MPs get loans, then bolt

• Owe Parliament millions in 1999-2004 term
• Some run from our officers—CoP Gondwe
• Attorney General asked to intervene

While government has allowed members of Parliament (MPs) to more than triple their loan facilities, we have established that the credit history of most legislators in their taxpayer-funded and guaranteed loan scheme is nothing to write home about.

The Nation has established that 64 MPs—both current and past—owe the National Assembly K17 360 654.20 in outstanding special advances obtained in the 1999-2004 parliamentary term.

In fact, the National Assembly has failed to recover the money from legislators, forcing it to write the Attorney General (AG) to intervene.

“The National Assembly granted special advances to honourable members of Parliament for the 1999-2004 parliamentary term of office in accordance with their conditions of service.

“The advances were partly recovered from the members’ monthly salary and terminal benefits, leaving some outstanding balances for some members. We write to seek your intervention to recover the outstanding special advances,” said an October 31 2014 letter from the office of the acting Clerk of Parliament (CoP) to the AG.

The revelation comes at a time when the current crop of MPs has successfully pushed for a personal loan package amounting to K24 million each that they obtain from commercial banks—more than three times the 2009-2014 group was entitled to.

Of the total loan package, K12 million (50 percent) is treated as honoraria and, therefore, paid by Treasury while the other K12 million attracts interest.

But little of that interest is borne by the MP, as the taxpayer shoulders up to 72 percent of the cost of borrowing.

The 72 percent interest subsidy translates to an additional freebie of K18 million per legislator over the 54 months repayment period ending in 2019, bringing the total handout to K30 million when the K12 million honoraria part of the ‘loan’ deal is added.

Governance commentators such as Chris Chisoni of the Catholic Commission for Justice and Peace (CCJP) have long complained that giving MPs such hefty loan packages is wasteful spending, especially because not all the loans are recovered.

The loan default revelations now appear to vindicate such critics.

Notable former MPs who still owe Parliament include Jaffalie Mussa who served as MP for Machinga East until 2009. He is yet to pay K983 331.21.

Former Blantyre North MP Paul Maulidi has  K200 000 outstanding while ex-Lilongwe City South West MP Iqbal Omar, who still runs businesses in the city, has not paid back K241 375.18.

Former MP for Blantyre Rural East between 2001 and 2014, Henry Phoya—who served in various portfolios—still owes Parliament K1 111 255.72 while former Mzimba West MP Loveness Gondwe is yet to pay K200 000.

There are also sitting MPs who owe Parliament various sums, these include Lilongwe Msozi South’s Vitus Dzoole Mwale (K176 062.52), Karonga Nyungwe MP Frank Mwenefumbo (K572 715.83), Lilongwe Mpenu MP Watson Makala Ngozo (K572 011.12) and Lilongwe Mapuyu South MP Joseph Njobvuyalema (K62 825.81).

Mwanza Central MP and former Speaker Davis Katsonga owed Parliament K180 000 until news of the audit query reached him by virtue of his membership in the Public Accounts Committee (PAC) of Parliament. He then paid back the money a few days before the inquiry came before the committee.

In an interview, Katsonga said he received no reminder from the Secretariat that he had outstanding debt with Parliament until he saw his name on the list.

Rumphi East MP and vice-chairperson of the committee, Kamlepo Kalua, offered to pay K149 109.31 that his friend and former presidential candidate Gwanda Chakuamba owes Parliament.

Other MPs on the list we were able to reach said during separate interviews that they had no idea they owed the National Assembly.

For example, MCP’s Makala Ngozo said he did not know that he owed Parliament K572 000.

“The Clerk of Parliament has not informed me of any outstanding balances. He would be the best person to know, but as it is I am hearing that from you,” he said.

A surprised Mwenefumbo wondered why Parliament had not deducted the money from two terminal benefits he has received so far.

He was an MP between 2004 and 2009 and has returned to Parliament after a five -year break.

Said Mwenefumbo: “I have never been written by Parliament that I have outstanding balances. Now I am an MP again, they just have to deduct the money from my salary, but they have not done so.”

Phoya expressed similar sentiments, saying he was not aware that he had a K1.1 million outstanding loan with Parliament, but said he would be happy to pay off the amount once it has been confirmed.

“I am not aware of that and Parliament has not communicated the same to me. I am surprised as to why that should be the position since Parliament had every right to deduct any outstanding amount I had with the National Assembly from my gratuity,” Phoya said.

In 2004, Parliament managed to recover about K11 million from the MPs’ gratuities, but a balance of K17.3 million remains to be recovered to date.

National Assembly claims it has had little success to recover the money; hence, the decision to write the Attorney General for help.

AG Kalekeni Kaphale confirmed receiving the letter from the Clerk of Parliament and responded three days later on what possible action his office could take against the former MPs. He did not elaborate as advice to client is confidential.

Acting CoP Roosevelt Gondwe told PAC recently that it would be difficult to recover the money because some of the MPs have passed away while others were financially incapacitated to pay back.

He said if all options for recovering the money fail, he will seek authority from Treasury to write off the debt considering that it may be difficult to recover the advances as some of the former legislators involved may have died while others were financially incapacitated.

Gondwe recalled an earlier attempt by Parliament staff to recover the money through teams sent nationwide, but they failed.

“The former MPs would be tipped off that we were coming and would disappear, leaving word with their family members that they would be away for some time. Our experience is that when members lose elections, they are not as friendly,” Gondwe said.

He added that Parliament would give notice to the MPs this time around—the retired ones and those in the House—of their debt.

“This is partly our fault, notifications to these MPs have not gone out in recent times,” Gondwe said.

He attributed the failure by Parliament to recover the money to system lapses that allowed MPs to walk into the accounts office and ask for advances.

Meanwhile, Auditor General Stephenson Kamphasa has quashed suggestions that the National Assembly should engage a debt collector to recover the outstanding loans and advances.

National Audit Office corporate communications officer Thomas Chafunya said the issue of outstanding loans by some MPs was brought out through the Auditor General’s report on government accounts several times.

When informed that Parliament was considering writing off the debt, Chafunya responded: “There should be proper documentation that these MPs are financially unstable because these are public funds. What about records of property that could be recovered to offset the debt?

“MPs are law makers and as such must lead by example. The new generation must understand that when one borrows, especially public funds, then they must be obliged to pay, even if it is one tambala.”n