September Special Edition 2008

Zambian Airways -The Post Newspaper Matrix

Magande asks govt to fly Zambian Airways, Post newspaper buys shares
in the Airline and endorses Magande for President. A coincidence?
The meeting was on August 29. Tempers flared in the boardroom as the Zambia
State Insurance Corporation (ZSIC) Investment Committee met. The item on the
agenda was extremely controversial - the possible capital injection of US$ 4 million
dollars by the state-owned ZSIC into Zambian Airways. The owners of Zambian
Airways, JCN Holdings or more clearly, Mutembo Nchito and Nchima Nchito,
The Post Newspaper and Seaboard, want a capital injection from ZSIC in order to
improve the Zambian Airways' balance sheet. ZSIC Board Chairman retired Judge
Anderson Zikonda expressed reservations and wanted them “minuted” in very
clear terms. A man of integrity, he had told his first ZSIC board meeting when he
was appointed by Finance Minister Ngandu Peter Magande. He said he wanted
full disclosure from management when any matter is to be tabled for discussion.
Magande, whom The Post Newspaper has endorsed as the best presidential
candidate, appoints the ZSIC board. After a very long inconclusive meeting, the
investment committee referred the issue to the ZSIC Pension Fund Trustees, who rarely
meet. We understand accusations and counter-accusations flew, including allegations
were voiced during the meeting. We hear the management accounts of the airline were
not presented.
The crux of the matter is that Mines Air Services Limited, trading as Zambian Airways,
is looking for US$ 4 million in order to survive the admittedly harsh environment that the
aviation industry finds itself, worldwide. The skyrocketing fuel prices have added salt to
the festering wound at the airline. To mitigate the increased fuel costs, the airline has now
decided to be refueling their aircrafts, serving the Lusaka and Johannesburg route, in
South Africa. A wise business decision, if you ask. Other measures include hiking of the
fuel surcharge on every ticket from US$10 and US$25 on the domestic and regional
routes to US$25 to US$40 respectively. This is supposed to bring in an additional
US$400,000 in income to cushion any further fuel price shocks.
Magande asked Ministers and Government institutions to fly Zambian Airways on routes

where it operates. “I don't control travel

MMD: Rupiah v Magande for government but I control the finances

Banda is ahead with the provincial
endorsements but members are calling for
negotiations between the two front-runners to
avert a looming split
The battle line for the nomination of a Presidential
candidate for the ruling Movement for Multiparty
Democracy (MMD) have been drawn. The race
will surely be between current Vice President and
Acting Head of State Rupiah Bwezani Banda and
Finance Minister Ngandu Peter Magande. If the
provincial nominations and endorsement which
have taken place in recent weeks remain
unchanged, the RB should reserve his energies
for the bigger one. A total of fifteen candidates
have filled their nomination to be adopted as MMD
flag bearer for the forthcoming elections
Negotiations have taken place and the possibility
of a Banda Magande truce is not out of sight, at
least going by the recent political plotting. Some
party members are trying to push for a quick fix
before the National Executive Committee (NEC)
meeting slated for September 5, although others
want the meeting delayed for few days to allow for
negotiations. Whichever way, MMD cannot afford
to come out divided. From our own assessment of
the NEC list or Electoral College, Banda has a clear
inbuilt majority. Each province contributes two
members to the NEC, meaning Banda from the onset
has sixteen (16) ballots from the eight provinces that
have endorsed him. The sixteen members are
provincial chairpersons and their chairladies, who
have automatic seats on NEC. Banda ten (10) other
NEC members have also endorsed him. However,
the Magande camp has equally been busy but facing
major obstacles mainly from lack strategy. His usual
support base will also be split between himself and
two other candidates. Home Affairs Minister Ronnie
Shikapwasha and Heath Minister Brian Chituwo's
entrant into the race may weaken Magande's base.
