Invest In Large Scale Farmers - Opposition Parties

Opposition Parties in the National Assembly says Malawi can eradicate its perennial food shortages if Agricultural programs and resources are invested to large-scale farmers and not resource poor farmers.

The observation follows US$60 million loan authorization bill on International Fund for Agriculture Development Programme for Rural Irrigation Development which has been passed by Parliament on Tuesday evening where the main beneficiaries in the loan are 19, 500 poor households from number of districts across the country particularly in most areas affected by drought and 12, 300 hectares will be under irrigation through the project.

House Adopts Motion To Allow Water Boards Drill, Manage Boreholes In Rural Areas

Jumbe: brought the motion

The Malawi National Assembly has adopted a motion that will enable Water Boards provide water to rural areas through drilling and management of boreholes.

Salima Central legislator, Felix Jumbe presented the motion seeking amendment of Water Works Act of 1995 of Act No. 17 Section 6 which gives Water Boards jurisdiction to do all water works management and distribution in designated urban areas.

Malawi Parliament Adopts Hemp Cultivation Motion

How Malawi Economy Wins Through Industrial Hemp

Industrial Hemp Farm

In a historic way, the Malawi National Assembly on Thursday, 16^th June 2016, adopted a motion legalizing the cultivation of the Industrial Hemp for its economic and health benefits.

Ntchisi North Legislator, Boniface Kadzamira presented the motion which has been appearing in the Order Paper since in February this year but the motion failed to be debated.

Jumbe Welcome Mutharika Plans For Agriculture

Jumbe

Chairperson for Parliamentary Committee on Agriculture, Irrigation and Water Development says President Peter Mutharika emphasis to intensify irrigation agriculture is right direction to make the country free of food shortage problems.

Felix Jumbe, Member of Parliament for Salima Central, however, said the country can completely eradicate the hunger if more funds are allocated to agriculture sector in this 2016/2017 National Budget for purpose of procuring food for people facing hunger this year and for this years crop production and investments in irrigation.

President Mutharika when addressing the National Assembly on Friday, outlined that agriculture remains one of the key priorities for Government because of its significance to the economy and that the sector will be placed highest priority to ensure both national and household food security as well as support agro industries.

“Government has also invited interested private sector investors to undertake commercial irrigation farming in order to boost maize production beginning this year. The programme will also involve medium-scale farmers and smallholder farmers to either utilize their existing irrigation facilities or rent unutilized irrigable land.” He said adding that Government will guarantee to buy the maize produced through the National Food Reserve Agency 

“We will also prioritize the development of dams and boreholes to reduce dependence on rain-fed agriculture.” And went on to add that Government will revamp extension farmer linkages by deploying more Field Assistants across the country as well as adopt some legislations and policies to guide the sector

“Government continues to prioritize investment in the Greenbelt Initiative in order to increase productivity of selected high value crops” he added

This has excited Honorable Felix Jumbe who said “This is a realization that this country is agro based and our strength in terms of economic recovery will come from agriculture without agriculture there will be no recovery”

He advised that "we need to increase production in Agriculture" and that President was being "realistic" in his speech.

“However, that discovery [that agriculture is source of recovery] is not enough” he observed, “Because we now have to put our structures, our investments and our priorities in agriculture right, to ensure that we can really produce and realize our potential” 

Jumbe said this years he expects to see the 2016/2017 National Budget allocating more resources to Agriculture sector for averting hunger to be faced by an estimated population of 3 million people and for crop production for this year which will bring food for 2017 season. He therefore welcomed President remarks to invest in viable commercial farmers to begin to produce maize for food and export

“That is a very good move because we cannot rely on the production from resource poor farmers to produce for the country” he said

He also highlighted the importance of begining to look at the investment in the sectors infrastructure "If we are to do irrigation we need to do good damming. If you put a dam in Mvera on Lilongwe river it should be able to irrigate the whole district of Salima, such investments are the ones that are needed.”

