Government Releases K30 Million For Retirees

The government has released K30 million for retired employees of TAZARA, ZAMTEL and the former Railway Systems of Zambia.

Treasury secretary Fredson Yamba said the disbursement was in line with the government’s ongoing plans to clear its domestic debts. 

In a statement yesterday, Mr Yamba said the K30 million would cover the settlement of terminal benefits to former employees, some of whom have mounted legal challenges over the withheld pensions. 

He added that the Ministry of Finance would award special consideration to vulnerable beneficiaries such as orphans and widows. 

“The Ministry of Finance is is cognisant of the tight liquidity conditions that continue to impact on businesses and households in our country,” he said. 

Mr Yamba explained that the treasury was facing some difficulties at the moment, owing to decreased tax revenue as a result of Covid-19 and the consequent economic slow down. However, he assured Zambians that the government remained committed to clearing its debts, implementing fiscal consolidation measures, and using the country’s resources efficiently.

He went on to announce that the government has commenced with acquiring a Covid-19 bond.

The measure was approved by cabinet on Monday, he said, and K5.2 billion has so far been made available through the Bank of Zambia. 

“Some of the funds to be raised from the COVID-19 bond will be used to pay-off the retirees and those on the separatees payroll who have been waiting for their benefits for a long time. To help address outstanding domestic arrears, part of the resources from the bond will also be used to pay local contractors, and suppliers of goods and services,” he explained. 

The bond will also be made available to support small and medium-sized enterprises that were not able to benefit from the government K10 billion re-financing facility made available through commercial banks. 

Treasury Secretary Fredson Yamba