Polymer saga: the truth should be told!
 

2005

By Isabel Chimangeni

There seems to be a great deal of uncertainty over the use of the newly introduced currency technology of polymer bank notes, which has now become the main talking point in many public meetings.

This is largely because issues to do with the Zambian currency, the Kwacha, are very sensitive—maybe on the same plane like the Public Order Act, Constitution review process, the sale of the Zambia National Commercial Bank (ZNCB) and oil procurement. Players in the market will tell you that there are serious undercurrents not visible to the public!

The bulk of the problems over what is now being described as 'the polymer saga' seems to be pointing an accusing finger at the Bank of Zambia (BoZ).

The first signs are that there must have been something wrong in the manner the Central Bank handled the process of issuing polymer notes, which reportedly, have worked well elsewhere.

The second is that it appears both the ministry of Finance and the Central Bank are not telling the nation the truth on what really happened to arrive at a decision to print polymer notes using the Canadian Bank Note Company (CBNC).

During the initial launch of the controversial notes, the nation was told that the idea to introduce the new technology was to help the country save a great deal of money.

Finance Minister Ng’andu Magande and Bank of Zambia Governor Caleb Fundanga told the nation that the polymer notes were durable, not easy to forge because of the unique features and could not easily tear.

This was indeed a good intention that all well-meaning Zambians supported without hesitation because they knew that the benefits on the country’s treasury would be enormous.

However, what was shocking or rather disappointing was that on the day of the launch, the 'durable' notes were tested and revealed shocking results. First, the serial numbering was wrong—making it susceptible to forgery. The other humiliating thing was that the ink was fading off.

The first reaction from the note issuers, the Bank of Zambia, was that the ink used on the polymer substrate was wrong and immediately started withdrawing the notes from circulation replacing them with 'better ones'.

The bank went on to explain that the fading notes would be replaced with new ones with all costs to be borne by the printers.

Now the question is whether the problem of the fading polymer notes should solely be blamed on the printers. Why should someone in the 'corridors of power' not tell Zambians the whole truth on what exactly transpired?

More so that there were very interesting revelations in Parliament on Wednesday this week when Magoye UPND Member of Parliament Andrew Haakaloba moved a motion urging Government to replace the Kwacha polymer notes with durable and quality Kwacha notes.

The House heard that when the issue of polymer notes was introduced to Cabinet in both the previous and current administrations, the idea was rejected.

Former vice-president Enoch Kavindele who is Kabompo West MP (MMD) said the current administration rejected the issue of polymer notes but the Central Bank went ahead and procured the new notes against a Cabinet decision.

Many may argue that Mr Kavindele is known for not telling the truth in Parliament as evidenced from his recent withdrawal of a statement he issued against President Mwanawasa that he gave a contract to his relation to import maize!

But on this one, Government ministers, including incumbent Vice-President Lupando Mwape when winding up the debate on the motion, did not challenge Mr Kavindele’s statement. Hence the former number two man should be given a benefit of doubt.

Mr Kavindele further questioned the motive of using the CBNC to print for Zambia instead of using known printers for the latest currency technology. Zambia should have contracted a printer who was printing currency for the countries where the polymer had worked very well.

Bangweulu independent MP Joseph Kasongo complimented Mr Kavindele’s sentiments and further said that whoever was responsible for what was now being regarded, as a scandal should be made answerable to the Zambian public.

'Who is involved in the scandal, Zambians need to know because this is tantamount to money laundering. This motion is about the credibility of Government, Bank of Zambia and the CBNC,' Mr Kasongo said.

He went on to demand that if the Ministry of Justice was consulted to give advise on the contract, there was need to tell Zambians what really transpired.

Indeed, in the words of Roan MP Cameron Pwele (UNIP), taxpayers’ money was used to print the inferior notes and Zambians have the right to know who is not telling the truth over their dear currency—the Kwacha.

Government may say the problem is being addressed and the inferior quality polymer will soon be replaced with the quality polymer by the close of this month.

But that does not discard the necessity of telling Zambians the truth on who is responsible for whatever exactly went wrong!

Finance Deputy Minister Mbita Chitala argued, 'There is an extreme war going on among currency printers and Zambia should not be used to fight their war.'

Mr Chitala would have done Zambians a great favour if he had stated that it was actually the CBNC that was printing the polymer notes for the countries where the technology was working well. And probably just say the trick could not work in Zambia due to a few chemical problems—surely that would have turned the blame on the printers.

Perhaps this could have shown that it was a genuine mistake and not an experiment, which has proved costly both to the Government and the printers, CBNC.

To many people, such ambiguous phrasing only serves to feed the speculative inclinations of critics who may discern in them mountains of difficulties where there are more hills of benefits.

To remove any room for speculation and wild second-guessing on such important issues, somebody from the corridors of power should quickly tell the nation on just who is responsible for the polymer notes saga.