PF borrows more billions, deletes debt Zamtel, Zesco owe

The unconcerned PF Cabinet has borrowed another loan of US$541 million.

And the PF has written off the K3.4 billion which Zesco, Zamtel, Zambia Railways and Nitrogen Chemicals of Zambia owe government.

Acting Chief Government Spokesperson Vincent Mwale says the PF cabinet approved the loan from the Export and Import Bank of China amounting to US$128 million to support the implementation of the Kafue bulk water supply project which will facilitate the provision of clean water and sanitation facilities as well as mitigate health risks in Lusaka.

He says cabinet also approved the contraction of a loan from the industrial and commercial bank of China amounting to US$ 170 million to support the implementation of the Nkana water supply and sanitation project phase two.

Mr. Mwale says cabinet further approved the contraction of loans from the African Development Bank amounting to US$ 193 million and US$50 million on behalf of the Africa together Fund to support the implementation of the Chinsali-Nakonde road rehabilitation project.

On the money the public companies owe the people of Zambia through government, Mwale said his irresponsible cabinet has approved the conversion of all debt owed to Government by the four selected State owned enterprises amounting to over K3.4 billion equivalent to US$299 million as at 31st December, 2014 into equity.

 

What this simply means is that the companies will not pay back this money but the government will take up more shares in the same companies. This is actually nonsense as the government already owns and controls these companies.

Mwale named the four companies as Zambia Railways Limited, ZESCO, Zamtel and Nitrogen Chemicals of Zambia.

He claimed that the decision by Cabinet to convert the debt into equity (exchange debt for shares) is to clean up the balance sheets of the companies so as to make them efficient, profitable and attractive for investment thus facilitate creation of value for government investments. It is in these companies that the PF claimed they pumped in the money borrowed from Euro Bonds.

Most people agree that the people who currently run government have no brains and therefore often do not know what they doing as can be seen by the way they just borrow money.

The next government should consider recovering these money from the individuals by grabbing and reselling their assets.

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