Demonstratie: Rabobank Groep Neemt ZNCB Over (Zambia)
George Chellah - 12.01.2007 17:47
Zambia: OPPOSITION Patriotic Front president Michael Sata led a mammoth demonstration against the sale of state-owned Zambia National Commercial Bank and the recently recommended tax hikes by the International Monetary Fund (IMF).
 http://www.postzambia.com/post-read_article.php?articleId=20874
Sata leads mass demonstrations against ZNCB sale, IMF tax proposals
By George Chellah
Friday January 12, 2007 [15:28]
OPPOSITION Patriotic Front president Michael Sata led a mammoth demonstration against the sale of state-owned Zambia National Commercial Bank and the recently recommended tax hikes by the International Monetary Fund (IMF). And finance minister Ng'andu Magande has said Sata was part of the Chiluba government that agreed with the International Monetary Fund (IMF) to sell Zambia National Commercial Bank (ZNCB). The PF organised demonstration which started at the ZNCB head office on Lusaka's Cairo Road where Sata addressed cadres, anti-privatisation sympathisers and the labour movement, continued through a mass procession to the Ministry of Finance and National Planning where a petition was handed over to finance minister Ng'ande Magande.
In his address, Sata denounced RABObank of the Netherlands - the Bank that is due to assume 49 per cent shareholding in ZNCB - and urged them not to 'rob' the Zambians of their prized asset. "This RABObank should go and rob elsewhere. They are not going to rob us this bank. We are here," he said. He urged the opposition to be united over the sale of the national asset. "United we stand and divided we fall. If they are looking for jobs from Mr Mwanawasa, let them get the jobs but don't sell the people of Zambia because God has stopped creating countries," Sata said. "God created one country which he gave to Zambia. They have stolen our mines, they have also stolen our economy. Let them know that we'll come and get the bank back if they go ahead to sell the Bank."
He warned that PF once in office would move to re-nationalise ZNCB if at all the sale was to go ahead. "Be warned that that we will get it back," he said, as the huge crowd of on-lookers cheered. Sata also thanked chief Nsokolo from Mbala for supporting the procession. "I also want to thank police for sending more policemen to come and attend our demonstrations because even the police are frustrated," he said.
Federation of Free Trade Unions of Zambia president Joyce Nonde, who has been a strong critic of the ZNCB privatisation said her union would associate itself with organisations that speak for the workers. "Privatisation is poverty, we don't want poverty. Abash IMF! Abash privatisation!" shouted Nonde when she addressed the cadres.
After arriving at the Ministry of Finance and National Planning office, Matero PF member of parliament Faustina Sinyangwe when presenting the petition to Magande urged government to halt any further sale of state owned companies to foreign entities.
And in receiving the petition, Magande told the procession that Sata was part of the Chiluba government that agreed with the IMF ZNCB. He explained that Zambia has had a long-standing relationship with the IMF. "In 1994, your government under MMD had a relationship with IMF. It was out of this relationship that IMF lent to Zambia US $600 million. After this borrowing Zambia became a heavily indebted poor country. It was in the then president Chiluba... in his government where your President Mr Sata was that they went to IMF. And one of the conditions they agreed to was the sale of ZANACO (ZNCB)," said Magande, prompting the PF cadres to begin booing him. "Not ifyo mwalibelela ukutubepa (Not that, you are used to lying to us)," shouted the cadres as Magande appealed for silence.
Suddenly, there was confusion as the shouting cadres began chanting anti-Mwanawasa and pro-Sata slogans in an attempt to subdue Magande's voice. "Magande alila! Alila!" Chanted the cadres.
But Magande, who initially requested them to give him a chance to explain but to no avail, went ahead and addressed them amidst the confusion.
He explained in a dry voice amidst interjections from the crowd that had stopped following his speech that, as part of the programme, the government that time also agreed to implement programmes under the Poverty Reduction and Growth Facility (PRGF). "This programme was being implemented by president Chiluba until he left office. In 2001 President Mwanawasa promised to continue with that programme," he said. Magande said the Mwanawasa administration has now accomplished government debt and foreign debt, which has been written off. "I want to assure workers of ZANACO and depositors of the bank that the new owners won't chase anybody or close the banks," the hardly audible Magande explained to the inattentive crowd.
The cadres were also incensed with Magande's statement that food prices had gone down due the government's good agricultural policies. "Because of the good policies of government in agriculture, this last season Zambian farmers produced maize. We were able to produce about 33 million bags of maize in Zambia. And it's because of the good policies that food prices have come down in the country," said Magande, as the cadres responded: "Which food prices are you talking about? Wilatubepa (don't lie to us!)".
