Zambia Weekly

In this issue
Did MMD print money - illegally, that is? BoZ governor has skeletons in the closet? Riots in Kalingalinga - and Kaleya Quotes 7 interested in MMD presidency MP resigns - and join PF Corruption: Zambia improves its ranking The revival of an historic railway Has Satas son come into sudden wealth? More mining shares on LuSE FQM: Paying a lot of tax LuSE week-on-week Zamtel in brief Latest news on Finance Bank Sata - and his minibus Appointments 1 2 2 2 3 3 3 4 5 6 6 6 6 7 8 8 Kambwili loses it with Chinese Contractors 2

Week 49, Volume 2, Issue 48, 9 December 2011

Did MMD print money - illegally, that is?

President Sata has alleged the MMD government illegally printed money using two printers apart from the official Thomas de la Rue in the UK. He claimed former President Banda had appointed three un-named chiefs to tour the country to antagonise and dilute the effects of the PF government using the fake money. But we know what they are doing, warned Sata. Nonsense, retorted former Minister of Finance Situmbeko Musokotwane: Its the Bank of Zambia (BoZ) that does all the printing of money because its in the law that they must do that. He suggested that Sata was trying to divert public attention from the PFs failure to fulfil pre-election promises: [T]his is very shameful indeed, the behaviour by the president, of making all these dramatic statements and so-called revelations, which turn out to be false (...). The outside world will be asking questions: Does the president have advisors? Does the president have ministers? If so, why does he make all these allegations that turn out to be false? asked Musokotwane and suggested that Sata should set up a commission of inquiry on the matter. For the avoidanc of doubt, replied State House, we wish to make it abundantly clear that the biggest and most serious challenge facing Zambia today, whether Dr Musokotwane and his colleagues agree or not, is excessive greed and corruption, Satas spokesman George Chellah said, calling Musokotwane a very useful but out-of-control spokesperson of a troubled group seeking to confuse the due process of the law with politics. Speaker of the National Assembly Patrick Matibini directed Minister of Finance Alexander Chikwanda to issue a statement on the allegations, following a point of order raised by UPND MP Jack Mwiimbu, who produced a K 50,000 note not printed by Thomas de la Rue. BoZ said it would state its official position after Chikwanda has issued his statement. Last month, Bank of Zambia acting Governor Bwalya Ngandu explained that Giesecke & Devrient (G&D) GmbH of Germany are the printers of all banknotes in the 2010-2012 currency supply contract. Bwalya explained that G&D had been chosen because of a long standing business relationship dating back to 1996, which developed further as G&D printed the K 10,000 denomination in the 2007-2009 currency supply contract. Another printer in the spotlight is the South African Bank Note Company (SABN), a subsidiary of South Africas Reserve Bank. SABNs suspended MD Musa Mbhele is currently facing a disciplinary hearing cloaked in a veil of secrecy to answer accusations that SABN printed Zambian Kwacha and Namibian Dollar notes in ways that compromised their quality. Mbhele did not take reasonable steps for the maintenance of proper stock records and physical counts of the 500 and 1,000 Kwacha notes. Printing extra money can destabilise an economy by damaging the value of its currency, but casting doubt on the legitimacy of a countrys currency makes it vulnerable to counterfeiting (Post/Times 6/7, Daily Mail 6/7/8 and iol.co.za 8).

Editors note
I am beginning to feel rather prudish. Last week, the Weekend Post adorned its front page with a full-page action shot from a concert with singer Runnel. One of the patrons was on his back, pinned to the floor by two of Runnels provocatively clad dancing queens riding him pushing a lot of not-particularly-attractive female breast, belly, thighs and crotch into the camera. Yet, what I am mostly puzzled about is the lack of reaction. Why are the Posts readers not complaining? How does the Post itself justify these photos, considering that editor-inchief Fred Mmembe is fond of filling his editorials with biblical references? After all, we are living in a declared Christian nation, where call boys believe they are entitled to undress women in miniskirts at bus stations, and the police have introduced a dress code for visitors at their headquarters to maintain decency. Is it only me who sees a contradiction between being a declared Christian nation and living in modern times? Maybe not, because this photo and many others in the Weekend Post seem to be doing their utmost to convey the message that concerts must be accompanied by scantily clad women performing vulgar movements in some weird echo of ancient fertility rites.

