Exorbitant salaries
STATEMENT BY THE PRESIDENT OF THE UNITED PARTY FOR NATIONAL DEVELOPMENT (UPND) PRESIDENT HAKAINDE HICHILEMA AT A PRESS CONFERENCE HELD AT THE PARTY SECRETARIAT ON 7TH AUGUST 2008

THE VICE PRESIDENT,

MEMBERS OF THE NATIONAL EXECUTIVE & MANAGEMENT COMMITTEES PRESENT,

MEMBERS OF PARLIAMENT PRESENT,

MEMBERS OF THE PRESS,

LADIES AND GENTLEMEN,

1. In the last few days, a number of statements have been made with regard to the proposed salary and allowance increments for Cabinet Ministers and other top Government officials.

2 As UPND, we have received this proposed increment with a deep sense of shock and dismay. The proposed increments in our view are scandalous, immoral a disgrace and an indictment disgrace on the part of the MMD on how they have grossly abused public office and resources. In our view, increasing the salary of a lowly paid teacher or nurse by 15% does not justify increasing a salary of an already better paid minister by the same 15% let alone introducing the frivolous responsibility allowance. This is a clear failure to understand the principle of fairness, equity and how a country should redistribute income among its citizens. The correct action is to upgrade the lowly paid to a reasonable level, but not pilling more to those that are already well paid.

3 The proposed increments in our view are totally unacceptable and unjustifiable and can not be supported by whatever stretch of imagination. What is most saddening is that while cabinet continues to drag their feet and refuse to act on many important issues affecting the nation under the pretext that Government has no money, they have found it comforting and convenient at this particular time to approve such hefty salary and allowance increments against the backdrop of many problems that need attention in the nation. Examples of some of these problems are outlined below:

3.1 Recently, students at the University of Zambia (UNZA) demanded for meal allowance increments from K300, 000 (K10, 000 a day) to K600, 000 per month (equivalent to K20, 000 per day.) The meal allowance has not been increased since 2004. The Government responded to the students’ demands with guns, shooting live ammunition and seriously injuring two of them. Ask them why this increment has not been effected to date, it is said that government has no money.
3.2 Only in the last few days the university was closed because Government has refused to effect the increment that is due to the lecturers. As we speak there is nothing concrete known to us that government is doing to redress this situation speedily. Why hasn’t the lecturers’ conditions as agreed been implemented? Government says it has no money. It has no money to pay deserving lecturers but there is plenty to pay ministers.
3.3 Many civil servants in this country today, 44 years after independence, get as little as K900, 000 as take home salary per month which is less than half the current cost of the food basket of an average family size of six which currently stands at K1, 900, 000. It is these lowly paid people that need a substantial salary increase to enable them to afford three meals per day.
3.4 Retirees who have served this country diligently, including men and women in uniform who served in peace missions as far back as 1992 in Mozambique and other countries, have not yet been paid their deserving dues. Many of the retirees do not live to the day when their dues and retirement packages are released – they die. Clearly, such retirement packages have now become a mockery on our senior citizens in the face of these outrageous and hair rising proposed increments.
3.5 The cost of fertilizer now stands at between K210, 000 and K230, 000 per 50 kilograms bag yet this government in its own wisdom has decided to reduce the funding and number of beneficiaries under the fertilizer support programme (FSP) in order to make savings directed at their own pockets and stomachs. What level of political deception and personal aggrandizement is this!
3.6 Not long ago we were all calling for the highly indebted poor countries initiative (HIPC) achievement and mineral royalty increment from 0.6% to 3 %, but little did we know that the first beneficiaries from the resultant increased government revenue would not be the common Zambians and activities such as improvement in roads but those who are already comfortable, those that are already enjoying tax-payers money in a raid like manner.
3.7 When Zambians complain about the rise in fuel prices, the rising cost of communication, the rising cost of food, the MMD ministers can’t understand what Zambians are talking about because they are already getting these things for free.
3.8 At the moment most of the country is on a daily basis faced with load shedding. We now receive electricity on an unpredictable time-table basis, paying higher tariffs and yet those who are in government are thinking only of their own pockets and families.

