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Zambia is not in a debt crisis-World Bank
The World Banks says Zambia is not in a debt crisis as purported in some sections of the media.
World Bank Country Economist Ziv Chinzara says negative sentiments circulating in the media suggesting that Zambia is in a debt crisis are unhealthy.
Dr. Chinzara says accurate reporting on Zambia’s debt issues is key in mitigating sentiments that have potential to increase the cost of debt servicing.
He says currently there are only ten African countries that are in debt distress which have arisen mainly by external shocks.
Dr. Chinzara says the media must ensure reports on debt in Zambia are based on solid foundation unlike where some reports are based on misinformation to the public and investors thereby creating uncertainty on the market.
He says accurate reports on any country’s debt standing are important as they enable investors make informed decisions.
Dr. Chinzara was speaking in an interview with ZNBC in Lusaka shortly after launching the World Bank’s eleventh Zambia Economic Brief dubbed Agro-Led Structural Transformation.
He has since praised government for implementing measures aimed at reducing its debt stock and further advised government to be releasing regular reports and information on debt to avoid distortion by the media.
And World Bank Country Manager Ina Ruthenburg praised government for announcing bold fiscal consolidation measures aimed at moving debt to sustainable levels.
Ms Ruthernburg said promoting debt sustainability will enable the country save resources to support the poor and unlock private sector growth.
World Bank cuts Zambia’s expected GDP growth projection for 2018 to below 4 %
“Economic growth in 2018 is projected to be below 4 percent reflecting the poor agricultural harvest, lower copper prices and fiscal debt challenges that are crowding out private sector growth,” the World Bank said in a report.
The World Bank said in April that Zambia’s economy is forecast to grow 4.1 percent in 2018 and 4.5 percent next year, lower than previous projections by the lender, because of the expected impact of poor rains.
Meanwhile, the World Bank has said that Zambia’s economic growth numbers “are not exciting”. Speaking during the launch of the 11th Zambia economic brief at Hotel InterContinental in Lusaka yesterday afternoon, Ruthenberg explained that “on the broader macro-economic front”, Zambia’s economy was still expected to grow this year.
“But frankly, the growth numbers are not exciting. Zambia needs to grow by seven per cent per year to reduce poverty and that’s what we all want for Zambia. In the present, you are hovering around half of that. So, that’s not really where we want to be as Zambia. We all know that most of the challenges are related to the fiscal and debt situation – it impacts so many things and above all, it impacts job creation,” Ruthenberg observed.
“So, the challenges…Zambia is not only facing them alone. There are a number of countries who face very similar challenges. But what we would like to point out is to recognise the challenges and to really take them head-on, to be bold about them. The government has announced some bold measures for fiscal consolidation and we felt that was a very important step – we very much welcome that announcement. So, what are we waiting for now? Well, the obvious – the implementation.”
Brighton Ngoma is new Postmaster General

The Board of Directors of the Zambia Postal Services Corporation met on Thursday at a special board meeting to discuss the administration of the Social Cash Transfer funds.
Board Chairman Andrew Musukwa said in order to pave way for investigation relating to the matter, the Board resolved to suspend with immediate effect the following officers in management for a period not exceeding six months, from execution of official duties.
Those suspended include Post Master General McPherson M Chanda, Best Mwaichi – Director Finance, Mr Isaac Kamwimba – Director Operations and Mr. Moses K Musonda – Assistant Director Operations
The Board further resolved to appoint an interim management team to be led Mr. Brighton Ngoma as the new Postmaster General.
Mr. Stanley Phiri is the new Director Operations while Ms. Dorothy M Mulenga is the new Finance Director.
Zampost is at the centre of a massive graft scandal after it was engaged by the Minister of Communiy Development and Social Welfare to manage a multimillion dollar Social Cash Transfer Scheme.
An audit of the scheme by the Auditor General’s Office showed that Zampost diverted some of the money meant for poor beneficiaries of the scheme to buying expensive utility vehicles.
The audit also shows that Zampost was paid 10 percent of the entire budget fund as management fees, which was against donor guidelines.
Head of Transparency International welcomes aid cuts

