The so called donors that are finding every reason to blackmail 40% of Malawi’s budgetary support are doing so to show us who is the boss. They know that Peter Mutharika government had nothing to do with cashgate so why are they failing to give him a chance to implement his own policies?
They claim government has to regain their confidence to stop withholding 40 percent of budgetary support due to the corruption scandal known as Cashgate. A scandal Mutharika had nothing to do with. The more than $30 million was looted from government coffers during the Joyce Banda government, and several people, including some Ministers have been arrested and are on trial or pleaded guilty and serving their terms.
This irresponsible withholding of aid has forced Malawi’s government to pass what is known as the Zero Aid national budget for the 2014-2015 fiscal year. Analysts, such as Abel Mwanyungwe, an economics lecturer at the Polytechnic College of the University of Malawi, say the drop in spending has hurt the economy and continues to affect Malawians more than government officials.
When Joyce Banda was sworn in within days these very donors released the funding within days. They did not force Joyce Banda to disown the policies of Bingu WA Mutharika but instead worked with her to de-value the kwacha. They were releasing the funds before she was compliant with all of their demands.
They did the same when Bakili Muluzi relieved Kamuzu Banda of his so called life Presidency. Bakili Muluzi did not have to wait for months before they were able to support the Malawi budget and in essence Malawians.
So who are these donors trying to fool? Who are they punishing and what are their motives?. I have a sneaky feeling the goal posts will continue to be changed for Peter Mutharika and his government until the economy becomes un-manageable and Malawians lose faith in his governance.
“This has been a bumpy year to say the least as we are coming from the Cashgate effects that have quite a major dent on the economy’s performance. We have seen that in most cases the very delicate and crucial departments and service providers have been affected, in the sense that we don’t have enough drugs in the hospitals. In schools, in terms of teachers’ payments is not in time,” said Mwanyungwe.
Mwanyungwe also links Cashgate to the recent depreciation of Malawi’s currency, the kwacha, which has resulted in strikes by various government workers demanding higher pay.
For example, support staff for the judiciary have been on strike for six weeks, seeking a 45 percent pay increase which the government says it cannot afford because it has no money.
Workers at Malawi’s Anti-Corruption Bureau went on strike demanding a 70 percent pay raise until the government threatened to forfeit their December salaries if they did not return.
Mwanyungwe said the government can only avoid further strikes in 2015 if it makes efforts to restore donor confidence in the management of its public finances. Unfortunately with all these issues there is no way Mutharika can start to gain the Donor confidence? The Donors want Mutharika to fail. Malawians that are busy protesting should start protesting against the brits, The Germans and the Americans as these are the true culprits to the failing economy.
“My fear is that if we don’t have this donor confidence and donor support coming back to the economy, we may force the government to go into serious local borrowing that would lead to serious repercussions in terms of inflation, in terms of interest rates and this may have a sort of catch-catch lose situation,” said Mwanyungwe.
In that case Malawians need to find any means necessary to help the donors change their minds. They are not punishing Mutharika but all of us.
The donors should be taken into account. Civil rights groups should start matching in front of the Donor Embassies to make sure they understand they are affecting the lives of all Malawians by withholding money that supports our budget.
In his state of the nation address last Saturday, Malawi president Peter Mutharika said his government is doing everything possible to address the problems caused by the Cashgate scandal.
“My government has strengthened the financial system to make sure that Cashgate never occurs again in Malawi. We have resourced fairly well the law enforcement institutions, including the Anti-Corruption Bureau, so that they do a thorough independent job, prosecute all suspects, and recover the stolen resources where possible,” said Mutharika.
Mutharika also said his government is implementing newly-adopted fiscal reforms that seek to grow the country’s economy by 5.5 percent in 2014, up from an estimated 5.0 percent in 2013.
It is therefore incumbent on the Donors to release the 40% funding that supports the budget and Malawians. We will remember our friends in times of need.
