Malawi performs very well on Fitch ratings

MUMBAI (Thomson Financial) - Fitch Ratings affirmed The Republic of
Malawi's ratings, saying the country is entering its third consecutive
year of strong growth and continues to reduce domestic debt and reform
public finances.

The agency noted that the economy grew strongly in 2006 and 2007, as
maize production benefited from benign weather and the government's
large-scale fertiliser subsidy.

'The economy is expected to grow
by 7 pct in 2008. Confidence is improving outside the agricultural
sector and growth is set to outperform its recent average,' it added.

The African nation's long-term foreign and local currency issuer
default ratings (IDR) were affirmed at 'B-' with a stable outlook.
Fitch also affirmed Malawi's country ceiling at 'B-' and the short-term
foreign currency IDR at 'B'.

TFN.newsdesk@thomson.com

Muluzi's handout habits back in desperation for the Presidency

Lazarus Nedi
08:27:04 - 26 March 2008



Bakili Muluzi’s 10-year-rule was characterised by money handouts, which he defended as generosity and spirit of sharing with the poor. However, some quarters of the society blamed the system, saying it breeds laziness and poverty as the President cannot reach every poor person with his generous hand. The critics of the system cited the biblical adage that do not give people fish but teach them how to fish because this helps them to be self-reliant. When President Bingu wa Mutharika came in, he discouraged handouts but his critics accused him of being mean with money. Actually, his administration is accused of locking up money “we don’t know where”. But it seems there is light at the end of the tunnel for those who rely on handouts with Muluzi’s bid for the presidency in 2009. Already, the former president is back to his old habits as captured in this picture distributing K50 banknotes to this little girl at a rally in Blantyre on Sunday. Old habits really never die.

-Main story by Dailytimes

Malawi to maintain growth above 7 pct in 2008-IMF

By Frank Phiri

BLANTYRE, March 23 (Reuters) - Malawi's real economic growth
will remain above seven percent in 2008, boosted by high tobacco
prices, aid inflows and fiscal discipline, the International
Monetary Fund (IMF) forecast on Sunday.

In a statement released at the end of a final review of a
so-called Poverty Reduction and Growth Facility (PRGF), the IMF
said Malawi's economic performance had encouraged it to discuss
a new programme for the southern African country.

"Helped by sound policies, including better management of
public spending, another good harvest, high aid inflows and high
tobacco prices, real GDP growth is estimated to have been almost
eight percent in 2007," IMF resident representative Maitland
McFarlan in a statement.

"And it is estimated to stay above seven percent in 2008."

Malawi's second consecutive surplus harvest of staple grain
maize helped reduce inflation from 15 percent in June 2006 to
eight percent in February 2008, although higher food and fuel
prices are putting upward pressure on commodity prices.

Malawi's annual inflation quickened to 8 percent in
February, from 7.7 percent in January, on the back of rising
commodity prices, according to the National Statistical Office
(NSO).

McFarlan said a new IMF programme under discussion with
Malawi would aim to improve macroeconomic stability, sustain
growth and ease poverty.

"The mission and authorities agreed that it will be
important to further strengthen public financial and economic
management and increase foreign exchange reserves to buttress
Malawi's ability to withstand negative shocks that could
otherwise derail growth and increase poverty," he said.

Discussions on a new programme have advanced and will be
discussed by the IMF's executive board in Washington in June.

The head of the IMF mission, Andrew Berg, said inflation
could be kept under control.

"Inflation is a concern but it is important not to resist it
too much. It is manageable and something to keep an eye on," he
said.
(Editing by Michael Georgy/Rory Channing)

South African store Shoprite probed for racist slur

by NATION REPORTER
(3/23/2008)

The Malawi Human Rights Commission (MHRC) has opened investigations on

South African retail chain store Shoprite following reports of racist
remarks by one of the company’s managers who allegedly called ‘monkeys’
black employees at the retail shop’s Lilongwe branch.

Shoprite Managing Director Jaco Dellemijn initially declined to
comment on the issue, saying it had already been resolved internally
but in an email response to a Nation on Sunday questionnaire Dellemijn
said their investigations revealed that there are "no grounds or
evidence that employees were the subject of the racist or abusive
language."

MHRC chairperson Dorothy Nyasulu disclosed during an interview that
after being alerted of the incident the commission opened
investigations and so far officials from the commission have already
interviewed workers who were reportedly the target of the racist
remarks from Finance manager Malcolm Smit..

"We have also written [Smit] who is being accused but he has not yet
replied to our query. As a commission we are investigating the issue
and we will issue a statement after we are through," she said.

Nyasulu said if indeed the manager uttered such remarks it was
regrettable because Shoprite was one of the companies which have
previously been warned to change the way employees are treated.

