Exodus in Malawi Parliament: Opposition MPs walk out as DPP foils bank interest rate cap bill
Members of the main opposition Malawi Congress Party (MCP) and erstwhile ruling People’s Party (PP) on Thursday walked out of the House in protest over moves by the ruling Democratic Progressive Party (DPP) to stop MCP member of Parliament (MP) for Dowa West Alexander Kusamba Dzonzi from moving an interest rate cap bill—officially known as Financial Services (Amendment).
The bill would put a cap on high bank interest rates commercial banks charge to borrowers.
Dzonzi was expected to move the private members’ motion amid allegations that he turned down a K200 million bribe from commercial banks for him to drop the motion, an allegations Bankers Association of Malawi has vehemently rejected.
But as he was set to move the motion, Blantyre City Central MP, Themba Mkandawire (DPP) asked for standing orders to be waved to have government Ministers answer questions from legislators.
Thursdays are reserved for private members motion but DPP said it should be government business to answer questions first, effectively blocking Donzi from moving the motion to put limits on how much interest rates banks, microfinance institutions, accos and other lenders can put on loans.
Pandemonium broke out in Lilongwe, the seat of parliament, when House speaker ordered a division vote and the government benches said to have won. A shouting match began by MCP led by its Chief Whip Robin Lowe.
The PP legislators also trooped out.
The Bill’s sponsor, Dzonzi, told Nyasa Times later that his MCP party walked out because it did not want to be party to proceeding sagainst the wishes of the people, arguing the proposed legislation will create a win-win situation between money owners and lenders.
“Malawians are watching and know that the government has been palm oiled to block the bill. DPP is denying Malawians the right to access lower lending and interest rates. We will still push for this bill back in the House, no matter when.
“Banks should not steal from Malawians. They pay themselves
when the owners of the funds are languishing,” he said.
PP leader in parliament Ralph Mhone condemned DPP of “doing things against the interests of poor Malawians.”
But inside the house the DPP MPs, buoyed on by its parliamentary alliance partners United Democrtaic Front (UDF) Mps, went ahead to have ministerial questions time.
The commercial banks, through the Bankers Association of Malawi and Reserve Bank of Malawi have been meeting the members of parliament, giving them brown envelops with K200 000 each in order to lobby them to reject the motion.
The Financial Services Amendment Bill seeks to regulate and regularize the setting up of a ceiling of interest rates charged by banks to a maximum of five per cent below the lending rate.
At the moment, banks are squeezing growth of industries because of exorbitant rates charged forcing companies not to borrow which squeezes growth.
But Paul Guta of the Bankers Association of Malawi said the bill is aimed at killing the banking sector in the country.
“In Malawi, banks are already operating in volatile financial environment. If this is passed into law, some banks would collapse,” he said.
But Consumers Association of Malawi (Cama) as well as audit and corporate governance expert Anthony Mukumbwa backed the bill, pointing out that banks are squeezing the growth of industries because of exorbitant interest rates charged, forcing companies not to borrow, which squeezes growth.
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The key to economic growth is lower interest rates but also a strict credit rating system that allows the banks to reduce exposure to risk and losses. All booming economies have this 2 factors. Develop those 2 and things will start moving in the economy. Simple..
Since when did DPP care about the poor people other than their own pockets and those of their cronies. DPP has always been short-sighted. people are and will continue to die under DPP. People are and all continue to be poor under DPP. people are and will continue to walk naked under DPP. People are and will continue to live in houses that leak. Ordinary people are and will continue to go to bed hungry. DPP government doesn’t think of poor people. To DPP people are just good for votes and nothing else.
Let the banks charge interest on the money loaned out. Thy issue is they should not make obscene, immoral and exorbitant profits at the expense of the borrower.
Open any of the dailies and you will be surprised at the number of bullring’s being offered for salbecause the owners have been unable to service their loans. Banks just look the other way. Proceeds from the property sales adds to the bonuses banks pay out to
if indeed Bankers were giving out envelopes, and if indeed we have ACB it means ACB has a job to do.
Money rules democracies ……….
This is the result of shallow minds when they are entrusted with making laws. How do you expect a person like Khumbo Mkandawire to contribute to this honorable house?
Stupid! If they have balls, they should have walked out before division (the vote). Participating in the voting simply means they were party to the consequences and that democracy won (the majority) they should have accepted the outcome. Agulugunyinda. That is why MCP will never rule this country.
From an economic perspective, input based solution like interest caps or subsidies distort the market and hence it would be better to let the market determine interest rates and or support certain desirable sector through other means which banks in Malawi wouldn’t. But in a market infested with predators banks and collusion between bank’s CEOs. Interest cap is the only solution. Kudos Hon Dzonzi we fully support the bill and do not give up. What a compelling motion it was. You are the disciple of the poor. When ordinary people steal they go to jail and when banks steal they get bonus.
We know the Speaker and the Government side have been corrupted to block this pro poor Bill. Shame on you Right Hon. Msowoya and the DPP elite
queit pity when We have leaders who have theirs bellies first .at. the expensince of all malawians!! malawi cannever develop with Such typ of leaders….how can the govt which is supposed to serve pple frustrate a Bill like that…….right now as am speaking these banks r giving loans to poor farmers calling them agriculture loans with huge interest rate….farmers have to work for the whole year only to realise they have paid everthing to the banks…there lives have never changed!! u pple dont have a heart
MPs without foresight. How can they frustrate a bill that would have benefited Malawian businesses and individual borrowers? The good news is that most of these DPP MPs , who are good at frustrating bills in parliament, are not coming back. This is their last sitting. I don’t know what they will frustrate outside parliament.
