Thursday, 28 July 2011

Voters Beware: Your Next President Is About to Lie to You


The following article relates to the US presidential campaigns.  In light of the forthcoming elections in Zambia, this could serve as a cautionary note to Zambians who will be voting on September 20, 2011.
The dirty secret of presidential campaigns is that those crafting the candidate’s public pledges are usually not those who will be in charge of policy if victorious. As a consequence, voters who take to heart promises made between now and November 6, 2012, are likely to be disappointed – even (or rather: especially) if their candidate wins.
Just ask those who voted for President Obama. As a candidate, Senator Barack Obama repeatedly told Democratic primary voters that if elected he’d close the U.S. detention facility at Guantanamo Bay, Cuba. The base is still open today.
His predecessor, George W. Bush, was no different. In 2000, as a candidate, Governor Bush repeatedly promised Jewish and evangelical audiences that: “As soon as I take office I will begin the process of moving the U.S. ambassador to the city Israel has chosen as its capital,” – Jerusalem. He didn’t do that. Instead, every six months of his eight years in the White House, he utilized a waiver allowing him to postpone the Congressionally-mandated move. The U.S. embassy is today still in Tel Aviv.
Our two most recent presidents are no different from their predecessors. Indeed a close look shows a litany of broken campaign promises stretching throughout U.S. history.

Zambian election set for Sept. 20

Zambian President Rupiah Banda dissolved parliament on Thursday and set September 20 as the date for new elections in Africa's biggest copper producer.

"I've consulted with the Electoral Commission of Zambia and I am informed that most of the logistics for holding the elections are now in place," Banda said in a speech broadcast on state media.

Banda's Movement for Multiparty Democracy (MMD) is expected to win the election on the back of the southern African country's strong economic growth and the recent collapse of an alliance between the two main opposition parties.

Patriotic Front leader Michael Sata, a gruff populist who has been fiercely critical of Asian investment in the mining sector, gave Banda a close run. Read more...

Thursday, 21 July 2011

2011 MMD PARLIAMENTARY CANDIDATES

Austin Liato (Kaoma Central), Professor Geoffrey Lungwangwa (Nalikwanda), Michael Kaingu (Mwandi), Catherine Namugala (Isoka East), Kabinga Pande (Kasempa), Maxwell Mwale (Malambo), Dora Siliya (Petauke Central), Dr Brian Chituwo (Mumbwa), Gabriel Namulambe (Mpongwe), Kenneth Chipungu (Rufunsa), Joseph Mulyata (Mongu Central), Albert Mulonga (Lupososhi), Elijah Muchima (Mwinilunga West), Richard Mwapela (Kalabo Central) and Mundia Ndalamei (Sikongo) Dr Situmbeko Musokotwane, ( Liuwa seat) George Kunda (Muchinga, Serenje) Mutale Nalumango (Kaputa) Mkhondo Lungu(Lundazi)
Ronnie Shikapwasha ( Keembe) Eustarckio Kazonga (Vubwi), Peter Daka (Msanzala), Bradford Machila (Kafue), Felix Mutati (Lunte), Kenneth Konga (Chavuma), Kapembwa Simbao (Senga Hill) and Sarah Sayifwanda (Zambezi East).
Isaac Banda (Lumezi), Angela Cifire (Luangeni), Simon Kachimba (Luanshya), Mwansa Mbulakulima (Chembe), John Chinyanta (Mambilima), Given Mungomba (Mpulungu), Brian Sikazwe (Chimbamilonga), Daniel Kalenga (Kabompo West), Richard Taima (Solwezi East), Mwendoi Akakandelwa (Mangango), Mubika Mubika (Sinjembela), Moses Muteteka (Chisamba), David Phiri (Mkaika), Michael Mabenga (Mulobezi), Allan Mbewe (Chadiza) and Dr Chrisopher Kalila (Lukulu East).

Rosaria Fundanga (Chilubi), Charles Mututwa (Senanga Central), Trymore Mweenda (Chikankata), Dr Patrick Chikusu (Katuba), Dr Victor Mukonka (Monze Central), Noah Siasimuna (Siavonga), Muti Beyani (Sinazongwe), Laiveni Apuleni (Mbabala), Dr Canisius Banda (Mandevu), Daniel Chisala (Luapula), Japhen Mwakalombe (Chongwe), Chileshe Kapwepwe (Chinsali), Humphrey Musonda (Malole), Danny Chisanga (Mpika Central) and Sunday Chanda ( Kanchibiya).
Godfrey Pende (Bwacha), Jane Chileshe (Kabwe Central), Lawrence Zimba (Kapiri-Mposhi), Musonda Mutale (Mkushi South), Bornwell Matawe (Mwembsehi), Professor Luke Kanyomeka (Nangoma), Mushili Malama (Chitambo), Maxwell Kabanda (Serenje), Trudy Ng’andu (Chililabombwe), Christon Mwape (Nchanga), Spartan Msowoya (Kalulushi), Ronald Manenga (Chimwemwe), Itayi Chinkuli (Kamfinsa), Joseph Malanji (Kwacha), Divo Katete (Nkana) and Goodward Mulubwa (Roan).
Shadreck Musozya (Kankoyo), Evans Chibanda (Mufulira), E Chishiba (Kafulafuta), Anne Chungu (Lufwanyama), Michael Katambo (Masaiti), Kelvin Chaume (Bwana Mkubwa), Frank Ng’ambi (Chifubu), Rapson Kopulande (Kabushi), Emmanuel Mulenga (Ndola Central), Darious Mumba (Chama North), George Lungu (Chama South), Mtolo Phiri (Chipata Central), Victoria Kalima (Kasenengwa), Yotamu Banda (Chasefu), Dr Chisha Bulangeti (Pambashe), Dr Chitalu Chilufya (Mansa Central) , Jonathan Kapungwe (Chipili), M Mpampi (Chiengi), and Sunday Maluba (Mwansabombwe) Sylvester Chimfwembe (Bangweulu), Chileya Kapekele (Chifunabuli), Daniel Chisala (Luapula), Donald Chilufya (Chawama), Yohane Mwanza (Kanyama), Muhabi Lungu (Lusaka Central), Bernard Mpundu (Lukashya), George Mwamba (Lubansenshi), Mwalimu Simfukwe (Mbala), M Songolo (Mfuwe), Brian Mundubile (Mporokoso), Danny Chingimbu (Kabompo East), Stephen Masumba (Mufumbwe), Newton Samakayi (Mwinilunga East), Lucky Mulusa (Solwezi Central), Prisca Pulu (Zambezi West), Joshua Simuyandi (Pemba), Chisangano Malungo (Gwembe), Sebastian Hambokoma (Dundumwezi), and Sikaduli Munsaka (Kalomo Central).

