Parliamentary Budget Committee Pessimistic With Malawi Projected GDP Growth Of 5.1 Percent

Chiphiko: Nation needs to pray 5 times a day to achieve such ambitious rate of growth

The Parliamentary Committee on Budget says nothing tangible for this year’s Budget to make the Malawi economy register real GDP growth rate from 3.1 to 5.1 percent.

Chairperson for the Committee, Rhino Chiphiko finished presenting the Committee's findings on Tuesday in the National Assembly, a response to Minister of Finance Goodall Gondwe's recently presented K1.136 trillion national budget estimates in the National Assembly for the 2016/17 financial year.

Parliamentary Budget Committee Chairperson, Rhino Chiphiko says his Committee established that the only positive areas in the budget has been large allocation to the Ministry of Agriculture which represent 17 percent of the total national budget and allocation for the food purchase.

The committee further noted the proposals to reform the Farm Input Subsidy Program and plans in Public Finance Management.

However, the Budget committee found number of worrying developments in the Budget which led the Committee to conclude that Malawi will fail to achieve real growth.

"Mr. Speaker Sir, events in the natural, or, Act of God, and in the human realm portend a difficult future. Climate change and extreme adverse weather events, unstable exchange rate, persistent high inflation, high interest rates and constrained fiscus, all portend a sluggish and depressed economy. An economy is in an Intensive Care Unit (ICU) like a patient on a Life Supporting Machine. Malawi is in an economic crisis." emphasised Chiphiko with urge that "But we must do something" mentioning lowering of interest rates and boost industrial production.

In the Committee findings presentation, performance of many sectors in the Malawi will be adversely affected by poor performance of the Agriculture sector as it is apparent that climate is still affecting the sector yet Malawi continues to depend on the sector.

According to Chiphiko, later in an interview said Malawi may this year register a negative 2.5 growth rate and not surpass the average growth in the regional which is around 3 percent. He said the committee believes that Ministers projected growth figure will need the nation "to pray more than 5 times a day in order to achieve such ambitious rate of growth."

Chiphiko said the budget has large allocation on expenditure for the public debt charges and interest repayment and that this will make Malawi fail to meet Millennium Development Goals as less has been allocated to the Development programmes.

His committee further notes that interest rates in banks remains stubbornly high making lives of many to be unbearable in the year which 8 million Malawians will face food shortage.

The Committee emphasise that interests rates must be revised downwards to make people able to borrow from banks and able to repay loans at reasonable rates. 

The Committee has among others noted that number of tax proposals cannot lead to any economic recovery and may even push the economy deeper into recession.

Katsonga Offers “Word Of Wisdom” As House Demands Loans

Davis Katsonga: Speaking in February 2016

Mwanza Central constituency legislator, Aaron Davis Katsonga on Tuesday evening got a standing ovation in the National Assembly for offering solution that Deputy Speaker of the National Assembly, Esther Mcheka Chilenje together with Leader of Opposition Lazarus Chakwera, described them “Words of Wisdom.”

Legislators are demanding their delaying General Purpose Fund (GPF) loans of K5 million each which they are supposed to repay between now and 2019.

The Former Speaker, Katsonga asked the House to find proper forum to discuss the legislatures condition of service matter as doing so in the House would negatively affect the reputation of the House.

“Something has gone drastically wrong.” noted Katsonga then advised, “I think the leadership of on the Government side and Opposition should sit down and look into this matter very seriously because the reputation of this House is going to be negatively affected at the end of these exchanges.” 

His remarks came when the members from the opposition side of the House were insisting to progress with the matter of their condition of service when at that time the matter was under discussion between the Welfare Committee and the Minister of Finance and Economic Planning, Goodall Gondwe.

Katsonga remarks further went on to plea with the Deputy Speaker to call off her decision that the Dowa East Legislator, Richard Chimwendo Banda should on Wednesday afternoon bring in the House alleged evidence that the Cabinet Ministers got K5 million loans from the Office of the President and Cabinet (OPC) when the Members of Parliament are being denied to get loans. 

“Madame First Deputy Speaker, by bringing the issue back in the House tomorrow, the evidence that’s being sought, we are also rekindling the very issue that I am saying is wrong to be discussed on the floor of the House” he said and further advised the Deputy Speaker to find different approach of concluding the matter

“Thanks for the words of wisdom.” replied Deputy Speaker while sustaining the point of order of Katsonga

“Honorable members, its high time that we listen to words of wisdom as stated by the member for Mwanza Central.” pleaded Chilenje who called on the House not to waste time discussing their condition of service in the House but instead focus on the issues of national interest 

“Indeed something has gone out of order.” She concurred, “I would want to plead with the leadership to find the way of resolving these issues and not in the House. This is totally out of order and am ruling the whole House Out of Order for discussing these issues” she concluded the matter

However, this winding up of the matter failed to calm down the situation as others suggested the suspension of the House to allow leadership to discuss on the matter. When tensions increased further in the House, Deputy Speaker suspended the proceedings for 30 minutes to allow the members to sober up. 

