• Dismantling of domestic arrears strategy that the government has released is a very welcome move.
• This will stimulate the economy.
• Within the strategy, the government has provided reforms that will enable the country not go back to this situation again.
An Economist says implementation of the domestic debt dismantling strategy that government has released will stimulate the economy.
Trevor Simumba said it is critical that the multi-year plan of action that government has come up with is done as it is going to bring about a lot of confidence in the economy.
Mr. Simumba advised government to ensure that the country does not go back to a situation where domestic arrears accumulate to the extent that they have accrued over the last 7 years of the previous administration.
“Dismantling of domestic arrears strategy that the government has released is a very welcome move and it’s actually very exciting. It is a multi-year plan of action and I believe that it is very critical that this is done but more importantly, within the strategy the government has provided reforms that will enable us not go back to this situation again.”
“We should never go back to a situation where we allow arrears accumulate to the extent that they have accumulated over the last 7 years of the PF government. So for me I am highly excited, I look forward to the execution of this strategy and this will stimulate the economy. The fact that this has happened is going to bring about a lot of confidence,” Mr. Simumba said.
Meanwhile, Mr. Simumba called on firms that have been engaged by government to conduct the forensic audit on domestic arrears to ensure that the exercise is done very effectively so that only local contractors and suppliers who are compliant get their dues.
“It’s also very important going forward that as government implements its new procurement policy for construction projects that are coming up, that the selection and procurement of these services and goods is done transparently and without corruption because that way, the government will get value for money,” he added.
Government has come up with a strategy on dismantling of domestic arrears that will prioritize clearance of arrears owed to domestic suppliers of goods and services and to contractors reinvesting funds in the country.
The strategy will also ensure that there is authentication of the bills due and delivery of goods and services, with a defined schedule for payment as well as a system that will allow transparency and predictability. The strategy will also put measures to halt the accumulation of arrears.