Siachona Simalonga (Choma), Jelasi Sikonda (Katombora), Lloyd Jembo (Mapatizya), Lukulo Katombola (Livingstone), Bevin Mweene (Magoye), Maxwell Mwiinga (Mazabuka Central), Bbuku Tsibu (Bweengwa), Isabel Nanja (Moomba), David Diangamo (Itezhi-Tezhi), Misheck Mutelo (Lukulu West), Mwangala Mahopo (Luena), Catherine Akayomboka (Nalolo) and Frank Kufakwandi (Sesheke).

Elizabeth Molobeka (Kawambwa), Besa Chimbaka (Bahati), Dr Jacob Chongo (Mwense), Dr Peter Machungwa (Kabwata), Faustina Sinyangwe (Matero), Marjory Mwape (Munali), Major Celestino Chibamba (Shiwangandu) MP Josephine Limata (Luampa)

Ben Mwila (Nchelenge) Levy Ngoma (Sinda) Patrick Ngoma (Feira)Keith Mukata ( Chilanga) Nicholas Banda (Kapoche) Sydney Chisanga (Mkushi North), Vincent Mwale (Chipangali), Whiteson Banda (Milanzi), Forrie Tembo (Nyimba), Paul Sichamba (Isoka West), Clever Silavwe (Nakonde), and Humphrey Mwanza (Solwezi West).
Deferred adoptions are for Kasama Central and Kantanshi constituencies.

Wednesday, 13 July 2011

A Note All Aspiring Presidential Candidates Of Zambia.


Note to all aspiring presidential candidates The way forward for Zambia is to Reduce corporate tax to 20%, Income tax 15% and VAT 10%
It is paramount that we reduce government expenditure, cut cost on travel, vehicles and fuel, telephones, size of govt and politiking. Yes, you'll have revenue loss initially, but you'll be setting and creating a Real Boom for the future. Most corporates will relocate their HQs to Zambia boosting employment for many of nationals. People will have real money to save and invest (curbing corruption) and goods and services will be affordable creating a very attractive economic environment. No need for special incentives. We should not live and believe that government's (GRZ) over blown expenditure is normal and should be acceptable. Most of revenue goes to consumption. How much does GRZ spend on travel, fuel, communication, entertainment, workshops etc? What is the size of cabinet, is it necessary? Do we need Distict Commissioners? These are the questions you should be asking. Let's think of running govt the same way one would run a profitable geared company. Costs cost cost, as at now we bleed kwachas as if there's no tomorrow.
Lets make a simple comparison of what our priorities are as at present. The cost of a FULL HOUSE TOYOTA VX IS USD160,000= the cost of a modern incubator is USD80,000= the cost of the new COMPUTERLINKED TB DETECTION MACHINE from Germany is USD13,000= landed and cleared ITS PRIORITISATION. None of the manifesto's says they going put a MORITORIAM on PERSONAL TO HOLDER VEHICLES and buy all the necesaary health and education equipment ITS NOT A QUESTION OF SUSTAINABILITY ITS A QUESTION OF SERIOUS BOTTOM UP DEVELOPMENT PLANNING. The challenge is to learn NOT TO ENSLAVE AND INDEBT FUTURE UNBORN GENERATIONS at the EXPENSE OF ALREADY BLOATED STOMACHS.

THE "RULED" ZAMBIANS

The painful struggle that the Zambian people have to go through is to live with a perpetual hope of a change that will bring them a basic living that provides them with the basic comforts of a modern society almost fifty years after their independence from foreign rulers.


What makes a Zambian survive the squalor and the day-to-day disappointments in service delivery that he is confronted with is an escape into a hope that a single person or political party would come and address these service delivery inadequacies. They subconsciously almost discount themselves from this change and only feel their participation in it is when they cast their ballot after each five-year term.

A Zambian, especially in urban areas, seeks refuge in a mere hope whilst at the same time the happenings around him provide the opposite.

Evidently, there is a general feeling to exaggerate this hope. People are systematically made to fail to interrogate and demand for the basic services that a government should provide solely because the leadership made or makes it almost impossible for the people to have a clear channel to confront real issues that challenge them daily.
The local government system where the grass root could provide such an avenue is practically dead and if it exists is corrupt, irrelevant , unprofessional,is neglected or be-riddled with incompetence and partisan complacency.


Because Zambians do not have clear channels to directly and emphatically influence national development, they spend most of their time in misdirected petty "political " debates which usually take the form of discussion provoked by newspapers or tabloids that, most of the time, seek out mere statements from political leaders about irrelevant matters that have absolutely nothing to do with national development. This in a sense provides them with apparent entertainment and a sense of euphoria and nothing else.


This lack of proper interrogation that puts leadership to task creates a political system that is moribund and almost unaccountable to its own people. In turn, this leaves the country with very poor service delivery systems. The real politics revolve around perpetual electioneering in a five-year mandatory ruling term. Only a few projects that are donated or supervised by foreign donors are the only achievements.

As already alluded to, this scenario is mainly caused by a deliberately unstructured democratic system.

Unless there is a deliberate system or systems that acknowledges that people need services, Zambia will remain a poor country due to a poor and unprofessional leadership that cannot deliver to their people within a given mandate of rule.
It therefore also translates that the leadership have a questionable mandate to rule the country because they are not so accountable to their own constituencies.

The basic question is therefore who are they ruling for and how are they able to account to whoever they are supposedly ruling?

