TIZ Welcomes Special Audit Report on External Public Debt

By Francis Maingaila ♥️ 💖

Lusaka, Zambia24 (25-04-2024) – Transparency International Zambia (TI-Z) welcomes the release of the Special Audit Report on External Public Debt of the Republic of Zambia by the Office of the Auditor General, covering the period from January 1, 2006, to December 31, 2022.

Nyambe told Zambia24 in a statement that the newly released report responds to a decade-long advocacy effort by civil society.

According to Maurice K. Nyambe, Executive Director at TI-Z, “The mismanagement of Eurobonds, failure to finance the Sinking Fund, and inflation of interest and principals on loans have contributed to Zambia’s debt distress.”

Nyambe noted that the report confirms concerns about Zambia’s unsustainable external debt, which peaked at 70% of GDP in 2020, with a debt stock to domestic debt ratio of 170% in 2015.

He said TI-Z acknowledges the comprehensive nature of this Special Audit, which responds to public demands and goes beyond Annual Audits.

“Article 250 (1)(c) of the Constitution of Zambia (Amendment) Act No. 2 of 2016 empowers the Auditor General to conduct such audits,” he said.

Nyambe cautioned against politicizing the report’s findings or labeling it a witch-hunt targeting specific individuals or companies. While the report highlights outstanding findings, including those concerning Mikalile Trading Company, its primary focus is on improving debt management in Zambia.

He encouraged the media and all stakeholders to study the entire report, consider its critical findings and recommendations, and support efforts to address Zambia’s debt challenges.