Ministers oppose proposal for Parliament oversight over debt

Ministers oppose proposal for Parliament oversight over debt
By Mwala Kalaluka
Sunday August 03, 2008 [12:49]

TWO ministers in the Public Finance Committee of the NCC on Friday opposed a proposal from the Jesuit Centre for Theological Reflection (JCTR) that Parliament must approve debt before it is contracted. JCTR Debt, Aid and Trade programme coordinator Muyatwa Sitali in his submission before the committee said in view of the inadequate parliamentary control over the borrowing process, there was need for the new constitution to provide for the selection of a parliamentary committee to scrutinise debts.

Muyatwa, who was flanked by JCTR executive director Fr Pete Henriot, said this proposal was in tandem with the JCTR's proposed debt management bill.

"The bill proposes a broader and inclusive debt contraction process which is not only limited to the Minister of Finance but also provides the authority to Parliament to strengthen its oversight role in the contraction and management of debt," he said.

"The 'select committee' of Parliament could be either one which is already existing such as the Economic Affairs and Labour Committee, the Public Accounts Committee or the Estimates Committee or any other that may so be established for purposes of exercising oversight."

Muyatwa proposed that the select committee should analyse every loan to be borrowed in the ensuing financial year, together with the estimates of revenues and expenditure of the government.

"It is our considered view that the preparation of 'Debt Management Strategies' should be made more explicit and a directive of law," Sitali said.

He pointed out such interventions were necessary to cushion the country from getting into another debt trap.

But works and supply minister Kapembwa Simbao argued that borrowing was an unavoidable need.

He urged people to have confidence in the Minister of Finance over the loan contraction process.

Transport and communications minister Dora Siliya, who left the committee room before the issue could be put to 'rest', said Sitali's proposal would dilute the roles of the three wings of government.

She said Parliament was still privy to the debt contraction process because the Minister of Finance usually provided percentages during the budget presentation, as to how much of it would be funded from external sources.

Sitali maintained that it would be good if Parliament had an idea of what the government wanted to borrow.

Sitali said the JCTR's debt management strategy transcended political boundaries.
However, committee vice-chairperson Charles Milupi said the proposal was a progressive one and required attention, because the issue of debt was vexing.

"If you look at what is proposed here, it is not to diminish the powers of the Executive," said Milupi.