Government Denies Fuel Procurement and Increased Debt Claims
By Ruth Chayinda
The government has refuted assertions that it procured fuel and increased the national debt.
Energy Minister Makazo Chikote says the UPND Government has not procured any fuel since assuming office in 2021.
Mr. Chikote explains that after a policy shift in 2022, the government left the role of procuring fuel to the private sector, led by respective Oil Marketing Companies (OMCs).
He states that the policy shift was influenced by the unsustainable debt accrued and left by the previous administration, the Patriotic Front, in 2021.
Mr. Chikote reveals that upon assuming office, the New Dawn government found a debt of $478 million in unpaid fuel supply to various vendors.
He notes that due to the lack of clear contractual penalties, the debt continued to accrue.
The Minister says the principal fuel debt was $360 million, with interest accrued over the years amounting to $375 million.
He adds that the government has been paying substantial amounts towards liquidating the debt and has negotiated for the capping of the debt to prevent further interest from accruing.
