Govt draws up three-year plan to pay UNZA, CBU debts

GOVERNMENT says it has developed a three-year financial strategy that will liquidate all the statutory debt that the University of Zambia and Copperbelt University owe.

Currently, the University of Zambia has a staggering debt amounting to around K2.5 billion in statutory obligations and other arrears.

And Ministry of Higher Education Permanent Secretary Mabvuto Sakala said once the financial strategy is implemented it would help the institutions channel their resources to other developmental areas.

“I’m sure you are aware that the public universities had a lot of statutory and other financial challenges in terms of what they are owing. As government, we have developed a financial strategy hoping to liquidate the public universities’ debt,” Mr. Sakala said.

Mr. Sakala revealed in an interview with Millenium Radio that UNZA and CBU owe huge sums in tax obligations, staff pensions and other public debts.

He however, said the government has committed to liquidate the debt in a three-year period once the plan was initiated in January.

Mr. Sakala said once Government offsets the debt the universities owe, resources would be channeled to other areas, especially research which is not adequately funded, as well as infrastructure.

“Currently we do have a huge public debt in terms of what these institutions are owing their members of staff in pension, NAPSA, ZRA and other statutory debt. In January we are putting up a financing strategy where we are beginning to liquidate this debt,” Mr. Sakala said.