Zambia ministers lose pay rise

By Penny Dale
BBC, Lusaka, Zambia

Mr Mwanawasa has been receiving $700 a month

The new vice-president of Zambia, Dr Nevers Mumba, has announced that the cabinet has agreed to cut back their salaries by 30%.

The unprecedented move comes just months after they were awarded a 30% rise and is an attempt by President Levy Mwanawasa to keep the economy afloat at a time when the country's wage bill has spiralled out of control.

Dr Mumba told journalists at a press conference on Thursday that the government has done this to show leadership in the management of the nation's resources, and ensure the sustainability of the economic programmes.

The government is hoping to score political points with a public that complains constantly about fat-cat politicians and their hefty salaries and allowances.

Debt relief

But the move is also designed to keep the economy out of trouble as Zambia enters the final phase of wiping out half of its external debt under the World Bank's Highly Indebted Poor Countries (HIPC) programme.

At stake is about $3.5 billion in debt relief in line for Zambia if the government shows that it has sustained economic reform, including reducing the wage bill, for 12 months by the deadline of December.

But, according to the vice president, the government is not doing this just to satisfy the World Bank and the International Monetary Fund.

The deeply religious Dr Mumba said that the belt-tightening operation is also about morality.

Skimpy resources

He explained that the time has come for the government to look at whether it is spending its skimpy resources in the best way.

Dr Mumba says the pay cut is a moral obligation

Over the next few weeks, other government officials will also be asked to give up some of their monthly pay as the government tries to reduce the rising budget deficit.

The vice-president said he has already held constructive talks with union leaders, at which he briefed them on the state of affairs.

So after a 30% increase earlier this year, from 1 July the cabinet will be back to square one, with the president earning $700 a month.