Govt Promises Delayed Salaries Ready By Monday

Govt Promises Delayed Salaries Ready By Monday

Malawi Govt Court of Arm

Government of Malawi has assured Civil Servants that have failed to receive their November salaries to receive them by Monday next week.

The assurance was made on Friday in a press statement that salaries were generally processed on time and others started accessing their monthly pay by 27^th November, 2014, the official pay day.

However, the statement noted that “there might be a slight delay in the payment of salaries for some Civil Servants because of a technical problem with the Government Payment System at the Malawi Switch Centre (MALSWITCH)” (system used to transmit payment data from Government to Commercial Banks through Reserve Bank of Malawi.)

Secretary to Treasury Ronald Mangani who signed the statement says due to the technical problem at MALSWITCH which occurred on the eve of the 25^th November 2014, the Accountant General Department resorted to manually and physically transferring salaries to commercial banks “This initiative was necessary to minimise the delays that would have arisen.”

“The Government sincerely regrets this sad occurrence” and assured the affected Civil Servants that “every effort is being taken to ensure that they access their November 2014 salaries, latest by 8^th December 2014.”

The statement further informs the general public that in an isolated instance, some files from Ministry of Education, Science and Technology were duplicated whilst manually amalgamating the salaries files. The statement says the issue has been noted and corrective action taken to normalise the duplicates. 

“Government would like to re assure the general public and Civil Servants in particular, that the Payment System has been rectified and is now undergoing validation tests to ensure timely payment of future salaries.” Reads the statement

The Proposed Legislation on Chefs Act reduces Presidential Powers to Zero

The Proposed Legislation on Chefs Act reduces Presidential Powers to Zero

The Malawi Law Commission says has finalized the review process of Chiefs Act. The proposed legislation has made several changes particularly on cutting vast presidential powers provided in the current Act.

The President has been restricted from inaugurate, appoint, removal as well as elevating and creation of new offices of traditional leaders, in order to depoliticize institution of traditional leadership and reduce wrangles that have been frequent among royal families of which some of them remain unresolved up to date.

The special Commission observed that president mandate to appoint a traditional leader has attracted criticism in democratic Malawi, “This power is perceived to erode the independence and proper functioning of the institution of traditional leadership in view of the practice that has developed where political affiliation takes precedence despite the fact that the law requires prior consultations.”

“Therefore the commission has recommended that the president should cease to exercise such powers” Commissioner Stuart Naison Medson Ligomeka, deputy chairperson for the special Law Commission announced on Friday evening in Lilongwe, when presenting the findings and recommendations to the Media.

“Instead, the identification of a person who qualifies for appointment as Paramount Chief and Traditional Authority should be done by the royal family. The role of president shall be restricted to recognizing the person so identified by issuing a Certificate of Recognition.”

However to ensure no delay in the recognition of a traditional leader the commission suggest that where three months have elapsed since the time of notification the president shall be deemed to have recognized the appointment of a traditional leader.  

The proposed Act empowers Minister to preside over ceremonies of installation of Paramount Chief where Oath of Office shall be administered by the Registrar of High Court, but Paramount Chiefs shall install a Traditional Authority who shall install Sub Traditional leaders where Resident Magistrate shall administer Oath of Office.

The commission recommends the abolition of Senior Chiefs position which came into effect following an amendment of the Act in 1999. This encouraged Presidents to make several appointments without involving traditional leaders in the district as stipulated in the Act.

“The commission found such appointments of senior chiefs problematic. The appointment does not confer additional jurisdiction on a chief and the position of Senior Chief is personal to holder.” Said Commissioner Ligomeka

However the Commission indicates that current holders shall continue to serve as such.

The recommendations also indicated that status quo of permanent Paramount Chiefs (like Lundu, M’mbelwa, and Gomani) be maintained, because they are recognized by Act and history of the country. While those that are personal to holder shall remain personal to holder as there are reasons as to why those Paramount Chiefs hold their positions in this basis.

The commission proposes that powers to remove a traditional leader lie with royal family, the president should only recognize the removal from office and where applicable withdraw the Certificate of Recognition. However the president shall be deemed to have withdrawn a Certificate of Recognition where a period of three months has elapsed since he was notified of the removal of traditional leader.

