Good economic performance helps double Malawi's soft loan funds from the African Development Bank

Lilongwe

The African
Development Bank (AfDB) Group has more than doubled its soft-loan
window funding for Malawi, the Bank Group's President, Donald Kaberuka,
said in Lilongwe, Malawi, on Wednesday.

"Under
our new soft loan lending cycle (2008-10), Malawi will receive a
significant allocation -- more than doubling its level of previous
resources to just under US$ 200 million," Mr. Kaberuka said at the
official opening of the AfDB Malawi Country Office.

He said the decision was based on Malawi's good economic performance.

Mr. Kaberuka said that due to reforms, Malawi had registered unprecedented economic growth and strong macroeconomic performance.

"These
reform efforts are leading to major developments in the delivery of
social services, economic growth and results which visibly impact the
lives of the people," he said.

Mr. Kaberuka
cited Malawi's fertilizer subsidy programme as an example of positive
reform that had helped address the cash constraints facing poor
smallholder farmers, decreased food security and contributed to
economic growth. He urged Malawi's development partners to support the
programme.

He also called on the Malawian
parliament to endorse the AfDB's budget support facility for Malawi,
which had been approved by the Bank's board in 2007.

"At
this time of enormous turbulence and uncertainties in the global
economy and its ramifications on us, it is important that we do not,
either by commission or omission, act in any way that deepens the
crisis.

"For our part, we will continue to be
guided by Malawi's own strategy for growth and development," Mr.
Kaberuka told dignitaries at the ceremony.

Addressing the audience, Malawi Finance Minister, Goodall Gondwe, described the increase in the allocation as "enormous'.

He,
however, urged the AfDB to relax some of its funding regulations to
help ensure that the funding was more readily available to Malawi.

The
AfDB Group currently has nine operations worth US$ 170 million in
Malawi. The operations are mainly in the economic and social sectors,
including rural infrastructure.

The AfDB also provides budgetary support to the Government of Malawi.

Lest we forget, January 2003: Malawi members of parliament flee over Bakili Muluzi's third term row

"It's shameful that the UDF party wants to take us back to the dark days,"
Mr Gwanda Chakuamba (2003)

Two opposition Members of

Parliament from the central tobacco heartland of Kasungu are in hiding
after angry militant youths of the ruling United Democratic Front (UDF)
terrorised their homes.

Gwanda Chakuamba, leader of the
opposition Malawi Congress Party (MCP), told BBC News Online that
Sailes Gulule and Carrington Jimu had fled their homes after the youths
invaded
their compounds Wednesday night, threatening to kill them.

"I am in hiding but I
am worried about my family
" Sailes Gulule

The youths were angered by the
government's failure to change the constitution to enable President
Bakili Muluzi to stand for a third term in office.

A parliamentary bill to this effect was shelved earlier this week after widespread opposition.

The issue has divided Malawians
and when the debate started on Monday, police had to fire tear gas to
disperse some 4,000 people protesting against the bill.

Unless the constitution is changed, Mr Muluzi is due to step down in 2004.

Knives and stones

"It's shameful that the ruling party wants to take us
back to the dark days," Mr Chakuamba said.

Mr Gulule said he was trying to plead with Inspector General of Police Joseph Aironi to provide protection for the MPs.

Speaking from his undisclosed hiding place, Mr Gulule
said the militant youths came to the MPs' houses in an open van in the dead of night.

He
said sympathisers warned him to flee his house because the vehicle was full of people armed with machetes and stones.

"I was really scared," he said. "I am in hiding but I am worried about my family."

Both Mr Gulule and Mr Jimu were reported in the local media
as having rejected UDF attempts to persuade them to vote for the bill.

Food shortages

The two are the latest victims of the fall-out following
the shelving of the controversial third term bid.

Sacked Commerce and Industry
Minister Peter Kaleso and outspoken MP Green Lulilo Mwamondwe, from the
opposition Alliance for Democracy (Aford) had to seek refuge at the
British High Commission after being roughed up by UDF activists.

Two other dissident ruling UDF MPs, Joe Manduwa and
Jan Jaap Sonke, had to be rescued by police after openly saying they would thwart the bill.