FIgurEs: Counterfeit notes

The ratio of counterfeit to genuine K 50,000 notes in circulation stood at 0.000036% as at end of June 2011 (Bank of Zambia in Daily Mail).

Zambia Weekly sPeCial:

2011 REVIEW + sATAs FIRsT 90 DAYs IN OFFICE

In last issue of 2011 (23 December) Please note, first issue of 2012 out on 13 January
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Zambia Weekly
BoZ governor has skeletons in the closet?
Bwalya Ngandu, Acting Governor of the Bank of Zambia (BoZ), is apparently not very good at recovering loans. In 2010, the BoZ closed the micro-finance institution Executive Financial Services Limited (ExeFin) with Ngandu as its MD at the time. The BoZ refused to disclose the reasons why, but market sources claimed ExeFins management had been found unfit to run a financial institution. ExeFin Chairman Bwalya Chiti said the institution had its license revoked due to imprudent lending with a low recovery rate. Briefly after assuming office, President Sata fired BoZ Governor Caleb Fundanga and replaced the banks Deputy Governor for Operations Austin Kaputo Mwape with Ngandu. Sata will however have to obtain parliaments endorsement of a new governor, and in the meantime which may be long Ngandu runs the bank (Post 5).

N e ws
Quotes

Temptations in this job are many, and you will encounter the forces of corruption, but desist from it, as it can dangerously ruin your career as well as ruin the economic standing of our country. Inspector General of Police Martin Malama at the pass out parade of 349 police officers at Kamfinsa School of Public Order and Maintenance in Kitwe (Post 3). Cancer was not in Africa, we inherited it from Europe. If we had cancer in Africa, all of us would have died because we do not have hospitals. President Sata in connection with former US President George Bushs visit to Zambia. Bush was in Zambia to promote awareness about cervical and breast cancers in particular (Times 3).

Kambwili loses it with Chinese contractors

Minister of Foreign Affairs and Roan MP Chishimba Kambwili has stormed out of a meeting with Chinese contractors after only about 20 showed up. Kambwili had called the meeting to discuss serious matters after four Chinese were arrested about a fortnight ago for allegedly having defiled several girls between 12 and 15 years old in Roan Township in Kitwe. The four men pleaded not guilty. This is a joke, which is not funny, and I will not take it lightly, Kambwili fumed and directed that he expected all of the more than 500 Chinese contractors to show up the following day which they did. Kambwili explained that unlike the MMD government the PF would not interfere in the case with reference to the Chinese management at Collum Coal Mine that avoided prosecution after shooting 13 Zambian workers during riots last year. We also blame our people because it is not easy for Chinese to look for young girls, hence we suspect connivance with Zambians, Kambwili added. The contractors are working for the state-owned China No.15 Metallurgical Construction Company (15MCC) at the Muliashi Copper Mine in Luanshya. The latter is being developed by China Nonferrous Metals Mining Corporation, which also runs Baluba Mine in Luanshya (Daily Mail 5/7 and Post/africareview.com 6).

I will serve them [people of Chongwe] diligently and Ill not let them down. I want to leave Chongwe a better place than I found it. Before I leave, through my president and my party, the major roads, Chalimbana Road and Mikango Road, will be tarred. Sylvia Masebo, who has just been reelected Chongwe MP. She has held this position since 2001 (Post 5).

riots in Kalingalinga
Police have arrested 19 people in two incidents of riots in Kalingalinga Compound in Lusaka. First, residents ran amok, attacking the local police post and blocking roads after word went around that police had shot a young man in the early hours of 3 December. 19-year-old Boniface Sichelela was shot, explained the police, after a fight erupted behind Mayela Nightclub, but eyewitnesses claimed he was on his way home when mistaken for a thief. Then, riots erupted again after Sichelelas funeral. A reserve police constable has been charged with murder (Post 4 and Daily Mail 5/8).

People who suffer are the farmers, so there is need for the government to find a solution and not say it is the previous government that failed to pay the suppliers [of inputs]. That is why they were elected. Caritas Zambia Executive Director Sam Mulafulafu commenting on the lack of farming inputs under the Farmer Input Support Programme (Post 3)

riots in Mazabuka
Enraged residents of Kaleya in Mazabuka have blocked the Lusaka-Livingstone Road between Mazabuka and Monze in protest against the death of a cyclist who was hit by a vehicle. Two people have been killed in separate incidents in 72 hours at the same junction to Kaleya market and the residents protested against the governments failure to install speed humps (Post 4).

