GOVERNMENT is in the process of accessing cheaper and longer-term financing for the so-called ‘formula one’ road works around the country that were begun by the MMD just before the September 20 polls, says Miles Sampa, the deputy minister of Finance and National Planning in an interview.
Sampa said Government is currently negotiating with four international financial institutions to provide the “affordable” finance instead of sticking to the expensive MMD financing that comes to an end in June.
“Government is negotiating with international financial institutions to pay-off the money that was borrowed by the MMD (previous Government) and we will definitely pay back the formula one loan when it matures in June this year,” Mr Sampa said.
He also said Government has opted to engage the financial institutions to avoid depleting the country’s reserves.
“Re-financing the loan with softer loans is the best option unlike financing with our reserves because the public will complain that reserves have gone down,” said Mr Sampa.
Mr Sampa expressed dismay that the MMD government almost deliberately committed taxpayer’s money to expensive loans when alternatives for cheaper financing were always an option.
“You just wonder what was going in the minds of MMD financial planners when they committed tax payers to expensive loans when the cheaper alternative was always on the table,” Mr Sampa said.
But former Finance and National Planning minister Situmbeko Musokotwane told journalists in Livingstone recently that it is his belief that the MMD made progress economically by reducing inflation and recording GDP in excess of six percent over a long period of time.
However, economists have always argued that despite recording GDP growth in excess of 6 percent and maintaining single digit inflation, the MMD government presided over a nation that had almost 70 percent of people living in abject poverty and worse in rural areas for two decades.
“You can’t boast of GDP growth in the backdrop of high poverty levels,” Mr. Sampa countered, “that is why under President Sata’s government we are in a hurry to cut down poverty levels in reality and not on paper.”
[Zambia Daily Mail]
Thats the way to go miles,work, work as an economist not politiking all the time…..Keep it up.Ignore Musokotwane…..remember he wants to president of MMD.
Strangely enough Mile Sampa condemns MMD 6% GDP growth rate and single digit inflation for 6 years, but he never tells you how he is going to reduce poverty in the rural areas. He literally have no idea other than using cheap economics. I guess he wants to inform us that the reserves will go to subsidize rural “good investment”. These guys have no plan. Zero: brain dead insects.
Mr Sampa says and I quote “because the public will complain that reserves have gone down,”. My view on this one is that it is not about the public’s reaction but for the Government to do what they sincerely believe is in the best interest of the public. So if it means shrinking the reserves by even a third or half, for the sake of a better economy tomorrow for every zambian, so be it! That is what is called prudent investment. Mr. Sampa needs to be reminded that the list of countries in the world with reserves of about $500 million is as long as that with countries with reserves of about $2 billion in which category Zambia belongs. Wake up Mr. Sampa, some countries with less than $2 million have even better quality of lives for citizens than our poor Zambia.
Bills, bills, bills. Let’s no longer pretend we have none left over to pay or that we won’t leave any for us to pay with each government we have :)
Someone please help me understand.
MMD (1.) borrowed money using our name (2.) on very bad terms (high interest, short term).
And all we can say is that we will renegotiate the terms??
The loan was taken and timed SPECIFICALLY to sway the urban vote. That they did not get the vote is no comfort.
I know numerous individual cases, both urban and rural have been petitioned both ways.
BUT, I feel there needs to be some deterent for a certain lose-canon finance minister (Musokotwane) who abused his status and our money to try and extend mandate in power.
I do not see why we should not take this matter to court or better COI and surcharge the pompous imbeci!e Musokotwane just as we are charging Shikapwasha.
And please lets charge the imbecile who has spent 11 million dollars on a dubious gift. Not to mention 4 million dollars on dubious renovations! How about k14 billion that has been dubiously forgiven. Let all imbeciles pay.
Come June all road constraction projects come to a stand still. PF stopping nepotism, Sampa all he should have told the nation is that govt has secured funding to continue with formula 1. Now he is telling the nation that there will be no funds for these projects beyond June 2012. PF it is trully DOCHI KUBEBA style.
Will this ensure these dusty suburbs will be tarred as the rains end? I cannot imagine the criminal act of downgrading otherwise decent neighborhoods in the name of winning votes. Someone must pay for this!
Miles is just waffling
. The loans for road construction came mainly from the Chinese, African Development Bank and the Southern African Development Bank. Can the president ‘s nephew tell us where they will get cheap money? It is also a bloody lie to say that money to construct a particular road will run out at a specific date. That’s just warped. A loan for a road is for the entire project and it is not designed to run out at a particular date.
Nobody is stopping people from taking legal action over the Malawi fuel donation.
The possibility of Musokotwane being surcharged for formula one really bothers you. I am sorry you will miss the smell of his dick when he eventually goes to jail. Better find another one to suck biatch
You Zambians are very dull. I used your money for the purposes of furthering my political party and am getting away with it. As for the people killed in the Mongu riots, nothing will be done. And when I get back into power come 2016, all you idio+s making noises will be silenced. And I will abuse your money even more. Anyone who needs a bicycle, please contact me
But l will not give away you oil. I will also not single source my relative to renovate state house. I will not run a tribal govt were 85% of appointments are from northern and luapula province. I will also not appoint relatives and girlfriends to govt positions. I will be civil in my dealings with fellow human beings. I won’t tell 90 day lies.
Bottom line is that PF government too will borrow just MMD did. Having been donchi kubebad once, we would be unwise to believe this lot again. We wait and see but we donchi believe.
Was a bit lost about Formula 1.Grand Prix?Was excited about coming down to show off my Ferrari.
Sorry, you are going to have to face the music. You need to get a part time job, no matter how lltite time you have and start paying something towards your debt. Otherwise it’s telling your parents that your an moron and ask for help. Using the student loan to pay your debt is illegal. Step up and be an adult. It won’t be easy but it will teach you a valuable lesson and that is what life’s about.