The International Monetary Fund has revealed that it shall not disclose details of the Staff Level Agreement it entered into with the Zambian government until it is tabled before the Executive Board.
IMF Mission Chief to Zambia Allison Holland who is based at the IMF Headquarters in Washington D.C said it is not the policy of the Fund to reveal details of the Agreement ahead of a Board discussion.
Ms. Holland stated that the IMF will however reveal details of the Staff Level Agreement once it is tabled and reviewed by the IMF Executive Board.
Ms. Holland said this in a letter dated February 23rd, 2022 addressed to Kabushi Member of Parliament Bowman Lusambo in response to a letter he wrote to the IMF Country Office demanding the full disclosure of the deal before it is signed by the Board.
On January 6th, 2022, Mr. Lusambo had written to IMF Country Representative Ms. Preya Sharma demanding that the Fund makes full disclosure of the contents of the Staff Level Agreement it entered into with the Zambian government.
“On December 6th, 2021, the Zambian government and the International Monetary Fund announced that they had reached a Staff Level Agreement on a new arrangement under the Extended Credit Facility (ECF) for 2022-2025 to help restore macroeconomic stability and provide the foundation for an inclusive economic recovery.
It is exactly a month since this agreement was reached and the people of Zambia do not know of its contents. On the other hand, the Zambian authorities who have refused to disclose the full contents of the agreement have gone ahead to institute wide-ranging sector reforms with constant reference to the agreement,” Mr. Lusambo wrote.
“We believe that it is only fair that you, the instigators of this agreement release the full contents of this agreement. Globally, there is a call for greater transparency in the manner in which multilateral and bilateral loans are contracted. Your Managing Director Ms. Kristalina Georgieva is on record demanding China to disclose the terms of the loans it has been disbursing to countries such as Zambia. It, therefore, follows that you should practice what you preach by causing to publish the Staff Level Agreement and stop the hypocrisy. We demand that this is done before the IMF Board convenes to approve the agreement.”
Mr. Lusambo added, “The Fund is reminded that Zambians have rejected any conditions to be imposed as part of an economic program. The memories of the 1990s Structural Adjustment Programme which crippled our economy are still fresh and Zambia does not have any grave spaces left,” he wrote.
And in a Facebook post accompanying the Letter, Mr. Lusambo said he decided to write to the IMF in his quest for increased transparency in public engagements.
“The specific demand is that the IMF Board should not proceed to approve the agreement until full disclosure is obtained,” he said.
“On December 6th 2021, the Zambian government and the International Monetary Fund announced that they had reached a staff-level agreement on a new arrangement under the Extended Credit Facility (ECF) for 2022-2025 to help restore macroeconomic stability and provide the foundation for an inclusive economic recovery. The Extended Credit Facility is in the amount of about $1.4 billion. The IMF says the economic program aims to restore macroeconomic stability and foster higher, more resilient, and inclusive growth,” he said.
“Away from all the flowery language and gobbledygook, it is a matter of concern that the Zambian government has not taken time to fully engage the Zambian people on the true contents of this Staff Level Agreement that it has entered into with the Fund. Unlike in past economic programs with the Fund, authorities through the Ministers of Finance were asked to submit a Letter of Intent to Washington D.C stating the country’s level of commitments. These Letters were published on the IMF website for all to see and scrutinize. Now the Fund in its own version of reforms does not demand any Letters of Intents anymore. The Fund through the Country Office and the Mission Teams merely prescribes a set of conditions for countries to sign in documents called Staff Level Agreements. Once they are signed, then the Management and the Board in Washington merely performs a formality by officially approving these Staff Level Agreements.”
“With everything that has been said and the supersonic speed at which the New Dawn administration is moving to restructure state institutions, it has become imperative that we call on the IMF to release the Staff Level Agreement it entered into with the Zambian government in December. Attempts to get the government to release the full contents of this agreement have failed. In Parliament, I queried Finance Minister Hon. Situmbeko Musokotwane to lay on the floor of Parliament the Staff Level Agreement and he failed,” he stated.
Mr. Lusambo’s added, “It now remains our solemn duty to push the IMF Country Office in Lusaka to immediately cause to publish the Staff Level Agreement entered into with the Zambian government. This should be done before the IMF Board convenes to approve the agreement. This demand is made in the interest of transparency and the need for full disclosure when engaging sovereign nations on matters that will impact directly on the lives of its people.”
