Mutharika says Kwacha depreciating to ‘its normal level’: Refutes Africa Review report on his pay

President Peter Mutharika has commented on the free fall of the country’s currency, the Kwacha, saying it was over-priced and it is currently depreciating to its true value.

Mutharika: Malawi Kwacha was over-priced

Mutharika: Malawi Kwacha was over-priced

Mutharika said in an interview with the Voice of America (VOA) that the kwacha is further weakened by a weak export base.

“Part of the problem is a weak export base and the other currencies are strong, and in a way I think the kwacha over appreciated anyway, so it is probably depreciating to its normal level,” VOA quoted Mutharika as saying.

“But in the long term, I would like us to increase our exports and cut back on spending, and I hope that we would be able to get back to where we should be,” said Mutharika.

Malawi is currently experiencing bad economic environment characterised by high inflation rate at 23 percent as of August 2015, according to National Statistical Office (NSO), high interest rates in commercial banks, hovering around 37 percent as well as a downgraded gross domestic product (GDP) growth rate of three percent this year from an earlier projection of 5.5 percent.

A fortnight ago, an International Monetary Fund (IMF) mission to Malawi declared the country’s three-year Extended Credit Facility (ECF) off-track due to fiscal slippages equivalent to about two percent of GDP, which emerged during the second half of 2014/15 financial year, in part because of overspending on the wage bill.

But Mutharika said his government is working on modalities to bring the economy back on track and   outlined some of the measures his government is taking such as restricting local and international travel for all government officials; the measure which he said will save the government about $20 million.

President Mutharika also refuted a report by the African Review, a publication based in Kenya, which named him among the top 10 African presidents with high salary compared to the gross domestic product (GDP) of their countries.

“My salary is 1.5 million kwacha [per month] and is even less than most of the civil servants.  It is certainly less than the governor of the central bank and the CEO of the Malawi Revenue Authority.  It is not that much, I think … it comes to about $3 000 [per month] at the current exchange rate,” said Mutharika.

“We are not taking the [increased] money, both me and the vice president and Cabinet ministers.  We are saying we are not going to take the salary until the economy improves. “

Mutharika also expressed optimism that the Public Service Reforms which government is implementing will help weed out corruption by ensuring accountability and preventing financial malfeasance in the country.

The Malawi leader said his stance is zero tolerance for corruption, adding that he wants to restore a culture of accountability.

Donor support, which accounts for nearly 40 percent of the country’s budget, has been withdrawn after officials were accused of stealing millions of dollars in public funds.

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34 thoughts on “Mutharika says Kwacha depreciating to ‘its normal level’: Refutes Africa Review report on his pay”

  1. nick says:

    Anyone who believes in a “normal level” for the value of the kwacha is not living in the real world

  2. MaKopa says:

    Shaaaaaaaaaaaaaaa clueless man bla bla bla crazy indeed.

  3. His salary could be K1.5 million but does he use that. How many benefits does he enjoy including stealing or taking bribes? How much do Malawians lose when he travels by road? There is more to this than meets the eye. We should not be fooled. He can’t talk about the salaries of civil servants who have to pay for almost everything. The schools are expensive since most of us have to send our children to private schools. The standards in public schools are are pathetic. The standards in public hospitals are pathetic though Bingu was taken to Kamuzu Central Hospital.

  4. Jarsn Phiko says:

    There was no truth in what APM said. In fact he talked trash completely. Why did he defend his team and not produce the list of those that went. He mentioned a few names who were funded by ther organisation and not his team, why?

    You think we are children? Mr Muthalika, you are using people to prepare your allowances for your trips , dont you think the same can leak such information? Why fight Zodiak for telling the researched truth to the Nation and you think Malawians are such foolish to believe you? What did the your political dogs contribute to the UNGA? What did your Chiefs and homeboys do in the US if not to spend our taxes and you expect us to smile at that? Shame on you our President. The Bible says the truth sets people free. The more you are trying to defend yourself the more people think and analyse your office, your integrity, and human uprightness. Believe me Sir, you have goofed big time.