Mongu riot report ready in 4 weeks

The final report on the riots in Mongu in January this year will be ready in four weeks, according to Commission of Inquiry Chairman Rodger Chongwe (Times 6).

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Zambia Weekly
7 interested in MMD presidency
Five MMD members have successfully filed their nominations for the partys presidency, including recent High Commissioner to Canada and former Vice-President under President Mwanawasa Pastor Nevers Mumba; Lunte MP and recent Minister of Commerce, Trade and Industry Felix Mutati; Chisamba MP, MMDs Youth Chairman, recent Deputy Minister of Local Government and Housing and former senior private secretary to President Mwanawasa, Moses Muteteka; Kasempa MP and recent Minister of Foreign Affairs Kabinga Pande; and Liuwa MP and recent Minister of Finance and National Planning Situmbeko Musokotwane. Two others, Alfred Njovu and Nason Msoni, were asked to correct minor mistakes on their application forms. Apparently, Mutati filed his application later after the deadline of 30 November. Nevertheless, some analysts said the race would be between Nevers Mumba and Felix Mutati with the MMDs National Executive Committee throwing their weight behind the former (Times/Post 3).

pol i t i c s
Corruption
Zambia improves its ranking
Zambia has improved its ranking on the 2011 Corruption Perceptions Index (CPI) compiled by Transparency International. The country is ranked 91st out 183 countries with a score of 3.2. In 2010, Zambia was ranked 101st out of 178 countries with a score of 3.0. The CPI defines corruption as the abuse of entrusted power for private gain and ranks it according to peoples perceptions of how corrupt their public sector is. Transparency International Zambia (TIZ) President Reuben Lifuka said the improvement could be attributed to laws implemented by the MMD, including the Forfeiture of Proceeds of Crimes, Financial Intelligence Centre Act and the Public Interest Disclosure Act. He said the new PF government should consider the 2011 CPI as a benchmark for their efforts to fight corruption (Daily Mail 6).

MP resigns - and joins PF

Independent Msanzala MP Colonel Joseph Lungu has resigned and joined the ruling PF party. Lungu hopes to ensure development in Msanzala by being adopted by the PF as their candidate in the constituency in Eastern Province. It is his constitutional right, said President Sata in response to criticism about the need for another expensive by-election (Post 4 and Times 6).

Corruption Perceptions index - by country

Top 5, bottom 5 and interesting countries in between
New Zealand (1) Finland (2) Denmark (2) Sweden (4) Singapore (5) Canada (10) United Kingdom (16) United States (24) Botswana (32) Rwanda (49) Namibia (57) South Africa (64) Ghana (69) China (75) Gambia (77) Zambia (91) Liberia (91) Tanzania (100) Malawi (100) Madagascar (100) Benin (100) Mozambique (120) Ethiopia (120) Uganda (143) Nigeria (143) Zimbabwe (154) Kenya (154 Ivory Coast (154) DR Congo (168) Angola (168) Uzbekistan (177) Turkmenistan (177) Sudan (177) Myanmar (180) Afghanistan (180) Somalia (182) North Korea (182) 0 2 4 CPI score 6 8 10

rEsuLTs: 35 new councillors

Country (CPI rank)

The ruling PF party has won 19 of 35 local government seats up for grabs in local government by-elections held on 28 November, including 5 in Eastern Province, MMDs stronghold. The other seats were shared between the MMD (10 seats), UPND (4 seats) and 2 independent candidates (Daily Mail 5).

Musonda: NO, I did not bribe!

Former Deputy Minister of Health Solomon Musonda (MMD) has refuted reports that he bribed the family of a man he hit with his car to avoid prosecution. Last week, it was revealed that police are investigating reports that Musonda killed the man and then paid the victims family K 10 million to avoid prosecution. Musonda said he had paid the family as a matter of courtesy, and wondered about the allegations, considering that he had reported the incident to the police and that the vehicle involved in the accident was still parked at Serenje Police Station. However, Central Province Police Commissioner Solomon Jere said police had sent a forged burial consent to handwriting experts in Lusaka before formally charging a police officer and a messenger. The accident happened on 29 September 2010, and not, as earlier reported, on 1 June 2010, the day Musonda shot and wounded Patriotic Front cadre Jackson Musaka; an offence he was sentenced to nine months imprisonment with hard labour (Times 3).

