10% Excise Duty on SMS Scare Flood Victims

Survivers: 

New excise duty on text messaging has scared people of Nsanje who survived from this years worst flood disaster.

In order to expand the tax base to generate resources for budget, 10% excise duty to be levied on text messaging and all data transfers including internet and similar services.

People of Nsanje district have made a very strong argument through Member of Parliament for Nsanje South West Constituency, Hon Joseph Chidanti Malunga who spoke in the National Assembly about how the new tax has disappointed and scared people of Nsanje.

Hon Chidanti: Survivers are scared 

The parliamentarian, Honorable Chidanti Malunga, made the formal request in the National Assembly that government should stop implementing that punitive tax because text messages saved many lives of people of his constituency during floods.

He said people from Nsanje are worried and of the view that it is not wise decision to raise tax on such life saving services.

That flood disaster day, he said, "The commonest form of communication was text messages."

"We were able to text warning messages to one another and with family and friends so, we were saved”

Hon. Chidanti then said, "Today we are worried" and repeated "we are worried that we have to pay more for these services."

"We therefore urge government to re-look at this proposal to raise the tariff on text messaging in this year’s budget” pleaded the peoples representative

Malawians continue mounting pressure on government to abandon decision of raising tax on SMS, Data and Internet.

Minister of Finance, Economic Planing and Development, Honorable Goodall Gondwe when presenting 2015/2016 budget estimates, where he announced the new tax, said government decision to increase the tax was reached upon having observed that government core to improve access to mobile telecommunication has been fulfilled after it removed custom duties on mobile phones and solar cellular telephone chargers.

The minister said there is now tremendous uptake of the telecommunication services.

However, many people have spoken against the decision.

Economic Experts Urge Govt To Allocate More Resources for Investment

Hon Goodall Gondwe being led by
Sergeant at Arms into the Chamber to
Present 2015/2016 budget 

The budget statement for the financial year 2015/2016 continues to receive varied response among politicians and experts, but one thing in common has been a more emphasis on the need to start framing budget that focuses on stimulating productivity and investments.

The K901.6 billion budget estimates presented last Friday by hon Goodall Gondwe, the Finance Minister, has an allocation of K224 billion for development expenditure. 

Henry Kachaje 

President of the Economics Association of Malawi (Ecama) Henry Kachaje, observed that the budget lacks emphasis on investments in the economically productive sectors. He said, now that donors are not likely to support Malawi in its budget, a focus on investment is the right option for Malawi economy.

He further noted that Economic growth which the Minister indicated in the statement is not substantiated by factual evidence of where that growth would come from adding that in a number of areas, the minister was failing short of committing the reforms government is going to undertake by this budget.

“It’s a budget statement that has left us still wondering whether what we are hoping to achieve as a country may be achieved” said Kachaje, as he referred to the Finance Minister's emphasis of hope for resumption of donor aid while acknowledging unlikeliness of their comeback soon.

Dalitso Kubalasa 

Dalitso Kubalasa, Executive Director for Malawi Economic Justice Network (MEJN) 2015/2016 said this budget statement was interesting not so much as a surprising statement because of Finance Minister’s acknowledgement of known tough things Malawi is still sailing through.

But he said the budget has some courageous decisions and very cautious on what is been committed in this budget.

A bit different from Kachaje observation, Kubalasa noted that government has prioritized economically productive areas including the need for further input from stakeholders on challenges facing the fertilizer subsidy programme.

“Another striking element of the budget though no details were explicitly made is on Input subsidy programme where government is acknowledging challenges facing the programme and the need to discuss them with stakeholders.” said Kubalasa

Telecommunication, Custom Duty Fines, Customs Form 12 Goes Up To Support 2015/2016 Budget

Goodall Gondwe Finance Minister 

Minister of Finance presented 2015/2016 budget estimates which largely rely on perfomance on domestic revenue and off-budgetary support from donors.

Suggestively, such a budget shall see Malawians to dig more in their pocket when accessing some services due to tax regime that will concentrate on broadening the tax base in order to generate more domestic resources as well improving administrative efficiency, encouraging tax compliance. 

Likely, in this situation government has been left with no other choice but to raise custom duty on some potential tax revenue generators.

