Politics of Poverty? Or not.

In a responsive and responsible government, as in any efficient and effective organization, the architectural design is dictated by enormity and complexity of work to be done, and not by the number of imposa mabwe seeking position and title. Most rational thinking Zambians appreciate the fact that Zambia is a country populated by poor people, not because there are no resources to be converted to goods and services to meet their needs but victims of lack of political will to do the right thing. Their cultural value of contribution and service are overtaken by their overwhelming concern for pain in their belly. Doing the right thing, though, does not take much. All one has to do is pick out and prioritize the pressing issues, and look for people with knowledge, skills, abilities and proven experience to effectively address them.

A person vying for head of government should demonstrate to the electorate, beyond a shadow of doubt, that they have the skills of a selector of (wo)men, an absolute ingredient of a competent administrator. Subsequently, the chosen individuals need to be supervised. This means that the administrator must know what constitutes good performance, and lay it all out in no uncertain terms to those he or she hires to address the known recurrent societal issues. Additionally, a competent administrator would set up a schedule of meetings when he or she would be receiving status updates on work done toward achieving defined milestones. I call this step, receiving bundles of goods on behalf of the people. The quality of these deliverables would determine the level of competency the head of government has. To continuously enhance the quality of service, the administrator must sign compacts with his posse that clearly states that those who exceed expectations deserve a pat on the back. And those who fail to hit their marks, deserve a kick on the butt!

While kicking butt may sound like a therapeutic exercise for one's arthritic foot, avoiding it by hiring the right people for the right jobs would definitely increase the administrator's credibility. One can almost be guaranteed re-election if one did a good job of addressing, in time, the concerns of the majority, stealing notwithstanding.

This is the point, I think, old man Saunders is making in the article below. And because of his words of wisdom, I confer upon him the the title of Rational Thinker of the Week.

Zambia: Members at lower level causing pact problems – Observer

UPND supporters

Political Activist Dante Saunders has observed that the problems that have rocked the UPND/PF pact are being caused by the party members at lower organs. Mr. Saunders says from the meetings that he held with both UPND leader Hakainde Hichilema and PF’s Michael Sata, it is clear that the two opposition leaders are still interested in the Pact and that all the wrangles in the pact are being caused by the leadership at lower organs.
The veteran politician says it is evident that some members of the two parties in the Pact are scared of losing their positions in their respective parties once the Pact leader is announced hence the misunderstandings.
Mr. Saunders has told QFM news that there is need for all the leaders in the two opposition political parties to reach a compromise and ensure that whatever decision they make is for the benefit of the nation.
Mr. Saunders adds that there is need for the political leaders to prioritize the interests of the entire nation before their personal interests.
Meanwhile, Mr. Saunders has urged all the political parties to consider empowering the youths in their parties instead of using them to ignite violence during elections.
Mr. Saunders has suggested that each political party reserve at least 30 percent of their parliamentary adoptions for the younger generation.
He says this will help in grooming the youths for future political responsibilities.
[Qfm]

Adopted from Lusaka Times, Feb. 14, 2011.

What Lessons can Zambian Politicians Draw from The Events in North Africa

It is getting increasingly harder for me to restrain myself from continuing to believe that there is an unholy baptism that occurs between the campaign platform and the door to political office. Why else would people of good conscience go barefooted on a selfish path. They exhibit indisputable signs of good nature, inter alia, thoughtfulness, compassion, intentional, hardworking, purposefulness and discerning. They say the right things and those attractive characteristics cease to exist the moment they step into their new political portfolio. They quickly slide down the forget them hill. Thereafter their job description gets reduced to one sentence, "Filya bacenjele." 

After analyzing the political stench, you can't help but begin to wonder why nations organize governments at all.If all they would do is defend their ideology, in the case where they have some, or shamelessly hop from one political party to another, where they have none, the usefulness of government is brought into question. This conduct may be the reason why some people think and say politics is a dirty game.

I am not quite sure that characterization is fair. Is not politics simply a divergent of views of how to address a societal concern? in some countries, increased dependence on government to find solutions to such concerns creates an ideological rift between people giving birth to political parties. In other countries, however, divergence of views does not exist; political opponents emerge because they too want to be called "leaders."

So they lie, cheat, steal, scheme, and kill if they must, just to be called "leader" of some sort. They turn into this cunning beast which casts spellbinding smiles upon the electorate by the day and turns around and spew mind numbing pungent smelling manure by the night. In the privacy of their own minds, they are not responsible to any one but themselves. They have a chance of a lifetime; put an end to their poverty on the backs of the hardworking men and women in their countries. We don't have to get into the specifics but each one of us has questions about how people go into politics and no sooner do they open the door to their new office than they amass so much wealth. And there we are thinking politics is not supposed to be a business.

To fully appreciate why politicians find it hard to let go of their positions, go to the extent of lying, cheating, stealing, scheming, and killing when they deem it necessary we must demand full disclosure of their pays and pecks. We need to know what makes Zambian politicians so stubbornly arrogant to the point that they feel they hold title to the piece of real estate called Zambia. We must know first whether they are qualified for the job. Then we need to know how many automobiles they get from the government, how many domestic staff they are allowed to hire, where they live and how much they get in housing allowance if they live in their own houses and how much rent the government pays on their behalf if they don't have their own, how much security detail and how much does it cost the taxpayer, do they get a percentage of loan or contract they negotiate on behalf of the people of Zambia, who puts gasoline in their assigned automobiles and how often, how many cell phones they have and who pays for their talk time, how much they get per trip and who approves them, where do they take their kids for education and who foots the bill, if they have a home that they did not have before how did they acquire it and can such an acquisition be supported by their pay, what do they do to deserve such a pay anyway?