“So we need to look at the capital investments, structural investments so that Malawi can begin to move and that will also mean organization investment; we are looking at structural organization changes.” He said citing President Mutharika recently remarks that Water Boards should begin to look at irrigation as “type of actions that need to be undertaken”

He then proposed that it would make sense if Agriculture budget gets more allocation of not less than K250 billion for Malawi to change. He suggested that out of this figure, K100 billion can be used to procure food and K100 billion for farming while K50 billion can be for capital investments.

Chitedze Research Station Be A Commission- Jumbe

Member of Parliament for Salima Central, Felix Jumbe says Malawi can enhance functions of Research Stations and also put to an end issues of inadequate funding for these institutions by turning Chitedze Research Station to become National Research Commission of Malawi. 

Jumbe also Chairperson for Parliamentary Committee on Agriculture, Food and Water Development, said in an interview that, at the moment Chitedze Research Station and all other research stations in the country are failing to function as it were in the past because of lack of Funding.

He said following the recent de-linking of Chitedze Research Station from Luanar turning the Research Stations as Authority will be the best way of improving effiencies than keeping them within Government Departments under Ministry of Agriculture.

The Research Stations in Malawi are among Government Departments under Ministry of Agriculture.

However, Hon Jumbe said there is need to reorganize these institutions whose organization structures were designed in 1960’s for them to deliver with efficiency at this time.

He therefore said the best alternative to the funding for research stations and ensure efficiency is to make them a standalone institution which can carry out agricultural research tasks for private sector at a fee. 

“We would rather want to see Chitedze Research Station becoming a National Research Commission of Malawi that would cover, Lunyangwa, Bvumbwe and all the research stations to be under their control” said Jumbe

He said other countries like Zambia and Kenya have done the same.

“If Chitedze become a Commission, will enable it to interface with private sector undertake work of Private sector on payment basis and make them be able to make money own their own.” He said 

“Chitedze Research Station is not functioning as it were in the past because of lack of Funding. But, to me lack of funding is lack of planning and lack of thinking; that we need to reform Chitedze and other research stations so that they could be operating own their own.

Chitedze has got a lot of land and capacity. They can undertake research for different companies on different fields and this can be at a fee.” 

He emphasize that this will help government agenda of breeding quality seeds and improved varieties and breed of animals.

He also said his committee will take this matter further by interface with the Minister to make him understand its importance so that the ministry can make a proposal of turning all the Research stations to become Commission.

National Assembly Resolution Stoping Secondary, University Fees Hike Ends In Legal Dilema

The National Assembly on Thursday moved a motion stopping the new fees regime in Secondary Schools and Universities.

However, it remains uncertain if the decision is likely to take effect due to legality of the action and its acceptance by the Government Executive.

Salima Central legislature, Felix Jumbe made proposal that the House resolves postponement of recently announced fees hike in Secondary schools and Universities since the majority in rural areas cannot afford them due to current economic problems. 

"Considering that the majority, especially those in the rural areas are facing economic hardships responding to the poor macro-economic situation, the House resolves that school fees hike for both Secondary and Universities be postponed until Government endeavors to improve the income per capita of the people”  said Jumbe when moving the motion.

Several members who contributed on the floor from opposition side including Jessie Kabwila said the hiking of fees is likely to undermine girls education. She said it was wrong to introduce such fees in the year people are facing hunger. She therefore maintained that this will encourage prostitution among girls from poor families and early pregnancies, increase in school dropouts.

Kabwila further said this fruastrates government efforts of promoting girl child education and empowerment because most of the rural households cannot afford current exorbitant of fees.

Machinga East legislature Esther Jolobala described the hiking of fees at this time as “most horrible Christmas package” and that government was blind when making the decision.

Jolobala "blind government" remarks were withdrawn when the Speaker considered them as unparliamentary even if she used them figuratively. Her remarks also stunned government bench where the independent legislature is seats. However, in her introductory remarks had indicated that she was going to speak what is good for Malawians and not because of which side in the House she belongs to.

