NAREP PRESS STATEMENT
SALARY INCREMENT OF CIVIL SERVANTS
We would like to clearly state that as National Restoration Party; we are in support of the salary increment of salaries of civil servants by the Patriotic Front. We commend the government for taking this step as this will better the lives of the Zambian people.
However, we take note of the fact that there has been a great talk about the budget overrun, which in fact was accepted by Finance Minister Honourable Alexander Chikwanda after a long time of resistance.
[pullquote]As NAREP we therefore demand to be informed as to how the Patriotic Front government will create the necessary resources to meet this huge budgetary responsibility/undertaking.[/pullquote]
It therefore means that the budget overrun will even be worse than reported because the increases will have a negative impact on the national budget and will also escalate the inflation rate in that there is little or no production in the country.
We are also reminded of the fact that there was a report in the Daily Nation Newspaper on Friday September13, 2013 that the salaries will be met by the Eurobond, a situation which is not acceptable as a Eurobond is not meant to meet salaries but designed to meet capital projects.
As NAREP we therefore demand to be informed as to how the Patriotic Front government will create the necessary resources to meet this huge budgetary responsibility/undertaking.
We are also appealing to the government to help the people in rural areas by ensuring that clinics and schools are built. Also, the PF government needs to ensure that people in highly populated areas have proper roads and safe water to drink.
Rev Jevan Kamanga
National Secretary
National Restoration Party (NAREP)
Daily Nation report on governments instruction to divert funds from Zambia Railways and Zesco Eurobond fund
……..as less than 200,000 public servants to gobble 60% of the budget
The PF government is reported to have instructed commercial banks to withdraw Eurobond funds from Zambia Railways and Zesco to fund the 200 per cent salary increment promised to civil servants.Bank sources have revealed that the government has instructed the withdrawal of the US$120 million and US$255million, from Zambia railways and Zesco respectively, to cover the anticipated shortfall.The sources said after exhausting all avenues, the government has decided to withdraw the monies from the commercial banks and channel it to the September salary hike it promised civil servants.They said apart from the US$750million Eurobond debt, the government was looking for a US$200 million extra fund in an effort to raise money for the salaries.
The projects the monies were intended for would have to wait until government sorts out all it financial problems.The government is reported to have issued bonds on the local markets to raise money to fund salaries for the civil servants.The cash-strapped PF government postponed the salary increments to this month end after a greater part of its revenue was spent on political manoeuvrings in form of bye-elections.But former finance minister Ng’andu Magande has said that the governments move will increase the cost of borrowing and starve local entrepreneurs of capital.
“If you borrow on the local market, the banks won’t have liquidity because governments take long to pay up for the bonds. This means that if an entrepreneur wants money, the bank will lend it at a higher cost as the bank will need to settle its running costs from the little money remaining after government’s borrowing,” Magande said.
Government sources told the Daily Nation that the government had been prompted to sell the bonds after noticing that it had no money to pay the civil servants.The only way government could pay salaries was by borrowing money from the commercial banks by using bonds.
“We can confirm that the government has embarked on a mission to raise money for salaries for the civil service. Some commercial banks have been talked to already about the issuance of these government bonds.
“This promise has now forced government to sell government bonds in an effort to have money for the new salaries. The PF government will miss the deadline to pay the Eurobond and this is not health for the nation. They have decided to divert monies that were meant for projects saying that those projects were for long term,” they said.
The minister had earlier announced that there was an over run in the budget and that civil servants would only be paid their 200 per cent salary increment in October but in order to avoid pressure from the citizens it u-turned and promised that all civil servants would get their increased wages this month end after serious consultations.
In the early 1990s, the MMD government in which President Sata served in engaged in reckless borrowing and the economy was only saved a debt cancellation campaign led by the deceased Cardinal Medardo Mazombwe.
CNP
The PF gvt is being taken for a ride. Even people who know nothing abt how a gvt is run are issuing alarming statement. Shm!
Ba Chipimo. Silence is golden.
The economic model in use here and which I suspect is only peculiar to Zambia is called ‘The Fikaisova’ model which in short means rush to sort out short term problems to the extreme detriment of long term ones. Come now people, why whine? Why complain when everyone was in the know about the lack of strategic thinking of the dunderheads at the helm of this our great nation. GBM, Wynter, Sata, Kambwili, Nsanda etc. come now, wipe those tears. These are your people, let them lead you.
What do you expect from Sata’s government, Sata himself is a liability he does not know how generate income apart from chewing our tax,
Which president among the parties we have do you think can make a better president?HH? Nevers ?Mike? Hahahaha…….
They spend all the money creating superficial jobs for the trees in the Muchinga forest. A Tribal government is a huge cost to the nation.
My dear even those same threes in Muchinga forest are not happy with what’s happening in CNP government..
Ba Rev Jevan Kamanga. Is Daily Nation a credible source? Think before you make your useless demands!!!
Very credible compared to The PAst newspaper and the the two state dailies combined and we love it!!
mphangwe,
just say that anything anti pf is welcome whether credible or not while anything pro pf is unwelcome whether good or bad.
