Simbi help reignites calls for regulating party financing

South Africa – based businessperson Simbi Phiri’s revelations that he is supporting governing Democratic Progressive Party (DPP) and major opposition Malawi Congress Party (MCP), has led to fresh calls for speeding up the enacting of a law to regulate political financing.

The development has also called for the need for various political parties to declare their other sources of funding to ensure similar scrutiny is attached to their contracts with government.

Phiri’s company, Khato Holdings Limited, was awarded a $500 million (about K400 billion) project to construct a pipeline supplying water from Lake Malawi to Lilongwe, which has come under intense scrutiny.

But some quarters have deemed Phiri’s support of the two parties ‘State capture’, saying such gesture will defeat the oversight role of the two parties on the project.

Chancellor College-based law expert Edge Kanyongolo said there was a need for immediate passing of the political financing law to avoid underhand deals.

“It is actually long overdue. The proposed law on political financing actually makes disclosure mandatory. What is important is transparency.

If people knew who was supporting the parties, it could help the citizens understand whether there is proper scrutiny to the contracts.

“In the absence of such a law, underhand deals and corruption flourishes. It is difficult to assess whether there is enough oversight on such contracts,” said Kanyongolo.

Political scientist Joseph Chunga, in a separate interview, called upon MCP and DPP leaderships to demonstrate, through their actions, that they are committed to defending values of good governance despite the funding from the businessperson.

“There are two issues here. First, the person has confessed that he is supporting both parties, which is very commendable and should be encouraged. The second issue is that of oversight in such a situation where the businessperson with contracts with government is financing both parties. It is important to state that there is nothing wrong with supporting the parties, too, but this must be supported by law with clear guidelines, and, secondly, the parties should be able to demonstrate that they are providing the necessary oversight over such matters,” said Chunga.

 But rights activist , Billy Mayaya while noting that the sponsorship of the parties might compromise their oversight role outside Parliament, said the public expects the parties to rise above partisan interests inside Parliament and scrutinise the project.

“There should be a bipartisan effort in the House to ensure that there is oversight on the projects. The task is mainly for the committees with mandate on water and financial issues. They should take a lead in ensuring transparency. It is a national project.

“This must be a lesson that all companies and individuals whether foreign or local that want to invest—should come under similar scrutiny.

They should also be accountable enough to declare what exactly they are providing to the parties,” said Mayaya.

Government spokesperson and Information Minister Nicholas Dausi pleaded for more time to consult on the matter.

“On the sponsorship issue, I must confess, let me consult the relevant ministries. I really don’t know what he [Simbi Phiti] is giving to DPP. So, I also want to consult the party secretariat,” said Dausi.

But DPP spokesperson Francis Kasaila dismissed any fears that the party has been compromised and also dismissed Simbi’s assertion that he has supported the party financially.

“Can you ask for evidence that he has supported DPP. We know he bought Chakwera a vehicle. I don’t know any support he has rendered to DPP. It is not true and it is high time such speculation was stopped by you people in the media.

“That Bill [ on party financing] is being championed by DPP government so we want accountability as well. We are the most transparent government, people talked about Access to Information [ATI], we brought ATI. We will support that Bill,” said Kasaila.

MCP deputy secretary general Eisenhower Mkaka dismissed allegations that the party has been muted on the water project due to Phiri’s generosity to the party.

“You are aware that the chairperson of the Public Accounts Committee [PAC] is a member of MCP. The position of PAC chairperson is evidence that the party is being critical.

He cannot be saying something contrary to the position of the party. Mr Simbi Phiri started supporting MCP way before the 2014 elections, he didn’t start because of the project,” said Mkaka.

Section 23 ( 2 ) o f t h e proposed Bill reads, in part: “A registered political party may, for the purpose of financing its activities, appeal for and receive donations from any individual or organisation in or outside Malawi provided that the source of every donation exceeding K1 million from an individual donor or an organisation shall, within 30 days of its receipt be declared to the registrar [of political parties] by the parties concerned.”

The Bill also stipulates that any person who uses or threatens to use force or violence, injuries, damages or harms any person who donates or intends to donate any funds to a candidate, or a member of his family or any of his undertakings, commits an offence and is liable to a fine of K500 000 and imprisonment for five years.