The opposition has tabled a private members motion in parliament that seeks to cut the powers of the Finance Minister from being the sole signatory of foreign debt.
The motion, which was tabled by the opposition through Chipangali MP Vincent Mwale (MMD) yesterday, is looking at ways of ensuring that in future, legislators have a legal say in accruing debt in order to increase oversight and transparency.
Mr Mwale argued that Zambia is sliding into serious debts that could affect the country negatively in the near future if it is not ‘slowed’ down now.
“We want transparency in contracting external debts. Bring it to Parliament so that members can have a say,” he said.Mr Mwale said the MMD government was moderate in the way it borrowed.
He accused the PF government of sky-rocketing the external debt in just two years of being in power.In seconding the motion, Choma Central MP Cornelius Mweetwa (UPND) said loans contracted by Government affect the whole nation and hence the reason people’s representatives must be involved.
Mr Mweetwa said Zambia lacks legal capacity to manage external debts and that there is need to put in place an Act of Parliament to control borrowing.He said the motion is non-controversial and therefore needs support.
Solwezi Central MP Lucky Mulusa (MMD) said the motion presents an opportunity to safeguard posterity and avoid locking the younger generation into a future debt they did not accrue.
This wil truly affect us as young ones in the next tomorrow.it should do samething.
There is truly need for tightening of the process. A reckless Finance Minister and President can easily put the country in serious financial distress.
MMD refused when this was proposed but now that the shoe is on the other foot, suddenly we have become wiser!! Anyway, “two wrongs never make a right” I therefore also second, or is it third the motion! The current levels of expenditure by this govt can make a Tea Partier from Texas think Obama is actually a saint!!
Wasting your time dudes. Up to now don’t you know who you are dealing with? Some of us are resigned to just gritting our teeth and wincing (ukushipikisha) till 2016 when hopefully the insane and retarded and sick will make their exit and then we can come back to normally with most of the world. Right now whether we like it or not tule buta. They will continue dazzling you with building projects and roads but all this was already WIP when they came in, the only difference now being that people can no longer afford a decent living. what sense is there in walking along these beautifully tarred roads with a rumbling tummy?? I, unlike most tuma Sata worshipers on this blog, live in Zambia so I am seeing things first hand.
Please STOP that monkey before he sends the country into unustainable debt again like he did in the 70s. Please stop him!
We are working to avoid such blogging soon we will surprise you.
Hope this goes through. More money in politicians pockets, @ the expense of Zambia acquiring Toxic debts it will NEVER be able to pay back, is so concerning.
If opposition is mature spreading authority on borrowing is welcome,opposition but risk frustrating development that needs cash to make govt appear doing nothing.
Development of foreign private accounts outside supervision of BOZ?
Zambia has already paid US$41.5Million in interest on the 750 million Euro Bond which this PF carelessly took.As of now,Zambia Railways and may be ZESCO have not yet touched the money allocated to them.What then is the economic benefit for this Euro Bond as compared to the whooping $41.5 million paid in interest.Since this money will be paid after 10 years in a lump sum the total interest that will be paid over the period will be $415 Million or 55.3% of the Loan.In Zambian language we call this type of interest as KALOBA!!!
It is all about excitement and failure to look at things critically and think for the future generation. Most of our leaders are thinkers of today only and tomorrow anti fikayisova… what a way of thinking.
Its a good think as it ensures transparency and protection of those taking the risk in making country decisions that affects many and ensures that they themselves are enshrined and protected from any eventuality but however it should be not a situation of stifling and shutting down government by those in parliament.The Justification by the minister to go into the market must be sincerely debated on and not politicized and should only happen at the later having carefully done his forecasts and analysis otherwise which should have been approved by the normal budgetary process. Yes in the world of speculations and times there will be time when the minister will need supplementary approval but
The Justification by the minister to go into the market must be sincerely debated on and not politicized and should only happen at the later having carefully done his forecasts and analysis otherwise which should have been approved by the normal budgetary process.
Yes in the world of speculations and times there will be time when the minister will need supplementary approval but it should be in line with market efficiency.
It can be that the minister will need to react fast to cover his positions on the budget but the regity of parliament must also allow that flexibility.
Transparency is a normal as it improves efficiency in sectors and reduces in the cost of doing business but it…
but it requires change in reporting treasuries and legal framework. You actually do well to post reports as done by accountant general and Ministry of Finance on receipts and expenditures monthly cash flow forecasts and financing strategies or decisions.
This helps members see and sincerely support the Gov efforts in line with markets its trades in its should not be like the near mishap were Obama was held at hostage.It requires a rethink in the treasury arrangement and processes we have at now.
Zambia internally and its Financial sector given its Budget amount and Amount in GDP and correct Financial Engineering and Initiatives has a lot of potential to support itself and be a shining example
The opposition have made a healthy observation. Their proposal needs to be supported.
This is a great proposal but it needs to be checked as well. Reasons for borrowing are always floated to these guys and the now want to distance themselves to make Zambians think that they are innocent…seeing through the lenses they are actually fostering it.
All in all borrowing for the right reasons when you have the capacity to pay back is not bad but borrowing for consumption is lethal and will drive this nation into chaos.
we need stringent measures and forums made regarding issues of this nature.. This government will sell Zambia and all that’s in it including our relatives…ndeloleshafye
There is nothing wrong in borrowing for developmental projects which include roads, hospitals, schools etc even though these projects don’t bring immediate results. Some projects like power generation bring immediate results.
What is wrong is to borrow for consumption like for paying important people like nurses, teachers soldiers, doctors, politicians etc.
@spartan
Iwe nga wakongola sana tuloba and become heavily indebted, future borrowing will be more expensive and your credibility to borrow ends up in a mess. This means finding willing lenders becomes harder than ever.
People like making analogues with west for wrong reasons.They think Zambia can just borrow like the west does, forgetting that the west has capacity to repay the loans because they have accumulated a lot of gold reserves which they can offload to the market on a rainy day.
@spatan
It does not make sense to use words just to sound nice…! It is very wrong and very bad to borrow money to which you have no plan to raise and pay back.
First time in a long time the opposition is doing something credible. This is great news.
Great news. For sure am surprised to hear the opposition in Zambia being forcused and reasonable. If we can see our parliament debate such cardinal issues, we can be assured that our country is paused for a great future. This is indeed credible and merits the support of all of us. Well done!