Statement issued by Hon. Douglas M. Syakalima, MP Minister of Education, on the liquidation of part of the staff debt at the University of Zambia and other institutions under the Ministry of Education.
Country Men and Women,
I would like to address the nation on matters related to staff debt at the University of Zambia.
The Ministry of Education has taken critical steps to ensure that issues surrounding debt are dealt with in a sustainable manner.
Let me begin by indicating that as Government, we noted with dismay, the statements that have been issued by the University Unions, that is, the University of Zambia Lecturers and Researchers Union (UNZALARU), the University of Zambia Professional Staff Union (UNZAPROSU) and the University of Zambia Allied Workers Union (UNZAAWU) concerning the staff debt at the time that the Ministries of Education and Finance and National Planning, University of Zambia Management and the three Unions were holding consultative meetings on the same.
Ladies and gentlemen,
Allow me to raise 3 issues:
Genesis of the Staff Debt
The staff debt at the University of Zambia as at the end of June, 2024 has grown to unsustainable levels of K 1.385 Billion and this amount has emanated from a number of factors.
This amount relates to pension benefits, gratuities and superannuation – value of liability.
It may, however, be noted that while some of the members of staff owed gratuities are still serving at the institution, there are a number of employees who have retired who are not offering any service to the University but are still on the Institution’s payroll.
National Challenges
It may be noted that the Policy of Government has been to liquidate the debt owed to Government employees across the board.
In this regard, Civil servants who are direct employees of Government have all been cleared. The Government would have loved do the same with the statutory bodies but have been greatly constrained by the many challenges that the country is facing which include: the national debt, the current drought which led His Excellency the President, Mr. Hakainde Hichilema to declare a State of National Emergency in the country.
Government Efforts to address the University Staff Debt
Despite the noted challenges, the Government has not sat back but has been working very hard in order to address the challenges affecting the various categories of employees at the University and those who have separated from the institution through retirement and expiry of contract.
To demonstrate Government’s commitment to helping the University liquidate its debt, we have been releasing funds through the National Treasury. Between 2021 and 2022, a total of K300 million has been released so far broken down as follows:
In 2021, K 200 Million was released towards the removal of retirees from the payroll;
In 2022, K 100 Million was again released by the treasury towards the payment of staff debt.
Ladies and Gentlemen;
You may be aware that the University of Zambia is not the only Public University in the Country. We now have a total of nine (9) functional Public Universities.
You will also note that the other Universities have similar challenges albeit on a lesser scale compared to the University of Zambia.
In this regard, Government is committed to helping all our Public Universities liquidate their debts and implement sustainable operational models that can significantly reduce their dependence on state funding through the national treasury.
Apart from Universities, the Ministry also has pension benefit debt owed to the Zambia Educational Publishing House retirees and the retired teachers.
To this effect, Government, through the Ministry of Education will immediately make resources available to start dismantling these debts as follows:
University of Zambia – K 206, 312,322.00;
Copperbelt University – K48, 225,415.00;
Mukuba University – K 2,743,000.00;
Kapasa Makasa University – K 1,862, 000.00;
Kwame Nkrumah University – K 30,135,423. 00;
Zambia Education Publishing House – K18, 000, 000.00; and finally
Ministry of Education retires (teachers) – K 88, 018, 843.00
Ladies and Gentlemen;
With regard to the released funds (K 206, 312, 322. 00) for the University of Zambia, the Government has prescribed the distribution of the funds as follows:
Retirees still on payroll – K131 Million; and
Gratuities –K75 Million
Under this Payment Plan, a total of 470 people will be paid, broken down as follows:
Pensions – 71
Deceased – 12
Medical – 01
Gratuity – 386
Total: 470
The prescription of payment of the money follows the challenge that was faced in 2022 when K100 Million was released for the University to pay Retirees.
However, the bulk of that money was spent on payment of gratuities to saving employees leaving so many retired employees on the University payroll.
I wish to urge all stakeholders to understand that by clearing and removing retired employees from the payroll, the University will free up resources that can be used to adequately budget for the payment of gratuities and other staff costs to serving employees when they fall due.
Ladies and Gentelemen,
I wish to end by making a clarion call to all stakeholders in Public Universities to embrace to spirit of positive dialogue whenever they are faced with a challenge.
Our Government runs an open door policy that allows everyone and anyone with a positive contribution to finding solutions to the many challenges faced by our country to come forward.
I wish to thank colleagues at Cabinet Office led by the Secretary to the Cabinet, the Ministry of Finance and National Planning led by the Acting Secretary to the Treasury and indeed my own staff in the Ministry led by my two Permanent Secretaries for working very hard and eventually finding some resources that we have distributed as tabulated above.
I wish to also inform the nation that this effort will be an ongoing activity as we go into subsequent years until we fully liquidate these debts so that our Universities can operate sustainably.
I wish to thank you all for your kind attention. May God bless you.
THANK YOU