As you can see, I can go on and on about waste and lack of self respect and responsibility and responsiveness in government. Would I be wrong if I stated that our government is top-heavy and therefore unable to live up to its expectations? How may ministers and how much are we wasting on them? As if there was no shortage of jobs in the country, some of them are both cabinet ministers as well as members of parliament - which is a conflict of interest in and of itself. But nobody seems to care! They go about their fake duty like we don't matter, we are only there to generate revenue for them to they can live comfortably on our backs!

The people of Tunisia had been pushed to their last thread and had no choice but to push back. Eguptos felt they had enough of that political garbage, they pushed back. Niger just caught the fever and people there too are saying they can't take it anymore! I hope Politicians in Zambia are taking notes.

The rate of unemployment in Egupto is 40%. Zambia's is 60%! It would not take much to bring the country's economic machine to a halt. The cost of living in Zambia continues to escalate, the gap distance between the rich politicians and poor Zambians is vast. Many Zambians are hungry and by extension angry. Again, it would not take much to ignite the Zambian population into furious mob of protestors.

Many people would like to see a similar fire alight in Zambia. But I don't and I have a good reason for that. My late parents taught me that "Uwa mano  asambilila pa cipuba." I may be naive about this one, but I have a strong feeling that Zambian politicians will look at the events in north Africa and choose to stop being arrogant. They don't own Zambia. If they want to last long and continue to receive a salary for the work they have not done, they need to start listening to the concerns of the people. Here are some of the issues that they need to begin giving a serious thought:

1. Sell off ZNBC - it has been a political mouthpiece for politicians in office. Plainly it costs a lot yet it yields no benefits to the people.We can do without reading/watching the adventures of fat cats.

2. Sell off Times of Zambia -  Zambia Daily Mail and ZANIS. Like ZNBC, these institutions are being run at the expense of healthcare and education services. We need all the children to go to school.

3. Reduce the size of government - Some ministries are not necessary. We have made these recommendations over the years and politicians act as if they are the ones that make the money which fuels the government machinery. What arrogance!

4. Reduce the power of the President - That position has too much power. The president has more power than the whole government system. This has to stop. For instance, it must not be up to the president to decide when elections would be held. We need a fixed day when we will be holding elections every five years. That can't cost money to change.

5. Make housing allowance an integral part of the civil servant's pay - An employer's responsibility should end with remunerating a person consistent with their pay. Unless under special circumstances when a person works in less than normal settings, the employer is not supposed to dictate the cost of a person's abode. This practice is paternalistic and has to end.

6. Keep cabinet ministers out of parliament - they don't belong there. It is conflict of interest!

7. Reduce the number of ministers to 12. - Only 12 ministries have relevance in Zambia.

8. Rein in Fringe Benefits from ministers - stop wasting taxpayers money on people who do not add vale to the quality of life of Zambians. Impose a pay cut, one automobile for office use only, no security detail, no rent, one cell phone, limited travel and more importantly - have a semi-annually performance evaluation. 

9. Don't increase the number of MPs - what is the current crop failing to do? The question, you may want to ask is, WHY? Increasing the number of ineffective people is not the solution. And in fact when you increase the number of MPs, you will be taking resources away from services.  We need improved services and better delivery methods.

10. Fix Roads - Have you no shame?

11. Unbundle ZESCO - It is about time the inefficiency and ineffectiveness that is impeding economic growth was eliminated. Why are you forcing us to accept interrupted power supply (IPS) as normal? The government's failure to recognize the catalytic importance of electric power in Zambia defies commonsense.

12. Post government spending against budget on the internet - we want to take part in monitoring who is performing and who is not.

The intent of the above recommendation is to make politics unattractive to lethargic thinkers, keep good for nothing politicians out of government. Zambia has serious problems. She needs serious people to solve them.

Ms. Inonge Wina: A consistent Rational Thinker

The hard and fast rules of open intellectual debate demand that a participant stays focused on the topic, demonstrate clear understanding of the other party's point of view, present their areas of disagreement and subsequently explain their point of view. If it seems like a lot of work, it is because it is. For this reason alone, those who feel too weak to do the work turn to irrational thinking, the demonstration of which is demonizing the other party. Any debater who aims to prop their image at the expense of others simply because they hold a view that is at variance with theirs exhibits nothing but ignorance and immaturity of the highest order.

A rational debater will weigh his or her remarks and where they believe their brain would be a weak slave when it came to maintaining consistency in their thoughts and subsequent pronouncements, they use notes. Also, they would develop a technique to default to when they are asked a question about an issue on which they have not had to time to reflect. 

