UK says Malawi must end culture of impunity: ‘Malawi’s financial system a leaking bucket’

Britain has described Malawi’s Public Financial Management (PMF) System as a “leaking bucket” that requires serious attention before several donors particularly Britain resumes providing its support.

Permanent Secretary of Britain’s foreign aid wing-the Department for International Development (DFID) Mark Lowcock who visited Malawi this week said Britain also want culture of impunity to come to an end in Malawi.

Mark Lowcock, permanent secretary of DfID

Mark Lowcock, permanent secretary of DfID

Lowcock described the cashgate scandal as a big problem that needs to be dealt with to reinstall donor trust.

“What we have said is cash gate is a major problem, and it is a basic problem for people of Malawi, the task payers here whose money was stolen. And two things for us to go about it, the first thing is for a proper series of investigations, a proper judicial process to be taken forward so that concerns others might have about a culture of impunity are effectively addressed” Lowcock told Weekend Nation mewspaper of 20th September, 2014.

He also advised the government to rectify its Financial Management System so that a thing of similar nature [cash gate] will never happen again.

“The second thing that needs to happen, the problems that allowed the theft and fraud; the cash gate to take place are fixed and a proper financial management system, that means a lot of work in financial management. Until those problems are fixed, it will perhaps not be the most appropriate thing for donors to put more money into a leaking bucket,” said Lowcock.

According to Lowcock, the process is for the government to complete and take forward the reforms for the weak financial management system and to take forward the policy thinking on IMF programme.

He said this will allow growth and then, when the donors collectively are satisfied, they put money back and it will be used as intended.

The Britain Foreign Aide Secretary confessed that everyone wants to support Malawi but not in its current stand.

He further said no time frame has been set for the Malawi government to clean up the mess.

Malawi Finance Minister Goodall Gondwe assured the donor community that the government is working tirelessly to make sure that all the irregularities are fine tuned.

He however said the amendments are not being made because of the demands from the donor community but for the good of the Malawi nation.

“I cannot give a timetable on when we will be able to do this but it will happen. However I don’t want to create an impression that we are doing this because of donors, we are doing this for Malawians. This is good for Malawi. Malawians don’t want cash gate to happen again” Gondwe is quoted saying.

Malawi has just implemented a K742 billion zero aid budget with a deficit of K107 billion.

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mona
Guest

Nanga za 92 billion za bingu government zili pati

Bonyongolani
Guest

Cashgate to be investigated yes , but how about 61illion scandal?

Concerned citizen
Guest

Why do we need someone from oversees to tell us the obvious, then we act????

At this rate no one will take our country seriously.

I sometimes ask myself, what would have happened to each and every one involved in cashgate in Kamuzu’s time??? Would this not be justifiable in our time???

Please let’s wake up. Something very serious needs to be done….

kukukuki
Guest

Paja mwati Muli alandira 1 billion Kwacha kikikikikikik. Is this not another version of cashgate? zanu izo my dad told me never waste time with politics because all players rape the same whole our taxes

Mong'onyolani
Guest

APM is now in power. He shud expose all names as soon as possible

Ibrah Msosa
Guest

Yes the government must clean up the mess

martin nkolokosa
Guest

Whatever the donors are saying its good for them, but I as a citizen of malawi its my only wish that one day we have to survive without donors and I guess this is the right time. I know that it won’t be an easy road but if we can work hand in hand plus working harder we gonna survive. Every journey got ups and downs but one day this journey will have a beautifull destination called success,remember it won’t be today or tomorrow BUT years coming.let’s make a future Malawi starting from today.

Sapitwa kakulanye
Guest

Let it be. You cannot force someone to donate anything. If donors feel Malawi financial system is a leaking bucket and cannot support, let it be. We wish them well.

MKango Lion Manthakanjenjemereza
Guest
MKango Lion Manthakanjenjemereza

Yes Malawi system fails to address financial mismanagement. See until today the National Audit is not independent and also underfunded, and has a man who is not independent as its head Kamphasa, He hid names for cashgate. Central internal audit is not also well funded, What the politician know is to fund ACB. Let us be serious does ACB monitor financial system.No, So all cash gaters be happy for audit will not catch you.

drogba
Guest
after all is said, I feel UK is just exaggerating about this cash gate thing for being the reason why they are withholding their aid to Malawi. we all agree that the cash gate was and still remains one of the worst thing that government officials did to our economic downfall, but I think its time to move on. UK please dont make us believe that Malawi is the most corrupt country that ever existed in the world just because if cashgate. I think you’ve over blown it and found it to be your scapegoat. As of this year, we… Read more »
patrick
Guest

The UK does not think that Malawi is number one problem with money, not at all. In fact, Malawi is respected. The UK is disappointed, a favoured friend letting them down. I know, I live there, and there is much good will.

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