Transparency International Executive Director Robert Barrington has welcomed the suspension of aid to Zambia by some western donors after audit reports showed massive theft of donor funds.
Mr. Barrington has since demanded that all those that were involved in the theft are held accountable.
Mr. Barrington said: “Where suspected corruption is involved, it clearly cannot simply mean business as usual. Cutting off aid altogether is one of the options, but it is at one end of the scale, and the UK must be very confident that it has sufficient evidence to take such action.”
He added, “The next steps are to make sure those who have stolen the money are held to account, and to find a way to start the aid flows again in a way that minimises the risks of corruption.”
Mr. Barrington also called on the UK and its overseas territories not to allow individuals who have stolen from the poor to launder their money in those places.
“The danger is that this can punish the poor twice over: ordinary people should not be made to pay for the crimes of their rulers. The one thing we don’t want to see is that the stolen funds end up being laundered through London or the UK’s overseas territories – the UK should also be taking action to get its own house in order.”
And Transparency International Zambia Chairman Reuben Lifuka told the Guardian: “Unfortunately, this is not the first time that this has happened. The government of Zambia put in place mechanisms to prevent this type of crime but when it failed they were not honest enough to bring it to public attention. I call on the government and anti-corruption commission to urgently investigate the allegations as … [this] has widespread implications for those who need assistance.”
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President Lungu to blame for grand theft

By Laura Miti
When President Lungu addressed Parliament less than a week ago, he had known for months about the millions of dollars that have been stolen from the Social Cash Transfer programme and, as we are now hearing, from the Ministry of Education.
He also knew that donors had withheld critical funding because of the theft. Knowing all that, he still, in his speech, suggested that those speaking against corruption were engaging in baseless name calling. That they were generally driven by “narrow and selfish interests calculated to malign others simply because one has the platform to do so.”
He added that “the screaming headlines of corruption propaganda may succeed to malign someone, but they achieve nothing in terms of uplifting the lives of the poor and indigent of our society”. (Yes, the president termed citizen and media protests against corruption, propaganda!)
It is my view that the reason we are, today, sitting with millions of dollars having disappeared from multiple spending agencies is because of the kind of the defensive stance the President displayed in Parliament as regards corruption.
The President has found himself, panicky, firing a Minister who he had assigned a critical duty to pacify donors only hours before, because he has routinely taken the side of those accused of shocking mismanagement of resources and outright theft.
He has vilified those who have asked questions, arrogantly asking them to provide him with evidence of corruption, which evidence has been set out in black and white in government documents like the Auditor General’s and FIC Reports.
Well, as with an undisciplined child who hearing his parents constantly defend his errant ways learns that there will never be consequences for his bad behaviour, the thieves in government read the memo from their President. It said, I have your back.
It became open season for those who wanted build blocks of flats and mansions, send children to schools they could not afford, live lifestyles way, way beyond what could be afforded by the amount they legally earned.
With the big boss fighting for them, a whosoever-will-may-come attitude toward national resources was institutionalised among the connected.
Simply, I am saying, President Lungu is responsible for this grand theft of public money that is being reported. He not only refused to address scandal after scandal, he just about encouraged the thieves.
The writer is Executive Director at Alliance for Community Action, a civil society organization that advocacy go greater transparency and accountability in public finance management.
PF has been winning By-Elections using Social Cash Transfer funds-PAC

The opposition People’s Alliance for Change has charged that the ruling PF has been using funds from the Social Cash Transfer to win by elections.
PAC President Andyford Banda said the PF’s perceived popularity has been fueled by the use of cash from the Social Cash Transfer scheme.
“PF has been winning by elections just as much as the government has expanded SCT to all the districts which actually doesn’t exist. Sooner or later, our dear humble leader will find out how induced these election wins have been just as he discovered on SCT,” Mr Banda warned.
Mr. Banda stated that the news of the theft of Social Cash Transfers is an embarrassment to all Zambians.
“The only bad thing about these headlines is that they make us look like beggars and that since aid has been cut we will suffer. Unfortunately, our people got us here.”
He said Zambia should have started working swiftly towards self sustainability.
“If we want to be self sustained we have to work towards self sustainability. We can’t just be doing nothing about it expect to achieve self sustainability. By the way it won’t happen overnight it’s a process. Yes it’s frustrating that we have to find ourselves in such a mess.”
Freedom Fighters body encourages Zambia to maintain relationship with China
The Zambia United National Freedom Fighters Association (ZUNFFA) has implored government to maintain its long standing relationship with China, and not get destructed by the negative talks from some sections of society.
Association Co-Patron Sikota Wina says China supported Zambia in its liberation struggle, adding that freedom fighters made several trips to China for consultations before attaining independence, hence creating good relations which should be cherished.
Mr. Wina explained that there are no indications suggesting that that China wants to colonise Africa.
He said those making allegations are just ignorant and lack knowledge on what China did for Zambia in the post independent era.
Speaking at a press briefing in Lusaka today, Mr. Wina said Zambia has seen a lot of infrastructure development through the involvement of the Chinese government which should be appreciated by all well-meaning Zambians.
He also appreciated President Edgar Lungu’s stance on infrastructure development, noting that it has changed the face of the country.
And Mr. Wina has called on government to continue improving the welfare of freedom fighters in the country.
He explained that most freedom fighters live in abject poverty as they have no source of income to sustain their lives.
He noted that this is why there is need for government to consider including a social fund for freedom fighters in the 2019 national budget.
He also commended government for being the first government to recognise the freedom fighters association and further pledging to work with them.
Mr Wina however, disclosed that the research and validation process to take stock of freedom fighters in the country, as directed by President Edgar Lungu has not been concluded due to lack of funds.
He noted that the association resolved to approach government through cabinet office to provide funds for the process which has not been done.
He stated that to this effect the process has only be done on the Copperbelt Province hence the need for the President to intervene in the matter for the betterment of freedom fighters.
Teaching Council verifies over 700 teacher qualifications

