Maravi

Chitala implores creation of body to manage debts

Chitala implores creation of body to manage debts
Written by Chiwoyu Sinyangwe
Tuesday, March 17, 2009 1:56:26 PM

THERE is an immediate need to create an autonomous statutory institution to manage current and future debts, Zambiaís former ambassador to Libya Dr Mbita Chitala has observed.

And Dr Chitala, who has just completed his Doctor of Philosophy (PhD) in Public Administration, said continuous dependency on aid has led to complacency and lack of creativeness among the Zambian people.

Dr Chitala said this on Wednesday night at Mulungushi International Conference when he publicly presented his graduate research findings under the theme ‘Constraints of Public Debt Management in Zambia, 1991 to 2004 and Prospects for Improved Management’.

Dr Chitala explained that according to his findings, the current absence of statutory institution made it difficult for the country to properly keep a tab on its debt.

He indicated that the proposed organ needed to be answerable to Parliament to ensure transparency.

Dr Chitala also argued that it was irregular for BoZ to continue managing the countryís debt, saying the decision created room for anomalies in that debt issues were more of fiscal matters when the role of the Central Bank was that of implementing monetary policy.

Our debt system is so unsynchronised that by the end of year, we fail to properly account for the level of debt stock we accumulate because almost every ministry or any government spending agency can contract debt,î Dr Chitala said.

And Dr Chitala said aid clouded people from thinking intelligently and also inhibited enough policy space for the country to determine its own developmental direction.

He said there was need for the country to shift to financing its development programmes through grants as opposed to being dependent on aid which he described as a ploy by former colonial masters to keep grip on the country through ëslaveryí conditionalities.

The challenge we are facing now is to find ways to exit from aids and this calls for initiative, Dr Chitala said.

Meanwhile, Dr Chitala said there was need for the BoZ to revert to a system of fixing interest rates in the country and not leaving the responsibility to a cartel of bankers.

Dr Chitala indicated that the current liberalised interest rates structure in the country had only worked to the benefit of bankers at the expense of the private sector.

World over, the practice is that Central Banks determine the interest rates but I donít know why the practice is like this in this country, there is a definite need for us to revisit this position, said Dr Chitala who is a veteran politician and founder member of ruling MMD.

Labels: AMBASSADOR, DEBT, DONORS, GOVERNANCE, MBITA CHITALA

posted by MrK @ 1:56 PM