“There is a global call for transparency around loan contraction and the Fund itself at the highest level has been calling on China to disclose the terms of its loan agreements with countries like Zambia as part of debt profiling. The hypocrisy with which the IMF approaches engagements with countries like Zambia should come to an end.”
“The IMF should be reminded that Zambians never voted for them in the August elections. They, therefore, do not carry any mandate to prescribe the economic future for Zambians over the next five years. The UPND Manifesto which was the basis of the social contract with the Zambian people did not promise harsh conditions for getting an IMF program and President Hichilema never said he will relinquish our economic sovereignty to the boys and girls from Washington. He told Zambians that he was a good economic manager who will fix the economy.”
He added, “President Hichilema told us he will use his economic management skills to engage all our creditors and secure debt restructuring in the first 30 days of his tenure. He never said he would run to Washington to help him talk to our creditors, moreover, we still have Lazard Freres, the Consultant he criticized when in opposition still offering debt advisory services.”
“In any case, Zambians have rejected any form of IMF conditions. The memories of the 90s Structural Adjustment Programmes are still fresh. We lost many of our people because Washington came and told us to sell off our companies indiscriminately without a fallback plan. It was during this period that Zambia’s entire industrial base which was built by President Kaunda was destroyed and has never recovered. We buried so many of our people and we are sorry this time around, our graves are full.”
He said, “Today, we are more enlightened and we will not sit and watch the UPND take us down privatization 2.0. The US$1.4 billion we are receiving from the Fund in exchange for our sovereignty is such a small amount that any pragmatic leadership can easily mop up from our domestic economy through a progressive tax regime for the mines and sealing off all channels for Illicit Financial Flows. Since the New Dawn government has decided to work with the IMF in darkness, we ask the Fund to practice what it preaches and what it demands from China; transparency, transparency, transparency.”
Thankfully the IMF doesn’t entertain the ridiculous comments from a convicted criminal Bowman Lusambo. Lusambo does not and will not belong to the government so he should just keep his lying thieving incompetent mouth SHUT. Nobody is interested in the opinion of a thief!
Ignorance is bliss
Ensure he gets a copy once he’s settled in his new residence at Mukobeko maximum.
Zambians should know the medicine they
Have been prescribed by IMF.They can know
The side effects of this meds.We can already
See the effects.
Zambians still have a right to know what the $1.4m loan from IMF is composed of: not just when, but how it is assumed to be repaid.
Between the two condemned thieves that were crucified with Jesus Christ, one of them spoke sense.
If loans from East were in secrets, the West must be extra transparent.
Zambians still have a right to know what the $1.4bn loan from IMF is composed of: not just when, but how it is assumed to be repaid.
Between the two condemned thieves that were crucified with Jesus Christ, one of them spoke sense.
If loans from East were in secrets, the West must be extra transparent.
Lusambo in his own right as a Zambian citizen can request for more information about the deal. In near future we don’t know what will happen to this money. it will be either pain or gain. I don’t trust this Man Called Mr Politician. whether from ruling Party or the Opposition Party.
Zambians should know what medicine has been prescribed by IMF.Nothing wrong in
Asking that as we can already see the side effects.
“…….We buried so many of our people and we are sorry this time around, our graves are full.”
Full of useless rhetoric………
With a belly grown big from stealing from the sweat of Zambians………..
No brains what so ever………….
Whenever I want to get a loan I inform my wife on what the loan is for and the conditions. If it’s not good she advises against it.
Didn’t the upnd campaign on the basis that zambia loans with China lacked transparency? Yet here we are with the west refusing to disclose to a Zambian how much they have effed then over with debt. Dogs.i hope Russia take over Europe.
What has been said there is common sense. Besides, the Zambians need to hold their government accountable, not a lender. This was mere clout chasing. You are querying $1.4bn when you stood quiet and obtained $15bn? Absolute slouch this Ex MP.
#12 The way you are reacting is the way PF used to behave. See where they are now. Look at the message not at the person saying it.
Zambians must demand full disclosure of how PF while in govt borrow up US$12 Billion dollars ,Why ther was no parliament approve? and how reckless some bundles of money where found later found at a lady’s house in New Kasama?
