MPs’ Perks jump 82%

Angry civil servants threaten sit-in

Activists say govt insensitive

Daily allowances for members of Parliament have, with effect from July 1 2013, jumped by an average of 82 percent, Weekend Nation can reveal.

According to National Assembly well-placed sources, MPs’ subsistence allowance has jumped from K30 000 (US$87) to K40 000 (US$115) per day, representing a 33 percent hike whereas sitting allowance has doubled from K5 000 (US$14) to K10 000 (US$28).

The Speaker, whose subsistence allowance was K35 000 (US$101) now carts home K60 000 (US$173), a 71 percent jump. Subsistence allowances for deputy Speakers and Leader of Opposition are at K50 000 from K35 000, which is 42 percent higher than they used to pocket, sources say.

Speaker of Parliament Henry Chimunthu Banda, in a written response on Thursday, confirmed that MPs’ allowances have jumped, but said he could not validate the figures Weekend Nation had presented to him for justification.

He defended the increments, saying it was not an issue since the cost of living has risen.

“While it would be difficult for me to confirm the authenticity of the figures as quoted, what I can confirm though is the principle of an upward adjustment of subsistence allowances.

“[The reasons are] to match with the upward adjustment of hotel rates effected last year. The figures took into account prevailing room rates at such hotels as [Sunbird] Mzuzu, Capital, Kuchawe, Mount Soche,” said Chimunthu Banda.

He added: “While the decision [to increase allowances] was arrived at last year in 2012 around August/September when the Executive branch did the same and for the same reasons, Parliament pended the implementation of the decision until the 2013/2014 Financial Year.”

In citing the “Executive branch”, the Speaker was referring to the increase last August of Cabinet minister’s subsistence allowance by 80 percent from K25 000 to K45 000.

At the time, activists condemned the move and accused government of not suffering with the rest of Malawians. The critics accused government of applying selective austerity measures that spared top political leaders.

In reaction to the hike of perks for MPs, critics say the Legislature is insensitive to the suffering of the people they represent as the increase comes at a time social sector budgets such as health’s has fallen as a ratio of total expenditure, yet shortages of drugs and medical equipment persist.

Catholic Commission for Justice and Peace (CCJP) and Consumers Association of Malawi (Cama) said yesterday that while they acknowledge that the cost of living has risen, the timing smacks of appeasement, political machinations and discrimination.

CCJP national coordinator Chris Chisoni said:  “The timing to this cause is very insensitive and it continues to paint the picture of a government that does not take majority feelings and concerns into consideration. It is also a contradiction to the continued calls by government of tightening belts for economic recovery.

“Most of the reforms are targeting and impacting on the majority poor; those that already find it hard to survive while those that can afford are still adding more to their plates. It is a sad trend. The timing is wrong, it is implying an appeasement policy of government to Parliament and parliamentarians, it does not consider the suffering of the majority, it smacks of hypocrisy and greed.”

Cama executive director John Kapito said by coming up with cushioning measures for MPs, government was simply telling Malawians that legislators were the only group to be protected from the harsh economic realities and that the rest are on their own.

“Our argument is that MPs and those in senior positions implementing the austerity measures should be the last to demand any adjustments on their perks, especially at a time they are appealing to the rest of the public to be patient and bear the brunt of the economic hardship,” said Kapito.

The Legislature’s move, he said, means that pressure should mount for the adjustment of salaries, allowances and benefits for every Malawian irrespective of whether they are in Parliament or mere consumers to also cushion them from the escalating cost of living.

Said Kapito: “What is disappointing is that these increases are being done at a time when our hospitals and other social services are in dire need of resources and when most Malawians cannot even afford a bag of the high priced maize.

“One would have expected both the Legislature and the Executive to lead by example. The moral and ethical paradox of this thinking is that let us all share the pain of the current economic reforms and no one should be spared so that if one day the economy recovers, we should be on the same page.”

Meanwhile, civil servants, angry at the MPs’ better perks, have threatened to stage another sit-in similar to the one that lasted for two weeks in February to force government to implement their demand for increment in allowances and leave grants.

Civil Servants Trade Union president Eliah Kamphinda Banda wondered why government had not implemented public workers’ allowances as agreed.

Kamphinda Banda said it was unfortunate that government was being selective in effecting the increments, saying civil servants’ allowances were also supposed to be adjusted from July 1 2013.

“If government fails to meet our demands, a sit-in is eminent. It is a must for government to review all allowances and leave grants as agreed upon during the negotiations and as presented in the February petition,” he said.

The unionist argued the demands by civil servants cannot jeopardise the economic recovery process because, according to his reasoning, it cannot affect the budget.

The civil servants, who in February got a five to 61 percent salary increment, also demanded a 71 percent increase in the recently passed national budget which only catered for a nine percent raise.

The Executive arm of government is also facing demands from the Judiciary to review judges’ perks as stipulated in their proposed Conditions of Service for Judicial Officers.

The judges’ demand include fuel allowance hike by an average of 120 percent, a 1 500 percent increase in settlement allowance and a furniture allowance increase of 60 percent.

The new proposals also want the Chief Justice to be entitled to three vehicles for official and private use “provided that one of the three vehicles shall be a Mercedes Benz” and to have a retirement package almost similar to a retired State vice-president’s.

The Public Appointments and Declaration of Assets Committee, which holds the constitutional mandate to approve Judiciary’s perks, is considering the proposal.