BE PRACTICAL, PEOPLE ARE SUFFERING, THIS CAN TRIGGER CIVIL UNREST, M’MEMBE TELLS UPND
Socialist Party president Fred M’membe has called on the UPND Administration to be practical and provide solutions as people were suffering.
Dr. M’membe warns that the current suffering threatens security as it may lead into civil unrest.
“Let’s be practical. People are suffering. This can trigger civil unrest, leading us deeper into the hole,” said Dr M’membe.
The Socialist Party president said this in an article below seen by Zambian Eye posted on his Facebook page:
In his statement to Parliament, finance minister Dr Situmbeko Musokotwane said,
“Once debt restructuring is completed, it will create fiscal space.” How? We ask because Zambia stopped servicing non multilateral debt since November 2020. So, where is the money we are saving from non servicing of debt? And how come there is no stabilizing impact on the economy? Once debt restructuring is achieved, we actually have to start paying. So, effectively, we will have less money – despite the partial grace periods negotiated for. Or did the finance minister mean after debt restructuring, we will have market access so we can have new borrowing from capital markets and other lenders? They seem to be inclined towards the latter as their plan B.
The rest is hogwash. We have been told for close to 3 years and constantly refusing to admit that we are out of pocket because of mining tax waivers and other concessions.
With regard to colossal sums of investments being attributed to mining investors, the reality is that it will not translate into dollars at investment par value flowing into the country. The reality of the matter is 70% of investment funding being quoted will be paid overseas for equipment, consultancy, legal fees, and so on and so forth.
It is also worth noting that mining is a long-term investment, and the gestation period for such investments is 5 years plus. So, there will be no immediate impact on the Zambian masses.
To claim that mining companies would have left the country with the taxation system UPND found is at best allucinating. Which investor can walk away from billions of dollars investment just like that? Why did they not walk away when President Levy Patrick Mwanawasa introduced the punitive windfall tax? Again, they are just justifying the unjustifiable to please their imperialist and transnational corporations masters.
We need some practical immediate solutions to mitigate the painful high cost of living traumatising Zambians. Sort out current problems and suffering of the people; then we can patiently listen to long-term mining plans. Let’s be practical. People are suffering. This can trigger civil unrest, leading us deeper into the hole.
We want immediate solutions within a 12 month planning cycle.
Fred M’membe
President of the Socialist Party