We hear they are being talked so that they can
withdraw from the race. The endorsement and
subsequent clear insults in The Post Newspaper
have not helped matters. Many believe he is a
sponsored candidate who will be controlled the same
way a piper is to the payer. Another failed attempt,
which has dented his credentials, is the speculation
by the ex-First Lady Maureen Kakubo Mwanawasa
that he was anointed by Mwanawasa. Maureen said
her late husband wanted a younger person or his
age-mate to succeed him. But it is clear knowledge
that Magande is older than Mwanawasa. So, it could
and if it means dealing with those who will
be travelling elsewhere in another
fashion by reducing their travel budget, I
will do it because I want to make sure you
succeed. Your success is a national
success," Magande said plainly at the
launch of the business class club. The
'order' was aimed at boosting the only
Zambian owned airline, which to some
extent has changed the “the way Africa
flies”, to quote their motto. We hear The
Post Newspaper injected about US$ 3
million dollars into Zambian Airways to
take 30 percent in equity. Investrust
Chief Executive Officer Friday Ndhlovu
must be following the developments with
a keen interest after his bank syndicated
a US$ 5.5 million dollar loan, jointly with
the Development Bank of Zambia
(DBZ) and Intermarket Banking
Corporation, to finance the lease of two
737-200 series Boeing aircraft. Another
lease to be serviced by the airline is for
the two Embraer 120s with a seating
capacity of 30 passengers, bringing the
Zambian Airways fleet to six planes. It

Magande intervenes for Zambian NAPSA Justifies Gambling Pg 4

Airways Pg 2
The Magande Momentum Pg 3 UNZA Same Old Story Pg 5

Mourners Heckle Maureen Pg 3 Zambia's most educated lawyer Pg 6

Zambian Airways -The Post Newspaper Matrix
has workforce of over 200.
A team of ZSIC investment experts were flown to the United States of America to
conduct a sort of due diligence on the airline business. The team recommended
that ZSIC should invest in Zambian Airways provided that dividends to
shareholders would be paid within a period of three years after the investment.
This appears to contradict another Due Diligence Report which stated that the
airline business plan clearly indicated that dividends would only be paid after 2010
due to reinvestment. Aviation experts doubt the viability of the suggested, saying
the airline business worldwide has become too risky due to high operational costs.
The ZSIC team recommended that the Zambia State Insurance Pension Trust
Fund (ZSIPTF) with the option to collaborate with the ZSIC Life Fund or the ZSIC
GI Fund should pump in the dollars. Chief Executive Officer Mutembo Nchito
has offered to quit the position in the post-transaction era so that he remains a
director only in order to avoid a conflict of interest, according to the documents
made available to Executive Issues. The trade union members are reported up in
arms against the deal. The US$ 4 million the airline is looking for is to finance the
settlement of “outstanding leases running on the books of the company. The
objective is to eliminate the lease finance expenses that currently total US$
77,000 per month,” reads one of the Confidential Reports submitted to ZSIC. The
equity injection, the report continued, would also add US$ 1.3 million to the
balance sheet as the aircraft were revalued in December 2007 to US$ 2.65 million
each. “Upon taking up equity in the airline, ZSIC will be given an opportunity to
take up a seat on the board to look after the interests of the corporation,” the report
said. A suggestion to rotate the board chairmanship is also on the table. The ZSIC
team showered praises on the owners of Zambian Airways for having shown
commitment to the business. We hear the owners used personal funds at times to
keep the airline afloat.
Enter State-Owned DBZ, ZCCM-IH
The airline has a loan from another state-owned DBZ, which, according to our
reliable sources, has indicated a willingness to take up equity in the airline. There
is no firm decision yet on the matter at the DBZ board, but certainly discussions
have taken place around this matter. The equity participation of these state-run
institutions would certainly reduce the liabilities of the business and greatly
improve its balance sheet. But they are too controversial going by the reactions
from the business community and board members on DBZ.
