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Zambians Should Not Allow The PF To Have Anything To Do With Subsidies – Dante Saunders
I urge the people of Zambia not to allow the Patriotic Front (PF) government with its planned project of fundraising using the subsidies removed from fuel and maize. I am aware that there will be a lot of money that will be realized from the removal of the said subsidies. The money will end up in the pockets of private individuals that hijacked the Patriotic Front who cannot be trusted. They will squander the money from subsidies the same way, the MMD the money that was realized from the sale of mines and other parastatals during the age of privatization on Zambia. Some of the ministers in this government held top positions at the time money from the privatized mines was misused or stolen at that time.
Another reason why we don’t want this government to have nothing to do with the issue of subsidies is the sudden change on the part of government. There is nowhere in the PF manifesto where it is indicated that subsidies on essential commodities will be removed. All mentions was that, they will change the way to deal with subsides if they formed government. In line with this promise in their manifesto the removal of subsides is quiet suspicious.
I am also aware that, the removal of subsidies on maize and fuel will generate a lot of money. Regrettably, the money from the subsidies will be misapplied in areas such as by elections, funding the constitution in an adhoc fashion, meeting extra expenses in an over bloated government, funding of over other countries’ internal affairs such as exporting of maize to countries like Tanzania, Malawi and Zimbabwe. Similarly, we have proved that at the moment the most compelling need for the PF government is to increase the tally in parliament.
Now, this government want to legitimize the removal of subsides by championing arguments in support of subsidies that it will use these proceed for “resource security” or “access” or “social or trade protection.” All these are another set of lies. This government just wants to use the proceeds from subsidies to champion its political agenda of wanting to create a one state where only the top brace of the PF leaders will benefits.
Equally, what has gone unnoticed in the PF explanation of the removal of subsidies is the fact that government is running out of cash pure and simple and can no longer afford the KR2.3b ($430m) of subsidies as well as continue with its budget implementation and development projects. Its debt nudges 4.3% of GDP and bond yields are rising. Let me make it clear here is that the disaster over the removal of subsidies hides the real predicament that the government is in.
The government claims it wants to shift spending to social sectors and infrastructure investment especially in poor rural areas. We advise the PF that “the era of being a consumer economy is over and now is the time for putting resources in real development” and that means the economy must be controlled by Zambians and not foreigners as it is today. The end of the “consumer era” bluntly means the consumer pays more for fuel and virtually all transported goods and labor derived services and maize. Farmers will pay more for fertilizer and the consumer will pay more for food and unconditional maize buying by the state will cease food security. What this PF government has failed to know is that, energy subsidies are costly to a national budget and crowd out other spending, including on much-needed infrastructure and social services.
My advice to this government is that, cut down on the overheads; deal directly with the suppliers of fuel and fertilizers, cut out all the middle men because they are responsible for the following activities. The cost of fuel taking into account both direct subsidies and foregone taxes, amounted to 1.4% of the region’s GDP in 2012. For oil exporters, the fiscal cost was 3.2% of their GDP. The data for Zambia shows the 5% fuel subsidy totaled KR754m ($145m) or 0.7% of GDP in 2012 rising from KR100m or 0.1% of GDP in 2010. According to the Zambia Institute for Policy Analysis and Research (ZIPAR) the subsidy was projected at KR1.2b ($225m) or 1% GDP in 2013. The rise is due to 25% increase in oil prices as well as rising consumption.
When it comes to the electricity sector, the available information indicates that the substantial costs are incurred by fixing power tariffs below the costs of production. Currently Zambia experiences a shortfall of 200 megawatts during peak periods. Only 20% of the populations have electricity. Zesco, the state utility, is planning a substantial revision of tariffs of 26% next year. On this issue, the PF government claims the fuel subsidy of KR1.2b plus the maize subsidy of KR1.1b would be better spent on other social and infrastructure projects. This so called subsidies amount to $430m.
Therefore, I urge the people of Zambia not to allow the PF government to have anything to do with the removal of subsidies because it is not better place to address relevant concerns.
Issued by
Dante Saunders
Posted by
Gaddafi
June 13, 2013 at 5:52 pm
True, only a witch’s son
Moffat
June 13, 2013 at 6:00 pm
Well said but without any cognitive full negative feelings. It frée association in psychology & psychiatry.Chainama patient & candidate for psychotropic drugs that can balance his imbalance neurotransmitters.
andyzim
June 13, 2013 at 7:15 pm
Subsidy funds are but a small percentage of the national treasury in PF hands. just let them rule. thry are already incharge.
kaysis
June 14, 2013 at 3:30 am
loooooser
isaac
June 14, 2013 at 9:27 am
Sour grapes Dante, i remember three days after PF was declared a winner of 2011 election Saunders was on Muvi television saying “me i can only accept the position of Home Affairs Ministry” but after cabinet was put in place the ministry which he wanted was given to Given Lubinda from there Dante was never the same he became a major critique of this govt.This is being preposterous and grotesque to the old man like Dante.
Mbulwe.c
June 14, 2013 at 11:12 am
He brought a number of issues although to a larger extent emotions,bitterness and assumptions infiltrated in his discussion. The removal of subsidy is welcome and we implore the Government to remain steadfast in its quest to develop Zambia. The people of Zambia should monitor and take the Government accountable over National resources.
zigi
June 14, 2013 at 11:25 am
Dante Saunders is one foolish colourd man,typical of all so calld colourds,dirty and addictd drug barons.next case pls!
ZIGI
June 14, 2013 at 11:30 am
dante is one foolish colourd thing.typical of all so called colourds,dirty,unschooled drug addicts and prostitution offshots.next case pls!
john banda
June 14, 2013 at 3:53 pm
OUT OF TOPIC. why can’t the President go around the country to thank pipo who voted him to the highest seat of the country than just sitting in the statehouse and visiting other countries.He has lot to do their so MPs who stood on PF tickets but failed to make it when are just in destitution eg the one for Chasefu here in Lundazi.He really supported him and PF.
Kennedy
June 14, 2013 at 4:38 pm
These coloured rascals think they belong here. OMG! we are so good. Even these pathetic crooks can insight Zambians.
Kenneth Kaunda Obama Mbewa
June 14, 2013 at 7:11 pm
what most critics are saying has no benefit to the poor and under privileged citizens. can any one make me understand how Zambia intends to settle all its pending loans to the developed countries that were obtained during the MMD reign? also why should we always make a budget based on money that is not there but to be borrowed.
Dimma
June 20, 2013 at 5:17 am
Give the government a solution and not just criticisms. This will not develop the nation. MMD messed everything up, period
Chiingu Romance
June 29, 2013 at 1:37 pm
CLEAR CASE OF SOUR GRAPES BA ZUNGU
Elisha
August 8, 2013 at 12:13 pm
Let’s learn not to be extremists in our criticisms.Analysis should take precedence in such discussions.Sour grapes and bitterness maybe evident in his statement but something can be extracted from it.I think we need to make the government accountable of the money raised from the subsidies.There must be transparency.By now we are suppose to know how much has been raised and how it is going to be used.So far,we can’t see anything tangible from the Eurobond money and everyone is quite.Yet it will be you and I or our children who tightening belts to our spines when payback time comes.Let’s keep these people in check!
for the manchild
September 23, 2013 at 10:05 pm
Aba ba mudala ngatecipuba ninshi lishilu what he talks about is just bitterness you will die of bitterness if you are not seeing the positives in this Govt then you need your head checked. Be realistic