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PSI and StreetNet International 

Workshop report March 2005 

Zambia Alliance Building Preparatory Project 

Participants - Zambia United Local Authorities Workers Union (ZULAWU), Alliance for Zambia Informal Economy Associations (AZIEA), Zambia National Marketeers Associations (ZANAMA) and Workers Education Association of Zambia (WEAZ).  

Executive Summary

The AZIEA and ZULAWU Alliance Building Preparatory Project was initiated by StreetNet International and Public Service International as part of the broader effort to bring both formal and informal workers in the public service to begin to have collaborative working partnerships and build alliances in addressing their common problems.

The project had three key activities, including the planning meeting, education (national workshop) and follow-up consultative meetings in Kitwe, Ndola and Lusaka.

This narrative report covers the national workshop held on February 17-20 2005, at Mindolo Ecumenical Foundation, Kitwe.

Workshop

The workshop was attended by senior members of four organization including Zambia United Local Authorities Workers Union (ZULAWU), Alliance for Zambia Informal Economy Associations (AZIEA), Zambia National Marketeers Associations (ZANAMA) and Workers Education Association of Zambia (WEAZ).

The workshop had the following objectives:  

Official Opening Ceremony

The three presidents: Mrs Rose Mwanza from Workers Education Association of Zambia, Mr Gladson Chunga from Zambia United Local Authorities Workers Union and, Mr Elvis Nkandu from Alliance for Zambia Informal Economy Associations, expressed happiness at the initiative to bring the public service workers in both formal and informal economy to share experiences and build a common front.

The Keynote official address was delivered by the Zambia Congress of Trade Unions Deputy General Secretary, Ian Mkandawire. In his address, he expressed gratitude to the Public Service International for funding the workshop, and described the workshop as a landmark occasion where organizations which have been perceived to be arch-rivals are engaged in constructive discussion and debate to seek solutions to common problems.

Paper Presentation

The first paper was presented by Mr Chomba Mulenga and was entitled “Critique of Local Authorities revenue sources and expenditure patterns.”

In his paper, he cited the Local Government Act section 6, as the law that establishes the councils as independent corporate entities. These councils may be either city, municipal or district.

They are established as agents of the central government in providing essential infrastructure and services on behalf of the government.  They therefore, have legal powers to raise revenue required to finance the provision of infrastructure and services.

The financial regulation of the Local Government Act provided the legal framework in which the council raises revenue and spends it. Before the council raised revenue from the residents and institutions eg companies, it must prepare and submit a budget for approval by the Ministry of Local Government and Housing.

The budget must indicate how much will be spent on service provision and related costs and on capital expenditure e.g construction of houses, new roads, markets, bus stations, etc.

The councils are expected to raise revenue from various local sources such as  

He however observed that since 1996, there have been a lot of changes that have affected the revenue base of councils including the removal of rentals through the sale of houses to sitting tenants, amending the Rating Act in 1997, which includes excemptions for  Churches, ZESCO, Mines, Zamtel, Zambia Railways from paying rates.

Again in 1997, the Water and Sanitation Act was passed which took way the water charges to the water companies. In the same year, the motor vehicle licenses was taken way and given to the Roads Traffic Commission.

There was generally a process of fragmentation of revenue bases of councils by creating several smaller, but unreliable councils, resulting in the complete destruction of the local government system. He said it seems as if the council now collects money from residents to sustain itself, rather than providing services to sustain the lives and economic activity of the residents.

He further observed that the key sources of revenue remaining for most councils which have managed to draw up current valuation rolls are property tax (Rates), personal levy-sources of revenue for councils with mining companies and manufacturing industries eg Kitwe and Lusaka, Market and parking levies and trading licenses.

In making a comparative analysis of the various sources of revenue and their relative contributions to the total council’s revenue, there is need to consider that the importance of a particular revenue source will vary from one council to another depending on:  

He criticised the current budgeting process as very narrow in consultation, and lacking in transparency and accountability. Currently, the residents are required to pass on their developmental proposals to the ward councillor who later submits these proposals to the Finance and General purposes sub-committee for consideration in the draft budget, which is then approved by the full council.  Members of the public are invited to observe the full council deliberations.

Instead, he proposed that the budgeting process should be widened to include consultation with key stakeholders, including the unions and associations such as Zambia United Local Authorities Workers Union and Alliance for Zambia Informal Economy Associations and the Zambia National Marketeers Association. In order to promote transparency and accountability, he considered that the key stakeholders should be encouraged  to observe the financial and general purpose sub committee deliberations.

Modus Operandi of Local Authorities-The legal perspective

The second paper was presented by Luanshya Town Clerk, Mr Andrew Mwanakulanga and was entitled Modus Operandi of Local Authorities-The legal perspective. The key points of his address were

Other laws which affect operations of councils are related to the work of the the Ministry of Lands and Agriculture, and commerce, transport etc.

Decentralisation policy- reinforcing the status quo or on opportunity for change?

The Decentralisation Director, Elizabeth Mvula ,from the Ministry of Local Government and Housing, spoke about the policy that the National Government recently launched.  

The aim of the policy is transfer the responsibilities, power, and resources to the local people. The policy document has four major components including restructuring of the councils.  

