ZAMBIA is not broke, Finance Deputy Minister, Mr. Christopher Mvunga has said.
The Deputy Minister has described the assertions that the country has depleted its reserves as myths being perpetrated by people he termed as detractors.
He said Zambians should believe in President Edgar Lungu’s leadership and know that the country was being governed by a responsible Government pointing out that Zambia’s reserves were ‘safe and sound.’
In a statement released to the media by Zambian High Commission Press Secretary in South Africa,Nicky Shabolyo, Mr. Mvunga also defended Government’s contraction of debt saying this was necessary if the country was to develop. He said Government has not borrowed for consumption but for capital projects which should spur development.
“Zambia is not broke. It’s the myths of our detractors. Our spending is being done judiciously with a lot of costs having been cut down following President Lungu’s directive in November last year.
“If we don’t borrow, how is the country going to develop. We need infrastructure in place for investment to come through. Even in homes we all borrow to undertake a venture. We are not borrowing for consumption such as to pay salaries or things like that. Go to Zambia and you will see how the country has been transformed. That is where the money is going,” Mr. Mvunga said.
The Deputy Minister said the road network across the country has been developed to such levels that there was no difference between driving in rural and urban areas.
He said Government was not worried about the debt as it was still within the allowable threshold.
Mr. Mvunga was speaking when Government officials led by Mines and Minerals Development Minister Mr. Christopher Yaluma, met Zambians living in Cape Town on Tuesday night.
Others in the entourage were Mines Deputy Minister Mr. Richard Musukwa and Zambia’s High Commissioner to South Africa His Excellency Mr. Emmanuel Mwamba, and officials from the Zambian High Commission in Pretoria.
And Mr. Yaluma told the crowd that Zambia did not do a good job when privatising the mines as it was made to sign agreements with the investors that have come to haunt the nation today.
He cited agreements signed on energy for the mines and taxes as some of the areas that have resulted in the country failing to maximise on benefits which should be derived from the mining sector.
Mr. Yaluma said the PF Government was remorseful after seeing people in the mines lose jobs when one of its prime objectives was to create employment.
“Of course when we went into power, we promised jobs but we have been hit by what we never anticipated with regard to the copper prices and on top of that we have a serious energy shortage in the country.
“About 9, 000 people have lost jobs from the mining sector. It was not our wish to see this happen. We engaged the mine owners before they resorted to this action and we understood that they needed to shed off workers if they were to survive. It is not only in Zambia that such things have happened but Zambia is hit by not only low commodity prices but also a serious energy shortage,” Mr. Yaluma said.
The Minister said the revised Mines and Minerals Act has been positioned to ensure that Zambians benefited from mining activities.
He told the audience that Zambia had been transformed in terms of infrastructure such that one could drive from Cape Town in any type of vehicle to Shan’gombo in Zambia.
He said President Lungu has promised to see through late President Michael Sata’s vision of ensuring that each province had a university, the country was land linked to the rest of the continent through good road network, improved health and education facilities.
“Let us pray for the next term of office for President Lungu and I can assure you will see wonders in the transformation of our country
Mr. Yaluma also bemoaned the rampant corruption in Government institutions saying this had ‘killed the nation.’
An emotional Yaluma asked a lady from the audience who said she had been having difficulties to register her engineering company in Zambia as she was being asked to pay huge amounts of money at various stages.
The Minister said he understood the procedure involved in registering engineering companies and described this as a pure case of corruption. He asked the lady to provide particulars of all the people she had dealt with in Zambia so that he could ensure that they were dismissed and prosecuted.
Mr. Yaluma, who said he had plans of venturing into power generation, invited a Zambian engineering student in South Africa to partner with him in setting up a plant.
And Mr. Musukwa said Zambians have seen Government’s resolve to transform the country from being dependent to a self-reliant one.
“What we have been doing since 2011 is to lay the foundation and then you will see the fruits in the near future.”
Mr. Musukwa also explained that Government had no difficulties in paying mining companies tax refunds except for those who had failed produce the necessary documents.
