Tag Archives: Lazarus Chakwera's Tonse Alliance government

Malawi’s public debts at MK12.56tn: Effects of reckless 44% Kwacha devaluation

LILONGWE-(MaraviPost)-Malawi’s public debts have jumped from MK10.6 trillion to MK12.56 trillion following the reckless and useless 44% devaluation of the Kwacha.

This has raised an alarm on how the debts are being used by President Lazarus Chakwera’s Tonse Alliance government, three years in power.

Finance Minister Simplex Chithyola Banda revealed in the 2023/2024 Mid-Year budget review statement on Monday, November 2023 in Malawi Parliament.

Banda also disclosed that the fiscal plan has been revised to MK4.33 trillion from MK3.79 trillion with a total expenditure of MK2.02 trillion.

He says the budget deficit in the first half was seen at MK569.79 billion against a budgeted deficit of MK737.82 billion.

Banda added that the total budget deficit will widen from MK1.24 trillion to MK1.28 trillion or 8.3 percent of the GDP.

The minister however disclosed that in the aftermath of the International Monetary Fund (IMF)’s Extended Credit Facility (ECF), Malawi is to get 80 million dollars in budget support from the World Bank, 30 million dollars from the African Development Bank, and 60 million Euros from the EU.

Chithyola Banda says cumulatively, Malawi will get US$240 million in support from partners.

According to Chithyola Banda wages and salaries have gone up by MK80.05 billion from K900.44 billion to K980.49 billion.

The finance minister says the provision of interest payment has gone from MK16.62 billion to MK931.48 billion in the wake of the devaluation.

Chithyola Banda says the move to cut the fuel allocations by top government officials has resulted in a saving of K4.2 billion, which will be used for megafarms.

The Finance Minister says funds for maize purchase have been maintained at MK12 billion, but that the World Bank has pledged US$20 million (MK34 billion) towards the cause.

According to Chithyola Banda wages and salaries have gone up by MK80.05 billion from K900.44 billion to MK980.49 billion.

The finance minister says the provision of interest payment has gone by MK16.62 billion to MK931.48 billion in the wake of the devaluation.

Chithyola Banda says the move to cut the fuel allocations by top government officials has resulted in a saving of K4.2 billion, which will be used for megafarms.

Minister of Finance Simplex Chithyola Banda says inflation will average 29 percent in 2023 before coming down to 27.1 percent in 2024.

More to come..

HRCC backs Chakwera’s Tonse Govt decision on Kapondamgaga, Sattar, Muluzi, UNGA

LILONGWE-(MaraviPost)-The country’s civil rights group the Human Rights Consultative Committee (HRCC) has backed President Lazarus Chakwera’s Tonse Alliance government decisions on various national issues state agencies are handling as mandated by the law including withdrawing cases from courts that lack evidence for a successful prosecution.

HRCC therefore cited the current leadership decision on unfreezing of business tycoon Zuneth Sattar’s bank accounts after two years the Anti-Corruption Bureau (ACB) failed to conclude an investigation on suspected bribes.

The grouping also commended Chakwera’s Tonse Alliance leadership for discontinuing 15 years of former President Bakili Muluzi’s MK1.5 billion bribery case.

As a political engineer, Atcheya Bakili Muluzi

A press statement issued on Thursday, September 21, 2023, signed by its Board Chairperson Robert Mkwezalamba, lauded the leadership also on giving amnesty to State House Chief of Staff Prince Kapondamgaga.

The grouping goes further backing Chakwera’s 78th United Nations General Assembly (UNGA) attendance that Malawi can not afford to miss such an important forum.

HRCC therefore some quarters of the society by disregarding public institutions of governance of their independent decisions on matters of national importance.

Prince Kapondamgaga back from home at State House

Mkwezalamba said while members of the general public and individual organizations, “May seek accountability and transparency in these matters, we feel it is an unfortunate call given that the entities have not hidden the reasons behind their actions.

“As citizens, we need to support these institutions and only criticize where we have enough evidence to act as such otherwise we will be seen to be usurping the legitimate mandate and role of these institutions as well as be seen to criticize for the sake of criticism,” said Mkwezalamba.

He said the trimming of UNGA delegates will not bring in the best results as the meeting has over 30 meetings lined up.