So, get prepared for the new cost of SMS, Internet, Customs and Excise form 12,  Customs Procedure Code for Specialized Broadcasting Equipment for Direct use in Television and Radio Stations (CPC 480) and Customs and Excise Duty Fines though some rates have been reduced.

Minister of Finance Goodall Gondwe when announcing the new tax measures indicated that the amendments were made following various insightful and constructive proposals received during this year’s pre-budget consultations, though a number of them may be considered for future budgets. 

"Mr. Speaker, Sir, the Customs and Excise tax measures to be announced today will become effective from midnight tonight, whereas the Value Added tax (VAt) and Income tax measures will be effective on 1st July 2015, once the relevant bills are passed by this House." He announced 

Increased Customs And Excise Duty Measures

Hon. Gondwe announced that, following the tremendous uptake of the telecommunication services in Malawi, and in order to expand the tax base togenerate resources for this budget, 10% excise duty will be levied on text messaging and all data transfers including internet and similar services. He noted that Government removed customs duties on mobile phones in order to improve access to mobile telecommunication. And went further to remove customs duty on solar cellular telephone chargers. 

Government has removed henceforth, Customs Procedure Code for Specialized Broadcasting Equipment for Direct use in Television and Radio Stations (CPC 480). Such equipments were imported free of Customs duties, VAt and Excise duty, in order to improve information dissemination in Malawi. 

The finance Minister contented that objectives of removing customs duties have been achieved as there is now a proliferation of television and radio stations in Malawi, creating competition in the industry which has given Malawians options to choose from.

Threshold Value for Entry of Goods on Customs Form 12 has been increased from K100,000.00 to K500,000.00 so as to reduce the time spent at the port of entry for small and medium business people or travellers who import goods from neighbouring countries, and to support the ‘Ease of doing Business’ initiatives that the Government is undertaking.

Customs and Excise Duty Fines has been revised upwardsin order to provide for meaningful cost sharing and recover the value eroded by inflation. Now, the minimum fine has gone up from K10, 000.00 to K100,000.00, as the minimum fine in the Customs and Excise Act has been eroded with inflation and does not cover the cost of enforcing compliance. 

Reduced Rates in Excise Duty 

Excise Duty on some Imported Vehicles Government has reduced excise duty rates on motor vehicles under the Customs and Excise tariff Heading 87.03 with an engine capacity exceeding 3,000cc in order to encourage tax compliance.

Excise Duty on Dry Cell Batteries that operate light torches and radios used by most Malawians, especially in the rural areas has been reduced from 30 percent to 10 percent.

On Regional Trade Agreements, Malawi is to migrate to Customs and Excise (Tariffs) Order to COMESA Common Tariffs Nomenclature (CTN) and this will be published in the Government Gazette.

The budget statement furhter indicates that there shall be Taxation Act Amendments including on Tax Policy and Administrative Measures, Amendments of the Malawi Revenue Authority Act, and Amendments of the Value Added Tax Act.

Reed full budget statement Read or Download

Goodall Unpacks K901. 6 Billion Budget Estimates for 2015/2016

Hon Goodall Gondwe Arrival at Parliament 

The Minister of Finance, Economic Planning and Development Honorable Goodall Gondwe has unpacked the estimates on the recurrent and development accounts for the budget of the 2015/16 financial year on Friday afternoon in the National Assembly.

Now, the budget has been referred to the committees of Parliament for two week scrutiny before they are considered by the Committee of the Whole vote by vote, and that, thereafter, they be adopted.

Gondwe announced that the total expenditure and net lending in the 2015/16 budget is projected at K901.6 billion “Although this appears to be higher in money terms than the 2014/15 revised total expenditure of K800.7 billion, it is actually lower in real terms." He said



The 2015/16 budget constitutes 26.2 percent of GDP, while the revised budget for 2014/15 accounts for 28.4 percent of GDP.

The recurrent expenditure will be K674.6 billion, while development expenditure will amount to K224.0 billion. Therefore, the share of goods and services that will accrue to the public sector is projected to be lower in 2015/16 than that consumed in 2014/15 Said Gondwe

When making his presentation, Hon Gondwe acknowledged uncertainty of receiving budgetary support from bilateral donors though Malawi is sealing loopholes that led to theft of public money dubbed cashgate. 