He advised Zambians in the diaspora to be careful with what they read or heard from some sections of society as there were a lot of pessimists who wanted to make political mileage out certain situations.
On the question when Zambians living abroad would start enjoying the status of dual citizenship, High Commissioner Mwamba said there were certain pieces of legislation that were yet to be worked on in order to support the implementation of the new law.
Mr. Mwamba encouraged Zambians living in South Africa to apply for dual citizenship through the High Commission.
He said he has adopted an open door policy from the time he assumed office and invited Zambians to feel free to approach the High Commission whenever they needed assistance.
ok then pay all outstanding due you owe suppliers, students, etc
Yaluma is the only one who was realistic here. The rest were behaving like headless chicken.
To say that ‘Zambia is not broke,’ you must be looking at your own pockets, not the empty national coffers.
Any chakolwa will say ´´he is not broke´´ even when he has drunk his rentals and all his savings,, so mvunga is making a statement which is very familiar to him and all chakolwas ,,,,
ati Zambians in cape town, how can Ministers fly on tax payers money to addressing a handful of Zambian less than 40 people( look at those empty seats even their own camera failed to hide),,,, on mining issues in cape town for that matter???,, that’s a tourist city!! minister of tourism maybe should have been there!!! damn!! Christopher yaluma and your deputy ýou are more needed to answer questions from ex-miners on the copperbelt not uko ku cape town
@Ndobo, kekekeke, sounds you telling us from experience about the drunk ministers. And when drank we go counting money in toilet, $1 notes look like $100 notes! Ati we are not broke, even flying all the way to Cape Town just to drink.
Look at that panel, all harms folded… Look at at audience, so sad.
Another DRUNK pretending to be SOBER – Instead of just keeping quiet in front of the international community, who really know what the situation is, HE NOW LOOKS & SOUNDS MORE FOOLISH than he REALLY IS!!!
Not broke? You must be joking!!!!!!!
Zambia is WORSE THAN BROKE! Broke is when you have no money. Zambia has EVEN LESS THAN NO MONEY!!!!
Zambia now has TEN BILLION US DOLLARS KALOBA! Which will all have to be paid back WITH INTEREST before we even get back to just being “BROKE”
Which part of this simple arithmetic do these PF dunderheads not understand?
Give the money to Akufuna for him to register our relatives in the far and hard to reach places since you are not broke.
Does one really need three cell phones to function?
depends on your life style. Just like cars or shoes or girls. you cant use them at the same time, but hey.
One for the wife, one for stalkers and one for work, all paid for by GRZ.
He looks drunk may not know what he is talking about. I thought Governor BOZ said government was depleting the small savings we have.
That is the problem with PF, they are allergic to figures. Actual amounts are donchi kubeba for them. How much reserves does the country have.????.
This secrecy is to facilitate stealing, that why they never mention figures.
@Patrick,my point too. Where are the figures to show us how much is in reserves and how much you are spending to meet your budgetary obligations? That is the problem with these guys. Everything is shrouded in generalities!
I thought Mvunga was an accountant? He probably did not qualify. Being broke is failing to pay debts as they fall due. For a govt, debts include pensions, student allowances, salaries, and telephone, electricity and water bills. If PF are failing to pay these now, wait until 2020 when the first Eurobonds are due. You will then surely know that Zambia is broke when there will be defaults like Argentina and Greece.
You are right. Perhaps he got his ACCA from Matero. Like you have highlighted, being broke is failing to pay debts as they fall due. Those are basics in accounting and you would expect the deputy minister to know better. Why deny things which we can all see?
Am a Zambian based in Cape Town and attened this meeting. I totally agree that Zambia is not broke. Why do i say this;
1. The venue for this meeting cost nothing less then US$10,000
2. Drinks and Food were on the house (wine, beer,etc)
3. All govt officals had 3 cell phones top of the range
4. Each Zambia govt officals arrived in hired Benz without sharing.
Hope they come again coz we partyed all night, boy Chris can dance.
