Chakwera wants to ‘break stupid monopoly,’ stop greed in govt procurement: ‘Best Buy Malawi’
President Lazarus Chakwera has said his Tonse Alliance administration will be implementing policies to ensure there is money in people’s pockets in line with its philosophy by directing all Ministries, Departments and Agencies of government (MDAs) to buy supplies locally.
In a televised address on Sunday night, Chakwera said while that comprehensive review lead by Vice-President Saulos Chilima to propose a new configuration of the three government systems of allowances, employment contracts, and procurement that will cut out corruption is underway, the President is eager to “stop the culture of greed” that has dominated government’s procurement system for decades.
“I am referring to the practice of allowing a few private sector players to capture the procurement system by submitting multiple applications for a single government contract under different companies belonging to the same owner, who at the same time submit applications for contracts in multiple MDAs across the government machinery,” said Chakwera.
He said the net effect of this “pernicious practice” is that the contracts across MDAs and the pay outs for them are concentrated in the hands of a few, “who grow richer under every administration while everyone else gets poorer. “
The President said: “Time has come to break this stupid monopoly and replace it with government policies, legislation, and practice that promote inclusive economic growth.”
He, therefore, directed all heads of MDAs to cooperate with his administration in finding ways of ensuring that no supplier of goods and services is allowed to hide behind multiple companies to monopolize procurement opportunities.
To support local industries, President Chakwera directed all MDAs to give preference to the procurement of locally made goods.
“I have personally seen the great work done by local artisans in places like Ndirande in Blantyre, Mchesi in Lilongwe, Katoto in Mzuzu, and other places, producing everything from office furniture to building fixtures, and yet the young people who do such great work are never given a chance. I am here to change all that,” said Chakwera.
The President continued: “As far as I am concerned, there is no justification for importing things like uniforms and shoes for army and police officers.
“Under my Administration, I want MDAs to prioritize procuring such goods and services locally where they are available. Toward that end, I also urge Government institutions like the Malawi Bureau of Standards (MBS) and Small and Medium Enterprises Development Institute (SMEDI) to help build the capacity of those wishing to supply locally made goods and services to government so as to meet the required quality and quantity specifications.”
Chakwera has also urged the office of the Registrar of Companies to assist the prospective suppliers of goods and services from the informal sector with speedy registration of their enterprises, and also the Malawi Revenue Authority to expedite their inclusion in the tax database.
“At the same time, I expect that local suppliers, manufacturers, and artisans will work with these agencies to raise standards. However, I am putting all public servants on notice regarding these policies because any MDA found to not be adhering to this will be answerable and bear the consequences of their failure.”
Chakwera hopes the Best Buy Malawi Strategy will help boost and propel local enterprises.
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It is the best observation from our leader . Let all stakeholders be players to this effect which includes capacity building , capital provision, prioritising the locals and more.
I feel also the president shouldn’t forget the banking industry as regard to the way how it’s remuneration system is. This is another industry that treats it’s clerks as slaves.
Check their billions declared as profits against a teller’s remunalation.
A better Malawi for all is possible. And this is the first steps towards achieving that.
Monopoly has to be driven out
Talk is cheap
When you read between the lines, Kokoliko Holdings is coming up!
It is all rhetoric. Good at speaking but zero pa ten actions.Fool those who can be fooled not me.
Message to NOCMA, now time to stop using Tanzanian and Mozambican transporters.
If NOCMA fails to comply, they will be reported and they will be personally liable for the breach of the order.
Also this tax drive should be focused on the people who earn high salaries. Malawi has one of the lowest top income tax rates in the world. This is not just a punitive suggestion, it is because imports are predominantly purchased by rich people. It’s the poor who are supporting our internal economy. People will say ‘but imports attract taxes’ but we need to build BUSINESS not increase the size of the government. A country lives or dies based on its ability to do business and the more the economy grows, the more cash a government has to improve social… Read more »
Do you even know what you are talking about? Wait until you fall in the bracket you are referring to and see how it feels to pay 35% of your salary to the government (by extension to crooked civil servants and their families)
Your contribution to the president’s speech makes a lot of economic sense.
Thank you.
Chakwera thinks Malawians are myopic like his fellow bedmates in the alliance. His policies have been there and the files that contain such directives are gathering dust in his own office. When it comes to sourcing Army and Police uniforms within, all he is telling us is that he has designed a racquet together with textile manufacturers to steal through that unworkable and amateurish ploy. Malawi Army used locally made uniforms during late Gen. Yohane’s time (All Green) tailored by an Asian Tailoring Company in Limbe but it collapsed. Reasons for the failure was that the quality was substandard, the… Read more »
The problem is that as a country we haven’t paid enough attention to human capital investments,R&D(Research and Development) to build our own local capacities.
Let’s be optimistic and support the president in achieving this.
When the US under Trump Administration adopted similar policy(protectionist policy) US registered positive economic gains.
The reason why we can not compete on a continental level let alone global is because we have allowed to lower our production standards as a country.
The president is willing to change all that by introducing policies that are effective to that end.
100% Your Excellency! Absolutely correct observations. Cut this out and implement fair practices in procurement as soon as possible , locals will be empowered and will deliver quality services at par with established suppliers in the shortest possible time and in turn this will help accelerate employment and growth of the economy. Weldone Sir! Dont wait on anybody or entity to issue reports, do it the Magufuli way of intervening where necessary and your own way by using your prerogatives or directives to speed up the closing of the yawning gap and inequalities. You got the Power!
Good morning!
Mr President you need to break the yoke of corruption! Government procurment and contracts will always enrich the public service and your ministers involved, as long you fail to be consequential on corruption! By the way , when do you want to start to reshuffle your cabinet?
Good intentions but break the banks too. They are not there to support these Small enterprises. They ask for houses (with title deeds) as collaterals.With this mentality of our banks and other lending institutions towards the SMEs, just know that the intention will flop before it begins.
What else can people use as collateral? The banks know if there is nothing used as collateral the loan won’t be repaid.