He did not even hide to mention that the budget has not only seen a decline in donor budgetary support, but dedicated and project grants as well. 

The Finance Minister however, told the House that more support from donors to Government ministries, departments and agencies shall largely be through off-budget a development which will see votes, particularly those in the social sector, appear underfunded, but may actually be adequately funded when off-budget donor support is added to the budgetary allocation.

But he noted that upward trend in off-budget support as a major source of financing the delivery of public goods and services is not without problems. In particular, he said this development means that the Government (including Parliament) does not have decision making responsibility over an increasing amount of resources available to the public. Therefore, the Government cannot properly decide on expenditure priorities, nor properly plan and time the delivery of goods and services in some critical areas.

But Gondwe said Malawi hold the strong view that greater coordination between the Government and the donors will go far in relieving some pressure on the budget itself, and sustaining the impact of donor support.

Currently, African development Bank resume its budgetary support during the 2014/15 financial year but Malawi government remain hopeful that the other two multilateral institutions, World Bank and the European union, will shortly decide to join the African development Bank.

Outlook of 2015/2016 Budget

Since this year’s budget is premised on no budgetary support, Malawi has strategized to generate adequate local resources to finance activities. Consequently, Gondwe said government has developed the tax measures that will concentrate on improving administrative efficiency, encouraging tax compliance, and broadening the tax base in order to generate more domestic resources.

The finance Minister indicated that the design of this year’s budget is characteristically reflective of the diminishing size of the resource envelope available to the Government, as a percentage of GDP (hence, potentially, in real terms), against the pressure of growing needs to provide critical public goods and services. 

He indicated that the draft budget assumes an optimistic macroeconomic outlook for the next financial year. Inflation rate is projected to decline to 16.4 percent, a general decline in interest rates while economy will register a higher real growth rate of about 7.0 percent.

Gondwe being led onto the chamber by Sergeant at
Arms

Hon Gondwe also said the assumed nominal value of GDP for the 2015/16 Financial Year is K3.4 trillion.

Gondwe said, total revenue and grants are projected at K763.5 billion (22.2%of GDP) which is lower share of GDP than the revised figure for 2014/15 of K683.3 billion, which represented 24.2% of GDP. He said this decline in total revenue and grants as a share of GDP is entirely due to the continued decrease in donor grants, which amounted to K132.8 billion in 2014/15, but are projected to decline to K97.1 billion in 2015/16. 

He even mentioned that project grants, which remained buoyant in the past, are projected to decline from K71.5 billionin in 2014/15 to K52.9 billion in 2015/16. Moreover, he said dedicated grants are projected to decline by about K10.6 billion relative to the 2014/15 revised figure of K47.6 billion.

He said tax revenues are projected to rise from K581.0 billion in 2014/15 to K592.4 billion, as the Malawi revenue Authority (MrA) sets out to strengthen the tax administration regime, and as the economy bounces back from subdued growth.

The Minister said the recurrent expenditure allocation, however, it is proposed to increase wages and salaries by an amount that will raise the salaries of the junior grades in the public service. The budget also provides for the recruitment of some 10,500 primary school teachers and 466 secondary school teachers, who are projected to join the civil service during the last quarter of the financial year. These initiatives as well as an annual wage creep scheduled for implementation in December 2016 will raise the wage bill from K198.0 billion in 2014/15 to an estimated K228.7 billion.

Development expenditure, which was revised to K189.2 billion in K2014/15, is projected to rise to K224.0 billion in 2015/16. Some K173.0 billion of this amount will be funded by external resources (development Part I), while K50.0 billion will be funded using domestic resources (development Part II).

For the first time, an amount of K5 billion or 10 percent of the domestically financed development expenditure, is being set aside for rural development in the district councils. Therefore, together with resources for the local development fund (ldf) and the Constituency development fund (Cdf), local authorities will have command over K30 billion this year, for grassroot development projects.

In addition, the draft budget has provided the sum of K6.5 billion for maintenance and rehabilitation of roads within four cities. Of this amount, the cities of Blantyre and Lilongwe have each been allocated the sum of K2.0 billion, while Mzuzu will receive K1.5 billion, and Zomba will receive K1.0 billion.

