By Mercy Matonga:
The Parliamentary Committee on Commissions, Statutory Corporations and State Enterprises has expressed concern over National Economic Empowerment Fund (Neef)’s recent work trajectory.
It says the fund has “significantly” deviated from its core mandate of empowering ordinary and underserved Malawians.
Presenting a report on the committee’s engagement with Neef officials in Parliament yesterday, committee chairperson Sylvester Ayuba said the findings revealed a worrying trend in the way the fund was being administered.
James said the law establishing Neef does not support the inclusion of political officeholders among its beneficiaries.
- Advertisement -
“The Act underscores that political officeholders should not benefit from the fund,” he said.
The committee further noted that loans were issued as incentives for political support, describing the development as unacceptable and an abuse of public resources.
The committee also raised concern that loans disbursed on political grounds had resulted in high default rates, saying this had undermined Neef’s portfolio quality and financial sustainability, effectively transferring the cost of political expediency to taxpayers.
The report also observed a general absence of effective inventory management systems across warehouses that committee members visited.
- Advertisement -
- Advertisement -
It observed that assets were not systematically catalogued and that, in many instances, there was no clear linkage between physical items on the ground and inventory records.
“The committee noted with concern that several assets, including solar-powered water pumps, solar panels, panel stands and irrigation equipment, were stored outdoors and exposed directly to rain, sunlight and dust,” the committee’s report reads.
James further said the committee was calling for stricter oversight and adherence to the fund’s mandate to ensure that resources benefit the intended groups.
“We call for an independent and professionally qualified team to conduct a full physical verification, condition assessment and revaluation of all Neef assets, particularly those earmarked for disposal, to ensure that decisions are evidence-based and protect value for money,” the report further reads.
The committee also urged the government to expedite the enactment of legislation to formally establish Neef/ MEDF as a statutory institution, clearly defining its mandate, governance structures and safeguards against political interference.
Commenting on the issue in Parliament, Mwanza Central Parliamentarian Felix Njawala said it was unfortunate that the fund was being abused by politicians while the intended beneficiaries continued to suffer.
“Youths, women and other underprivileged groups are the intended targets of this fund but many have failed to access services, which is very sad,” Njawala said.
On his part, Centre for Social Accountability and Transparency Executive Director Willy Kambwandira said the findings were troubling but not surprising.
“It is evident that Neef has been reduced to a tool for political patronage and vote-buying rather than a development instrument. Loans were issued as incentives for political support, not empowerment; this amounts to institutionalised corruption,” he said.