The airline opened discussions with another state-run Zambia Consolidated
Copper Mines Investment Holdings (ZCCM-IH), which was interested to take
up equity in Zambian Airways. A detailed Due-Diligence Report was done, which
clearly exposed the indebtedness of the airline. We hear it was ZCCM-IH that
approached the airline to acquire equity. But the Report, which was tabled before
ZCCM-IH was a bit damning on the airline's viability. “Zambian Airways
consistently recorded losses, lacked short-term and eventual long-term solvency
and relied heavily on external financing to fund its operations,” the report said.
Zambian Airways sources say they terminated negotiations on their own but the
Report had advised the ZCCM-IH board not to proceed with the deal. “It is
concluded that the company is a financial failure. It displayed the features of
bankruptcy,” concluded the report rather harshly. Nchito declined to comment.
Zambian Airways was incorporated in 1848 as Mines Air Services Limited and
operated as a subsidiary of the defunct Zambia Consolidated Copper Mines
(ZCCM) before it was sold in a privatization deal to a Management Buy-Out
(MBO). The Nchito's entered into the airline in 2001 with an initial 15 percent
shareholding.
RB decline to meet Nchito
As the drama is unfolding, Zambian Airways Chief Executive Officer Mutembo
Nchito has tried in vain to fix an appointment with Vice-President Rupiah
Bwezani Banda through an emissary, a very reliable source said. But we
understand Banda declined saying Nchito's business partners, The Post
Newspaper, have been calling those surrounding him as “charlatans.” “The old
man refused because he doesn't want Nchito to be a charlatan. Why do they want
to meet a Judas Iscariot?” the source said. We understand the last time the airline
faced problems with authorities; Banda intervened and ordered the ministry of
transport to help resolve the matter amicably. This was after Nchito visited Banda
at his Government House to seek an intervention. Such is life!
Here They Are! The Owners
- JCN Holdings [Mutembo and Nchima Nchito] -57.5%
- The Post Newspaper -30%
- Seaboard (Owners of National Milling Corporation) -12.5%
Magande intervenes
for Zambian Airways
Finance Minister moves to save airline from paying debts
It is a pity that it has taken the death of President Levy Patrick
Mwanawasa to expose the truth of what has been going on in his 'New
Deal' administration. Zambian Airways, owned by The Post Newspaper
and the Nchito brothers has been facing major financial problems. It
owes the state-run National Airports Corporation (NAC) close to US$ 2
million in unpaid Landing and Air Navigation Fees, which it has failed to
service. “They wrote to us saying we should defer the payments to over
five years….,” a NAC senior official told Executive Issues. But Finance
Minister Ngandu Peter Magande, The Post Newspaper's Presidential
candidate, has asked the Ministry of Communication and Transport to
exercise leniency on airline because it was owned by Zambians: Note:
The Post Newspaper which has endorsed him. “Yes, I am aware of that
matter and it is being handled by officials,” said Dora Siliya, Transport
and Communication Minister. “Magande wrote a letter to Siliya asking
her to waive the payment for the NAC debt or a period of three years. We
understand NAC and the ministry officials refused to heed Magande's
plea.
The officials at NAC disclosed that Zambian Airways has been failing to
remit even passenger services charge, which the collect on its behalf
from the ticket sales. There have been attempts to close in on the airline
but there has been strong resistance. From who? “It's a sensitive
matter…” was the answer given by one senior staff who spoke on
condition of anonymity. But the bills exist and both the Public Accounts
Committee of the National Assembly and the Auditor-General will
certainly find the NAC books not balancing on this score. Transport
Minister Siliya tried to intervene in the matter in a more decisive manner
but Vice President Rupiah Bwezani Banda stopped her, according to
our sources. Siliya refused to be drawn into the argument when queried
over the matter.
MMD: Rupiah v Magande
not have been him. And the so-called 'Will” of the nation was done in
2005, way back before the 2006 general elections. Why then did he
not appoint Magande for the position of Vice President? But no one
should underrate him.