Later the house made a resolution that there be postponement of the hiking of fees but with much opposition by Government bench.

In an interview, Salima Central legislature, Felix Jumbe said the decision means Government will have to postpone the hiking of fees at this time being a year the country is facing numerous problems.

“We are not saying that the Government should not increase but for this year they need to postpone until the economic situation of the people has improved." He said 

"Poverty is ruling this country, there is dire poverty which is visible everywhere you go. Majority of household have no means to make money, it is difficult even to get K5 thousand. People are struggling even to get maize from ADMARC depots.

In my constituency for example at Mtonga Market, I found a queue of people with small plates in their hands waiting to buy maize and this maize they are waiting to buy is only a 2kg. and these are people buying 2kg they are six in their family but they don’t have money. And now can we say pay school fees? That would be like we are bringing second colonialism to these people and this colonialism by fellow African. And that is why we are saying please postpone the hike of school fees.” Said Jumbe

However, this is different from how Government views the decision. 

Leader of House, Francis Kasaila maintains the debate was unlawful as the House in its resolution has decided to override laws that are outside it mandate.


He said to say that the House has postponed the fees regime will "depends" on ones interpretations on that. "The question are that, does the House have mandate to decide how much for example the Catholic University supposed to be charging? Do they have their own mandate which guides that? Similarly we have a lot of private schools in the country, Kamuzu Academy for example. Can the Assembly decide how much Kamuzu Academy should be charging? These are questions that have to be answered.

Probably lawyers will do their work to   and decide whether this is enforceable or not” said Kasaila

Although Kasaila said the resolution will be considered by the President and its cabinet after thorough consultation but said could not determine what would be a likely decision.


He even questioned legality of brining the motion in the House

“All the standing orders were violated. It is very clear that a motion according to standing orders, was supposed to be debated by the Business Committee first before it is presented in the House. That was not done.

I don’t believe the speaker has powers to vary any of our standing orders own his own. That was supposed to be done in the Chamber. A motion should have been put to say we want to vary this because it did not meet this requirement that was not done but they decided to proceed. 

What was done was all irregular” Said Kasaila

“Unfortunately we know, because of politics people want to be seen that they stand for the poor " He added

This matter faced rejection by Government MP’s and several attempts to bar the motion already appearing on the Order Paper from being discussed were made by the Leader of House, Francis Kasaila who insisted that the matter was brought illegally and was never authorized by the Business Committee of the House.

To the contrary, the matter was well received by two major opposition parties in the House PP and MCP who insisted to debate although it was brought with immediate notice since it was a matter of urgency.

Ealier to end the matter, Second Deputy Speaker Clement Chiwaya resolved that Business Committee of the House should meet and suspended proceedings.

Back from the emergency meeting, Kasaila insisted before Speaker Richard Msowoya that Government was against the debate on the motion citing that apart from irregularities over how the issue was brought, the Houses was also not mandated to decide on school fees for private institutions as the motion did not specific that the matter was for only Public schools.

Although the speaker to ruled that the matter be discussed but Justice and Constitution Affairs Minister Samuel Tembenu did indicate and insisted that the matter was outside constitutional mandate of the House to debate on the issue which was clear that the authority to decide on school fees vests in the bodies of the schools as stipulated in the Act and regulations that govern the Schools.

Chiyembekeza Fails To Account For Questionable Sale Of Tractors, Maize Sheller’s

• Tractors meant for farm mechanisation by smallholder farmers were sold to former Vice President, present and former cabinet ministers, PS, Legislatures including Speaker and some companies

• Agriculture Minister failed to disclose amount realised, price for each tractor and Maize Shellers and how the realised funds were used

• Parliamentarians demands names of owners of companies that bought some tractors and views the sale as political

Kamulepo

Some opposition legislature’s have demanded total accountability and reasons that led to the sale of part of 177 Tractors and 144 Maize Shellers meant for farm mechanisation by smallholder farmers.

