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Extravagance: APM buys K100m vehicle amid hunger and poverty

As the country struggles to feed 6.5 million food insecure Malawians this year, amid many economic challenges, President Peter Mutharika can still manage a K100 million ($100 000) vehicle.

The government’s poor economic position has forced it to cut spending in many sectors including in health and education.

The new luxurious top-of-the-range Lexus now decorates Mutharika’s convoy
The new luxurious top-of-the-range Lexus now decorates Mutharika’s convoy

Meanwhile, the number of people in need of food aid is expected to rise to 8 million, according to a yet-to-be released report. This is according to Members of the Parliamentary Committee on Agriculture.

The President’s luxurious top-of-the-range Lexus now decorates his convoy and was on display on Thursday as Mutharika launched the National IDs project at Bingu International Conference Centre in the capital, Lilongwe.

The posh car manufacturer’s website and websites of other vehicle dealers, put the car’s average price around $90 000 (K70 million) but indicated it can cost as high as $100 000.

A total of K5.3 billion was allocated to State House in the 2016/2017 National Budget although there was no mention in the budget estimates that Mutharika intends to replace the fleet of his convoy.

The 2016 Lexus LX570 costs around $100 000 a unit
The 2016 Lexus LX570 costs around $100 000 a unit

However, in June, as Parliament discussed the various budgetary allocations, opposition MPs protested the allocation of K1.4 billion ($2 million) to the State Residence’s budget for Very, Very Important Functions which analysts suggested could translate into close to 30 foreign trips by the President.

Presidential press secretary Mgeme Kalilani yesterday said there was nothing extraordinary about the procurement of the vehicle as it was approved by Parliament in 2015 and quashed allegations that the procurement was insensitive.

Said Kalilani: “Firstly, it has to be understood that it’s not the President who purchased the vehicle but government in this case, State House. The reason the vehicle has been bought is because the fleet of the presidential convoy is very old, as old as 1o years old and this was becoming a security threat to the President. Additionally, Parliament approved this expenditure which allowed State House to procure 8 vehicles but the President, noting the economic conditions prevailing in the country, only authorised the procurement of one vehicle.”

Gondwe: I am not aware
Gondwe: I am not aware

Donors, including the International Monetary Fund (IMF) which has postponed its Extended Credit Facility (ECF) to Malawi to next year, have described Malawi’s state as bigger than its economy.

Minister of Finance, Economic Planning and Development Goodall Gondwe, in a recent exclusive interview, pledged that government will cut expenditure by 30 percent observing “there is quite a lot of expenditure which is chaff and we can continue working efficiently without it.”

In an interview yesterday, Gondwe fell short of defending the procurement of the vehicle saying only State House can explain the rationale behind the procurements.

Gondwe said: “I am not aware of the purchase of the President’s vehicle. We gave State House a budget and they have decided to use it the way they found fit. We don’t control it.”

Asked whether this procurement was in line with the gospel of expenditure cuts he has been preaching and what signal it sends to observers and citizenry, the Treasury czar added: “anyone will have to cut expenditure so this means State House will cut their budget somewhere. Why should I be the only one commenting?”

Malawi Congress Party (MCP) deputy spokesperson Ezekiel Ching’oma described the timing of the purchase as shocking and “very wrong”.

“We all expect the President to walk the talk when it comes to the implementation of necessary priorities that would benefit the local man. Remember there was an outcry when this very government bought expensive cars for parliamentary leadership? And a strong voice came from the DPP. Didn’t the government learn anything from that occurrence? Why is the government behaving as if all is well? Is it not an obvious fact that there’s a collapse in the government service delivery?  And key sectors such as health, education, and agriculture are the most affected. Is this the right time for the President to live sumptuously? Seriously?

“Whilst Malawians are grappling with poverty to the core? This procurement would be equated to milking a very thin cow. We are in trouble,” said Ching’oma.

Human rights activist Billy Mayaya yesterday accused the presidency of ignoring the plight of the suffering and equated the abuse of resources to “theft” and “selfishness of the highest order”.

Government has also struggled to pay on time civil servants, while procurement for many essential equipment or the hiring of crucial workers even in crucial sectors such as health and education has been suspended as government negotiates through turbulent economic times.

The procurement of the vehicle has attracted scorn from commentators on social media who accused the President of living in opulence amid rampant poverty.

Last year, government through State media heavily criticised Speaker Richard Msowoya, who is vice-president of opposition MCP, for procuring a new vehicle.

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3 Comments

  1. Am 100percent sure if it was in europe he could faced trouble.. and I dont think European leaders can buy 100 thousand euro car… they cant… I dont understand africans..

  2. Why you always count each and every tambara that the state spends? Is it due to ignorance or envy? Open your eyes and stop this malpractice. Let the President earn the respect that he deserves.

  3. Joel, your thinking is flawed? You are inconsiderate. How do you justify spending K100 million on a vehicle when millions are saddled with poverty? What type of a leader is APM.
    This country will NEVER develop with your kind of thinking and leaders like with APM

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