Tuesday, 12 July 2011

The Traditional Ceremonies of the different tribes of Zambia

TRIBES OF ZAMBIA

CENTRAL PROVINCE
CHIEF         DISTRICT      TRIBE    CEREMONY   MONTH
Bisa/Swaka/Lala ChiefsMkushiBisa/Swaka/LalaInchibwela September
Snr Chief MukuniChibombo LenjeKulamba Kubwealo October
Chiefs Mumba and Kaindu Mumbwa Kaonde Musaka/Jikubi Septembe
Chief Chibuluma Mumbwa Kaonde/Lla Likumbi Lyamalumbe October

COPPERBELT PROVINCE
CHIEF         DISTRICT      TRIBE    CEREMONY   MONTH
Snr Chief Mushili Masaiti Lamba Chabalankata November
Chief Machiya Mpongwe Lamba Chitentamo/Nsengele November

EASTERN PROVINCE
CHIEF         DISTRICT      TRIBE    CEREMONY   MONTH
Par. Chief Mpezeni Chipata Ngoni N'cwala Februrary
Par. Chief Gawa Undi Katete Chewa Kulamba August
Snr. Chief Kalindawalo Petauke Nsenge Tuwimba October
Snr. Chief Nsefu Mambwe Kunda Malaila October
Snr. Chief Kambombo Chama Tumbuka Kwenje October

LUAPULA PROVINCE
CHIEF         DISTRICT      TRIBE    CEREMONY   MONTH
Snr. Chief Mwewa Samfya Ng'umbo Kwanga October
Snr. Chief Mununga Chienge Shila Mabilla October
Snr. Chief Mwata Kazembe Kawambwa Lunda Mutomboko July
Snr. Chief Puta Chienge Bwile Bwile September
Snr. Chief Mushota Kawamba Chishinga Chishinga Malaila October
Chief Matanda Mansa Ushi Chibuka October
Chief Mabumba Mansa Ushi Makumba August

LUSAKA PROVINCE
CHIEF         DISTRICT      TRIBE    CEREMONY   MONTH
Snr. Chief Mburuma Luangwa Nsenga-Luzi Mbambala November
Chief Bunda Bunda Chinyunyu Soli Chibwela Kumushi November
Chieftainess Chiawa Kafue Goba Kailala September
Chief Mabumba Mansa Ushi Makumba August

NORTHERN PROVINCE
CHIEF         DISTRICT      TRIBE    CEREMONY   MONTH
Para. Chief Chitimukulu Mungwi Bemba Ukusefya Pa Ng'wena August
Snr. Chief Kopa Mpika Bisa Chinamanongo September
Snr. Chief Chunga Luwingu Bemba Mukulu Pembe August
Snr. Chief Muyombe Isoka Tumbuka Vikamkanimba September
Chieftaness Nawaitwika Nakonde Namwanga Mulasa September
Chief Nabwalya Mpika Bisa Bisa Malaila September
Snr. Chief Kafwimbi Isoka NNamwanga Ng'ondo November
Chief Mwenechifungwe Isoka Mfungwe Chambo Chalutanga September
Chief Chiwanangala Chilubi Island Bisa Chisaka Chalubombo September
Mambwe/Lungu Chiefs Mbala Mambwe/Lungu Mutomolo June
Chief Mabumba Mansa Ushi Makumba August

N/WESTERN PROVINCE
CHIEF         DISTRICT      TRIBE    CEREMONY   MONTH
Snr. Chief Kanongesha Mwinilunga Lunda Chisemwa Cha Lunda August
Snr. Chief Kasempa Kasempa Kaonde Nsomo June
Snr. Chief Kalilele Solwezi Kaonde Kupupa July
Snr. Chief Ishindi Zambezi Lunda Lunda Lubanza August
Snr. Chief Sikufele Kabompo Mbunda Lukwakwa October
Snr. Chief Mushima Mufumbwe Kaonde Makundu August
Chief Mabumba Mansa Ushi Makumba August

SOUTHERN PROVINCE
CHIEF         DISTRICT      TRIBE    CEREMONY   MONTH
Chief Mabumba Mansa Ushi Makumba August

WESTERN PROVINCE
CHIEF         DISTRICT      TRIBE    CEREMONY   MONTH
Snr. Chief Kalunga Kabompo Luchazi Chivweka June
Chief Chiyengele Kabompo Mbunda Mbunda Liyoyelo July
Chief Kapijimpanga Solwezi Kaonde Kunyanta Ntanda July
Chief Chizera Mufumbwe Kaonde Ntongo September
Chief Matebo Solwezi Lamba Kuvuluka Kishakulu September
Chief Makumbi Solwezi Kaonde Kufukwila May
Chief Mumena Solwezi Kaonde Lubinda Ntongo August
Chief Mukuni Livingstone Toka Leya Lwindi January
Chief Monze Monze Tonga Lwindi Gonde July
Chief Chikanta Kalomo Tonga Chungu October
Chief Musokotwane Kalomo Toka Leya Lukuni Luzwa Buuka August
Chief Mutondo
Chief Siachitema Kalomo Tonga Maanzi Aabila Lwiindi October
Litunga Lamboela Senanga Lozi Kuomboka Nalolo May
Chieftainess Mboanjikana Kalabo Lozi Kuomboka Libonda May
Chiefs Mutondo and Kahare Kaoma Nkoya Kazanga July

Zambia Corrupt Or Not?

African nations such as Zambia are often seen as grossly corrupt. Yet it is corporate tax "avoidance" on the part of mining companies that costs the nation hundreds of millions annually, while lining the pockets of middle-men in countries such as Switzerland. And the much-lauded Extractive Industry Transparency Initiative (EITI) may help - rather than hinder, this reality.

Zambia recently became the 26th country to publish the EITI report, disclosing payments from mining companies for the year 2008. The EITI standard is meant to "facilitate transparency" by assessing net discrepencies between resource rents, for example: royalties and taxes, remitted by multinationals and received by governments.

