Friday, October 22, 2010

CHINESE OFFICIALS SHOOT, WOUND 13WORKERS AT COLLUM COAL MINE


While officials were working on rescuing miners trapped underground in Chile, in Zambia trigger happy Chinese mine managers were busy shooting at workers at Collum Coal Mine in Sinazongwe District in the Southern Province.

Two Chinese Managers at Collum Coal Mine in Sinazongwe District, Southern Province who allegedly shot 13 miners are still scot free while three alleged master minders of the protest remain in custody. Collum Coal Mine workers on Friday October, 15th 2010 protested over their delayed salaries but two Chinese supervisors opened fire at them using a shotgun hence dotting their bodies with pellets.

As of Saturday more than 24hours after the incident the miners who were admitted at Maamba Hospital still had pellets in embedded in their bodies. Some had as many as nine pellets in their bodies while the doctor was nowhere to be seen. Ward Sianaini of the victims complained that such incidents would not go far because the Chinese officials are in the habit of bribing government officials.

“Even with this situation government will not do anything because the officials (Chinese) say they are above the law because they pay government,” Ward said. However, Sinazongwe District Commissioner Oliver Pelete said justice will prevail and culprits if found wanting will be brought to book.

“I will not say much because the provincial minister has already issued a comment and don’t want to look like I am overriding his authority,” Mr. Pelete said.

And when the DataBank reporter followed the DC and some Chinese officials including one of the mine’s shareholders who had come to visit the patients to the mine, it was discovered that the two alleged shooters were still walking scot free enjoying the nice summer warmth while the three alleged protest ring leaders were in custody.

The DC, mine officials and workers’ representatives went into a meeting that lasted about four hours but still the DC tried to be difficult in issuing a statement.
“I can only confirm that the police officers have recorded a warn and caution statement from the two Chinese managers,” said Mr. Pelete, but when asked about the correct way of doing things whether recording the statements from their premises or the police station, Mr. Pelete said he could not speak on behalf of the police.

Efforts to get a comment from the mine’s shareholder Lui Yao Ping almost proved futile as the DC was protective. However, Mr. Lui confirmed that the matter had been amicably dealt with by all stakeholders but refuted reports of him saying he is above the law.

“We have finalized, all is well, police officials and us as good now…….no no one is above the law, even the president has to respect the law,” he said.

Government speaks out on the shooting
Information Minister and Chief Government spokesperson Lt. Gen. Rev. Ronnie Shikapwasha shocked the country when he bluntly stated that the Chinese governments need no apologies over it because Zambians have been arrested before in that country.
The Minister was responding to some opposition United Party for National Development (UPND) and Patriotic Front (PF) Pact youths who went to lodge in a formal complaint at the Chinese embassy demanding for an apology and subsequent discussions on Zambia’s labour laws with Chinese investors.

The two opposition leaders could however not manage to pitch in their petition because they were manhandled by tens of police officers who were clad in heavy riot kits.

By Brian Mwale.

Tuesday, October 12, 2010

CUTS INTERNATIONAL ADDS VOICE ON ZAMBIA’S 2011 BUDGET


Despite the Zambian government having increased its national budget from ZMK 16.7trillion to ZMK 20.5trillion kwacha, many stakeholders still have ill feelings about it. Others have described it as an appeasement budget with the 2011 general elections around the corner.

Consumer Unity and Trust Society –CUTS- international has welcomed the 25% increase in The Pay As You Earn –PAYE- threshold in the Friday October 8th 2010 national budget presented to parliament for next year by Finance and National Planning Minister Situmbeko Musokotwane.

CUTS International Zambia centre Executive Board Chairman Love Mutesa says the increase from ZMK 800,000 to ZMK 1,000,000 forms one avenue for easing the burden on consumers.

However, Ambassador Mutesa like many stakeholders is still not satisfied with the increment hence describing it as minimal because of many economic factors like inflation which are very volatile.

“For instance, someone earning ZMK6,000,000-00 gross was subjected to a total PAYE tax of ZMK 1,628,250.15. The new system will entail a total PAYE tax of ZMK1, 553,250.15 representing a mere ZMK75, 000-00 increase in nominal terms. With the projected inflation at 7% for 2011, this means only ZMK70, 000 in real terms. Therefore, as CUTS, we feel this is still a raw-deal and question the so-called relief to workers when only ZMK70, 000-00 is freed as additional purchasing power,” says Ambassador Mutesa.

Infrastructure development
Government has in next year’s budget prioritised infrastructure development as a factor that will contribute to national development. CUTS International feels this is a welcome move under the understanding that a well developed infrastructure provides a number of incentives for business through lowered costs of doing business and accords a widespread supply of goods and services at competitive prices which ultimately benefits the consumer’s welfare.

However the Civil Society for Poverty Reduction (CSPR) Programs Officer William Chilufya feels the move is an appeasement strategy for electorates as government wants to use it as a campaign platform for next year.

The increase in the threshold at which small scale importers are required to engage a clearing agent is equally welcome. This will help address some of the trade facilitation problems by providing them with an opportunity to increase their import volumes and ultimately be able to increase their disposable incomes.

In the electricity sector the CUTS Chief feels the 15% tax scrapping must reflect in the relief to consumers and at least a stabilization of the domestic electricity tariffs.
“ It will certainly be unfair for power utility companies to upward adjust their tariffs in the short to medium term. This relief to power utilities on imported electricity should trickle down to individual consumers, notes Ambassador Mutesa.

Budget deficit and economic diversification
“On the budget deficit we wish to stress that the trade deficit, in itself, is not bad outcome looking at the stage of Zambia’s development projectile. It is an indication that Zambia is importing more than what it is exporting. What matters is the composition of the imports of which the majority for Zambia, as a developing country, must be capital equipment, a source of medium to long term national economic growth” he notes.

Ambassador Mutesa reveals that the source of worry at CUTS is the type of machinery of which, at the moment, the bulk is mining equipment for digging the country and not those meant for the manufacturing industries. He says such types of machinery do not provide a bed for long term sustained growth but rather end up as a nuisance. He has since called upon government to ensure that the forgone base for future development is compensated by increasing the tax rates and collections from the mining companies and investing in making the manufacturing sector attractive in Zambia.

Zambia must seriously look at diversifying the economy. Strike the iron while it is still hot alternatively make hay while the sun shines. It is in this respect that CUTS supports calls for windfall taxes. If this is done, we at CUTS are sure that consumers will be the major beneficiaries from these developments and the economic diversification that we all want to see develop will not just be a pipe dream.

Following calls for diversification of the economy the Zambian government has in the past two farming seasons recorded bumper harvests with 2008/2009 recording 1.9million metric tonnes with 2009/2010 recording 2.7million metric tonnes of maize. However the calls are that only maize and wheat are recording bumper harvests while other crops have not been prioritized.

By Brian Mwale.