Govt offsets MEC’s K1 billion debt
Treasury has cleared outstanding debts worth about K1 billion which Malawi Electoral Commission (MEC) owed suppliers of goods and services dating back to 2010.
Government’s decision to offset the unpaid amounts follows an appeal the electoral body made during a high-level meeting held in Lilongwe towards the end of last year.
Treasury spokesperson Nations Msowoya, in an interview yesterday, confirmed repaying most of MEC creditors, particularly those who were owed huge arrears in excess of K10 million.
He said: “Most of MEC debts were indeed settled through promissory notes. The total amount [of debts] was close to K1 billion.”
However, Msowoya indicated that amounts below K10 million are yet to be settled as they were yet to be verified.
He said: “We still have not paid the smaller amounts, but will do that shortly.”
During the high level meeting, which was attended by all ex-MEC commissioners, heads of government departments, some diplomats and Minister of Finance, Economic Planning and Development Goodall Gondwe, it was revealed that MEC’s debt situation stood at K758 million.
But suspended MEC chief elections officer Willie Kalonga, in an interview with The Nation in January this year, indicated the amount was bigger than the reported K758 million.
From the debts, about K400 million was reportedly used to buy ballot boxes while K200 million went towards the purchase of 11 Toyota Landcruiser Prado vehicles meant for the previous MEC commissioners.
In an interview yesterday, MEC acting director of media and public relations Richard Mveriwa said the commission was grateful that finally government was treating the debt problem with utmost attention and “we hope shortly it will be history”.
He explained that primarily the debt accrued during the May 20 2014 Tripartite Elections where other things were procured without being budgeted for while part of it went to MEC’s operational costs.
“For instance, the commissioners’ vehicles were not budgeted for. And when we bought them we were hoping that government would compensate us, but that did not happen,” said Mveriwa, adding that the debt dates back to 2010.
MEC had been haunted by the debts for some time to the extent that in July 2015 a creditor sealed its offices for unpaid dues amounting to K23 million.
As if that was not enough, in March this year sheriffs impounded the commission’s six vehicles and several office equipment after it failed to settle K90 million debt to three service providers—Universal Trading Company, Platinum Solutions and Transworld Radio—who dragged it to court.
Besides the debts, in recent months, MEC has also been engulfed by issues of mismanagement of funds after an audit exercise revealed that about K15 million could not be accounted for.
The development resulted in government sending MEC’s senior managers and other members of staff on forced leave on August 24 2016 to pave the way for a review of the audit which the commission is currently disputing.