The Teaching Council of Zambia (TCZ) working with investigative wings has embarked on a verifying academic qualifications for over 700 teachers countrywide, who are believed to be in possession of forged documents.
Minister of General Education David Mabumba has assured that the clean-up exercise for teachers including civil servants country-wide is on-going, and that all those found wanting will be punished accordingly.
Mr. Mabumba added that his ministry working with the Zambia Qualifications Authority is further planning on introducing a method of verifying academic qualifications online for all concerned parties in order to save on time and resources.
Meanwhile the Minister has disclosed that over 258 teachers had fraudulent academic and professional certificates in 2016.
The Minister added that the Examinations Council of Zambia detected fraudulent teachers with fake Grade 12 academic qualifications who were dismissed from the teaching service.
The Minister was responding to a question raised by Chimwemwe Member of Parliament Mwila Mutale who wanted to find out how many fraudulent academic and professional certificates were detected by the Examinations Council of Zambia in 2016, what plans the government has to deal with civil servants with fraudulent qualifications.
Church urged to quicken dialogue process between PF and UPND
President Edgar Lungu has asked the church to quicken the process of dialogue between the Patriotic Front (PF) party and the United Party for National Development (UPND).
President Lungu said that he is committed to an open discussion with the opposition political party regarding issues that are affecting the two political players.
The President was speaking when he held talks with the European Union at State House today.
The Head of State said that both political parties should talk to their sympathizers and denounce violence in the country.
The Head of State noted that he will take it upon himself in denouncing violence during and after the elections in the country.
Mr. Lungu noted that it is the duty of political party leaders to talk to their sympathizers and denounce violence at all costs.
Meanwhile President Lungu has described the non-implementation of a SADC parliamentary forum as mind boggling.
The Head of State said he need to consult the Head of States to find out why the forum has not been set up despite pushing for it for over 20 years
President Lungu added that the idea is noble and it is working everywhere in Africa and wondered why it has not been effected in the SADC region.
Meanwhile the European Mission Heads of mission has described the meeting with the Head of State as fruitful.
The EU head of delegation Alessandro Mariani said the two political parties should emphasis on denouncing the political violence that has characterized the campaigns across the country.
He noted that there is need to revisit the reforms of the Public Order Act and the good policies that would govern the country.
Mr. Mariani noted that the EU is also committed to constituting a good team that will foster peace and security across the globe.
Meanwhile President of the SADC parliamentary forum Fernando Dos Santos said the SADC region is the only religion in Africa that has no parliamentary forum of its own.
He said the visit to President Lungu was aimed at lobbying for the forum after so many failed attempts to set it up.
He said the creation of the forum will enable the SADC region to share ideas and have modern laws that will improve the region.
Mr. Dos Santos revealed that the region has been advocating for a parliamentary forum for over 20 years and the process has not been sustainable.
He added that the setup of the parliamentary forum will help to accelerate economic integration in a quicker way.
Mr. Dos Santos noted that the parliamentary forum will not be a full legislative powers but will aim at setting up a parliament that will establish and improve laws.
President Lungu wants all the embezzled funds to reach the poor-Amos Chanda