The primary intention of the EITI report, backed by many of the world's major extractive or resource-seeking multinationals including Shell, Chevron, Vale, BHP Billiton, Anglo-American and others, is to eliminate corruption by shining a light on the flow of revenue. Describing companies as "complicit" in corruption limited to the criminogenic environments in which they are required to operate, the EITI system claims that reduced reputational risk is a tremendous upside for foreign investors and corporate entities.

Elilminating corruption?

Currently, Zambia is one of twenty-four EITI candidate countries, of which more than half are African, including Tanzania, Gabon, Cameroon, the Democratic Republic of the Congo, Chad, Mali, Mauritania, Sierra Leone, and Burkina Faso - among others. Already, five of eleven EITI "compliant" nations are African - many of them surprising choices - think Nigeria, Niger, and Liberia.

According to Clare Short, head of the EITI system and former British secretary of state for international development, a ministry created under then-Prime Minister Tony Blair - who announced the initiative in 2002 as a joint project of the UK and the World Bank - once a country joins EITI, all companies operating within the "host" country must make full disclosures.

The logic goes that, so long as there is disclosure of cash payments within national boundaries, transparency will act as a natural sanction - diminishing the potential for, and realisation of, corruption.

It is a logic that appears to bank on political or "demand-side" corruption, chiefly innate to the developing country's character - with corporations simply "going along" with the system - a kind of "when in Rome" response.

But the EITI theory is vastly different from the reality and has more to do with corporate and "first world" country supply-side corruption. Zambia's first report, for instance, revealed that mining companies remitted $463 million in payments to the government in 2008. The EITI report claims "significant discrepencies" noting a net total of "unresolved discrepencies" of $66 million.

In that same year - 2008, much of Zambia's exported copper, almost half of which was earmarked for Switzerland, never arrived at its destination - disappearing into thin air. Moreover, the pricing structure for Swiss copper - remarkably similar to Zambia's exported copper - was six times higher than the funds Zambia received, facilitating a potential loss of some $11.4bn. This is especially interesting when taking into account that Zambia's entire GDP for 2008 was $14.3bn.

Glencore's lucrative policies

This type of corporate corruption - known as transfer mispricing, made headlines recently when a leaked report authored by Grant Thornton at the request of the Zambia Revenue Agency (ZRA) unpacked how the Glencore-controlled lucrative Mopani Copper Mines (MCM) - a company which declared no profits, was cheating the country's tax base of copper revenue.

The auditors disclosed that MCM tried "resisting the pilot audit at every stage", rendering them unable to access crucial data in many instances. MCM's chief executive, Emmanuel Mutati, claimed that the audit was not accurate, precisely because data was inaccurate. Yet Glencore, the world's largest commodity trader, controlling 50 per cent of the global copper market, is confident that MCM will be "exonerated".

In all probability, Glencore will be saying that transfer pricing is perfectly legal and central to trade. But the nature of "arms-length transfer pricing" within the current deregulated global financial architecture, enables multinationals (conducting as much as 60 per cent of global trade within - rather than between - corporations) to "self-regulate" pricing.

So, though pricing, in theory, is determined according to "market values", in reality, the "corporate veil" facilitates tremendous mispricing when subsidiaries of the same company trade with one another - the means through which Glencore allegedly purchased grade +1 copper well below market prices, with MCM allegedly preferring - all too often, the lowest price offered by a Glencore subsidiary, described by the audit as an act likely for buyers, not sellers, who would experience diminished profits.

Glencore International AG, based in Switzerland, the world's leading secrecy jurisdiction, handpicked by Glencore founder and notorious commodity trader Marc Rich, further enables the company to take further advantage of little or no taxation.

Tax havens such as Switzerland are essential to resource-seeking corporations operating in Africa: more than 85 per cent of asset portfolios for sub-Saharan Africa passes through tax havens. In Zambia, MCM's structure - like that of Vedanta and others, keenly utilises tax havens as vehicles for shell companies able to access legal and financial opacity tools including banking secrecy, thin capitalisation, little or no taxation, zero disclosure of company accounts, use of nominees, and - best of all - high-level client confidentiality, all of which is entirely legal.

Mining and tax havens

Thus, however illicit, by outsourcing the commercialised sovereignty of tax havens, transfer mispricing, when realised through tax avoidance, is legal within select jurisdictions. The financial geography of MCM is located almost entirely in tax havens: though a Zambian company, it is 73 per cent owned by Carlisa Investments (a British Virgin Islands company, 82 per cent owned by Bermuda-based Glencore Finance, which is 100 per cent owned by Glencore International AG). MCM's mining partner, holding 18 per cent of Carlisa, is another mining entity active globally and in Zambia - First Quantum.

And while the extractive industry is being promoted rather aggressively as the primary vehicle to kickstart Zambia's real economy, mining companies generate just 2.2 per cent of revenue collected by Zambian authorities, with the bigger percentage of tax derived from withheld taxes paid by workers. The result? Just 4.4 per cent of actual taxes remitted from the already minute sum paid by mining houses comprises corporate tax. This is a particularly nifty boutique tax product called Total Tax Contribution, created by auditing firm PricewaterhouseCoopers, which helps corporations avoid taxation.

Zambia's government acknowledged that the country missed cashing in on the 2004-2008 commodity boom, when copper prices more than tripled. But companies like MCM don't have to pay the new royalty rates of three per cent - as 20 year stability clauses from secretive development agreements issued soon after privatisation provided the company with arguably the world's lowest royalty rate at 0.6 per cent. This agreement will remain in force until the year 2020. Worse still, had these agreements not been leaked, it would never have come to light that corporate tax rates were effectively zero, thanks to deferments and royalties.

MCM is the largest copper mining operation in Zambia - and Glencore certainly stands to benefit from locking down the copper market, not simply because copper underwires the modern world, but also because it is fundamental to renewable energy. In fact, shortages are estimated to drive up the price of copper from it current historic high at $9,000 per tonne, to that of about $11,000 by 2013, elevated in large parts by the demands of emerging nations such as China, the world's largest consumer.