"We sent this report to them and asked them to change and if that
indeed happened then it means they don’t want to change. We would want
to ask the Ministry of Labour to come in and visit these companies
before something big happens," she said.

According to workers at the company, Smit called workers at the
branch ‘monkeys’ after he picked a quarrel with the employees during a
stocktaking exercise.

He explained that after the incident some workers were furious with
the racist remarks and went out to deflate tyres for two of the
company’s vehicles which were parked outside the building.

The employees said this was not the first time that some managers at
the company have made such racist remarks to black employees.

"However, instead of management addressing the issue of the racist
remarks they want to fire those suspected to have deflated the tyres of
the cars. We have challenged them that we will not accept to have our
colleagues fired because we feel that it is unfair. They have to
resolve the issue of us being called monkeys first," he said.

Responding to a questionnaire sent on request from Smit, the
company’s Managing Director said the company also instituted
investigations on the issue.

"(We) have found no grounds or evidence that employees were the
subject of the racist or abusive language you refer to. In addition, we
are also satisfied that there is no basis for the allegation that the
alleged name-calling also took place on 6 March 2008," said Dellemijn.

He added: "The company views allegations of the racist or abusive
treatment of any staff in an extremely serious light. Where such
misconduct is established, disciplinary proceedings are initiated which
may result in the summary dismissal of those involved."

President of the Commercial, Industrial and Allied Workers Union
(CIAWU) Tryson Kalanda said although his office was aware of the
incident it was waiting for an official complaint from the workers for
the Union to take action.

However, Kalanda said what the manager allegedly did was an offence
under both the Employment Act as well as Labour Relations Act.

TO ALL OUR READERS IN ALL SIX CONTINENTS

HAPPY EASTER

Has nyasa times gone too far?

as much as we appreciate this webpage to be a mouth piece for the UDF and Bakili Muluzi and respect their freedom of expression, it has increasingly become alarming to comprehend the tactics employed to discredit their foes the DPP and the current president.

With articles based on half truths and empty reckless unethical statements, this web page is not only defaming their opponents, the DPP and Mr Mutharika but essentially defaming Malawi as a whole in proportions never seen before in our history.

Here is the thing, when a reporter to the mentioned webpage writes how Malawi has 'a rotten society' and fails terribly to substantiate it merely for political gain, then Malawi we have a big problem. This problem does not become one of the DPP or Mutharika alone but it becomes a problem for every Malawian. Here is why, the internet, rightly called the 'world wide web' is accessed by many millions across regions and continents , including potential investors to Malawi. Unfortunately, what the editor if there is one at this blog is oblivious about is the fact that potential investors use the internet to get information on Malawi to determine the political,economic and social systems of the country to arrive at a critical decisions of investment. Now when this blog starts making claims that are simply not true they in essence are hurting our economy where we could have benefitted.

It is common knowledge in the 21st century that foreign direct investment (FDI) is the bed rock for any economy.Star performers, Botswana, Rwanda, South Africa all rely heavily on this open secret. Part of their strategy is to give investors confidence by among other things building a good reputation for their countries through good PR. All over the world governments are spending millions to give respective countries good reputations to encourage investment or tourism. Africa is the only continent on the planet that has lagged and not caught on to the idea yet in this regard.
The UK has the BBC in the PR game, the US has CNN, South Africa has SABC and then there is nyasatimes. There is something terribly wrong here.

Edwin
Sweden

Good for Food

From 16 to 23 March, TNT, in collaboration with eBay, will hold anauction on the internet for the World Food Programme. The proceeds ofthe auction will be donated to WFP’s School Feeding Programme in Malawi.

EBay members can bid at unique and exclusive items made available by
the Dutch business world. The items put up for auction vary from unique
objects to sports clinics and special trips. Members can make a bid for
Totti's signed football shoes, a hockey or tennis clinic, hotel and
dinner vouchers and numerous other interesting and fun objects and
outings.

All contributions can be admired and bought at eBay.nl. A special site
will be equipped where members can make their bids. The membership of
eBay is free and for every new member that applies eBay donates €3 to
the WFP.

To be able to bid on these unique items you need an eBay username and password. Click here to register!

Malawi secures funding for integrated rail, road, waterway vision

By: Marcel Chimwala

Published: 21 Mar 08 - 0:00

The Malawi government says it has secured funding for its
multibillion-dollar transport infrastructure development plan, which is
meant to improve its transport infrastructure and establish a seamless
transport link between the Southern African country and its neighbours
by taking advantage of transport opportunities to be derived from the
proposed $6-billion Shire–Zambezi waterway project.

The transport infrastructure development programme, which is rated
high on the Malawi government’s list of priority programmes, includes a
number of projects involving the construction of rail and road
infrastructure linked to the waterway project, which is designed to
benefit mainly Malawi, Mozambique and Zambia.

