We have long observed that the failure of parastatals to perform has largely been down to the failure by central government to pay parastatals the debt owed to them. A recent parliamentary report (embedded below) sheds more light on the scale of government debt. Ministry of Finance estimate that Government owes nearly K400bn to ZAMTEL, ZESCO, Water Utilities and other institutions. The largest debt is to NAPSA at K163bn. The committee observes that Government is "more inclined to repay the commercial banks at the expense of pensioners and individuals suppliers...and more inclined to service external debt rather than domestic debt".
Parliamentary Report on Zambia Government Debt (2012)
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