Members of Parliament (MP’s) also wants to know actual amount realised and how the proceeds from the sale of tractors and maize shellers were used including value of each machinery during the sale versus cost of buying of each item by Government some years ago.

However, of Minister Agriculture, Irrigation and Water Development responsible to answer all those questions was so furious at the inquisitive legislatures and only gave what he said was what the House needed to know about the matter.

The matter was brought in the House following the question from Honourable Member for Rumphi East, Kamulepo Kalua to Allan Chiyembekeza, Minister of Agriculture on the Status and whereabouts of the Tractors and Maize Shellers which the country acquired sometime back from India. 

The legislature said wanted to know why the country’s smallholder farmers are still failing to do their farming using modern equipments especially tractors.

In his detailed account of number of the matter Minister said a total of 77 tractors went to Government Institutions which are ADD’s across the country; Karonga ADD got 6 tractors, Mzuzu ADD got 13 tractors, Kasungu got 15 tractors, Salima ADD got 6 tractors, Lilongwe ADD got 11 tractors, Machinga ADD got 8 tractors, Blantyre ADD got 11 tractors and Shire Valley ADD got 7 tractors. 

Chiyembekeza said the second part involves 31 Tractors, 13 Maize Shellers, 23 Tripping Shellers and 8 Seed Cam Fertiliser Applicators that were issued out to Government Departments and Institutions. These were; Crops Department (Horticulture Farm), Natural Resources College, National Food Reserve Agency, Department of Agriculture Research, Department of Animal Health, Lilongwe University of Agriculture and Natural Resources and Green Belt Initiative.

But the house was in disarray when he mentioned that some tractors were sold to companies, individuals and some farming associations without clear explanation of what prompted the sale and how that profited Government.

Chiyembekeza said, Tractors and implements sold in the first half of the offer went to 31 individuals and businesses. Among them Government officers who includes; Clement Kumbemba (current Executive Director of Malawi Investment Trade Centre MITC) and Rashid Mtelera (from OPC). Companies includes; Anachuma Holdings, IS Fred Limited, Green Leaf Association, Kasinthula Cane Growers and Wuli Trading Company.

In the second half sold to individuals including Francis Kasaila Minister of Transport, Honorable Khumbo Kachali former Vice President, Godfrey Ching’oma Malawi Congress Party MP, Richard Msowoya current speaker of National Assembly and Samuel Madula from OPC among others. 

But the minister was not clear to demands on how funds were used, what exactly lead to the sale of the tractors and who authorised it.

Salima Central legislature Felix Jumbe proposed that since some names are of high rank officials from Government there should be an inquiry as to how they conformed to the procurement system.

Responding on this, Agriculture Minister said the equipments were sold to Malawians after normal tender was opened to anyone and applications were reviewed. He said some Government Ministries and departments were represented in a Committee that was chaired by Office of President and Cabinet (OPC).

He said the committee made equipment evaluation and restricted nobody from the floated tender. But mostly, he said small and medium enterprises with a minimum land of 5 hectares were eligible to buy.

However, Kamulepo Kalua who brought the matter said was not satisfied with the explanation 

He said, he still wants names of directors of some companies named and suspects that those names have been deliberately concealed to prevent exposure of some top government officials.

Kamulepo emphasised that the sale was worrisome considering that the tractors were acquired through loan to support smallholder farmers do farm mechanisation to help country’s food security.

Leader of House, Francis Kasaila said Kamulepo is continously making very serious allegations which are demeaning the president by alleging that President is doing corruption and that he recently bought some vehicles dubiously. He asked the member to present his evidence by Friday or withdraw his statement.

However, Kamulepo said he did not mention President and he is not going to withdral his remarks because in his remarks he never metioned President. Instead he said he mentioned Presidential assistance at State House as the ones who are among people who bought the tractors and recently bought the said vehicles.

However, Kasaila insisted on his point saying the member knows that Presidential assistance do not stay at state house and therefore mentioning State House he meant president at all cost.