Direct allocations to key line ministries

The amount of K133.7 billion has been allocated to the Ministry of Agriculture, Irrigation and Water development; K109.8 billion to the Ministry of Education, Science and technology; and K77.4 billion to the Ministry of Health. However, through off-budget donor resources, Ministry of Health will also receive  about K55.6 billion, making a total of K123.0 billion. Similarly, the Ministry of Gender has a total budgetary allocation of K3.2 billion, and will receive off-budget donor funding amounting to K14.4 billion.

The proposed budget has a planned overall deficit of 4.0 percent of GDP, against 4.2 percent in 2014/15. Below the line, planned domestic borrowing is projected at K25.0 billion, or 0.7 percent of GDP. This compares favourably with the corresponding figures for 2014/15 of K36.8 billion, which is 1.5 percent of GDP. Building on the trend in 2014/15 already described, it is planned to reduce the domestic debt stock further from 15.9 percent to 14.5 percent of GDP in 2015/16. Thus, Malawi could be reaching the internationally accepted ratio of 12.5 percent quite soon.

Get the Full Budget Statement Here...https://docs.google.com/file/d/0B_djmeY3fFSHMm9lVFp3aEYxMkk/edit?usp=docslist_api

Or summary...https://docs.google.com/file/d/0B_djmeY3fFSHTGxISi05YWpoOXM/edit?usp=docslist_api

Mutharika Brands 2013 Arrest and Detention “Abuse of Power”;

Thanks Cadets, Police Judiciary as He Walks Down Memory Lane

Mutharika 

President Professor Peter Mutharika has described his arrest in March 11, 2013 as ‘abuse of power’ and ‘irresponsible behavior’ of the Joyce Banda administration. Mutharika has for the third time also called the treason charges leveled against him as ‘stupid case’

The Malawi leader was speaking on Wednesday in the Capital Lilongwe at a commemoration of second anniversary of his arrest together with eleven other Democratic Progressive Party (DPP) officials.

Mutharika with fellow detainees
 (Photo by State House)

Peter Mutharika was arrested on treason charges following the findings and recommendations of Commission of Inquiry into the death of his brother former president late Professor Bingu Wa Mutharika, a commission instituted by Joyce Banda Administration. The Commission findings lead to suspect that Mutharika and other officials plotted bar of then vice president Joyce Banda from being Malawi president, in the course committing treason offense and insight mutiny for allegedly asking then Malawi Defense Force Commander General Henry Odilo to take over the government.

Mutharika speaking at Lumbadzi Police
(Photo by State House)

But speaking of his arrest at Mtunthama State Lodge Mutharika said “I think the arrest of me and the other ten was a typical example of irresponsible behavior and abuse of power”

“That’s why I have said all this time, and I will say it again that it was a stupid treason case” said President Mutharika while challenging that he is not afraid of media critics for reiterating the word “stupid treason case”

Mutharika in Lumbadzi
police cell with Other detainees
(Photo by State House)

Last year, similar remarks attracted mixed reacts on Mutharika’s choice of diction and credibility of his arrest when he uttered the words at Mjamba in commercial city of Blantyre and Masintha ground in the Capital city Lilongwe during rallies of thanking party supporters for voting him to presidency.

“Never again should this country allow that kind of abuse of power and there is nothing worse than abuse of power” he continued as began to express word of thanks to those that rallied behind him as he walked through agony from 11 march 2013 until the time he made it to presidency in May 2014. 

Mutharika writes his name on the wall
Of Lumbadzi police cell
(Photo by State House)

On this, Mutharika has thanked youth cadets for offering him protection from three suspected doctors who came to his police cell at Lumbadzi. He said one of them was identified as Head of Criminal Investigations Department were trying to enter into Mutharika’s cell claiming Peter Mutharika required medical attention and were there to help. When the men tried to force themselves in to the cell further raising suspicions, youth cadets thwarted their mission by beating them.

DPP Youth Cadets at Mtunthama
State Lodge: Protected their leader

Here, Mutharika said, had it not been for the protection of youth cadets he would by now have been “buried six feet under the ground.”

“Anything could have happened,” said Mutharika as he also expresses thanks to police for the defense and professionalism exercised throughout the time he was detained at Lumbadzi Police station.

