Friday, April 19, 2024

Government plans to take over Civil Servants Debt

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Public Service Commissions has bemoaned high debt levels among government workers and is proposing a debt swap mechanism where it wants to take over debts of civil servants it owes.

Public Service Management Division Permanent Secretary Boniface Chimbwali Monday told Provincial Heads of Government Departments, teachers and Labour leaders that recommendations are being made to come up with a mechanism that will provide some debt relief to civil servants.

Mr. Chimbwali noted that in instances where government was owing civil servants in settling allowances, leave days benefits and other emoluments, the backlog could be offset through the debt swap policy.

He said thorough consultations will be done before arriving at the actual implementation of the mechanism that will provide relief to thousands of civil servants.

The Permanent Secretary noted thay government was fully aware that staff debts and financial problems had been a source of frustration among workers in the civil service,hence the need for a lasting solution.

Meanwhile, Teaching Service Commission Chairperson Stanley Mhango who has bemoaned the high debt levels among government workers said the situation was affecting performance productivity.

Mr. Mhango however lamented that it was unfair for some civil servants to blame government for the debts they themselves had contracted.

He regretted government’s lapse on conducting vigorous financial literacy for civil servants when it effected unprecedented salary increases of up to 150 percent in 2014.

Mr. Mhango called on government workers to think seriously think about investing in projects that would financially sustain them.

And Local Government Permanent Secretary Bishop Ed Chomba called on local authority workers to be motivated with the good conditions of service that government has put in place.

Bishop Chomba cited the introduction of the funeral and health insurance policies as some of the conditions of service.

And Luapula Province Permanent Secretary Dr. Felix Phiri who thanked his counterparts for visiting the Province, took time to promote the economic potential of Luapula Province.

25 COMMENTS

  1. This initiative is very misguided .How can the heavily indebted GRZ take on the debt of civil servants?

  2. How about just pay people’s salaries, allowances, arrears and pensions so that people can just take care of themselves? How do you have np mpney to pay them but have the money to manage their debt? You do realise that you are not making sense, tefyo? Anyone seeing sense in this please kindly explain patiently.

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  3. “Sister of Mercy” I couldn’t agree with you more. What is recommended does not make any sense at all, unless the debt was owed to government but in this case civil servant owe third party financial institutions. Goverment compounds the debt situation by delaying remitances to the credit providers despite making deductions from the salaries of the civil servants.
    The suggestion/proposal that civil servant invest in projects that will help sustain them is equally misguided. They are civil servant who should be sustained by a decent salary and thereafter decent pension. Advising them to invest in ‘projects’ will lead to them being distracted from their core occupation and further compromise service delivery of the civil service. Just pay them decent salaries and all the arrears owed…

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  4. @Sisters of Mercy et Balala…Totally agree. How do teach accountability and responsibility to officers that hold public services in trust for the people of Zambia? How can we trust that they’ll conduct themselves above board? Objectively and impartially when put to test? Any leaders that suggests this has the narrow view of prosperity and the future of the country. Any leader suggesting this is driving this country in the direction of Zimbabwe that chokes the masses in order to keep the powerful elite. If anyone remembers that was the undoing of Kaunda. When scholarships were for the children of the leadership. Mediocracy instead of meritocracy. Where are those that were given the leg up in order that they may serve the nation? Aren’t we doing the same here when we allow those that…

  5. How can you swap third party debt….?
    You can swap from A to B in the end someone has to write a CHEQUE

  6. Logical, pragmatic and sensible solution. With the whole world going into covid recession, we need to br open to doing things in different ways to the normal

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  7. We have said it time without number, that where government officials make statements that are not only baffling but beats common sense, all comes from the incompetence of a government that has run out of means to govern, ability to sustain the civil service even paying them wages that is due to them is not only illegal but disgraceful. How does government take over debts of civil servants when you owe civil servants. What a bulification, yet some fool in the name of mad KZ thinks normal. Mad he is, not to see something wrong here.