Solutions to company operations

Thus, catching revenue leakage through EITI - off the mark by billions - is impossible because it does not focus on what multinationals ought to have paid, only what they have paid, and it never investigates the means through which corporations were able to circumvent taxation.

There are several reasons for this: EITI allows inconsistent standards, limited to national boundaries, despite the international nature of multinational economic activity. And the EITI system, for instance, provides national governments with choices that fragment the legitimacy and accuracy of conclusions - even insofar as they attempt to track cash payments, including whether reporting is mandatory, whether auditing is required, what should be published and the accounting policies used, materiality levels, et cetera.

Aggregated templates used by multinationals - and even the EITI system, prevent scrutiny, for example, of where problems are arising, where they are replicated, how they are realised - whether it has been identified, if problems are being sorted out, and how. The EITI system would easily allow another subsidiary of the same mining company, based in another jurisdiction, to make a corrupt payment to a politician in Zambia. It would allow a company within Zambia, created for shell purposes, to be paid for "services rendered", diminishing tax. Thin capitalisaton would allow for one subsidiary of the same parent company to make high interest loans to the host country subsidiary, diminishing taxable profits. The possibilities are endless - and often utilised.

Of course, there are many solutions, namely that of corporate country-by-country reporting (CbC), created by Richard Murphy, a founder of the Tax Justice Network. This would involve real natural sanctions prohibiting companies from artificially using tax havens (by disclosing the lack of substantial economic activities in these jurisdictions) while also limiting the scope of transfer mispricing.

Elements of CbC include the names of each country in which the multinational operates; the names of all companies trading in each country in which the company operates; the financial performance in each country in which it operates; sales between third parties and other group companies; purchases split between third parties and intra-group transactions; labour costs and employee numbers; financing costs; pre-tax profits; deferred taxation liabilities for the country at the start and close of each accounting period; the actual payments to the government; the tax charge for the split between current and deferred tax and so on.

It is a method inspired by a system already in place in the US. Certainly, critics will claim that transfer mispricing is always possible, but the difference between CbC and EITI, is that with the former, it is exceedingly difficult, whereas with the latter, it is highly probable.

World Bank's push

So why does the EITI allow for so many potential faultlines, vacuums and opt-outs? Like Chile, Zambia historically was one of the world's leading copper producers, extracting and exporting some 700,000 tonnes annually during its "golden peak". Currently, Zambia has hit the 800,000 mark, pegged to exploit more than 1 million tonnes per annum in the next year or so.

Way back when Zambia's copper industry was being privatised, the World Bank pushed for the lowest possible tax and royalty rates, providing companies with the type of secretive development agreements mentioned above. The Bank claimed that the limited intervention of the Zambian government rendered the process the most successful in the region.

Describing Zambia's new system imposed by the "arm-twisting of the World Bank", a 1996 New York Times piece stated: "All exchange controls, tariff barriers and food subsidies have been dropped in the shock-treatment switch-over to rampant capitalism … Virtually everything the state owned is for sale."

For African citizens, the World Bank, perceived as the source of devastating structural adjustment programmes created conditions still haunting countries like Zambia. Until mid-1995, the Bank itself refused to acknowledge the "C-word" - corruption, claiming such to be political and beyond the Bank's mandate.

This was despite the reality that 60 per cent of every dollar provided in external loans left the continent through illicit flight.

It has yet to factor illicit flight in accounting models. Had this been done, sub-Saharan Africa would be unpacked as a global net creditor - as the Bank itself disclosed in a report many years back.

As Treasure Islands author Nick Shaxson reveals in his book, though looted wealth is transformed to private wealth, the empty hole in the public purse is transformed to a public debt. He cites the example of Africans "bearing" the public debts by describing the case of a pretty Angolan girl, forced to bear an infection rotting a hole the size of a golfball in her cheek, because she could not access public healthcare.

Meanwhile, EITI's other backer, the UK, is host to more than half of the world's tax havens: three as British Crown Dependencies (such as Jersey - the corporate hub from which Glencore recently launched an IPO), seven as British Overseas Territories (including world famous hubs such as the Cayman Islands, British Virgin Islands, and Bermuda - where Zambia's multinationals have incorporated and maintained subsidiary entities), and 21 as members of the Commonwealth.

The City of London, a ring-fenced financial district, is one of the world's leading tax havens, previously described by the UK's Serious Fraud Office (SFO) as "head office" to some of the world's major tax havens.

Put simply, whether or not we choose to acknowledge it, these actors - including the Organisation for Economic Development and Cooperation (OECD) - comprising the world's most powerful nations and its leading donors, may be seen as benefitting from the impoverishment of African regions.

Capital losses

Each year, Africa loses a minimum of $148bn - almost four times the sum of foreign aid it receives, to capital flight - of which 60 per cent is due to corporate mispricing. Clearly, the solution toward enabling African countries to recover their lost revenue and become economically independent, is to block revenue leakages, rather than provide further loans and grants characterised by conditionalities that undermine development.

Yet, even as 60 per cent of non-grant revenue is generated by resource rents, constituting a main source of income for African nations, many of them "rent-seeking" and dependent on resources for their tax base, the OECD has not implemented CbC, preferring the "arms-length system" created by the International Accounting Standards Board (IASB) - itself operating from a tax haven, founded and financed by the world's leading accounting firms - such as PwC - and all of whom compete with another to create the best tax avoidance products for corporations.

Nick Shaxson said this to me in a recent email:

The role of the OECD is particularly strange in this respect. It jealously guards some of the main mechanisms and models for transparency and information exchange with respect to international financial flows, and with respect to international tax. And yet these models all, in important ways, significantly disadvantage developing countries.

It is a disadvantage, locked into the EITI system, designed to present an illusion of accountability where none exists.

So, while EITI may be good news for the companies involved in Zambia, casting them in a clean light, the same cannot really be said for the country's citizens who are being shortchanged.

Short recently claimed that the EITI model, still evolving, would be complemented by such measures. But intimated along with this statement is the notion that EITI itself will not lead this charge. So much for transparency.

