MHANGO BLASTS MUSAPE, MWALIMU OVER DEBT RELIEF PROPOSAL
….Says Critics of Debt Swap Have Lost Moral Authority
By Peter Sitolo
CITIZEN First Spokesperson and Presidential Campaign Manager Stanley Mhango has blasted Wilfred Musape and Mwalimu Patrick, accusing them of hypocrisy for advocating debt restructuring for public service workers after allegedly supporting the cancellation of a debt relief framework that had already been developed and tested.
In a statement issued today, Mr. Mhango said Musape and his colleagues have “no moral standing” to lecture the nation on debt relief after publicly condemning the Debt Swap Concept introduced during the previous administration.
The former Teaching Service Commission (TSC) Chairman argued that the debt swap framework was not a political initiative but a carefully crafted technical solution developed through collaboration between key government institutions, trade unions, and participating microfinance institutions.
According to Mr. Mhango, the debt swap initiative was designed through consultations involving the Teaching Service Commission, Civil Service Commission, Public Service Management Division, Accountant General’s office, trade unions representing civil servants, and participating microfinance lenders.
He explained that the model sought to ease the financial burden on public service workers through loan consolidation, extended repayment periods, reduced monthly deductions, and compliance with Bank of Zambia debt service ratio regulations.
“This was not about cancelling debt,” Mr.Mhango stated, adding that: “It was about restructuring obligations in a way that protected workers while ensuring lenders continued receiving repayments.”
Mr. Mhango revealed that before the proposed nationwide rollout, a three-month pilot program was conducted and produced encouraging results.
He said participating workers experienced increased disposable income and reduced loan defaults, while lending institutions continued to recover their funds under revised repayment arrangements.
“The success of the pilot was evident,” he said. “In fact, there were plans to extend the program to include officers under the Police Service Commission because they faced similar debt challenges.”
Mr. Mhango claimed that the debt swap agreement, which had already been signed between government and labour unions, was cancelled following the change of government in 2021.
He alleged that individuals now advocating debt restructuring were among those who either supported or remained silent during the cancellation of the original framework.
“Those who dismissed the debt swap mechanism five years ago cannot now return with the same proposal under a different name and expect public confidence,” he said.
Mr. Mhhango argued that political considerations had overridden technical solutions designed to improve the welfare of public service workers.
Reaffirming the position of Citizens First and its leader, president Harry Kalaba, Mr. Mhango said the party believes public service workers deserve financial stability and dignity.
He urged the government to revisit the debt swap framework rather than introduce new proposals that mirror what had already been developed and tested.
“If government is serious about addressing the non-performing loan crisis affecting public service workers, the starting point is to implement the debt swap framework that was already negotiated, piloted, and proven to work,” he said.
Mr. Mhango concluded by accusing political actors of using workers’ welfare as a battleground for partisan interests while public servants continue to struggle under mounting debt burdens.
“Civil servants have suffered enough while politicians play games with their welfare,” he said.
He added: “Zambia needs leadership that protects workers rather than cancelling solutions and later pretending to discover the same problems.”
The remarks come amid growing national debate on the rising debt burden among public service workers and calls for sustainable measures to address loan distress and improve financial well-being across the public sector.
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