Short Term Plans, Good Weather Condition To Rebound Economy In A Year-Gondwe

Malawi exprerienced floods

Government says through number of strong measures being pursued and given good weather conditions this year, the country will resume economic stability within a short period of time.

Gondwe: Economy will normalise soon

Minister of Finance Goodall Gondwe, made the promise on Wednesday in the National Assembly when delivering a Ministerial Statement on the Economic Status of the country. 

He repeated several times in his speech that the basic origin of the current destabilized macro-economic environment was huge 49% currency devaluation, free float of exchange rate in May 2013 and continued withholding of the budgetary support by donors.

“Within the public sector, withdrawal of budgetary aid in 2013-2015 exacerbated this poor economic situation resulting in excessive government domestic borrowing (of up to K122 billion) and huge payment of arrears (of up to K155 billion). Therefore the public sector is being forced to take stringent budgetary adjustment that involves realigning budgetary expenditures with reduced total budgetary revenues.” He said 

He said this was exacerbated by catastrophic weather conditions early this year when the economy was beginning to normalize and resuming robust economic growth path.

He said the calamity of floods and drought in January 2015, have caused acute shortage of food countrywide and severely damaged tobacco production which is a key export commodity that helps to stabilize the exchange rate.

Gondwe therefore admitted that the country’s Macro-economy is destabilized as evidenced by persistence high inflation rate, high level of interest rates and volatile depreciating exchange rate. He said demand for goods and services is declining steadily, economic activity has slowed down and inconsequence the employment levels and incomes are stagnant and poverty levels are rising.

Gondwe however said Malawi is taking strong adjustment measures as regards the budget and fiscal reforms including measures that will require stringent sacrifices as other countries did in 1990’s.

He said other neighboring countries passed through harder times than Malawi is facing now and there is hope that Malawi will make it through this tough time. However his remark stirred differing views in the House.

He said in the Government short term agenda the goal is to resume economic normality in the coming year or two.

He said to address these problems Malawi has aligned number of initiatives and programmes including implementation of IFM programmes.

“In order to achieve macro stability and to maintain it we will have to confront challenge of diminished budgetary revenues as a result of the loss of the budgetary support. IMF verdict that its programme in Malawi is off-track beckons the need to reduce to take further measures to reduce budgetary expenditures urgently and to exercise caution in the management of resources” said Gondwe while informing the House that Government has began to implement these measures

He also mentioned continued deeper budgetary adjustments, inconsiderable sacrifices from every Malawian including state and private institutions and exercise stringent discipline in the use of resources.

He said government is also enhancing public finance management reforms as an important part of economic policies that could lead Malawi out of its problems by reforming fiscal system to enable heightened fiscal control and reporting. He said the programme is instilling the fiscal discipline so that available resources are used efficiently.

To combat hunger he said Greenbelt administration has been requested to prepare a double cycle of maize production that can produce about 1 and half million tones of maize and beans. He added that large agricultural firms such as Illovo has been asked to produce maize which government can buy in case of weather.  

He said with rigorous implementation of programmes and initiatives will be able to change the economic outlook of the country.

He said however that there is need for Malawi to take strong adjustment measures particularly as regards the budget and fiscal reforms including measures that will require stringent sacrifices as other countries did in 1990’s.

He said other neighboring countries passed through harder times than Malawi is facing now. However his remark stirred differing views especially strong protest from Mangochi Monkey-Bay legislature Ralph Jooma who said it was wrong for the minister to tell people that they will have to go through times that neighboring countries experienced.

What were government expectations if budgetary aid was available and there was no floods and drought?

Minister of Finance said government expected conducive economic environment in 2014-2015 financial year after expecting good harvest of food and cash crops and after creating disciplined fiscal system a condition set by donors to resume budgetary aid.

Gondwe added that despite the expectation of government to restore budgetary support in 2014-2015, Government framed a cautionary budget centered to curtail budgetary expenditures so as to balance diminished revenue levels. He said the budgetary adjustment was to be a forerunner of measures that would continue to be needed to establish budgetary self sufficiency.

He said the focus of the budget was to reduce inflation rate that could then trigger the decline in the level of interest rates brining about the resuscitation of the needed robust resumption of growth and poverty reduction.

“True to the government expectations inflation commenced to decline progressively and reached 18.2% in March 2015 from 37.9% in 2013. Food inflation decelerated from 38.2% to 17% during the same period and non food inflation declined from 42.8% to 17.8%” he said 

He said the January 2015 the catastrophic shock floods (drought conditions brought acute food shortage) reversed macro-economic gains that were beginning to be experienced. “The inflation began to rise again, and policy interest rate was increased to combat heightening inflation pressures and prevent possible loss of foreign reserves.”

