#STORYOFTHEDAY 22/07/2020

332 PEOPLE PERISHED IN ROAD TRAFFIC ACCIDENTS DURING THE SECOND QUARTER OF 2020

Police have recorded a total number of 6,143 road traffic accidents out of which 332 persons were killed, during the second quarter of 2020.

Lusaka province recorded the highest number of road traffic accidents with 3,212 followed by Copperbelt with 1,121 whilst western and Northern provinces recorded the least with 130 and 125 road traffic accidents respectively.

During the second quarter of 2019, 7,687 road traffic accidents were recorded as compared to 6,143 road traffic accidents recorded in the second quarter of 2020.

Compiled by Patrick Soko

A CONSUMER BODY CALLS FOR THE REVISION OF THE LEGAL FRAMEWORK GUIDING DEBT MANAGEMENT

By Patrick Soko A consumer body has noted the need to revise the legal framework guiding debt management as high debt levels continue to be a major challenge for Zambia as evidenced on the county's inability to raise resources for development.

Kangwa Muyunda

The Consumer Unity Trust Society Cuts observes that the Covid19 has further intensified Zambia's debt situation and has forced the government to re-budget and revise expenditure. CUTS Programmes Officer Kangwa Muyunda recommends that as the government re-prioritizes the Budget, social sectors such as health, social protection and education must be prioritized. Some of the legislation which needs to be revised include the Loans and Guarantees (Authorization) act of 1994, the Public Finance Management Act and the yet to be enacted National Planning and Budgeting Bill. According to the International Monetary Fund which recently concluded its virtual mission visit, the social and macroeconomic impact of the COVID-19 shock, on top of a severe drought last year, will be heavy. Growth is forecast at around 5 percent in 2020 and the number of people living in extreme poverty is expected to increase. Fiscal pressures in 2020 have increased due to significantly lower revenue collections and higher spending needs. Speaking during a media briefing in Lusaka this morning Ms Muyunda pointed out that despite increasing debt levels there is a lack of Transparency, Accountability and participation in the management of debt which he said must be addressed. In the meantime, Zambia’s external debt stands about $11.20 billion available Data also shows that Zambia’s domestic debt is at K80.2 billion. And speaking at the same briefing Zambia Association of Manufacturers new Chief Executive Officer (CEO) Florence Muleya says domestic debt is crowding out private sector as banks prefer to lend to the government over the private sector. Speaking during a media briefing in Lusaka this morning Ms Muyunda pointed out that despite increasing debt levels there is a lack of Transparency, Accountability and participation in the management of debt which he said must be addressed. And speaking at the same briefing Zambia Association of Manufacturers new Chief Executive Officer (CEO) Florence Muleya says domestic debt is crowding out the private sector as banks prefer to lend to the government over the private sector.

Florence Muleya

She has therefore called on the Government to seek the International Monetary Fund package in order to give space the private sector borrow from local lenders. She feels and IMF package is ideal for Zambia owing to the conditions it comes with. #Presspoet2020

GOVT URGED TO ADDRESS LOW PUBLIC PARTICIPATION ON BUDGET FORMULATION

By Patrick Soko

THE Public Financial Management Consult PFM-G has established that Zambia’s level of public participation in budget formulation remains low, as indicated by the 2017 and 2019 Open Budget Surveys.

For Zambia to increase its level and effectiveness of public participation there is a need for stakeholders to initiate policy changes for improved participation.

On the 7th of June 2020, the Ministry of Finance released a treasury brief inviting the public to make submissions for the formulation of the 2021 budget and the 2021-2023 medium-term expenditure frameworks.

Joseph Chirwa Economist, PFM-G Consult notes that this call is not new since the government has established pre-budget deliberations during budget formulation as a key aspect of the budget process.

In seeking to contribute to effective public participation, PFMG Consult has undertaken a review of the current state of public participation in Zambia’s budget process.

“The resultant policy brief highlights the importance of addressing low fiscal transparency, disorganization and strained relations between Government and Civil Society Organizations, for the nation to increase its level of public participation,” says Mr Chirwa.

He says the Government should take steps to increase budget transparency by publishing electronic copies of key budget documents which are currently pending.

“It must be noted that only a well-informed public can effectively engage its government on spending and allocation decisions. Furthermore, government and CSOs should take steps to restore their fragile relationships as well as improve coordination and organization,” says he added.

Mr Chirwa has, therefore, urged the Ministry of Finance, to neutralize the current ‘politically charged’ governance environment; in which CSOs are expected to either praise or criticize the government, with no middle-ground, objectivity or neutrality.