The principal secretary in the Ministry of Transport, Public Works and Housing, Francis Chinsinga,
says the Malawi government is preparing to implement a
multimillion-dollar project to rehabilitate its railway network so that
there is a seamless link with the networks of Zambia Tanzania and
Mozambique.

In collaboration with the railway operator, Central East African
Railways (CEAR), the Malawi government will rehabilitate the railway
infrastructure that will link the Beira railway line to Chipata, in
eastern Zambia, through Nsanje (Malawi’s port of call for the
Shire–Zambezi waterway project) and the cities of Blantyre and Lilongwe.

“Funds are available for this project. The government and the
concessionaire (CEAR) will share the cost pursuant to contractual
agreements,” says Chinsinga.

He says a team of consultants has completed evaluating the project,
and the government is currently studying the evaluation report.

The stretch from Chiromo to Makhanga, in Malawi’s lower Shire Valley
area, requires a complete overhaul, since it is impassable. It is to be
rehabilitated at a cost of $25-million.

“This part was severely damaged and bridges, such as the Chiromo
bridge, were washed away. We are still considering how to repair it and
the costs may even go up,” says Chinsinga.

This stretch is an extension of the Sena railway line, in
Mozambique, which is being rehabilitated by an Indian consortium using
funds sourced from the World Bank.
Mozambique’s part of the Sena railway line which is being rehabilitated stretches from Beira to Malaka, and

Malawi wants to rehabilitate its part starting from Malaka station through Chiromo and Makhanga stations to Blantyre.

Chinsinga says that this has shown that “there is a lot of work that needs to be done than was expected”.
On
the road infrastructure development component of the programme, the
Malawi government says it has secured financing for four major road
construction projects that will ensure that the rest of the country has
access to the Port of Nsanje.

Transport, Public Works and Housing Minister Henry Chimunthu Banda says
the Malawi government will implement these four road projects before it
starts major construction works for the port of Nsanje.

The four projects include the rehabilitation of the Bangula–Nsanje
road, the Thyolo–Muona–Chiromo road, the Chiromo bridge and the
Makhanga–Bangula road.

“We have funds readily available and we are not waiting for
Parliament’s approval. We are only waiting on the launching ceremony
for the projects,” says Chimunthu Banda, who declines
to explain where the government of the impoverished Southern African
nation is sourcing the funds required for the projects.

However, sources say the government of the People’s Republic of
China has indicated that it will assist the Malawi government in
financing some aspects of the projects.

China has also announced that it is to offer financial and technical
assistance to the Malawi government in implementing the Shire–Zambezi
waterway project.

Meanwhile, engineers from the People’s
Republic of China are assessing the work on the construction of the
Karonga–Chitipa road, in northern Malawi, which is estimated to cost
$45-million.

Construction of the 107-km road, which started early last year, with
funding from Taiwan, was stopped two months ago after Malawi severed
its diplomatic ties with Taiwan in favour of mainland China.

The decision resulted in the Taiwanese withdrawing funding for all
the projects they had been bankrolling in Malawi, and the People’s
Republic of China has taken over the financing of all these projects,
including the Karonga–Chitipa road project.

Chimunthu Banda reports that the engineers are currently study- ing
the designs and the data col- lected from the construction site, which
they inspected earlier this year, in order to come up with a complete
plan of action.

The People’s Republic of China is considering hiring a contractor
from within the Southern Africa Development Community region to
complete the construction work abandoned by a Taiwanese contractor.

The current arrangement with the People’s Republic of China will see
the road construction being extended from Chitipa into Zambia, since it
is vital for cross- boarder trade between Malawi and Zambia.

Malawi tea quality up

BY Business Reporter

14:17:50 - 21 March 2008



MALAWI
tea, with its honey gold colour is expected to attract more buyers on
the international market this year, a statement from London based
International Tea Committee has said.



The statement quoted in the March issue of Business Africa says Malawi,
whose production last year hit 47,752 tonnes, is expected to produce
about 45,000 tonnes this year, about three percent of the global output.



“Unlike some poor quality Indian blends that have added to the
perennial supply glut, over years, Malawi’s tea has special value that
is unique,” reads part of the report.



The report says Malawi, which ranks behind regional tea producers like
Kenya, has the potential to increase its market share on the back of
post election violence in Kenya despite good rains in the growing
regions of the Western Rift Valley.



But the report says Kenya rues Malawi’s low cost of production which is
less than 1 US dollar(K140) a day compared to Kenya’s labours who are
paid about US$2.55,--almost twice the rate in Malawi.



However, a South African based Inter Press Service (IPS) report says
despite the country's prominence in tea production, local producers
complain that the price for tea is low when compared to its neighbour,
Kenya.