FIgurEs: Lack of doctors

Zambia has 700 doctors against the 2,600 recommended by the World Health Organisation (1 doctor per 5,000 people). UNZAs School of Medicine has graduated over 1,400 doctors since it opened in 1970, and it will be unable to meet the demand in the next 50 years. Over 80% of doctors are concentrated along the line of rail (Times 2 and Post 5).

sata moves into state House

President Michael Sata has finally moved into State House, leaving behind his residence on Omelo Mumba Road in Rhodes Park in Lusaka (Post 3).

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Zambia Weekly
The revival of an historic railway

railways

One of Africas greatest rail routes, the Benguela Railway (see map above), is scheduled to reach the Zambian border by Mwinilunga early 2012. In its heyday the railway was the shortest way to transport mineral riches from the Congo to Europe via the Angolan seaport of Lobito. Back then it stretched all the way to Elizabethville (Lubumbashi), crossing the Angola-Congo border at Luau, and further on to Ndola in Northern Rhodesia. Currently, it only runs between Lobito and Huambo in Angola (pictures). China is rebuilding the railway in exchange for oil. After Angolas independence in 1975, that countrys civil war brought operations to a halt and left most of the infrastructure heavily damaged. In 2005, Angola and Zambia signed an agreement to reconstruct the railway and include a direct link to Zambia to promote economic development. The railway provides Zambia with an opportunity to import and export goods at a cheaper cost than via the more distant South African ports. The link on the Zambian side, the North West Rail, was revived earlier this year, when US-based Tagos Group and the Zambia Development Agency signed a memorandum of understanding about raising US and African Development Bank funding for the USD 500 million project. A previous plan fell through in 2008 when mining companies would not commit to using the line and the government cancelled the license of the North West Rail Company, headed by former Vice-President Enoch Kavindele. The license has since been reinstated. The North West Rail stretches 405 kilometres from Chingola through Solwezi to Lumwana with a second phase to connect to the Benguela Railway (Times 7 and internet research).

Major trade routes in southern africa

Nacala corridor is still a long way off

Government has engaged in talks with the Railway Systems of Zambia to supply wagons and locomotives for the Chipata-Mchinji Railway to make it fully operational. The railway was officially opened in August 2010 with a ceremony graced by the heads of state of Zambia, Malawi and Mozambique but has been lying idle ever since. The 27-kilometre railway line was launched in 1982 as part of the Nacala Corridor (see map of Southern Africa) to connect Zambia via Malawi to the port of Nacala in Mozambique (with the option to be extended to Tete). The project was however abandoned by the Zambian government due to lack of funds and was only revitalised in 2006. The Nacala Corridor is the shortest sea route for eastern Zambia. According to the Ministry of Transport, Works, Supply and Communications, some portions of the railway in Malawi and Mozambique still need to be rehabilitated (Daily Mail 7).

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Zambia Weekly
Has satas son come into sudden wealth?
One of the MMD governments most rabid supporters, Committee of Citizens Director Gregory Chifire, who was the instigator of various damaging stories about President Sata in the run-up to the elections, has re-emerged. Last week, he alleged that Satas son, Mulenga, had bought two brand-new cars, a Jeep valued at K 800 million and a Toyota GX valued at K 1 billion; expenses that were beyond Mulengas reach, argued Chifire on the online Zambian Watchdog, considering that Mulenga has never had a lucrative business other than selling imported dogs to residents of Lusaka and supplying whisky to nightclubs. Mulenga, who has an engineering degree from University of California in Los Angeles (UCLA) and is elected councillor in Kabulonga, immediately asked his lawyers to institute legal proceedings against Chifire to force him to either retract his defamatory story and publicly apologise or substantiate the allegations. I have a thick political skin but this kind of rumour mongering is not good for my wife, and more especially my father who has serious national issues to look into, not to mention my political career because I am a public elected official myself, Mulenga stated. Chifire also asked the government to explain its deposit of 15 million Rand into a South African bank account held by a wife of an un-named senior military officer.

preside Nts child r e N

Sata senior advised Chifire to formally complain to law enforcement agencies and advised law enforcement agencies to engage Chifire on his allegations. No one will be shielded from prosecution once it has been evidently established that a crime has been committed in spite of their status in society, he stated. The Drug Enforcement Commission interrogated Mulenga and then waited for Chifire to show up. Chifire said he would appear on 6 December, but didnt, all along arguing that he was simply a whistleblower. On 7 December, he finally showed up although the media was confused about how he managed to get away without them noticing it (zambianwatchdog.com 1, lusakatimes.com 3, Times 3/6/8 and Daily Mail 4/5/6/7).

