The FDD has advised Ministry of Finance public relations officer Chileshe Kandeta to stop playing politics with the country’s rating by Moody’s but that he should concentrate on giving the public and accurate information.
Commenting on a statement issued by Mr. Kandeta on the recent negative economic rating of Zambia by Moody’s, an international credit rating agency, FDD Spokesperson Antonio Mwanza called on Mr. Kandeta to stop deceiving the country that rating companies needed permission to assess the country’s economic outlook.
He noted that Moody’s was a reputable and internationally recognized rating agency which does rating on every economy in the world including the USA and their assessments are based on facts and professional analysis hence Mr. Kandeta as a professional himself should give accurate information to the public.
“It is totally wrong and unacceptable for Mr Chileshe Kandeta to be playing politics with the country’s credit rating by Moody’s. Mr. Kandeta should be giving the public accurate data no matter how bad the truth is. To try to rubbish Moody’s down grading of Zambia’s economic outlook from positive to negative and say that we should as a country ignore Moody’s assessment just because they were not consulted and not solicited for to comment is totally misplaced.
First and foremost Moody’s as a rating agency does not need permission from anybody to do an assessment of the economy. This is a renowned and internationally recognized rating agency who do ratings on every economy in the world including the the US, China and the rest of Europe. They are a reputable agency that every world economy looks up to because their ratings are based on facts and professional analysis and we expect professionals like Chileshe Kandeta to give the public accurate and unbiased information.
To try and rubbish Moody’s and justify it by using Standard & Poors Mr. Kandeta is actually shooting himself in the foot” continued Mr. Mwanza “when Moody’s does an upgrade of our country’s economic outlook Mr. Kandeta is the first to issue statements quoting Moody’s is but because the opposite has happened his position on the same agency has changed.”
Mr. Mwanza observed that the assessment by the rating agency was in tandem with the realities on the ground.
“What we want to say as FDD is that the assessment by Moody’s is in tedium with the current economic realities on the ground. In fact we don’t need any international rating agency to tell us that our economy has collapsed. The failure by many families to secure three meals a day, send children to school, the laying off of workers, the growing debt, the failure to pay farmers, lecturers, retirees and contractors is enough evidence that our economy is in trouble. The Bank of Zambia has been telling us that we are in trouble because we are spending more than we are earning, that Zambia has projected deficit of up to 20 Billion Kwacha. Our trade deficit is at its highest. The Government’s balance sheet is negative and it is increasingly difficult for this Government to pay its dues.The Kwacha has plummeted in the last quarter, losing 41% of its value making it the worst performing currency in the world.[/pullquote]
The Kwacha has plummeted in the last quarter, losing 41% of its value making it the worst performing currency in the world. The cost of electricity, fuel have all gone up. Companies are cutting down on production by 40 to 60% due to the critical power shortages, mines are laying of workers, copper prices are down and the cost of doing business is at its highest since independence so its common knowledge that Zambia’s economy is crumbling even paying salaries for civil servants is becoming difficult that Government has to borrow money from somewhere and announce to the whole world that they have managed to find money to pay salaries to civil servants and Mr. Kandeta has the audacity to rubbish Moody’s,” he said.
Mr. Mwanza challenged Mr. Kandeta to tell the nation what his Ministry of Finance is doing about the plummeting Kwacha which has hit K11 against the Dollar and what economic fundamentals are being put in place to arrest the kwacha’s free fall.
Our President Edith Nawakwi warned that injecting 120 million US Dollars of kaloba to stabilize the Kwacha was worse than gambling at a casino in Las Vegas but they rubbished her advice and called her names.
“Our President Edith Nawakwi warned that injecting 120 million US Dollars of kaloba to stabilize the Kwacha was worse than gambling at a casino in Las Vegas but they rubbished her advice and called her names. She told them that before thinking of injecting money in the economy there was need address the economic fundamentals that have plunged us into this economic abyss but they didn’t listen. Now just as she predicted 33 days ago the Kwacha is at its lowest and will hit K15 to a Dollar before 2016. Our challenge to Mr. Kandeta is that he tells the nation what his ministry is doing to arrest the free fall of the Kwacha instead of playing politics over Moody’s.”
Meanwhile, the FDD has condemned the chartering of a private jet by Government to take Republican President Edgar Lungu to New York at the expense of poor Zambians and economic hardships in the country.
With all these economic challenges were we are failing to pay civil servants we have a President swimming in luxury at the expense the masses who are failing to have a single meal.
“As FDD we are actually surprised that amidist all these challenges we have a President hiring a private jet at a colossal sum of 300,000 US Dollars to go to New York. With all these economic challenges were we are failing to pay civil servants we have a President swimming in luxury at the expense the masses who are failing to have a single meal. The problem with Edgar Lungu and his PF Government is that they are not patriotic. Their philosophy is that this is their turn to eat. That is quite immoral to say the list,” Mr. Mwanza noted.