The membership of two other candidates, former Vice President's
Enock Percy Kavindele and Nevers Sekwila Mumba are likely to be
thrown out because they both got expelled when they stood as
independents. National Secretary of the MMD in June wrote to
Kavindele to regularize his membership in the party but we
understand he did not complete the process. As for Mumba, a
committee that was set up to interview him failed to show up for two
occasions, insiders say.
Wila Disraeli Mung'omba is another candidate in the race. His
opponents claim that his application letter was for MMD presidency
and not presidential candidates. Depending on the clarification, his
candidature may be referred to the National Convention if it ever takes
off. Mung'omba has already been approached by the Banda camp for
possible truce so that he can concentrate on the 2011 race. We are
not sure whether he will pull out of the race but the beauty is that he
has made his intention known that he is interested in the job. The rest
of the candidates, really, are not worthy the competing space. But it is
good to measure oneself before engaging in any game
 A Fitting Farewell to the Late President
The organization of the President's funeral and burial were impressive
The administration has demonstrated its mettle and done Zambia proud.
The demise of the late President was an 'act of God.” No one could have foretold it
with certainty and this was the first time that a President died in office.
Yet when it came to that the administration responded with mainly well-thought out
decisions and actions. It was good.
The late President received a solemn and fitting funeral and burial, overall. There
were few noticeable hiccups. The whole occasion was managed and conducted
with an admirable precision. For this, the administration has to be commended.
They deserve it. It is the good name of Zambia they protected and enhanced
especially as the eyes of most of the world were trained on the country. Equally
impressive was the public response. There are question marks of course. The
largest being on the decision to fly the body to all provincial capitals. Many were
outraged because” it is not done” and they maintained that lying in state is usually
conducted at one point. There was considerable debate over that point as there
was speculation that it was not unconnected to the forthcoming presidential by-
election. But even so, and then there was a clear context: he was President of all
BRIEFS
Mourners Heckle Maureen
The heckling was loud and clear. Some dignitaries looked down in shame
when the State House Senior Private Secretary Florence Chawela, read the
tribute. It was from former First Lady Maureen Kakubo Mwanawasa to her
husband, late Levy Patrick Mwanawasa. “Mr. President, your enemies are
now my enemies…,” the tribute read. But mourners, especially the ruling
party members, openly heckled while others booed. It happened in full view of
over ten African Heads of State and Government. It was an embarrassment to
say the least. I hope she will realize that silence is golden. By the way, all this
happened at the National Assembly during the Church Service of
Mwanawasa. At the end of the tribute, there was no usual courtesy of
applause usually extended to such speeches. The rest of the tribute
appeared to be a duplicate of the ruling Movement for Multiparty Democracy
(MMD) manifesto of 2006. In contrast, Michael Mabenga came out well and
appealing to the political divide within the party. He appealed for unity and
honest soul searching. He got the biggest applause. Rupiah Bwezani Banda
spoke last and he both the applause and the usual “Boma” slogans, which
means one is politically in-charge. Mwanawasa used to get such salutations
among cadres.
Mwanawasa's Sister Hospitalized,
Discharged
It has been a difficult period for the Mwanawasa family
It never rains but it pours - could be the best cliché to describe the problems
facing the family of the late President Levy Patrick Mwanawasa. As the body
of the President was making rounds in provinces, his sister Rona's health is
said to have deteriorated. She could not even accompany the body of her
brother, a family source disclosed. Doctors at Maina Soko Military Hospital
suspected malaria and she was admitted to hospital since the 26th August.
However, she was discharged a day before burial to enable attend the
ceremonies.
The health of the late President's sister has been failing her for a long time
now. We hear President Mwanawasa was in the forefront seeking proper
medical attention for her sister. During the African Union summit in Egypt,
President Mwanawasa, is believed to have bought some medicines for her
sister and immediately instructed that they should be ferried to Zambia.