Today I pay tribute to Mama Inonge Wina for consistently keeping a cool head on contentious national issues. Each time she makes a public statement she appears to have had done her thinking. Her thoughts seem clear and words weighed. She tempers criticism with respect. It is easy for one to see that all her arguments are underpinned by objectivity. Although she may be partisan her quest for reasonableness comes through every word she makes. One cannot help but appreciate her unique political style - it does not struggle, but radiates the supremacy of thought on the Zambian political arena - unique skill of articulation of the issues and concerns of the masses. It is not personal - it is not about VP Kunda, and it is not even about P Banda. It is about work - the degree of legitimacy of the Constitution. She identifies the shortcomings of the review process and then explains why she believes so. That is the epitome of intellectual debate.

Mama Inonge, once again, I confer upon you the crown of a rational thinker.

Zambia needs more people like you.

Kunda’s constitution will be of limited legitimacy - Inonge

By George Chellah The Post  Tue 30 Nov. 2010

Inonge Wina

VICE-PRESIDENT George Kunda's proposed constitution will be a document of very limited legitimacy and without authority, says Inonge Wina.

In an interview yesterday, Wina, who is PF national chairperson, said Zambia's history had been dogged by chronic instability in constitution making.

"This is a recipe for conflict in a multiparty democracy. It creates a lot of dissatisfaction among people. People feel this is not their constitution and it’s not part of them," Wina said. "George Kunda's new proposed constitution will unfortunately be a document of very limited legitimacy and will therefore lack authority."

Wina said the amendments to the 1996 constitution announced by Vice-President Kunda fell far short of the people's expectations. She said Zambians wanted the new constitution to address substantive issues such as the Bill of Rights and other fundamental freedoms.

Wina said Zambians were also concerned about the performance of members of parliament hence their submission that non-performing parliamentarians must be recalled.

"People brought about issues of crossing the floor, that it's bringing a lot of by-elections. The issue of the 50 per cent plus one presidential requirement and indeed many fine recommendations from the Mung'omba Constitution Review Commission (CRC), which include matters of gender equality and all these have been left out," she said.

Wina wondered how long Zambia would continue being a nation that specialises in aborting constitution-making initiatives.

She said the current administration had yet again demonstrated its disdain for people's aspirations by ignoring their recommendations. Wina said the government was set to alienate Zambians from the state and its institutions.

"That's why my strong conviction is that this country needs a government that will listen and respect people's aspirations, a government capable of providing a stable solution to the challenges of constitution making," Wina said. "Above all, a government that will create a conducive environment for a much broader consensus. Otherwise, we will continue making piece-meal amendments regarding a very important law of the land and which every subsidiary law of the country depends on."

Essentials of Rational Thinking

We descend from a lineage of great thinkers who never thought education required a formal setting. In the same way that there is no formal school to teach bees how to make honey from an assortment of fluids, there was no need for a formal school in the lives of our forebears. To them experience was school; one learned the ropes through experience. One was initiated into the circle of men or women through the rites of passage. Such an admission availed to one a certain set of infundo essential for rational thinking and conduct. Therefore, more often than never, age conferred upon one, certain rights, responsibilities and expectations.

Each time one utters a word, one is responsible for its effects; intended or not. That made conversation an art. Great conversationists were known for their skillful choice and use of words.  It has been argued that in some societies, free speech is a right. But then again only a fool would play ignorant to the responsibility that comes with an uttered word. It could destroy, just as much as it could built. If what one says does not have a damaging effect on another when it was intended to, it would, at the very least, have a reverse impact on he who uttered it. It then follows that one cannot hurt another unless one contains hurt. In other words one cannot give what one lacks.

Our forebears had values. They also had principles. Their spoken words were guided by the congruence between their values and their principles. When the difference between values and principles is obliterated, one achieves inner peace.

The purpose of this piece is to help Zambians to align their values and principles. Before we draw a contrast between values and principles, it is important to state here that the benefit is simply that one becomes a rational thinker. 

You may be familiar with the cliche, "think before you speak." It actually means, tontonkanishisha, langulak, etetula, elyo no kucilisha, shikatala mukusosa. After heeding the advice of the ancient, it will quickly dawn on you that our forebears were not only masters of conversation but before that, great thinkers. This is how their minds guided their thought process:

• Purpose - Why am I speaking? What am I trying to accomplish?  What is my central aim? My purpose?
• Question - What point am I making? What question am I raising?  What question am I addressing?  Am I considering the complexities in the question?
• Information - What question am I using in coming to that conclusion? What experience have I had to support this claim? What information do I need to support this claim? What information do I need to settle the question?
• Inference/Conclusion - How did I reach this conclusion? Is there another way to interpret the information?
• Concepts - What is the main idea here?  Can I explain this idea?
• Assumptions - What am I taking for granted? What assumption has led me to that conclusion?
• Implications/Consequences - If someone accepted my position, what would be the implications? What am I implying?
• Points of view - From what point of view am I looking at this issue? Is there another point of view I should consider?

The stack difference between the lives of our forebears and ours is the great rift between our values and our principles. Very few Zambians can claim to have a specific set of principles that they use to guide their daily decisions. Most of them are constantly walking in the shadow of those that they hold in high esteem. By this I mean they don't think their own thoughts. They simply regurgitate what they heard somebody else say. The only differentiating characteristic between them and the other person is either the side of town he or she lives, the car he or she drives, the complexion of his or her skin, the level of education that their idol has attained, or simply being a foreigner.