Thanks for coming, hope to see you again
Kkkk….you made me hahahaha plus kkkkkkkkl!!!
Zambia is not broke? My foot.
This once prosperous nation in now more heavily indebted than at anytime….every project including roads going to no where are funded by borrowing from kaloba!!
How can you brag that all households borrow. Show me a home that borrows for all capital projects in Zambia and right there you have a failed home!!
How can this government glorify reckless borrowing ?!!!
lol Mary Zimba, good you had a good time but those bufoons were spending donor funds whilst universities are closed because they have no money to pay students meal allowances.
But your flag is in Europe or some country look at my flag in Australia,how the hell did you travel so fast mama
@Muna. Got nothing to do with flags. Believe me, Mary was there. So was I.
Can someone help me with the meaning of the word crowd, i think it has lost it’s meaning under pf, i see a sparsely populated room with a lot of empty white seats in the background, things have started falling apart for pf indeed, hey LT how about some flashback, can you give us the video of Chris in his bedroom attire sipping on jemasons after receiving the news of his appointment deputy minister, i think that’s when some people will understand what we are dealing with.
If the privatization was done has only come to haunt us during chagwa ‘s reign am afraid we need to get rid of him through the ballot, so that we won’t be haunted anymore, i mean privatization never haunted us under chiluba, mwanawasa, rb is godfather, and mcs, why him,get your voters cards ready and help him help us get out of the haunted zone. Period.
I have always disagreed with govt innuendo and even outright lies. Records are there. Government must provide a list of companies that were privatized and price paid. Importantly they must name the officials and organization that signed the sale agreement (who sold the companies).
Then provide the list of consultants for each privatization. And funds paid to each…lawyers, accountants etc.
I want to see for instance where and how Grant Thorton under HH then benefited.
I am tired of obtusfication and outright calumny.
@Maindre:
I’m contributing from a neutral point of view.
Govt has all the information on the privatisation of the ZCCM mines, including the signed contracts Mr Yaluma is referring to, but they can not publish it. This accusation on HH is a political tool to convince the less educated that HH in his personnal capacity, sold the mines and this disadvantaged miners and the country at large, while HH amased lots of money from the proceeds. If someone has this concrete evidence on HH, why can’t the Law take its course? Surely most Zambians want to know the whole truth on this matter, ZCCM belonged to ALL Zambians and not any single political party.
@KuzangaChami
Should deceit and lies be accepted albeit a political tool?
The Mines if you recall were privatized under the leadership of Francis Kaunda and ZPA privatization team led by Valentine Chitalu.
My concern is that the usual gullible Zambian voters are being deceived en masse by this failed govt.
I speak from a position of authority and total knowledge but can’t divulge …… confidentiality oath …lol
Did i forget something, yes! By voting him out.
It is good Chris will be entertaining the crowds with dancing before PF goes out.
All these *****s who hide facts and figures about expenditure and our reserves only went to counter HH. All went on GRZ expense.
Sounds like the “Hon” deputy minister may already in the first stage of grief for his soon to be lost job: DENIAL.
Next from PF, I expect we will see anger, bargaining, despair and so on.
bloggers, this dm called mvunga is an *****. in as much as i appreciate him for being honest for confessing that our roads have no difference between rural and urban. a normal man can not say like that but am not worried because he is a male prostitute who has never seen the state of our roads e.g solwezi chingola road.
If anyòne thinks this country will move ahead with this calibre of leaders, you need to think again!
The Chief Borrower, Chwrote to.ECL on.the fire straitABChikwandafiree nation was in resulting from depleted reserves.
The Minister of Finance put it as simple.as ABC that Xed is broke!
I choose to believe what ABC spelled.out rather tthan mendacious Mvunga.
Christopher Mjinga is dull indeed.Zambia’s forex reserves and economic growth rate have all downshifted since the time Rupiah Banda had both at record levels
…this denial reminds me of MCS health…exactly in similar manner denial after denial until he was no more…..to make things worse, even a doctor wife joined in
….just the other day Kaingu stated that students are supposed to be patient as the govt is looking for money to pay them…look for money from where..??