The report says prices at the end of last year at the auction market
showed that tea was selling at an average price of US$1.50 per kilogram
for the top grades while in Kenya the same grade tea, was fetching up
to US$ 3.31 dollars per kilogram at the time.



Malawi, then Nyasaland started growing tea around 1880s under the
British rule and most of the tea is grown in southern region in the
districts of Thyolo and Mulanje.

New benchmarks for civil servants

BY DICKSON KASHOTI
17:08:40 - 19 March 2008

Government on Wednesday launched a performance management system for the 150,000 strong civil service in a bid to improve efficiency and effectiveness for improved quality services.

Thouse O’dalla, deputy chief secretary in the Office of the President and Cabinet immediately called on civil servants to change the way they approach work, saying it was time to shift from merely following prescribed procedures to focusing on achieving results and ensuring outcomes.

Speaking during the launch of the system in Lilongwe, O’dalla said the performance management is about constantly seeking to raise the standard and quality of service delivery to meet the expectations of ordinary individuals.

“In the Malawi scenario, it is raising the bar of excellence in the delivery of public goods and services to the nation. It is the process of communicating organisational mission, and objectives to all stakeholders, a setting and reviewing performance targets to measure the achievements of those objectives and ensuring that all these activities provide a basis for continuous performance improvement,” he said.

O’dalla also said the system is expected to facilitate the provision of feedback to employees on their performance, open up communication between managers and their employees and encourage and reward strong performance while holding people to account for poor performance.

The deputy chief secretary said the development of the system compliments the Malawi Growth and Development Strategy (MGDS) (2006-2011) which the government launched last year.

The MGDS is a detailed articulation of the country’s vision as we as strategies for achieving the goal of transforming Malawi from relative poverty to being a middle-income industrial nation by the year 2020.

O’dalla therefore said the system requires sustained commitment from all managers as it demands setting aside a significant part of time to plan with subordinates, support them, review progress and complete forms.

“Each ministry or department must have a strategic plan which is relevant and up to date, and which articulates the outputs to be achieved over a given period. Strategic plans should be accessible to employees, who should be adequately oriented on their contents, so that they are aware of what they are expected to contribute in order to achieve these outputs,” said O’dalla.

O’dalla also said the system demands that each employee should have an up to date job description, among other aspects, outlines the key duties and responsibilities attached to the job, saying this is important because it is on those functions that work performance is going to be assessed.

“The public will trust and respect its civil service if it delivers first class services to them,” said O’dalla.

The government of New Brunswick, Canada, helped the government of Malawi develop the system and is supporting the preparatory work for its implementation.

UDF TROUBLE: Muluzi angry with Uladi’s backers

BY MIKE CHIPALASA
17:18:47 - 19 March 2008

United Democratic Front (UDF) chairman Bakili Muluzi is reportedly furious with some party members who are also delegates to the forthcoming convention for pending their signatures to the nomination form of the only other presidential contender and UDF taskforce leader Nordeen Uladi.

Muluzi arrived in the country on Sunday from United Kingdom after routine medical check-up and warned that President Bingu wa Mutharika would face stiff opposition ahead of the 2009 presidential polls once the UDF endorses him as its candidate.

The latest development happened on Monday when Muluzi is said to have grabbed a party vehicle from a Mr Kudontoni, who is UDF deputy Central Region governor on allegations that he was supporting Uladi.

According to top-level sources in UDF, Muluzi believes Uladi is being sent by Vice-President Cassim Chilumpha, who is seen as one of the presidential challengers to act on his behalf.

But Uladi Tuesday said it was wrong for Muluzi to believe that all his efforts were sponsored by Chilumpha, saying lack of tolerance and trust in UDF is what was killing the party.

“What is the problem with Muluzi? I think this is now personal hatred against the Vice-President,” said Uladi in a telephone interview.

UDF secretary general Kennedy Makwangwala Tuesday confirmed Kudontoni’s official vehicle was impounded but refuted reports that it was Muluzi on Muluzi’s instructions.

Apart from quarterly parliamentary funding, Muluzi is regarded as the sole financier of the party and is said to be owner of the all party assets.

“No, it’s not rue that Muluzi took away the vehicle. How could this be because by then Muluzi was airborne? I just hear that the vehicle [of Kudontoni) was taken away three days ago and when did Muluzi come back?” said Makwangwala.

Quizzed on who grabbed Kudontoni’s official vehicle and for what reason, Makwangwala said he was also in the dark.

However, we could not contact Kudontoni yesterday despite numerous attempts at the party’s secretariat and other party officials in the Central Region to get his contacts.

A source close to Muluzi confided in The Daily Times on Monday evening that Muluzi summoned Kudontoni to his BCA residence and censured him for allowing delegates to sign Uladi’s form.

