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BJ blasts donors on cashgate

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Brown Mpinganjira: I have a serious problem with donors
Brown Mpinganjira: I have a serious problem with donors

Malawi Minister of Information and Civic Education Brown Mpinganjira on Thursday hit at the country’s donor community for subjecting the People’s Party (PP) administration to what he called “unfair punishment” on the Capital Hill cashgate.

Speaking during the dedication ceremony for the Church of Central African Presbyterian (CCAP) Blantyre Synod Radio the information minister said donors had no justification to suspend their budgetary support to the country “because President Joyce Banda has shown willingness to combat fraud and corruption through measures she instituted way before the cashgate came into the limelight.”

Said Mpinganjira: “Instead, President Banda should have been complimented and assisted in her efforts to fight fraud and corruption. It is unfortunate that instead of giving her the support she needed in her fight against the vices, she is being punished through withdrawal of budgetary support”.

Mpinganjira, who is also the official government spokesperson, feared that double standards played by the donors may eventually worsen fraud and corruption levels in Africa.

He said most African countries would stop combating fraud and corruption decisively to ensure donor taps keep flowing.

“I have serious problems when donors suspend their support where leaders have shown their commitment towards eliminating fraud and corruption.

“In essence, this means our donors wouldn’t mind if the cashgate was kept under wraps,” he observed.

Two weeks ago, Malawi’s major donors under the Common Approach to Budgetary Support (Cabs) announced the withholding of $150 million (about K60 billion) earlier earmarked for the October and December quarter of the 2013/14 financial year due to financial mismanagement at Capital Hill.

The donors expressed disappointment at revelations of the plunder of government resources and have since delayed budgetary and sector support until corrective measures are taken.

Donors contribute about 40 percent of Malawi’s national budget while contributing funds towards the sectors of transport, water, health and education.

Cabs chairperson Sarah Sanyahumbi is on record to have said trust and confidence between the donors and government was lost and it would take time to rebuild.

And this week, the International Monetary Fund (IMF) said Malawi is “in a crisis situation” and asked authorities to ensure “drastic actions” to normalise relations with the country’s development partners.

The IMF also condemned recent revelations of misappropriation of huge sums of public funds at Capital Hill, saying the situation has triggered anger among Malawians as well as uncertainty to Malawi’s economic outlook.

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8 Comments

  1. Ngati BJ wakalamba chonchi nanga komweko kuli Chakwamba akuoneka bwanji? Koma ati wajoina pp.Koma pa Malawi!

  2. That’s a problem of having senile old men in such high profile positions, it is an embarrassment not only to the president who appointed this man into this position knowing full well how mentally handicap he is but also most importantly to the whole Malawi nation.
    Can someone close to this idiot advise him that donations from our donors are just a privilege and not a right. What his govt should do is stop stealing taxpayers money so we can stop depending on donors because they too have their own problems back home.

  3. Mpinganjira is becoming senile if he cannot fathom the reasons why. Who can in their right minds give pocket money to their kids when they know it will be squandered on booze let alone donors when they know their aid will end up in people’s private pockets. Even from the grapevine Joyce Banda is up to her neck in his shit of corruption. Do not talk like donors have no eyes or ears and they also live here and they observe.

  4. Malawians this is a very very serious and sad time for the people of Malawi. I am panicking for the country, I am panicking for the people of Malawi. The gravity of what has just happened to Malawi must be appreciated by all Malawians, politics aside. Let me explain!
    By the IMF withdrawing funding for Malawi, the economy has been nuked! The Kwacha has been Nuked. People of Malawi you have been nuked! All of you. Technically the ability for the country to trade has been flattened. By nuke I mean a “nuclear bomb” has been dropped on the country, figuratively. It is a matter of time before you all feel the effects. Some commentators are rejoicing and gyrating for political reasons but they forget that everyone has been nuked each of one of you have regardless of who caused the criminal act.
    Urgent action is required to reverse this IMF decision!! Finance minister must tell the nation the expected date when IMF funding will resume and it cannot be next year!! and what are the terms for resumption. The IMF has said the govt must take drastic action, what does that mean precisely? I can see a conflict here because of lack of separation of powers between the Executive branch and an independent body in Malawi. The ruling party in Malawi becomes the judge, jury and executioner. That must change in the constitution. Drastic action might as well be that this govt must disband for AID to resume. What does drastic action mean? Can the head of IMF mission be summoned to address the Malawi parliament (with opposition parties) to reveal what is the minimum requirement to resume IMF funding as soon as possible?
    My advice to the Malawi govt, is do not fight with the IMF, or indeed any donor. There is no need to fight. The govt must limit the damage to the national image. From a financial point of view Malawi has been nuked people. Do not cheer in the streets, you have all been “bombed” regardless of who caused it. There is no any other way I can put it. The proverbial “nuclear” option has been dropped by the donors. We can debate the morality of that but that is for another day.
    The urgent concern should be for the interest of the nation not some party politics and not personal gains. I suggest the following action points:
    1. Finance minister to confirm when the IMF funding embargo will end and aid resume or under what circumstances.
    2. IMF to confirm; preferable to the Malawi Parliament to publicly outline the terms of Aid resumption.
    3. Aid must resume ASAP at any cost and if that means the govt of Malawi must step down please be selfless! If there are other actions to be taken then please follow through those measures as soon as possible before embargo starts to bite poor people. The country must come first!!
    Unfortunately, not many people realise what has just happened. Someone said to me that “humanitarian AID is still flowing” so it is OK. That is not OK. IMF funding represents the ability of Malawi to transact, through Reserve Bank, within the global financial system. Without that the kwacha devaluation will accelerate to Zim levels, inflation will fly to 500% and beyond taking prices of goods in Malawi with it. Malawi will not be able to import say medicine to save children lives. That is why I have been questioning as to why AID is regularly being used as a punitive weapon for govt malfunction? For those of us who understand the global financial system exchange mechanism, Malawi has been nuked. Drastic action must be implemented!

  5. The fact of the matter is that the donors let alone any tax payer ( if you had the chance) can not deposit money where the systems are porous. As such an Action Plan has been set up for cleaning up the loop holes in the accountability and transparency that underlays the Cashgate Looting so that it is sealed and other governance issues reversed. Further fiscal management by the Reserve Bank of Malawi should be tightened and not lip serviced. Action Plans have set dates and government should work within this time frame and stop making silly excuses and work! Please do not deliberately make other systems fall apart and punish innocent Malawians!!!

  6. Use the money for it’s intended purpose then there would be no problem? The answer is in your hands – and your back pockets?

  7. ma guy vuto la a malawi sitimachedwa kuyiwala zoona taiwala vuto la mafuta, forex chifukwa chonyoza ma donors omwewa nde inu mwayambaso tiona mmene zithere

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