Meanwhile, the British High Commission has expressed
disquiet over the holding of the extraordinary parliament session.

In a press release, the UK said
it was sad that at a time Malawi was reeling from severe food shortages
and the impact of HIV/Aids, government saw it wise to spend 7 million
Malawi kwacha ($80, 000) to hold the special debate.

Lest we forget, June 2002: Bakili Muluzi's lack of respect for the Judiciary system of Malawi

The High Court of Malawi has declared unconstitutional President Muluzi's ban on demonstrations against the controversial presidential third-term debate, but the head of state said on Tuesday he would ignore the ruling.

President Bakili Muluzi argued that he had outlawed all demonstrations relating to his bid to amend the constitution, which imposes a limit of two presidential terms, for the sake of "peace and stability".

" I am a good dictator who wants to maintain peace and stability in my country " President Muluzi

A High Court judge said on Monday that the presidential decree was unconstitutional, and that it was the president's duty to ensure that the police and the army protect demonstrators.

A two-third majority is required for the bill to be passed in Parliament, where President Muluzi's United Democratic Front (UDF) hold about 40% of seats.

President Muluzi said that the court ruling was "irresponsible and insensitive".

"I will instruct both the army and police that demonstrations should not take place," he said.

'Eruption of violence'

At a public rally outside the capital Lilongwe on Sunday, President Muluzi rejected allegations that he was a dictator for banning the demonstrations.

"If by ensuring that there is no chaos here, then indeed I am a dictator," he said.

" Wider views should be entertained " Judge Mwaungulu

"But the advantage with me is that I am a good dictator who wants to maintain peace and stability in my country."

On Monday, High Court Judge Dunstain Mwaungulu said that the president's decree was illegal, and that he was issuing an injunction against it.

"Because the issue is now in parliament, it is in the public domain, so wider views should be entertained," he said.

"There is likely to be eruption of violence as different people begin to express their opinion in a dramatic way, that is why organs of state, like police, should ensure maximum security for the demonstrators."

Hiding

Amid the controversy, 20 students held a demonstration on Tuesday in the university town of Zomba, about 70km east of the economic capital Blantyre, where police reinforcements had been brought in.

The students carried anti-third term banners and chanted anti-government slogans, but armed officers prevented them from proceeding.

On Sunday, at least 50 members of the opposition National Democratic Alliance went into hiding in Zomba after skirmishes with suspected UDF youths.

One of the group, Wilfred Shaba, told the BBC's Raphael Tenthani from his hiding place that anyone seen sporting the purple ribbon, which has been adopted by the anti-third term campaign, was a target.

Religious divide

He said that neither the police nor the judiciary had been willing to investigate.

Members of Parliament started a debate on the issue on Friday, but are not expected to put it to a vote until July.

If the bill is passed, the constitution will be amended, allowing President Muluzi to run for a third term in 2004.

Our correspondent says that the present stand-off between the president and the judge is further evidence of the strained relationship between the ruling party and the judiciary.

In November last year, UDF members of parliament moved a motion to impeach Justice Mwaungulu and two other senior judges for being partial to the opposition.

Civil rights and Church groups, which oppose the amendment, are planning demonstrations in the country's cities and towns this Friday.

In contrast, the country's Muslim community has expressed support for the bill.

Delayed national budget affects Malawi's Olympic team

The 10 member Malawi Olympic Committee (MOC) left for the Beijing
games without up keep allowances and kits due to financial constraints.

Speaking after the delegation’s departure at the Kamuzu
International Airport (KIA) in Lilongwe Monday afternoon, MOC president
Floriano Massa said the budget for the trip was K6.5 million to meet
food, sport kits, accommodation expenses, while air tickets were
provided by Malawi government and International Olympic Committee
(IOC).

Government managed to provide K2.5 million, leaving a huge shortfall.

“We have had an impact of the delayed national fiscal budget,
government can not release enough funds now and that has made us fail
to meet other obligations for the trip but we are working out how to
solve the problem,” said Massa.

He said MOC had to fall in debt to facilitate the trip as they were
finalizing on some other necessities while the team was already in
China.

“Things like sport kits are very important and the athletes can not do
without them,” said Massa. “But we are doing everything so that they
are provided with those materials before the games start.”