STATE House Press Aide Amos Chanda says the reason why president Edgar Lungu took a drastic step to fire Minister Emerine Kabanshi is because he wants all the funds that were embezzled to reach the poor.
Speaking when he called in during a Hot fm breakfast show this morning, Chanda said governent will evakuate the matter and quickly return to the financing of the social cash transfer programme for the poor.
And Chanda said is not true that newspapers and radio stations have caused the firing of Kabanshi but because publicizing the issue has disrupted certain pieces of evidence.
“The president regretted that this matter has taken too long since he ordered an inquiry. It is a regrettable situation which is why we don’t want to believe that there is any malicious intent in those generous donors who have been doing. It is a requirement that we look at the matter objectively,” Chanda said.
He said admitted that government at the moment does not have sufficient resources to finance certain projects.
“Government does not have sufficient resources to run this programme which is why it is working to take corrective measures to clean up the problems so that all these discussions are fore stored,” Chanda said.
“The government does not have sufficient money. Regrettably the poor who are the focus, primary goal for the President, yes there has been inconveniences regrettably which is why decisively and more quicker action was required.”
He also explained why President Lungu had to fire his Minister.
“The goal of taking that drastic action is to make sure that this theft does reach the poor. It is expected that we will quickly evaluate their position and quickly return to the financing of this programme for the poor,” Chanda explained.
And Chanda said it is not true that the media has caused President Lungu’s action.
“It is not true that the newspapers and the radio stations have caused the action but of course they have disrupted certain things. Government will not tell you what those premature announcements you have disrupted but from that point when it was now clear that certain pieces of evidence being protects an no longer be protected because the matter is in the public domain, the President would have to act swiftly as he did,” said Chanda.
UK has ONLY withheld funds to the Social Cash Transfer and Education Sector Budget Support Programme

Minister of Finance Margaret Mwanakatwe has strongly expressed the Government’s concern about the reported financial irregularities surrounding the Social Cash Transfer Programme and the Education Sector Budget Support Programme. Speaking this afternoon in parliament when she responded to questions by Choma Central Member of Parliament Cornelius Mweetwa, Mrs. Mwanakatwe was said that
Mr. Mweetwa asked the Minister the following questions:
1) Whether the United Kingdom has frozen all bilateral funding to Zambia; if so why;
2) Which other countries have frozen their aid to Zambia;
3) What the impact of the frozen aid on the 2018 Budget is; and,
4) What immediate measures the Government is taking to mitigate the impact of the frozen aid.
In giving a background to the questions, the Minister stated that the United Kingdom (UK), through the Department for International Development (DFID) has been supporting Zambia in many areas. She outlined the major areas of cooperation as:
1) Zambia Social Protection and Expansion Programme (Social Cash Transfer) which provides small grants to vulnerable households to assist them with regular monthly incomes to meet their basic needs;
2) Education sector budget support;
3) Governance;
4) Conservation agriculture aimed at raising the productivity of small scale farmers;
5) Sanitation and hygiene;
6) Financial sector deepening;
7) Public financial management and anti-corruption initiatives aimed at improving financial management and revenue generation by reforming and modernizing core financial and management tax systems; and,
8) Technical support in the area of tax policy.
The Minister clarified to the House that the UK has withheld its financial assistance ONLY to the Social Cash Transfer Programme and the Education Sector Budget Support Programme. “SUPPORT TO OTHER AREAS HAS NOT BEEN AFFECTED,” she clarified.
Mrs. Mwanakatwe further said the donor’s action of withholding support was necessitated by reported concerns of financial mismanagement under the two programmes. Under the social cash transfer programme, the issues include possible cases of misapplication of funds; underpayment of beneficiaries; irregular payment of gratuities; non-adherence by Zampost to the signed Memorandum of Understanding [MOU]; and, insufficient capacity by Zampost to facilitate payments to beneficiaries.
In the education sector, the suspension of support is on account of cases of mismanagement of funds.
The Minister listed the Cooperating Partners rendering financial support to the Social Cash Transfer Programme as UK, Finland, Ireland and Sweden. She added that these are, therefore, the ones which from June 2018, have put their support on hold. Under education, The UK is the only Cooperation Partner that has suspended support.
The impact of withholding support to the 2018 budget is to the extent of the COMMITTED FUNDS FOR 2018 WHICH AMOUNT TO US$20 MILLION FOR SOCIAL CASH TRANSFER AND US$13.9 MILLION FOR THE EDUCATION SECTOR. No more.
The Minister strongly expressed the Government’s concern about the reported financial irregularities concerning the Social Cash Transfer Programme and the Education Sector Budget Support.
“We are confident that these matters will be addressed in a manner that is satisfactory to both the Cooperating Partners and the Government of Zambia,” Mrs. Mwanakatwe said, adding that once satisfactory corrective measures have been undertaken, “it is expected that funding will resume.”
She stated that the Social Cash Transfer Programme supports the most vulnerable households in the country. As a follow-up to the reports, the Government, through the Controller of Internal Audit, conducted a Risk-Based and Compliance Audit in Sixty (60) districts of the Ten (10) Provinces of Zambia where the programme is being implemented.
Arising from the Audit, Government will undertake to do the following:
1) Re-evaluate the payment and identification systems to ensure that the rightful beneficiaries are paid. We will consider benchmarking the payment system to the E-Voucher under the Farmer Input Support Programme;
2) All unpaid beneficiaries will be paid by end of 2018;
3) The government will review the agency agreement with Zampost and strengthen oversight over the whole programme through quarterly meetings at which the programme will be reviewed under a multi-institutional and donor represented committee; and,
4) Conduct a comprehensive forensic audit of the programme.
With regard to putting on hold of support to the Education Sector Budget Support, the Minister reported that the Government has instituted a Forensic Audit. Once the Audit has been concluded, appropriate corrective action will be undertaken. The report will also be shared with our Cooperating Partners.
Shepolopolo battle for COSAFA Bronze
Shepolopolo will have to settle for Bronze yet again after losing in the 2018 COSAFA Women’s Cup semifinals on Thursday at Wolfson Stadium in Port Elizabeth.
The 2017 third place finishers lost 1-0 to Cameroon in their semifinal clash at the tournament South Africa is hosting from September 12-22 in Port Elizabeth.
Genevieve Mbeleck scored the all-important goal in this tight encounter on Thursday to see Cameron avenge their Group B loss to Shepolopolo who beat them by the same margin on September 15.
Shepolopolo will face Uganda in the third-and-fourth place playoff on Friday at 15h00 after the latter lost 2-0 to the hosts and defending champions Banyana Banyana in the late kickoff at the same venue on Thursday.
Cameroon and Banyana will battle for Gold on Saturday.
Banyana, Cameroon and Shepolopolo are also using the COSAFA tournament to prepare for their 2018 Women’s AFCON outing in Ghana this November.
Government puts $2m in Fish Genetic Improvement