The commission recommendations further suggest that the Act name be changed to “Traditional Leaders Act” for the title of the law to cover various cadres of traditional leadership.

The Chief’s Act was enacted into law in 29^th December 1967 and has been amended a number of times. This review followed several submissions made in 2007 to the Law Commission requesting a review of Chiefs Act (cap.22:03).

Beginning in 2009 the special Law Commission chaired by Anaclet Chipeta Justice of Special Appeal reviewed among others the role of traditional leaders in local and national life, accountability structures relating to the chieftaincy, succession and gender related issues in the Act.

According to Commissioner Ligomeka recommendations under this review “seeks to entrench democratic principles of transparency, accountability and gender sensitiveness in the institution of traditional leadership” and insulate the institution of traditional leadership from political manipulation.

The methodology involved among others invitation of submissions from members of the general public through notices in the local papers and in Gazette, regular meetings to scrutinize the Act section by section and National workshop to validate a subject the Commission’s findings and the recommendations.

Meanwhile Law Commissioner Gertrude Lynn Hiwa SC has urged government to spearhead enactment of the proposed legislation into law.

European Union through Democratic Governance Programme funded the programme and Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) also supported Law Commission with financial and technical support.

Kachere Publication Encourage Authors To Write In their Mother Tongue

Kachere Publication Encourage Authors To Write In their Mother Tongue 

A local publication, ‘Kachere Series Publications’ has encouraged writers and those dreaming to be authors to promote their mother languages by writing their works in their mother tongue.

A lot of Malawian authors writes their works in English language mostly spoken among the educated people and it is not understood by large population.

Hermann Mvula Deputy Director for Chanco Kachere Series Publication, said it is a good development to encourage people to write in Chichewa which is common among Malawians so that many people should read their works and understand the information they are bringing to the people.

Mvula observed that Malawi has very few authors in vernacular languages due to fear that people may not like their works. He said it is very important for upcoming authors to write their works using local languages that are understood by Malawians. He assured that publications like Kachere Series are ready to support anyone wishing to publish their work in any of Malawian Languages.

He therefore encouraged authors not to look-down upon themselves whenever they want to write book in their mother languages.

“I would encourage as many people as possible those who have ideas some of them have conceived their ideas but they have not put those into pen. I would encourage them to write them and seek appropriate publisher so that they can publish their thoughts. So their thoughts should not only be thoughts but they would be practical ideas that people would read them and become knowledgeable about what they want to write when it comes to kind of human and national development.” He said

“My word is to encourage those to seek publishers and of course Kachere is there to have that kind of service to the members of general public in Malawi in helping them to write good readable and workable materials.”

Mvula commended Mrs. Ebba Gondwe author of a recently published Kachere Series Chichewa Book titled ‘Kholo La Ngwiro”. He said Ebba Gondwe has become one of the very few Malawians who made a right decision by publishing her thoughts in Chichewa.

He said currently Kachere Publication house is publishing various types of books including; Monographs, Big and small books in various languages and authors should take advantage of this.

MCCI says Manufacturing Industry is the way to go

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) say the country can move forward economically if it adopt and priotise Industrialization and Manufacturing sector.

MCCCI has come clear that Malawi economy to succeed like China, Malasia among others it will have to be driven by the manufacturing sector, as it produces high value exportable goods, and maintains sustainable meaningful employment.

BAM ask government to create conducive environment for doing business

BAM ask government to create conducive environment for doing business

Misheck Esau CDH MD/CEO
 Picture taken from:
 www.cdh-malawi.com.

Bankers Association of Malawi (BAM) have asked government to create better conditions for business and investment so that Malawian businesses are not lag behind from what other business from other countries within the region are doing.

BAM president Mishek Esau made the call when presenting a topic ‘Doing business in Malawi: a financial sector perspective’ where he indicated two key annual reports on doing business by the World Economic Forum (Malawi: 132/144) and the World Bank (2015 Mw: 160/189) and the local key report produced by MCCCI have clearly shown that “Favourable conditions expected by the business community to be present in a country for business and investment to flourish in relation to other countries”

“We might do well this year and move a step, but also other countries are also on the move and that’s the most important thing. So we are in competition with each other” said BAM President Mishek Esau

“Countries are in competition with each other for foreign direct investment and also trade opportunities. Malawi needs to create a conducive environment to be able to compete on the world stage. Bankers are saying Malawi as a country we are too disorganised to compete on the World stage!”