Zambians have a tendency to cede their control of their mind to the person they hold in high esteem. However, the most important lady in my life would argue that it is not only a Zambian thing, it is everywhere. She might have a point. But I am not concerned with everywhere else. My concern is Zambians.

It is from the Zambian thinking process where words such as ukwetetula, ukutontonkanishisha, ukupelulula, ukulangulaka and ukushikatala have escaped. Faced with a situation that does not resemble the ordinary, most Zambians would default to fikaisova, finshi ndeculila, wafwa walemana, awe ifwe ni fino fine, twalibelela, nasangamo ukufilwa, nani akansunga, ngafweniko fye, etc. One of my late friends used to call that the defeatist attitude. I call it second class thinking. He could not bring himself to understand how a normal thinking person would declare themselves a cultural ignoramus when they hail from abundance of wisdom.

The purpose of this piece is to repackage the mind. Because much of the thinking people are doing, left to itself is evidently biased, distorted, partial, uninformed or downright stupid. Am I being judgmental? Perhaps. Because to refuse to stand aside and watch while Second class thinking is ferociously boring the core of the Zambian mind. Second class thinking is the root of all evil, I think. Leave the love of money out of it. And don't blame it on the devil either. Second class thinking is costly, both in monetary terms and quality of life.

The antidote to Second class thinking is Rational thinking. It can be achieved by self-direction, self discipline, self-monitoring, and self-correction. In the absence of the support system that our forebears had, rational thinking requires rigorous standards of excellence and mindful command of their use and a commitment to overcoming our internalized oppression which holds that we are inferior.  We are not. We are great people! We are the natural great thinkers. Impanda mano mu cinecine. If not you, then who?

Zambians, now more than ever before, are in need of rescuing from Second Class Thinking.

In defense of the Third Dimension

Whether educated, or not, whether traveled or not, there is one retrogressive habit by which the majority of Zambians is identified. As matter of fact in the first republic, the then president, impalume Kenneth Kaunda, got a little worked up about it and ordered a study of the volume of pombe Zambians guzzled in a year. I was not imbibing at the time, as I don't now, but it turned out to be enough to evenly cover the entire Zambian landscape by an approximate height of eight centimeters. I doubt that study accounted for lituku, kancina, amantalakwa, sikokiyana, katankamanine uko, cipumu, imbamba, katubi, imbote, ifiseke, katata, umunkoyo, seven-days, to mention but a few. Because all these brews have the potential to knock one out cold. Interestingly, the population was about 5 million. That must have been some serious quaffing people did. Impalume Kenneth Kaunda was right to be concerned. It makes one wonder by how much the volume has risen, considering that the population has more than doubled and the rate of unemployment is relatively high.

If one cared so much as to convert even a fraction of that time spent on boozing into a series of coordinated economic activities, probably some of the problems we are grappling with today could have been prevented. Imagine if all drinkers in Zambia gave up an hour of their monthly drinking time, instead of using their hands to nurse a cold one or swirl icikale of opaque brew, they would commit them to a pick and shovel and in a flood zone, the extent of the flooding problem would be a little less than we experiencing today. Admittedly the hands technology would not yield a permanent solution but more than drinking beer, it would beget us a culture of solving problems by any means necessary.

A culture of thinking rationally and solving problems by any means necessary, is a strategy resorted to by those who are dealt a bad card many a time, pushed to a tight corner and cannot take it any more. I am talking about having the ingenuity and courage to put our resources to great use. Most Zambians lack the drive to do just that, be they educated or not, traveled or not. But then again, there is a special breed of Zambians who will not take it, regardless of their education, or international exposure. To them foolish pride is a refuge for irrational thinkers. Instead they pursue their goals with the precision of a brain surgeon, the focus of a smart-bomb, the speed of a heat-seeking missile and the courage of a wounded buffalo. A little information is all they need to get started. These people are like a needle in the haystack, they don't come by but once in a lifetime. Let's call them the turn tabs.

Their counterparts, the third dimension, on the other hand, are a dime a dozen. They want to feed well, sound sophisticated and more importantly dress well. I once met this young lady in my lawyer's office who had a mirror on her desk strategically positioned to give her feedback on her appearance at a glance. The frequency at which she consulted that mirror, I would swear, stroke me as someone who doubted the honesty of the instrument. If by chance the mirror convinced her to ask me for second opinion, I would have sided with the mirror. The reflection she saw in the mirror was a true image of her and no one else. Now, had she put all that consulting time and effort; checking and double checking, into reading a book to improve her inner-self, to improve the perception of herself, boost her confidence, and develop a positive mental attitude, she probably would have gained much more.

But reading, committing her mind to rigorous introspection, developing her governing values, sculpting her philosophies and refining her principles was not in her culture. She was not even a conversationist because had she even an inkling of what that is, she could have engaged me, the rough looking visitor, in some intellectual discourse. What the mirror image was not able to tell her, "more than you are, but less than you want to be," I would have told her. But engaging in conversations that are exploratory in nature, informative and perhaps enlightening was not one of her cultural practices. It used to be but it died when somebody subliminally convinced her that there was something wrong with her natural hair, her flat nose, her complexion, etc. She might have been thinking by constantly checking herself up in the mirror, she would experience the Pygmalion effect. That unrated thought, though, did not stop me from wondering, like I do each time I walk the streets of Zambia, about who would suggest those practices for her and many other youths like her. Because, sometimes that's all it takes - a suggestion.

