Borrowing Bill to boost transparency

….GYZ says bill positive though long over due

THE move to present a bill to Parliament that will seek the approval of the National Assembly for all Government borrowing is welcome, the Gallant Youths of Zambia (GYZ) has said.

GYZ said the bill would help enhance transparency and foil unnecessary and baseless accusations on such decisions.

During the 2018 national budget presentation last Friday, Finance Minister Felix Mutati said Government, in its implementation of the 2018 national Budget and that as per constitutional requirement, he would present a bill to Parliament on borrowing.

Mr. Mutati said as part of transparency and good governance which was a cornerstone of Government, he would present a bill to repeal the Loans and Guarantees (Authorisation) Act during this session of Parliament.

He said the Bill will provide for enhanced oversight over the borrowing activities of Government by having the National Assembly to approve loans before they are contracted.

Speaking to the Daily Nation yesterday, GYZ executive director Henry Mulenga said the move was long overdue.

But he noted that it had come at the right time when there was a public outcry especially from the opposition who were accusing Government of lack of prudence in soliciting for borrowing and inflating the borrowing threshold on purpose to benefit from the debt.

Mr. Mulenga said national borrowing was not a responsibility for those in power alone but for all Zambians as they were the ones baying back the debt incurred.

He said allowing an input from all political parties by debating and agreeing on the amount to be borrowed would curtail bickering and unwarranted attacks among stakeholders.

“This is a positive move. Though long overdue, it has come at the right time when opposition political parties have been complaining of being left out in making such big decisions on borrowing.

“With this bill in place, it will dispel all these accusations and suspicions as it will be everyone’s responsibility in the National Assembly to assess the need and consider whether borrowing would be necessary,” Mr. Mulenga said.

He called upon MPs to seize the opportunity by debating the bill with seriousness and not premise their decision on political affiliations to avoid jeopardising an otherwise great move which will make them in charge of the borrowing process.

Clause (1) of Article 282 of the constitution provides that Government may borrow money from any source and further in clause (2) of the same article explains that Government shall not borrow, guarantee or raise a loan on behalf of itself or any state organ, state institution, authority or person except as authorized by or under an Act of Parliament.