THE CATHOLIC CENTRE FOR JUSTICE, DEVELOPMENT AND PEACE (CCJDP) AND THE JESUIT CENTRE FOR THEOLOGICAL REFLECTION (JCTR) 

JOINT PRESS RELEASE ON  SALE OF RAMCOZ TO J & W 

17 March 2003 

As church-based organisations concerned about social justice, we are greatly apprehensive about the lack of information regarding the announced sale of RAMCOZ to J&W Investment of Switzerland. Concerns we are getting from many people is that they would like to have much more information regarding the mining experience that J&W Investment of Switzerland has.  This concern is not withstanding the argument put forward by the Minister of Finance and National Planning that this company had made the most attractive financial offer to our government .

That the people of Zambia know very little about J&W means that the government should do much more to provide us with information than simply offering the assurance that J&W is a subsidiary of Afron, which is registered on the Zurich Stock Exchange. Being listed on a stock exchange does not necessarily make a company stronger in mining. The Stock Exchange is like any other market, vulnerable to various factors. What matters is mining experience. And this is what the nation wants to hear more about.

Where in the world is J&W mining? What is its financial stability and sustainability for the future.  What are its views on major issues like workers’ rights, social responsibility to the community, environmental respect, etc?   We have yet to hear anything about that.

The Minister of Finance and National Planning gives further assurances that Afron worked closely with Bertman of South Africa, which owns coal mines.  But details of this association are not clearly spelt out. Is this about equity participation or a joint venture? Has Afron only been an associate? Have they worked elsewhere on their own or do they only work closely with others?  Have they experience in copper mining?

These pressing and very legitimate concerns arise from the painful experience this country has gone through in the recent past. Major industries were sold without a critical evaluation of the buyer. The sale of RAMCOZ, in particular, offers the saddest case of this experience, with its devastating social and economic consequences.

If the government believes in the principles of good governance, they should be prepared to disclose as much information to the public as possible since they are selling a major national asset. Privatisation of the mines has been in many instances a failure because of lack of transparency. Knowledge of who buys national assets should not be a prerogative of privileged politicians and a few civil servants. Zambians have an inalienable right to know the credentials of who is buying our national asserts and how their plans fit into our national plans for sustainable development and poverty eradication.

In short, the people of Zambia need to be given a verifiable track record of this chosen buyer before the country regrets once again.

As Church organisations, we are concerned with the possible ramifications and ripple effects of a bad decision on the national economy and in particular on the people of Luanshya.  Guided by our Church’s social teaching, we urge the truth that the primary criterion for judging economic decisions is: what is the impact on the people, especially on the poor?

Fr Joe Komakoma  Director - CCDJP	Fr Peter Henriot, S.J. Director- JCTR