HRCC looks forward to the review and subsequent discontinuance of several cases of similar nature the likes of Chihana/Kambala, Bon Kalindo, Norman Chisale, Reyneck Matemba, Dr. Chilima, Dr Kainja..) and calls on ACB and the state to pursue cases whose suspects have been thoroughly investigated to ensure that they do not unnecessarily squander taxpayers’ money prosecuting matters which are not there or cannot be prosecuted timely.

He therefore calls upon citizens to promote the culture of patriotism and support Institutions of governance for their motivation and better delivery of justice as opposed to being critical of every decision they make in line with their mandates.

Below is HRCC’s full statement:

HUMAN RIGHTS CONSULTATIVE COMMITTEE (HRCC) FOR IMMEDIATE RELEASE: CALL TO RESPECT INSTITUTIONS OF GOVERNANCE AND THEIR MANDATES


The Human Rights Consultative Committee Board with its entire network of 97 NGOs has noted with grave concern, the intentions of some few members of the society who are bent on thwarting every decision made by Institutions of
governance for their own reasons.

The latest to be attacked has been the National Assembly on the Fertilizer deal, MACRA on the Multichoice challenge, the DPP on Dr. Bakili Muluzi’s case, the ACB on Mr. Kapondamgaga and President Chakwera for his UNGA trip just to highlight a few.

While members of the public and individual organizations may seek accountability and transparency in these matters, we feel it is an unfortunate call given that the entities have not hidden the reasons behind their actions.

As citizens, we need to support these institutions and only criticize where we have enough evidence to act as such otherwise we will be seen to be usurping the legitimate mandate and role of these institutions as well as be seen to criticize for the sake of criticism.

HRCC was meant to believe that;
i. The President has traveled to the UN general assembly with a lean team of 35 individuals. While the trimming may be commendable to some, as HRCC we view it differently.

At our level, we know for sure that all trips being taken were budgeted for and approved by parliament hence the current delegation number is not adequate for Malawi to attain the best results from this forum. As a matter of fact, the UN General Assembly has over 30 meetings lined up for each day of the conference, and as can be seen, less than 20 delegates will be entitled to attend this event.

From practice, the more your delegation or representative of all meetings, the better chance a nation stands out to benefit because the President and his team may not manage to attend all events.

This deprives us of the opportunity to find new donors and partners for our ailing economy. Malawians need to think
positively on these trips as the gains outweigh the losses we grapple with.

HRCC wishes the President and team all the best as they represent us at this constitutive forum where as a member, we are required to attend and account for instruments we have ratified and domesticated in the best interest of Malawians.

ii. Parliament discontinued investigations into the Fertilizer issue because they have written evidence and documentation that proves that the deal was canceled and that no payments have been made to East Bridge.

They made it clear; the findings guaranteed their cancellation as it wasn’t going to be financially prudent to spend millions pursuing a matter that has already been canceled.

HRCC endorses this decision in the interest of preserving the taxpayer’s money believing the State has learnt lessons and will ensure procurement procedures must be followed to the latter.

iii. The DPP discontinued Dr. Muluzi’s case for want of prosecution. The matter has stayed long and some witnesses have since passed on on the other hand, Dr Muluzi has already embarked on community services supporting the state in reaching out to its citizens affected by cyclone Freddy- one would therefore applaud the DPP for this mature
decision.

As a matter of fact, under Section 99 of the Constitution, the DPP may take over and continue or discontinue any criminal proceedings instituted by any person or authority. As a State we need to always remember that Justice delayed is justice denied.

iv. The decision by ACB to discontinue prosecuting Mr. Kapondamgaga on the basis that the Bureau has failed to find incriminating evidence to prove its case.

HRCC supports this position on the basis that Mr. Kapondamgaga remains at the disposal of ACB to provide the needed support to prosecute the matters while on the other hand, he has been relieved of the burden of being labeled as party to the alleged corrupt dealings. This has the effect of protecting the resources the state would have paid in trying him for no genuine case but also paying him damages if the matter was to be concluded in his favor.

HRCC has issued statements that have called on ACB to review all its cases and individuals who were initially charged to ensure that only individuals on whom they have information and sufficient evidence should be tried.

In this regard, HRCC notes the calls by defence council for Sattar who wants the ACB to free some Sattar property as we await the Supreme Court’s determination on Kenzie Msukwa’s challenge over information about the bureau obtained from NCA.

HRCC believes the ruling will set proper precedence for Malawi to try its own people based on local convictions and justice as opposed to passing on matters that become difficult and complicated to prosecute.

