The Department of Statutory Corporations has issued an immediate blanket suspension of all recruitment and major procurements across all parastatal organisations and State-Owned Enterprises (SOEs).
The freeze, effective from October 7 2025, follows the recent dissolution of the boards governing these entities and is claimed to be aimed at preventing irregularities during the governance vacuum.
In a letter dated October 10, the department’s director of administration, Mayeso Kazombo, advised all corporation heads to halt the processes immediately. The letter stated: “Following the dissolution of boards of all Parastatal Organisations and State Owned Enterprises (SOEs) with effect from 7th October 2025, I wish to advise that all ongoing and planned recruitments, as well as major procurements, should be suspended until new boards have been duly constituted.”
Chief Secretary Justin Saidi confirmed the rationale behind the sudden directive, stating in a telephone interview yesterday government suspended the actions after establishing that illegal recruitment and backdated contracts took place during the eight-day transition period following the change of administration.
“We have received reports of such activities and will dispatch officers to these institutions to confirm that no illegal recruitment or signing of contracts occurred during this period,” Saidi explained, adding that a full investigation is necessary to ensure public funds are properly accounted for.
The suspension comes at a critical time for the new administration, which is grappling with a worsening fiscal situation; public debt currently hovers at K13.1 trillion.
The directive has drawn mixed reactions from governance experts, with some backing it as a necessary political and fiscal measure, while others describe it as an overbroad decision that could cripple critical institutional operations.
Corporate governance expert Anthony Mukumbwa argued the suspension is justified, allowing the new administration to align parastatals with its incoming policies. He noted that key public positions are often filled through political patronage.
“We are all aware that key public positions are unfortunately always filled on patronage. It is assumed that key positions are currently filled by [sympathisers of the previous party]… Uncontrolled recruitment would compromise the implementation of ruling party policies,” he stated. Mukumbwa added that major procurements must also be stopped until they align with the new administration’s strategic plan.
But executive director of Youth and Society (YAS), Charles Kajoloweka dismissed the premise of the decision as a “lazy excuse.”
“They created this unnecessary oversight vacuum by dissolving the boards without immediate replacement. The best practice is to immediately replace boards upon dissolution to ensure the continuance of government business,” Kajoloweka argued.
He warned that the sweeping suspension could affect critical institutions procuring essential services and could jeopardise donor-funded projects with strict compliance deadlines.
Meanwhile, Willy Kambwandira, executive director for the Centre for Social Accountability and Transparency (Csat), supported the measure, calling it an “inevitable move” to protect public funds given the severe fiscal distress.
“Government needs to restore fiscal discipline. However, the effectiveness of these measures will depend on how transparently they are implemented,” he cautioned.
This swift control of spending mirrors the actions of the previous administration, which also suspended hiring and board appointments shortly after taking office in June 2020.
