Money multiplying saga haunts Malawi Finance Minister
All eyes are set on the Malawi’s newly appointed Minister of Finance, Ken Kandodo who is set to present the national budget in parliament under the cloud of a past where he was involved in “money multiplying” scandal.
Nyasa Times has stumbled on information that the country’s purse-keeper was booted out of Blantyre Print and Packaging (BP&P) company after he was involved in a syndicate of self-styled money multipliers led by late James Mwitha in 1997.
Kandodo, then Director of Finance for BP&P, had his personal to holder vehicle, a Mercedes Benz confiscated by the late Mwitha after he had ran out of money to satisfy the demands of the deal.
The incident forced management of BP&P to dismiss him from the company whose chairman then was the current president of the Malawi Congress Party (MCP), John Tembo.
The company is owned by the family of the late Dr. Kamuzu Banda, first president of Malawi to whom Kandodo is a nephew.
After the saga which became talk of the town, the Chancellor College bred economist became a persona non grata in the family business forcing him to leave the country for Mozambique to join a cousin.
In Mozambique, Kandodo secured a part-time job as UNICEF financial consultant.
The Finance Minister had fallen victim of a syndicate which led to some notable business executives in Blanytre duped by the “money multipliers”. Prominent on the list of the victims was former bank manager for the defunct, Finance Bank a Mr. Chinthiti who served a jail term at Chichiri Prison in Blantyre.
Chinthiti was arrested after he had used MK14 million belonging to the bank in a money multiplication deal.
A close pal to the Finance Minister said though Kandodo is educated, he has the tendency of dealing with questionable characters in his life.
His other weakness, close associates say, is his insatiable lust for quick money.
“It becomes debatable as to whether a man of Kandodo’s character is the suitable person to be trusted with the money from the Consolidated Fund,” remarked Andrew Kakhobwe a businessman in Lilongwe.
The position of the Minister of Finance requires a personality of high standing in society to win the confidence of the donors and the public at large.
Kandodo replaced Goodall Gondwe who many have accredited that “the work of his hands” helped the country achieve average economic growth of around 7 percent for the past three years.
”In 2008, the economy recorded a robust growth in real GDP of 9.7 percent, compared to 8.6 percent achieved in 2007,” pointed out President Mutharika in a State of the Nation Address in parliament on Tuesday.
But the new Finance Minister has said there should be no cause for worry on his role at the treasury.
“I have so many years of experience in the private sector … I am quite familiar with issues in the ministry of finance and I would like to tell investors, donors, the public and other stakeholders not to be worried,” he recently told Reuters.
The new treasury Czar has also said he there will be no change in economic policies, sticking with President Bingu wa Mutharika’s position not to devalue the country’s currency contrary to calls by World Band and captains of local business industry.
Experts say devaluating the Kwacha would help cushion the country against the effects of the global economic crunch and enable the country to achieve its developmental needs.
But President Mutharika has declined that the currency be devalued.
Gondwe is reported to have failed to persuade Mutharika for the country to carry the devaluation.
Tagged with: Bingu, budget, Goodall Gondwe, Kandodo
If this story is true, then Kandodo must do the honourable thing and resign from the post. I emphasise ’ IF’ because sometimes these reports can just be smear campaign and mud slinging. On the other hand, if Ken is honest, then good luck to him in his new role. However, if the report is established to be true then it is despicable and scandalous. Munthalika has tried very hard to fight corruption in our country; sometimes at the expense of his own political survivor with the old guards. He must be applauded for that. He has cut his status in the record book as a pragmatic statesman who has demonstrated that ‘it is economics stupid’ that matters in politics. It would be rather treacherous if Kandondo can mess up all that record and goodwill the president has built up and what Malawi is enjoying in the International circles. Unfortunately, our system of appointing people without proper vetting (as the case is in say UK,US) leads to corrupt people being appointed in high echelons of government.