He further, commended Judiciary for handling treason case professionally “I want to thank the judiciary for their real professionalism, and I want Judiciary to continue with this tradition because judiciary must stand between the abuse of power and helpless individuals. The judges are supposed to stand between that to protect innocent people, so am very grateful”

To all Malawians and DPP followers support Mutharika said “May be you don’t know what it is like when you are there, you are there and you have the whole force of government against you! It’s not easy there is humiliation as well! So myself and fellow prison graduates we say thank you!”

Women and all Malawians hailed for
Support

President Mutharika who was them interim President for Democratic Progressive Party (DPP) and other ten party officials were arrested and charged with treason.

Necton Mhura was detained with Mutharika
(Photo by State House)

The other ten are; Goodall Gondwe, Bright Msaka, Vuwa Kaunda, Dr. Jean Kalirani, Patricia Kaliati, Kondwani Nankhumwa, Henry Mussa, Necton Mhura, Nicholas Dausi and Unus Mussa.

Mutharika Walks Down Memory Lane of 2013 Arrest and Detention; Recounts His Time In Detention

Donates Various Items to Lumbadzi Police Station, Maula Prison

Mutharika

The State President Professor Peter Mutharika on Wednesday walks down memory lane of March 2013 arrest and detention following Treason  accusations leveled against him together with eleven Democratic Progressive Party (DPP) officials.

Mutharika visited cells of his detention at Lumbadzi Police station and later visited Maula Prison a place he denied to stay for he argued with officials that he could not stay there for he was not yet convicted of the alleged accusations. 

Speaking at Lumbadzi Police marking commemoration of 2nd anniversary of  his arrest in 2013, Mutharika immediately after visiting the cells he said "Henry Mussa was our pastor we used to pray every night." And added "Being in Police cell is not a joke, that's a place you notice that you are in an isolation world".

"The day we arrived here" he continued, "In the middle of night the Inspector General of Police Dzonzi (Loti Dzonzi former Inspector General of Police who was serving Joyce Banda administration) received information right away from the president. He was told that Professor requires medical attention and am sending medical doctors."

"But that was a total lie" he said

"When the three men came here, Bright Msaka (who were together with Mutharika in the cell) told them that Professor is fine and does not seek any medical attention." He said, then continued with  recounts of how those men were beaten by angry party supporters when the men forced themselves into the cells further sending suspicions of their presence and mission.

Mutharika revealed that the doctors were fake as one of them is being identified as a Head of Criminal Investigations Department and said " I have a signed affidavit by Inspector General of Police (refering to Former IG Loti Dzonzi) I have it myself at the right time I will use that Affidavit" 

Mutharika was in a company of some of the officials who were arrested with him; Goodall Gondwe, Nicholas Dausi, Bright Msaka, Vuwa Kaunda, Kondwani Nankhumwa and Henry Mussa.

He announced that he has donated 15 chairs for the police at Lumbadzi, 8 solar lamps and blankets.

Later, he visited Maula Prison where he also donated food and non food items worth millions.

The items includes three tones of laundry soap, 200 litres of cooking oil, 250 bags of maize flour, 500 bails of sugar, 400 litres of chlorine and 40 bags of beans.

He also went to Mtunthama State Lodge to honor several Democratic Progressive Party (DPP) officials with medals for their endurance during such a trial times the party and its leadership went through.

President Mutharika Walks Down Memory Lane of 2013

Visits and Paint His Detention Cells at Lumbadzi and Maula Prison In Commemoration of 2nd Anniversary of His Arrest in March 2013

Pres. Mutharika

The State President Arthur Peter Mutharika is this Wednesday March 11, 2015 commemorating 2nd anniversary of  his arrest in 2013.

President Mutharika programme includes a trip down memory lane to see the prison cell in which he was once detained in 2013 that is in Lumbadzi and Maula Prison cells.

3rd Meeting of 45th Session for National Assembly Rise Sine Die; Chakwera Brands the Meeting as Successful

3^rd Meeting of 45^th Session for National Assembly Rise Sine Die; Chakwera Brands the Meeting as Successful

The 2014-2015 Budget Review Meeting of National Assembly has adjourned Sine Die on Friday 27^th February 2015.

