Tempers flared in Parliament Tuesday after Blantyre City Southwest lawmaker Sameer Suleman charged that Finance Minister Simplex Chithyola Banda was not fit to hold the portfolio.
The minister had just delivered his statement on measures that government has put in place to cushion Malawians from the impacts of the 44 percent devaluation of the Kwacha which Reserve Bank of Malawi (RBM) announced on Wednesday last week.
But standing on a Point of Order, Suleman claimed that it was wrong for Chithyola Banda to be finance minister apparently because his organisation, Chinansi Foundation, had abused Global Fund money.
Suleman argued that at a time Malawi is trying to revive the economy and regain donor confidence, it was important to look into the minister’s conduct when he was head of the foundation.
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He claimed the organisation abused funds meant to benefit adolescent girls and young women.
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“When you are caught stealing and you give back what you stole, it means you are a thief. How safe is our money in the hands of such a minister?” Suleman queried.
But his Point of Order caused a stir in the House, with its leader Richard Chimwendo Banda rising to condemn what the Member of Parliament (MPs) had said.
Chimwendo Banda accused Suleman of bringing into Parliament an issue which he apparently had no evidence on.
“He has a tendency of destroying others’ characters. He rose sometime back to accuse former minister of Agriculture [Lobin Lowe] but failed to produce evidence.
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“Today, he is standing again trying to tarnish the image of a credible and elected member… Let us not use emotions to destroy each other,” he said.
He went on to demand that Suleman bring evidence on his allegations, something First Deputy Speaker Madalitso Kazombo agreed with.
Quoting Standing Order 102, Kazombo said an MP is responsible for providing accurate facts on allegations they make.
He then ordered Suleman to bring the evidence in the afternoon of today.
Responding to Suleman’s allegations, Chithyola Banda insisted that no competent court found him guilty and that, therefore, he is clean.
The minister accused Suleman of “bringing politics” in the devaluation issue.
“It is politically unsound that someone would attack me like this… I do not subscribe to such politicking. I will focus on the time God has given me to serve as Minister of Finance and I will do that without attacking others,” Chithyola Banda said.
In its investigation report dated June 16 2021, Global Fund alleged that Chinansi Foundation, a Balaka-based charity, abused $80,496 (K136 million at the current exchange rate).
The organisation later refunded the money.
Meanwhile, Leader of the Opposition in Parliament Kondwani Nankhumwa has asked Chithyola Banda to “quickly” stop President Lazarus Chakwera’s international trips “to save the economy”.
Nankhumwa was reacting to the minister’s statement on the 44 percent devaluation of the Kwacha.
In the statement, Chithyola Banda said government will reach 184,920 households affected by Cyclone Freddy with K150,000 for their consumption needs.
He also told the House that government will re-introduce the Price Shock Urban Emergency Cash Transfer Programme which will target 105,000 households in Zomba, Blantyre, Mzuzu and Lilongwe city councils where beneficiaries will receive once-off transfer of K150,000 covering a three-month period.
“With immediate effect, the Fiscal Police, with support from the Financial Intelligence Authority and the National Intelligence Service… will intensify crackdown on all illegal foreign exchange trade in all markets across the country and in border areas,” the minister said.
But Nankhumwa said the statement was lacking in “many aspects”.
“He left out a very important issue in his statement. This is the issue about presidential international trips which are draining forex reserves. In just three years, he has taken over 40 international trips and with large entourage,” he said.
He also doubted if government would implement the announced measures, accusing the current administration of only offering lip service.
But Chithyola Banda insisted that he would present details of how the measures will be implemented when he will be presenting the mid-year budget review statement on Friday.
He also backed Chakwera’s trips, saying they are important.
“Some of these trips are donor funded. The President also has to travel because these trips are benefiting the nation,” he said.
In its statement announcing the devaluation which is pegging the United States dollar at K1,700 from K1,180.29, RBM said its assessment had shown that supply-demand imbalances remained in the market despite adjustments of the rate through the auction system.
