M’MEMBE CHALLENGES 2026 BUDGET, QUESTIONS ACCOUNTABILITY AND LEAKAGES
Lusaka… Tuesday September 30, 2025 – Socialist Party (SP) leader Dr. Fred M’membe has raised concerns over Zambia’s 2026 National Budget, questioning the government’s commitment to transparency, accountability, and protection of public resources.
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Dr. M’membe said civil society and Financial Intelligence Centre (FIC) reports had shown that Zambia loses up to $3.5 billion annually through illicit mining, mis-invoicing, and financial leakages.
He wondered why the 2026 Budget failed to outline clear mechanisms for recovering these funds or preventing future losses, noting that the amount was equivalent to 42 percent of the 2025 Budget and could fully fund education, health, and social protection..
He also questioned the government’s decision to allow mining firms to collect a $1 billion advance payment for future gold sales without securing advance royalties, taxes, or an escrow account.
According to him, this left Zambia exposed in the event of company sales or bankruptcies.
Referring to the suspension of taxes on copper concentrate worth about $217 million, Dr. M’membe observed that the move coincided with delays in civil servants’ salaries.
He asked how the government could speak of “discipline” while granting tax holidays that weakened the Treasury and disadvantaged workers.
The opposition leader further highlighted the Ministry of Health’s write-off of K129 million in expired drugs, questioning what procurement reforms and accountability measures had been included in the 2026 Budget to prevent similar waste.
On the reported $80 million mistaken payment by ZESCO to a Chinese company, he demanded clarity on whether the money had been recovered and who, if anyone, had been disciplined over the incident.
Dr. M’membe also expressed concern that over 90 percent of Zambia’s copper exports were fueling the profits of First Quantum Minerals.
He argued that the 2026 Budget should have included transparent reporting of mining companies’ declared earnings compared to the taxes they paid locally.
While acknowledging the government’s stated success in raising domestic revenue to 22–23 percent of GDP, he asked what benefit higher taxes brought if billions continued to leak through corruption, illicit flows, and secretive contracts.
He pointed out that K92.6 billion (36.6 percent of the budget) was being consumed by debt servicing, yet no parallel recovery plan was proposed to claw back stolen or leaked funds.
Instead, he argued, citizens were being taxed more heavily while social spending was cut to cover debt obligations.
On agriculture, Dr. M’membe noted that the allocation of K9.2 billion to the Farmer Input Support Programme was described as “record-breaking,” but questioned what guarantees existed that it would not repeat past failures, including late delivery of inputs, poor targeting, and political interference.
Finally, he challenged the government’s claim that the 2026 Budget was the “most credible.”
He asked whether quarterly disbursement reports, procurement contracts, and mining royalty receipts would be opened to the public and civil society to allow independent verification of performance.
Meanwhile, Dr. M’membe emphasized that without addressing these issues, Zambia risked mobilizing more revenue only to lose it through the same systemic leakages and governance weaknesses.
The analysis seems little to do with the budget, and more to do with having to make apolitical point, to me as a layman.
Fred + M’membe= chikala cha wiso