Malawi forex crunch takes new twist as Police harass curio vendors

The issue of shortage of foreign currency exchange reserves is refusing to die as security forces  in  commercial city of Blantyre have been raiding curio market premises in the name of searching for forex.

This comes in the wake of continuing scarcity of the foreign currency in the country and the development prompted Malawi’s central bank to shut down all forex bureaus.

The decision by Reserve Bank of Malawi (RBM) to close down all bureaus has in turn boosted sales on black market where vendors are reportedly selling the foreign currency at higher rates.

Meanwhile, Nyasa Times investigations team has revealed that when government got wind of black market vendors cashing in on the scarce exchange revenue, President Bingu Mutharika through the Inspector General of Police Peter Mukhito, issued instructions to police to search curio vendors trading in major cities of the country targeting Blantyre and capital city Lilongwe..

This week alone, Nyasa Times established that civilian police raided the curio premises three times and on different occasions they managed to nab vendors who were found with foreign currency.

However, the police reportedly set the vendors free on pretext that they did not find enough evidence to charge them with illegal possession of foreign currency.

A visit to the curio market by Nyasa Times crew found vendors living in deep fear and full of suspicion as they are not able to tell the face of a passerby, customer or a civilian police officer.

According to vendors Nyasa Times talked to, police used force on vendors that were not cooperative. A development they described as a typical reminiscence of one party dictatorial era especially that these policemen were confiscating money from vendors without counting.

“These people come here from fiscal police department especially Chiwanda and his friends they search you and grab whatever money you including Malawi Kwacha and later release you threatening that if you reveal we’ll lock you up and police have instructions to shoot to kill anybody,” said one vendor claiming that these are the words said by the police officers.

Another curio vendor who answers to the name ‘General’ among friends disclosed that every week police raid this place twice Mondays and Wednesdays claiming to be looking for forex.

“They search everywhere and no one was spared. We’re surprised because nobody here is involved in the business of buying and selling forex. It is a shame that the police are acting merely on rumours, to me this is harassment of highest order. This is reminding us about the one party era where government used to treat its citizens as enemies,” complained General.  

Another vendor who did not want to be named said he was arrested Monday morning for being found in possession of American currency amounting to $2,500.

But the vendor said he was freed after telling the police that he was scheduled to leave the country for Zimbabwe next week tomorrow (Saturday) and the money was to be used for buying commodities.

“Yes, it’s true that we have been potential police targets here they say we’re hoarding forex that’s why they have stormed our place on more than three occasions…i was picked for questioning after they found me with some US dollars but i told them that am a business man and I’ll be leaving for Zimbabwe tomorrow to buy some goods that’s how i found myself free otherwise i would have been heading to police cell,” lamented the vendor.

Curio vendors chairman a Mr. Masamba in an interview confirmed about the police raids.

However, he pleaded for time in order to consult his colleagues before he could grant an interview.

“It’s true civilian police have been raiding our premises…I understand they are looking for those doing currency exchange business, it’s a shame to link a curio vendor with forex issues anyway this is a contentious issue and I just can’t grant an interview to you before consulting my friends….let me come back to you after some time or give me your number  I’ll call you,” appealed Masamba who at the time of posting the story had not yet honoured his promise.

Meanwhile, some police sources while confirming the operation further added that it’s not Blantyre curio that are being targeted saying: “it’s the same case with Zomba, Lilongwe and Mzuzu…the curio vendors have become targets because we understand sometimes they sell their commodities on foreign currency and if they were hoarding forex it means they contribute to its scarcity.

Commenting on the issue a Blantyre based female civil rights activist said although the police are entitled to carry out their duties in professional manner, it is not good to harass citizens for no apparent reason.

The activist said the problem facing government is to find an answer why there is forex shortage in Malawi when we’re claiming that the economy is doing well and on the right track.

She further said: “I’m amazed that every day the media awash with stories of commendation that the economy is doing well but every day the same papers are talking about forex shortage facing the country what is true?  Are we sure that by raiding curios vendors will find enough forex? Or it is just a scapegoat for our failures to give accurate answers to national problems affecting the state of the economy, we must be honest with ourselves,” concluded the activist. 

Meanwhile, the Nyasa Times  has established that the issue of forex is a big problem affecting the country and a snap survey at one commercial bank in Blantyre revealed that there are over $120 million bills awaiting externalisation and whole of this week the bank has only received $50 000.

When Nyasa Times reporter wanted to find out from the bank manager it was all stories and threats that matters of forex are now” political issues”.

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