He promised the athletes that the kits which were being procured from South Africa should reach them on August 5.

Massa said the IOC assisted with some of the air tickets and government met the rest of the expenses.

The Olympic Games will open on August 8 with a ceremony that will parade about 7,000 athletes from 203 countries worldwide.

The Malawi team comprises short distance athletes Chancy Master who
runs 1,500m, Lucia Chandamale, 500m and swimmers Charton Nyirenda and
Zahra Pinto who have been training in South Africa.

Polyanna Pinto (mother to Zahra) accompanied the athletes, while Ken
Dzekedzeke and Yona Walesi are the athletes and swimmers coaches,
respectively. The team manager is Haxson Chapasa who is also MOC
General Secretary.

Malawi Growth and Development Strategy / African Development Bank Group ( AfDB) / AfDB President in Malawi

LILONGWE, Malawi, July 29, 2008/African Press Organization (APO)/ — The President of the African Development Bank Group, Donald Kaberuka, arrived in the Malawian capital, Lilongwe, on Tuesday to begin a two-day official visit.



Mr. Kaberuka will meet with Malawian President Bingu wa Mutharika and hold talks with leading government figures, including the Minister of Finance, Goodall Gondwe, and the Minister of Economic Planning and Development, Ken Lupenga.



“The main objective of the visit is to conduct dialogue with the Government of Malawi on how the African Development Bank can support its various development programmes, particularly those related to the Malawi Growth and Development Strategy,” an AfDB spokesperson said. “The talks will strengthen cooperation between the AfDB and the Government of Malawi.”



While in Malawi, Mr. Kaberuka will participate in the official opening of the African Development Bank’s Malawi Field Office and also address members of the private sector on the theme ‘Africa, the New Landscape: Managing Threats to Sustain Momentum’ in Blantyre, Malawi’s commercial hub. He will, on Thursday, conclude his visit to Malawi with a press conference in the capital, Lilongwe.



Malawi became a member of the African Development Bank Group in June 1969. The AfDB’s operation in the country began in 1972. By June 2008, the AfDB’s commitments in Malawi had reached USD 595.5 million in 92 operations.



The establishment of the Malawi Country Office is part of the Bank’s reform programme that began in 2005 and is aimed at improving efficiency by moving the Bank closer to its clients.



The Bank has, so far, opened 25 regional and field offices as part of its decentralization programme.

When does a gift cease to be a gift and become a bribe that compromises a public officer

Dorothy Kweyu
Nairobi

A
MALAWI HIGH COURT JUDGE is making waves for unusual reasons. In a
corruption-prone continent, Mr Justice Edward Twea has caught the
nation's imagination after rejecting a cash "gift" from former
President Bakili Muluzi.

Mr Muluzi is the man
who made history when he dislodged President Kamuzu Banda to become
post-independence Malawi's second president in 1994.

And the good judge, according to media reports, handled the rejection
rather dramatically; he had the High Court and Supreme Court of Appeal
deputy registrar return Sh7,000 (15,000 kwacha) to Mr Muluzi, who had
given him the "gift" when the former was admitted to a hospital in
Blantyre last year.

Mr Justice Twea had good cause to reject Mr
Muluzi's cash gift; he happens to be one of the three constitutional
court judges handling a case that seeks to interpret Section 83(3) of
Malawi's constitution, which seeks to restrict the president, the
vice-president and the second vice-president to a maximum two
consecutive terms.

Mr Muluzi became president
on a crest of popularity following decades of the Banda dictatorship.
Then, Malawi Young Pioneers held sway.

The
Pioneers literally forced beleaguered citizens to buy membership cards
from the ruling Malawi Congress Party (MCP), which alone guaranteed
their access to markets, grinding mills, hospitals, transport, you name
it.

The Young Pioneers would simply leave a batch of cards at an office, only coming back for the money.

Pregnant women had to buy, not only their cards, but also for their yet-to-be born babies.

These Pioneers had a military wing reportedly trained by Israelis, which was better equipped than the national army.

IT
WAS, THEREFORE, WITH A HUGE sigh of relief that Mr Muluzi took the
reins of power a year after a successful referendum for multiparty
politics in 1993.

