Debt swap will take away pressure-PS

 Debt swap will take away pressure-PS

By Staff Writer
Government says the debt swap will provide significant relief to public service workers who are highly indebted and yet their capacity to service the loans is compromised.

Information and Broadcasting Services Permanent Secretary Amos Malupenga said Government is convinced that the debt swap will take away the pressure civil servants have had to endured in paying back their debtors which in some cases has affected their performance in carryout their duties.

Speaking to the media in Lusaka, Mr Malupenga said this idea was arrived at with the unions after a thorough research into the matter.

He said that the debt swap, as an addendum to the collective agreement between public sector unions and Government, is an idea which was hatched three years ago but could not be implemented due to financial implications.

“This matter has been under discussion for over three years and a lot of work had to be done in the background. Implementation delayed because of the financial implications. A lot of work had to be done in the background to ensure that this succeeds,”  he said.

Mr Malupenga also explained that the three-month suspension of deductions from civil servants’ salaries will allow for reconciliation of records to establish what exactly is owed by the employees.

This will enable Government to reconcile the records and to determine what exactly is owed so as to come up with a roadmap to offset the debts.

“It must be understood that during this period the Public Service Microfinance Company will also look at what each employee owes and propose a flexible manner in which the debt they will take over will be repaid by the affected employees. This is like an in-house arrangement,” he said.

Once all the processes are completed, deductions will then resume but this time under the Public Service Microfinance Company.

The debt swap is, therefore, a well-intended initiative between the public sector unions and Government and should not be in anyway be connected to the forthcoming general elections.

Mr Malupenga has since called upon various public service union officials, who brought the proposal to Government, to explain this idea to their members to avoid speculation and misinformation.

Alice Nachilembe

https://tiozambia.com

Alice Nachilembe is a Journalist who yearns for a better country with leaders being accountable to their mandate without oppressing the governed.