A suggestion, not a threat, in an opportune moment can set off a domino effect ultimately turning a person's life for the better. The recipient of that input, if they appreciated it, would quit doing things that are ruinous to themselves. When they are given the right input and feedback, they have reason to begin seeing themselves in a much more positive light. They begin to resist the temptation to permit their imagination to slide into overdrive when simple words such as abroad, overseas, ubulaya, amangalande, kufyalo, are spoken. They would begin to differentiate truth from hype. That is what most of the stories they hear about ubulaya are - untainted hype.

When some of those living ku fyalo visit/return home, they take with them bunk. Lies-filled stories of how large they live. They would have prepared a thing or two to impress their admirers; it may be a t-shirt with some funny print, a pair of funny tailored jeans, icisapato or some foul smelling scent. To their admirers, it's all good because it came from ku mangalande. What a croak of nonsense!

That initial change in the quality of input provides an incentive for them to become turn tabs.
Mwe bakufyalo, be truthful, twapapata. Tell the truth. Help your friends and family understand the truth. Cishinka, ku mangalande, like anywhere else, there are no money trees and everyone who has any works hard for it. Stop lying ati "I get isaka na half per mulungu." Wenye! "And ...er...and I have set aside enough money to buy mazembe. Manje apa so nifuna kumanga nyumba double decker." Mwebaume mwe! Nyumba inkale double decker? What would Paul Ngozi say?


Very few Zambians who end up in foreign lands actually make something of themselves. Most of them spend time drinking Heineken, checking every hood they can find, and discussing politics, just like they did in shebeens before they crossed the pond. They would pause behind stretched limos and send pictures back home and lie. "This is how I roll," they would say, pointing at the gargantuan of a car. Really? And when their daring cousin fleeces them for change while they are nursing a cold one or swirling icikale ca opaque brew in the name of, "I miss this stuff, you know," don't blame him. Batila "mumbwe aitile mpashi, impashi nasho shaisa, elyo shamububa!"

The trouble that some Zambians living in foreign lands face, malibu yakuilombela for the most part. When they have been lying about theirs and their friends' economic status all along, when time comes to substantiating their claims, they perpetuate the lie by extending the web of lies - lie again to cover the lies told earlier. And some unsuspecting bystander begins to create castles in the sky about their sibling who got a scholarship to China. What you are forgetting is that your lies are like a pile of poop. If you dump and run, remember that when you return, it will stink just as bad.

It is an uphill battle to debunk some of these myths when they have been safely deposited in the corner of the subconscious mind of a third dimension operating under the influence. A sincere person, a transplanted turn tab, seeking to create a means of earning an income from a critical set of assets becomes the victim of this indistinguishable long drawn senseless hype. This may be a case of umusuku ubi utushe mpanga, I think. And it has to stop.

Let's help ourselves and our people, let's share the truth,  the pure, the powerful, and the positive. Te cikale ca opaque beer nangula a cold one. Evidently, that has taken us nowhere. But if we freed enough of our people from the shackles of the third dimension to turn tab, there is no doubt in my mind that we will get where we want to be in good time.

We can move up and forward together mu cishinka.

Zambian professionalism personified

Polygamy is just a selfish matter for men - Kalyalya

By Chiwoyu Sinyangwe and picture by Collins Phiri

The Post   Wed 10 Nov. 2010, 09:30

Wait an everlasting minute Chiwoyu Sinyangwe! 

You can't misrepresent Dr. Kalyalya's professional life by giving it a wrong title. That is totally unacceptable. The title you unwittingly assigned it, albeit sensational, was just a small part of the conversation. It made little sense because the man had made quite an effort to share with you and your readership his private life and his swath of contributions to Zambia. I take exception to this kind of misrepresentation.

My interest in Dr.Kalyalya's abridge version of his life story, as he puts it, is not about the misrepresentation, though. I want to weigh in on his take on the two issues that I toy with in my spare time. For the records, the story does not start from the question below but if you click here, you will find out exactly where.

And by the way Chiwoyu, yours was supposed to be the Q, and his the A. Dr. Kalyalya attributes our nation's inability to move forward to poor work ethic which, in my view, includes simple missteps like these. As for the rest of the readers, please follow the line of thought by Dr. Kalyalya as he responds to Chiwoyu's question on mining taxes:

A: What is your take on increasing tax revenues from the mining sector through imposition of the windfall tax?

