Tag Archives: John Kapito

Business, Malawi

“Malawi’s commercial banks turned into robbery houses”-CAMA’s Kapito

Maravi Post Reporter

BLANTYRE-(MaraviPost)-The country’s fearless consumers rights body, Consumers Association of Malawi (CAMA) has joined the bandwagon of accusing commercial banks for milking citizens hard earned money through unjustifiable taxes put on services offered to customers.

CAMA’s outburst comes barely a few days after Banks Association of Malawi (BAM) announced that effective November 1, 2021, Value Added Tax (VAT) of 16.5% will be introduced to customers.

The development that angered general public and Malawi Revenue Authority (MRA) arguing that the 16.5% VAT introduction was not justifiable and unacceptable.

Eventually, CAMA over the weekend issued the statement accusing banks of day light robbery on Malawians.

The consumers body Executive director John Kapito observes that commercial banks have turned into robbery houses that needed to be tamed.


“The Banks have introduced VAT on most of their services this will have a huge negative cost on Consumers deposits as they will be required to pay various high transaction charges and other bank charges.

We are aware that most of the Banks recently increased their transaction charges and bank service charges and we assumed the VAT transaction charges were part of those increased bank charges therefore, the reintroduction of new
transaction charges in the name of VAT is unacceptable and unjustifiable”, reads in part CAMA statement issued on Saturday, October 30, 2021.

It added, ” Consumers have complained consistently over time regarding the high bank charges and a number transaction costs and this has had an effect on financial inclusion as most of the Consumers started to close their bank accounts and currently the number of Malawian Consumers with bank accounts are still low because of these unnecessary bank charges.

These high bank charges and transaction costs have affected the Financial Literacy Program which was centered on educating Consumers on benefits of saving money with the banks”.

Kapito bites, “Consumers were continuously informed on how unsafe it was to keep money within their homes and that saving money with the Bank has long term benefits, it is now surprising that the very same thief that Consumers were taught to run away from and warned against is now operating within the Banks and where Consumers deposits and savings will be stolen through high bank charges and transaction costs in the name of VAT.

“This is a threat to financial inclusion program and our appeal to Consumers is to immediately consider withdrawing their money from the Banks and keep the money safe in their homes, with the current situation it is dangerous for anybody to assume that there will be safety of your money at the Bank with the new thief that has now become part of
the Bank. Consumers will only wake up one day and only to find that their money in the bank has been wiped-out”.

President Lazarus Chakwera’s Tonse government is yet to respond on matter as the law was introduced in Malawi Parliament under his watch.


Business, Malawi

Malawi consumers body dares Chakwera’s Tonse on prudent expenditure amid fuel price rise

Maravi Post Reporter
Chakwera and Chilima (from right)

By Dorica Mtenje

LILONGWE-(MaraviPost)-Malawi President Lazarus Chakwera’s Tonse administration has been challenged to use taxes payers money with intended purposes amid social-economic ills.

The call comes following the recent increased prices of fuel by an average of 25%.

Therefore Consumer Association of Malawi (CAMA) wants government to put in place measures that will in the long run reduces fuel prices.

In a statement signed by CAMA, Executive Director John Kapito said the fuel prices have a negative impact on consumers’ cost of living as prices of essential goods

The consumers body observes that with fuel price rise services will drastically go up .

CAMA says consumers find fuel price increases is unavoidable due to factors including high fuel import prices and the depreciation of the Malawi kwacha.

Kapito said government needs to share the burden of high cost of a living with consumers as a result of the fuel price increases that includes reducing their high and obscene fuel allowances.

“Government should reduce allowances for the Executive, Senior Government Officials, Judiciary and Parliament as this is the only way government can demonstrate that it is sharing the burden of the high fuel prices and its impact on ordinary poor Malawians,” said Kapito.

He added that President Chakwera, his vice and the entire cabinet to cut down on their unnecessary travels both within and outside Malawi, sharing the burden or the high cost of living must be demonstrated by action and not words.

Kapito said “if these are true examples of servant leadership they must demonstrate as promised by the President during his campaigns”.

Chakwera is being accused of petty local and international trips which are costing tax payers money heavily in millions of kwachas.

Business, Lifestyle, Top News

Failed Canaan? Consumers rights body predicts doom for Malawians amid goods’ prices skyrocketing

Maravi Post Reporter 1 Comment

Chakwera and Chilima sharing notes amid social-economic ills

By Dorica Mtenje

LILONGWE-(MaraviPost)-The Consumers Association of Malawi (CAMA) is predict hard time for locals amid skyrocketing of basic items.

The consumer right body observes that as a result of the weak or depreciation of the kwacha, the speculated high prices of petroleum and Electricity and the scarcity of certain goods as a result of Covid-19 continues to have an impact on prices of basic goods and services.

CAMA Executive Director John Kapito in press statement made available to The Maravi Post on September 20, 2021 observes huge price increases on the market on a number of basic goods and services and as a result consumers are unable to access or buy most of these basic goods and services.

Kapito said the most affected are those consumers with low incomes and those in rural areas as well as those that
have lost their jobs due to Covid-19.

“These factors have made the cost of living to be too high for the ordinary Malawian, it is therefore important and advisable to all consumers especially those with low incomes and the unemployed to ensure that they exercise maximum care when they are purchasing goods and services,” said Kapito.

Kapito said time has come for Malawians to budget before they buy any goods and services and consumers should be very careful and avoid unnecessary promotions and advertisements, consumers should avoid buying unnecessary luxuries.

He however warned consumers to refrain from undertaking not budgeted or unnecessary trips and avoid borrowing money from loan sharks (Katapila) including Commercial Banks whose bank interests would trigger increases on the cost of the goods and services.

Kapito observes that consumers must only buy goods and services that are within their means of income.

He said the current economic outlook continues to be unstable and unpredictable for consumers as the economy is faced with serious challenges.

Kapito therefore appealed; “It is our right as consumers to have access of basic goods but is it also our responsibility to ensure that we live within our means”.

President Lazarus Chakwera’s Tonse administration is failing contain inflation since he came into power that has led to rising cost of basic items including fuel, electricity, water, cooking oil and among other.

Lifestyle

Malawi’s consumers rights body on Chakwera’s head over lean cabinet, reshuffle

Maravi Post Reporter 1 Comment

BLANTYRE-(MaraviPost)-Pressure continues to mount on President Lazarus Chakwera to trim his Cabinet with the Consumers Association of Malawi (Cama) adding its voice,  saying lack of leadership in some ministries justifies the calls.

In a statement on Friday, August 27, 2021made available to The Maravi Post Cama executive director John Kapito said the perceived lack of leadership has contributed to poor service delivery which leaves no option for the President than to reshuffle and trim his Cabinet.

“[Some of] the current Cabinet ministers seem clueless and ignorant about their roles where some ministers have simply turned their offices as vending places for their own businesses.

“Most of the ministers are shamelessly incompetent and not worth serving this struggling government whose economy is upside down.” In the statement in part.

Cama therefore proposed to meet some of the ministries they observed as not performing, including Chakwera himself, to discuss recommendations on how public service delivery can be improved.

But while acknowledging that Chakwera granted Cama an audience where they proposed their various recommendations, the statement states that there has been no feedback from the concerned ministries on the proposal to meet.

The statement said the President should be compelled to have a Cabinet of individuals that should help him bring sanity and confidence in his administration.

“Our call as consumers is to ensure that the team he [Chakwera] appoints is the team that is capable of implementing our shared vision of improving the livelihoods of Malawi,” further reads the statement.

Cama observes that while Chakwera may have good intentions, he would be unable to achieve set goals with the current crop of ministers.

But Minister of Information Gospel Kazako, who is the official government spokesperson told the Nation Newspaper that he could not comment on anything to do with Cabinet structuring.

“This is a Cabinet issue and it is only the President who has authority over it. I can’t, therefore, comment or say on anything on how the Cabinet should be instituted as doing so would be overlapping and over stretching my responsibility as government spokesperson a n d Minister of Information.”

Cama’s follows a similar appeal by the quasi-religious group Public Affairs Committee (PAC) which, during a closed-door meeting with Chakwera at Kamuzu Palace in Lilongwe last Wednesday, asked the President to keep his promise of a lean Cabinet of less than 20 members.  PAC said the lean Cabinet was Chakwera’s own promise to the organisation prior to the nullified May 21 2019 Presidential Election; hence, they were simply making a gentle reminder.

In a statement after last week’s meeting, PAC said it also asked the President to clear the perception that appointments to various public offices are based on blood relations.

While acknowledging that the first Cabinet size was meant to reach out to all Tonse Alliance partners, PAC said time had come for the President to appoint a lean Cabinet in line with the size of the economy.

In the run-up to the 2019 elections, PAC met presidential candidates and each one of them made some commitments.

Chakwera who was Malawi Congress Party (MCP) torchbearer, made 19 promises which included a lean Cabinet of between 14 and 19 members.

However, upon assuming power as candidate of the nine political-party Tonse Alliance in the June 23 2020 Fresh Presidential Election, Chakwera hired a 32-member Cabinet which also fell short of the 40:60 gender representation.

In reaction to critics who faulted the Cabinet composition in July 2020, Chakwera pledged to review it based on performance after six months.

However, to date, the President is yet to revise the Cabinet which currently has five vacancies created by deaths of two ministers and the removal of two others as well as the Attorney General.

Business, Environment

World Consumers Day: CAMA for plastic pollution control

Maravi Post Reporter
insubordinate Chinese thin plastic manufacture premises

By Thandie Chadzandiyani

LILONGWE-(MaraviPost)-Malawi continues to face a high risk of plastic pollution crisis and although plastic is a highly useful material in everyday life, the consumption and production of plastics have become unsustainable and this is going from bad to worse.

March 15, being the world consumers day, this year consumers have been urged to concentrate on tackling plastic pollution.

Malawians is one of the developing nations producing more waste per capital than their sub-saharan counterparts resulting in environmental degradation.

“Now is a critical time highlighting, addressing and tracking plastic pollution as the global COVID-19 pandemic adds to the rise of single use of plastics including face masks, gloves and food packaging” explained the Executive Director John Kapito in a press statement made available to The Maravi Post.

“But we have put some ways of tackling plastic pollution in our country to reduce the urban flooding in our cities as plastic are clogging most water ways,” he added.

CAMA appeal comes amid Malawi government enforcing thin plastic ban.

75 000 tonnes of plastic is produced in Malawi each year, of which 80% is single-used plastic that cannot be recycled, most of these plastic take 1000 years to decompose hence affecting the climate change as the block waterholes in the soil.

However in Malawi most livelihoods are linked to the fisheries of Lake Malawi and other floods wetlands this is a particular concern plastic pollution result in loss of marine life as this has a serious consequences for fishery stock and production.

World Consumers Day spreading awareness about consumers rights and needs have seen it in their interest to join together and spread the awareness of the dangers of continuous using of plastics without being recycled and how people can control this catastrophe.

Plastic manufacturing and after-use incineration generate greenhouse gas emission that contribute to climate change.

Malawi

Mzuzu residents bemoan power outage on Christmas day

Richard Kayenda
Mzuzu residents bemoan power outage on Christmas day

Mzuzu-(MaraviPost)—Residents in the Northern Region City of Mzuzu have bemoaned day long black out in the city and almost the whole region on the Christmas day.

The day which fell on Friday started on a promising note in terms of electricity but alas! At around 7 o’clock in the morning load shedding showed its ugly face and it persisted almost throughout the day.

A snapshot survey which Maravi Post conducted in some townships of the city revealed that most residents were angry and disappointed with Electricity Supply Corporation of Malawi (Escom) for not providing them with power on a day they had to celebrate the birth of Jesus Christ.

One Tuntufye Ng’ambi who stays in Chimaliro Township said it was disturbing to see that there was no power on Christmas day.

“Imagine I went to church with hope that I would dance to songs sung by our praise team using sound equipment; only to be informed that they would not be able to play the equipment because of power failure. Government has to do something serious about this situation as per their promises during the campaign period,” ranted Ng’ambi.

Her sentiments were echoed by Chimwemwe Zulu, a Chibavi Township resident who said on Christmas day, he enjoys watching Christian films; especially those that chronicle the birth of Jesus Christ, but he would not be able to do so as there was load shedding throughout the day and the region.

 Zulu expressed: “You see, on a day like this one, most us like to just stay at home and enjoy ourselves by watching firms of Jesus Christ, but now, there is no power since morning and we have no idea what time it will come back. This is very unfair.

“ Is it because the top government officials do not experience black outs like we, the commoners, do? They would have a heart to work on this problem once and for all.”

Other residents at townships like Luwinga, Zolozolo, Ekwendeni and Area 4 were only seen gallivanting along the streets with no any hope of power resumption the soonest.

On Wednesday this week, Consumers Association of Malawi (Cama) took a swipe at Electricity Generation Company (Egenco) for announcing that it would be unable to provide reliable electricity to Malawians during the Christmas and New Year festivity.

 In a press statement, Cama said: “Consumers are tired and angry with poor service delivery excuses by EGENCO and Consumers for a long time have questioned whether there is any supervision and monitoring of parastatals like EGENCO which continues to disappoint its Consumers and embarrass Government for its failure to deliver better services.

“We are, therefore, appealing to Government to stop treating EGENCO with kid gloves and ensure that the current public sector reforms are adding value to the operations of this key parastatal.”

Unreliability of electricity in Malawi is a serious challenge, which has on innumerable occasions scared foreign investors away.

However, the current Tonse government promised to put this incessant problem to sleep once voted into power.

 Malawians are yet to start enjoying the fruits of the promise.

Business, Malawi

Malawi’s consumers body lambastes 2020/2021 National Budget; It’s too ambitious, empty

Angella Semu
New Malawi Finance Minister Felix Mlusu

BLANTYRE-(MaraviPost)-The Consumer Association of Malawi (CAMA) has expressed dissatisfaction with the National Budget presented by the Minister of Finance Felix Lafiel Mlusu on Friday 11 September, 2020.

This was disclosed in a statement issued on Saturday September 12 signed by John Kapito, CAMA executive director.

In the statement, CAMA said the current budget statement has neglected the promises made by the new Administration during campaign period such as the Universal Fertilizer Subsidy, which has been given a complete name, free connection of electricity and water, reduced prices of passport and driving licenses, creation of a million jobs and removal of taxes on some basic goods and services.

CAMA also said the current budget statement is unable to articulate key issues that Government need to pursue in order to rescue the dying economy and is unpropitious to Consumers instead it is crowded with assumptions that are unrealistic.

According to CAMA, the introduction of a new tax on some products such as cooking oil and taxes on winning bets which has been the source of income to many unemployed Malawians reveal how selective the budget is aiming at benefit few Malawians which defeats the whole purpose of a Nation Commitment Statement.

The consumer body has therefore urged the current Administration to make deliberations in the budget presented in order to instill confidence amongst the people of Malawi by responding to their needs through the national budget.

Malawi

CAMA, MERA jointly train Malawi journalists on petroleum pricing trends amid Covid-19 spike

Maneno Chimulala
John Kapito: CAMA Executive Director

BLANTYRE-(MaraviPost)—Journalists drawn from different media houses in the country were on Monday updated on the trends on petroleum pricing by Consumers Association of Malawi (CAMA) in collaboration with Malawi Energy Regulatory Authority (MERA) as the countries across the world are still feeling the negative  impact of Covid-19 spike.

The novel coronavirus, which Chinese authorities first reported to the World Health Organization (WHO) on December 31, 2019, has been confronting the petroleum exporting countries with both a negative supply and demand shock resulting in fluctuation of petroleum of prices.

For the past few months, Malawi has been witnessing a decrease in petroleum prices following a plunge in oil prices on the international market, a situation which was attributed to the continued spread of Covid-19 which has led to a global slow-down of economic activities which has depressed the demand against the supply of oil.

The decline in oil demand has been particularly significant as oil is mainly used in the transportation sector, and business closures, declines in domestic and international travel, and the lockdowns and quarantines in many countries have all shrunk the demand for oil.

However, as countries continue lifting travel bans, it is projected that prices of oil on the international market will soon start increasing due to a boom in demand as the transport sector, the main user of petroleum, will resume operations.  

It is against this background that CAMA in collaboration with MERA thought it proper and necessary to update the country’s journalists on the trends on petroleum pricing amid Covid-19 by organizing a one-day workshop.

During the workshop, which took place at Mount Soche Hotel, CAMA executive director John Kapito challenged journalists to do more research on petroleum pricing so as to make sure that Malawians get the right information

Kapito lamented the tendency of journalists who take pleasure in writing stories about fuel hike without giving proper background on the same.

“There has been a tendency of ignoring the fuel prices reduction among many journalists in the country. When MERA reduces pump prices it’s not news. It is only news when prices go up. This is bad.

“As journalists you must be equipped with factors that necessitate fuel price adjustment. That is why today we are here together with MERA secretariat to discuss the issue of fuel pricing as we are confronting the Covid-19 pandemic which has also hit our economy hard.

“To have an in-depth understanding of how the market is operating and convey messages to the masses accordingly, journalists should be aware of the trends on the international market,” Kapito said.

Kapito said the prices of fuel in Malawi are also affected by the routes that are used to import the commodity.

He noted that 50 percent of the commodity come into the country through Dar-es-Salaam, 30 percent through Beira while 30 percent is comes through Nacala.

