Miles Calls Magande, Nawakwi Bluff

By ALVIN CHIINGA
DEPUTY Minister of Commerce, Trade and Industry Miles Sampa has rejected claims by former finance ministers Ngandu Magande and Edith Nawakwi who have been claiming that the Patriotic Front (PF) has “over-run” the national budget.
Mr Sampa has also described as unfortunate and unnecessary, the two former ministers’ decision to deliberately mislead the nation on the matter for the sake of playing politics.
He was reacting to recent media reports attributed to Mr Magande and Ms Nawakwi charging that Government had “burst” the budget beyond the planned expenditure line.
“The former ministers of finance Ngandu Magande and Edith Nawakwi’s claims that the PF Government has burst the national budget into an overrun are both untrue and mischievous,” Mr Sampa said in an interview yesterday.
Mr Sampa expressed concern at the fact that despite both politicians-Ms Nawakwi and Mr Magande-being former finance ministers, they still “greatly lack the ability to make an argument based on factual figures and statistics.”
They instead “deliberately” chose to mislead Zambians with “wild statements,” according to Mr Sampa.
“The trade of dealing with finance issues demands that one is always factual by quoting figures to support any allegation or statement made.
“Both former ministers have not told the nation the period and quantum of the alleged budget overrun,” Mr Sampa, a retired merchant banker, he said.
“The two are merely waffling and deliberately ignoring basic principles as regards cash flow management within figures in the approved budget,” Mr Sampa said.
He explained that the factual position is that salary increments for civil servants have been struck at levels higher than those anticipated or budgeted for.
Mr Sampa said: “This is because salary negotiations only materialise mid-stream the budget cycle and no finance minister can predict what the unions will bargain and agree as settlement.”
The PF Government has recently given civil servants “more money in the pockets” according to Mr Sampa, with the lowest paid civil servant taking home a minimum of KR3,000 which translates into a de facto 200 percent wage hike, the highest adjustment civil servants have gotten since independence.
Mr Sampa said: “A Government can only estimate negotiation figures. In the case of 2013, agreement was settled at KR860 million more than was budgeted for.”
He said the amount is, “in excess but it’s a worthwhile development” because Government had to plug “discrepancies” in the salary structures of the legislature, judiciary and executive arms of Government.
For instance, drivers of the same grade were highly paid in the legislature than was in the executive and judiciary.
Mr Sampa said, “this was the distorted structure left by former Finance Minister Ngandu Magande. The current Finance Minister is bold enough to do the correct things and this expenditure will however only crystalise in September 2013.”
He challenged Mr Magande to explain how he presided over a “Ponzi” scheme of maize subsidies and the so-called bumper harvests when the treasury was infact losing tax payers money through the subsidies.
Mr Sampa said Mr Magande, used to practically spend KR2 billion to produce and package maize which only realised KR1 billion after each farming season.
He said, “in the end, Mr Magande handed over a treasury that owed local banks over $300 million tailored around consumption subsidies.”
Mr Sampa said unlike Mr Magande or Ms Nawakwi, Minister of Finance Alexander Chikwanda has been “brave enough” to run the budget within means.
He said the PF Government will meet the KR860million shortfall on civil service salary increment by enhancing income streams and cutting costs within the budget lines by for instance reducing on ministerial international trips among other measures to be taken.
President Sata has for instance cut many of his obligatory trips and delegates some to the Vice President whose entourage is less costly. Mr Sampa said President Sata was expected to meet with other regional Presidents in Tanzania at the end of this week for the Smart Partnership Forum but he will not travel in line with the austerity measures imposed within the executive.
He said salaries for June have already been disbursed to all ministries and other spending agencies.
As for Ms Nawakwi, Mr Sampa said, “it’s sad to hear her scream from an anti-hill without figures or facts in her argument.”
He advised Mr Magande and Ms Nawakwi to acquire copies of the 2013 yellow book so that they can check figures and speak with facts.
Mr Magande declined to comment while Ms Nawakwi’s phone went unanswered.
The two have been cited by some sections of the media criticising the national budget and suggesting that there is an over run.

Posted by Editor on June 28, 2013. Filed under POLITICS. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry