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”. 

PSC Blame Govt On Parliamentary Staff Strike

PSC Blame Govt On Parliamentary Staff Strike

Striking worker carrying banner of 24% pay

The Parliamentary Service Commission (PSC) has accused ”The Executive” for being not serious with views of the National Assembly representatives when Parliamentary Staff were demanding 24% salary hike.

The report of the PSC to Parliament on the Parliamentary Staff strike staged from February 3rd and 4th, 2015, has concluded that during negotiations on the matter, Government did not take seriously the grievances presented by the Parliamentary Staff representatives a development which led to the strike of workers.

“It was noted that even after being told of the serious challenges that Parliamentary Staff endure, they were not ready to offer solutions” claims the report presented on Thursday evening by Lilongwe Msozi South, Commissioner Hon. Vitus Dzoole Mwale.

“All what they were propagating was the issue of salary harmonization. This is what annoyed parliamentary Staff when communicated of the outcome the meeting because they felt that the issue of salary harmonization is being done against the prevailing Laws of Malawi; namely Parliamentary Service Act, which establishes the Service under an own Commission” 

The Commission has therefore recommended government the importance of attaching seriousness to discussions if strikes of such nature are to be avoided

“In future” whenever there are issues to be discussed between the two parties, PSC said Parliament is of the view that commitment to dialogue is the only way to go to prevent the situations escalating into strikes thereby disturbing Government Business.

The Parliamentary Commission is the body corporate that is mandated to look into the Conditions of Service for Members of Staff backed by Section 20 of the Parliamentary Service Act No. 35 of 1998. Current membership is chaired by Speaker of National Assembly Hon. Richard Msowoya and has other four members 

Negotiations for pay rise for the Parliamentary Staff began in 2014 when workers realized that their Conditions of Service were last revised in 2001. Parliamentary Service Commission determined a 24% salary increment and a letter was send to Department of Human Resources Management and Development on 12th November 2014 to effect the implementation of the salary increment as approved by the Commission.

However Government made an offer reflecting an average of 6% increment which the Parliamentary Staff Union categorically refused to accept. Then negotiations were held for so many times until Government on 2nd February 2015, approved an average increment of 18%, an offer which was also rebuffed by the Union consequently resolved to proceed with the strike until 24% was given.

On 4th February 2015, Government rescinded its earlier decision and committed to give Parliamentary Staff an increment of 24% in phases where phase one government will be paying 18%. The remaining 6% will be paid in arrears during next budget year in July and the matter was put on writing by the Deputy Chief Secretary to the Government Mr. Willie Samute.

Malawi President Asks Malawian Men and Boys “Join Me in solidarity to achieve gender equality and women empowerment”;

Pres Mutharika Launch He for She Campaign

Mutharika

The Malawi State President Professor Arthur Peter Mutharika has called all men and boys to be the champions for gender equality and women empowerment campaign dubbed ‘He for She Campaign’ which has been launched on Thursday at Parliament Building in the capital Lilongwe.

‘He for She Campaign’ a UN Women solidarity movement for gender equality seeks to encourage Malawian men and boys to support and empower women in all aspects of life in order to gender based violence.

Speaking at the launch marking the kick start of the campaign President Mutharika said the campaign has come at a right time because it will strength his “government drive and commitment to gender equality and women empowerment.” Adding that it also provides opportunity for resourcelization of men and boys to support and promote women and girls empowerment.

As he officially launched the campaign Mutharika called upon men and boys in Malawi to join him in solidarity to achieve gender equality and women empowerment

“I am calling upon all men and boys to be champions for ‘He for She Campaign’,” he said “I am Champion number one and I expect all men and boys in Malawi to join me” and later added “Real men should commit themselves by signing the He for She Campaign!”

The Malawi president has emphasized that women empowerment is not only a woman’s problem but it is a human rights issue which calls for full support and participation of “all men and boys”

He reiterated his government commitment to achieve provisions of the Gender Equality Act, SADC Protocol on Gender and Development and African Union Charter for the Rights of Women.