But Mr Muluzi's good will
among the people was short-lived - a fact that was amply demonstrated
when he failed to convince Malawians to allow him to run for a third
term.

Enough about historical background; the
issue at hand is Mr Justice Twea's rejection of Mr Muluzi's K15,000.
Not only that; the country's Anti-Corruption Bureau is currently
investigating the former president on another case involving bribery of
court clerks.

While the amount involved may be
trivial, there is no escaping the judge's own explanation: " it would
be inappropriate and unethical for him to accept the money that
accompanied your good will message", wrote the registrar of the High
Court.

Given that the money was linked to Mr
Muluzi's visit to the judge, who had been admitted to hospital when the
gift was made, it is easy to accuse the judge of being petty.

After all, isn't common for relatives, friends and well-wishers to offer gifts to those in hospital?

And
yet, Mr Muluzi was not your normal well-wisher; he is a former Head of
State seeking another term. It is, therefore, common sense that his
financial gift should raise a red flag.

Secondly, Mr Justice Twea's rejection draws attention to the thin line
between traditional hospitality and graft. When does a gift cease to be
a gift and become a bribe that compromises a public officer in the
execution of his duties?

Malawi court throws out legal challenge to Muluzi's third-term bid

BLANTYRE (AFP) — A court in Malawi has dismissed a legal challenge to former leader Bakili Muluzi's bid for a comeback third term as president next year, court officials said Saturday.

Judge Edward Twea, head of a three-man panel sitting at the southern African nation's highest Constitutional Court, said in his ruling, obtained by AFP, that the "issue of eligibility of the defendant (Muluzi) under the constitution has not arisen yet.

"We do agree that the controversy in the (Muluzi) party over the interpretation of the constitution is a big political risk... However, we stand firm that it is not the the duty of the court to give legal advice," Twea said.

The challenge was brought by a junior member of Muluzi's former ruling party, the United Democratic Front (UDF). James Phiri said Muluzi had served the maximum two terms from 1994 to 2004.

But the court passed responsibility for accepting or rejecting Muluzi's anticipated candidacy to the Malawi electoral commission, when nomination's close in January ahead of May presidential and parliamentary polls.

Muluzi failed in a bid to amend the constitution to allow him to stand for a third consecutive term in a 2004 poll.

While the UDF has not yet announced formally whether Muluzi is a candidate, Muluzi's lawyers said they were satisfied with the ruling and would advise their client.

Judge Twea added that the party "must rise to the occasion to separate the law from politics or vice versa. This, preferably, should be done before the nominations for 2009 general elections."

Ralph Kasambara, a former attorney general but one of the Muluzi's lawyers, told AFP: "We will cross the bridge when we get to the river."

Muluzi, who holds the influential position of chairman in his party, has launched a fervent bid to unseat his chosen successor Bingu wa Mutharika.

A convention of his party in April endorsed his candidacy.

The former president wrestled power from dictator Hastings Kamuzu Banda in 1994, but flopped in his bid before the 2004 polls to extend his eligibility.

Mutharika has been at loggerheads with Muluzi since the former ditched the UDF to form his own Democratic Progress Party.

Muluzi was recently arrested but not charged over claims by the government that he was plotting to overthrow Mutharika, helped by a former head of the army.

Maize traders release 5,000 metric tonnes

by NATION REPORTER (7/21/2008)



Traders have released 5,000 metric tonnes of maize to the National Food Reserve Agency (NFRA) in four days, beating a two-week deadline set last week by the Grain Traders and Processors Association at a meeting in Lilongwe.

The Lilongwe meeting was organised to find ways of availing maize to the public and break the vicious cycle of hoarding maize for anticipated inflated prices.

The association’s president Grace Mhango in an interview yesterday said she received confirmation from NFRA that the maize had been delivered, vindicating her earlier admission that maize is available in the country. She had blamed traders for the scarcity and exorbitant prices through hoarding.

The development also vindicates President Bingu wa Mutharika who has on several occasions accused some private traders of deliberately hoarding the grain to cause shortages and make a mockery of his administration for failing to secure food security for the country. Mutharika also accused the traders of trying to reap off poor people with exorbitant prices later in the year.