A lazy civil servant will now be taking home more than K10,000 this is
more than what most world vision employees get. Sorry civil servants we don’t have money to give you. you will remain servants its 4% take it or leave it
U must be a kanti! Just because have a 2 year contract with an NGO you think you’re better than civil servants. Civil Servants of nowadays are better qualified and deserve pay and conditions of service.
You are foolish! Are you not aware that civil servants are amongst the most educated hard working members of our society yet very lowly paid? get a life chi P.H.D. iwe!
With the stooges heading ZRL and ZESCO, we will never know but I would not be surprised if this lot was using borrowed money to pay salaries. No wonder everything has gone quiet at ZRL.
these are just hearsays, shame!
This Government is proving to be another poison gas to the Zambian people. Where will the other cash flow come from to finance the projects it was intended for? What are the income generating projects for the year 2013 to 20215 or there is Nada?
I have a lot of questions concening this Euro bond, how are they going to pay it back? This is scary movie we are watching in Zambia, can these politicians, highly payed judges and Lawyers give up 10% of their pay? How are they going to make up that gap? I wonder how Zambias financial build up looks like at the moment, so sad, this should just give us a clue of how broke our country is.
One other thing…… is it within the legal capacity to get a Bond for a certain project with the intention of deviation?
good question mama.
Pukucwes,malengwami,thieves or robbers.
tekanyo oh sorry tekanya sana cindy! the government is working, ask any civil servant.
totally not funny dude. any guy who disrespects a woman like that does not deserve the two oranges and the kama banana (in your case) that hangs between their legs.
be reasonable someone is asking seriuos questions and you busy insulting.rubbish
Says alot about ones upbringing when they find it normal to use profanities whether privately or in public without any qualms.
iwe ka dudelove? is it not a typing error? are you bloggers association spokesperso. ukutumpa makaka!
stop it.
a wrong is a wrong no matter what.
just own up…..
That’s why in copperbelt we say HALAISE HALAISE 2016
We are smack bang in KK era of over-spending that drove our nation to its knees. History is repeating itself as we watch them ransack the coffers and reduce the nation to pauper status once more. Is it normal for a small govt like Zambia to employ 70 ministers and hundreds of thousands of civil servants?
Where to mother Zambia? Can someone in the corridors power clarify these issues please?
ba NAREP now everything watch imbwa write is gospel truth
If NAREP you get the answers to your questions, count yourselves very fortunate indeed. For the answers provider does not have answers to your questions, not by desire though.
Why are you people so petty and jealous, the civil servants have been suffering from time immemorial with low salaries and yet you chaps have continued enjoying being paid hefty salaries and then we go to the same shops with our meagre salaries. Leave the govt alone to please the workers and bring back sanity among the suffering civil servants. You just condemn anything in order to make you look like you are the only people God made to live lavishly and yet you continue even laughing at the low salaries these men and women have been getting. Go hang yourselves if you are not happy. Viva PF, more money in our pockets.
Typical Bemba reasoning. You cant see that what you are proposing is unsustainable? That money is nkongole and needs to be paid with interest. If you dont pay it back your kids will have to. Salary increments should be based on increased govt revenue due to higher production which means that companies pay corporation tax and from individuals who are gainfully employed. Additionally, the tax base should be widened to include all those ba pamwambas like Ukwa who earn money from renting out their properties but pay no tax whatsoever on the income they earn. Cheap populism will not take the country anywhere. Besides the euro money was meant to be used in building badly needed infrastructure which would help the economy to move forward and not on consumption.
We are doomed to face disaster if this will be so. Where are we going and what how far is the Eurobond fund projects? We here about Zambia Railways ,ZR,ZR here and there but no tangible program as at now. Roads are worse especially Solwezi – Chingola road because of the heavy trucks taking our copper away. Please we cry to the president that we must fall into a crisis on behalf of pleasing the civil servants. The market price will also be raised once the increament is made so as to go with current situation. Bafilwa mukwai.
We are doomed to face disaster if this will be so. Where are we going and how far is the Eurobond fund projects? We hear about Zambia Railways ,ZR,ZR here and there but no tangible program as at now. Roads are worse especially Solwezi – Chingola road because of the heavy trucks taking our copper away. Please we cry to the president that we must fall into a crisis on behalf of pleasing the civil servants. The market price will also be raised once the increament is made so as to go with current situation. Bafilwa mukwai.
Ci chipimo iwe do u ve facts or isuing armchair atack on govt?Just get a job & become civil servant.
If u can’t make sense from chipomo.or magande then continue voting for PF coz education doesn’t make sense to u lot.
Its basic common sense. How can you get kaloba to pay for salaries? And what happens next year with the repaiment of the kaloba and the unsustainable salary increments? Its true this government is CNP.
Seleniko tubombeko, we know that you just oppose anything without facts, by the way has the govt said they will pay the revised salaries for civil servants from the eurobond? The govt has money and will never ever go bankrupt. This is just pure jealous because some of you people enjoy seeing others suffer so that you look like you have got better brains than others. You have been receiving heft perks from your so called corporate organisations and we have never complained as civil servants that your perks be reduced. The govt wants to introduce a micro finance bank that will lend money to civil servants at 5% interest, you the same chaps complain that the move will make the banks fold, what do you want kansi imwe bantu? This country is not only for a few greedy and selfish chaps. Viva PF.
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