Q: Although it is not my area and I should be cautious, there is the issue called policy credibility. You can’t just be changing policies from one to another because when investors come, they look for a horizon… I would like to think that within the variable profit tax regime, there is still a lot that can be done perhaps which we are not doing. How is profit made? Profit is made from two things; the revenue side and there is the cost side. I think there is a big scope to a lot on the cost side. Are the costs that are being allowed for tax purposes supposed to be allowed? That’s one of the key issues. Is the cost regime transparent that we are taxing what we need to tax? I have my doubts on that. And that is where a lot of energy to push this regime to the levels of transparency… let’s not kid ourselves, these mining companies employ top-notch tax accountants, tax lawyers. So, we have to be able to match that because these mining companies always look for legitimate ways by which they avoid companies to pay tax. Now, are we strong enough to pierce to that? That is where the challenge is for colleagues in ZRA and government. Really equip our people to have the systems in place which can ensure that certain costs are not allowed so that there is enough revenue above cost which can be taxed. Now, we have a difficulty, the growth in the mines is growing but revenue to Treasury…it’s not nice we don’t raise enough revenue locally then we go to donors to ask because at the end of the day they will say ‘but you people you have enough resources. What are you doing with them?’ Because at the end of the day, what they also give is tax revenue from their own nationals. What we need, whatever regime we are in, is to ensure that it delivers to the full. Until we get that, mere changing will not deal with that problem because you might frustrate the other side and then they don’t invest.

  This man is crafty. That is my first impression. He straddles between the political and business flimsy branches with the skill of an orangutan, yet he takes a calculated shot at the core of the issue with an incredible degree of humility. Let this be a lesson to some, if not all, Zambians. When discussing national problems, do not be economical with the truth. It will not help any of us. This is what I am referencing:

1. Policy credibility. One of the major consideration in deciding where to plant huge sums of cash is sovereign stability followed by policy credibility. The revision of tax regime must be done in a manner consistent with the original contractual agreements. Knee-jerk reactions to a booming economy can be disastrous. Dr. Kalyalya skilfully deconstructs the systemic problems with the mining taxes from the formulation phase through implementation. The first part of the equation begins with the percentage which yields revenue (Revenue Side). That is done from a weak point. It is formulate in haste, with a view to feed our insatiable appetite for money which, when we get, we don't know how to manage. In other words we take a short-term view on a longer-term matter. The reason, according to Dr. Kalyalya is, we start out without a plan. Although I would take a slightly different path on that one; we do have plans, they are just not the kind we confidence in to guide our decision making.

The second part of the equation, also negotiated from a weak point, is the number and nature of allowable costs for tax purposes. Admittedly, we don't do a great job here either. From my outsider's point of view, we either don't have a comprehensive business picture of the mining business or we are simply poor at making our case. Dr. Kalyala says, "...let’s not kid ourselves, these mining companies employ top-notch tax accountants, tax lawyers. So, we have to be able to match that because these mining companies always look for legitimate ways by which they avoid companies to pay tax. Now, are we strong enough to pierce to that?" I bet I can answer that for us. We cannot, for the simple reason that we don't have a sufficient stock of qualified professionals who are brave enough to look a politician in the eye and offer an alternative view, "...we are getting shafted here, bwana." Most of the individuals positioned to speak for Zambia are feeble-minded and corrupt. They spend countless hours figuring out how to steal public funds. And as they get to be good at that, they lose their professional edge. They get a little rusty. ask anyone of them when they last wrote a professional paper, not as a requirement for their job but their profession. When they sit before the small boys who graduate from my classes, they are already defeated. But Dr. Kalyalya would not spare the ZRA and the administration, he recognizes the gravity of the situation and calls them on it. Lack of seriousness is killing Zambia! It is a serious matter and calls for frank talk. What a guy!

 2. Forward looking. Dr. Kalyalya bluntly distributes responsibility over institutions for reasons we appear to be poor. I will tap on the serious absence of a plan issue once again. We need a national plan assembled by professionals whose lives would not be negatively impacted if it focused on the pressing issues facing the nation, medium and long-term. Because we seem not to have that right now, Dr. Kalyalya observes, "That is where the challenge is for colleagues in ZRA and government. Really equip our people to have the systems in place which can ensure that certain...." No serious person can argue with that. It's that simple yet not easy, for a reason. We seem to be conditioned to think, because we are weak in the planning, the negotiation and the implementation areas, we will simply prostrate before the donors and our budget shortfall will be made up. Dr. Kalyalya saw that coming too. So he advises, "...donors to ask because at the end of the day they will say ‘but you people you have enough resources. What are you doing with them?’ Because at the end of the day, what they also give is tax revenue from their own nationals." Yes indeed, Dr. Kalyalya. For how long shall we remain shameless panhandlers?

Good job, Dr. Kalyalya, for your candid responses to not so difficult problems.

Now let me switch gears. I always say learning begins where agreement ends. Up until this point, I have agreed with everything Dr. Kalyalya said. He held his own, rather remarkably. But the inflation issues was either not properly decoded or the good Dr. had the inflation edges in a serious state of disrepare. I have inserted my comments. Part two:

Q: While the current low inflation is one of the achievements that can be associated with you at Bank of Zambia, people are saying the benefits are not being felt by ordinary Zambians and bank interest rates still remain high. What is your comment?

