Malawi govt warns non performing, limping parastatals
Government has given chief executives of non performing and limping parastatals up to one year to turn tables or face drastic action.
Secretary to Treasury Ben Botolo sounded the warning in Lilongwe during a stakeholders meeting.
Botolo said the parastatals, who are state companies are supposed to give dividends or profits to the government.
“Unfortunately, most of them are not, instead, they ask for money from the government,” said Botolo.
He said next year, there shall not be business as usual.
Martha Chizimba, the chief economist in the Ministry of Finance said parastatals such as Egenco and Admarc are the worst in the energy and agriculture sectors.
There have been outcries that the ruling Democratic Progressive Party uses parastatals to strip the state of its money for personal and party use while Malawi Broadcasting Corporation for the DPP propaganda.
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Mr. Botolo, this is no time for issuing warnings to non-performing state owned enterprises. This is time for decisive action. Why would any “shareholder” give one whole year to entities that haven’t been performing for years (in fact they have been draining the ficus for years on end). Mr. Botolo, we urge you to be a bot serious this time. Restructure and stabilise these entities now and set them for performance and growth. You have wrong structures, wrong people with no competence/skills, no governance with wrong reporting lines. Obviously secretary to The Treasury is overwhelmed and out of his depth… Read more »
Mr Botolo,
Why would you raise this issue that has been known by all Malawians given that your DPP has been at the forefront of looting their funds. Am sure the recent events of how somebody important almost looted ADMARC FUNDS to buy maize serves as a very good example. The incessant requests to give to Mulakho wa Alhomwe and numerous messages conveying congratulatory messages to the DPP Leadership are a good example of how badly you loot SOE funds..