Saturday 19 February 2005  

The workshop continued with inputs through the paper presentations:"Enhancing local authorities service delivery- a consumer perspective". The Executive Secretary of the Zambia Consumer Protection Association, Mr Muyunda Illilonga, outlined the current situation involving poor delivery of services by councils.

BACKGROUND 

CONSUMER AND BASIC NEEDS:

Food, Shelter, Education, Health Services, Safe Water and Sanitation

LOCAL GOVERNMENT SERVICES TO THE CONSUMER

Basic infrastructure

CONSTRAINTS

WHAT MUST BE DONE

  • More consumer outrage
  • Punishment for failure
  • Improve collection efficiency
  • Further decentralization – Management Board

Panel Discussion  

Pat Horn facilitated the discussion on global experience of privatisation of public services and social movement’s engagement in anti-privatisation struggles. 

She gave an outline of the social movement’s key constituency including the landless people’s movement, the movement against third world debt, and the anti-globalisation movement.  

The social movement is diverse, and the strategies are equally diverse, but the social movement is driven by the principle of opposition to neo-liberalism and the attendant poverty, particularly in developing countries.

The three organisations including ZULAWU, AZIEA and ZANAMA gave their policy positions on the issue of privatisation of public asserts, including markets.  

AZIEA and ZANAMA agreed that markets should be managed by the associations or market committees but through the cooperatives, but the ZULAWU position is against the privatisation of markets.

Drawing up the charter of demands, and recommendations

Two mixed groups of AZIEA, ZANAMA and ZULAWU were set up to carry out an analysis of the common problems and challenges, and draw up the charter of common demands.

In their reports, they noted that, though they were indeed common problems arising from the fact that they were mainly engaged in negotiations with the Ministry of Local Authorities, they observed some differences that pose a threat to the formation of the alliance between ZANAMA and ZULAWU, and these include fear of loss of employment and revenue by ZULAWU, in case the markets are taken over by ZANAMA. ZANAMA however is very determined to take over the management of markets because of the failure of service provision by the local authorities, irrespective of the daily collection of levies.

The groups identified lack of accountability and transparency in the formulation and expenditure of council budgets, corruption and pilfering as the common challenge that they are facing.

Other challenges include little or no government grants in the national budgets given to the local authorities thus making the operations and programmes of the councils unsustainable.

The report also noted the heavy political interference by the ruling party in the management of councils.

Arising from the analysis of common problems and challenges, the groups formulated the common demands/resolutions including:

Evaluation

The delegates observed that the workshop was very informative, and gave an opportunity to both ZULAWU and ZANAMA to gain a better understanding of their differences and common problems, and the need to begin to build and strengthen the alliance based on the common challenges.  

They paid tribute to the organisers and facilitators for the democratic and participatory approach they used in ensuring that every one had his or her voice heard in the discussions and debates.

They however, noted that the two days of deliberation was not sufficient enough to discuss the issues in greater detail.

Recommendations

The workshop recommended that:

 (1) there is need to deepen the alliance building project through further education activities around topics addressing common problems, and should involve the local branches of ZULAWU and AZIEA and its affiliates.  

(2) the organisations should embark on a joint campaign focussing on the key issues, including the demand for better wages, and an enabling environment for market and street vendors.  

March 2005 PSI – StreetNet

Zambia project:  ZULAWU – AZIEA

Joint demands for negotiation with municipalities

  1. Participatory budgeting process involving all stakeholders including ZULAWU and ZANAMA.  

  2. Transparency and accountability – ZULAWU and ZANAMA expect reports about how revenue is being spent.

  3. Joint revenue collection – to enhance the revenue base of local government.

  4. Regular audits of local government finances.

  5. Provision of quality service delivery.

  6. Participatory management.

  7. Joint demands on grants to local government.

  8. Full community participation in all Council meetings.

  9. Joint collective bargaining on issues, which affect both ZULAWU and ZANAMA.

  10. Local Government Ministry to attend meetings of interest groups.

  ZULAWU – AZIEA partnership on community-stakeholder participation

  1. Joint campaigns and joint budget planning.

  2. Sensitise communities on roles of ZULAWU and ZANAMA (and AZIEA, since other AZIEA affiliates such as the Tuntemba Associations are also part of the communities) and get communities to pay their dues. 
  3. Capacity-building of ZULAWU, AZIEA/ZANAMA and communities for more informed participation in local government processes.
  4. Local government to provide a platform for dialogue and to be pressurized to support ZULAWU – ZANAMA demands. Local government to be pressurized to recognize alliance bargaining (i.e. jointly with ZULAWU and AZIEA/ZANAMA).
  5. Joint monitoring structures to be set up involving stakeholders.
  6. Membership of DDCC (District Development Co-ordinating Committees) would be important for the alliance.
  7. Local government to provide a platform for dialogue and to be pressurized to support ZULAWU – ZANAMA demands.
  8. Local government to be pressurized to recognize alliance bargaining (i.e. jointly with ZULAWU and AZIEA/ZANAMA).  

  9. Joint monitoring structures to be set up involving stakeholders. 

  10. Membership of DDCC (District Development Co-ordinating Committees) would be important for the alliance.

    11. It was agreed that these would be tabled for discussion with the ZULAWU NEC and AZIEA would circulate these to their affiliates.

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