AG asks lawyers tohelp manage debt
Attorney General (AG) Thabo Chakaka Nyirenda on Friday reminded lawyers in the country of their critical role in helping the Malawi Government manage sovereign debt.
He made the call in Mangochi at a sovereign debt conference co-organised by Malawi Law Society (MLS), Reserve Bank of Malawi (RBM) and Malawi Institute of Legal Education aimed at finding a solution to ease the impact of soaring public debt.
Nyirenda, who was a guest of honour, said lawyers advise on and draft the pari passu, negative pledge, maturity, currency, interest rate, the confidential clauses and cross-default clauses.
“They draft money bills that are presented in Parliament,” he told the delegates that included lawyers, government officials and professionals from the financial sector.
From the government side, the AG said, they shall remain supportive of such kind of initiatives in so far as they help to find ways of delivering economic justice for all.
The AG said economic justice is rooted in the idea that an economy would be more successful if all market participants are treated fairly.
“The goal of economic justice is to create opportunities for everyone in a country to potentially strive, prosper and have a dignified and successful life,” he said.
The meeting was expected to generate a conference report that would advance protection of public interest in the management of public debt besides sustaining the MLS and RBM’s joint effort at building a stronger economy under the rule of law.
In a concept note on the meeting, MLS expressed concern that with public debt reported at K7.9 trillion as at December 2022, Malawi has allocated K915 billion to pay interest on debt against K213 billion for the locally-funded development budget.
It reads: “Against this reality, the Constitution guarantees all persons and peoples an effectively enforceable right to economic development with particular emphasis for special consideration given for children and other vulnerable groups in the application of this right.
“To underscore the right, within the Consolidated Fund, the Constitution sets up a fund for the development of the Republic and government borrowing and expenditure is only at the sanction of the public through Parliament. The protection and enforcement of the Constitution is the mainstay of the legal profession.”
MLS president Patrick Mpaka said in an interview it was sad that Malawians continue to be poor with little development to show yet debts keep soaring and interest payments are now out-passing the development budget.