Mutharika

The Malawi leader who has labeled himself as ‘Champion number one’ for ‘He for She Campaign’ urged Ministry of Gender, Children, Disability and Social Welfare to ensure that 2015 year of women be marked with number of activities which promotes gender equality and women empowerment and the rights as Africa moves towards achievement of 2063 African Union Agenda which aims at narrowing the gap between men and women.

Mutharika acknowledged with sadness the existence of gap between men and women in various sectors including education, employment sector and politics “It is also unfortunate that men and boys tend to strongly oppose the efforts being made to level the playing field for equal competition”

“I urge every Malawian man and boy in particular to reverse the trend and we should be the ones to encourage our sisters, daughters and mothers and aunts to carry the mantle and run ahead of us.”

He emphasized that gender equality and women empowerment is the tool for achieving the sustainable development of Malawi. He added that various institutions including parliament and civil society are the conduits for a conducive legal and policy environment for the effective efficient attainment of gender equality and women empowerment in Malawi.

Before making his speech President Mutharika, followed by his vice Saulos Chilima, Leader of Opposition Lazarus Chakwera, male Cabinet Ministers, Legislatures and all men present at the event signed a campaign pledged which reads “I Promise never to commit, condone, or remain silent about violence against girls. I promise to promote gender equality and women’s empowerment”

Mutharika said for signing the pledge he is committed to promote gender equality and women empowerment “This gesture I face my zeal to ensure that women and men are equal” in all sectors of life.

Alice Harding Shackelford a country representative for UN Women in Malawi also emphasized that Gender equality is everyone’s and every government’s business for the

“Gender equality is a must for economic development, leaving 50% out of the cohesion is not a smart economy” she said, adding that women and girls be empowered and protected from any forms of gender based violence hence men should take lead.

The ‘He for She campaign’ is being represented with purple color for Loyalty and Peace, White color for Purity and Love and Red color for ‘no’ to gender violence.

Malawi National Assembly Passes Trafficking in Persons Bill

Malawi National Assembly Passes Trafficking in Persons Bill

The Malawi National Assembly on Wednesday afternoon passed Trafficking in Persons Bill.

Passing of the bill gives Malawians hope of an end or reduction of cases of human trafficking which have been on the increase due to lack of specific legislation to curb such illegal practice and porous borders . 

Recent media reports indicate not long ago this year, 13 children the youngest being 6 years old were trafficked from Zomba to Mozambique. And in Phalombe district, Police have been involved in rescue operations with Mozambican authorities where more than 124 children have been rescued and it is alleged that some of these had their genitals mutilated.

A lot of children and girls in Malawi have been vulnerable to trafficking due to poverty, domestic violence and child-headed homes as well as lack of economic opportunities. Such trafficked children have been experiencing various forms of exploitation including forced labour, forced prostitution, domestic slavery and body organs.

Minister of Home Affairs and Internal Security Hon. Paul Chibingu when presenting the Bill in the House emphasized that the bill will address number of issues that emerged due to lack of proper law. He said the Bill seeks to protect and promote rights of vulnerable people especially children and girls who are the most target of traffickers who uses deception or force for the purpose of exploitation.

Hon Chibingu indicated that the legislation has several stiffer penalties including imprisonment sentences which some of the longest ones are more than 20 years of imprisonment. He said such penalties will effectively protect children of Malawi from being trafficked as it has been the case. 

Since Malawi was the only country in the SADC region without proper legislation on Trafficking, the Minister further said when the bill is enacted into law there will be a better collaboration between Malawi and its neighboring countries in combating trafficking as well as in prosecution of such cases.

“This bill will assist the country especially in our courts, they have been having problems in dealing with human trafficking cases just because we had no proper law of governing courts in terms of passing sentences” said Chibingu “But this time around, once this bill becomes a law our courts will have a uniform way of discharging the justice and imposing penalties for to be offenders.”

Spokespersons for political parties in the House, from Malawi Congress Party (MCP), People’s Party (PP) and United Democratic Front (UDF) all supported the bill.

During the general debate some members while supporting the bill they also raised a number of issues among them on the need to strengthen security in all border districts where human trafficking is rampant and that issuing of national identification cards is necessary.

But the Internal Security Minister has assured parliamentarians that government is making sure that security is tight in all the districts and that before end of 2015 government will commence issuing national identity cards as another way of preventing human trafficking.

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.

