9.5 C
Alba Iulia
Sunday, July 5, 2020

BOZ objects to removal of clause requiring Parliament Approval to get Debt for the Country

Headlines BOZ objects to removal of clause requiring Parliament Approval to get Debt...

Bank of Zambia Governor Denny Kalyalya displays a Kwacha note to Journalists during a news briefing
Bank of Zambia Governor Denny Kalyalya displays a Kwacha note to Journalists during a news briefing
The Bank of Zambia has opposed the proposed constitutional amendment to remove the National Assembly’s oversight role on the contraction of public debt.

Section 13 of the constitutional amendment Bill number 10 proposes the amendment of Article 63 of the constitutional Act by the deletion of provisions requiring National Assembly oversight over contraction of public debt and ratification of agreements and treaties.

Bank of Zambia Governor Denny Kalyalya said that the National Assembly’s oversight role on the contraction of public debt is critical in a democratic dispensation like Zambia.

Dr. Kalyalya said that the Central bank feels people’s representatives in parliament should have an opportunity to scrutinize the intended purpose of any debt and any international treaties.

The Governor was speaking when he made submissions on behalf of the Bank to the Parliamentary select committee to scrutinize the constitution amendment bill number 10 of 2019
And in response to Lusaka Central Member of Parliament Margaret Mwanakatwe who wanted to find out what would happen if there is an emergency to borrow and parliament was not in session, Dr. Kalyalya said parliamentarians can still be recalled when there is an emergency.

Meanwhile, Dr. Kalyalya opposed the proposed amendment of article 60 which deals with political parties because it will remove provisions requiring parliament to prescribe management issues of political parties which include an obligation to disclose the source of funds.

Dr. Kalyalya said it is important for political parties to state their source of funds so that it is clear to the public that it is not from proceeds of crime.

He further proposed that the requirements for a candidate to the office of secretary to the cabinet should be maintained to the requirement of at least having served 10 years as Permanent Secretary or equivalent rank before being appointed

The Central Bank also rejected the proposal to re- introduce deputy ministers.

[Read 6,638 times, 1 reads today]


    • Agreed. If half the parliamentarians could approach national issues in a non partisan manner as the BOZ has done on the topics under discussion, Zambia would prosper.

    • Unfortunately he will be fired soon.

      For some reason, this government does not entertain progressive minds. Many have tried, many have been fired.

      You learn fast if you work for Lungu. Keep your mouth zipped, or look for another job.

    • We should be asking why anyone would want to change the status quo. Why? Why? Why? Whose proposal was it anyway? And this was passed by the NDF?

    • The state, or public sector or govt is forever. It’s spending plans should always be planned in advance bcos of that. There’s a budget for Disaster and Emergency Dept under the Vice-President’s office which receives funding. And who can lend money to govt in an emergency? Every good lender needs a credible plan from the borrower.

  1. How can anybody make such proposed Amendments affecting Fiscal and Monetary Policies without consulting Ministry of Finance and BOZ? This is a Chipante pante way of doing things. Who wanted these changes in the First Place? This format of Amending Constitution is absurd to say the least.

    • @Collins,
      When these proposals were made Maggy was Minister of Finance and these proposal were right in her eyes.
      No wonder she is still defending them by saying “WHY INVOLVE PARLIAMENT – BECAUSE THEY GO ON RECESS?
      I am happy that Denny Kalyalya had all the answers: You recall parliament when there is an emergency. Parliamentarians won’t complain because that is additional allowance.

  2. We can borrow Magufuli or Kagame for 1 year . . . . . We need a good dictator to put MPOs and Ministers on the right path! Too many Bakabolala

  3. Bank of Zambia thank you, I am shocked that Margaret should even contemplate asking such a silly question. Please lets debate constructive, freely and consult technocrats where necessary.


  5. Removing the clause would be a loophole for stealing! At least the people through their MPs would know when debt is coming. Lol
    Thank You

  6. Correct submission. However, it’s very clear now that Dany Kalyalya is on the Poliyicsl platform. Its painful reporting to a former subordinate anyway.

  7. “The Bank of Zambia has opposed the proposed constitutional amendment to remove the National Assembly’s oversight role on the contraction of public debt.”

    The bank of Zambia and its entire hierarchy, well done for standing up for Zambia. This is as it should be always.

  8. “And in response to Lusaka Central Member of Parliament Margaret Mwanakatwe who wanted to find out what would happen if there is an emergency to borrow and parliament was not in session, Dr. Kalyalya said parliamentarians can still be recalled when there is an emergency.”

    That was a question from the former Finance minister! She was ministers only three months ago. . My heart just felt pain that she was in charge of such an important ministry. Never again should Zambians allow lousy and sketchy people in that ministry.

  9. This is the type of courage that is lacking in Zambia. How I wish we had more such noble characters. The LORD bless Dr Kalyalya.

  10. I think both in contributing to the need for parliamentary oversight on debt amazement are Current DU is addressing the issue of GOV SHUT down whereas DR and Band Of Zambia Governor responds by calling parliament or a select committee to approve or disapprove those procurements or cuts

    In as much as the need for parliamentary oversight is welcome ther is much to be done to address operation and administrative challenges to allow Government to run smoothly at the same time set prudential debt ceilings or cut backs to retrace Gov balances to acceptable sustainable limits

    What should be done? Should you have a similar Budget Control Act ?Debt ? Should the limits assessed be set annually or be…

  11. Just listen to how dependant they are on borrowing…”what if there is an emergency to borrow? ” instead of thinking of ways to build capacity…typical banker who should never have been finance minister.

