THE CHINESE DEBT UNSETTLES STATE HOUSE By The Speech Analyst – Mike Sichula

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THE CHINESE DEBT UNSETTLES STATE HOUSE

By The Speech Analyst – Mike Sichula

Finally the Government of Zambia is opening up regarding the much under Lock and key foreign debt stock though still not informing Citizens the exact debt it ows the Chinese Government.

……..Our Analysis comes in the wake of a statement issued by presidential aid, Mr..Amos Chanda, following a between President EDGAR Lungu and Chinese Ambassador to Zambia, Mr. Mr Li Jie, at STATE HOUSE yesterday.

A reminder of what President Lungu had directed the Ministry of Finance was to stop debt contraction, cancel some existing loans, terminate projects below the 80% completion rate, accelerate payment of suppliers and contractors owed arrears and the implementation of expenditure reduction measures.

……And now here is what our Team has extracted from the full presidential Statement.

“On his part, President LUNGU assured the Chinese Ambassador that Zambia will proactively engage China at every stage of the implementation of the Debt Restructuring Programme to avoid disruption in the financing for project implementation and overall contractual obligations”.

………We ask why Should the Zambian Government “proactively engage” China over the ‘Debt Restructuring Programme’. This in short reveals that the Debt has reached unmanageable levels hence the dire need to “restructure” the unknown debt as a way to create breathing space.

……..Before engaging the Chinese Government, it is logical for The Ministry of Finance to unzip it’s Debt book and tell Zambian the true amount of Debt owed to The Asian Nation.

This meeting has been necessited by the rushed prouncmemnt made by Finance Minister, Margaret Mwanakatwe, who excitedly said Government was to put on hold some Construction works as austerity measures to save money.

……..Here also is what President LUNGU, said regarding this matter.

“The President appealed to the Chinese Ambassador to inform all relevant Chinese authorities, financiers and companies that there will be no disruption in the ongoing projects because there was a care approach to guide the implementation of the measures announced by the Minister of Finance”.

…….When a any Bank issues a loan to an individual or Company, there is a loan repayment schedule which must be strictly followed failure to which contractual and Legal issues can arise.

…….It is our firm Analysis that the seemingly abrupt call to halt construction works has not pleased Beljing hence the decision by President LUNGU, to send his Ministers to China to explain why a “change of mind” on signed agreements.

“To this effect, the President informed the Ambassador that he has assigned five (5) Ministers to travel to China in the coming days to hold strategic consultations with Chinese authorities, financing institutions and Chinese companies doing business in Zambia to discuss the Debt Restructuring Programme.

……You can only restructure something you are having difficulties to sort out as early planned….

“The Ministers who have been assigned to travel to China are: the Ministers of Finance Margaret Mwanakatwe, Foreign Affairs Joe Malanji, Housing and Infrastructure Ronald Chitotela, and National Development Planning Alexander Chiteme” President LUNGU said.

…….Why not conclude the Discussion in Lusaka and NOT Beljing, at who costs will this Delegation that will even be more than 20 people travelling to the Far East be?

……..What you may have forgotten a statement said by a Former Minister, who likened a Firetender procured at 1 million dollars each to a “wheelbarrow”

In September, 2017 Mr. Lucky MULUSA, disclosed that China holds the largest contracts in the infrastructure sector amounting to about 83 percent.

The Sacked National Planning and Development Minister said that over 10 years from 2011 to 2021, Zambia is envisaged to spend about US$20 billion of which 83 percent will be undertaken by Chinese companies.

…… China Investments in Zambia are way above hence it will not be possible to “Just” or cancel some existing loans, terminate projects below the 80% completion rate as was announced by The Zambian Government….

He was speaking during the China-Africa Trade Development and Impacts Dubbed: Case of China-Zambia relations Policy Consultative Forum, Mr. Mulusa says it is important to learn how Zambia can learn from her relationship with China especially in terms of enhancing its productive capacity to grow and nature the investment in a manner that reduces stress on the repayment obligations.

He foresaw the repayment obligations ahead which is now being referred to as “Debt Restructuring programme”.

The Patriotic Front administration must be act clever when things are not in right direction, those in Opposition are not dull, they have valid points which must not be arrogantly ignored.

Things are under the PF not as clear as the “Chinese Handwriting” as can be seen by anyone who does not know how to read or write the Mandarin Language.

Chris Mulenga Mutale remonstrated: “Aba bakabolala balatwibila sana can we woke up and see how this people’ are brutalizing our country in the name of development, u cannot develop a country in 5years it takes time with a precision calculations, with adjustable programme’s”.

Leonard Lubula said: “Paipa pano, the speech analyst thank you for that information”.

Reaganho Works noted: “When as a people, we criticize, concern is based on knowledge…Too much Corruption”.