National Assembly Passes 2014/2015 Supplementary Budget: Two Amendment made to DPP, Legal Aid Votes

National Assembly Passes 2014/2015 Supplementary Budget: Two Amendment made to DPP, Legal Aid Votes

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.

Excited Goodall Gondwe in an interview said his two months labour has finally paid off. He said passing of this bill will help government to be effective 

“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. 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.”

Blantyre City-Central Legislature Themba Mkandawire Manhandles An Usher in Parliament Chambers

Blantyre City-Central Legislature Themba Mkandawire Manhandles An Usher in Parliament Chambers 

The National Assembly was on the afternoon of Tuesday turned into a torture camp when an Honorable Member for Blantyre City-Central Constituency, Themba Mkandawire physically manhandled a helpless Head of Usher’s in parliament.

The assault of a man identified as Jones Sabola who began work in 1989 as a Parliamentary Usher (Person responsible in delivering documents and passing quick notes for legislatures inside parliament), followed misunderstanding over distribution of calendars which the Usher together with his colleagues was distributing to members in the House immediately when the House was suspended for a lunch break.

According to eye witness and the victim himself, Hon. Mkandawire was insisting to get two calendars from already allocated one calendar per parliamentarian. Usher’s declined to give Mkandawire another calendar for fear that accepting his demand will deprive other parliamentarians of getting their calendar. 

Unfortunately, Usher’s explanation proved to be futile as Hon Mkandawire launched an attack at Sabola by pulling his necktie and strangled him in the process. The charged parliamentarian then sent several punches in defenseless Sabola’s stomach and headbutted him.

“The combination of the heavy punches and headbutt, sent me down on the floor and I smashed against the chair in the process.” lamented Sabola whose claim was also approved by his several other colleagues who eye witnessed the event.

As I was speaking to the victim who was yet to go to the hospital complained much about headache and stomach pains.

One of the Usher’s said “We respect and treat everyone (members of parliament) with their dignity but we wondered how this parliamentarian mistreated our leader”, and continued “This is the first time in the history of Malawi parliament and we are very unhappy” 

It was an apology and assurance that such a practice was uncalled-for from Leader of House in the National Assembly Hon Francis Lazaro Kasaila on behalf of government that calmed down Parliamentary Usher’s who were about to go on strike. 

When approached to comment over his conduct, Mkandawire neither admitted nor denied to have beaten up the Usher and instead queried on who had told this reporter that he had done what he was being asked about. Before he could get any reply, he angrily walked away towards the exit, murmuring that he was too bored to remain within parliament for the remainder of the afternoon.

Parliament has taken up the matter and Usher’s have been assured of their safety and respect by every legislator.

“We will follow it up and make sure that something of this sought never happens again. The honorable speaker will take up the matter with the concerned member. But as government we have taken note of it we are going to find out what exactly happened and from there we will make sure that our colleague is properly cautioned that, that is not the way we want members to behave in as far as taking care of Parliament staff is concerned.” Said Kasaila

“We value their contribution, without them our work would have been very difficult so it is a very unfortunate incident and regrettable, but let me assure the nation that the appropriate action will be taken and this incident will not happen again” said Kasaila who explained that the disciplinary action will be handled by the Speaker. 

He added that the Democratic Progressive Party (DPP) which Mkandawire belongs to, will also take its appropriate measure on his misconduct, “As government we are concerned and we are going to take it up” 

Kabwira

When the house convened after short suspension for a tea break Honorable member for Salima North West Jessie Kabwira took the matter into the chamber. While condemning the act, Kabwira asked the House to assure Usher’s of their protection as they carry out duties inside the chamber.

But Leader of House hon. Kasaila repeated that government was serious about the incident and will not condone the behavior of the member and appropriate measure will be taken.

Later, Hon. Vitus Dzoole Mwale a Lilongwe Msozi South legislator said “This is a very serious issue, as honorable house can the name of this member be announced here for people in his constituency to know what he is doing here?”

However, guidance from the First Deputy Speaker Hon. Esther Mcheka Chilenje and the Leader of house blocked continuation of the issue when the explanation was made that the Speaker of National Assembly is handling the matter.


(Munthu Wakuda Leo contributed part of the information in this story)