The lucrative Benefits the President and ministers enjoy
The challenge thrown to the opposition Members of Parliament regarding giving up the 10 % salary increment is a step in the right direction by the PF leadership in government. I also agree with the public’s concerns that at the time when:
- we cannot reasonably pay our civil servants
- we cannot fund our students in tertiary institutions at home and abroad
- we cannot provide adequate social and economic infrastructure and services
- we cannot create the necessary jobs for our citizens
we should consider leading by example through sacrifice.
While offering to give up the 10% salary increment, the PF should avoid being hypocritical by ignoring the bigger costs with which society sustains the 70 ministers. Lest we forget, the table below reminds us of the cost items that are far much bigger than the 10% salary increment and ideally, which the President and his ministers, must consider giving up rather than fooling people with the offer to give up the least of the costs to the public. We in the opposition are willing to continue not to benefit from cost items no. 1 to 9 in addition to giving up cost item no 10 which is the 10% salary increment:
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CATEGORY OF LEADERS AND COST TO THE PUBLIC |
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President |
Estimated Cost to the Public |
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Cabinet Minister |
Estimated Cost to the Public |
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Deputy Minister |
Estimated Cost to the Public |
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Member of Parliament |
Estimated Cost to the Public |
BENEFITS |
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Free House |
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YES |
Unknown |
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YES |
Unknown |
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YES |
Unknown |
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N/A |
0 |
Free furniture |
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YES |
Unknown |
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YES |
Unknown |
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YES |
Unknown |
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N/A |
0 |
Access to govt planes |
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YES |
Unknown |
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YES |
Unknown |
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YES |
0 |
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N/A |
0 |
Access to govt helicopters |
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YES |
Unknown |
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YES |
Unknown |
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YES |
Unknown |
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N/A |
0 |
No of Govt Vehicles |
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Several |
Unknown |
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2 Plus |
K2 million |
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2 Plus |
K2 million |
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0 |
0 |
Access to free fuel |
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Unknown |
Unknown |
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1400 Ltrs per month |
K12,880 |
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1400 Ltrs per month |
K12,880 |
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0 |
0 |
Air time |
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YES |
Unknown |
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YES |
Unknown |
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YES |
Unknown |
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0 |
0 |
Vehicle Mtce |
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YES |
Unknown |
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YES |
Unknown |
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YES |
Unknown |
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0 |
0 |
Vehicle Insurance |
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YES |
Unknown |
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YES |
Unknown |
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YES |
Unknown |
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0 |
0 |
% Increament |
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27% |
Unknown |
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10% |
Unknown |
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10% |
Unknown |
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10% |
K871 Net of Tax |
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We must also remind ourselves that the only reason the President and his ministers are playing politics that they can give up the increment is because they will easily replace it a million-fold through corruption which by their own admission is prevalent in their rank and file.
As for the President, whose increment is even higher than 10 percent, it is so easy for him to forgo everything including the existing salary before increment. I wonder whether the bank statements for the account into which his salary is paid shows any monthly withdrawals. Mine and those of Hon. Mushili Malama, Hon. Sydney Chisanga Hon. Howard Kunda and I suspect Hon. Stephen Katuka, and Hon. Elijah Muchima show immediate withdrawals on the day the salaries hit the accounts. A lot of ordinary people can relate to this type of life! History reminds us that the late Republican President, Fredrick Chiluba’s salary was looted over a period of two years without him noticing. This shows that a President can do without his salary thus making offers to reject an increment while keeping several benefits just mere poking fun at the opposition MPs and the public.
How the opposition Mps has tried and failed to curtail PF wastefulness of resources
For us opposition MPs, we have tried our best to assist the PF government maintain fiscal space by avoiding wastefulness. In particular, the following is what we have been doing:
a. Fighting the unnecessary creation of districts;
(Instead the President went on to create 28 politically motivated districts)
b. Fighting the unnecessary by elections;
(Instead the PF has so far created close to 20 unnecessary by elections at a cost of over K140 million and according to Mr Kabimba, more are yet to come until all the 150 seats are taken by the PF)
c. We fought hard in attempts to make the government reduce fuel costs by realizing potential within the eleven unnecessary elements in the comingled crude oil value chain from procurement to point of sale;
(Instead, the PF government suddenly and without warning, increased fuel prices by removing subsidies)
d. We spoke against unexplained and sometimes unnecessary trips abroad by the President and his Ministers;
(These trips have not stopped and Mr. Kabimba is amongst those making the most unproductive trips at great cost to the suffering masses)
e. We spoke against the recalling of all career diplomats only to be languishing home on full pay;
(The PF, instead, chose to replace career diplomats with PF cadres, relatives, and friends)
f. We spoke against the corruption in the link-8000 road project;
(Instead the PF illegally transferred RDA to State House and increased the cost of construction of a kilometer of bituminous road from the MMD and SADC regional standard of US $1 million to a higher rate)
g. We moved several private members’ motions on the floor of the House to urge the PF government to take certain measures to ensure a more resilient and sustainable economy and society;
(Instead the PF rejected most of these well meaning motions just for the sake of it. On those motions that went through, the PF arrogantly reminded us that we were pushing open doors and that in any case, the government was under no obligation to implement Parliament’s recommendations)
h. We advised the PF not to rush to the capital and financial markets without first identifying projects and ensuring that the debt instruments so accessed matched the projects in terms of:
1. Timing of availability of financing
2. Qualification to accessing borrowed funding
3. Bankability of the projects
4. Creativity in choice of funding instruments/strategies
5. Realisation of economic benefits from borrowings
6. Ability to repay the loans if possible from the project cash flows or benefits
7. Achievement of reproductive capacity and resilience of the economy
(Instead, the PF, chose to rush to the market, issued a US $750 million bond and proceeded to either attempt to loot the money or simply put it in the bank. Today about US $100 million and been spent on fees and interest payments)
i. We advised on the management of the agriculture sector;
(Desire to create opportunities for corruption and pure incompetency have reduced the sector to underperforming status thus threatening food security)
The PF government has failed to honour its promise to civil servants. It has failed to take care of students abroad especially in Russia. It has failed to maintain a reliable and regular supply of medicines in our health centres.
The implication of the PFs arrogance, lack of a defined developmental strategy, corruption, and lack of fiscal discipline is that the economy has suffered irreparable damage to its resilience and has massively lost opportunities to create reproductive capacity from the liabilities it is taking on.
Ideally, when you borrow, the borrowings must immediately create an asset to match the liability.
Further, the creation of that asset must achieve local wealth retention so that the money contributes to the creation of the reproductive capacity to assist the economy have capacity to repay the loan.
Currently, the assets we are creating do not match the liabilities and because the contractors are Chinese companies, the funds are growing the Chinese economy rather than our own. The end result will be that we will fail to repay these loans and we will need to refinance through further borrowings. The problem is that these borrowings will be more expensive because our credit rating will have dropped.
PF should not score cheap political points – the PF caused the challenges we are faced with and the PF leadership should give back the increment and offer to give back many more incentives – that will be in order. But the PF must do more – they must resign and disband. The sooner the PF goes the better for our nation!
By Lucky Mulusa, MP.
Solwezi Central.
28/10/2013.