Said Mhango: "Our demand for the initial 5,000 metric tonnes was done as a test in finding out the real issues on maize and whether the scarcity was genuine. The prompt response from traders has proved a distortion of the market.

"We have proved maize is available and more will pour in because people are now beginning to understand that there should be no reason for hoarding. I am sure by next week we should stock not less than 10,000 metric tonnes."

A joint report by the Ministry of Agriculture and Food Security, the Famine Early Warning Systems Network (FEWS Net), the World Food Programme and FAO with funding from Usaid agrees with Mhango, saying maize is available in markets across the country but costs highly because of competition among traders for purposes of hoarding.

"To attract more supply, the buyers have been offering high prices to farmers, pushing prices up in the process. Soon after harvest, maize prices averaged K20 per kg but the situation changed suddenly following the intensification of the competition among buyers," reads part of the report dated June 16, 2008.

Malawi High Commissioner set to attract more investors

BY GERALD NAMWAZA
09:04:38 - 22 July 2008

MALAWI’S High Commissioner to the United Kingdom Francis Moto on Friday said he would continue to market the country to potential investors including those in Nordic countries.

Moto was speaking at the end of a three day successful Commonwealth Business Council (CBC) investment forum held at Mount Soche in Blantyre.

He said the initiative to bring the investors in the country followed a meeting in London with prospective investors where the Minister of Trade and Industry Henry Mussa was in attendance.

“The aim was to establish how best to connect various investors with Malawi and then we came up with a concept paper that has materialised in this investment forum,” Moto said.

He said most investors in the United Kingdom were interested in mining and agro processing adding that it was imperative that the merchants come to Malawi to see things for themselves.

“One thing that has helped to sell Malawi is the prevailing good macroeconomic climate and the general stability in the country under the current government,” the high commissioner said.

He said the coming in of the CBC delegation was just the beginning as this office in London was also eyeing countries such as Norway, Denmark and Sweden.

The CBC delegation was on a three day visit to hold talks with local investors with bankable projects of about US$10 million and according to the high commissioner there will be a follow up forum in October.

Malawi to benefit from Clinton initiative

by PROMISE ZALAKATA KAMANGA

Malawi stands to benefit from the malaria pricing agreement former US president Bill Clinton has signed with various suppliers involved in producing and supplying anti-malaria drugs.

Clinton’s Foundation signed the pricing agreement last Thursday in an effort to stabilize anti-malaria drugs fluctuating prices and ensure more people have access to the drugs.

In 2002, Clinton established an HIV and AIDS initiative that aimed at negotiating lower prices for antiretroviral drugs and he has since expanded his focus to include malaria treatments such as artemisinin-based combination therapies (ACTs).

When contacted for his comment yesterday Director for Preventive Health Storn Kabuluzi could not immediately confirm if Malawi was included in the initiative but was quick to point out that the initiative stands to benefit all countries that face the malaria problem

“I am not quite sure but the way they have done it, it seems all countries would benefit,” he said.

Kabuluzi said at present the anti-malaria drug is expensive such that very few people can afford to access it from private pharmacies.

“Government is providing free anti-malaria drugs but still other people would think of buying from a private pharmacy where it is selling at K3,000. How many can afford that price?” he quizzed.

Kabuluzi then said the country was ready for assistance from any partner in the fight against Malaria.

The country’s new diplomatic ally, China recently pledged to donate a K140 million worth anti-malaria drug which according to Kabuluzi is not different from LA, the anti-malaria drug that is currently in use in the country.

Malaria accounts for about 22 per cent of all hospital admissions, 26 per cent of all outpatient visits, and 28 percent of all hospital deaths.

According to Clinton, one of the factors making the price of artemisinin so volatile, unsteadily moving from $155 (approx. K21,700) to $1,100 (K154,000) per kilogram in recent years, has been the erratic shortage and excess of the artemisinin extract.

“Today the supply, as well as the demand, has led to these dramatic fluctuations in prices,” Clinton was quoted saying after signing the agreement.

United Nations (UN) special envoy on malaria and officials from other anti-malaria drug supplying companies joined Clinton for the announcement at his Foundation’s headquarters in USA.

