University of Zambia (UNZA)’s debt to statutory bodies has grown from K2.5 billion to K4.5 billion due to accumulated interest rates, vice- chancellor Luke Mumba has said. UNZA owes Zambia Revenue Authority (ZRA), National Pension Scheme Authority (NAPSA), Workers Compensation Fund and other service providers. Professor Mumba said in an interview that the institution owes NAPSA K1.3 billion, a debt which has accumulated due to the 20 percent monthly interest charge.

He said some of the service providers have threatened to disconnect services to the institution. Prof Mumba said in 2016, Government devised a strategy to liquidate the debt and but that only K23.4 million was released last year out of the expected K103 million. “The K23.4 million was prioritised for families of deceased employees.

We still owe retirees from 2011 and the institution has run out of funds,” Prof Mumba said. He said the three-year financial strategy to liquidate the debt has not been honoured by Government because of financial challenges the country is facing. Prof Mumba said the Ministry of Higher Education needs to renegotiate and move the 2020 deadline to a later date to clear the debt.

“The K2 million we pay monthly to retirees could be used to invest in other activities,” Prof Mumba said. The vice-chancellor added that the K16 million monthly grant from Government is only enough to remunerate 28 percent of the wage bill and the institution is left to look for the extra 72 percent of funds.

He said the institution has not paid serving employees on contract who have served for many years and are entitled to gratuity. Prof Mumba called on Government to pay an advance from the remaining grant for the institution to meet salary obligations for August and September. He also said that the directive by the Ministry of Higher Education to have students write examinations without clearing fees has negatively affected operations of the institution. “Students who are able to pay the fees have taken advantage of the directive, which has crippled resource mobilisation for the institution,” he said