After the demise of the President, only two out of a family of 10 are surviving.
Zambia and judging from the response in the provincial capitals, it was well worth
it.
What needs to be reviewed immediately and a decision made as part of the
postmortem is the period of national mourning. Even for a beloved President, 21
days is excessive and quite inconveniencing to far too many people. Some have
in fact taken to calling it “national boring.” The air would need to be cleared over
the money reported to have been sent from here to Paris during his hospitalization
in France. The French Government has graciously agreed to pay the hospital bills
and the maintenance costs. There are questions over what happened to the
money sent from here and it is not exactly innocuous since, there is always latent
suspicion that some may use such an occasion to line their pockets! The funeral
fund established largely by banks is not well understood. What is it for? Some
remember an undertaking by the secretary to the Treasury Evans Chibiliti that
Government was in a position to finance everything. So, who did finally? Is the
fund perhaps meant to reimburse the Treasury?
Overall, it was a strenuous job well done. President Levy Patrick Mwanawasa
was given a dignified funeral and burial by his people. That much can be said.
The Magande Momentum
Maureen's endorsement of Magande increased his support base but the
Shikapwasha and Chituwo candidatures may reduce his ballots
The meeting hosted at the house of Presidential Affairs Minster Cecil Holmes is what
triggered the momentum for the 'Elect Magande Campaign.' The congregants at the
meeting expressed concern that word had reached them that Vice President Rupiah
Bwezani Banda wanted to pick a Northerner as his deputy should he be elected
President of Zambia. Make no mistake; northerners are politically detested by the
other groups with strong links to the late President Levy Patrick Mwanawasa. The
Banda camp vehemently denies that any person had been promised the second in-
command job. But nobody would listen especially that two names of northerners,
Commerce Minister Felix Mutati and Businessman Bwalya Chiti keeps propping up
within political discussions in both camps. The two were widely expected to file the
presidential nomination but quietly indicated their allegiance to Banda, prompting
speculation to wide spread.
Finance Minister Ngandu Peter Magande was in attendance, together with Home
Affairs Minster Ronnie Shikapwasha at the Holmes meeting. Names were discussed
and finally the Magande name was on top of the shortlist. Admittedly, he was the only
one with the strong credentials within the meeting.
We hear others walked out before the consensus was reached. Other suggestions
were proposed to approach Banda and strongly protest against his perceived neglect
of the Mwanawasa family or infamously known as 'The Family Tree.' At the close of
nomination for the presidential race for the ruling Movement for Multiparty Democracy
(MMD), Shikapwasha, together with Health Minister Brian Chituwo pushed in their
papers. The initial idea was to convince any aspiring candidate from the Central
Province to withdraw and back the Magande momentum. “We didn't have a firm
agreement,” one said.
Rumors continue to make rounds within the Banda and Magande camps and both of
them appears not to bother to correct the situation. The opposition is enjoying it after
all it is can be a blessing in disguise if divisions in MMD continue. One strong rumour,
we hear, that badly cut tie between the two camps were allegations that Banda ordered
State House aides to begin packing their bags. Ex-First Lady Maureen Kakubo
Mwanawasa, we are reliably told, was not pleased with the information and
complained within her circles. The Banda camp again denies the allegations. So far
nothing as been done to remedy the situation. Maureen, in an expected interview in
The Post Newspaper, which has strong ties with the Mwanawasa's, endorsed
Magande as a preferred candidate to succeed her husband. The endorsement, no
doubt, increased the Magande momentum within the party but increased the
opposition against her in the nation, going by the reactions. Drama continued to unfold
within the two camps. The worst was at the City Airport when the body of Mwanawasa
was returning from the provincial rounds.
Local Government Minister Sylvia Masebo, a strong Magande supporter, collapsed in
full view of other colleagues, who watched her merciless on the ground. Maureen, we
hear uttered strong unprintable words on the ministers for not providing First Aid to
their colleagues.