Clinton has negotiated with six suppliers involved in producing ACTs that have agreed to certain price ceilings that the foundation says will help keep prices stable.

Worldwide, about 500 million people are affected with Malaria each year, and more than 1 million die from the infectious disease, which is spread by mosquito bites.

The disease, however, is mostly posing a big threat in the Sub-Saharan region where malaria prevalence is currently the highest.

Besides benefiting from a more stable market, the suppliers that join the Clinton effort also stand to benefit through business and marketing assistance from the foundation.

Bribe Scandal! : Bakili Muluzi fails to bribe High Court Judge

by NATION REPORTER (7/20/2008)

The Anti-Corruption Bureau (ACB) is probing if former President Bakili Muluzi has a case to answer for sending money to High Court Judge Edward Twea while the judge was in hospital last year, Weekend Nation can reveal.

Twea said on Monday he could not receive the monetary gift "on professional grounds" and had to return it through the Registrar of the High Court.

Said Twea in an interview: "I was in hospital last year at CURE in Blantyre and received gifts. Some of the gifts were not acceptable professionally and these were referred to the Registrar to send back to the people that had sent them. You can get details of the gifts that were referred to the Registrar from the Deputy Registrar."

ACB public relations officer Egrita Ndala said yesterday Muluzi’s gift attracted the attention of the bureau and it instituted investigations.

"The Anti-Corruption Bureau indeed received the above complaint and proceeded to carry out a preliminary inquiry in respect of the same," said Ndala: "The information gathered is currently being reviewed to determine whether a full investigation should be mounted."

High Court and Supreme Court of Appeal Deputy Registrar Dorothy Kamanga also confirmed that Muluzi gave money to the judge which was returned on ethical grounds.

"I do not know how much it was. I was not there," she said.

But unconfirmed reports allege Muluzi sent three bundles of new K50 banknotes. Bank sources said three bundles of K50s make K15, 000.

Efforts to talk to Muluzi proved futile as his cell phone went unanswered for several times.

But his personal assistant Lucius Banda said: "I do not think my boss had any motive behind the gift. He has helped many people and Malawians know that he is a generous man."

Weekend Nation investigations reveal that former registrar Slyvester Kalembera, wrote Muluzi on May 15, 2007, explaining why the judge could not accept the money.

Reads the letter from Kalembera, now a High Court judge: "I have been directed by Honourable Justice Twea to inform you that he is very grateful for your message of goodwill which you sent him as a result of his illness.

"However, His Lordship has further advised me that it would be inappropriate and unethical for him to accept the money that accompanied your goodwill message.

"Consequently I hereby return the money on his behalf. I trust that the foregoing is in order."

Executive director of Justice Link Justin Dzonzi said the judge did "very well" to reject the money.

"Had he taken the money, it would have been difficult to handle any case involving Muluzi even if he had acted professionally," said Dzonzi who is also a lawyer.

Twea is one of the three Constitutional Court judges handling a case in which James Phiri is disputing Muluzi’s decision to contest again in the presidential elections next year, having served two consecutive five-year terms already. The other judges are Joseph Manyungwa and Healey Potani.

During the first hearing of the case in the Constitutional Court on Tuesday this week the three judges shocked the parties to the matter by describing the issue as an internal dispute within the party which the court can’t get involved in at this stage.

Phiri, through his lawyer Christopher Chiphwanya, asked the court to interpret Section 83 (3) of the Constitution which reads in part: "The President, the First Vice-President and the Second Vice-President may serve in their respective capacities a maximum of two consecutive terms..."

The ACB also instituted investigations on Muluzi last year in May following reports that he gave out money to court clerks at Blantyre Magistrate’s Court where he went with his lawyer Ralph Kasambara for a case in which he was accusing DPP Director of Women for the South Alefa Wenzulo, Malawi Broadcasting Corporation and Malawi Television of defamation.

Lest we forget (2002) : "Muluzi government corruption halts Danish aid"

by BBC NEWS 2002

"a weak administration in Malawi since 1995 has made it difficult to implement development programmes"

Finn Skadkaer Pedersen
Danish Charge D'Affaires

The Danish embassy in the Malawi capital, Lilongwe, has said Copenhagen's decision to withdraw all its development aid to Malawi with immediate effect has been prompted by Malawi's corruption and political intolerance.

