creditors which leaves less time for the creditors and the IMF board to deliberate on the matter.

Musokotwane noted that the new timeline of closing the deal mainly depends on the discussions that are starting tomorrow between government and its creditors.

“I don’t think those discussions should take more than a month but then we also have another technicality which has arisen which is that even if the discussions go very quickly, say within a month, the IMF board as I have learnt this morning are going for summer recess. They are going for holidays, there is some time that is required for the management to deliver some papers to the board members so time must be allowed from the delivery of the papers to the time that the board will sit to discuss”, he said.

He mentioned that he is optimistic that the deal will be sealed in September because all the official creditors are now on board.

Speaking at the same event, IMF Deputy Managing Director Antoinette Sayeh said it should be encouraging and motivating that Zambia’s official creditors are getting together for the first time as a group tomorrow to dicuss the debt relief they will provide to Zambia.

Sayeh said this is a big step forward and is motivated by the effort Zambia has made to address its problems.

She noted that getting the document to the board will be the next big step forward which she anticipates will happen by early August.

 

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Minister of Finance and National Planning Dr.

Agribusiness

The Cotton Board of Zambia says the increased buying price for cotton will encourage more farmers to venture into cotton production.

Mount Meru, one of the biggest buyers of cotton has announced that it will be buying a kilogram of cotton at K15, which is an increase from the K10 that was being offered last year for the same quantity.

Board Senior Inspector Nyambe Kwalombota explained that the ginners are offering K15 for a kilogram of cotton because they feel farmers have been getting low prices for a long time, which has been discouraging many farmers from venturing into cotton production.

Speaking in an interview with the Zambian Business Times-ZBT, Kwalombota said the price increase would attract more farmers to the sector, which will also increase production adding that the board is happy with the price.

He added that if more farmers are motivated to grow cotton and the production increases, more people would be able to benefit from the production in various ways.

“One ginner came up with the price and the reason was they feel the price which was being offered to the farmers was low for a long time and the sector has been going down in terms of production. The major reason they have offered a higher price is to attract more farmers, for any farmer it will make a lot of business sense to grow cotton. ”, he said.

Kwalombota disclosed that the production of cotton is expected to increase from 24, 248 tonnes which was harvested last year to around 30, 000 tonnes this year according to the figures that have been submitted by all the players in the sector.

He said the weather was favourable last year as there was slightly more rain compared to this year but the farmers tried to do a better job this year therefore the expectation that the crop will be slightly better than last year’s.

“We have fewer farmers and less hectarage planted this year but slightly a better crop as compared to last year in terms of the growth, there are fewer farmers but the crop looks better compared to what it was last year”, he said.

 

 

 

 

 

 

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The Cotton Board of Zambia says the