This forced Second Deputy Speaker Clement Chiwaya to make ruling that Kalua should bring the evidence to the House on Friday.

Later Salima South Uladi Mussa rose and complained that the sale never saved the purpose of the loan.

This was echoed by Malawi Congress Party Chief Whip Lobin Lowe who inquired about value of each tractor when sold versus cost of buying it.

Members insisted to get clear information    and it was that insistence which forced AgricuAgriculture Minister to read the full list of beneficiaries. However members still feel that the names are doctored and that the tractors sale was against the purpose of buying them.

Earlier, the minister indicated that the tractors when procured in 2011 were supposed to increase the existing tractors in ADD's and offer some tractors to farmer groups and Malawian farmers through sale to increase ownership of tractors.

He thereforw said 69 tractors were offered for sale in 2014 and later sold 37 other tractors early this year by tender.

Full list

First half sale of tractors and trailers

Clement Kumbemba
Peter Zimba
Anachuma Holdings
IS Fred Limited
Balaka Market Resource Centre
Prince Nyirenda
Green Leaf Association
Alfred Nkhono
FISD
R.E. Enterprises
Mirriam Pamam
ISAM
Invesco Farms
Kasinthula Cane Growers
Wuli Trading Company
Mishek G Essau
Spencer W. D Ng’oma
Peter H Shawa
Mulli Enterprises
J. Manong’a
A. Y. Namaona
Grey Nyandule Phiri
Christine Mtambo
Moffat J. Chitimbe
Dr. I Benence
Hillario R. Chimota
Bright B. Kumwembe
Gerald A. Kachepa
Steve Donda
W. G. Lipita
Rashid R. Mtelera

Tractors and Implements sold in the second half

Tisi Nthukwa
Francis Enoch Juwawo
Richard Makondi
Tapiwa Phiri
James Maseko
Ronny Phiri
Mrs. Dorothy Mataya
Ms. Mada Sambo
Francis I Kasaila
M. F Kanjere
B.B.C Majoni
Ben Botolo
Thomas Makiwa
Arthur A. M. Liwonga
Hon. Khumbo Kachali
Peter Fret
Godfrey P. N. Ching’oma
Dorothy Chimatiro
Grant C. Kapiya
M. I Chikuntha
Newby Henry Kumwembe
Chisomo Farms
Ephraim Chiume
William Kantayeni
Dr. Lovemore
Mr. I. J Luhanga
Mrs. I. J Luhanga
Hon. Richard Msowoya
Nditse V. Kampane
Tcholose Simwaka
 Margaret Loka Mauwa
Mr. Peter K. Simbani
D. G K. Mtupa
James C. G. Ali
Eddie Makungwa
Samuel Madula
Charles Kambauwa

ARET, Chitedze Research De-linked From LUANAR

The National Assembly passes the bill detaching Agriculture Research Trust (ARET) and Chitedze Research Station from the Lilongwe University oAgriculture and Natural Resources (LUANAR).

The two delinked institutions and the two colleges of Bunda College of Agriculture and Natural Resources College were joined during Bingu Wa Mutharika administration forming Lilongwe University of Agriculture and Natural Resources (LUANAR).

Minister of Agriculture Irrigation and Water Development, Allan Chiyembekeza said during the Second Reading of the Bill 'Lilongwe University of Agriculture and Natural Resources (Amendment)', that excluding the two institutions from forming LUANAR the country stands to benefit more.  

"Despite delinking of Chitedze and ARET from LUANAR, there will be strong collaboration between these two institutions and LUANAR on research technology, dissemination as well as teaching.