This is Thom Mpinganjira at work again. I owed his bank 300,000 in 2012 and was told a month ago that my loan has accumulated up to 2,000,000. If this bill was passed, I’d be owing 600,000. That’s what this bill is about. Sadly most of these MPs owe banks millions and this will come back to haunt them. Cry my beloved Malawi
Thats when they will know that you need training to dance to Dombolo
Why would you owe 300,000 for 6years. U didn’t pay back in the agreed timeframe and u expect not to be penalized. You are the people who make banks penalize others who can afford to pay back in time.
MAKAPE INU MMESA MULIPO AMBIRI MMATHAWA CHANI.MMALIMBANA MZOSATHEKA BWANJI.DPP MMADZULO SIMUNATI.WASALA NDIUYU OLEDZERA ASADAYANKHULE PA MSONKHANOYU ATIMVA
I thought this bill would even help your poor relatives, this just shows how pathetic our society has become…..Ndale zakuthana the loosers are always village folks.
DDp gets part of interests
practically no democracy here
!
We voted for you to takle issues head on not running away.I hope they should not pay you full allowance for this.You to argue with facts not by walking away.
My brother i dnt knw hw ignorant u are. Malawians are suffering cz of nt knowing wat are good for them. Banks hav bin stealing money from poor people. They make alot of deductions that u dnt even knw. Banks sre supposed to gv interest to customers bt its nt the case anymore. Try to put any amount of money today they will tel u alot of benefit of banking. Go and withdraw that amount u will find nothing added bt deductions. Govt should protect peaple nt giving them to crooks. Tnx
Malawi will not get any where in economic growth when banks keep on charging exorbitant high interest rates. Check with countries whose economies are flourishing. Rwanda RSA Botswana. One of the factors is that their lending interest rates are low and therefore, industries and individuals can afford to get loans which they are able to pay back at affordable interest rates.
There should be a cap indeed. Financial institutions in Malawi charges some of the highest rates in the world. It is robbery.
The other industry that needs caping and regulating is the mobile network providers . It’s day light grand theft. The amounts they charge for data useage and air time rates, it’s absolutely ridiculous. If the government is serious about development, it really needs to regulate this industry. These providers takes Malawians for a cash cow. I have been fortunate in my life that I have visited 33 countries and out of all these countries, Malawi has the most expensive telecom rates. Cry blood Africa!
Banks are really stealing from poor Malawian, imagine the profits that are declared !!! Mixxew
Fake news in a Kongolesi mwadziwa liti za ma interest rates kuti ndi okwera? Is it not government that brought them down to about 24% from 44%? Kale lonseli bwanji simumalakhulapo? Now you want to snatch the credit? Fools, Inu tapitani mizikadyetsera ng’ona zanu zija basi.
Malawi is doomed; Indiana Jones; Most MPs are poor and corrupt
This country is under attack; The guy ruling knows that Malawians are poor and can not do anything; And MPs do have standard and Thawi yakumapeto anthu adzakhala odzikonda okha; Sigulu lothandiza anthu;
To my dismay, The DPP ally Vice President Chilima’s MPs decided to be absent on an important bill like this one.
The man can’t even influence his own followers to go represent the poor Malawians on this important bill.
Now the rumor must be true, that Chilima and the UTM are actually DPP out there to frustrate the Independent vote. DZUKA MALAWI DZUKA! Ever since, the Kaliatis have been on the government side, either by being absent or voting against the poor masses legislations. 😥
Which way did UDF vote? The fragmentation of PP is now obvious our revered runways to DPP voted honourably with all the hope that the passport case is water under the bridge plus the inclusion into any cabinet appointment as January nears. My best wishes to Uladi Mussa & Ralph Jumma you’ve never betrayed your principles
This is the Malawi I know, where all good things do not pass through the parliament, it is heavily compromised by EVIL and its DPP and UDF satanic agents.
That is why I am writing here today, NO MATTER WHAT this country can only move forward by a revolution to RESET the system…..the way things are being run. Evil and darkness are deep rooted that if we go by the way we are doing things at the moment, it will take over 100years to develop this country because these evil agents are having their children who are also being taught this evil art the way Atupele is doing after being advised by his father.
All good Bills for Malawians have been and will always be ie Electoral Reform bill and now this bill etc will be still born by these highly selfish govt agents.
God is seeing all what is happening, one day, I mean one day God will help His people. How could a sober minded MP not see how helpful this bill is knowing that even the same have heavy financial burdens to settle their loans to the banks.
I agree with you entirely. That is why I said the other time that these Malawi members of parliament need mob justice like what was about to happen during Bingu’s presidency.
Dont worry, DPP wont be there to block anything next year, they are finished.
Government MPs why blocking the tabling of this important bill. You accept useless bills and leave out the most important. We are watching you and come May 2019 you will be voted out. Very shameful
We can survive with the collapse of one bank as long as we have a win -win situation on the ground, people make money so they’ve got to be treated as such. Banks should not have to squeeze people even making them poor actually. The MCP”s MP is bringing sanity to the market, and that’s, if you really love your Mother Malawi. I am getting worried, i mean people are even bribing people, trying really hard to keep the status quo; keep the poor poor and rule until Jesus comes back.
DPP is going brethren don’t worry this bill will passed in the new financial year with Dr Laz as Head of State and young Minister of Finance Kusamba Dzonzi watch out Malawi DPP is a killer party enough is enough God is giving us a destiny to rest from all evils of DPP.
DPP government will never sympathise with malawians, they love money too much more than human beings. Alot of companies have been liquidated thereby causin their workers to be jobless. Now you are siding with the banks to foil the bill that stands for poor malawians???? koma osanama anthu awonjeza awa. May 2019 is coming we will have our say through the barrot box
Chilama also has been back kicked. You never hear talk during his rallies .The man to be back kicked is the Spear he loves money too much.We need business