According to the source, Kudontoni, a former MP in Salima, was forced to walk from Muluzi’s BCA residence and had to board a minibus back to Lilongwe.

Kudontoni is a third UDF official to have his official car confiscated by Muluzi after former Chiradzulu district governor Ackim Ntaja and another district governor from Thyolo who were forced to walk from Sanjika Palace after disagreeing with the then president for choosing Mutharika to replace him as UDF candidate in 2004.

“There is now witch-hunting in UDF following signatures that UDF supporters appended on Uladi’s form. Muluzi wants to track down all those who signed Uladi’s form, which he believes Uladi is circulating for Chilumpha,” said the source.

“Muluzi claims to be democratic but what he is doing is totally different from what he says, is this democracy? UDF is hypocritical. This is what people like Sam Mpasu were fighting against and we all thought Mpasu is just troublesome, look now.”

In Lilongwe, UDF district governor, a Mr Mazengera, and the party’s official Mayi Fulawo are also said to have been ridiculed and stripped off their positions in the party for allegedly signing Uladi’s form, a claim Makwangwala dismissed.

Following the development, the source said, UDF would hold a National Executive Committee (Nec) meeting today at 9 am at BCA to, among other things, scrutinise and take a position on party members who signed Uladi’s form.

“When you fight in the family with your wife, do you go out and say we are fighting instead of solving that fight between yourselves? Now, you expect us to tell you about our problems before we have solved them on our own? About the Nec meeting, we will tell you when it happens, why do you seem to be in a hurry?” said Makwangwala while laughing.

Meanwhile, Uladi says he has so far solicited 680 signatures, 400 more than the legal requirement for him to be accepted as a contender at the party’s polls.

He said the signatures have been collected from across the country, adding that his sympathisers were still in the Northern Region collecting additional signatures.

Fired UDF spokesman Mpasu told the media two weeks ago that he was going to collect his nomination form to contest with the two on presidency once the party sets a date for the convention.

Mpasu is one of the four presidential hopefuls alongside Chilumpha, Brown Mpinganjira and Friday Jumbe.

Mpasu, Chilumpha and Jumbe allegedly had a secret meeting last month at the Vice-President’s Mudi Residence with the UDF taskforce members to strategise on how to handle the issue of contesting at the convention.

Jumbe, however, said he would not contest for the presidency as long as Muluzi competes for the same post, saying he wanted to respect the former president.

But the position of Chilumpha remains cloudy and he has repeatedly refused to comment on the matter although some party officials say he is interested to challenge Muluzi.

However, according to some UDF taskforce members, Chilumpha would only collect the nomination forms once UDF sets a date for the convention, a position Mpasu shares.

Disagreements started in UDF when Muluzi craved for a presidential comeback for the 2009 polls, especially when he forced other potential hopefuls like Jumbe, Mpasu and Mpinganjira to bow out.

Muluzi already canvassed support from delegates to the convention in order to make him an automatic president of the party to pave way for him to lead the party in next year’s general elections.

Already, all UDF’s four political regions have assured him of their support at the convention yet to be rescheduled after it was cancelled on December 19, 2007.

Muluzi wants to contest again for the presidency to remove Mutharika, who he accuses of being ungrateful after he personally catapulted him to the coveted office in 2004.

The Special Law Commission in its draft report, which is currently at cabinet level, said Muluzi as former president who served his two consecutive five year terms, was ineligible to bounce back as president.

The country’s constitution under section 83 (3) bars former presidents from crawling back into State House after serving a maximum of two consecutive terms in office.

Lawyers are, however, divided over the matter with others arguing section 83(3) of the Constitution was ambiguous and open for debate.

Muluzi was Malawi’s first democratic president between 1994 and 2004, a regime analysts say was a lost decade as it was characterised by allegations of reckless economic plunder and stinking corruption.

He left office after he failed by a whisker to push for third and open terms before he single-handedly handpicked Mutharika to represent the party during the 2004 general elections at the expense of other senior members in the party.

Assani dumps Chilumpha treason case

BY KAREN MSISKA
17:19:53 - 19 March 2008

Vice-President Cassim Chilumpha has been dealt a severe blow in his treason case with the withdrawal from his legal team of Fahad Assani.

Assani, hitherto considered Chilumpha’s closest friend back to their college days, confirmed the development in an interview Tuesday.

He said the decision was made to allow him to concentrate on his efforts to become the next MP in Nkhotakota South, which was previously held by Chilumpha.

“Yes it is true. What remains now is to do the withdrawal formalities in court,” said Assani, adding he would do that almost immediately.

Assani has been the frontman in defending Chilumpha since his arrest in a legal team also comprising Viva Nyimba and Kalekeni Kaphale.

