Malawi Finance Minister cautions Western-style bonuses

Finance Minister Goodall Gondwe on Friday said  Malawi government continues to intensify its fight against fraud and corruption, because these societal evils create a huge disincentive for hard work, while at the same time mis-directing resources from productive use.

Gondwe: Western Style bonuses not good

Gondwe: Western Style bonuses not good

In addition,  he said the payment of “Western-style bonuses” to top executives in the private sector must be a major government concern, because” it entails a waste of resources that could have been re-invested productively.”

He condemned the bonuses, saying it  also worsens income inequalities, and creates disincentives in other equally important sectors of the economy.

“The practice in some companies  to pay salaries equal to those received by executives in developed countries  and grant them huge perks should be roundly questioned, just as it was questioned in those countries in the wake of the 2008 economic meltdown.

“Surely, salaries equivalent to US20,000 per month or more in Malawi cannot be conducive to the needed investments nor to continued social harmony.”

Gondwe discouraged what has emerged as a “persistent culture of demanding more and more of the limited government resources among the leaderships of some of our public institutions, through enhanced conditions of service.”

He said these demands are increasingly becoming insensitive to the economic depression that the country is passing though and, therefore, unpatriotic.

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Wishful Thinking
Guest
Wishful Thinking
3 months 28 days ago

Government officials should stop milking out the state. If they are really patriotic let them start opening up production companies so people can get employed. Government offices have become breeding grounds for thieves living large. Clean up hospitals and begin to build structures that can accommodate our population then i will begin to take you serious

Whatashame
Guest
Whatashame
3 months 28 days ago

National Bank of Malawi

concerned citizen
Guest
concerned citizen
3 months 28 days ago

True . Its for the first time in Malawi for a government official to say some thing about this.The practice has robed Malawi a lot of funds that would have put the country at a better economic position. This has been practiced in many instances, even when the company was straggling to make ends meet. Bonuses, and Allowances for almost every thing. Even in countries that are well to do economically here in Africa, they don’t give bonuses and allowances like we do in Malawi

JeSuisCharlieEncore
Guest
JeSuisCharlieEncore
3 months 28 days ago
Well said Hon Minister. I hope patriotism will start from government ranks. Have you thought about those ‘gas gazzling’ cars top govt officials including ministers are using? Have you considered abuse of govt and parasitatal resources to sponsor ruling party activities? How about ruling party zealots strategically placed as board of directors in various parasitatals to earn a living by drawing hefty unpatriotic allowances in form of t & t and others? Oh yes patriotism is what we need to develop this country! And by the way how much have you budgeted towards unjustified perks for the so called presidential… Read more »
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