Britain urges adherence to Cashgate action plan
Britain says Malawi Government’s implementation of its own action plan on addressing Cashgate is a key factor towards regaining the confidence of its development partners.
British High Commissioner Michael Nevin, in a written response to a questionnaire last week, said his government welcomed Malawi’s work to develop plans to strengthen the financial management system.
He said Britain expected this to be a key and urgent priority.
Nevin said: “There is regular, constructive engagement on these plans with government. It will be crucial for government to implement their plans and sustain their effectiveness, thereby starting to rebuild confidence in the financial management system, for Malawians and development partners alike.”
But Nevin could not respond to a specific question on whether donor aid resumption would be dependent on successful implementation of the action plan.
However, he said it was important to note that substantial United Kingdom (UK) development assistance to Malawi continues, delivered outside of government financial systems, but working with the Malawi Government in support of their priorities.
Malawi’s traditional donors froze budgetary support in October 2013 following revelations of the plunder of public resource at Capital Hill in Lilongwe during Joyce Banda’s regime which developed the action plan on how to address Cashgate.
President Peter Mutharika and his Democratic Progressive Party (DPP) later adopted the plan, reviewed it and reduced the working points, according to Ministry of Finance spokesperson Nations Msowoya.
On the other hand, Germany has said its support to Malawi has never been dependent on a singular event, but on long-term analysis and vision.
Germany Ambassador Peter Woeste, also responding to a questionnaire, said his government appreciates the close contact Minister of Finance, Economic Planning and Development Goodall Gondwe maintains with all donors.
Woeste said: “We are aware of structural problems within the ministries and appreciate the strong leadership shown by [Mutharika] and the Vice-President [Saulos Chilima], regarding the Public Sector Reform.
“We are looking forward to the presentation of the respective action plan next week and its swift implementation… We are committed to discussing this plan and to supporting the government in its implementation as soon as the plan will have been shared with us. What will finally count is action.”
On aid to Malawi, Woeste said support to Malawi is not suspended and on the contrary, the German government in November 2014 committed 58.3 million Euros (at that time approximately K34 billion) for the support of the Malawian people in the period up to 2015.
The ambassador was talking of aid that is not going directly to government to avoid abuse, but through other channels.
Principal secretary for the Public Service Reforms Unit, Blessings Chilabade, said the Ministry of Finance tops the list of the pioneer ministries targeted for reforms.
Chilabade, in a response to a questionnaire, said the first and immediate priority for government is to improve financial controls and accountability in the public financial management (PFM) environment through establishing a functional internal audit system and ensuring that funding to ministries, departments and agencies as well as payment systems are working efficiently.
He said reforms have also brought meritorious appointments where the President has relinquished his powers on appointment of senior officers from Grade E and above.
Asked if the public service is ready to embrace the reforms, Chilabade said almost all stakeholders consulted, including the public servants themselves, agreed that there is need to change the way business is conducted.
Mutharika is scheduled to launch the Public Sector Reforms in Lilongwe this Wednesday.
