Africa-Press – Zambia. One of President Hakainde Hichilema’s first acts was to order a stop to signing of new contracts and halting of payments to contractors and suppliers. The decision was apparently made to facilitate audits.
It’s now close to three months since this erratic decision was taken and now it’s unintended consequences are beginning to show. This single decision is beginning to halt the wheels of the economy. The fact is hundreds of contractors and suppliers have had their payments withheld thereby freezing huge financial resources.
It should be stated that these contractors and suppliers have statutory obligations that need servicing, they also have payroll related costs that need attention but most importantly, they have families that they need to feed and provide for.
Due to nature of their businesses, some these men and women sought the help of financial institutions to finance these orders from government and now the banks have come calling.
These hardworking men and women are now at risk of losing their houses and other properties they collateralised. They will be declared bankrupt and their families thrown in the streets.
The UPND administration has been signing a song of creating jobs using the SME sector. To develop a strong SME sector, we need to support the men and women who are working hard to grow this sector or else we will be hoping to get milk from a starved cow which can only give us rocks.
My earnest appeal is to President Hakainde Hichilema to quickly pay the contractors and suppliers allow the wheels of commerce to start turning again.
Once paid, these men and women will pay their workers who live in places like Kanyama, Chawama, Chiwempala, Chifubu, Mikomfwa and Lubuto who will also pay for their children’s school fees and the local grocery shop and that is essential to keep the liquidity running, as an Economist, Mr President, you ought to know better.
