The World Bank office in Malawi has expressed sadness on the remarks the Civil Society Organisation (CSOs) in Malawi made over the weekend by questioning the bank and International Monitory Fund (IMF)’s real interests on the sale of Malawi Savings Bank (MSB) saying neo-colonialism tendencies to a sovereign state like Malawi were not welcomed.
Through the press conference which Billy Mayaya (Human Rights Defender), Bright Kampaundi and Fryson Chodzi (Forum For National Development), organised on Saturday, June 6, 2015 in the capital Lilongwe whose aim was to respond the President Muthalika’s suspension of MSB sale made last week, also attacked the World Bank and IMF motive behind the sale saying the two financial bodies were giving the leadership of this country direction on the matter beyond limits.
The trio expressed dissatisfactory over the two financial bodies’ motive behind the sale saying they didn’t have right to dictate terms that run counter to the demand of sovereign state like Malawi.
“The history of privatisation in Malawi is clear case of World Bank and IMF tendencies of neo-colonialism which we believe they don’t have right to decide what’s best for Malawi. In a poor country like Malawi, the government is under obligation to provide social economic services to all its citizens particularly the rural disadvantaged.
“In our view, MSB plays this very important role German, China, Korea and United Kingdom all has state owned banks which are fully owned and run by governments directly or through municipal councils and counties).
“We are totally opposed to the paternalistic view of the World Bank and IMF to dictate conditions to countries that goes beyond its advisory role. We feel this undermines the decision of a sovereign country and smacks of neo-colonialism”, challenges the trio.
However, in an exclusive interview with the Maravi Post on Wednesday, June 10, 2015 in the capital Lilongwe, World Bank Communications officer, Zeria Banda for Malawi’s Office, trashed the allegation of her institution dictating Malawi on financial matters saying the bank’s role on countries was advisory for fiscal discipline.
“The bank is here to give fiscal discipline direction towards countries economic growth. So, it’s up to individual countries to take such advices or not. Our institution has never dictates the Malawi government on this matter only giving the positive direction that the interests of poor Malawians must addressed.
“The bank is categorically refusing the remarks the CSOs made over the weekend that we have special interests on the sale of MSB. They should have facts when arguing on this matter rather smearing other institutions to score their hidden agenda. World Banks a reputable organisation which must be respected and appreciated on the role it playing for the development of this country”, said Banda.
In that press conference, the trio called the President Muthalika a complete cancellation of the sale rather suspension saying the move was not done in a good faith based on the President’s tone on the suspension statement.
“While we recognise the need to suspend the sale of MSB, we are concerned with the tone of Presidential Statement in that it is short on substance and undermines the views of those on the opposite side of the debate.
“We note that through out the statement, the President continuously labelled key stakeholders, CSOs, Member of Parliament, political parties, Public Affairs Committee (PAC), Budget and Finance Committee, social commentators and ordinary citizens as being partisan, emotional or lacking professional expertise.
“It’s disheartening to note that the President has openly denigrated the oversight function of the National Assembly yet at the same time, the same arm of government has a responsibility to discuss and pass the proposed 900 billion kwacha budget.
“Therefore, we are urging the President to completely cancel and not suspend the sale of the bank in accordance with the wishes of the people of Malawi by recapitalising the bank with required MK5 billion and, initiate an audit of the entire process of the dubious sale of the bank including a probe into individuals and institutions involved”, recommends the trio.
