Malawi government not servicing payments: Broke

Government of Malawi is unable to service its scheduled monthly payments of its service providers because it is facing financial constraints, senior official has told Nyasa Times.

Chiunda: Secretary to Treasury: Government broke?

Major contractors and suppliers have gone two months without payments from government raising a fear of escalating pressure on the service providers to pay their debts to other suppliers too.

“The prolonged elections tussle, unavailability of the budget means nothing can be spent on without the budget,” said the official who opted for anonymity.

This has transcended to a spiral of broke companies that directly and indirectly deal with government.

Contractors are unable to pay their debts to service providers and service providers are unwilling to continue providing services.

This has caused a spiral of broke citizenry whose living somehow is linked to active business with government or its departments and agencies.

One businessman lamented that the levels of liquidity squeeze on the market is tighter.

Finance Minister Joseph Mwanamvekha presented a half trillion kwacha provisional budget in Parliament last month and was approved.

This budget allows  the Ministries, Departments and Agencies of government to start spending and therefore oiling the wheels of the economy once again.

Malawi Government is the pinnacle of most business survival in the African most impoverished but resource endowed country.

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M'Malawi
M'Malawi
2 years ago

What else do you expect from the madandoland where you ” win” the presidency through palm oiling and greasing instead of service delivery?

Operation Chotsa Mbavaa
Operation Chotsa Mbavaa
2 years ago

IT’S OBVIOUS N COMMOM SENSE THAT THIS ILLEGITIMATE N ILLEGAL GOVT IS GOING TO BE BROKE. WHAT ELSE DO THESE DPP THUGS KNOW APART FROM LOOTING STEALING ROBBING THIEVING, PALIBE……. OUT OF THIS TEMP. BUDGET OF MK 522B OVER HALF OF IT IS GOING TO BE LOOTED AGAIN, AND THATS OVER USD 300M WHICH IS GONNA BE IN THESE THUGS FDH N FOREIGN ACCOUNTS. MBAVAA’S ADOPTED SON IS THE ONE MANAGING N PUTTING LOOTED MONIES IN THESE FOREIGN ACCOUNTS…… LIKE FATHER LIKE SON. THESE OPPOSITION MPs ARE ALSO STUPID TO HAVE PASSED THE BUDGET, RATHER THEY SHOULD HAVE BEEN WORKING… Read more »

Jack Ngoma
Jack Ngoma
2 years ago

I am willing to do fundraising for you.. But please no cash-gate with my funds.

Holly Tit
Holly Tit
2 years ago
Reply to  Jack Ngoma

Don’t worry Jack, we will not cashgate your funds. We will fund-gate them 🤣🤣🤣🤣🤣🤣

President Mkango Lion Manthakanjenjemereza
President Mkango Lion Manthakanjenjemereza
2 years ago

This is a pure thefty. half bilion was presented but they want to cut budget by 50 percent in MDAs. These guys need to be investigated.

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