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No pension, vehicles for JB, Khumbo

Close to a year after Malawi Peter Mutharika ousted Joyce Banda from power, his Democratic Progressive Party (DPP) government has not yet started paying Banda and her former deputy Khumbo Kachali their monthly stipends.
The Mutharika administration has also not provided the two with vehicles as per their entitlement, Nation on Sunday has learnt.
The former president, whose two security officers were partially disarmed last week, also says government is yet to provide her a retirement house after she refused the one government gave her in Area 43 in Lilongwe because it needed major renovations to be habitable.

Banda: Not yet paid
Banda: Not yet paid
But the Office of the President and Cabinet (OPC) attributed failure to honour Banda’s monthly pension to State House’s delay to calculate her entitlement.
Banda’s spokesperson Andekuche Chanthunya told Nation on Sunday on Thursday that government has reneged on the vehicles and house promise it made.
A State House press statement in June last year announced that Mutharika had directed government to buy two new Toyota VX 8 vehicles for the former president in accordance with the Presidential Privileges and Benefits Act.
The statement further said Mutharika had directed that Banda be given a fully furnished house in Lilongwe’s affluent suburb of Area 43.
“They said the vehicles have been bought for her, but perhaps the vehicles are still on their way to Blantyre. The house government said it has found for her [in Area 43 in Lilongwe] is so inhabitable that government accepted that it needs to either renovate it or just buy another house.
“Meanwhile, the former president was supposed to be given a housing allowance to pay for a rented house and that has not happened.
“She has not received any monthly pension. The support staff that are employed by government had not been paid, too, all these months until last month, but without their arrears,” said Chanthunya.
He said the former president “has used the normal government systems to press for her benefits, but to no avail.
“We are of the view that the Peter Mutharika-led government is acting in good faith and that the house will be made habitable and that the vehicles will finally find their way to her and that the benefits are paid,” she added.
Banda and Kachali during good old days
Banda and Kachali during good old days
Chanthunya stressed that Banda’s absence in the country should not be used as an excuse to deprive the former president her constitutionally guaranteed benefits.
Ministry of Finance spokesperson Nations Msowoya confirmed that Banda is not receiving her monthly stipend.
“Yes, like all retired civil servants, she is supposed to be receiving a payment on every 14th of the month, but we do not have her papers yet at Treasury, so we cannot start the payments,” said Msowoya.
Clerk of Cabinet in the Office of President and Cabinet (OPC) Ernest Kantchentche said while Kachali’s payments are now being processed, OPC has not been furnished with information on monthly pension calculations for Banda.
“The pay point for the former president is State House accounts office, which is supposed to calculate what is supposed to be paid to the former president and give the figure to the Auditor General for approval and audit verification and then it is supposed to be given to the Accountant General to effect payments. That has not happened and it is our colleagues at State House who can explain the delay,” said Kantchentche.
In Kachali’s case, Kantchentche said, after making inquiries in the Human Resource Department, they discovered that Kachali’s pension was delayed by Parliament’s failure to respond to inquiries on the matter.
“We are processing the payment for the former vice-president. I have confirmed with a human resource officer responsible that we wrote Parliament to confirm to us that the former vice-president is not receiving his salary as MP.
“The former vice-president wrote to us to say he opted for his gratuity and not MP’s salary, but we needed to verify this with Parliament. It is the gap in documentation which has delayed the process,” said Kantchentche.
Kachali, who wrote government shortly after his victory as member of Parliament for Mzimba South West, informing them that he would forfeit his salary as an MP, opting for his benefits as retired vice-president, wondered why a year had elapsed before the two received some of their benefits.
“Does it really make sense that mere cross-checking with Parliament to find out if I am receiving a salary or not can take over a year? What about the vehicle I am entitled to?” Kachali asked.
State House press secretary Gerald Viola dismissed fears that the Mutharika government is victimising Banda, saying government was working on her package alongside other former officials.
“If there is any blame, it should be placed on those human resource people under former president Joyce Banda’s State House. They did not prepare any papers on her remuneration; hence, the current staff has struggled to access vital documentation for purposes of effecting the process. We have since asked OPC for guidance on the matter. Suffice to say, even the family of the late Bingu wa Mutharika [has not yet been paid terminal benefits], so she is not being targeted,” said Viola.
He also said State House was still in the process of procuring a new house for Banda and vehicles for both Banda and Kachali.
Viola said government paid Banda and Kachali K30 million and K12 million respectively as gratuities and said only financial hardships were preventing the State to quickly effect the other benefits.
He added that Banda’s cheque was collected by Mr Lapken Bandawe on 12 January.
According to the President Salaries and Benefits Act, the former president is entitled to a lump sum gratuity calculated in accordance with formula applicable in the case of civil servants or one year tax-free salary, whichever is greater, and a tax-free monthly pension at 50 percent of the President’s salary.
In cases where a house is provided at government expense, the former president is entitled to monthly housing allowance of 40 percent of his/her salary at the time of leaving office.
The former president is also entitled to two motor vehicles (a saloon and 4-wheel drive 10-seater) in addition to free electricity, water and telephone and medical services, among others.

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One Comment

  1. How did you calculate her gratuity if you do not have documentation on her remuneration? Stupid crooks!

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