Delivering his Adjournment Remarks, Leader of Opposition Hon. Lazarus Chakwera offered his appreciation to all members from both sides for constructive criticism in a very compacted meeting they had which he said has enable the house to do business in a manner that informs Malawians that Legislatures always put people’s issues first.

He also encouraged members and government to continue strive to end poverty by creating growth to Malawians particularly those in rural areas and make policies that does not only benefit few. He added that Executive should ensure that decisions made in the House are followed.

Chakwera

Chakwera while expressing satisfaction of how the House transacted its business also made emphasis that committees “must continue doing their work and be seem to function as they continue provide oversight role”

Moving his Adjournment Motion that the House Adjourn Sine Die Leader of House Hon Francis Kasaila, expressed his sincere appreciation to all members for being serious during the deliberations.

“I wish to assure this August House that government will take into account each and every alternative suggested in this meeting to inform future policy changes and implementation.” He said while moving a motion that the house do adjourn Sine Die.

The 3^rd Meeting largely for the Midyear Budget Review began on 2^nd February to 27^th February 2015.

The House had discussed two Ministerial Statements and failed to discuss two Ministerial Statements which will be discussed in the next Meeting of Parliament.

 

Goodal: Minister of Finance

Minister of Finance, Economic Planning and Development delivered on 6^th February 2015 a Mid Year Budget review and was agreed to it on 16 February 2015, the revised estimates were considered by Committee of Supply starting on 19^th February and 24^th February in which the House passed a total sum of K769.2 billion.

During the meeting the House considered and passed a total of five Government Bills; International Development Association Skills Development Project Loan Authorization and Ratification, Marriage, Divorce and Family Relations Bill, Supplementary Appropriation 2014/2015, Traffic in Persons Bill and Higher Education Students Loan.

However two bills have been referred to Parliamentary Committee on Trade and Industry and Tourism for consideration; Insolvency and Metrology, and the Committee is expected to submit its report this House during the next Meeting of the Assembly in May June 2015. The house failed to discuss and conclude; Reserve Bank of Malawi (Amendment), Estate Duty (Amendment), Lilongwe University of Agriculture and Natural Resources (Amendment) and Malawi Institute of Procurement and Supply.

On 18^th February 2015, the House confirmed Lexten Shame Kachama on his appointment as Inspector General of Malawi Police Service.

As the House was adjourned this Friday a total of 98 questions from 180 questions submitted to line ministries for oral replies were responded to and the remaining 82 questions according to Kasaila will be responded to in the next Meeting.

YAD: their petition was considered (Pic. YAD members Captured when Presenting Petition on ban for Alcohol in Sachets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A Private Members Motion and Several other Committee Reports were presented including two Public Petitions were also considered in the House.

MSB Not For Sale

Parliament Block the Sale Until Committee Give a Go Ahead

The National Assembly has passed a motion restraining government from continuing with plans to sale Malawi Savings Bank (MSB) until determination is made by a relevant Committee if the sale of the bank is a necessary move.

On Thursday, Dowa West Parliamentarian Hon Dzonzi Kusamba brought in the House a motion during Private Members Motion where he moved that the House should resolve that the Sale of Malawi Savings Bank Limited be pended for the time being and that the matter be referred to the relevant Committee of Parliament (Budget Committee) for it to consult with stakeholders and report to the House.

When moving the motion, Dzonzi said the noble objectives of Post Office Savings Bank now Malawi Savings Bank Limited (MSB) established in 1910 by the colonial government are intact and yet to be achieved.

“But how can we achieve them if the Bank runs into private hands whose objective will be pure “profiteering”. Inquired hon. Kusamba who alleged the sale of Malawi Saving Bank Limited is propagated by few selfish individuals

Malawi government is planning to sale MSB for Conditionality of World Bank (WB) and International Monetary Fund (IMF), that Malawi Government should not be running businesses such as bank and that MSB Ltd does not meet the requirement of BASEL II instituted by the Reserve Bank of Malawi (a framework that has been put in place to assist banks manage financial risks well by maintaining a certain level of capital, currently a minimum capital for banks at an equivalent of US$5million) 

Dowa West Legislature has argued that WB and IMF condition is “fraudulent” and achaic type of reasoning which denies Government to ably discharge its duties of providing social-economic services to the rural communities which may appear unprofitable in the eyes of private hands. 