Khadija Sharife is a journalist and visiting scholar at the Center for Civil Society (CCS) based in South Africa, and a contributor to the Tax Justice Network. She is the Southern Africa correspondent for The Africa Report magazine, assistant editor of the Harvard "World Poverty and Human Rights" journal and author of "Tax Us If You Can Africa"

Sunday, 10 July 2011

The New Logo And Slogan

The New logo and slogan of the national tourist board was launched with all the hype with attendance of Congolese artist Fally

Some controversy was doing the rounds as people debated the new logo and slogan. This is would be understandable seeing that the last logo and slogan was with us from the 1970's so change did not come easy. However after settling it seems both the logo and the slogan is warming to the people.

People are now awaiting an aggressive marketing campaign both internationally and locally.

We from Zambia Insights have embraced and welcomed the re-branding and hope that it will now build on the already growing to

Old Man Maxwell Mututwa Has Died.

Former Barotse Royal establishment Prime Minister Ngambela Maxwell Mututwa has died.

The 92 year old man who was recently arrested following the riots In Mongu died last night.

Mututwa an influential voice in the politics of the Barotseland seen by most in the western province as a father figure.

The cause of death is not yet known.

Bo Mututwa who was arrested after the riots in Mongu was the first to be released after an outcry from the people considering his age and illness. While under arrest he was hospitalised but later discharged before he was finally released from prison.

Before his passing he had asked government to accord him a full explanation as to the circumstances leading to his arrest.

From us at Zambia Insights we convey our condolences to the family, the people of Western province and the Nation at large.



Saturday, 9 July 2011

Saki Goes MMD?

Rumour has it that ULP president Sakwiba Sikota has tabled an application to contest the Livingstone parliamentary election on the MMD ticket. The story seemed to be circulating and doing the various media rounds.

Hon Sakwiba Sikota was quoted as stating that he would not contest the parliamentary elections stating "at the level I have reached I should be contesting national politics" It is however not clear if he has abandoned his own ship of United Liberal Party as he made no reference to this when speaking to QFM.

Efforts to try and reach Hon. Sikota were futile as he did not answer his phone.

ZP or Buju Slag Yapa Zed

ZP (Zambia Police) slang

This is Nyanjaslang that has been passed on from Generation to Generation in the Military and Police Service Training Academies. All service men and women who join the Force usually ‘Graduate’ from the academies with at least full knowledge of “Police Jargon” incorporated into Nyanja as well as its distinct accent. This is evident when one speaks to or hears Police/Military personnel conversing. This also makes it easy to identify them even when in plain clothes from the manner in which they speak.Also ,Members of the public or civilians humorously refer the initials 'Z.P' in Nyanjaas "Zabwino Palibe" (Nothing Good),due to the manner in which the Police 'Man Handle' Suspects/convicts during custodial situations.

  • Anso
    Again/In fact/(may be used as question tag) - Wabwela Anso?/si ndiwe anso?
    Boma
    Refers to Zambian Government.
    Bwana
    (used to show respect) alternative for 'Boss'
    Contravening
    Any Traffic offence.
    Choncho
    isn’t it?/Fast: - si choncho ati ndiwe una tundila ku galimoto ya Boma?/Ubwele choncho ku station otherwise nima mbama chabe uka fika.
    Galimoto
    Motor Vehicle.
    Hotel Luanda
    Kabwata Police Station Jail/Cells.
    Inde
    As you wish:e.g. Captain:Uyende anso ku Lilayi naba silikali ba tatu mu lete mpolyo mpolyo,Junior Officer:(Salutes)Inde Mwami!
    Ku Chimwa/ku lakwa
    To be Guilty: e.g. wa chimwa iwe,uza kamba ku sogolo.
    Ma Wenge
    Handcuffs
    Mwami
    (used to show respect) Cop/High Ranked Officer.
    Mu Silikali/Ba Silikali
    May refer to a Soldier or Policeman.
    Mpolyo Mpolyo
    Gun/AK 47 Rifle.
    Longa
    Arrested/locked up. Literately the act a suspect of being thrown into a Police Van.
    Remind
    Literally 'Remand' - Pre-charge detention.
    'Uza kamba ku sogolo'
    ZP Miranda Rights – "You will speak when you get to the Police Station". This is synonymous with the English Miranda rights; “You have the Right to Remain Silent” the phrase is usually used during custodial situations at the point of arrest.
    Z.P
    Zabwino Palibe.(Ain't Nothing Nice)


[edit]ZP - Police/Military slang Language Mix

This kind of language(*Relatively Unheard of*) is a mixture of the native Zambian languageNyanja with common ZP(Zambia Police) Phrases.It is made up of mating zp Phrases with Nyanja words producing a recipe that confuses people who know little of ZP slang words/Phrases. Below is a comparison of two sentences with same meaning one in native Nyanja and the other being the ZP/NyanjaMix.[The language is spoken with an accent just as the Zambian Police Service officers do].

  • Native : Boi,ine manje na yambapo ku yenda bond.
  • ZP - MIX : Boi,ise naku chaya Gillete ku bond.

[edit]

Other Zambian Terms or Phrases

Other Terms/Phrases

  • Kwendo mu Tank
    stepping on it/or driving at high speeds/driving off.

e.g.:Pamene wenzo tuma phone nenze kwendo mu Tank mu Cairo Road.

  • Kwendo mu Njila
    Going/One who is always on the move/the act of leaving
  • Gillette
    leaving /act of running away[The term originated from the Sports show “Gillette World Sport Special” as a result of its association with sporting activities such as races/running/sprinting,it was adopted as a term to mean running away and later on to mean leaving/going]

e.g.:Mu Boys ana chaya Gillette baka pokola/Na chaya Gillette.

  • Mau lendo
    leaving/trip e.g.:Ali mau lendo pamene tikamba so.
  • Shot
    steal/leave/throw e.g.: Bani chaya shot cellphone/Na chaya shot ku bond boi/Banamu chaya shot malegeni ku matako.
  • Yenza
    steal e.g. Bani Yenzela cellphone baka ponya mu station.
  • Lusaka
    To get conned/steal – "bani chaya Lusaka ma tyre ya motoka"/"Ma boys bamu Katondo bani chaya Lusaka phone yamene na gulisa".
  • Kitwe
    To get fucked in the ass.

