I predicted about forex crunch – Goodall

Former minister of finance, Goodall Gondwe said he predicted Malawi’s current economic woes being experienced due to shortage of foreign exchange.

Gondwe, now minister of local government and rural development, said the economic turmoil is “temporary” apart from electricity problems which he said requires long term solutions.

“But issues of foreign exchange, issues of fuel and so forth, we have had these from time to time. They are short term and they require short term solutions,” said Gondwe on Straight Talk programme broadcast on Capital Radio.

He said the foreign exchange shortage was predicted when he was at treasury and government was aware.

“I did predict at the time that we will have shortage of foreign exchange  sometime and that by September or so we will deal with that situation, we will normalize it,” said Gondwe who wondered that the situation continue to persist.

“But it is something that we were quite aware it was going to happen,” he insisted.

Gondwe explained that the problem was caused when government had to buy fertliser for the subsidy programme at a time prices had tripled and they spent $100 million more than normally spent and that fuel cost was also high.

The minister said the problems resulted due to “external shocks”.

However, Gondwe said his successor at treasury, Ken Kandodo ‘Banda’  is doing a good job and that they discuss on a number of issues.

“Ken Kandodo Banda has become one of my best friends in the cabinet. Now I know him very well,” said Gondwe. “He is doing an exceptionally good job. Ithink it’s my responsibility where he needs me to support him.”

Gondwe said he had accomplished the objectives which he was set to do at Ministry of Finance and needed to move on.

“When President appointed me minister of finance we discussed what had to be done in the country for us to establish the framework to which we could succeed,” he said.

“I think you will agree, the first five years we did that,” he added, “the work that was set out to do or he [President Mutharika] set me up to do in finance was done and when he asked me to be in ministry of local government, he defined to me what required to be done.”

Gondwe said he is “extremely happy” that he is in an area that also requires a focus from government and maintained that the job which he was asked to do in finance had been done successfully.

“In finance we were set out to improve and create sound macroeconomic system in the country, we did that.

“Eventually, however, that success has got to be translated in the welfare of the poor, poverty reduction in the rural areas. That you cannot achieve in the ministry of finance, you can achieve it where I am.”

Gondwe down played assertions that he was the engine room of economic success of the DPP government in the last five years.

“What I did was translating the President’s own policy and thoughts into action. I was his instrument in creating the microeconomic framework that he wanted created”

Gondwe said he is “fascinated” by his new portfolio and disclosed  that he is spending much time in rural areas.

He conceded that he has difficulties to speak Chichewa  but pointed out that he is having good understanding with traditional chiefs.

“Well I never speak to chiefs in English but they understand me. I speak Chewa to them all the time. They understand me, I understand them.”

Straight Talk , hosted by prolific journliast Brian Banda  is fast-paced interview program  with hard-hitting questiond.

Monitored by Nyasa Times, Straight Talk is aired on Capital Radio –FM 102.5 – every Tuesday and Thursday evening  from 17:30.

Tagged with: Brian Banda, Capital Radio, forex, Goodall Gondwe, Ken Kandodo, Straight Talk

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