Public Debt Management Bill criticized

...NDI legal consultant advice president Hichilema to send back the bill to the minister of justice to address the concerns identified which are inimical to the interest of the people that feel debt accumulation by the government is unsustainable. 

By Francis Maingaila 

Lusaka (11-08-22-Zambia24) - The National Democratic Institute (NDI) legal consultant Chisenga Phiri has unreservedly criticized the proposed public management Bill for lacking clauses that provide for transparency and accountability.

Phiri told a public discussion at the National Stakeholders Indaba on Zambia's Public Debt organized by the CSO Debt Alliance and partners at Mulungushi  International Conference Centre that president Hichilema should send back the bill to the minister of justice to address the concerns identified which are inimical to the interest of the country that feel debt accumulation by the government is unsustainable.

Chisenga proposed that President Hakainde Hichilema should consider advising his government to consider addressing the concerns raised especially  those that allow the minister borrow without to consulting the parliament 

Phiri said allowing the bill to be signed in its current form will not only give power to the minister of finance to exclusively borrow without consulting parliament but also give cabinet power to initiate the borrowing without consultations.

He said the power given to the minister of finance to borrow the money without the approval of parliament is extremely unreasonable and can easily land the country in unsustainable debt the country is trying to resolve at the moment.

He also regretted that the power given to the president to borrow when parliament is dissolved is equally not appropriate because there is a law in force that permits the president to recall parliament to address the concern which might necessitate borrowing.

He said also observed that reporting structure and disclosure to the public before contracting public debt are not properly stipulated in the public debt management bill scheduled to be enacted any time soon.

The act does not provide for the equal treatment of the creditor and this does not confidence the creditor that they will be treated equally.

And commenting on the issue of debt contracting NGOCC executive Annie Mbewe Anamela said abrogating the constitution to contracting public debts.

Anamela urged the government to hide to call by the CSO debt alliance to address the concerns raised over public debt management.

She said having the law in place to protect debt contracting is not an option but a necessity that must be done without any compromise.

And speaking on the same occasion Prof. Manenga Ndulo from the University of Zambia Schools of economics wants the issue of debt resolved because it takes away the fiscal space for the government to operate. 

In its current form, Ndulo said there is no other option but to go the IMF route to help Zambia resolve the debt problems and its members.

He advised the government to come up with fiscal rules on debt which should be legislated with penalties enshrined to punish those that violate the rules.

Ndulo who is the young brother of prof. Muna Ndulo also proposed the establishment of the stabilization fund which can be used in the future when the country is faced with debt issues.

He observed that Zambia has the highest mineral loyalties in the world from which the stabilization fund will come from.

He said the current public debt management bill should throughout because it does not serve the intended purpose.