Zambian Brand Name Generalisation

Brand Name Generalisation

Around the world, common brand names are used to identify products in their category,e.g. Sellotape for clear adhesive tape or Panado for any Pain killer Tablets and as a result of popular usage, this eventually becomes their Generic name(noun) which is a process called Genercide.[1].Brand names as a result of this have literally lost their status as ‘Brand Names’ in their relevant categories.

  • Honda
    Any Motorbike/literally Honda is the default Noun for motorbike.
    Boom
    Despite ‘Dynamo’ being popular back in the days. Any Detergent Paste is called ‘Boom’ by default which is a local popular soap brand.
    Shake-Shake
    literally any opaque Beer.
    Cobra
    Literally any Floor Polish product.
    Colgate
    Literally any toothpaste product
    Panado
    Any Pain killer tablet.
    Surf
    Any Washing Powder product.
    Salad
    Literally any Cooking Oil Product.
    Target
    Literally any insecticide spray.
    Vaseline
    Literally any Petroleum jelly product.

Know Your Zambian Slag! Part 1

Phrases

Album - (Offensive Term)Refers to Pregnancy/Birth – That girl just released an Album.
Ati how? - How are you? Very informal slang. Origin ‘Ati bwanji’ became ‘ati bwa’ and ‘bwa’ was translated to English ‘how’


Ba ka’amba - from ‘ba kalamba’ big man. Generally used to address either a friend or one whose name you don’t know
Ba'ane - Good friends. genrally used to address very good friends or in jest to not so good friends
Bali - Father/Older Man.
Ba Rwanda (can be derogatory )- Beer Scavengers. - usage arose at the time when Zambia had a lot of refugees from Rwanda in the
Balloon Type - Lady with Big Bums/Back side/Hips
Brush - sex
Better TV - A prostitute. [from a song by local musician Danny of the same title]
Bells - Length of time (usually long) or time of day. derived from a bell ringing at the top of the hour. e.g. Its 6 bells right now i.e. 6 am/pm. E.g, It's been bells since I saw him.
Blazed - To get drunk / high on drugs
Black album / blue movie - Porn movie
Black table - A table laden with lager beer Bottles, usually castle or mosi
Bolt - to run
Book - leave a location e.g. "Buta" lets book from here its getting "dry".
Box - reference to any area that is confined such as a room or a location.
Buta / Bootah - in reference to brotherhood. from "boet" or "boetie"
Bululu / Bururu - Relative from Afrikaans "broer" meaning brother
Bwete - (Big Ass) A simultaneous shaking of a Woman/lady's Behind when walking.
Belegede - Drunk
Kanasaki (Kan-i-Saki) - Get Head -- From the word Kawasaki


Cabin - House/Home.
Chakolwa - an alcoholic
Chamba - Marijuana/cannabis
Chux'd - To be detained/imprisoned by the Police.
Choncholi - rather derogatory reference to a Chinese person.
Chow(chau) - Eat.
Clap - to finish e.g. I've clapped all my homework so we can go play football now.
CNN / BBC - In reference to gossip and its ability to spread like the news
Coolie (Kuli) - An Indian
Colgate - Refers to ANY toothpaste
Crop - To fall down
Cut - 1)Going/Leaving e.g. I'm cutting cabin, its already 3 a.m. 2)Drunk e.g. My father was cut last night after the party, I had to drive him home. 3) What's cutting? = what's happening?


Damage - in reference to money spent. How much damage did you do last night? - 1 million Kwacha on dinner.
Departure lounge - someone very ill and most likely on their death bed.e.g. one with HIV could be said to be in the departure lounge.
Dicey - Tricky
Dop / Dope - Alcohol
Dos - To sleep
Doss / dossed - terminally ill (derogatory) used to describe persons suffering from AIDS (gossip type)
Down it - Bottoms up - drink at one go
Dry - Boring/Lame
Dyonko - sample/taste
Ek Se - Originally an Afrikaans term which means " I say " e.g. Ek Se what time is it?Its meaning has literally changed to refer to a friend or some one of your age you don't know.
Eh Eh/Ah Ah - An expression used to describe 'being surprised'. What the hell? E.g, Eh eh, didn't he "prang" his ride?.
Falisa/Falisis - ambiguous reference to any object, situation or action (popular among Copperbelt Kaponyas)
Fastele - Fast - From a cartoon Comic in local newspapers, 'The Post' from back in the days.
Father - used to call a man’s name you don’t know/Elderly Man(commonly use by call boys/Bus conductors)
Flat - Annoyed or upset or angry.
Flush - The act of aborting an unwanted pregnancy.
Fodia - Cigarette
Flamingo - (sexual position - Similar to Doggy Style) where the woman stands then bends over and touches her toes.
Free Kick - (Offensive) To abort a pregnancy as in She had a free kick
Frozen chicken - (sexual position) sexual position where the woman is lying on her back and her legs are over the man's shoulders.
Fuzi - side Kick


Gabon - anything bad, in reference to the Gabon air disaster of 1993 in which Zambia soccer player lost their lives.
Gon’ga - noun. an imitation product. verb. To be swindled/ugly girl.
G.P - Game Plan, i.e. organizing a plan of action
Graze - Food or the act of eating
Gun Powder - Groundnuts
Gooza / Guza - woman/lady
Gelo (Chi gelo) - A girl/woman
Gwamo - Go/Leave (Na gwamo - I have gone.)


Hammer - 1) to beat
Hard - to be considered something special or good e.g. That Items is Hard Ek Se.
How do you make it? - What time is it?
Hule - Prostitute


Item - Refers to a thing/anything.