Staff from these institutions should be allowed to teach at LUANAR, conduct research and supervising research but with agreed time allocations and associated rewards while retaining their core functions over bride research to address national agricultural research problems." Said Chiyembekeza

He further told the house that the amended legislation apart from enabling ARET and Chitedze Research Station maintain their identities and core functions, said ARET will return its mandate of promoting tobacco production and remain as a centre of excellence for tobacco and no loss of jobs at both institutions;

"Government control of the National Agriculture Research Agenda will be maintained, the cost of relocating Regulatory and Technical the functions from Chitedze Research Station and ARET and Re-orientation of the other research stations will be avoided and the future of the international Agriculture Research Centres that are based at Chitedze Research Station will also be ensured." he added

The minister mentioned that integrating Chitedze Research Station into LUANAR would have brought more negative implications which includes: loss of Government control of the National Agriculture Research Agenda; High cost of relocating Regulatory, Technical and the Advisory functions from Chitedze; 

“Shifting priority for Agriculture Research, re-orientation of the rest of the research stations in the ministry, uncertainty over the livestock of research and infrastructure and uncertainty over the future on the international agriculture research centres that are housed at Chitedze Research centre." He said

The minister also noted that Government created ARET as the model for Public Private Partnership which the country needs to learn from and replicate to continue championing in the production of tobacco in this country.

Responding to the bill, the Malawi Congress Party (MCP) spokesperson on Agriculture, Felix Jumbe made no objection to the provisions in the bill.

However, Jumbe said; "Including Chitedze in LUANAR it was a quite an anomaly. We would rather wish Chitedze become a Commission and excluded from Ministry of Agriculture"

Similarly, People's Party (PP) shadow Minister of Agriculture, Dr. James Munthali supported the bill but taunted the Democratic Progressive Party (DPP) Government for making a u-turn over the decision it made some years ago.

ARET was established in 1995 through a Trust deed with the ministry of Agriculture, Irrigation and Water Development and Tobacco Association of Malawi (TAMA) as donors and trustees. TAMA and some stakeholders in the tobacco industry resisted the integration of ARET into LUANAR.

Chairperson on Agriculture Committee Felix Jumbe Worried Over STECO, Chitakale Tea Factories Takeover By Mulli; Tea Farmers Petition Parliament

The Chairperson for Parliamentary Committee on Agriculture, Irrigation and Water Development describes the use as collateral the two companies; STECO and Chitakale tea factories by Mulli Brothers and alleged takeover, blow to the farming sector.

Salima Central legislature was reacting to the petition sent to the National Assembly by the concerned Smallholder Tea Farmers from Mulanje and Thyolo districts who wants the House to help them prevent now sold Malawi Savings Bank (MSB) from selling the two tea companies and hand them over back to the farmers. 

MSB announced the sale of the two tea companies in a bid to recover the Billions of Kwacha’s that Mulli Brothers owes the bank. Mulli obtained loan worth Billions from the bank using the two companies as collateral but the concerned Smallholder farmers claims Mulli does not own STECO and Chitakale.

After receiving the petition on Thursday, Hon. Felix Jumbe Hon. Jumbe said as a farmer he is concerned that the problem is deliberate and so many other companies and organizations that should have been owned by farmers themselves were wrongly “taken in such format” citing David White Head and Dairiboard.  He said this is depriving farmers of realizing better income.

He noted that it is sad that Malawi government remains silence as businessmen are taking ignorance of farmers on issues, to enrich themselves saying issue at hand is one of it. 

Hon Jumbe promised that parliament “Will look into the circumstances which led to this situation for Mulli to use collateral of an asset which he was just a shareholder. Even for the change of hands from STECO to Mulli” 

He as well, assured that his committee together with relevant committees including Privatization Committee will investigate and come up with conclusion on circumstances that led to alleged illegal change of ownership of STECO and Chitakale tea factories by Mulli Brothers.

“The two companies were meant for farmers that when they grow their tea they should sell their leaf to the these companies with a view that when they add value, farmers would be benefiting more than just selling the green leaf” he observed

According to the Smallholder Tea Farmers petition, their majority shares were sold to an individual (Mulli) without consulting the will or majority (Smallholder Tea Farmers In Malawi) and as well, wondered why government allowed Mulli to get the two companies.