“At the moment we are using expensive routes like Beira and Dar-es-Salaam. It could have been cheaper if we were importing a greater percentage of fuel through Nacala,” he said.

Taking his turn, MERA’s Director of Economic Regulation Chimwemwe Dunkalo said the reduction in fuel prices in the past months was due to stability of Kwacha and sharp decrease in demand for the commodity as people were not travelling, business shut down and low production.

“MERA assessed the combined effect of the movement of the FOB prices and exchange rate of the Malawi Kwacha to the United States Dollar as well as changes in local factors that determine the maximum pump prices. For instance, in May this year it was noted that the landed costs of petrol, diesel and paraffin decreased by 37.50%, 19.89% and 41.49%, respectively and that according to the Automatic Pricing Mechanism (APM) all the three products qualified for a price adjustment since the changes in their landed costs were beyond the ±5% trigger limit,” said Dunkalo.

Dunkalo said while fuel pricing mechanism is a complex issue, journalists have a role to interpret the trends for easy relaying of information to consumers.

“It is up to the media to look for information. The prices are reviewed every month and that is where the media could generate more questions for the benefit of the audience,” said he.

Dunkalo also said MERA uses Price Stabilization Fund to help fuel importers to remain in business otherwise they could be forced out business or the prices would go higher beyond Malawians’ reach.

He said MERA requires at least K5 billion in form of stabilization fund to cushion fuel importers against loses when the prices changes on the international market do not reach ±5% trigger limit in respect to Automatic Pricing Mechanism.

This year only, MERA has revised fuel prices downwards three times.

However, the cost of transportation has remained constant high due to minibuses and buses capacity reduction as one way of containing the Coronavirus.

Chimwe Dunkalo: MERA’s Director of Economic Regulation

Lifestyle

CAMA calls for an independent investigation on the area 18 sewage spill

Ausborn Banda

kapito

Malawi’s consumer watchdog Consumer Association of Malawi (CAMA), on Thursday, called for an independent investigation into the Area 18 sewage spillover into the City’s piped water.

CAMA called upon service providers to ensure sustainable service delivery without subjecting customers in the Area 18 catchment section, to further harm.

The Executive Director for CAMA John Kapito, informed the Maravi Post that CAMA is requesting “an independent person to investigate both the mechanical and economical issues of the water pipes in Area 18, so that the report addresses all the concerns that Area 18 residents have rised. Water is life. Clean water must be available to the residents of Area 18.” Continue reading CAMA calls for an independent investigation on the area 18 sewage spill →

Malawi

Traders illegally hike sugar prices as wholesale vendors hold the commodity to create shortage on market

Maravi Post correspondent

 

Illovo sugar: hiked illegally by traders across the country

BLANTYRE-(MaraviPost)– Malawian consumers are digging deeper into their pockets to buy sugar, following the illegal hike in the price of the commodity by the traders across the country. The hike has been criticized by Illovo Sugar Malawi Limited, the sole producer of the commodity in Malawi.

The sugar producer last increased sugar prices by an average of eight percent in December, 2016 and has not effected any increment since.

However, Maravi Post snap survey in Neno district, established that traders effected an increment on the price of the commodity with a 1Kg packet of sugar selling at K900 and some even as high as K1000.

The traders told this reporter that the price increase is due to the shortage of the commodity on the market, since the company suspended production in November last year.

However through our snap survey, it was leant that the decision by the traders is being influenced by some sugar wholesale vendors, who are withholding the commodity so as to create the shortage, and thereby justifying their reasons to hike prices.

Every year the sugar manufacturer, stops production in November and resumes the following year in April. This allows the company to carry out several maintenance activities while it waits for the end of the rainy season. Local wholesale traders have taken advantage of the situation to deliberately create shortage, forcing price increases in the essential commodity.

Speaking with the local media sugar manufacturer’s Public Relations Officer, Irene Phalula, said the company has not effected any price increase.

“We have not increased sugar prices. Each time there is an increase in prices, we issue a press statement; therefore those alleged new unofficial sugar prices unofficial,” Phalula said.

She further described the traders’ conduct as pure theft, arguing there is no sugar scarcity on the market despite the company suspending its production for a while.

Executive Director of the Consumers Association of Malawi (CAMA), John Kapito, condemned the traders’ conduct as detrimental to both the manufacture’s and consumers, since such high prices deter consumers from being able to afford the commodity.

The traders’ conduct comes at a time when the Kwacha is stabilizing and inflation and bank rates are reducing.