He further said government wanted more Zambians to continue depositing money in ZNCB. "Mrs Sinyangwe, you were saying that in spite of the programmes of government there is no economic progress. But if people who own accounts in ZANACO are depositing more money, where is this money coming from?" Magande asked. "We want to ensure that more Zambians are engaged in production and deposit more money like they are doing now."
On the IMF tax proposals, Magande said they were just proposals like many others. "I want to advise your leaders that next year they should make their proposals in good time. On unemployment, tomorrow I will be visiting a new mine which will start producing in the next few months," Magande said. "What do Zambians need? This time now in the rainy season, everybody must be in their fields to produce food."
However, Magande who seemed to have had a lot of issues to raise, with the crowd could not continue with his speech due to the deafening noise coupled with interjections from cadres that were booing him through songs. Earlier, Magande said it was an honour for him to address PF cadres. "I have had the privilege to address MMD leaders, Zambians through Parliament and in most of these speeches I have been able to bring forward the programmes of the MMD. I am honoured to address PF members," Magande said. "I am requesting Dr Guy Scott that next time they have one of their mass rallies anywhere in Zambia, I would like to be one of the speakers."
And Sinyangwe urged government to halt any more sale of state owned companies to foreign entities. "We must pause, conduct an audit of the consequences of our policies on the lives of our people. It is in this spirit that we are writing to you on a matter of grave national concern, your sale of ZNCB to a Dutch commercial bank named RABO. We are addressing this issue with the common knowledge that your decision has been inspired by some of your colleagues with misplaced faith in the wisdom of the IMF and the World Bank," Sinyangwe said. She said Zambia needed to encourage more Zambian participation in the critical and strategic areas of the economy. "If ZNCB has to be privatised it has to be sold to Zambians and not to any foreign entity. According to Bank of Zambia statistics, ZNCB is the largest commercial bank in Zambia in terms of deposits. In September 2004, ZNCB market share of total deposits was 23.3 per cent compared to 19.7 per cent for Barclays Bank, 16.9 per cent of Standard Chartered Bank, 10.3 per cent for Stanbic Bank, 10.1 per cent for Citibank and 7.1 per cent for Indo-Zambia Bank," Sinyangwe said.
Sinyangwe said ZNCB has the most extensive branch network countrywide and that foreign banks have been closing rural branches because of inadequate returns on capital. "ZNCB, however, posted a net profit after tax of more than K9 billion, despite a large provision for debts most of which are on account of government borrowing. The point being illustrated here is that ZNCB is inherently strong despite its vulnerability to mismanagement through undue government interference. Vulnerability to mismanagement can easily be overcome by elimination of government interference," Sinyangwe said. "While you have concentrated on selling the ZNCB, you have created more structural weaknesses in the economy by neglecting servicing of domestic debts. For example, whereas the government owed local suppliers an equivalent of US$240 million in September 2001, the debts to the local suppliers had grown to a staggering US$4 billion by September 2006."
Sinyangwe said the sale of ZNCB would not yield any tangible economic benefits to Zambia. "RABO would simply strip the Bank of its assets through accounting techniques. The buyer would also not guarantee the continued existence of the bank's rural and peri-urban branches. In addition, RABO would insist on massive lay-offs of employees, which would be a waste of well-trained banking manpower. Any lay-offs of employees would also add to the disastrous unemployment situation in the country," she said. She said the argument that the sale of 49 per cent shares to RABObank falls short of privatisation does not hold water. "Given the sale of further shares on the stock exchange, RABObank will be the largest shareholder and effectively the owner of ZNCB," Sinyangwe said.
On the IMF tax proposals, Sinyangwe said the nation expected to receive the benefits of HIPC. "But instead we are feeling the pressures of yet another period of belt tightening. Fuel prices are up, the 2006 budget has been overrun, police are not being paid on time and there are critical shortages of staff in such institutions as the UTH," Sinyangwe said. "We add our voices to those of business leaders, trade unionists and civil society calling for our government to think first and foremost of Zambian interests, most especially those of the poor and unemployed. We have marched here to demand, Mr Minister that you cut PAYE, VAT and other taxes on the ordinary Zambian."
She demanded that government introduces a windfall tax upon the copper mining industry in line with the past practice of many developed countries. "Immediately halt the leakage and wastage in public expenditure, and careless management of our hard earned tax. The indiscipline and corruption that gave rise recently to such headlines as "100 billion state cash disappears'," said Sinyangwe.
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