RBs twins to be investigated

Investigations have begun into the Mpundu Trust Fund for former President Bandas twins upon instructions by President Sata. Apparently the trusts bank account holds a colossal amount of over USD 1 million. According to sources, the trust fund is being used to finance Bandas luxury villa on Leopards Hill Road in Lusaka. Bandas office said Banda would respond at an appropriate time (Post/Daily Nation 6 and Times/Daily Mail 6/7).

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Zambia Weekly
More mining shares on LusE
Trade Kings Group of Companies is planning to list its subsidiary, Universal Mining and Chemical Industries Limited, on the Lusaka Stock Exchange in two years time. Universal Mining runs the Kafue Integrated Iron and Steel Plant (KIISP), which produces steel rolled products from iron ore mined at Sanje Hill about 60 kilometres west of Kafue. About 2,000 workers produce more than 200,000 tonnes of steel products annually (Daily Mail 5).

busi N e ss
Zamtel in brief
No audit! Zamtel has refused to be audited by the Auditor General: I have written to the Attorney General for his opinion and hopefully we will receive it soon and then see how we can move forward, said Auditor General Anna Chifungula. The government cannot dictate an audit as it only owns 25% of Zamtel. After assuming office, President Sata, an unwavering critic of the partial privatisation, appointed a commission of inquiry to look into the sale and last month, the commission deemed it irregular, illegal and fraudulent.After the report came out, Zamtel has also begun externalising its profits, according to the commission (Post 2). sold to british coNsortiuM? Persistent rumours have it that LAP Green Networks, the majority-owner of Zamtel, has been sold to a British consortium involving the Digicel Group for USD 270 million even though both the majority-owner of LAP Green, the Libyan Investment Authority, and Zamtel MD Hans Paulsen dismissed the rumours as being false. An acquisition would be subject to approval from the UN Security Council and the European Union (Daily Mail 2, Post/Daily Mail 5 and Computer World 6). cabiNet MeMo ready: The Ministry of Justice has finished drafting a Cabinet Memorandum on the privatisation of Zamtel, the fate of which President Sata recently directed should be declared by Cabinet (Times 8).

Another great emerald auction

Gemfields, the owner of Kagem Emerald Mine outside Kitwe, has made USD 11 million from its latest auction of 9.8 million carats lower-quality rough emerald and beryl in Jaipur, India, last month. At its last auction in Jaipur, the company raised USD 9.9 million for 12.98 million carats, and in July, Gemfields made USD 31.6 million in an auction in Singapore. Zambian emeralds are slowly making a name for themselves with their deep green colour, remarkable clarity, generally lower prices and reputation for being ethically mined. Gemfields holds 75% of Kagem Emerald Mine, which is the worlds single largest producing emerald deposit. All its emeralds are cut and polished at its facility in Jaipur. Gemfields also owns 50% of the worlds single greatest producing amethyst deposit in Kariba, and recently acquired a 75% share of the worlds largest single ruby deposit in Cabo Delgado Province of Mozambique (Times 6).

FQM: Paying a lot of tax

First Quantum Minerals, Zambias largest mining company, has this year paid USD 611 million in various taxes to government more than double the amount paid last year (USD 286 million excluding windfall tax). The company generates most of its revenue from the Kansanshi Copper-Gold Mine in Zambia, but also runs the Guelb Moghrein Copper-Gold Mine in Mauretania (Times 7).