He said the exchange rate also began to depreciate steeply and registered a plunge of 23.3% between January and September 2015 but said this rise was one of the lowest in the region in the same period.

Racists Remarks Deleted From Hansard, Speaker Calls For Responsible Language In The House

Msowoya 

The Speaker of the National Assembly, Richard Msowoya said the racism remarks which were uttered by some Malawi Congress Party (MCP) Members of Parliament on Thursday last week have been deleted from the records of the House.

Msowoya was speaking when concluding the racism matter in the House.

“Honorable Members, I just want to bring to the attention of this House that following the remarks that the Leadership of the House has referred to, the matter was brought to my attention the following morning and at that moment I immediately ordered that all racist remarks be deleted from the Hansard. That they should not form part of the record of what had transpired in this House.” Said Msowoya

“I also did comfort the member for the pain he might have felt the previous day.” Added the Speaker

To hon Bisnowaty, the Speaker said; “Honorable member for Lilongwe City Centre, I know as well as you do, there are so many members here who believe in Christianity and Jesus Christ our Lord was a Jew” ended the Speaker

He then asked members of parliament to use words that are acceptable in the House.

“Suffice to say, honorable members that although you are protected and although you are supposed to uphold your human rights, your freedom of speech as enshrined in our laws, I as the chair and on behalf of my fellow speakers I would like to call upon responsible language in this House. 

Am saying this in view of the fact that of late there has been slurs even directed at the chairmanship of the House. There has been slurs that has been directed on the opposite side of the House. And am saying to honorable members that let us exercise responsible language.” Said Msowoya 

“I accept the apology and I will forgive and carryon”- David Bisnowaty

Lilongwe City Centre legislature, David Bisonwaty says has accepted apology from the Leader of Opposition and the Deputy Leader of the House, on the racism remarks made in the National Assembly on Thursday last week by some Malawi Congress Party (MCP) legislatures.

Leader of Opposition and President of Malawi Congress Party (MCP), Lazarus Chakwera and the Deputy Leader of the House, Kondwani Nankhumwa including Peoples Party (PP) offered a word of apology to David Bisnowaty over racism remarks from MCP legislatures.

“Mr Speaker Sir, nevertheless, I believe like most of you, that Malawians are loving and caring people. And like the Leader of Opposition said we have to forgive, forget and carryon, and therefore I accept the apology and I will forgive and carryon” said Bisnowaty

Before accepting the apology, Bisnowaty in his statement made a brief recounts of circumstances which made him become Malawian citizen.

“I want this House to understand also where I come from. I come from a family of who are all called survivors.  

I come from a family where my grandmother was the only survivor of the eleven brothers and sisters during the Nazi, Germany (atrocities). I come from a family where my mother was over a year stayed in a concentration camp, a family that was discriminated for being Jews. And that was their only crime.” Narrates Bisnowaty

He then said “Mr. Speaker Sir, to hear the sentiments in this August House, in this beautiful country where I spent many years of my life, where I gave my own citizenship to become a Malawi citizen I think it is not what I expected from anybody in this respectful House.

This House has to keep integrity, this house has to keep the law.” He said “And yes sometimes people don’t like what other members say in this House. But I believe in democracy and I believe that the member can have a right to say and that right should not be stopped and certainly should not be responded to by the color of that member or religion.

The parliamentarian said he went through the hansard to see what was said on that day and was ready at appropriate time to bring into the House the copies of what was said. He also wondered as to why some legislatures became so angry and outragious on remarks he never spoke ill of the father and founder of this nation Dr. Ngwazi Hastings Kamuzu Banda. Bisnowaty said he does not find any substance why some members reacted that much.

Malawians “expect us to set an example” PP on Racism Remarks

Nyalonje 

People’s Party (PP) has emphasized that National Assembly must set a good example of not discriminating against any person based on race or color.

Chakwera

The party made the remarks on Monday evening in the National Assembly when joining the Leader of Opposition and President of the Malawi Congress Party (MCP), Lazarus Chakwera in apologizing and condemning the racism remarks uttered on Thursday in the house to Lilongwe City Centre legislature David Bisnowaty.

When adding its voice PP says is committed to observing non-racial approaches to development and non-racial approaches to everything that the house does.