Immediately the House resumed sitting, Leader of Opposition, Lazarus Chakwera offered words of reconciliation which was in total agreement to earlier point raised by the legislator for Mwanza Central. 

He said the manner in which the matter was being deliberated in the House nobody is going to win and it will only bring chaos in the House.

“I want to appeal like the former speaker, Mwanza Central stated. I know that wisdom is not monopoly of anyone. But, I would appeal that such matters has have preoccupied us, which matter should not even be on the floor of this House, should be dealt with in the manner in which it was prescribed.

The Opposition Leader urged members never to debate issues concerning conditions of service on the floor and that any member requiring such information should approach the correct offices “and not stipulate staff that agitates Malawians across the country against certain members of the society whether they be ministers or parliamentarians in general.”

Chakwera then appealed to all members to proceed with normal business “but those who have responsibility to see through that things are done right should do so.”

Chimwendo Banda Ready To Prove Cabinet Ministers Got K5 Million OPC Loans

Hon. Chimwendo

Honorable Member for Dowa East Richard Chimwendo Banda is on Wednesday afternoon expected to bring evidence that cabinet ministers took K5 million loan from Office of President and Cabinet (OPC).

His disclosure came in the House when legislatures are demanding Government to approve their delaying General Purpose Fund (GPF) loans of K5 million each which they are supposed to repay between now and 2019. However, Government maintains that with economic challenges the country is going through, it will not be possible to approve the MPs loans.

Leader of House, George Chaponda caused hon. Chimwendo to spill the beans when Chaponda accused the opposition members being selfish for their insistence to discuss the future of their condition of service and not to deliberate on the budget.

Honorable Chimwendo Banda then told the House on Tuesday afternoon that he has evidence that all cabinet ministers got K5 million loan from OPC which includes K1 million for hotel accommodation, K1 million for furniture and another for duty free cars. He added that ministers also draw K45 thousand a day when attending Presidential function.

He therefore expressed concern that Chaponda remarks were unfair to the opposition members and had intent to create bad picture to the public that one side of the house is interested in petty issues rather than focus on national concerns.

Deputy Speaker of National Assembly, Esther Mcheka Chilenje invoked Standing Order 102 requiring the legislator to provide evidence after Minister of Labor, Youth and Man Power who is also Government Chief Whip, Henry Mussa, requested the Deputy Speaker to order the member to bring evidence.

However, several cabinet ministers stood to protest against Hon Chimwendo's alleged evidence and denied to have obtained such a loan from the OPC.

Other Cabinet Ministers including Home Affairs minister, Jappie Mhango and Health Minister, Peter Kumpalume threatened Chimwendo to provide “only evidence that proves that all” cabinet ministers took the alleged loan.

As the house was in uproar state legislator for Nkhatabay Central, Raphael Mhone rising on Point of Order brought in suggestion that OPC ought to bring the information of details of ministers who took loans since that is a public document and not to ask member for Dowa East to bring that matter in the House. This suggestion was seconded by the Kasunu East legislator, Elias Wakuda Kamanga but Deputy Speaker, Esther Chilenje never ruled on this since there was no order in the House which forced her to suspend the proceedings to allow members to sober up.

Since Monday, members from opposition side have been requesting the Minister of Finance to express himself on reasons why the legislators are not up to this day receiving their General Purpose Fund loan which includes K1 million for emergency and K3 million general purpose advance loan.

The legislators are mainly concerned that since their five year term is closer to an end obtaining such loan later and with 40 percent current rates banks are charging they will be heavily taxed.

On Tuesday, the House was suspended twice following disagreement over the same issue and Minister of Finance Goodall Gondwe has been discussing with the Welfare Committee on the matter.

Govt Ministries, Departments Be Creative As Resources Continue To Dwindle

Hon. Wakuda Kaanga: Lets be creative

As Malawi continue to face economic challenges, difficult to adequately finance most Government Ministries and Departments, Kasungu North East legislator, Elias Wakuda Kamanga says Government institutions must be creative and efficient in using the limited resources to achieve high quality results.

The People’s Party legislator, hon Wakuda Kamanga was reacting to underfunding concerns being expressed by various Government Ministries and Departments pertaining to the allocations in the 2016/2017 national budget.

“You know, at a time like this when every country in the world, Malawi not being exception, where economies are not performing very well it is very dependent upon institutions across the board to begin restructuring their activities” Said Wakuda Kamanga

Hon Kamanga argued that “it doesn’t make any sense” in the face of dwindling resources to see institutions expanding in terms of activities but stressed for “serious radical transformation” that may translate how institutions work. 

Wakuda maintained that Malawi is endowed with resources but only that people are not working out ways to expand resources they have.

“I don’t agree with anybody that says Malawi has no resources this country has financial and human resources but we are mismanaging resources. We are not prioritizing very well about what is it that we should be doing. If Government can look inside itself they will definitely see that the resources are there but we need to take certain actions that can protect those resources and re-direct them to activities that would make sense to the growth of this economy.” he added