“It is true that I am one of the people to contest in the 2009 parliamentary elections,” said Assani when asked to confirm that he withdrew from the case to contest in next year’s elections.

“I need a lot of time and I don’t want any of it to be taken away.”

He confirmed that his decision was in some way aimed at avoiding conflict of interest in case Chilumpha also wanted to contest in the constituency.

Chilumpha was elected MP for Nkhotakota South in the 2004 elections but resigned by virtue of being sworn in as Vice-President of the country.

When asked about his views on the development, Nyimba refused to comment, saying the client was better placed to do so.

However, efforts to get Chilumpha’s comments proved futile.

His spokesperson Diana Mwawa was reportedly in hospital while his personal assistant Horace Nyaka was in Lilongwe.

Nyaka said he was not aware of the development.

Ground phone for Chilumpha’s secretary went unanswered on several attempts.

Chilumpha was arrested for treason in April 2006 allegedly for plotting to kill President Bingu wa Mutharika in an act that would have allegedly been committed in Mzimba.

It is alleged that Chilumpha hired expert assassins from South Africa to do the job. The said assassins have now become state witnesses in the case.

Chilumpha is currently on bail at his Mudi residence.

He is allowed to travel both in and outside the country after his bail conditions were relaxed by the High Court.

UDF should walk the talk on democracy

By The Daily Times - 19 March 2008 - 16:59:01

The move by the United Democratic Front (UDF) to grab a utility vehicle from its senior regional official for the Centre because the man allegedly supports a party presidential hopeful, smacks of paying lip service to the ideals of democracy.

UDF deputy regional governor for the Centre, Mr Kudontoni, is said to have been summoned to BCA Hill in Blantyre to meet his boss, Bakili Muluzi, where he was told to leave the party vehicle as punishment for supporting Noordeen Uladi.

Uladi has been collecting signatures to support his nomination as a presidential contender. But Muluzi and other UDF officials believe the man is a front for Vice-President Cassim Chilumpha.

Kudontoni’s ordeal is reminiscent of two former UDF ofificials, namely, Ackim Ntaja, a former Chiradzulu district UDF governor and a Thyolo district governor who were also stripped of their official vehicles for allegedly not being loyal to the leadership. Old habits really die hard.

The punishment exacted on Kudontoni shows UDF did not wholeheartedly allow Uladi to contest against Muluzi. And this is exactly what former UDF publicity secretary Sam Mpasu meant when he said it was not enough just to say the party had opened up the contest to other members without changing the mindset of all other party cadres from regional ranks down to the constituency level.

Mpasu said there was need to ensure the party’s rank and file fully bought into the concept of democracy and its real meaning.

Democracy, among other things, accommodates tolerance of divergent views; it embraces freedom of association and allows a cocktail of ideas and views, which in turn realise informed decisions. Thus a party that professes to be democratic cannot at the same time be expected to hound its members when they want to exercise their democratic rights in whatever way.

But the other main problem UDF is suffering from is that it is more or less like a property of its national chairman. This is because apart from the parliamentary funding it receives, the party is solely funded and owned by Muluzi.

The result is that anyone holding different views from those of the financier is seen as not being loyal to the party; he or she is a rebel and therefore not fit to be in the party’s mainstream administration.

In a democracy, the party is supposed to be stronger than the strongest man in it. Unfortunately, that is not true with most political parties in the country. Maybe one day we will get there hoping that we have laid a firm foundation for the growth of democracy.

For the meantime we despise the undemocratic tendencies in UDF. The party should walk the talk on democracy.

WHY UDF IS NERVOUS WITH ACB NAMPOTA

by Gedion Munthali - Saturday, November 10, 2007 - 09:11:43

The United Democratic Front [UDF] is the only party
that has been critical of the appointment of Alexius
Nampota as ACB Director since it was made late last
month. Malawi News looks at some of the reasons why.

Nampota belongs to the maiden team of the ACB when it
started between March 1997 and January 1998. Gilton
Chiwaula, Nampota and Victor Banda proposed as deputy
director started the ACB as Director, Deputy Director
and Assistant Director respectively.

The UDF administration removed Chiwaula and sent him
out to head the Malawi Mission in Germany. This
happened after presiding over a number of cases that
caught the UDF administration on the wrong foot. His
legal mind was Nampota.

Nampota was also removed. The same administration did
not renew his contract. Victor Banda is still around
at the Bureau, and has remained in the same post:
Assistant Director, until now when he has been
appointed deputy director.

No reasons were given why Nampota’s contract was not
renewed. However, the decision came after a barrage of
cases which the ACB unearthed concerning government
maladministration. Some of these cases involved some
senior and influential ministers at the time.