BAM has among others mentioned that the country must improve on address challenges that business community are experiencing including unstable economic environment which makes long term planning problematic and cost of doing business which is too high. He in this respect mentioned high interest rates, high inflation rate and unstable exchange rate.

Esau said the solution is to create an enabling environment by a complete overhaul of monetary policy to one that reflects the realities, enhance fiscal discipline as well as reviewing of Monetary policy transmission mechanism.

BAM president also mentioned poor infrastructure of roads, energy, water and telecoms. He urged government to accelerate public sector investment programme through alternative ways of financing such as bond issues, Ring-fencing of statutory levies for investment like road levy, MAREP levy to service bond issues for development and invest in toll gates on roads where people must pay whenever they enter into a district or a city.

“Almost all commercial parastatals like Blantyre Water Board where we are experiencing frequent disruptions in water supplies can raise money in this way if they were well managed!” he said

BAM also indicated that there is under-developed capital market and that Security lapses is threatening confidence to businesses which MCCCI Chief Executive Officer Chancellor Kafera Panjira when making his presentation on ‘Cost of doing business’ also mentioned similar concerns including water disruptions particularly Blantyre Water Board, as areas consistently remain key constraints to economic development.

But speaking on some of these areas before engaging in camera discussions with the business community, President Mutharika gave hope to the business community that his government is trying to address these issues.

On security President Mutharika said “Recent high profile insecurity incidents may sow seeds of panic but this will not derail Government’s commitment to protect the economic interests of all companies against criminal activities.”

He said his government is making sure that security institutions have adequate resources “Additionally, Government will continue to enhance the capacity and professional competence of our security institutions to enable them to respond adequately to the security needs of the private sector.”

On Energy President Mutharika also mentioned that “Our Government will increase availability of reliable, sustainable and affordable energy. The current lack of access is one of the main obstacles for productivity growth and industrialisation. Therefore, this Government is in the process of enhancing the efficiency of the services of the Electricity Supply Corporation of Malawi (ESCOM) by separating its functions into electricity generation, distribution and marketing.”

He said “A US$ 350.7 million grant from the Millennium Challenge Corporation has been secured and is funding a Power Sector Revitalisation Project (PSRP). Furthermore, we are incentivising private sector companies to invest in the Energy sector through PPPs. At the end of this process, we shall see a thriving electricity sector that supplies enough energy to all Malawians.”

And concerns on infrastructure President Mutharika has assured the business community in the country that “Our government will improve transport infrastructure for traffic by road, rail and air and will prioritise those with economic drive.”

“We recognize that good transportation infrastructure can be a catalyst for agricultural development, industrialisation and trade. Therefore, this Government plans to improve road infrastructure through the resuscitation and construction of a number of roads, the rehabilitation of railway networks that can link all of Malawi to the Nacala corridor, and the construction and upgrading of international airports.”

“Government is committed to operationalize the Nsanje Inland Port. I am convinced that these projects, if successfully implemented, will significantly increase the attractiveness of Malawi as a destination for investors and tourists.” Said President Mutharika before engaging holding discussions with the business community in camera

President Mutharika declares war to tax noncompliance

President Mutharika declares war to tax noncompliance

The Malawi President Professor Arthur Peter Mutharika has warned that the law shall take its course on individuals that are running away from paying tax. He said his government is ready to pursue and track down any individual trying to avoid paying tax liability, and once found shall face the penalty of the law.

President Mutharika was speaking at Kamuzu palace in Lilongwe on Wednesday during the launch of Projects Compendium and National Dialogue on Private Sector Development.

The Projects Compendium is a compiled project opportunities available in Malawi which presents some of the immediate opportunities the Government is offering to both local and international investors to this country. The compendium was formed following his directive that the project opportunities available in Malawi be compiled so that investors are aware of the numerous investment opportunities Malawi offers.

But speaking on how his government is strengthening the economy and ensure that all taxable businesses and individuals are not escaping their required task, Mutharika said he will not tolerate any person who running from their tax liabilities.

