Press Release No. 15/02: IMF Executive Board Completes First PSI Review for Tanzania

January 7, 2015

The Executive Board of the International Monetary Fund completed today the first review of Tanzania’s economic performance under the program supported by the Policy Support Instrument (PSI)1 and granted a waiver for the non-observance of the continuous assessment criterion on the non-accumulation of external arrears.

The PSI for Tanzania was approved by the Executive Board on July 16, 2014 (see Press Release No. 14/350). Tanzania’s program under the PSI supports the authorities’ medium-term objectives. These include: the maintenance of macroeconomic stability, the preservation of debt sustainability, and the promotion of more equitable growth and job creation.

Following the Board discussion, Mr. Min Zhu, Deputy Managing Director and Acting Chair, made the following statement:

“Macroeconomic developments in Tanzania remain favorable. Economic growth was strong during the first half of 2014 and is expected to remain close to 7 percent. Inflation remains in mid-single digits, consistent with the authorities’ target of 5 percent by June 2015.“

Performance under the Policy Support Instrument was satisfactory through June, but has deteriorated since and risks have risen, stemming from delays in disbursements of donor assistance and external nonconcessional borrowing, and shortfalls in domestic revenues. Against this backdrop, the authorities’ commitment to keep the program on track is welcome, and they have reaffirmed their intention to meet the budget deficit target and will review revenues and adjust expenditures accordingly in the context of the mid-year budget review. It will be critical to the business environment to address the governance issues raised by the IPTL case, which would also unlock donor assistance.

“It will be important to strengthen the coordination between fiscal and monetary policies. The conversion of monetary policy instruments to financing papers facilitated the front-loading of capital expenditures but complicated monetary policy implementation. It will be more effective and less disruptive to accommodate the planned expenditure through better planning to align spending and financing.“

“The issue of domestic arrears, which continued to accumulate, needs to be addressed comprehensively and forcefully. Work to verify and eventually clear arrears to suppliers already incurred is ongoing. The authorities’ plan to prevent future arrears accumulation is appropriately ambitious and will require sustained implementation. Addressing arrears to pension funds and making government relations with them more transparent is also critical to their sustainability.”


1 The PSI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PSI helps countries design effective economic programs that, once approved by the IMF’s Executive Board, signal to donors, multilateral development banks, and markets the Fund’s endorsement of a member’s policies (seehttp://www.imf.org/external/np/exr/facts/psi.htm). Details on Tanzania’s PSI program are available at www.imf.org/tanzania.

AMISOM Re-evaluates Priorities at Kampala Meeting (7. January 2015)

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Press Release: SAMWU Disappointed by the Enactment of the Public Administration Management Act

 

 07 January 2015

The South African Municipal Workers’ Union (SAMWU) is disappointed by the enactment of the Public Administration Management Act by President Jacob Zuma in December 2014. Although SAMWU agrees with some of the content of the legislation, we however view the Act as unconstitutional and will definitely erode the gains that organised labour has made through collective bargaining as envisaged by the Labour Relations Act.

The Act seeks to among other things, to promote high standards of professional ethics in public administration, to promote efficient service delivery and to facilitate the eradication and prevention of unethical practices in the public administration. All this is to be achieved by putting in place basic values and principles which would govern public administration. The Act further seeks to develop capacity for officials, we hope that Chapter 4 of the Act will be used as a tool to empower and develop the lowest paid workers particularly municipal workers some of whom are paid as little as R50/day. 

SAMWU has and continues to be proponents of ethical and transparent government especially in our sector- local government. We hope that the enforcement of the Act will trickle down to all spheres of government starting with national government. We are however of the view that National Government should set a precedent of dealing with state resources. As such, we are concerned by the enforcement of this Act. Although the Act provides for the creation of an Integrity Unit which will be responsible for the enforcement of this Act, there seems to be no willingness by the state to put in place monitoring mechanisms of other legislation in the country. Certain legislations are in place such as the Ministerial Handbook, however we still have incidences where one man buys a R1 million BMW at the state’s cost while another spends R5 million on luxury vehicles in a single year, this being done while the Ministerial Handbook stipulates that these people may only purchase vehicles not exceeding 70% of their annual salaries.

The signing of this Act is but a realisation of most arguments that SAMWU has advanced for a long time. The Act requires officials seeking employment or already employed in the public administration to disclose their financial interests including that of their spouses for any shares, sponsorships, benefits and immovable property. Failure to make such disclosure by an employee would constitute misconduct. The Act further makes it illegal for any public administration official to do business with the state. SAMWU has and continues to be of the view that no official should be do business with the state as this plays a role in corrupting officials. 

We are however concerned that the Act only targets officials not acknowledging that in any corrupt relationship there is a corruptee and a corruptor. In the interest of Public Administration Management, the Act should be extended to political office bearers. Truth of the matter is that politicians are responsible for most of the corruption witnessed in government, they are in pole position to influence the direction that government business goes, history has taught us that this is how many politicians have managed to enrich themselves. The country needs an act that is cut across and is inclusive of everyone who is involved in the supply chain and procurements that all spheres undertake, including political office bearers. 