On the other hand, public interest groups such as CSOs, private sector players, professional associations and academic institutions, should find ways to coordinate their submissions in order to present a united front on key policy issues.

#Presspoet

POWER HIKE TO HARM THE MANUFACTURING INDUSTRY

Chipego Zulu and Chennai Mukumba  

By Patrick Soko

The Zambia Association of manufacturers says increasing electricity tariffs will harm the Manufacturing sector.

Tomorrow the Energy Regulation Board (ERB) will be conducting public hearings on Zesco’s application to revise electricity tariffs to be held simultaneously at 10:00 hours in Kitwe, Livingstone and Lusaka, respectively.

Zambia Association of Manufacturers Vice President South Chipego Zulu says increasing tariffs is not going to help address power challenges but that there is a need to take a holistic approach to respond to electricity issues.

Speaking during a media briefing in Lusaka this morning she has underscored the need to ensure that the cost of electricity study is done before increasing electricity.

And Consumer Unity Trust Society Center Coordinator Chennai Mukumba insists that consumers are already burdened with the previous 75 percent hike in electricity hence increasing the tariffs would adversely affect them.

Tariffs (excluding customers supplied under Power Purchase Agreements) by a weighted average rate of 113% broken-down per customer category as shown below:
1 Residential 106%
2 Large Power 73%
3 Small Power 75%
4 Distributor New proposals
5 Commercial 170%
6 Services 143%
Total Weighted Average of 113%
Also, ZESCO had applied to adjust Connection Fees by a weighted average rate of 213%.

04/11/19

"THE CONSTITUTION WILL EMPOWER THE EXECUTIVE WITH MORE POWERS THAN PARLIAMENT ON DEBT MATTERS"

By Patrick Soko

Non-state Actors have questioned the motive behind the patriotic front administration's intention to curb Parliamentary oversight on debt contraction.

A survey conducted by the Consumer Unity Trust Society has revealed that the majority of citizens in the country feel Government has not been transparently accountable in the manner it has been contracting debt.

It further reveals that people want parliament to provide input before the executive borrows money.

CUTS Centre Coordinator Chenai Mukumba regrets that the proposed constitutional amendment bill will take away the provision that empowers parliament to approve debt contradicting the will of the people.

Ms Mukumba adds that the office of the auditor general and the office of the public protector will equally be made weak if the constitution bill is adopted in its current form.

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The Constitution of Zambia (Amendment) Bill No. 10 of 2019

Bill to amend the Constitution of Zambia with proposals to revise National

Assembly oversight over debt contraction as well as proposals to revise systems

for financial accountability.

1. Section 13 of the Constitution of Zambia (Amendment) Bill

The proposed provisions delete paragraphs (d) and (e) of Article 63 (2) the

Constitution of Zambia Act No. 2 of 2016 which provides that:

“The National Assembly shall oversee the performance of executive functions by—

(d) approving public debt before it is contracted; and

(e) approving international agreements and treaties before these are acceded to or ratified.”

National Assembly’s ability to approve public debt before it is contracted and

approved, and international agreements and treaties before these are

acceded to or ratified is removed.

3. Section 74 of the Constitution Amendment Bill further proposes the repeal of Part XVIII of the Constitution which provides for Service, Investigative and Other Commissions and Independent Offices.

Independent oversight institutions or watchdog institutions exercise oversight of the executive and public administration in a different and more specialized way compared to how parliaments exercise oversight.

With regards to the oversight institutions related to public finance, the bill proposes provisions that limit the scope and authority of the Public Protector

The proposed Article 224 (c) bars the Public Protector from investigating any matter that involves relations or dealings between the government and any foreign or international organization.

LGAZ

GOVT URGED TO PROMOTE BREASTFEEDING

While the Country, next Month joins the global community in marking the World Breastfeeding Week, the Government has been urged to improve interventions aimed at promoting excessive breastfeeding in view of safeguarding the plight of children. 

World Breastfeeding Week is celebrated every year from the 1^st to the 7^th  of August to encourage breastfeeding and improve the health of babies around the world.

According to the World Health Organization, breastfeeding promotes better health for mothers and children alike.

Increasing breastfeeding to near-universal levels could save more than 800 000 lives every year, the majority being children under 6 Months.

Breastfeeding decreases the risk of mothers developing Breast Cancer, Ovarian Cancer, type 2 Diabetes, and Heart disease and it is estimated that increased breastfeeding could avert 20 000 maternal deaths each year due to Breast Cancer.

Civil Society Organization for Scaling up Nutrition Alliance (CSO-SUN) National Coordinator Mathews Mhuru said in an interview that measures must be put in place to ensure that women are able to breastfeed their babies even at the workplace.