  5. mtate mike rsa says:

    Chitsilu cha president ndimuthalika ntchito zamanjaake zikumuchila umboni

  6. ambusye says:

    Am watching and am listening. 2019 we will take all the rubbish away!!!

  7. Ntchisi boy says:

    Beloved Malawians let us learn to argue with objectivity and soberness. I don’t think calling sate president an idiot is proper way to prove a point.

  8. mphatso says:

    A Malawi tulo.muli busy kutukwana president kuiwala kuti dziko amaononga ndi a IMF.read what they are saying kuti dziko liri mmavuto chifukwa cha high wage bill.what it means is that anthu achotsedwe ntchito,then ayambe kuvutika then ayambe kulira ndikudandaula then aukire boma then iwo ayambe kupereka ngongole kuti aoneke ngati akuthandizapo a satana eni eni.onani zomwe adapanga ku zimbabwe anthu oyipa lero akuti akugwiritsa us dollar.where did they make that agreement anthu a satanic.open your eyes you will see

  9. Which grade of civil service receives more than MK 1.5m? and yet he himself said can not get rich in govt because there’s no money in gvt. Who do you think you’re cheating??? We’ll see in 2019 if you happen to reach that year.

  10. MSANA WA PETURO says:

    Dog, dog, dog and more dogs! Who in his or her right senses can listen to this rubbish from the chief idiot of Malawi?

  11. This buffoon should just shut up.Who do you think you’re cheating??? You steal our money and heap it at Statehouse. one day the truth will out.

  12. namarokoro says:

    Thom Chiumia – This is an article excellently written. You have raise facts and left the reader to make his own opinion. This is the way journalism is supposed to be. Keep it up Thom. Very informative.

  13. mMalawi says:

    nde mwati 1.5 mita is less than MOST civil servants???? Does it mean you dont know kapena kinama basi?

  14. Kavuluvulu says:

    Dzuka Atupele,dzuka !

  15. BRAJOE says:

    $3000 salary? you very lucky you get that kind of money. think about malawians who eat madeya everyday while you busy sucking your wife’s puss.

  16. Happy Eduardo says:

    Mmmmmmm. You can’t see anything good in APM. Nsanje basi.

  17. AMAYENDA NDI YESU AMAONEKA says:

    Just imagine the whole government failing even to release the MSCE results
    in time yet last year the exams were written late to pave way for those rotten election
    but still the results were out in time. what kind of government is this. you promised a lot
    to us but doing the worse. please Mr. President don’t take Malawians for granted.. they are the same people who puts you and up and can not fail to put you down. so take heed. remember in the bible the time when the kings were in power.

  18. Andrew Fatch says:

    Zanu izo munthu anena anena basi mukufuna atani?

  19. BRAJOE says:

    I don’t really understand who voted this person. My fellow malawians let us hold our hands together and pray to God to give us a better leader who understands where we come from and who we are. A leader who has grown up in malawi, not these people who does not feel shame to other poor citizens. Disabled, Blind, old and sick fellow malawians voted for him but nothing useful they getting from the new government in return. I think he is revenging for his brother death.

  20. Mr. President you must be careful especially at this moment when the majority is suffering otherwise you will be found dead in the loyal house with shit inside your pants with no one around you noticing that there is a dead body of a senior citizen in the state house, it is just a wise warning, if u were wise you would learn from your brother’s death

  21. BRAJOE says:

    Mamane this motherfucker is useless. President saying his salary is small than the Governor of the Central bank and CEO of Malawi Revenue Authority. We didn’t vote him to get a better salary we voted him to change the economy of our country. He should be saying that he must not get paid for a certain period of time until our economy has been recovered. Asshole Mr president. MALAWI IS DOOMED…

  22. sikusinja says:

    There are some things that dont make sense in Malawi. Why does the RBM governor or MRA commisioner general make more money than the president? There is so much imbalance in the civil service and quasi government institutions. Thats why corruption and theft by civil servants will never end,

  23. Alungwana says:

    Cutting expenses when you charter a plane to and from Dubai. Cutting expenses when you take a hundred of your loyalists to USA.