Lusaka stock Exchange

week-on-week
Closing price (8/12/11) 4,000 african explosives Zambia Plc AELZ 1,590 British american Tobacco Zambia Plc BATZ 4.5 Cavmont Capital Holdings Zambia Plc CCHZ 637 Copperbelt energy Corporation Plc CEC 2,750 Farmers House Plc FARM 4,700 Farmers House Preference Shares FARMPREF 4,500 First Quantum Minerals FQMZ 15.8 Investrust Bank Trust Plc INVESTRUST 7,800 Lafarge Cement Zambia Plc LAFARGE 741 Metal Fabricators of Zambia Plc ZAMEFA 7,200 National Breweries Plc NATBREW 659 Pamodzi Hotel Plc PAMODZI 1017 Puma PUMA 54,000 Shoprite Holdings Ltd SHOPRITE 75.9 Standard Chartered Bank Plc SCZ 710 Zain Zambia Plc CELTEL 3,000 Zambeef Products Plc ZAMBEEF 232 Zambia Bata Shoe Company Plc BATA 1,056 Zambia National Commercial Bank ZANACO 218 Zambia Sugar Plc ZSUG 2,500 Zambian Breweries Plc ZAMBREW 10,000 ZCCM Investments Holdings Plc ZCCM-IH Company symbol Change % 0.63 0.47 5.77 10.00 1.25 3.92 5.86 1.41 5.86 1.70 5.01 0.09 -

798

1,409

1,634
561

70

192

399

512

Back-taxes

2005

2006

2007

2008

2009

2010

2011

Net prot Q1-Q3 2011

The luse all share index closed at 3,704.85 on Thursday 8 December, down by 0.22% from last Thursdays close of 3,713.14. Winner: Zamefa (+ 5.86%) loser: First Quantum Minerals (- 10.00%)
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Tax paid annually

Tax paid cumulative

Zambia Weekly
Latest news on Finance Bank
Finance Bank has been on a roll since President Banda handed it back to its original shareholders with its founder Rajan Mahtani in the lead:
Last

N e ws

week, the bank announced that it will list on three bourses in Lusaka, London and Johannesburg and this week, the bank declared that it would expand into neighbouring countries (although it last attempt in Malawi ended in closure due to illegal externalisation of foreign exchange). Zambia, Finance Bank is planning to open six new branches; two in Lusaka, to be opened this month, and four in Mongu, Mansa, Gwembe and Kazungula. bank has increased salaries for its 734 workers (expected to grow to 1,000 by the end of 2012) by K 2 million across the board. The lowest paid worker will now be paid K 4.5 million per month. Finance Bank used to have some of the lowest salaries in the industry. Suisse, which owns 40% of Finance Bank, has apparently dragged the Zambian government before international courts for the seizure if the bank. Suisse has also resolved to fund the governments 500 million Euro bond and hopes to act as a sales agent as a way of showing appreciation to the PF government. announced that the banks profits at the end of December will be no less than K 60 billion, and that K 20 billion will be paid in taxes, leaving him flabbergasted that the bank was sold to First National Bank for K 27 billion. alleged that the MMD government paid K 17 billion to Lloyds of London to do an independent audit of Finance Bank and K 35 billion to Ians Forensics, a subsidiary of Sandberg, South Africas largest law firm, to investigate Mahtani. The latter wondered about the large amount for an audit when there are several international audit firms in Zambia. So we have made a claim against Bank of Zambia because there was a court order that we had obtained which directed Bank of Zambia not to engage them, he said (Daily Mail/Post 5 and Times/Post 7).

In

The

&
BEFORE

chic confident

Credit

Credit

Mahtani

Mahtani

BACKGROUND On 10 December 2010, the Bank of Zambia (BoZ) took over Finance Bank, allegedly because it violated the Banking and Financial Services Act in general and engaged in insider borrowing in particular. Critics said the takeover was orchestrated by the MMD government to neutralise the banks founder and former chairman Rajan Mahtani - who is embroiled in several court cases about the same. On 12 September 2011, about a week before the elections, the MMD government announced the 27 billion Kwacha sale of Finance Bank to First National Bank (FNB) Zambia. On 3 October 2011, President Sata announced the reversal of the sale and ordered that the bank should be handed back to its original shareholders in general and Mahtani in particular. Critics said the reversal was inspired by Mahtanis financial support of Sata and the PFs mouthpiece, the Post. The Commission of Enquiry, which Sata had assigned to probe the sale of Finance Bank, before he announced the reversal of the sale, has stated it cannot do anything due to pending court cases.