 NAPSA Justifies Gambling
NAPSA board defends ZMK 10 billion investment in
Zambian Lotto
Dr. Aubrey Munyeke Chibumba, the Director-General of
the National Pensions Scheme Authority or NAPSA, is
feeling the heat of his decision. On September 2, he held a
general meeting with his members of staff to exonerate
himself from the highly questionable deal. The workers
listened but they never bothered to ask any questions,
despite having invited them to do so. “He was just waffling,”
one said. In case you did not follow the August Edition of the
Executive Issues, Chibumba through his investment
committee decided to gamble with the pension funds by
investing US$ 2.7million in a little known Zambian Lotto, a
company incorporated to run lotteries and gambling. The
funds, equivalent to ZMK10 billion, was for the ten (10)
percent equity purchase.
The Anti Corruption Commission (ACC) has opened a
docket over the same transaction and progress has been
made, according to ACC insiders. After weeks of silence,
NAPSA finally opened its mouth over the deal. The board of
trustees defended the investment in a five-page lecture.
“The investment in Zambian Lotto Limited was approved by
the Investment Committee of the Board of Trustees using
delegated powers,” the statement said. Registered as a
lottery, gaming and gambling company in June 2007,
Zambian Lotto is owned by New Horizon Printing Press
proprietor Shawky Fouad Hemeidan who is the majority
shareholder. Others are Nehmetallh Antoine
Moukheiber, Chaheen Fouad Hemeidan and Marwan
Suleiman El-Kamad who are all Lebanese nationals and
also directors in the New Horizon Printing Press. But
NAPSA calls the reference to foreign ownership as
“Xenophobia and Racism” even though the Citizens
Economic Empowerment (CEE) clearly favours Zambian
ownership. “NAPSA is both an equal opportunity employer
and equal opportunity investor,” the statement said
challenging the Zambians to present their viable investment
Marching with Machila
A year on, Machila has introduced key reforms in the Ministry of
Lands once perceived to be corrupt and many admit his
achievements
Bradford Munalukupe Machila is something of an enigma. Very few
people really know him but there is something about him which cannot
be hidden. He is a hard worker who, as a minister, still reports for work
earlier than most civil servants. He respects time and more importantly
his friends. Make no mistake; he is a nice person. Appointed as Minister
of Lands slightly over a year ago to sort out corruption at the ministry,
Machila has presided over very painful decisions. He has all the reasons
to smile after a year of being at the helm, introducing critical reforms that
have transformed the image of the ministry. “We think that the new
reforms introduced have helped in bringing back the good image of the
ministry of Lands,” said Henry Machina, Executive Director of the
Zambia Land Alliance, a critical civil society watchdog. “You will recall
that prior to the introduction of these reforms public perception was such
that the ministry was a corrupt institution where one did not get service
without bribing someone,” he added. Machila was appointed in
the aftermath of corruption allegations in the ministry, which led
to the dismissals of the Minister at the time Gladys Zithe
proposals to NAPSA and its financial intermediaries for
possible investment by NAPSA. Very strange preposition
going by what the NAPSA board chairman Professor John
Lungu who recently said his organization will consider
investing in projects that meet CEE guidelines.
NAPSA Believes in Gambling
NAPSA board believes the investment in the gambling
business is worthy it. One of the advantages of getting into
the venture is that the Zambian Lotto is implementing
technology that will support a biometric smart card that will
potentially allow NAPSA members to collect their pension
from any outlet of the lotto. “NAPSA recognizes the
potential of the Zambian Lotto Limited distribution platform
to significantly alter the payments system in Zambia, the
board argues. A five (5) percent of all its lotto sales after
VAT will be donated to a charity fund, which will; they
believe will enhance the company's social responsibility
and reputation.
“Assuming sales projections are realized this will translate
into about ZMK 8 billion each year that will be available for
charitable causes,” the statement say, disclosing that
currently NAPSA only spends ZMK 80 million on donations.