The 2012/2013 Auditor General’s report into Municipalities has shown that most municipalities received the audit outcomes they received as a result of contracts being awarded to companies which officials had interests in. One cannot measure the prevalence of the problem but clearly doing business with the state has become profitable for some individuals. For the state to enjoy sound and healthy finances especially in local government, there should be an overhaul of the manner in which municipalities conduct their business, local government should re-municipalise. The provisions of municipal services though contracts and tenders has neither been in the interest of service delivery nor kind to the public purse, if anything we have only seen privatisation of municipal services and the emergence of tenderpreneurs who charge municipalities ridiculous amounts compared to the costs that municipalities would have incurred if they were rendering such services on their own. 

Overall our view is that this Act is unconstitutional on the basis of its selectivity between political office bearers & public servants. Furthermore the Act seeks to give power to integrity unit to preside over disciplinary matters. The Basic Conditions of Employment Act is clear that such matters are subject to negotiations at bargaining councils. The laws of this country must apply to all equally and there no reason why politicians should receive preferential treatment. We should note that the LRA takes precedence over any labour matters, the LRA further gives a platform for the establishment of bargaining councils and the Act undermines their existence. Our fear is that by virtue of secondments, those who refuse the secondment may be victimised or even worse dismissed for refusing to move to another sphere of government.  

The act further undermines the recruitment and selections policies that already exist in all spheres of governments. We are further concerned that the Act may be used to lure skilled personnel from local government to other spheres of government. SAMWU has long maintained that there should be devolution of powers, that certain functions performed by provincial government should be returned and / or handed over to local government as they are primary functions of municipalities. Provincial government tend to attract skilled personnel who are at the end of the day not uterlised to the best of their abilities by provincial government whereas they can service communities better if they were employed by local government.

Statement by Walter Theledi, General Secretary 

Issued by SAMWU Head Office

Papikie Mohale

National Media Officer

South African Municipal Workers’ Union

84 Fredericks Street

Johannesburg

2001

M: 0604166661

T: 0111002615

E: Papikie@samwu.org.za

Memo 15/3046: EC – Lithuanians are getting used to Euro Cash

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Press Release: UNDP and Zambian Government sign multi-donor support for the 2015 presidential by-election

05 Jan 2015

Lusaka  –  The Ministry of Finance, Electoral Commission of Zambia, and the United Nations Development Programme (UNDP) on behalf of Ireland, Japan, Sweden, the United Kingdom, and the United States of America have entered into a cooperative agreement to support the 2015 Presidential Election to be held on 20 January, 2015 with a total sum of USD3.09 million.

UNDP will co-ordinate direct electoral support to the Electoral Commission of Zambia (ECZ) on behalf of the cooperating partners with respective support levels of: Ireland – $62,000; Japan – $642,000; Sweden – $600,000; United Kingdom – $940,000; United States of America – $450,000 and UNDP – $400,000.

The Programme will focus on four components of credible elections: well informed voters and broad understanding of the electoral process, availability of key electoral information materials such as the Electoral Act, the Electoral Code of Conduct, Pocket books for Police on policing elections prior to and on polling day and that alternative dispute resolution mechanisms are in place to handle disputes prior to or after election day.

The project document signed with the Government of the Republic of Zambia on 11 December, 2014 is a positive development towards enhancing democratic governance which is identified as one of the priority reforms in the Revised Sixth National Development Plan 2011-2016 (R-SNDP). The consolidated support is intended to contribute to free, fair and peaceful elections in Zambia. The support will strengthen the institutions that deliver successful elections and increase citizen participation in national processes.

Commenting on the support garnered for the electoral process, UN Resident Coordinator and UNDP Resident Representative, Ms Janet Rogan stated that “Zambia’s electoral process has matured over the years and it is essential that the country continues to hold free, fair and peaceful elections that are of top quality.”

“Democratic principles are founded on strong institutions and the ability of citizens to participate and demand transparent and accountable national processes,” Ms Rogan added.

All partners hope that Zambia continues to enhance its electoral process and provide for equal participation for all citizens in the process.

Letter to Museveni – Re: Resignation as Senior Presidential Adviser – HAJ (5th January 2015)

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ADM 7/168/01 Re – Land for the Sugar Project in Amuru District (11th December 2014, Uganda)

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Statement/15/2920 – 02.01.2015: Comissioner Dimitris Avramopoulos on the smuggling of migrants in cargo ships

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Government of India – Press Release (New Delhi, 02.01.2015): Coast Guard intercepts suspects boat carrying explosives in Arabian Sea

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UN Iraq Press Release: UN Casualty Figures for December; 2014 deadliest since 2008 in Iraq

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