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Zambia Weekly
sata and his minibus
President Sata has made a big stunt out of scrimping on expenses when he met Zimbabwes President Robert Mugabe in Livingstone over the weekend. Upon arrival at Harry Mwaanga Nkhumbula International Airport aboard a Zambia Air Force plane, Sata insisted on using a commuters minibus rather than the safer government transport organised for him. Where is the blue minibus? I told you to get me a minibus. We promised to put more money in peoples pockets, Sata said to his spokesman George Chellah. Eventually, Sata accepted to board a smart-looking but real minibus from the motorcade. A plain-clothed policeman drove him to the Royal Livingstone Hotel, and his slimmed-down motorcade even got blocked momentarily by a reversing truck in stark contrast to Mugabe, who arrived in his Mercedes Benz, ZIM 1, accompanied by a huge motorcade. After the short private meeting with Mugabe, the Post reported that Sata walked over 150 metres from his suite to the lobby to personally settle the bill for security and protocol officers as well as journalists from both Zambia and Zimbabwe. Citizens Forum Executive Director Simon Kabanda expressed hope that Satas ministers would follow suit: It may look in a very small [way] when the president moves without a big entourage, but I think the resources that are saved are huge, he said. The media did not mention whether or not Sata returned to the airport by minibus. Nonetheless, it was a walk-the-talk publicity stunt which received positive coverage around Africa in general and Zimbabwe in particular but whether Sata intended to embarrass Mugabe in the process remains unknown (Muvi TV 3, Post 4/5/6/7, ZANIS 5, Kenya Daily Nation 4, New Zimbabwe Forums 4, Newzimbabwe.com 5 and Malawi Today 6).

N e ws
Appointments
ZRA board
A new Zambia Revenue Authority (ZRA) board has been appointed, including Charles Mutemwa (chairman), former Minister of Legal Affairs Vincent Malambo (vice-chairman), Justice Permanent Secretary Mbololwa Muyaba, Secretary to the Treasury Fredson Yamba, Bank of Zambia acting Governor Bwalya Ngandu, Francis Alutuli, Mwila Lumbwe and Geoffrey Sakulanda (Daily Mail 2).

3 new deputy ministers

President Sata has sworn in three deputy ministers, namely Brigadier General Benson Kapaya (agriculture), David Mabumba (education) and Mutaba Mwali (transport, works, supply and communications). All three ministries already have one other deputy minister (Times 6).

Ambassador dies in Japan

Zambias Ambassador to Japan Mbikusita Wamundila Lewanika has died in Japan. President Sata expressed deep sorrow at his death and authorised the deceaseds elder sister, Inonge Mbikusita Lewanika, who is Zambias Ambassador to the EU and Benelux countries, to travel to Tokyo to repatriate the remains of her brother (Daily Mail/Times 6).

Bush AND Mugabe in Zambia

It was ironic that former US President George Bush and Zimbabwes President Robert Mugabe should end up in Zambia at the same time. Bush has been calling for sanctions against Mugabe for human rights violations but this week, Amnesty International called on Zambia along with Ethiopia and Tanzania, the other two countries on Bushs tour, to arrest him for human rights violations. During his presidency, Bush authorised the use of water boarding and other interrogation techniques that Amnesty and other human rights groups consider torture. In February, Bush cancelled a visit to Switzerland because of a threat of legal action against him for alleged torture, and a visit to Canada led to disturbances (picture). In Zambia, the ruling PF Party said it only would obey the International Criminal Court, arguing that Amnesty had failed to provide facts about the matter. The US is one of Zambias key donors. Sata explained that the two visits were a coincidence. With Mugabe he had discussed unity of Africa, while Bush was in the country to increase awareness about cervical and breast cancers, and launched Zambias first Pink Ribbon Campaign at Lusakas George Urban Clinic. But the concurrence of the two visits shows that Zambia is gaining back the glory which it lost, stated Sata. Parts of the Zimbabwean media also reported that Mugabe had wanted to personally invite Sata to officiate at Zanu PFs annual conference in the face of growing international isolation. Satas spokesman, George Chellah, said Sata would send PF Secretary General Wynter Kabimba instead, but Zanu-PF denied to have invited Sata in the first place (Times/Post 3, Post/ Daily Mail/ZANIS/Newzimbabwe.com 5).

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