“We the voiceless farmers were disappointed regardless of pressure against the idea of the sale of the Smallholder facilities and eventually decided to be refugees in our own country and had to look for asylum in the private tea companies” claimed Wilfred Custom who led the petitioner’s

They demand that Malawi Savings Bank (MSB) now sold to FDH Holdings Limited, should exclude STECO and Chitakale in its proposed sale of Mulli Brothers assets since Mulli Brothers is just a partner. 

“Farmers wonder as to why Mulli Brothers used STECO and Chitakale as collateral for obtaining loan from MSB which never benefited the two companies.” He said 

“The proposed STECO and Chitakale remains an issue uncalled for, because the investor (Mulli Brothers) failed to run the two companies in more viable and profitable standard in the sense that he failed to service loans, he failed to pay farmers approximately K70 million for green leaf sales and bonuses” claimed Mr. Custom who added that Mulli has failed to publish audited accounts and implement the dividend policy among others that are in the MOU.

“Government should assist the smallholder farmers to reclaim the two companies and outsource transparent and dynamic management on contract to revamp the operations and finally hand over the companies to the Smallholder Tea Farmers” pleaded the group in the petition

The group has also asked government to revoke the existing Trust Deed of the Smallholder Tea Growers Trust and Smallholder Tea Company and replace with a Trust Deed which will empower growers to manage the company without political interference.   

According to the concerned farmers, there are 15000 smallholders in Malawi with 70% female representation with an average land holding size of 0.4 hectares.

Kamlepo Call For Peter Mutharika Resignation Over MSB Sale

There was a heated debate in the National Assembly after learning that the Malawi Savings Bank sale has been reached and the government has signed the deal with FDH Bank on Thursday morning.

The information reached the house in the afternoon and resulted into the early lunch break as members began to demand for more explanations from the government over the decision.

Immediately the house resumed sitting in the afternoon a lot of members of parliament including Uladi Mussa, member for Salima South asked why the Minister had decided to sell the bank yet the house had on Wednesday passed a motion which restricts sale of MSB instead, provide enough resources.

He even asked why the sale was done yet the president announced the suspension of the sale.

However Minister of Finance Goodall Gondwe said “Before we took this action president announced his decision that we can now go on with the sale.”

The national assembly passed resolution to halt to sale the bank when the committee on Budget and Finance on Wednesday brought in the house, a report which recommended government to use other avenues except sale of the bank

Rumphi East legislature, Hon. Kamlepo Kalua while wonder to whose interest did the President had announced the decision to sale the bank made a strong call that “Am therefore calling the resignation of the president of the Republic of Malawi Professor Peter Mutharika!

Chakwera

But Leader for the house in the National Assembly Francis Kasaila tried to rescue the president invain by saying “This is an executive decision on behalf of all Malawians” and added that the decision was legal

Leader of Opposition Hon. Lazarus Chakwera said, the decision to sale the bank was lack of transparency from beginning to end

He said the minds of the executive were made up to go for the decision and set aside loads of calls from the public.

He said people should expect more problems in future and the poor Malawian will pay the price.

He also bemoaned that the relevance of National Assembly on the matter was overlooked

There were emotions as the motion was being debated to the extent that the Deputy Speaker of the National Assembly Esther Chilenje pleaded for debate of the matter with “sober mind”

Chairperson for Agriculture in the National Assembly Hon. Felix Jumbe registerd his concern in the house saying the sale of MSB is a loss to Malawi’s strategic asset.

He even suggested that Malawi would have recapitalized the bank by asking people to contribute K20, 000 per person which would have raised over K50 billion.

“You are causing poverty to people of Malawi by selling the Malawi’s strategic assets” and pleaded for rescind of the decision 

Hon. Juliana Lunguzi

Dedza East Parliamentarian Juliana Lunguzi described the sale as one of the worst decision ever made and worried if the laws of the land are any important regarding that by requirement of the law the house had presented report which the whole house adopted and restricted the sale of the Bank. She then questioned the relevance of the existing laws.

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”.