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Molline Gagare Business Reporter
POLICY consistency and transparency are required to curb Zimbabwe’s growing debt to internal and external financers, Bulawayo residents have said. The country is struggling to service an estimated $7 billion foreign debt while being saddled with an internal debt of about $1.2 billion. Speaking during a Parliamentary Portfolio Committee on Finance and Economic Development’s consultative meeting at the Small City Hall on Thursday, residents stressed the need to urgently address the country’s debt to pave way for future economic investments.
The meeting was meant to gather public views on Public Debt Management Bill (PDMB) and Joint Ventures Bill (JVB) — soon to be tabled before Parliament.
“We want transparency in public debt issues. We want names of people who owe government to be made public. Even parastatals should be named and the public be told specific amounts they’ve borrowed,” said one of the participants from the floor.
Others said the authorities should come up with a mechanism of policing the Parliament committees as they also have a potential to abuse authority and public funds.
Committee chair David Chapfika agreed with residents who also blasted top government officials for unduly benefiting from State funds without paying back.
“Borrowing is necessary if the loans are put to good use. Inadequate regulation and supervision, lack of transparency contribute immensely to the accumulation of debt,” he said.
“Efforts should be stepped up to implement financial policies that’ll be executed in an effective manner so as to reduce the ballooning of the debt.”
The Public Debts Management Bill seeks to provide for the management of public debt in Zimbabwe.
It also seeks to provide for the functions and administration of the public debt, which is a department that currently exists within the Ministry of Finance.
The Joint Venture Bill seeks to provide for the implementation of joint venture agreements between contracting authorities and counter-parties and to establish a set of rules governing public private- procurement.
During discussions, Cornilious Deredza, a debt management expert in the Ministry of Finance urged caution when borrowing saying the country should not borrow beyond its worth.
“There’s going to be need for consistency from this committee to coordinate and closely monitor if borrowed funds are used for their intended purposes,” he said.
Another ministry official, Marcos Nyaruwanga said innovative financial mechanisms and policy consistency were crucial for the success of Joint Venture Bill.
“Efficient and effective execution from both parties will drive economic development. This can be achieved through drawing on a wider pool of technical expertise, experience, skills, labour and networks.
“Another important ingredient is the respect for value of money. This financial aspect is critical to the sustainability of JV to be a success in this country,” he said.
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