Cash-strapped Malawi pays SADC K1 billion membership dues

Malawi’s  cash-strapped Democratic Progressive Party (DPP) government, in the absence of donor support and a weak revenue base, has honoured its commitment to the Southern Africa development Community by paying close to US$2 million (MK1billion) in outstanding membership dues.

Minister of Foreign Affairs George Chaponda; Leads Malawi delegatio n at SADC summit
Minister of Foreign Affairs George Chaponda; Leads Malawi delegatio n at SADC summit

The amount, paid on Tuesday, is 0.1% is of Malawi’s MK930 billion 2015/16 national budget.

Nyasa Times has in possession a document that proves the payment.

In the infamous Cashgate scandal, an estimated $20- to $100-million went missing from government funds through a systemic scheme by public servants and fictitious companies where monies where paid out for gods and services not rendered or delivered.

As a result of Cashgate, foreign donors put on hold $150-million for the 2013-14 fiscal year. An estimated 40% of Malawi’s annual budget is donor-funded.

And Minister of foreign Affairs and International Cooperation George Chaponda also confirmed during a news conference at the Gaborone International Convention Centre that Malawi has settled its obligations to SADC.

“What is important is that we have paid what has accumulated in years,” said Chaponda and evading the question of how long the ‘debt’ had been outstanding.

Article 26 of the SADC Treaty stipulate that SADC’s funds shall consists of contributions of members states, income from SADC enterprises and receipts from regional and non-regional sources.

International media on Monday reported that Malawi’s financial crisis had indirectly persuaded President Peter Mutharika to stay at home, because Malawi had failed to pay its contribution of almost $2 million on time, but promised that the money would reach the SADC secretariat by the end of summit on Tuesday.

“That’s not true. The President failed to come because of pressing issues at home and he personally communicated that to the SADC leadership,” Chaponda said.

But Chaponda conceded that Malawi was “passing through a difficult period”.

Mutharika has repeatedly said the decision to cut aid to his impoverished southern African nation has contributed to “economic hardships”.

The country suffered another blow earlier this year when severe floods left more than 170 people dead and 200,000 homeless, as well as severely damaging infrastructure. Malawi is seeking $80 million from donors for reconstruction.

In February Mutharika pleaded with the World Bank for more aid, saying his country was in “desperate need of donor support”.

Donors have said the aid will only be restored when the government implements sound financial management systems to seal loopholes that enabled civil servants to collude with business figures and politicians to steal state funds.

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Denny
Denny
5 years ago

What is the accounting for the proceeds of the sale of the Malawi Savings Bank? And in such a situation, why would someone be dreaming of building a Banquent Hall, really? When shall we learn to leave by the rule of law and respect government funds – as funds for the nation and not for persons in political offices nor for those in the civil service? Perhaps we can only learn when the donors put a grip on their purse instead of pouring money into a pocket with holes.

not myname
5 years ago

You DPP {DEVIL PATRIOTIC PARTY}follow quickly what donors instructed don’t you see people are going below from what they were before 49ys ago’s poverty line

s ellen nthata
5 years ago

some commentators are fools. Why are we sometimes fool?
I think its becouse we speak without reason to. Not everyone should comment guys better listen and see how and who is commenting why still observing why one comments. Where are you commenting at also is important…..
Search Me

nyg
nyg
5 years ago

Govt Has Done Right. Remember That Even The Most Economically Challenged Family Has To Settle Bills Lyk: Xul Fees,fud Costs,etc. SADC helps malawi in funding some projects. If GOD kps his obligation to save some ppo even though everyone is a sinner,then wat abt govt fulfilling obligations 2 SADC? Analyse issues critically. whether it wz udf,mcp,pp,aford they wud’ve done da same!

elias banda
elias banda
5 years ago

no co
mment

Gu
Gu
5 years ago

The much publicised reforms can do us good economically if done especially to reduce PSs.

Mpumulo wa Bata wayandikila
Mpumulo wa Bata wayandikila
5 years ago

Misplaced priorities!!!!

Dwambazi
Dwambazi
5 years ago

Yes, the new health minister is a British Citizen. He is not a Malawian coz Malawi does not have dual citizenship.

anadimba
anadimba
5 years ago

pajanso aPresident ndi aku USA.mwaiwala za greencard abale?dzikoli likutsogoleredwa ndi ma foreigners .Amalawi kuputsa.kungochokera kunjako kudzafikila pwevupwevu. Koma ndiye Pitala watipezerera.

angoni
angoni
5 years ago

Is this included in the budget kapena ndi za msb zija zayamba kutafunidwa without approval?

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