Africa-Press – Zambia. Patriotic Front Presidential Candidate, Amb. Emmanuel Mwamba, called on the government to settle outstanding payments to contractors and suppliers. Amb Mwamba’s comments come in response to the announcement that the International Monetary Fund (IMF) President, Ms. Kristalina Georgieva, will be visiting Zambia.
“The government’s focus and efforts have been spent on resolving international and foreign debt, leaving domestic debt neglected,” said Amb Mwamba. He highlighted the local debt of K76.8 billion as being too large to withhold from the local economy and causing destruction to companies, small, and medium enterprises. “It is clear that the government is determined to impoverish its own citizens by withholding payments for public works done by the private sector and supplies of goods submitted to government ministries and agencies,” he added.
In July 2022, the Ministry of Finance appointed EY Advisory Services, PwC, Client Focus Solutions Chartered Accountants, CYMA Chartered Public Accountants, and Management Consultants, and Mark Daniels Chartered Accountants to audit the local debt accrued by the government. The areas of focus included value-added tax refunds, fuel arrears, farmer input-support program arrears, salaries, road contract arrears, and General Goods and Services arrears. The exercise was expected to take two months to complete and the consultants were expected to submit their final reports at the end of that period.
“The excuse that the local debt was being audited is no longer tenable as the consultants were given two months to do the work and submit reports. Government should not be allowed to willfully bankrupt local businesses for flimsy and unfounded reasons such as the entities were associated with the former ruling party, the Patriotic Front,” said Amb Mwamba. He called on the government to release the audit reports and pay the suppliers and contractors.
He also expressed concern at the delays for the government to obtain the much-publicized $1.3 billion IMF bailout. “It is clear that the bailout depends on the agreement by creditors to restructure or write-off Zambia’s debt,” he said. Amb Mwamba called on President Hakainde Hichilema to heighten diplomatic engagements with China to help resolve the debt crisis.
“All these visits to New York, Washington or Dubai have yielded nothing but mere Memoranda of Understanding. A visit to China will however resolve the current biggest economic crisis brought about as a result of the foreign debt,” said Amb Mwamba. He further stated that Zambia, like Chad and Ethiopia, owe China more money than any other creditors and the Creditors Committees so far established in these countries faced challenges to resolve the issues. He called on the Minister of Finance to concentrate on mobilizing local resources through collection of fair and just taxes, especially from the mining sector, rather than chasing the wind provided by the IMF. He also warned that the growing budget deficit will destabilize any measures to grow the economy and must be plugged by raising adequate domestic revenue, especially through the mining sector.
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