National Assembly Authorises Borrowing From OPEC, ADB For Mzimba Water Project

The National Assembly passed on Tuesday afternoon two loan bills for the Mzimba Integrated Urban Water and Sanitation Project.

The House authorises OPEC Fund for International Development Loan worth K8 billion whose payment plan is 20 years and within it is 5 year grace period with 1% of interest per year.

Later, the House was presented with another Loan Authorisation Bill amounting to K2.7 billion (US$ 2.6 Million) from African Development Bank for the same Project whose payment plan is 40 yeas with 10 years grace period.

Goodall 

Presenting the bill, Minister of Finance, Goodall Gondwe said the project will be implemented for a period of 4 years, to cost a total sum of US$22. 8 million and will be co-financed by OPEC, African Development Bank (ADB) and Government.

He said OPEC is providing 65% of the total cost, ADB will provide 22% while Government is expected to make 13% contribution.

While supporting the bill, Malawi Congress Party (MCP) shadow Minister of Finance, Alexander Kusamba Dzonzi expressed disappointment the borrowed money is not enough to completely end water problems for Mzimba district. 

Dzonzi said MCP would have loved to see government borrow US$55 Million which is actual amount that is required to Carter water challenges in Mzimba 

National Assembly Passes Loan Bill For International Airport Upgrade

National Assembly on monday authorizes government to borrow K14 billion funds from European Investment Bank for the purpose of upgrading Chileka and Kamuzu International Airports to meet international standards on safety and security.

The House passed the bill after contributing and adopting the report on the bill from the Parliamentary Committee of Transport and Public Infrastructure.

The money from the European Investment Bank Loan Authorization Bill is to be used for the Project of upgrade of Aviation Safety and Security Equipment at Kamuzu and Chileka International Airports.

The bill passed with several amendments to the memorandum of the bill as proposed by the Parliamentary Committee of Transport and Public Infrastructure after scrutiny of the bill.

The amendments includes change of the title of the bill to read phase 1, change of Closed Circuit Television CCTV Link Tower to read Automated and Integrated Closed Circuit Television, wording of Wind Measuring Unit to Weather Measuring Unit and Radio to Radiosond.

Minister of Transport Francis Kasaila said the passing of the bill was timely because any delay will prevent flights into or out of Malawi because of airports safety and security conditions.

He promised that Government is now going to work flat-out making sure that within shortest time possible it procures equipments to improve on the concerns by International Civil Aviations Authority.

Throughout the deliberations, legislatures from Northern region emphasized the need to as well rehabilitate, Mzuzu airport which is hub for the north.

However, responding on calls for the need to rehabilitate Mzuzu Airport the Minister of Finance Goodall Gondwe said Government is waiting people from Mzuzu city to make a unison decision of the land where the airport could be relocated.

Gondwe said the main impediment for Government to commence consteuction of new airport in Mzuzu is because there are deffering views on where the airport be relocated to "Some wants the airport be relocated to Chiweta, someone says another place.

But it is up to us the people from the northern region to make a decision and then we can inform the ministry.” He said 

“Any thinking person will not oppose that, and as a citizen of Mzuzu I would like to see a very good international airport in Mzuzu and we will put in plans, as government we are very actively seeking funds to construct that airport. We have started with rehabilitation of Chileka and Kamuzu the next one is Mzuzu airport." He said but as to when that money is to be available, Gondwe said it is not known now because Government has to solicit funds.

Minister of Transport Francis Kasaila in an interview concurred with the Finance minister on this call saying Government would like to let people of Mzuzu to tell their choice of land for the Airport.

"The minister of finance made it clear, it is upon the people on the ground to decide the piece of the land that they can offer for the construction of the airport.

Few years ago Government spend to a tune of K250 million, to pay for the land and paid for compensation so that we relocate the airport to a safer place because where it is now is not a good place, you can easily have an accident. 

But after paying for that land and after having compensate people, the people there encroached on the same land. All that land that we got was encroached. Now government had nothing else to do apart from going back to square one and that is where we are saying we have to find land suitable for another airport." He said 

"After the people there decide where the free land for the airport is, we are going to send our technical people to do the necessary feasibility studies and after that appropriate designs would have to come in and then we will know what cost implications are going to come because of that airport and then we can look for the resources from donors or from other well-wishers who can support in that endeavor." Said Kasaila

He added that after the decision, Government will send technicians to do feasibility studies and calculate costs for construction of the airport and later look for the resources.

However, the Government decision to wait for the people of Mzuzu to make their own decision, saw a reaction from member of Rumphi Central, Kamulepo Kalua who protested against such decision by asking Government to make a conclusive decision forcing people to vacate with immediate effect from the already identified land.

But the Transport Minister said "It is not up to me (Government) to go and impose on the people",  "The ball is in their court." He added

The passed bill according to Kasaila will also boost aviation sector now that the Japanese are coming next year to provide an extension of the terminal building at Kamuzu International Airport. Through the Japanese project, there will be two separate buildings to allow domestic flights and international flights passengers use their own terminals.

Two Men Injured In Disastrous Accident In Zomba

Young driver and a bicycle taxi operator are battling for their lives at Zomba Central Hospital after being involved in a terrible car accident that took place at Zomba City boundary just before Chikupira river from Naisi to Chinamwali trading centre on Saturday between 5 and 6 pm.

National Wide Public Works Programme Commence December

Goodall Gondwe

Government to begin a national wide Public Works Programme budgeted at K9 billion by December this year up to May 2016.

Minister of Finance, Economic Planning and Development disclosed in the National Assembly during his Ministerial speech on the status of the economy that each district will receive a minimum of K200 million and people will work for 20 days at a fee of K600 per day.

He emphasized that the large part of the programme will be devoted to tree planting along the rivers to strengthen Malawi resilience to catastrophes. 

“In order to improve rural incomes and boost demand for domestic products and to provide resources to the rural population to purchase Farm Inputs in readiness for the next rainy season, the Government will establish an expanded Public Works Programme that will be managed by the local councils through the Ministry of Local Government and Rural Development, MASAF and supported particularly by Ministry of Natural Resources, and Ministry of Transport and Public Works.

“It is felt that this year we could particularly focus on the planting of trees alongside our main rivers. It is planned to spend more than K9 billion on this programme.”

“On the average, resources will be distributed country wide of more than K200 million per district. It will be expected that an individual can be eligible for 20 days work at rate of K600 per day.” He said with plause of Bommaaa! Among Government MP’s

He explained that this year, the programme will have two cycles. The first part will start on 1st December to 31st of March 2015 and second part will kickoff in April to May 2016. 

Earlier the minister said Government will also focus on an expanded production of legumes to help the country diversify agricultural exports and earn the country US$200 million per year. 

“That is together with mineral exports, our exports could double in the medium term” he said “An expanded production of legumes will also enhance rural incomes reduce poverty significantly”

He said the ministry or Industry and Trade has already secured external market for the legumes to be produced.

He said the two are part of non budgetary initiatives that the country is geared to undertake

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.