4 We now want to itemize the proposed increments and resources abuse that this MMD Government is engaged in:

4.1 MINISTERS’ FUEL ALLOWANCE

The fuel allowance for personal to holder motor vehicles for ministers is currently pegged at 600 liters per month. At the current ruling pump price this translates to K4, 800, 000. This is given as cash and the allowance is proposed to go up. In addition, every minister has a utility vehicle with fuel, driver and other maintenance costs borne by the government/ taxpayer.
4.2 VEHICLE SALE

This is a typical case of personalization of government vehicles by ministers out of sheer greed. for example, we have a document that shows that a vehicle was bought for a named minister at K260 million duty free (with duties and other taxes added the open market value would be around K520 million), two years later it was given a book value of K127 million but it was sold to the same minister at around K30 million. Facts indicate that most of the ministers who bought government vehicles at such give away prices have since sold them on open market for more than K200 million, that is, making huge personal profits after cheating Zambian tax payers.

4.3 PRESIDENT & SPEAKERS’ PENSION AND GRATUITY

Let’s continue to show you more excesses of this government. On retirement the president and the speaker are entitled to 80 % of the current pay levels of the incumbents (tax free) in order for society to continue looking after its former Presidents and Speakers. As if this is not enough the MMD Government introduced legislation for the president and speaker to get gratuities while they are serving. This is tantamount to receiving two huge pensions from poor citizens.

4.4 GRATUITY PAYMENTS TO MINISTERS AND OTHERS

At the current pay levels the gratuity payable to ministers and others eligible is already at a very high figure of K600 million per person. With the proposed extravagant pay increments the gratuity is expected to increase to the region of K2 billion per person. So when you add the gratuities of all those that are eligible it works out to a staggering figure of K300 billion or more – these are gratuities only and do not include salaries and other numerous allowances.

4.5 UNUTILIZED FUNDS

From the 2007 budget allocations almost K1 trillion was returned to the treasury as unutilized funds. Here are some specifics:
(a) In the education ministry K219 billion was not utilized and yet there are many schools without enough teachers, books and desks and children continue to sit on the floor;
(b) In health, K134 billion was not utilized when the country has no medicines while doctors and nurses are under paid;
(c) Another example is in the agriculture sector where K53 billion was not spent while small scale farmers had no seed and fertilizer. They were also paid a low producer price, not paid for months on end for the grain sold to the food reserve agency (FRA).
It would appear therefore that these large funds were not spent last year so that ministers could pay themselves these hefty salaries and other allowances.


4.6 RESPONSIBILITY ALLOWANCE

By the way, why should anyone be paid a hefty responsibility allowance for performing their normal duties having been paid a salary for it? This indeed is strange and can only make sense to the MMD, those who seek public office in order to enrich themselves and not to serve the people of Zambia. If you want to make so much money please do not steal from the poor but rather go into private business where you will be required to be enterprising using your own resources.

4.7 PARLIAMENTARY PROCEDURE

And further if cabinet defies the rules of logic and proceed with impunity to take these proposals to parliament for ratification they are deceiving the people of Zambia, we are aware that many benefits the ministers get are never taken to Parliament or made public. These include allowances for telephone, electricity, water and fuel. In 2006, the ministers sold themselves their personal to holder vehicles at far below market values without taking the matter to parliament. Government’s announcement that the new salaries and conditions of service will be debated and determined by parliament is not true. Under the current parliamentary procedure, mps are not allowed to debate on matters affecting them or their conditions of service. The Bill will be passed without debate.

4.8 SUMMARY OF FINANCIAL IRREGULARITIES 2001 - 2005

The Auditor General’s report shows that for the period 2001 – 2005 this MMD government has demonstrated a complete lack of management skills and abilities. Various forms of financial irregularities to the value of k14.7 trillion were reported during this period. This is the same government that claims it has no money to pay lecturers, students, nurses, doctors, teachers, policemen, men and women in uniform and other public service workers.

5 We therefore call upon this government to wake up from their deep sleep arising from
the luxury and comfort they are getting from the poor Zambian tax payers’ money.

6 This MMD Government is simply greedy, irresponsible and incompetent. It is failing to turn the country’s immense resources into tangible value and benefits that would better the lives of ordinary citizens. Insensitive actions like this from the MMD Cabinet is a clear indication of how our country will be run going forward. They should not be surprised as Zambians begin to agitate for change.


I THANK YOU.
 

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