By Pemphero Malimba:
Minister of Finance and Economic Affairs Simplex Chithyola Banda has warned parastatals against spending beyond ceilings.
Chithyola Banda said this Thursday when government and parastatal officials were signing shareholders letters of expectations for the 2024-25 financial year.
He said the parastatals should move beyond relying on bailouts from the Treasury.
“Expenditure control was one of the topical issues that my predecessor highlighted last year during a similar occasion.
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“While some parastatals have complied fully with the government call for parastatals to eliminate wastage through expenditure control, others continue to spend extravagantly in disregard of the government directive,” he said.
Chithyola Banda said the non-compliant State Owned Enterprises will be subject to sanctions to ensure service delivery.
“It is the intention of the government to see all parastatals complying fully to the expenditure control directive. This is meant to ensure that available funds are allocated to national economic priorities.
“Failure to comply will definitely imply lack of seriousness by such non-complying SOEs or parastatals and such non-compliance will attract the appropriate sanctions in accordance with the existing laws and regulations as well as the applicable conditions of service,” he said.
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Lilongwe Water Board Chairperson Inkosi ya Makhosi M’mbelwa V said the board remains committed to complying with the requirements.
Among others, board members and executives from parastatals attended the event.
This comes a few days after Parliament passed the K5.9 trillion national budget for the 2024-25 financial year.