Government through the Zambia Aquaculture Enterprise Development Project (ZAEDP) has pumped in two million dollars, equivalent to 22 million Kwacha for the genetic improvement of fish in Zambia.
This is at the National Aquaculture Research Development Centre (NARDC).
Fisheries and Livestock Permanent Secretary David Shamulenge says research in genetic improvement of fish will enhance the quality and quantity of fish and increase fish production and productivity.
Dr. Shamulenge says the National Aquaculture Research Development Centre will be transformed into a regional research center of Excellency for the SADC community and Africa in aquaculture production.
He added that the National Aquaculture Research Development Centre will also introduce the certification of fingerlings and fish products for fish farmers to access quality fingerlings and curb curtails in the fisheries sector that are causing unnecessary shortages.
Dr. Shamulenge was speaking at the National Aquaculture Research Development Centre in Mwekera, Kitwe when the Zambia Aquaculture Enterprise Development Project National Steering committee visited the institution.
Donors asked to unfreeze aid

The Vision Ambassadors, a non-profit making organisation with focus on uplifting the lives of the vulnerable and poor people in society has appealed to cooperating partners to rescind their decision of freezing aid to Zambia.
Vision Ambassadors National Coordinator Misheck Kombe says freezing of funds will negatively affect the livelihood of the poor people in the country.
Mr. Kombe says donors should give Zambia a benefit of doubt especially that President Edgar Lungu and his government have already showed commitment to recover the money.
Speaking to ZNBC news in Lusaka , Mr. Kombe said he is confident the situation will be normalized hence his appeal to Zambia’s partners.
President Lungu on Wednesday relieved Emerine Kabanshi as Minister of Community Development.
This follows revelations of financial misapplications for the social cash transfer scheme in the ministry.
And President Lungu has called for immediate administrative changes in the ministry of community development and at ZAMPOST.
Meanwhile Kabwe Central Member of Parliament Tutwa Ngulube says the alleged abuse of resources meant for the social cash transfer is an assault on the fight against poverty.
Mr. Ngulube says those who will be found wanting should be taken to court and account for their actions.
He says it is wrong for government officers who are entrusted with money meant for the poor to abuse it.
Mr. Ngulube has told ZNBC news that the action taken by President Edgar Lungu over the matter should serve as a warning to those in public offices.
He said the investigative wings should do a good job so that both senior and junior officials that are involved can be brought to book.
Mr. Ngulube said government should not allow civil servants to frustrate well intended programs like the social cash transfer.