Zambia’s Third Supplementary Budget Marred with Irregularities
The Patriotic Front government has entered a financing arrangement with CODEB Financial Advisory Boutique (CFAB), a Nairobi-based obscure financial advisory firm. CFAB is owned by Kenyans of Ethiopian origin. The financing arrangement involves a cross-currency interest rate swap (CCIRS) to finance the third supplementary budget for 2020.
CODEB has arranged $300.26 million (K6.3 billion) through the so-called CCIRS to go towards the importation of fuels and pay outstanding arrears for fuel, electricity, and additional medical staff. The $300.26 million syndicated from various banks is on-lent to Zambia at 13 percent. CFAB promised PF that using their connections in the IMF will ensure that Zambia secures another $575 million financing arrangement by early next year.
Sources close to the Finance Minister Bwalya Ngandu informed us that he has begun to distance himself from all these crooked moves, and it became more apparent on Tuesday 8th December 2020 when he decided not to attend a meeting with Mr. Abebe Aemro Selassie and a Mr. Alex Segura-Ubiergo that was held at State House feigning ill health. Our sources informed us that he wants to preserve his integrity for posterity’s sake.