PF DEBT SWAP IS FOR POLITICAL EXPEDIENCY

…don’t trust popcorn policies because will never develop Zambia, urges CLRI.

By Staff reporter
Continental Leadership Research Institute (CLRI) executive director Mundia Paul Hakoola says civil service Debt Swap instigated by the Patriotic Front (PF) government is a politically inspired expediency.
Hakoola said any policies introduced days before the country goes for general elections will always raise suspicion and cannot be trusted.
On Friday, government announced commencement of debt swap for all civil servants, with no deductions to be made on their loans in the next three months.
Information and Broadcasting Services permanent secretary, Amos Malupenga said no deductions will be made from salaries of all civil servants for the months of July, August and September.
But Hakoola questioned the timing as debt swap comes at the peak of elections.
He charged that debt swap was a political gimmick by the PF government to manipulate civil servants into voting for President Edgar Lungu and his candidates.
“The Continental Leadership Research Institute has noted (with concern) the move by (PF) government to do a debt swap for all civil servants. To us as an institute, we believe that it is a move of political expediency at a time when we are having elections. For us, as CLRI, it is very important to have policy consistency in the way we run the affairs of the State,” he said.
Hakoola advised the government to desist from using public resources for political expediency.
He argued that debt swap is not sustainable since currently 90 percent of government revenue is spent on serving external debt and emoluments, with only a meagre 10 percent for discretionary spending.
The CLRI executive director said it is not prudent to add debt swap burden on a public income that is already squeezed by external and domestic debt servicing obligations.
“We believe that there has to be policy coherency in the way one (does) things. We are not supposed to use state resources for intra-party-political expediency. What we need to see is policy consistency. There is need to ensure that civil servants have good conditions of service. Even if you are going take care of this debt, if someone has no capability to ensure that a salary sustains them, they will still go back in debt, (and so the PF) are not curing the problem. What (they) are doing is making a political move at the expense of policy consistency,” Hakoola explained.
“Policy consistency is one of the foremost indicators of development, but if we are going to have people wake up today and decide to do or implement a policy that pops up like popcorns, then you cannot develop as a nation. We need to ensure that we engage all stakeholders before we come up with these political announcements. We insist on doing a correct thing as debt swap is a political announcement.”
Hakoola noted that Zambia was already burdened by a ‘Siamese’ debt and stress.
“Zambia is having two serious burdens of debt stress and already the treasury is equally under serious debt stress. We believe debt swap is a popcorn policy and (there is) need to ensure that we have the correct policies that are going to develop this country (going) forward. So, as CLRI, we can only say that this move has been taken at a politically wrong time and not sustainable. We need to come up with policies that are very sustainable and ensure that we use state resources in the right way,” said Hakoola.

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