Ka chakolwa ka chabe chabe kamuntu aka!
Educated UPND i didnt see HH’s name mentioned when our minister mentioned privatisation. All real Zambians demand for is how can someone who went into privatisation borrowing trousers come out rich. The circumstance in wich your god made money makes us wonder
I am wondering how come 1mbecile like you has been let out from nut-house?
As to borrowing trousers, just look at your humble, visionary and anointed idol official photo, where did he buy second hand shirt?
Transaction advisors and investment bankers the world over make a lot of money in transactions that they handle. Encourage your children to consider doing economics, studying for CFA and working as transaction advisors, it will help your family! Encouraging your children to continue with the ordinary trades like carpentry will not help you! There is a much bigger world of opportunities out there!
NI MICHAEL JACKSON MVUNGA, ALANDILE???
So it must be true “Zambia is NOT broke”.
Jacko Mvunga, you don’t know what you are talking about!! Go back to what you do best- Breakdancing.
After August when a serious Government is elected to office, Cadres like you will never get strategic, important positions in government, therefore you will be free pursue your dancing vocation on a full time basis, ni – ” Breakidance, – iya ku Botswana”
Finance Deputy Minister, Christopher Mvunga is a shameless man and very selfish man who have no feelings for what many Zambians are passing through. how can he say “Zambia is not Broke, It’s a myth of our detractors-Deputy Finance Minister”, when the two universities are closed. I do not know what president Lungu thinks about this minister. If I was the president I would have fired this minister on the sport. No wonder Zambia is not doing well we have many ministers who are actors. Pretending all is well when things are dire. God does not delight in a country whose leaders are pretenders.
“If we don’t borrow, how is the country going to develop. We need infrastructure in place for investment to come through.”
In other words, the Zambian people are paying for the roads for the mining companies – who don’t pay taxes at all, let alone what they owe, if they pay taxes at all. And the PF/MMD/UPND think they can hide this neocolonial theft under the term ‘development’.
Either there is going to be a demcratic government that is responsive to the people, or all the debt should be scrapped.
IT IS SHARE WASTE OF TIME TO LISTEN TO THIS OUTGOING LEADERSHIP WHO REFUTES WHEN ONE SAYS THE TRUTH.
CAN THE DEPUTY MINISTER OF FINANCE TELL THE NATION AS TO WHY THEY HAVE FAILED TO PAY OUT TO MANY CONSTRUCTORS?
This mvunga chap has either forgotten accounting, drunk at interview time or just politiking. Roads? U mean roads in muchinga only? There is no kilometer of road ever done in the northwestern where the riches are. Wanza wenu.
How can you be both in debt and “not broke”? It’s one or the other. Just saying…
Just google debt/GDP percentage and inform me if you will find a country that has no debt. Of course other countries borrow more than others, USA 102%, Japan 230%, Zambia 31%.
You cannot compare the USA and Japanese economy with Zambia’s poor state of affairs.
Zambia is purely mismanaged and Mr Mvunga you know this – YABA. hOW can the government fail to pay university students? Why are food prices and fuel prices skyrocketing. In USA FUEL is cheaper than drinking water….! $1 per gallon – USA population is far bigger than Zambia – if you want to make comparison – Compare Bostwana GDP to Zambia’s national GDP. That is the comparison to go for..!
DON’T COMPARE things you do not understand.
You are confusing the control of expenditure to lack of money. There is always the possibility of printing more money to meet government expenditure but most sensible governments resist this because it results in hyper inflation like what happened in Zimbabwe where there was even a trillion Zimbabwean dollar note. As for the price of oil in the USA it produces its own oil through hydro fracking which has caused the current oil glut. There has been a drastic decline in revenue and this has an impact on expenditure but that does not mean government is broke. Government technically do not get broke because they borrow or print more money which results in hyper inflation. There is my voodoo economics.