A: Inflation is the rate of change in the price level from one period to another. It doesn’t mean when inflation has come down, prices have gone down. The missing word here Dr. Kalyalya is "all." Not all prices go down. So one can actually think of Inflation as the net change in the price level.  It does happen in certain cases, when mealie meal prices come down, everybody sees it. But when airfares come down, do you see that? Inflation is a basket that includes all these things which you are not interested in but are happening but we look at the rate of change from other things. Actually, Dr. Kalyalya, the contents of the basket ought to be revised from time to time to reflect the consumption interests of the majority. This is where the regular Kawayawaya gets to be included. Inflation should be understood by as many people as possible if the fiscal and monetary policies are to be deemed effective and meaningful. Needless to say, the type and number of contents of the basket are not etched in stone. Interest rates are now at 20 something…but what we have seen is that in the banking sector, there are two types of interest rates because the market is segmented. Big players can negotiate. It’s the small players who are not able to negotiate and that’s the group we are speaking to… when we talk to the banks, they say cost of doing business is very high. But we are also quick to point out that the cost of money is also contributing to this. You are looking at another person to make the adjustment. What we are saying is that everybody should be making adjustment. It is very tricky because we cannot dictate, (Time out!) we had done it in the 1980s, and what happened? Money become scarce and inflation went  up (Time out!) and interest went higher.

First, Yes Dr. Kalyalya, you can dictate. You dictate by setting interest rates. Every banking institution licensed in Zambia should adhere to the set rates. This is what monetary policy is supposed to be about. 

Second, how did you do it that reduced the volume of currency in circulation and consequently drove inflation up? Did the Zambian seller become so creative all of a sudden as to factor tight money supply in the price of their wares? Dr. Kalyalya, when the volume of M1 (currency) goes down, in an economy as ours was in the 1980, inflation falls simultaneously. I think we can both agree that it was the second half of that decade when the Zambian economy began to tank. And tank it did, irreversibly. This cost KK an election. Talk of a blind policy having tiered effects. Any way, the natural response of an organ such as BOZ, depending on where you are on the business cycle, in the given scenario is to lower interest rates.  And it is wrong to say, interest rates went up as thought they were an auto-variable. Interest rates are changed. For this you and BOZ ought o take responsibility. Looking at the structure of the economy at the time and the income levels, lowering interests would not have made dramatic impact although one would argue that it would still be an absolute necessary move.
But more importantly, your pronouncements underscore the point I made earlier this month that Zambia does not have mechanisms in place to effect monetary and fiscal policies. If anybody is better informed than Dr. Kalyalya, please step forward, this student is ready to learn. 

My final question is, what exactly did you do to make two opposing forces to go in the same direction at the same time - reduce M1 and drive up inflation?

The fact that inflation has come down to where it is now, believe me, it is feeding into other areas. We may not see it from the personal point of view unless you are doing business…

Final note: For handling the mining taxes expertly, I confer upon you the rational thinker of the day. You have gone where no one dares go. And those in the corridors of authority who attempt to speak to that issue only demonstrate irrational hubris.

Good luck on you next expedition.

You Can Avoid The Proverbial Potholes

One feature that characterizes Zambian motorways is potholes. Driving a low base automobile like a Cooper, Corvette, Lamborghini, or Cadillac Eldorado on a Zambian road, never mind the exceptional engineering that went into those distinguishable names, would feel like taking a ride on an ox-drawn cart mukashila ka tondo. That may be why those who drive prestigious toys such as these confine themselves to inner city roads. And on occasion, like proud owners of any version of Ford Model-T, they would take a cruise on airport road. Former Minister Peter Magande once described this Zambia's premier highway, the stretch between international airport and town center, as evidence of development in Zambia. Can you believe that?! 

Something does happen between a campaign stump and when one is sworn to ministerial office. They put on a dunce and join the irrational thinkers' club.

But that is not what I am belly-aching about. It is nothing new considering that in post-independence Zambia, very few ministers have honestly earned their wages and perks. Most of them have been as worthless to the Zambian people as most potholed roads are. In fact some of them nauseating. If you don't believe me try this on for size. Approach one of them and ask them this question: "Minister Chiteni, pardon me please. I was wondering, er, say15 years from now, er, what evidence would there be that you were minister of this ya portfolio?" Now stand back and watch as empty-ness begins to unfold.

What I want to cast light on today are amaswau-studded potholes that belie the real estate transaction in Zambia. In our recorded past, Chiti, imfumu ya baBemba, sent imondo to his brother Nkole. Apo ninshi Chiti ba limusangule ntonko. Consider this to be imondo from me to you.

I am peeved by these leeches who call themselves lawyers and think that drawing a contract of sale which in effect only constitutes an offer and an acceptance, should pull in to them a couple of hundred Benjamins.  What is even more petrifying  is the incessant demand for money by these perverted low grade lawyers masquerading as real estate professional for doing absolutely nothing but waste your time and money. 

Umo shacela you would be the one to chase after them, in person, na pa lamya. These mailo-mailo people don't take their jobs seriously. They want to enjoy the title but they fail to live up to its expectations. You want to yank those stupid wigs off their potato heads and ....

Any way....you probably have heard calls from tutali na vifupi, to yina na voyonda to go back home and buy some land. You would be wise to heed the calls. Whatever reason they give you, I am here to tell you they are all real. However, when time comes to fork out the cash, proceed with caution. Remember, thieves will be navigating the purchasing terrain for you. You are likely to hit potholes if you let them do all the leading while iwe uli cete. Take to your heels especially when you run into somebody who upon meeting you begin by lacing their shtick with born again mantra. Iwe ati pamene apa napeza anthu a mulungu. Uza vina gule wa m'kulu, uza mbuwa! Whoever declared Zambia a Christian nation forgot to remind Zambians that the declaration was not be used as an ofoloshi to mask one's criminal mindedness.