Some body should also write to the IMF and explain who Lusambo is, maybe IMF think otherwise, they may not be aware that this is a die hard MMD ……………………………………………………
All of you above which Zambians are demanding full closure from IMF?
Eeh , which Zambian? Lusambo?
Things will go up before coming down- Mutale
Mbuzi meeeeee, IMF discussions with the Zambian authority is not public menu for characters such as Bowman Lusambo. Lusambo is facing charges of thefts while in government and did not share with Zambians how he extotioned Zambians of their money with Chinese. Including his wife is now a criminal and thief too, facing the Zambian courts. When IMF final decision is made Lusambo could access the information he is craving, may be will help him answer theft charges he is facing with his family – what a disrace to his family.
Muna paniyopako
#10 Deja Vu
March 2, 2022 At 9:34 am
“Whenever I want to get a loan I inform my wife on what the loan is for and the conditions. If it’s not good she advises against it.”
You inform your wife, but you don’t have to inform your cousins, brothers , nephews uncles……..
GRZ must have informed all mnisters and all presidential advisers and others in key positions………
This goverment was given a 5 year mandate, a 5 year vote of confidence to carry out governing duties and getting funding is part of that…….
The IMF website has several pages on its transparency and access to information policies.
Perhaps Mr. Lusambo should have started there? If he can’t figure this out before jumping up and down how does he expect to understand the technical details of staff level agreement? Anyway, he’s already made up his mind. The agreement could promise free nshima for everyone and he would still cry like a wounded eagle never minding it was his party that took Zambia to where it is now.
@#13, IMF are not elected officials for you to demand a response from them, they are not even a Zambian institution. The explanation that was given as to why nothing can be disclosed at the moment makes sense. It remains hypothetical. Lusambo is an MP, he can demand this information from MOF. I have no interest in politics so liken me to PF is only detrimental to PF or UPND, not me.
@#21 – Your wife asks you right? She does not ask the bank. We should hold our government accountable not the IMF.
Its up to you the journalists to get the info and give it to us. Niye journalism. You want to be spoonfed? You cant even see the irone in your intro up there:
: The International Monetary Fund has REVEALED that it shall NOT DISCLOSE details of the Staff Level Agreement it entered into with the Zambian government until it is tabled before the Executive Board.
Mbuzi meeeeeeeee, got it
This chap doesn’t sound like a kaponya anymore. Like he just got educated by the new dawns free education.
Diggers should have been all over this IMF deal by the way. But alas… their pay masters.
Well said, Deja Vu @10. We are all wives and children. We MUST know.
MOSTLY USELESS COMMENTS !!!
ITS NOT UP TO IMF TO DISCLOSE BUT THE GOVERNMENT WHEN THEY READYTO DO SO
WAKE UP FOR GODS SAKE OR SHUT UP
sold the country by region leader.wait n see.He will be used left and centre utill all resources are wiped out.They will try to keep in power until they harvest everything.This president has done nothing for 7 months.He has no directions.He promised Zambians 3 meals per day.Where are we as a country?He fueled region politics until Zambians resolved to support instead of dividing the country.Alas there is nothing to show up to now.PF bult hospitals,roads and schools but UPND has borrowed USD 2 billion in 6 months and we can’t even see a road,schoo or hospital.So where are they taking the money if they accused their friends stealing but who built something?Zambians careful this party will do nothing apart from employing themselves through region politics.They have fired directors from…
CONT
.They have fired directors from other region but have left corrupt directors who come from southern province.No one fired from southern province despite being corrupt.Even FRA board chairman is there coz he comes from the same region.he is dividing us more
CONT—
.They have fired directors from other region but have left corrupt directors who come from southern province.No one fired from southern province despite being corrupt.Even FRA board chairman is there coz he comes from the same region.he is dividing us more
Why we’re stuck is because we don’t want to see what is real. If the IMF deal was under PF those attacking it were going to support Lusambo and those supporting Lusambo were going to attack. I call this BLIND LOYALTY.
The folly of the Zambian political associations is that they put their political parties above the national interests. Mr Lusambo is asking for what everyone agreed that they should know. But because it is coming from the opposition or the prty that you dont support then you rubbish everything. This is sad.