“Let Malawians pay their taxes,” he said “and let Malawians not take money from Malawi to hide it outside.”

“From today I declare war on all Malawians who are evading taxes and who are taking money out of this country. Your days are numbered!” he underlined

President Mutharika therefore called on business communities and Malawians to partner with government and do their roles in sustaining the economy.

“As an economy let us focus on strategic directions hence priotise and match actions accordingly. Therefore let the manufacturing sector work beyond the domestic markets let government pursue the pro-business policies and regulations. Let the donors fulfil on their commitments let the general public contribute to the Malawi economy by enhancing productivity and promoting governance and the private sector takes up the challenges as the engine of growth.”

The president has promised good economic governance, security, avoid disruptive policy reversals by review of some unpredictability policies, fair competition by empowering Competition and Fair Trading Commission to fulfil its role, and make good Regulatory Environment so that it is easier and less costly to operate a formal business. He also said issues of energy, transport infrastructure and access to credit facilities will be worked out so that there is a very conducive environment for operating business in Malawi.

President Mutharika has declared this war few days after Malawi’s Former Budget Director Paul Mphwiyo, a business man Shiraz Ferreira and Nelson Kauwa were arrested over tax evasion.

BAM, MCCI wants Performance Contracts in Public Service

BAM, MCCI wants Performance Contracts in Public Service

The business community has asked President Professor Peter Mutharika to add to public sector reforms a term ‘Performance Contract’ to enable government track performance of every person working in public service and hold accountable to every state enterprise and parastatals.

The call was made on Wednesday evening at Kamuzu Palace in Lilongwe during the launch of Projects Compendium and National Dialogue on Private Sector Development a business community interface with the president where they discussed in camera with the President several challenges they are facing as well as outline ways to enhance good business environment.

Speaking before the meeting was held in camera, Bankers Association of Malawi (BAM) President Mishek Esau said lack of provisions that force state enterprises and Parastatals to periodically publish their performance, is a big challenge that is encouraging poor governance of such institutions and its employees.

He cited the Judiciary as one of the public service which is affecting Banks and other institutions when they try to access justice.

“We are facing slow justice system” he said “We need to improve the court system to make the work of courts more transparent.”

Esau said their proposed reforms on access to finance can see success if justice system is efficient “We would like to emphasise that the success of all these reforms also depends on the speed with which the justice system delivers judgments. We have the problem with this area your Excellency.”

If this is not dealt with he warned, “Our world rankings on doing business will not move because there is logjam in the courts. Nothing is happening. And the statistics on court cases that companies are waiting for is alarming.”

He therefore said Banks are proposing that President Mutharika should direct that there should be publication of judgments & injunctions delivered per judge and proposed that this could be done per half year. He added that, there could also be introduction of Performance contracts for judges just to ensure that judges are working hard.

BAM president also raised concern of poor governance in state enterprises and parastatal, “We believe this retard public and private sector development, lack of accountability is a major issue the result is everyone is a looser.”

“We reiterate the introduction of performance contracts for all state enterprises and parastatals and the publication of performance by state companies. One of the good example is what MRA (Malawi Revenue Authority) does. MRA publishes how well it has done in a month. So MRA is one such parastatal that is accountable to all of us. Is it because it deals with money? We are proposing that all the parastatals should account to all of us.” He said

“We need to introduce service charter for ministries. Ministries should account what they have done. We need to improve the work ethics in this country. Currently people don’t want to work, they want money” said Essau

Speaking on challenges affecting Private Sector by Malawi Confederation of Chambers of Commerce and Industry (MCCCI) Chief Executive Officer Mr. Chancellor Kaferapanjira also bemoaned on the same but dwelled much on administrative delays and said must be dealt with.

“I think every worker must be given targets and must be monitored in terms of achievement and must deliver. For whatever they paid, there must be a value for that kind of money. You cannot just keep people idle just coming to work without necessarily earning the money. Whatever some of us earn we actually proven that we have delivered the service in exchange.” said Kaferapanjira

“Thank you your Excellency for the public sector commission and we hope that after some time we will start seeing the results. But holding people and parastatals accountable, I think this is extremely important. Set targets and everyone must deliver!” he said