NAPSA also disclosed that it had approached state-run
companies such as Zambia Telecommunications
Company Limited (ZAMTEL), National Savings and Credit
Bank, Zambia National Building Society and Development
Bank of Zambia with the possibility of working together on
some projects. Only ZAMTEL, the statement claims,
pursued the matter further and the NAPSA board has
obtained approval from its board of trustees for funding line
to the cash strapped telecom. “NAPSA would like to
emphasize that the onus to make contact with NAPSA lies
with the state company seeking a funding line and not
NAPSA,” it said.
Nyirongo and Commissioner of Lands Frightone Sichone, who are
now on trial for graft.
A website has been developed with the help of the USAID and the
Millennium Challenge Account while a Service Charter, with clear
targets and deadlines has been produced. The Charter, the first of its
kind at the ministry, states clearly what to expect from members of
staff of the ministry especially those working in the newly created
service centre. “Some individuals though have complained that it still
takes more time than stipulated in the charter for them to get their
applications processed,” Machina said. But in addition, there is need to
mount a serious campaign to inform people about the new reforms.
This should include using simplified leaflets translated into local
languages for many to understand, the Zambia Land Alliance said. The
changes introduced so far need to be decentralized to various
provinces. Machila admits this shortcoming but is quick to point out
that the process of getting into provinces is on his table.
Machila is a lawyer by profession and holds a masters degree in law .
Member of Parliament for Kafue Constituency, youthful Machila
practiced law at Corpus Globe before he called it quits to join politics in
2006. He served as deputy Minister for Justice, a specially created
position for him by late President Levy Patrick Mwanawasa before he
was elevated to lands within a short period of time.
UNZA Same Old Story
The unscheduled three-week recess and eventual extension at
the University of Zambia (UNZA) was probably inevitable from the
time of the first exchanges over student demands for an increase
in allowances and the still unexplained police shooting of two
students. Education Minister Professor Godfrey Lungwangwa's
response in the negative to that demand drew some sharp
responses and they were both angry and derisive. A circular letter
that began to appear around that time pasted on some walls at the
university said it all. Titled “A truckload of nonsense” and signed
simply by “Che,” it read. “BC… (Bursaries Committee) is not
negotiable…” One of our country's fortunate educated fellow is
quoted to have said these remarks. Now, what class of stupidity is
that? What sort of excessive idiocy is that? Where on earth and
since when did loans become presents to be received in absolute
muteness? Ha, no wonder someone is a Professor! …”
”The students should be reasonable. What they are getting is what
most general workers are actually getting…,” another one said. As
the stalemate grew, matters seemed to degenerate sharply into a
personal slugging match and there was much “collateral damage.”
The real issues neither are of course far from personal nor are they
restricted to the university. Residential institutions of learning
generally have long been restive. There is a great deal of
dissatisfaction and it is rarely addressed. When things boil over the
tendency is to find a way out of the immediate crisis and carryover
the core questions. So, turbulence has built up throughout the
educational system. There is certain regularity to reports of violent
unrest at various institutions of learning. So far, only primary
schools have been spared the malaise. It may well be high noon for
education in Zambia. The “economic adjustment policies” were not
education-friendly and resulted into an effective policy of “benign
neglect” of education. This approach would now appear to have
run its course. Decisions and actions that have been carefully
evaded can no longer be postponed without consequences.
Apparently, the strictures and demands of “economic reform”
resulted in a certain loss of focus on the bigger picture. It led to
temporizing on education. Government retreated and seemed on
the verge of denying its fundamental responsibility to educate its
people. Thus were created the conditions for the current
tensions. But education is the key and that's no cliché. It is
absolutely essential to what must happen next and the bulk of it
has to be provided for through the public purse. There is a backlog
especially in tertiary but secondary school education as well. What
is no longer tenable is the pretence that except for a few
troublemakers, things are all-right and that the problems arising
from chronic under-funding of education are for the riot police!
