Lungu, Mosho and the sovereign guarantee of theft

Lungu, Mosho and the sovereign guarantee of theft

The response by State House on president Edgar Lungu’ signing of US500 million loan for Zesco when Zesco only needed US350 million is an insult to Zambians.

The suggestion by Lungu’ spokesperson Amos Chanda that Lungu was Finance minister at the time the instrument of plunder was signed does not make sense at all.

Among other issues, this is because Lungu himself told the world that ministers would remain in office after the dissolution of parliament. To suggest as Chanda does that he and Lungu knew that the constitutional court would invalidate this order by Lungu makes us shudder with disgust.

What exactly is Chanda saying here, that people at state house read the judgement before it was passed? How? Who gave them a copy? Is this what happens to all court cases involving Lungu and or his officials?

Now, if Lungu says that all contracts signed during that period are illegal, does he really know what he is talking about? Why then is Lungu’s Attorney General and Patriotic Front Secretary General challenging the Constitutional court ruling that Ministers were in office illegally and they should pay back? Why are ministers still challenging the court decision?

What if the ministers succeed in their challenge, will Lungu reinstate the illegal contracts? We surely have no leader.

And even if Lungu was minister of Finance, why give a sovereign guarantee to a small South African company that builds hostels for universities? Why didn’t they give it to Barclays, Standard Chartered Bank, FNB or Stanbic? How can you give it to Stag, a non-financial, scandal ridden company a sovereign guarantee of half a billion dollars? In effect this sovereign guarantee was given to Lewis Mosho because he is the Zambian representative of Stag.

Surely Lungu, Mosho and other thieves will just discount it on the open market.

Stag currently has a proposal to build hostels for University of Zambia in exchange for its lucrative land. When they couldn’t marshal enough funds for the project, they mooted d a plan to be transaction advisors for ZESCO and registered Stag Energy, then they were immediately and corruptly mandated with raising the loan.

From what we know, the guarantee is so discredited that they floated it in China and Singapore but there was no credibility to the company that floated it that no one even touched it.

We are aware that Lewis Mosho amd Amos Chanda himself recently helped renew it with Bank of Zambia and re-signed now by Minister of Finance Margaret Mwanakatwe to attempt to give it credibility. That is why It’s back in the market

But still, the guarantee is so discredited that the financial markets in China and Singapore ignored it. This is because there was no credibility to the company(Stag) behind the floated instrument.

In fact this has raised the cost of other bonds and sovereign guarantee for Zambia as they instruments lack financial confidence and credibility.

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