Mzimba North legislature, Honorable Agnes Nyalonje who was speaking on behalf of the Leadership of the party in the House said Malawians expects no race but “they expect us to set an example.

“Indeed every party in this House subscribes to the concept of non-racial development because without racial unity we cannot have development. 

So for those reasons, we in the People’s Party would like very much to support the statement made by the leader of opposition and to condemn in no uncertain terms any expression of racism, any act of racism especially when such an act comes from the House such as this, where every Malawian has the right to expect leadership that cannot be doubted in any way.” Said Nyalonje

Nyalonje also hailed Chakwera for offering “sufficient apology of what was done” on Thursday evening where some Malawi Congress Party (MCP) Legislatures caused disorder in the House by making racism remarks against Honorable David Bisnowaty.

Chakwera Apologize To Bisnowaty Over Racism Remarks From MCP MP’s

Chakwera

Leader of Opposition in the National Assembly and President of the Malawi Congress Party (MCP), Lazarus Chakwera made a statement on Monday evening offering a word of apology and condemn the racism remarks uttered in the house on Thursday last week to Lilongwe City Centre legislature David Bisnowaty.

Chakwera called for unity among members while reminding the House that everyone in the House is a Malawian entrusted with a role by Malawians to be their representative.

He warned his members not to use racism words because such words may cause dangerous repercussions to the country in future.

"In as much as one understands the intervention made by the Hon. Member of Lilongwe City Center, the instantaneous emotive responses from some members of the MCP can also be appreciated, particularly when one feels that a leader's economic policies to meet the needs of those he led are belittled and that leader is dead and cannot respond for himself. Its almost like someone insulting your father in your face and you are expected not to react." Said Chakera

He then condemned utterances that are deemed to demean or denigrate anyone in the chamber regardless of the perceived provocation saying MCP exists to promote development, help consolidate democracy and protect the dignity of every person.

"Our Founding President used to admonish all Malawians to live together in peace and harmony. He would especially single out those whose origin

and culture may be different from typical Malawian to be treated with respect. While many point to human rights abuses during the one party rule as a reason to haul insults on present day MCP, I appeal to all of us to be careful with the language we employ as fights can get started over very trivial matters as human history demonstrates." He said

"As a believer in Jesus Christ and a theologian cum politician, I can state that there is but one human race, regardless of the color of one's skin and/or cultural and religious beliefs. I believe, in forgiveness because I have been forgiven all my sins through the death of Jesus

Christ. I ask all Malawians everywhere and that includes the Hon. Member here to forgive the Malawi Congress Party of all past atrocities. I take responsibility as President of all the sins of my fathers." he said 

Chakwera then called members to focus on finding ways to move the country in the right direction and not waste time outwitting each other as to how best the furniture should be arranged "I personally believe that it is better to be hurt by the truth rather than to find comfort in lies." Added Chakwera

Chakwera needed to apologize because the racism remarks came from members of Parliament from MCP the party which he leads.

On Thursday some MCP legislatures called fellow legislature hon Bisnowaty 'foreigner' when he made a comment in the House on food situation during late Hastings Kamuzu Banda founder and father of Malawi who also was President for MCP.

Nankhumwa

Deputy Leader of the House Hon Kondwani Nankhumwa said the insults were both unfortunate and discriminatory to the choice of people of Lilongwe City Centre Constituency.

Joining him, People’s Party (PP) through Honorable Agnes Nyalonje while praising the Leader of Opposition for offering “sufficient apology of what was done” said PP committed to observe non-racial approaches to development.

Nyalonje condemned in no uncertain terms any act and expression of racism, and called every party in the House to subscribe to the concept of non-racial development because without racial unity Malawi cannot have development. 

Speaker of the National Assembly Richard Maowoya said he ordered deletion of the remarks from the Hansard immediately the matter was brought to his attention.

While bemoan with the recent trend of slurs even directed at the chairmanship of the House Msowoya noted that although members are protected and are supposed to uphold freedom of speech members should make responsible language in the House. 

Accepting the apology David Bisnowaty said never expected from anybody in such a respectful House and in the beautiful country where he has spent many years and where he gave his own citizenship to become a Malawi citizen to make racism sentiments against him.

In an interview, the only cabinet minister who was present in the house when remarks were being said, Grace Chiumia said racism remarks are uncalled for and needs to stop.

She said people settling in the country are contributing immensely to the development of the country through their businesses that are creating job to youths. 

Health Sector Needs Urgent Solutions

Civil Society Organizations, Health Professional Associations and Patients Interest Groups says Government should not hesitate to solve number of problems facing the health sector at the moment.

