Government stops MPs gratuity
The cash strapped Joyce Banda administration has instructed commercial banks and the Reserve Bank of Malawi (RBM) not to honour cheques amounting to K216 535 973.20, meant to be gratuity for members of the dissolved Parliament.
But the former members of Parliament (MPs) have not taken the matter lying down and have sought the intervention of the Industrial Relations Court (IRC), accusing Deputy Minister of Finance Cornelius Mwalwanda who issued the stop order of breaching labour rules.
On the other hand, opposition MPs suspect government wants to suffocate their campaign because most of the People’s Party (PP) MPs lost in primaries.
Affidavits sworn by two members of the Business Committee of the former Parliament, Clement Chiwaya (UDF) and Makala Ngozo (MCP), allege that Mwalwanda claims that government wants to use the money to tighten security.
“That when I learnt that the said cheques have been issued out, I and the several applicants went to our banks to access the gratuity where we were told by the bank officers that indeed the cheques have been issued, but they were waiting for the clearance from the Reserve Bank Governor.
“That when it was noted that it was taking unduly too long to have the said cheques cleared, I called the Speaker of National Assembly Hon. Henry Chimunthu Banda to find out what was happening.
“That the said Henry Chimunthu Banda confirmed that indeed the cheques had been issued out only that there was a contrary instruction by the Deputy Minister of Finance Hon. Cornelius Mwalwanda to the effect that the gratuities should not be released as government needed the money for other purposes like improving security,” reads the affidavits sworn on behalf of all former MPs.
Ministry of Finance spokesperson Nations Msowoya referred The Nation to Information Minister Brown Mpinganjira who could not be reached as we went to press yesterday.
The MPs, midway their term, had agreed that gratuity will be paid in two tranches half of which was already honoured.
“It was agreed that the last tranche will be received on 20th of March 2014 on the dissolution of Parliament,” reads the affidavit.
According to affidavit filed by lawyer Wapona Kita, Mwalwanda’s directive “is illegal as the payment of gratuity is an entitlement which I have earned and the same has already been provided for in the budget and cannot be deferred for the reason that my money is needed to improve security elsewhere.”
The MPs feel that by distributing the cheques to various banks, government had created legitimate expectation “that we will be paid our gratuities accordingly and some members had travelled long distances to access their gratuities….”
“From that above, it is clear that money is available for the payment of our gratuities only that someone is abusing his powers for ulterior motives in denying me and the rest of others to access the same especially at this crucial period of campaign which most of the applicants are involved in,” said Chiwaya.
In a separate interview, Chiwaya said it was clear that someone was trying to deny opposition funds for campaign.
“We realised that they don’t have many of their members involved because most of them lost primaries and they now have rookies campaigning but that’s not how things should be in a democracy,” he said.
The Banda government is in financial quandary following a donor aid freeze in the wake of corruption and abuse of public resources in under two years of the PP’s rule.
The International Monetary Fund (IMF) and the Common Approach to Budget Support (Cabs) group of donors have indicated a possibility of aid resumption after May 20 Tripartite Elections.
Meanwhile, IRC has ordered the Accountant General, Secretary to the Treasury to ensure that the cheques are cleared, saying disobedience of the order will be in contempt of the court.