In the then Directorship, Nampota was the only legal
mind. He was therefore literally at the centre of all
the legal fashioning of the cases. During
investigation of some, he gave legal guidance. In
short he almost saw it all.
Some of the cases included the Secucom Identity Cards
deal with a Swiss Firm. Government cancelled the deal
amid intense corruption allegations in early 2000.
Another? The UDF led government gave K50, 000 to UDF
and AFORD MPs for “development purposes” in total
exclusion of the MCP and independent MPs. This was
reward for parliamentary patronage. The money has
never been accounted for to this day.
Corruption led to the EU, UK, USA and the Danish
Government to suspend aid worth K1.5 billion pledged
for budgetary support.
A Consumer Association of Malawi report published in
April 1998 showed that over 70 percent of the sugar
business in Malawi was in the hands of a few ruling
party gurus and their sympathizers. USAID sponsored
the study.
In fact, the Sugar Corporation of Malawi (SUCOMA) also
admitted the existence of such a scheme, with former
President Bakili Muluzi owning 60 percent of the quota
at one stage.
The Public Accounts Committee (PAC) investigated cases
of top-level corruption involving the loss of K187
million at the Ministry of Education, Science and
Technology in 2000.
The loss was registered through improper accounting
procedures, award of contracts to ghost construction
companies, overpayments among others. To date the case
remains inconclusive.
Because of “political interference” the opposition MCP
Chairman of the Committee Situsi Nkhoma was dismissed
from the Committee because his Committee was “treading
on sensitive” ground.
Similarly, a Petroleum Control Commission (PCC) scam
involving ruling party politicians and “parastatal
moguls” was unveiled in 1998. This saw a financial
seepage totaling to over US$ 14million through
inappropriate awards of fuel contracts and receipts of
gratification.
These totaled US$ 215,507 and US$ 216,000 respectively
from Euro Petrol and “corruptly awarding a consultancy
contract to Humble Energy Limited and receiving US$
27,500 on each count as a reward. The ACB successfully
prosecuted and secured a five year jail term for the
PCC Boss Dennis Kambalame.
The case of European Union (EU) demanding a refund
from government amounting to K650 million which was
diverted and “mismanaged” also took centre stage. This
and several other corruption and mismanagement cases
led to the IMF, World Bank, UK and EU withholding
budgetary support
On 31stDecember 2002 the government announced through
Finance Minister, Friday Jumbe, it was ready to
“apologize” to the Danish Government – then EU chair
-for unexplained crimes in order for them to
reconsider a resumption of aid to the country.
The country watched with dismay how political
corruption penetrated the House on the peak of the
defeated open terms bill aimed at extending President
Muluzi’s term of office indefinitely.
Several MPs argued that although there is evidence
that some MPs were corruptly influenced to support the
bill, the ACB was taking too long to bring the accused
to book. Investigations at the ACB were deemed endless
due to political interference.”
Ironically, while evidence may not have been easy to
gather, then State President Bakili Muluzi decided to
come out in the open and publicly “confessed” at a
public rally held in Dowa district that he funded an
opposition MCP faction led by John Tembo to buy party
uniforms and conduct its convention in contempt of a
court order in Lilongwe in the run up to the “open
terms bill” parliamentary debate.
In the President’s view, this was done to “strengthen
the opposition in the country”.
Opposition MPs were “bribed” by the ruling party to
vote for the defeated “open term bill” aimed at
extending the tenure of office for Muluzi. Some AFORD
MPs openly received K100, 000 “soft money” each for
the same purpose from their party president who had
declared his support of the bill and was mobilizing
his party loyalists to do the same.
This clique finally voted for the bill in Parliament
in breach of party convention resolutions not to
support the bill and, in the process, splitting their
party.
A case in which Apex – a Land Rover Dealing Company
faced charges of corruption through a contract with
the government of Malawi in which it was agreed that
the company sells 110 Rand Rovers to government also
took centre stage.
It is alleged that the procedure that led to the
contract was not proper and that Apex was selling
second hand cars and that because of that, “there
would be an unnecessary expenditure of K152 million
through the contract”.
At the time the country was grappling with the worst
starvation in its recent history because of “criminal
negligence, corruption and mismanagement” of the
country’s National Food Reserve Agency.
The probe by a Parliamentary Committee on Agriculture
and Natural Resources on the “plundering” of the grain
reserves by ruling party politicians and top
government officials was suddenly halted by a
presidential order and the Committee chairman Joe
Manduwa was withdrawn in September 2002.
A month later, the Office of the President and Cabinet
(OPC) ordered an urgent inquiry into Finance and
Economic Planning Minister, Friday Jumbe’s role in the
plunder. In fact, some members of the Committee
indicated that they rejected any report and the issue
closed”.
The previous Committee report found that, among other
things, 30,000 metric tones of maize donated by the
European Union in 1999 were sold without proper
authorization.
According to a report by an Audit firm, Mwenelupembe,
Mhango and Company and the ACB, there were
discrepancies in the process and that “by 31st
December 1999, Admarc had purchased 153,739.507 metric
tones of maize when physical stocks weighed
153,338.581 while Admarc showed a book balance of
154,237.608 metric tones” leading to a situation where
some suppliers were overpaid by K9,592,895.00.28.
Over 167,000 metric tones of maize (the country’s
staple food) worth K2.9 billion were dubiously sold
from NFRA to top ruling party politicians and
government officials. The former deputy minister of
Agriculture, Leonard Mangulama and NFRA General
Manager, Henry Gaga, were fired because of the scam.
The same NFRA was alleged to have awarded a K98
million tender for the repair of its grain silos in
the capital Lilongwe to a brief case company, which
had failed to source spare parts and demonstrated no
capacity whatsoever to carry out such work.
The company, GWC, “won” the tender despite the fact
that it had never done this kind of work before
beating other 10 bidders including Equity Trading
Company (ETC), which also bid K98 million and had been
maintaining the silos since 1993.
GWC had since supplied incorrect parts which might
mean changing the whole plant and costing government
an estimated K300 million.
Other cases involving Asian business came under
investigations by the ACB and PAC but were not
concluded because of their financial liaisons with
politicians, judges, parliamentarians and bureaucrats.
For example, while it was difficult for the police to
arrest the politicians and officials involved in the
K2.9 billion maize scam, the police swiftly arrested
the Malawi Congress of Trade Unions General Secretary,
Francis Antonio, for failing to account for donor
money totaling K130, 000 meant for a seminar on child
labour.
Nampota saw almost all these things. He might have
failed to have taken some of these cases to court
because his hands were tied following the politics at
play at the time.
When he left the Bureau he almost kept handling some
of the ACB cases. For example he is the lawyer who
fought on behalf of the ACB Muluzi’s ownership of the
Keza Office Park.
His proposed comrade in arms, Banda, has been there
all this while. Together they are a wealth of
information that would make anybody with skeletons to
hide uncomfortable.
It should be obvious that the UDF should be
uncomfortable with his return to the Bureau. There are
so many things he saw, participated in, failed to do
which he may conclude now. Listen to the reaction of
UDF spokesman Sam Mpasu to the appointment:

“Mr. Nampota once served as deputy director of the
bureau and why was he not promoted to be director?
After he left the bureau, he became CAB lawyer. The
question is, what led to his new position and what
cases did he prosecute in this capacity? Were they
corruption cases?

“And after leaving ACB, he took over the law firm of
Gustave Kaliwo, who had been appointed director then.
This is a serious problem. These are some of the
issues that Pac will have to investigate before
Nampota starts working at the Bureau.”
Kaliwo is reported to have reverted to his private law
practice working together with Nampota as partners.
Both could not immediately comment to the allegations.

Kaliwo was forced to resign after he arrested Muluzi
and charged him with corruption, theft and abuse of
office for allegedly pocketing K1.4 billion public
money from foreign government and institutions.
Either Nampota already has this information when he
left ACB, and he must have passed it on to Kaliwo when
he went to ACB. Or as partners, Kaliwo has passed the
information to Nampota, in case he has no where to
start from once he takes office.
Conversely, the MCP does not feel any discomfort
probably because the ACB was not around during its
reign, and therefore Nampota did not nose into their
affairs.
MCP president John Tembo said there was nothing wrong
with the appointment although he was not conversant
with Nampota’s track record

- Malawi News

Malawi plans to prosecute ex-president for graft

Mon 17 Mar 2008, 13:37 GMT

[-] Text [+]

LILONGWE (Reuters) - Malawi's Anti-Corruption Bureau (ACB) plans to prosecute former president Bakili Muluzi over $11 million in donor money it says was siphoned into his private account, its director said on Monday.

"We have applied to the courts to remove an injunction he (Muluzi) obtained stopping us from questioning him because we are now ready to prosecute him on the $11 million found in his account," ACB director Alex Nampota told Reuters.

The anti-graft body briefly arrested Muluzi in 2006 on 42 counts of corruption. But all the charges, except for one involving $11 million, were dropped for lack of evidence.

Muluzi, who remains chairman of the opposition United Democratic Front (UDF) party and wants to run for president in elections next year, has denied wrongdoing.

UDF Secretary General Kennedy Makwangwala described plans to prosecute Muluzi as "political persecution" ahead of the 2009 elections.

According to official court documents, Muluzi is accused of diverting money from Taiwan, Sudan and several Arab countries.

A bitter standoff between President Bingu wa Mutharika and opposition lawmakers, including UDF members, has sparked a series of political crises in the impoverished southern African country that have threatened to derail the international donor programmes on which it depends for public spending.