Given the sheer scale and weight of the issues, there has to be a
change of attitude towards a more realistic and honest
comprehension of what is. There should be space for dialogue
and meaningful negotiations over funding. This is essential to end
these disruptive stalemates that put everyone out of rhythm.
Rehabilitation of physical infra-structure should be a priority
particularly for the public universities. They are in a sorry state. It
won't help anyone to continue to turn a blind eye to this reality. The
solution to the university salaries and conditions of service is even
more straight-forward and is prescribed largely by external factors.
The solution is not to be found in the collective agreement model to
which there appears to be increasing recourse. What is essential is
parity with regional levels. It can't be otherwise if there is any
seriousness about running public universities as effective centres
of higher education. Parity should be the operative principle and it
has to be understood in its true context. It is not about paying
anyone what they don't deserve. It is about safeguarding the
national interest. Without parity, the hemorrhage of staff will
continue and with it, the future of the universities cannot be
assured. The real needs of education have been evaded long
enough. It may be time to address the backlog of issues more
honestly, realistically and practically.
APRM: In Judgment of their own case?
A panel dominated by government officials appointed to review
Zambia's performance under the African Peer Review
Mechanism
Forty-Seven (47), that is how many the Minister of Justice George
Kunda has appointed to the newly constituted National Governing
Council for the African Peer Review Mechanism (APRM). Again,
under the same Ministry of Justice is the National Constitutional
Conference (NCC) which is writing the new constitution with over
500 delegates! Since labour has to be adequately compensated, the
combined personal emoluments bill must surely add up to quite a
packet. Hopefully, those emoluments are not a factor in the ever
rising inflation! But perhaps democracy, even Zambian style isn't
cheap!
Questions persist however whether in Zambia's situation, that level
of pay-outs can be consistent with “prudent management of public
resources.” That aside, there are even more troubling questions
about the composition of the council. With 19 members drawn from
Government, ten representing a not too clear constituency that
could well are the same Government and only 18 from civil society
and the private sector, there is a clear mismatch. Government is
dominant. No, that is not always or inherently a bad. However, in this
case, it is largely Government performance that will be “peer
reviewed.” So, it does seem as though Government has worked
itself into the unusual but happy position of sitting in judgment of its
own case! Very strange stranger still coming as it does from the
Justice Ministry which surely knows better. The question is whether
this won't have implications for the credibility of whatever outcome.
For, from afar, the composition may suggest that Government is
uncomfortable with a panel that is truly independent in outlook.
Equally, 47 seems quite a heap. We hear civil society and
government had initially settled for the panel of 15 but Kunda
thought doubling the figure would be best. There are some who
maintain that elsewhere the same review has been successfully and
credibly done by more targeted smaller groups. Loud mouths or
arm-chair critics? Perhaps. Still, there appears to be a real case for
smaller more wieldy groups than these progressively larger heaps
that Zambia would now seem wedded to. Equally, for outcomes to be
above board those who must work on the programmes must not be
just impartial but must be seen to be impartial, all the way.
Galloping Inflation
Analysts doubt single-digit inflation by year end
A jump of 0.6 percent in inflation within a month is a serious
matter. Bank of Zambia (BOZ) officials must be worried with
the latest developments. In July, inflation was at 12.3 percent
but it has now jumped to 13.2 percent as at August, higher
than the projected annual rate of a single-digit.
The rise, we are told, was caused by the “increase in the cost
of transport (fuel, air fares, and new motor vehicles), food,
beverages and tobacco, according to the Central Statistics
Office (CSO). “Of the total 13.2 percent annual inflation in
August 2008, food products accounted for 7.8 percentage
points while non-food products in the Consumer Price Index
(CPI) accounted for a total of 5.4 percentage points, CSO
said. It appears are certain that Zambia will not achieve a
single-digit of inflation, as projected in the 2008 National
Budget. Many economic analysts agree that the target is off,
and it will be unwise to continue banking on that.
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