  24. Patriotic malawian says:

    Don’t listen to whatever this DICTATOR is saying.
    He is not fit to be president in this time of freedom.
    He must step down.
    Malawi was declared OFF TRACK by IMF.
    Dzuka Malawi Dzuka

  25. George phiri says:

    Since you are rich bwana president can you reduce your salary to 500000? Just to help out boss.

  26. Nankununkha sadzimva says:

    Only kindergarten children can listen to your empty talk. Do you depend on salary? Again you talk of cutting spending yet you unnecessarily continue a lavish life. May be for you cutting spending means not buying medical supplies for our hospitals and yet you travel in a more than 20 vehicle convoy. What for? If a British prime minister whose country doesn’t rely on donor aid, travel in less than 5 vehicle convoy, does it make sense for a president of an impoverished nation like Malawi to travel in a mammoth motorcade?

  27. impeachment Agenda says:

    Are you too stupid Mutharika the buffoon to understand that if you returned to Malawi the billions that you and your brother Bingu stole and if your corrupt Indians like HDT returned the billions they corruptly took away from Makawi, the Malawi Kwacha would be the strongest currency in this part of Africa.. You are ignorant for how can the kwacha be strong if billions are taken away from the economy by you Mutharika and your corrupt Indians?

  28. ngw'engw'e says:

    He must be a good leader indeed with sound decisions. Well done Peter.

  29. The only Democrat Left says:

    Mutharika your thankfully dead brother Bingu had 8 years and you have had 2 years in office as Presidents to widen the export base and to cut down on expanses. But you two dunderheads have both failed. The problem with Malawi’s economy and particularly the weak kwacha is flight of capital caused by you and your brother stealing billions which you banked abroad and you favoured Indians taking their money to Dubai and UK. The solution to Malawi’s economic problems is you Mutharika you dunderhead stepping down or being forced to step down. You crook.

  30. The real ujeni says:

    The report was making comoarisons between Presidents in Africa not civil servants or Reserve Bank Governor, how difficult is that Peter Mutharika to understand.

  31. Mr Dowa says:

    Bwana President nthawi zina mukamalankhula muzithaso kulankhula ngati kuti zilankhulidwanzo zikuchoka kwainu ndipo anthu akunziva,mwalankhulazo ndizoona koma zosanveka, Ndikupempheni bwanji Odala,pankhani ya Salary yanu palibepo chilungamo cheni cheni chifukwa imene mwatchulayo ndiyapa mwezi, komatu imeneyo imayitana ndalama zina kuposa zimenezo pa Week mwinaso patsiku,ndanenazi ndizoona. mwatiso ena mwa nduna zanu mulinawo limodzi pa nzera wosakwezeredwa salary kikikkkk bwana,inutu ife tukudziwani tidaonela Obale wanu ndalama itasowa inakapezeka otatseka manso ku State House, mpamene tidadziwira kuti kusakwezeredwa kwa Salary muli ndinjira zomwe lero ndizobisika koma mawa ZIONEKA NDITHU WAWA BWANA PULEZIDENTI Kikikkkkkkkkkk!

  32. DOBO says:

    Malawian politicians are good at talking but on the ground there is nothing being done. In Malawi there can be no differençe between having no leader and having a leader. Having no president is good as having no president .It waste of time going voting for president.I think our traditional leaders can do better than we see now. May be Malawi is a cursed country,I don’t know.

  33. defender says:

    walankhula bwino, l guess

  34. Marley says:

    God bless Malawi. Give wisdom to her leaders.

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