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  8. This retrogressive thinking encouraging debtness and irresponsibility….I mean why not you yourselves offer debt advice or request for increase in wages.

  9. “He regretted government’s lapse on conducting vigorous financial literacy for civil servants when it effected unprecedented salary increases of up to 150 percent in 2014.”

    So GRZ should have held seminars across the country to teach civil servants how to use their increased salaries? God save this country!

  10. The main problem is clearly the govt facing to pay Civil Servant pay for months on ending forcing the civil servants to rely on borrowing….mirroring govt. The solution is to have more towards GDP. If the govt Nationalised just the most profitable Mines and ran them 100%, they would have all the GDP to balance up it’s expenditures like Civil Service costs, Hospitals, Schools and College/University Grants. Empower ZRA to collect Mines Taxes more effectively. We have all the national income on our resources which currently enrich other countries.

    The rumblings in this article are a little incoherent, sounds like must swirling intangible ideas about. Nonetheless, it is a topic the govt should mull over.

  11. How can you manage civil servants debts when you can not manage your own debt levels, currently you are busy stealing civil servants monthly loan repayments to various banks resulting into banks deducting from the remaining little salary, kwati fipuba, sometimes its better to shut up than open your mouth and removes all doubts in peoples minds. 2020 kuyaa bebele

  12. Who is this Government Fooling, they have Huge debt already, they cannot even pay retirement benefit and now taking over the debt? This is silly not strategy. PF should Go even such PS, should go together with their Lungu.

  13. The best solution is not a debt swap but rather Salary increase and or bonuses(some kind of covid relief fund). Otherwise, let the Government just pay outstanding arrears and incentives owed to its civil service pronto.

  14. The PF logic as stated here is as follows:
    1. Government, the employer of Civil Servants, fails or delays to pay its employee
    2. The employees looks for alternative source of money and ends up borrowing from elsewhere
    3. Instead of the Employer paying the employee, ati we will do “Debt Swap” for Civil Servants
    We are together so far, ka? Do not know the sense but these people seem to see some. Even using fancy terms ati “Debt Swap”, do they even know the meaning?
    just pay the Civil Servants and on time they will not be going to look for money elsewhere shaaaaaaa!!!

  15. This country is becoming boring as days go by especially with people like Boniface Chimbwali (kandolo)! How could you have such a person for PS! Your workers are just plain irresponsible…nkongole all over! How does one end up with five obligations on his payslip? You do a debt swap they go back to their puke and borrow heavily and you do another debt swap? You guys should be shown the door in 2021…mwatitinka with your shallowness!

  16. #Nineo. You were coming on well but mwaitaya ku last. Civil servants owes several banks and microfinance institutions. which are salary based and deducted directly by government. who in turn should have being remitting the said monies to these financial institutions. but because of various micro and macro financial challenges. Government has delayed in remitting such funds to the said institutions making Civil servants owing. at the same time Govt owes Civil servants in enumerations. so instead of Govt paying CS their accrued dues, allowances, leave pay, long-term bonus etc.. its proposing to settle the debt owed by civil servants to these financial institutions as a substitution for paying them their accrued monies. Hence, debt swap. coming in. Though, its a cumbersome exercise one which…

  17. This chi government has failed just about everyone. Through payroll government deducts on behalf of the lending institutions, but wont remit the same monies to the micro financing institutions. The lenders have now gone directly into the civil servants’ accounts via DDACC, hence making them suffer double deductions. So mufuna badye chani, mauzu? You PF thieves, just pay lending institutions the monies you have recovered from the civil servants and all the cr*p will end!

  18. Iyayi bane. Do not fall for this 80s nonsense namupapata ine. They are not taking over any debt. They have not been remitting your debts! Ushe kanshi wene Zed muzauka liti nanga? Muli ndwiii vi citeni vingomubelani a styopeti!

  19. The only problem is that if people hate a person, they even hate anything good about that person. Please never should you use feelings when coming up with a decision use brains. The idea is good

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