The opposition Alliance for Democracy and Development (ADD) has warned that using a private equity to amortize Zambia’s US$ 750 million Eurobond may be a conduit for corruption.
ADD president Charles Milupi says corruption cannot be very far with the accumulation of extra interest that will come as a result of Zambia selling this Eurobond to a private company.
Mr. Milupi is also worried that the Country will end up paying more as it is obvious that the Turkish company that is hinted to buy off the debt may only want to make money out of Zambia.
In an interview via telephone Mr. Milupi has told QTV News that in his view the decision to refinance the US$ 750 million Eurobond using a private equity is a terrible decision to have been made.
Mr. Milupi states that this decision has also confirmed that government misapplied the Eurobond money.
He says his suspicions therefore are that the Zambian government borrowed this money for consumption and not to invest and create capacity to repay.
The ADD leader has lamented that his worry however is that Zambia is now highly indebted as a result.
He says Zambians should now take heed that issues of debt contraction must be by way of taking matters into Parliament for approval before the Executive is allowed to contract any debt.