receipts
The government is losing out on revenue from over 200 houses located in Viphya Plantations, which are in Mzimba and Nkhata Bay districts, with reports that some of the tenants pay rentals but are not issued with the government’s general receipts (GR), The Daily Times understands.
This is happening when Malawi’s budget deficit for the 2023-24 fiscal year is pegged at K1.32 trillion, or 8.7 percent of gross domestic product, a gap that could be filled by such rentals.
We visited the plantations in the company of Natural Resources and Climate Change Minister Michael Usi, who paid a surprise visit to some houses at Chikangawa Trading Centre.
It transpired that, for the past three years, the houses have been occupied by people, including locals who stay around the forest reserve, who pay rentals but the funds are allegedly not remitted to the government.
These are part of close to 400 houses which are occupied by civil servants of different grades who work under the Department of Forestry.
- Advertisement -
In some houses people have been staying for free while others pay as low as K700 per month to the Department of Forestry.
It is reported that no government receipts are issued upon payment of the money, which has raised questions as to who collects the money.
Usi interacted with tenants in three houses and those in Chikangawa Guest Lodge before demanding reports from the ministry in due course.
“I have talked to some of the tenants, who say they do not pay anything for their stay in the houses. Some pay rentals as little as K200.00 per month but to my surprise they are not given government receipts,” Usi said.
- Advertisement -
- Advertisement -
He then revealed that he got reports that some investors applied to the ministry to allow them to renovate the houses and take over management of the houses but were denied.
He said he believes the ministry’s decision might be because some people are benefitting from what is collected from the houses.
Raiply Malawi Public Relations Officer Dalitso Chimwala confirmed writing the ministry to allow them to manage the structures at three stations of Champhoyo, Kalungulu and Chikangawa, which are under their concession.
“We left the matter in the hands of the ministry to decide; otherwise, these stations are under our concession,” Chimwala said.
Viphya Plantations has 53,000 hectares, out of which 20 000 hectares were allocated to Raiply Malawi. The other hectares are managed by other concessioners.