  12. How can any one even contemplate going to borrow and sign treaties without parley approval?? Really… Do these people understand what they are proposing or they are too drunk with power such that they think PF will rule for a life time?!
    Signing treaties without having to justify to anyone? A loophole to even put the whole Zambia as collateral in exchange for whatever…
    Its really difficult to see the point of view of whoever was proposing this…

  13. Well done Dr Kalyalya.You have correctly pointed out the wrongs and the rights in the bill.Now if BOZ governor can have the courage to point out lacunas in the bill despite his sensitive position,how about civil society leaders and lawyers like Sangwa?This would have been an excellent opportunity for them to make known all the defective amendments to the general public for they have nothing to lose i.e do not hold sensitive positions or are civil servants.Alas the chose to rush to Concourt to stop a process they refused to be part of.

  14. Well done Bank Governor speaking without fear or favour. Thats the calibre of people we need in this country to progress. Dont say things to please someone

  15. Hats off! to BoZ. The committee is consulting all relevant stakeholders that may be affected by the amendments and so the said clause had direct implications to BoZ. Yes, the submission was done. You can inquire from Parliament’s committee clerk in charge if in doubt. Let’s now wait and see how such recommendations are taken into account when the bill comes up for first reading.

  16. Let me add my congratulations to the objectivity of the team at BOZ led by Kalyalya. It is a very rare feet in African countries for the appointee to speak their mind contrary to the appointing authority. I admire your courage and patriotism. It is such a breath of fresh air to know that there are still other compatriots who can stand for the interests of mother Zambia. God bless and protect all the BOZ team.

  17. Normally when it gets to that the issues of Fiscal Panning ,budgetary control and Parliament control (bipartisan act) must be clearly defined to ensure continuity But ten it does-not take away the primary responsibility of debt management and planning from officers tasked who should continue with prudent debt management sustainability analysis and the like etc it like that civic topic on separation of powers.Much more needs to be done to ensure effectiveness and CAPPING to manage various national expenditures within those FISCAL PLANS GIVEN THE OUTLOOKS short-term and long-term taking markets to Invest and make a fair return

    There is room to make sense of the act for long-term performance and…

  18. ensure effectiveness balancing the ACTS of Authorizations and Oversight to avoid stiffing Gov Operations especially those approved from the rigorous Budget process that went through planning and fiscal designs for which the minister sought parliamentary approval and where laid before parliament Te minister will normally procure and spend within those and increase or reduce (floor or Cap) the budgets and this is where parliamentary oversight (debt approval) will normally come into picture

    So there is room to discuss further and balance the ACTS and see

  19. Infact more power should be given to the bank of Zambia to manage debt contractions rather than government. Because then will we borrow for the right reasons, not borrowing more to have a pool of money to help politicians steal.

  20. Correct that is the point but remember the simple separation of Fiscal and Monetary functions of Gov and its Institutions and Acts should be flexibly be crafted to mirror than Such is proper like it is in the MOF resourced and capacitated department Remember also that the Zambian Budgets are ZERO based as opposed to Incremental and Its assumed that all fiscal plans and others impacting outlooks could have be anticipated by the time the minister is bringing the budget to parliament and cost overruns could not be 50% or 30% variations in approved quality budget
    So in short Planning and implementation must be a reserve of agencies and ” AUTHORIZATION ACT “in parliament by parliament…

  21. and the “Debt ACT” requesting that authorization or variations to CAP Yearly or Bi-annual those procurement and sell

    For eventualities outside the normal economic outlook or crisis the acts can define the process and avoid shut down or fiscal brinkmanship //

  22. Just look at how frivolous and stupid Mwanakatwe’s question sounds and imagine she was the Treasury minister! The damage is done. One is just given to wonder who she gave an adulterous blow job this time to puke out such vile verbature.

  23. Mwanakatwe’s question of what to do if parly is in recess is very stupid, just how did this woman rise in the corporate world. Surely it wasn’t her brains she used because she clearly has none. It’s like American astronauts wondering what instrument Russians use to write in zero gravity when pencil is the obvious answer. She can clearly see ati galu ni imuna but ndiyo pofunsa!

  24. Ba Mwanakatwe is very dull,how can she honestly ask that question as a former finance minister who has served in the position for a long time? If this is the caliber of leaders we have,the country is in big problems.Dr Kalyalya and the BOZ management,congrats and big up to you guys on those patriotic and selfless contributions to important national issues.

Comments are closed.

- Advertisement -

Latest News

President Edgar Lungu’s announcement that Government will soon start constructing houses for teachers welcomed

The National Action for Quality Education (NAQEZ) has welcomed the announcement by President Edgar Lungu, that Government will soon...

Kamanga Speaks on Looming FIFA Ban

FAZ president Andrew Kamanga says the onus is on those that took Football House to the courts of law for the looming FIFA ban...

National Indaba on street kids inevitable

Part 1 This country started experiencing a surge in the influx of street kids early 1990s just after the Movement for Multiparty Democracy (MMD) dislodged...

China will consider cancelling interests on Zambia’s debt, says Chinese Ambassador

Chinese Ambassador to Zambia Li Jie says China will consider cancelling interests on Zambia’s debt to that country that was supposed to mature by...

Venture into business in order to secure a bright future, Former Finance Minister Tells Youths

Lusaka Central Member of Parliament Hon Margaret Mwanakatwe has encouraged youths in her constituency to venture into business in order to secure a bright...

More Articles In This Category

- Advertisement -
[Read 25 times, 1 reads today]