Government pays off K308.5 million Ministries Debt to ZESCO, ZSIC and Zamtel

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Minister of Finance Felix Mutati
Minister of Finance Felix Mutati
The Government has paid K308.5 million of verified debt owed by various Ministries, Provinces and spending agencies to Zesco, ZSIC, and Zamtel.

Out of the amount, ZESCO has been paid K172.6 million, ZSIC 91.9 million and Zamtel K44 million.

The funds paid to the three State-Owned-Enterprises through a debt swap mechanism have been ring-fenced to off-set some outstanding tax obligations to the Zambia Revenue Authority, in line with the government’s fiscal consolidation initiative.

Commenting on the development, Finance Minister Felix Mutati has said the initiative to activate a debt-swap with the three companies is in line with the government’s fiscal consolidation policy through which the dismantling of arrears is one of the strategies being used to inject liquidity in the market and stimulate private sector participation in the economy through growth and job creation activities.

Mr Mutati has noted the positive performance of Zamtel over the last few months, adding that, “the government will continue to ensure that state-owned-companies are helped to commercially stabilize by cleaning up their balance sheet so that they compete favourably; grow their businesses; and, perform in a manner that is worth the money for which the public pays for the goods and services which they produce.”

Meanwhile, Mr. Mutati has disclosed that Cabinet yesterday approved the acquisition of US$200 million from the World Bank for feeder roads works in all parts of the country.

“In order to speed up our economic diversification drive, we need to facilitate the construction of feeder roads so that the agriculture logistical chain operates smoothly,” said Mr. Mutati, adding that, “when the programme commences, numerous jobs will be created all over the country from the time construction starts and as we progress in our economic diversification drive through agriculture, tourism and industrialisation.”

10 COMMENTS

  1. SO IN CTUAL SENSE ITS NOT CASH PAID TO THESE INSTITUTIONS , JUST DEBT SWAP WITH ZRA OBLIGATIONS ..AH SO NO SALARY INCREMENT IN ZESCO SCIC AND ZAMTEL THE CARDES ARE RIGHT MUTATI MUST GO HE IS JUST A CHANCER LIKE HERVE RENARD LIKE HERE HE IS SHOWING A PICTURE AS IF HE HAS PAID CASH AND YET JUST PLAYING ON OUR MINDS, IMF HE HAS FAILED TO GET US A BAILOUT, LOANS NIMBWEE FROM CHINA AND HE HIDES THE REAL FIGURES HE TRAVELS IN SO MANY COUNTRIES FOR INVESTOR MEETINGS BUT NO RESULTS JUST PLEDGES

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    • If you lack understand just ask dear. Debt swap simply means each party paying the other what is due. Do you have to criticize everything even unreasonably?

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  2. Free electricity, free talk time, free fuel , free SUVs for some, all paid for by the tax payer for PF theives and thugs….

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  3. Oh my God! That’s good news where did the money come from???
    I hope they did not borrow more money to pay off the companies??

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  4. Cadres appointed to be board members only for purposes of getting a salary how do u expect thes companies to do well? Board members for example at RDA who even have the audesity to demand expensive of the line brand new SUV’s. Instead of meeting in their board rooms they want to go to Livingstone to attract all sorts of expense allowances this is foolishness and stupidness of the highest order. But I blame the Head not the tale because all this none sense begins with the so called head of state who went with a plane load just to satisfy their sinful nature in the disguise of govt duty.

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  5. Cadres appointed to be board members only for purposes of getting a salary how do u expect thes companies to do well? Board members for example at RDA who even have the audesity to demand expensive of the line brand new SUV’s. Instead of meeting in their board rooms they want to go to Livingstone to attract all sorts of expense allowances this is f**lishness and st*pidness of the highest order. But I blame the Head not the tale because all this n*ne sense begins with the so called h*ad of st*te who went with a plane load just to satisfy their sinful nature in the disguise of govt duty.

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