Merlyn Mwanza
The PF undermined Zambia’s sovereignty and that is why we have gone back to the IMF, says Finance minister Dr Situmbeko Musokotwane.
Responding to the question by Matero member of parliament Miles Sampa that Dr Kenneth Kaunda evicted the IMF in 1988 for trying to take over the country’s sovereignty, and asked if the current government was going to surrender the independence back to the “blue eyed” boys whom he said he had information that they had put conditions, including dissolving public bodies like the Industrial Development Cooperation (IDC), Dr Musokotwane said the IMF was not here to take over the country’s sovereignty, but that it was important not to justify the mistakes made by running to sovereignty.
He said for instance people have talked about the inefficiency of Zesco, which was viable 10 years ago, but was now in trouble because of over employing and the management was top heavy, saying by maintaining subsidies the government would instead be subsidising the same inefficiency.
Kanchibiya member of parliament (PF) Sunday Chanda said the previous experience with IMF has been a bitter pill to swallow, and asked if the government would walk away if the Fund started pushing harsh conditions.
In responding, Dr Musokotwane said if it occurred that what was being proposed is not in the interest of Zambia, the government would of course not participate.
But he reminded that Zambia was coming from a background where 18 years ago the country was highly indebted, which debt the IMF assisted heavily to have written off, but that the same PF had now made it inevitable to go back to the Fund because of excessive borrowing, to seek another bailout.
He said when the PF started borrowing, the IMF and other stakeholders advised against over borrowing.
“The PF government brought us into this situation,” Dr Musokotwane said.
Asked by Mpika-Central member of parliament (PF) Francis Kapyanga whether the country could survive with or without an IMF bailout, Dr Musokotwane said the current talks were actually started by the PF.
“So if today you can say it’s bad, why did PF government approach the IMF for a bailout?” he asked.
Shiwang’andu member of parliament (PF) Stephen Kampyongo said demands to increase tariffs on energy, cost of fuel, excise duty and VAT were some of the things holding the talks with the previous government, asking further if programmes such as the FISP would be done away with.
But Dr Musokotwane said if the IMF questioned the price of fertilizer because its price was so high compared to what is available on the market, he saw no problem with that.
But Chilubi member of parliament (PF) Mulenga Fube said he hoped Dr Musokotwane was not preparing the nation for the worst to come, as the interest of the Bretton Wood institutions has not been for the country’s they deal with, but Dr Musokotwane insisted that if the IMF were asking why the price of fertilizer was going at between K800 and K1000 when it could be bought at half that price, that question was legitimate.
The minister further said that as opposed to government spending on infrastructure projects like roads, they will instead encourage the private sector to do that while focusing on other programmes like employing people in critical areas, teachers for instance.
He dismissed information circulating on social media that there would be no salary increments in next year’s budget.
Asked by Kantanshi member of parliament (PF) Anthony Mumba on what will be fulfilled or not fulfilled in the UPND manifesto, Dr Musokotwane said what may change is in the sequencing of policies.
He indicated moves towards providing free education for the most desperate, contrary to President Hakainde Hichilema’s campaign promises that free education was going to be provided to all from Grade 1 to university level.
“Of course it will be unrealistic to expect we will do everything in one goal because of mountains of debt,” said Dr Musokotwane.