Without regard to tribalism, regionalism or indeed family connection, if it is established that the alleged report is true then the president must, without a grain of doubt, reshuffle the cabinet and appoint a new clean Finance Minister. The country is not short on talent.
We Malawians must learn to respect our own rule of law in order to achieve progress and we must combat corruption and those who perpetuate it in our system of government. The idea of giving questionable people key roles in the Government is the root cause of the past rampant corruption that led Malawi’s development going in reverse instead of forward.
I salute Nyasa Times for this first rate piece of investigative journalism. Keep up the good work.
Check what neo-liberalism caused in Africa, the policies which were set around late 1970’ to 1990’s. I don’t know what Bingu is up to, but he has shown that most of the policies which weakened most of African economies can be reversers.
Democracy is new in most states, just like Malawi and sometimes it needs leaders with strong commanding will to fix things, only that they can be dangerous if they are on wrong course. The moral conscious of most of people has been washed away with profit orientation that they will do anything to get what they want.
It might take time to bring the county back on track whereby families could afford to buy bread without worrying of how they will buy vegetables. If Bingu is playing games with cabinet as others speculate, then he is not a happy person.
Making good use of Goodall Gondwe might not mean keeping him in the same place, but move him to another sector if the current sector is stable or on right path. Keeping him where he has delivered will make him dose but moving him due to games, then Bingu is unhappy person.
Pambuyo pa mwana wa Bingu mind you a bwana sangalolo zopusa. amachotselatu, if he is going to make any mistake sayang’ana nkhope amuchotsa. Go back to your history and see how many minsters amene achotsedwa when they failed to deliver to the nation.
Anthu inu tamusiyani uyu… bwanji simukumunena uyo, wa manziyo, mgalatiya anamusankha unduna chifukwa chogonedwa ija yakumbuyo ndi mphwawo wa… ndata line bambo… mabatchala akusanjika.
he did not know that he wld be a minister of finance, so zakale zatha. he will perform. mbiri yakale does nt assist these days
Honestly speaking i agree with one writer above that Bingu gumbled in going for Ken.We have tried and tested Gondwe.We did not need a change at this point in time.It seems Bingu is more afraid of Goodal because the guy is a perfomer.We could see wonders now that the Government has a majority in parliament.Mr President sir,we still have time.You can reverse your decision.I still insist GO FOR THE TRIED AND TESTED GOODAL!
A kandodo amafuna changu pamalo. Akhoza kutenga 1bn ya boma, ndikuchita masalamusi awo, ndikubweza 4bn. Tilemela nawo amenewa. Ha ha
I would like to concur with those who have written against tribalism. Infact the issue here is about the capability of Kandodo whether he can handle the ministry competently as regard his background.
Performers can eminate from any tribe provided they are given a chance. We have yaoferformers,chewa performers, tumbuka, nkhonde, chewa, tonga sena etc.
I completely agree with you FRA and the others. Tribalism is the last thing we need. Our politics has matured only fools and ignorant people can fall back on tribalism these days. As these elections have shown that voting along regional lines is a faded ideology. I suggest that the government registrate a law that clearly sends to jail anyone who discriminates or advocates tribal hatred. People like Hands ‘Crap’ Kawoko belongs to the stone-age era!! The discussion here is not a personal one but if Kandondo is of questionable character then he does not deserve to be in our public life regardless of which tribe he is from. I would be more than happy to have his ‘brother or sister’ take over as long as that person is competent and of good character. Please do not reduce this discussion to such low levels of non-factual analysis or indeed down to the gutter politics of tribalism. On the other Kandodo may be innocent in which case we support him to continue in his role. So Govt must formally inquire into the truth value of this issue and make the right consequential decision in my opinion to confirm or dismiss him.
am not supprised kuti these things are now out whn kandodo is now in politics even gwanda chakwamba said ” ngati ukufuna kudziwa kuti ndiwe olungama yamba ndale”
Khumbize and Mphatso uhure musiye to save the image of money multiplying brother.