V. In the exercise of its legal Mandate, the MACRA exercised its authority over Multi-choice (DSTV) where it observed some anomalies in the manner, in which it wanted to effect service fee hikes.

MACRA accused MultiChoice Malawi of violating the law by not notifying them about the proposed premium review as provided in the Communications (Telecommunications and Broadcasting Licensing) Regulations 2016. Instead of being Civil, DSTV decided to be confrontational and withdrew its paying services from Malawi.

HRCC would like to applaud MACRA for this decisive action which seeks to impress on investors to respect the laws of the land governing Broadcasting.

The actions by DST clearly confirm their bully attitude where they would not want to dialogue but use threats and power to force MACRA to come to its knees yet it is only implementing what the law says.

HRCC finds it unfortunate, attacks on the MACRA leadership and entity as a whole from the Social Media influencers and well-to-do individuals of the society.

While the rich and well-to-do have the capacity to pay the proposed new rates, MACRA is commended for ensuring that such an increase is in accordance with the law.

If they can’t respect our laws, they have no space operating in Malawi. We demand that MACRA actions be respected and
staff commended.

This country has so many individuals who fail to execute their roles and mandates simply because they are afraid of a small section of society.

We demand the respect for rule of law by all foreign and local entities in the best interest of Malawians as we closely observe and wait for the court’s determination on the matter.

In all fairness, HRCC would like to remind all Malawians that the laws of the land are very clear as such people must not invest in hatred but use the law to demand justice.

The fact that as we communicate- No case has been opened against Sattar here in Malawi calls to question the 84-member list of suspects who continue being tried in his absence.

We are afraid that he too reserves the right to sue the Malawi Government to restitute his dignity and loss of property as we
seem not to have adequate information of our own on him.

HRCC looks forward to the review and subsequent discontinuance of several cases of similar nature (i.e. the Chihana/Kambala, Bon Kalindo, Norman Chisale, Reyneck Matemba, Dr. Chilima, Dr Kainja..) and calls on ACB and the state to pursue cases whose suspects have been thoroughly investigated to ensure that we do not unnecessarily squander taxpayers’ money prosecuting matters which are not there or cannot be prosecuted timely.

We call on all citizens to promote the culture of patriotism and support Institutions of governance for their motivation and better delivery of justice as opposed to being critical of every decision they make in line with their mandates.


Signed by Robert Mkwezalamba Desmond Mhango and HRCC Board Chairperson and member respectively

Chakwera falls from grace as central bank loses MK187 billion in 2022 fiscal year

LILONGWE-(MaraviPost)-President Lazarus Chakwera’s Tonse Alliance government has fallen completely from economic grace as Malawi’s economy is in shambles.

This is testified with Reserve Bank of Malawi (RBM)’s comprehensive report of making loss of MK187.5 billion in the year that ended on December 31, 2022,

This is according to consolidated and separate annual financial statements posted on the bank’s website which addresses the performance and financial of the bank and its subsidiary Export Development Fund.

The statement shows RBM made a loss of MK187.5 billion. In 2021, the bank made a profit of MK77 billion.

According to the statement signed by RBM Governor Wilson Banda and Board Audit Committee chairperson Maxwell Mkwezalamba, the bank also reported profit before foreign exchange revaluation of K93 billion in 2022.

“K20 billion was declared as dividend and distributed to the government in the year ended December 31, 2022 while K31 billion was transferred to general reserve account,” reads part of the statement.

It also indicates that in the year under review, RBM had foreign liabilities of MK1.76 trillion against assets of MK439.5 billion.

The statements further show that the bank injected MK10 billion into Export Development Fund in December 2022.

RBM Governor Banda told the local media that the bank posted an operating profit of MK93 billion.

Reserve Bank of Malawi (RBM) Governor Banda failing to tick

“The re-evaluation of our forex liabilities following the 25 percent devaluation explains this,” said Banda.

Experts say when the Central Bank makes losses it means the bank cannot sustain itself and the government could be forced to bail it out.

In May last year, the Central Bank with advice from President Lazarus Chakwera’s administration implemented a 25 percent devaluation of the Malawi Kwacha to resolve the problem of forex shortage.

However, Malawi is still facing a forex crisis and the devaluation only pushed up prices of various good and services.

Despite all parameters of economic governance, Chakwera’s Tonse administration continues with financial fraud deals that deplete forex including illegal Agriculture Inputs Program (AIP).