This was said following the petition delivered to the National Assembly on Friday through Chair person for the Health Committee of Parliament, Juliana Lunguzi.

The Groups says most Health sector services are crippled which are causing leading to the poor quality services to the patients.

Gift Trapence, executive director for Cedep who is one of the nine signatories for the petition said the solutions in the health sector are needed now.

The petitioners observe that Malawi continue to struggle in its quest to provide free health services but gains supposed to accrue to average Malawian continue being eroded due to challenges in drugs and medical supplies availability coupled with inadequate funding for the health sector.

  

They therefore asked the National Assembly to intervene to the current situation and on the adequate National Budget allocation to the health sector.

"We are concerned with the significantly reduced Other Recurrent Transactions (ORT) allocation from K16.5 billion in 2014/2015 national budget to K12. 7 billion in 2015/2016 financial year.

This has affected the capacity of Ministry of Health to meet its obligations of ensuring quality care for all Malawians. District and Central Hospital received lowest allocation in recent years at 4.7% of the total of health sector budget leading to failure to settle water and electricity bills, stoppage of locum services, inadequate food for patients, challenges in referrals and failure to maintain equipment. There are no functional x-ray machines" reads petition

The petition adds: "We are concerned with Government failure to effectively address challenges surrounding drugs such as unavailability of drugs due to limited funding, drug pilferage and leakage, leading to low performance of curative services"

Among recommendations made in the petition includes increased national budget allocation to health of 15% of the total expenditure in order to meet Abuja Declaration to which Malawi is signatory.

It is also requesting Treasury to revise upwards the the ORT allocation to the sector and speedy process in the consultations on health financing including user fees as an option to sustainably finance the health sector. 

Malawi Network of Religious Leaders Living with or Personally Affected by HIV AIDS (MANERERA+), Centre for Development of People (CEDEP), National Organization of Nurses and Midwives of Malawi (NONM), Malawi Health Equity Network (MHEN), Pharmaceutical Society of Malawi, Medical Doctor's Union, Patient and Community Welfare Foundation, Radiographers Association and Paramedics and Allied Health Workers are the signatories to the petition.

Bisnowaty To Write Speaker Over Racist Remarks As PP Brands The Incident Unlawful

Lilongwe City Centre legislature, David Bisnowaty says will write the speaker as soon as possible over the racism remarks uttered by some Malawi Congress Party legislatures from the opposition benches on Thursday evening. 

“First of all it is not the first time. Of course I condemn and I am not going to accept any racist remarks” said Bisnowaty while mentioning that the remarks just show that some people still believe they live in the old days where they can give racism remarks. 

"Of course am not going to keep quiet about it am going to write the speaker and demand that these remarks be retracted and you just can’t accept to live in the society when people are still racist and it was really the racist remarks that we should to stop.” He said 

Bisnowaty was silent when some members were outburst into racism remarks, he said he was silent because “I just don’t believe that you have to go into wars of words and we just have to go and follow procedures” 

Uladi

Meanwhile the Leader of People’s Party (PP) in the National Assembly, Uladi Mussa said “It was not good “Anyone who can contest as a member of parliament is a Malawian” 

He said what was said is against constitution which disallows discrimination 

“I think it is a matter of our leadership of parties to discourage our members that let us support each other, let us respect each other, we are all members of parliament so we have to behave honorably not discriminating each other because of race or origin. This is not proper.” Said Mussa 

He emphasized that countries are developing due to migration an there is no need to discriminate those who made decision to become Malawians. 

The National Assembly debate on national issues was put on hold for a while when some angry opposition members of Parliament failed to hold their temper and began to call the Lilongwe City Central legislature David Bisnowaty ‘ignorant’ of Malawi issues and ‘foreigner’ over remarks relating to late Ngwazi Hastings Kamuzu Banda rule. 

Bisnowaty who stood on point of order told the house that during the 31 year reign of Hastings Kamuzu Banda, Malawians were suppressed and therefore if there was any food shortages people wouldn’t have known about it and any person would have been in trouble once heard talking about existence of hunger. 

But even before Bisnowaty took his seat, some Malawi Congress Party (MCP), legislatures including Dedza North West Alekeni Wodala Menyani were heard shouting point of order while some legislatures especially Mchinji South West Deus Gumba Banda shouted racism remarks. “Khala pansi Iwee! … Ukudziwa chiyani zakuno ku Malawi munthu olowera pa passport ngati iwe!.. Foreigner”