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Monday, 13 June 2011

At The Mercy of Big Business, 2nd Edition

Bob Sichinga on the "unholy alliance" between the party in government and mining companies :
“My information is as follows; this money is not coming from the capital market. This money has come from the mines, who they have refused to tax. And this is the deal between the government and the mines that they will pay to MMD some money which they can then use for their campaign, with a view of them being retained in government...Because if the mines should not support the MMD and allow a new government to come in, a new government is likely to tax the mines with proper taxes, on mineral royalty taxes as well as windfall tax, as well as income tax....There is also a separate deal which they have done to give money to MMD to enable them campaign. That’s why MMD is flashing this money all over the place. It has come from the mines...Why not make the mines just pay a fair tax? This is betrayal and this is why I have said ‘let the people decide in this election and make the issue of the mine taxes as an issue in this campaign..”
It should be noted in the interest of fairness that Mr Sichinga is currently an economic advisor to the Patriotic Front. But the allegation he makes are well established because President Banda has actually admitted as much in the past - see At The Mercy of Big Business and the implications it raises.  


  1. I.P.A. Manning (chosanganga)14 June 2011 at 09:26

    The unholy alliance…

    Recently the Chinese owned Ichimpe mine was launched by Banda, despite there being no approved environmental impact brief, nor the more considered environmental impact statement, mandatory under the Zambia Environmental Management Act No. 12 of 2011. Since the MMD has had the key to the till, $6.8 billion in illicit financial flows have been illegally exported from Zambia, with a massive discrepancy between money supposedly paid to the MMD Government by the mines and that to the ZRA. From the time the derisory royalty rates were set, it was clear that “Big Man’ payoffs were part of the deal. And firms like Glencore – surely the very definition and essence of the unacceptable face of capitalism - they of Mopani fame, simply paid nothing to Zambia, exporting every cent, and with it our human and environmental health. And they developed their empire with money from Credit Default Swaps – the toxic ‘derivative’ instruments’ that in 2008 brought our financial system to its knees. And they are still with us, they and the others who circumvent the law and those set to protect us, operating with impunity and without regard for Zambia. Its just the money, mate. – ou boet.

  2. This Bob Sichinga is the same man who swindled govt out of over US$2 million is computer equipment supply when he was in MMD. He bought lavish cars and lived well beyond his God given ability. Today, he talks of alliances like he never made any. Dear Bob, if you don’t like collusion, then start by not practicing it yourself!

  3. But excuse me, did MMD start with President Banda or was founded before him. I do not see the sense in heaping every negative on him.Let us learn to be fair with each other and critize fairly and with facts.


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