So oo, I have prepared a quick cheatsheet for your reference. If the ownership transfer process does not fit this profile, know that your lawyer has thrown you under the bus or is about to:

[Real property is generally defined as land and the things permanently attached to the land. Things that are permanently attached to the land, also can be referred to as improvements, include homes, garages, and buildings. Substances that are beneath the land (such as gas, oil, minerals) are also considered permanently attached. I wish! Other items which can be attached to the land, such as sunka mulamu and tool sheds, are not considered to be real property.]

1.It starts when a seller accepts a contract you've put in on their home or land. 

     You might put down a deposit check to prove you’re serious about the offer. At that point, your settlement agent (often a lawyer, and also sometimes referred to as closing agent, escrow officer or escrow agent), gets the ball rolling, deposits any funds you’ve submitted into a special trust (escrow) account and puts in requests for title work, or an examination of the home's ownership history.

     Don't leave this part to your lawyer.  If this is not done properly, it is time to hire another lawyer.  If the one you fire asks for some form of payment, ask him for a contract and refer to the terms of that contract, in which you should have had the foresight to included that he or she will be paid upon delivery of a clean deed of title to you in your name; specifically on the closing day. Neglect this step at your own peril.

2.Lawyer begins reviewing the title. 

      Each property has a series of documents recorded at the Ministry of Lands or Civic Center (whichever is applicable) that reflect prior owners, lenders and other parties who have or had an interest in the home you’re buying. These documents are examined to identify all outstanding interests (liens).  Then, that paperwork is forwarded to you.  You want to be certain you are buying that property from a legitimate owner.  You want to review the documents and jot down questions about anything you don't understand.  You, must understand!   Once again, you neglect this step at your own loss.

      This is what you pay the lawyer for, not to draw the contract of sale, ati kwamana ndipe mali. Huh?!  The contract of sale is nothing but an offer/acceptance document. In any case you want this step completed in one week.  Should there be encumbrances,  walk the paperwork yourself if you have to.  If your lawyer speaks like he has a speck of sand in his eye, drop him.  Get another one! 

3.Mortgage issues are addressed. 

      Your lawyer works with your lender to verify kwacha figures and other important details of the transaction. In addition, if prior mortgages have to be paid, or if a loan is being assumed, that’s worked out by your lawyer as well.  But if I were you, I would want to examine the documents raise every minute inch of the way.

      This only applies when you are borrowing to purchase your property.  Please note that Zambian banks don't give low interest mortgages. That is why most people would rather save and build/purchase. Again, this is what you hire a lawyer to do for you.  If this section does not apply to you, lawyer fees should be considerably less (if you are lucky!)

4.The property is inspected. 

      In Zambia there are no professional inspectors. Even if they were there, you would be hard squeezed to find one that would be willing to earn their money.  This is one are your eye would be more dependable than that of pseudo professional. This applies to land surveyors.  After mid January 2011, I will provide names of surveyors that would do a great job for your time and money.  

      Most properties, especially settled subdivisions, in Zambia have annexes. Dishonest lawyers would not tell you the property next door is yours as well.  Instead they will fraudulently get it for themselves and sell it off. You want to witness the survey yourself.  Go to the site and walk the land. You will be glad you did.

      And one other thing, surveyed or not, make sure you have your own survey conducted.  Most Zambians have a tendency to build a few yards into other people's property, if not on the property, and claim ownership. You want to make sure you are getting your whole property.  Avoid the pothole.

5.The closing  statement is prepared. 

      Your lawyer prepares this document which shows all costs that will be paid at your closing. Besides the lawyer fees, trust me, it will be a lawyer of a kind, that will ask for money after closing. If you find one, let me know. But anyway, ask let them show you the paid ZRA fees receipt and the registration fee. Your obligation should be the registration fee only as should be noted out in the contract of sale.   Check with your lawyer to confirm the amount you need to bring to the closing. 

      Insist on having a closing date when all due diligence will have been conducted and ownership will exchange hands in one room with both principals in attendance.  You have to understand, you don't own the property until a deed of title is legally processed and has your name on it.  Contents of this statement and the contract of sale should jive, otherwise you would be short changed. Cutting corners here would mean loss of Benjamins. Avoid the pothole.

6.You close on your property. 

      If you did not deposit the funds in the escrow account, smart move, provide the amount that your is included in the closing statement you’ll need to complete the closing. During the closing, you (and whoever else is buying the property with you) will sign the application forms for deed of title, which will be explained to you by the lawyer.  After your closing process is complete, your lawyer should then file for your deed of title. So, you are not done with your lawyer until you have a clean deed of title delivered to you in your name. 

     At that point, my dear friend,  the property is yours. 

    

Remember at all times that you are the only one who is going to part with cash. All eyes are on you. Even the property sales tax that would be a contractual obligation of the seller to ZRA will ultimately come from your pocket. The more careful you are with the steps the less chances you will have of losing out. Wileka ba kusangule ntonko!

Unless the property has heavy encumbrances, the whole transaction should take no more than 6 months. I have factored in, court proceedings to cure unspecified power of attorneys, if and where applicable.

Avoid the proverbial potholes! 

Welcome to property ownership!

[Mwata Chisha is a member of the National Association of Realtors]