Categories: Editor's Picks

High-gate Advisory not economical

• Debt management process at a total cost of more than 300,000 pounds is not economical.
• Public debt restructuring communication services should be done either by Lazard or Ministry of Finance.
• Zambia cannot afford or continue making irrational fiscal decisions amidst fiscal challenges.

Action Aid Zambia says the hiring of High-gate Advisory Limited as the government Communications advisor for the debt management process at a total cost of more than 300,000 Pounds is not economical.
Organization Country Director Nalucha Ziba said that despite communication challenges observed by the bondholder’s, public debt restructuring communication services should be done by either Lazard or the government through the Ministry of Finance with help from Lazard the country’s public debt restructuring consultants to avoid replication of work and save the much-needed public resources.
Ms Ziba noted that Lazard is expected to communicate to lenders on behalf of the Zambian government or guide the government with communication to the lenders.
“Not overlooking the communication challenges observed by the bondholders from their second statement responding to the Zambian Government’s request for a six-month interest repayments suspension, ActionAid is of the view that public debt restructuring communication services should be done either by Lazard or the government through the Ministry of Finance with help from Lazard our public debt restructuring consultants to avoid replication of work and save the much-needed public resources,” she explained.
She added that Zambia cannot afford or continue making irrational fiscal decisions amidst fiscal challenges.
“As a country, we cannot afford or continue making irrational fiscal decisions amidst fiscal challenges. We are already spending five million dollars on Lazard, and now over three hundred thousand pounds towards the same process,” Ms Ziba noted.
Ms Ziba further said the country is spending five million dollars on Lazard, and now it has to spend over three hundred thousand pounds towards the same process suggesting the need for government to be more prudent in the way public resources are managed.
“They are managing public resources; and acquiring of public debt restructuring advisory related services is not exceptional to guarantee adequate public service delivery especially in the wake of Covid-19” she said.
Ms Ziba also observed that, there are significant public concerns and queries around the registration status of Highgate Advisory Limited, hence urging the government not only to clear the public concerns but also endeavor to embrace the spirit of transparency regarding the procurement of similar services in the future and more importantly in all its socio-economic decisions on behalf of the Zambian people.
Meanwhile Ms Ziba has advised Mining companies in the country to stop polluting the environment with impunity.
She has since called on government to ensure that extractive companies are taxed on their profits, to provide public services to benefit communities, and be made to adhere to environmental standards.
Ms Ziba added that there must be no bailouts or public investments in mining companies that continue to pollute and contribute to climate change.
“Extractive companies must be taxed on their profits, to provide public services to benefit communities, and be made to adhere to environmental standards. There must be no bailouts or public investments in mining companies, which continue to pollute and contribute to climate change. They must no longer be allowed to act with impunity,” she said.
She lamented that Konkola Copper Mines a subsidiary of the UK-based mining giant Vedanta has been polluting the main water source of surrounding villages in Chingola, on the Copperbelt Province, leaving a trail of human rights and environmental abuses for nearly two decades.
Ms Ziba says a legal action, settled out of court brought by more than 2,500 Zambian villagers, including 643 children, against Konkola Copper Mines and Vedanta Resources Limited has highlighted the devastating and deadly impact that polluters are having on surrounding villages in the Copperbelt.

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