Lazarus Chakwera scoffs at Goodall Gondwe’s Statement

Tom Sangala February 17, 2018

502 1 minute read

Leader of Opposition, Lazarus Chakwera, has said the changes to the 2017/2018 budget

Minister of Finance, Economic Planning and Development, Goodall Gondwe, announced in Parliament yesterday do not respond to the needs of Malawians.

He said the statement, has left out other issues, one of which is how government can deal with theft and corruption.

Reacting to the statement just after Gondwe had delivered it, Chakwera said from the look of things, the statement is just trying to highlight what the executive arm of government wants, not all Malawians.

“What they have prioritised is not for Malawians but it is for them as leaders, as the executive. That much I must tell you. We still need to deal decisively with issues of theft, with issues of corruption. These assumptions that are so good on paper will still be good on paper not in reality,” Chakwera said.

Chakwera said the government is obsessed with painting a rosy picture, without critically thinking about reality on the ground.

“They are painting a rosy picture so that everyone believes it. The IMF [International Monetary Fund] has given us figures. “What are our figures? They say the World Bank will give us K60 billion [but] they are still discussing. Why give that as a fact? What if they don’t [give us the money]?” Chakwera said.

He also faulted the K45 billion bailout of Admarc, saying government needed to come out clear on why it made the decision.

“Was bailing out of Admarc done in good faith? It is the person out there in the village that will still suffer despite the fact that there are these high-level exchanges. Malawians continue to suffer because of these types of decisions that do not necessarily think about the common person,” Chakwera said.

Chairperson of the Budget and Finance Committee of Parliament Rhino Chiphiko, said he sees no improvement in the next six months.

“The adjustments in the budget are just mediocre because there is nothing that has happened…there is still no hope that the Malawi Revenue Authority (MRA) will manage to collect revenue according to their targets because of the way the economy is,” Chiphiko said.

He also said it is sad that the country continues relying on donors.

“Every time we rely on donors making pledges, including the likes of IMF and World Bank, in the end when they do not actually give the money, the economy comes out of balance. Past experience has shown that these donors have not honoured their pledges,” he said.

Leader of People’s Party (PP) in the House, Ralph Mhone said the budget cuts should be done in such a way that other areas he described as luxurious are affected.

“The cuts should also affect the luxury part of the budget. They should also affect State Residences and unplanned road projects.

These cuts should not affect the poor,” Mhone said. He also said resources in the budget should not be used to bail out what he described as failed parastatals.