Lusaka — SECRETARY to the Treasury Situmbeko Musokotwane has expressed fear that the decision of the G8 to grant poor countries total debt cancellation may be derailed by conditionalities.

The fear comes in the wake of some European countries apparently having second thoughts about proposals for debt-relief and giving new conditionalities for proposals that formed part of the help world leaders offered to Africa a fortnight ago.

Addressing Zambian heads of foreign missions on Monday, Situmbeko said the lobby for the implementation of the G8 decision had just started.

"The implementation plan of the G8 must be drawn up by technical people like the IMF (International Monetary Fund), World Bank and African Development Bank and this is where trouble starts. When HIPC was mooted it was all good, but when it went to the technicians they started asking all sorts of questions: How do we implement this? Do we just give these people free debt-relief? And that is where conditionalities emerged," Situmbeko said.

"It is out of these conditionalities that HIPC dragged on and on to get where we are."

Musokotwane said the government had started receiving reports that some countries were pressing G8 countries to impose a lot of conditionalities because debt relief could not be given freely.

"If we are not careful, the G8 decision will come with a lot of conditions and it may end up dragging like the HIPC did. So the work of lobbying starts now," he said.

If the G8 decision is implemented, Zambia could win a substantial debt relief that would only leave her with a paltry multilateral debt of US$500,000, and domestic debt of US$1 billion, as opposed to a staggering US$7.1 billion before the HIPC and G8 initiatives.

Musokotwane said it might also be possible that the G8 would grant debt relief on one hand and reduce bilateral aid on the other.

He said if this situation were allowed, it would amount to nothing.

"For the G8 decision to be effective, yes the G8 decision may stand, but the aid must remain where it is or increase," he said.

Musokotwane said while several countries had indicated that they would increase aid to Africa, what they had made were high level decisions which should be followed up by extensive lobbying "because these bureaucrats will come up with all sorts of conditions; before you realise, it has happened".

He said poor countries might not be able to eliminate conditionalities, but that they may only relieve some of them.

"Already we have heard about the US saying their assistance will only go to countries where there is good governance. So if we are to succeed in this promise of bigger aid, we have a role to play ourselves," he said.

Musokotwane said Zambia had to ensure good governance, perceived or real.