MCCCI wants govt to tackle corruption

Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has called on government to implement policies that would help to address the worsening corruption levels.
Speaking during its 123rd Annual General Meeting (AGM) in Blantyre on Friday, MCCCI president Karl Chokotho said it is sad to note that despite registering cases of corruption since 2013, the private sector has not seen any meaningful implementation of government policies to curb the vice.

“When corruption is on the rise and government behaves as if nothing is wrong, companies lose confidence in government policies.
“As a result, businesses take a back seat and do not feel that it is worthwhile continuing talking to government about the need to change policies because government is not listening,” he said.
A recent Transparency International (TI) Corruption Perception Index (CPI) showed that Malawi continues to perform poorly in fighting corruption and slipped eight steps from 112 in 2012 to 120 out of 176 economies in 2016.

Analysts say the worsening rank in CPI has potential to keep away investors and development partners who use the CPI as a basis for estimating the levels of risks for business and investments.
Chokotho said corruption is the problem the country has had since 2013 when Cashgate came to light.

He said going forward and with increased levels of corruption, whether perceived or real, the international donor community is likely to continue holding on to their budget support.
Chokotho decried that MCCCI membership has not been growing as fast as they would have wished due to governance and economic issues.

He said although membership slightly picked up in 2016 to 263 members from 260, the numbers were still lower than the 2014 membership at 285.
“‘The unpaid value added tax [VAT] refunds and the other arrears that have been settled through zero coupon promissory notes have also changed the private sector’s perception of government seriousness about promoting private sector-led development.

“Again, membership subscription is paid in cash and if the private sector has not been paid by the main buyer, which is government, it is very careful on how it uses its cash. In the process, we have lost out membership,” said Chokotho.
MCCCI chief executive officer Chancellor Kaferapanjira recently said businesses are owed K16 billion in unpaid VAT refunds which dates back to three years.

Presenting his 2016/17 Mid-Year Budget Review in Parliament in February, Minister of Finance, Economic Planning and Development Goodall Gondwe said that the money it owes the private sector in unpaid arrears will be settled over the next three years.
At the AGM, it was learnt that MCCCI registered an operating income of K387 million and a surplus of K10 million in 2016.
This is compared to an operating income of K356 million and a surplus of K29 million in 2015.