Civil servants holiday irks private sector

The private sector has expressed displeasure with the three-week leave of absence granted to civil servants, arguing it will be costly to businesses and the economy at large.

Speaking in separate interviews yesterday, Indigenous Businesses Association of Malawi (Ibam) president Mike Mlombwa and Economic Empowerment Action Group (EEAG) president Lewis Chiwalo argued that the loss outstrips the benefit of the leave.

Said Chiwalo: “Three weeks of leave is just too long for the economy. The leave will delay government payments for both large and small businesses and affect cash flows which will compromise businesses’ ability to pay. The losses are also going to be more if we consider the depreciation of the kwacha which is losing value on a daily basis.”

Mlombwa agreed with Chiwalo, urging government to look at the impact of such decisions on the economy at large by considering losses and gains for both the public and private sector.

“The private sector is the engine for economic growth and if businesses are denied payments for three weeks, the losses are going to be colossal. This defeats the whole purpose of the holiday which is to save,” said Mlombwa.

According to a statement released by the Office of the President and Cabinet on Monday, civil servants shall report for duties on January 6 2014 after going on leave on Monday December 16.

The statement, which was signed by Chief Secretary to Government Hawa Ndilowe, said President Joyce Banda, in her capacity as minister responsible for the civil service, is pleased to grant the leave of absence.

The statement, however, says the leave does not apply to civil servants who are involved in emergency and essential services including hospitals, immigration, customs and police.

Last year, civil servants were also granted a similar absence from duty that ran for two weeks.