Malawi MPs force House to adjourn budget debate over loans: DPP lawmakers also need advance
Malawi Parliament on Tuesday morning grinded to a halt when lawmakers forced first deputy speaker Esther Mcheka Chilenje to suspend the House for 45 minutes to allow the welfare committee to discuss on the General Purpose Fund (GPF).
The members demanded clarifications on their conditions of service to have their access to General Purpose Advance.
Parliamentarians warned they will only continue with deliberations of the K1 trillion national budget if Minister of Finance and Economic Planning, Goodall Gondwe makes a statement.
MPs from both ruling Democratic Progressive Party (DPP), opposition and independents want Treasury to give them GPF loans of K5 million each which they are supposed to repay between now and 2019.
The loans are obtained from commercial banks with government acting as collateral. The legislators get a 90 percent interest subsidy which the taxpayer foots and another 50 percent subsidy on the principal amount.
The MPs argue the loan facility is part of their privileges in their conditions of service.
Treasury Secretary Ronald Mangani informed the Speaker informing him that Malawi government has over K2 billion arrears with the commercial banks for Members of Parliament personal vehicle loans and cannot extend more loans to MPs.
Follow and Subscribe Nyasa TV :
It is quite simple. If they cannot take the same austerity that the general population is taking they should leave the country. It is interesting to note that a commercial bank considers an MP a high risk customer. They know they are untrustworthy so why should we have them managing our country. We need a very slim management committee and do away with the expense and false parliament altogether.
signs of our times
Sometimes I feel ashamed to be a Malawian. The issue here is about a loan not a grant or anything else. Be informed that these people can not access bank loans easily from lending institutions as they’re deamed to be of high risk. Reading from the trail of comments one would conclude that our country is full of envy and lack critical thinking.
We can not call these people honourable . They are a disgress to our nation by their selfish behavior. They want to continue milking an already very very thin cow-Malawi. I hope treasury will put its foot down to stop these people.especially when treasury says the Government is already in arrears on car loans for the same people.
We can not call these people honourable . They are a disgress to our nation by their selfishness. I hope the treasury will put its foot down to stop these people from milking an already very very thin cow – Malawie specially,when treasury says Government is already owing MW 2 billion from their car loans.
When are you doing the same to change electral laws? We dont want zomaba mavotizo pliz chonde
Surely it is justified if the loans are embedded in the MPs’ service of condition. It was the same government that made the service of conditions and it will just be right to follow what was written. Just like judges, teachers, nurses and all other civil servants have the right March or boycott work so do the MPS have the same right. It’s about being right and following what is in the condition of service. I wouldn’t want an MP leave the chamber and be vendor just because he is not being paid what is due to him. Ironically, all… Read more »
when i first read “LOANS”, i thought it was over student’s loans. but now i do not know what our honourable members of parliament think or who they represent. Just last semester, more than 10 students voluntarily withdrew at Malawi University of Science and Technology just because they were denied education loans. if you want to know the truth, please come to the campus and find out. students used to take bread and juice and go to bed, expecting them to perform. MPs please try to discuss some wisdom
MPs should first force govt to reconcile with donors who normally help all of us (not only MPs) with budgetary support. Donors are willing to help Malawi, but this govt is adamant not show commitment to curtail theft of public finances. This govt, because it is a stealing govt, is unwilling to prosecute cashgate culprits as long as they are DPP sympathizers – and this is where the problem with donors lies. And this is where MPs have to start working, not demanding for loans when govt has no capacity to pay them back. Malawians are all starving because of… Read more »
that is the reason we remain poor in this nation, selfishness!!!!!