On BASEL II, he said MSB meets the minimum capital requirement but slightly falls short to meet the optimum capital requirement in order to meet the prescribed liquidity and capital adequacy ratios. He even indicated that Malawi can do without implementation of BASEL II just like neighboring economies that are stronger and better than Malawi’s economy.

“The question on the same is this “why was BASEL I jumped from implementation? Why is Reserve Bank of Malawi (RBM) forcing local banks to comply with BASEL II without an opportunity of orientation BASEL I would have offered.”

Hon. Kusamba also named “Accumulated Bad Debts” as major reasons that is eroding the bank’s Capital. With certainty he pointed “bulk of the bank’s non-performing loans” belong to Mulli Brothers Limited. 

He said the remedy is that Government should intervene by having Mulli Brothers Ltd repay the debt and that the Bank should take over the assets against which Mulli Brothers Limited loan was taken on.

 “It is an open secret, that the Mulli Brothers Ltd was granted the Loan in question when DPP was in power and now that DPP is in power again, the Government wants the Bank sold, Really?” queried the parliamentarian while concluding that there is no need for Malawians lose a National Treasure just because Government “completely lacks any political will” to mitigate on this questionable sale.

When debating the motion, Minister of Finance Goodall Gondwe clarified that it is not true that only Muli owe the bank as alleged by the member. He also promised an update of what is happening on that matter.

Goondwe irked members in the House when he mentioned that the matter of selling the bank at this time can only best be handled by lawyers and not National Assembly. “This is a legal matter it is not as easy as you think” 

Without delay, Salima South Parliamentarian hon. Uladi Mussa rise on point of order “The statement from the minister to say parliament is useless leaves a lot to be desired” he said, “Does the Minister know that parliament can impeach president? What is Malawi Savings Bank?”

Surprisingly, Leader of House Hon. Francis Kasaila also registered his support against sale of the bank “We in the business Committee of the house agreed that we need to bring this issue in the House so that the sale of the bank is done in transparent process.” He added that People from his Constituency are also against the sale of the bank.

Other parliamentarians including Salima North West, Jessie Kabwira and Salima Central, Felix Jumbe, in support of the motion as moved by Dowa West, said Malawi has been ranked one of the poorest countries because of such poor decisions which robe citizens “greatest treasure”. 

Goodall Optimistic of Uninterrupted Service Delivery in Government As National Assembly Passes 2014/2015 Supplementary Budget

Goodall Optimistic of Uninterrupted Service Delivery in Government As National Assembly Passes 2014/2015 Supplementary Budget

Gondwe

Minister of Finance Economic Planning and Development hon. Goodall Gondwe is certain that passing of the 2014/2015 Supplementary Budget on Tuesday will enable government Ministries and Departments to work effectively

In an interview immediately after the National Assembly passed Supplementary Appropriation bill of 2014/2015 financial year, excited Gondwe said passing of this bill has served some of the ministries and departments that were almost runout of funds.

 "If we didn't have it there would have been problems, because there are some votes which are very important but did not have enough money therefore it means that they would not have been performing."

He said "Now that they have money every ministry should be able to perform, they cannot say they are unable to perform because the money is not available."

The finance minister, added that his two months labour has finally paid off.

The National Assembly has authorized the government to use total sum of sum of K769.2 billion following passing of the Supplementary Appropriation Bill of 2014/2015 financial year.

In the just passed Supplementary budget, government was seeking an additional resources amounting to K32 billion.

Allocations to Directorate of Public Prosecution and State Advocate (DPP office) and Legal Aid have been passed with amendment while Road Fund Administration vote which was deferred on Friday has been passed without any alteration.

The adjustment made by the Minister of Finance on the votes was to maintain the resource allocation as approved in the budget.  Therefore resources for DPP office have been sustained to K495.7 million and not revised K536 million while Legal Affairs Department vote has been retained as approved provision of K227.3 million and not revised K210.4 million.

The amendment has been reached upon following member's from opposition benches proposal that the two institutions be sufficiently funded for the effective prosecution of the ongoing cases particularly of Cashgate and enabling less privileged Malawians to access to justice.