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Thursday, 13 September 2012

British MPs on FRA Spending

British MPs have called on the UK Government to urge Zambia to stop subsidising maize growers after discovering the initiative cost Zambia four times the British aid it received last year. A report by the Commons International Development Select Committee found £225 million - 8% of Zambia’s government budget - was spent on trading maize at a loss in 2011. This figure dwarfed the sum received in aid from Britain, Zambia’s biggest donor, which stood at £55m last year. The committee dubbed the subsidy, which was introduced by the last Zambian government, as excessive. Abolition could deliver free secondary education to 300,000 children, build 50 new high schools and recruit 10,000 more teachers, it said. Currently, education is only free until the age of 14 for Zambians. The reports are embedded below.
DFID's Programme in Zambia - Volume 1

DFID's Programme in Zambia - Volume 2


  1. and what would British MPs say if they knew :

    i/ According to NGOs in its pilot audit by Grant Thornton, Zambia and Econ Poyry, Zambia lost an estimated income of USD 175 million in tax revenue between 2003 and 2008 from tax avoidance practices’ by Glencore AG International owned Mopani Copper Mines.
    Copper from Mopani is sold under a contract with copper in one instance being sold at 25 per cent of official prices at LME. In other words, they are not paying taxes over 75% of the copper sold to Glencore.

    ii/ ZCCM-ih may probably be losing USD 50 million annually on dividend payments from its 10% stake in Mopani Copper Mines according to Action Aid

    at least $ 500 million lost !!

    the former govt was rotten but why the PF is so lenient ??

  2. Mike Te, be consistent in your criticism. If the MMD was ROTTEN due to its inability to tax the mines, I would expect an objective person to describe the current PF government as been equally ROTTEN. To describe them differently when in essence they are pursuing the same policies is far too LENIENT (no pan intended). Try been an equal opportunities critic, Mike!

    1. I was misunderstood.. I wasn't saying that the MMD was rotten due to its inability to tax the mines, but that MMD leaders were ROTTEN TO THE CORE, lined their pockets, were bought and paid for by foreign mining companies, to close their eyes...

      For example, in 2010 NGOs have questioned former finance minister Situmbeko Musokotwane's continued silence on the Thornton audit report given to him last year which revealed the glaring irregularities in production and revenue figures at Mopani.

      The organizations also questioned Dr Musokotwane's inertia to act despite being given the report last year in which auditors expressed frustrations in carrying out the exercise which was within provisions of Zambia laws.
      "The auditors found that MCM resisted the pilot audit at every stage. The company's book-keeping was incomplete, several legally required documents were lacking and the general ledger analysis showed several loopholes and couldn't be matched with the trial balance," the organisations stated. "The auditors also found an inexplicable doubling in the costs of the company between 2005 to 2007, which shows that the company has been artificially inflating its costs to minimise the profits shown in their books so that they could pay less taxes. Despite the fact that the audit was finished in the fall of 2009, it was kept secret."

      watch this video and you will understand the looting and their cupidity!

      Zambia : Good copper, Bad copper

    2. you Chikwanda, Miles Sampa and Mukanga, get a move on and clean up those plunders !!!!


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