Jam - to play e.g. We are jamming football tonight at the school football pitch.
Joll - 1)Come or arrive at a destination. e.g. Are you jolling to the party tonight? 2) In other parts of Africa joll can refer to a party or party atmosphere.
Joint - 1)place or location. e.g. This joint is nice. 2) Weed
John Cena - really big local buns
Kaponya - A street hawker or any individual found roaming the city streets aimlessly. Usually very vulgar
Kabwata - Body builder or well built muscular man commonly referred to as "chiKabwata" - named after Lusaka's first and oldest gym located in Kabwata Township
Ka ndile - A broke person that feeds off others and tries to keep up appearances like he/she is the spender
Ka nduli - Hot girl.
Kembo - A person of no substance (insulting) eg. "Iwe Kembo!" English translation "Hey Jerk/funny guy/popper!"
Ku ma 'dizzy’ - Bar/Tavern
Ku ma yard [yadi] - Suburbs. [literally at the yards]
ka pulp - Nshima.
Kajansa - Masturbation e.g. - Alibe Gelo,ama chaya che kanajansa daily.
ku dyela - Having a good time e.g. wa dyela, tina dyela
Ku yupa ma banana - Masturbation e.g. - Ninamu pezekeza Ayupa ma banana mu Toilet.
Kui Typa - Bemba Word for Fight.
Kapeta - Body builder or weightlifter
Kuli (coolie) - An Indian.
Ka saka - a bag of money.
Kopala - an indigenous citizen of the Copperbelt province (Usually an unruly member of this group of people)


Long Nose /4 Corner - formal shoes with a long front-end/4 Squared heal.
Laliga - Something good
Laka - nice, good, great. From Afrikaans "lekker"
Lash - To give e.g. Lash me some Money Ek Se


Ma packs - Opaque beer. e.g. shake-shake,(Chibuku).
Maize juice or Blue print - Shake Shake/ Opaque Beer
Ma pint - Lager beer e.g. Mosi and castle
Mahafu - Money.
Mbama - Slap/ To Slap Someone.
Metre [Mita] - A million kwacha.
McGyver - Using ingenious methods and simple tools/materials to fix something. e.g. using wires instead of bolts and nuts to hold together two parts. From the popular 1980s TV seriesMcGyver.
Mpopo - Hot Girls/Babes
Moko-Moko - Retarded person/Retard
Mwanaa - Refers to Friend/Young Person
Mune - Same as mwanaa, term of endearment for a good friend e.g. 'Shani Mune' "Hello my friend"; 'Shani baane' "Hello My friends"
Mali - Mother / Mum / in certain contexts a lady or woman
Mati - Mate/friend
Mao - Derived from Mal (French for sick/sickness). Being "sick in the head" or crazy. Usually as a reaction to someone doing something stupid. E.g, "ek se", how do you "dope" without "tuning" us "ek se", but you're mao.
Mauless - speechless or at a loss for words, used especially when shocked at something or by someone. Derived from the phrase, "Nilibe mau" meaning I've got no words or I've got nothing to say.
Mat - to leave - Mat ek se
Ma Bono - Local Buns
Milochi - kissing.
Michopo - Grilled steaks
MuZungu - Nyanja Word for White Person.
Mukalad - Nyanja Word for a Mixed Race person (coloureds).
Mwenye - Nyanja Word for Indian.
Nailos - Copperbelt slang used by Kaponyas. See the meaning of Falisis
Nikisi - Comes from the German "Nichts" and means "Nothing", or "NO".
Ntakuko - Booty.
Njumi - Cute girl.
Nyaps - NSA[No Strings Attached] Partner.
Ponyo Ponyo/Kanjansa - Masturbation
Ndule - Girls.
Nkeche - Girls/Girlfriend.
Ngwele - side kick .
Nakata line - To get to know the trade.
Own - Guy e.g. "Tune" that own to "lash" me my "tong" - Tell the guy/person to give me my money.
One Piston - One who easily gets Drunk.
Open - to burst out into laughter e.g Ek-se, I opened! (I really laughed)
Opan - to take a girls virginity e.g I opaned the cherry! (I was her first sex) ;,the a is stressed when pronouncing.


Page - to give a "miss call", usually due to a lack of pre-paid funds on a mobile phone. e.g. I'll page you so that you know I'm here.
Peg - to die. e.g. This "own" pegged because of drunk driving.
Perch - To sit
Pin - denomination for a thousand Zambian kwacha e.g. 1 pin - K1,000 ,50 pin - K50,000
Prang - crash, normally the action of being in a motor-vehicle accident
Queen - mother


Rasta - Any person with dreadlocks
Remix - A Lie.
Ride/whip/G - car
Sawa - K1,000(One Thousand Kwacha)Commonly used by Bus conductors/passengers.
Saat/Sut - No
Scale - Steal
Scan - to look
Skim - to think
Swine - a vest/waistcoat.
Sheets - in reference to sheets of money
Span - plenty, a large number.
Shansha - Hustle, stay strong.
Shadow - Dark like Ronish
Skat - shoe
Spalour - Home
Scene - Club or event
Scoop - Get
Shanks - Toilet
Strap - Walk e.g. I had to strap all the way home because the car broke down.
Skwale! - To Run Away, normally leave the scene in a rush.


Susu - K10,000(Ten Thousand Kwacha) Commonly used by Bus conductors/passengers.


Tune (Choon)- To tell/say. "I tuned that kama bali" Originally from South African Slang.

Tune Out - To Tell Off
Turbulence - Distraction/Confusion in a Group.
Tong - Money.
Two (2) Pulls - short duration / amount for something. "Shani ko ka fwaka ... two pulls fye."


Wire [waya] - 1) to beat or cause harm to somebody 2)An Old/vehicle in bad condition.
Weeve - Beat/Fight.


Zali - A Hundred kwacha(K100). Or a Hundred thousand kwacha(K100,000). e.g. 2 zali = K200,000
Za yellow - A Person with bleached skin or is light skinned.
Zambia Airways - Refers to a chicken Wing.
Zed - Literally 'Z' Short for Zambia. a. Zedians-Zambians
Zigolo - water and sugar
Zigs - Short-hand form of Zigolo
Zooker - Beer vulture.
ZNS - Refers to Green Flies (green bottle fly) in relation to the Green uniforms Worn by Zambian National Service men and women.
Zimandola - AKA Kopala. Peoples of the Copperbelt province particularly from Ndola town