Goodall insists Malawi economy in a mess – Report

Finance, Economic Planning and Development Minister, Goodall Gondwe who admitted in parliament that the country is still passing through “turbulent times” has maintained that Malawi economy is in a mess, according to published report.

Gondwe rues cashgate for Malawi poor economy

Gondwe rues cashgate for Malawi poor economy

In an exclusive interview carried by the daily newspaper, The Nation on Tuesday, Gondwe admitted that Malawi has not yet established a stable macroeconomic environment.

He insisted that the unstable economic environment is an after effect of Cashgate corruption scandal which led donors to stop budgetary support.

“Instead of paying fir current services, we are paying for past services and the mismatch between required resources and required expenditure is such that it will have to involve you into borrowing

“Now the more you borrow, the more you mess up your macroeconomics plus the fact that you encourage fraud when you incur arrears,” Gondwe is quoted in the paper saying.

Gondwe told the paper that he has commission an exercise to identify what he called “wasteful spending”, disclosing that government owes the private sector at least K155 billion for goods and services procured.

The domestic debt is at K576 billion.

“I have [someone] currently trying to identify waste in government. By next year, we should start implementing some of the recommendations. Others may take longer because they may concern entrenchment of rights of individuals,” he said.

Gondwe wants government to create a stable macroeconomic environment that also provides conditions for attainment of high quality economic growth rates.

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winston msowoya
Guest

Unless we acknowledge the fact that stupidity in our electoral behaviours largely attribute to our own downfall.Electing our leaders on the basis of ethnicity or tribal affiliations instead of merits,we are committing economic and political instability that would take ages to heal.Right now what is hindering our economy to growup,is leadership that has failed to control a bushfire corruption which is in fact,perpetrated by largely our own leaders.No amount of brains or technology will save us from this fast sinking economy that will also affect future generations.Muthalika and his servile puppies however,have nothing to loose,but their powers.

be humane
Guest
closing state house will save K84 Billion yes. Have you considered the cost of people losing jobs in all these state houses and the cost of suffering by these people? What measures do you suggest for maintaining livelihood of these people. How Many employees are under statehouse residences Mr. Mbiya in this suggestion? How many children dependants are there? Who will finance their education Mr. Mbiya? Who will provide for their health care service? Then What will the money saved be used for? Poverty alleviation? Then does that make sense to fire people and use the savings to save them… Read more »
Mbiya Zodooka
Guest

Iwe Humane,
Why do you think making 17million suffer is better that spending the money on serving one person. We had Malawi Railways, Air Malawi, Lake Service and so many companies that employed thousanss of people closing down. We had MYP with thousands of people who worked in Based, Spearhead Transport etc. All those people lost their jobs and had families. What is so special with hundreds working at state houses that are hardly used.

The money saved every year would go a long way in reducing international loans and improving our health sector.

Mbiya Zodooka
Guest

What about removing fuel allowance for MPs and Ministers 500xK788.45×188 per month. Multiply by 12 and you save K1 billion per year. Close all state houses except ‘Kamuzu Palace’ and you save K84billion per year. Cancel all external travelling for the president and you save K11billion per year.Consider reducing number of MPs from 188 to 112 and you save a more than K42 billion easily. Use the total savingd to pay your loans.

JJB
Guest

All the things you have mentioned are the responsibility of parliament, not Minister of Finance. The minister of finance is to pay MPs and ministers for allowances. How forgetful or stupid can one be? MPs were demanding money in exchange for passing the budget just parliament gone, and the economy is a ministers fault?

Mbiya Zodooka
Guest

Iwe JJB,
Where did I mention Minister of Finance? I stated what can be looked at in order to save Malawi. Saving more than K150billion every year can go a long in our miserable economy.

Ngalamayi
Guest

Well, at least there is an admission of a problem. Now it is his job to sort it AND make sure it doesn’t happen again. I don’t think Malawians feel he can do either of these things! ‘Someone’? It’ll need more than one person!

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