In a strongly-worded statement issued in the capital, Lilongwe, Danish Charge D'Affaires Finn Skadkaer Pedersen said "a weak administration" in Malawi since 1995 has made it difficult to implement development programmes.

Mr Pedersen said corruption and misuse of Danish and other donor money has become a "markedly increased issue".

He also said political intolerance by the ruling United Democratic Front (UDF) of President Bakili Muluzi as witnessed by politically-motivated violence and what he termed as "systematic intimidation of the opposition" has made it difficult for Denmark to continue assisting Malawi.

Intimidation

Recent ruling UDF-initiated attempts to intimidate judges in Parliament did not help matters, he said.

"On this background, the Danish government has decided no longer to include Malawi in its list of programme countries and to phase out DANIDA's support to development and environment programmes in Malawi," Mr Pedersen said.

"This means no new Danish development or environmental programmes or projects will be initiated in Malawi."

The president has accused donors of meddling

The Malawi Government is yet to officially comment on the withdrawal of the Danish aid but already hundreds of jobs are on the line.

Mr Ted Nandolo, executive director of Council for Non-Governmental Organisations - an umbrella group for NGOs in Malawi, says Malawi NGOs will suffer.

Malawian NGOs, including environmental and good governance projects, get a chunk of its operating funds from Denmark.

Mr Nandolo said that all civil society groups in Malawi have petitioned Copenhagen to reverse the decision.

Sympathisers

Sympathy for Malawians has been expressed by other Danish quarters.

Ms Elsebeth Krogh, secretary general of NGO Churches Emergency Aid in Denmark, told Danish press it was shocking for Copenhagen to cut aid to Malawi, one of the poorest countries in the world.

"It's shocking and undue to cut development aid this drastically," she said.

Denmark's move comes just a week after President Bakili Muluzi lashed out at donors, accusing them of meddling in African politics by using their aid money to influence political trends on the continent.

Recently, at a public he told Malawians that western nations have no right to tell African governments how to govern their countries.

"We are poor yes but we are a sovereign state and nobody should teach me how to run this country," he told Malawians at a recent public rally.

Relations between Denmark and Malawi soured late last year when Copenhagen was forced to recall its outspoken Danish ambassador to the country Orla Bakdal after an audit report he instituted, on how Danish money was being spent, revealed some anomalies.

In 1999 Denmark gave $18 million in aid to Malawi, a poor southern African nation of 10 million people. $87 million had been earmarked for the four-year period ending in 2004.

Investors interested in Malawi again as a result of current stable macroeconomic fundamentals

The Window on Malawi

The Commonwealth Business Council (CBC) delegation which arrived in the country on Tuesday to explore investment opportunities says they hope their visit will yield ‘tangibvle outcome’ that would in turn help Malawi realise its development agenda.

Sanmit Ahuja, leader of the 22-member delegation, said the three-day visit is aimed at exploring investment opportunities in some of the country’s lucrative sectors.

Speaking at Sunbird Capital Hotel during a welcome reception hosted by the Ministry of Industry and Trade, Ahuja—who is the director of investments and ventures for the United Kingdom-based CBC—said the team would seriously embark on discussions with local business captains in striking business deals in bankable projects in the agreed sectors.

"We are very much interested to capitalise on this visit and it is our aim to come up with tangible output from this visit," he said.

Ahuja added that their Council is optimistic that the ‘intense discussions’ with Malawian local business captains would bear fruits for the mutual benefit of the two negotiating parties.

"What our Council do to the small economies like Malawi is very substantial and with Malawi we want to create a framework for large scale investment by mobilising substantial investments," said Ahuja.

In his welcoming remarks earlier during the day at the Kamuzu International Airport, Industry and Trade Minister Henry Mussa described the coming of the delegation as a "golden opportunity for Malawi ’s crucial projects to be stimulated."

He assured Ahuja and his delegation that the local business persons are keen to strike business deals with the expatriate investors through the one-on-one networking.

Mussa also told journalists that President Bingu wa Mutharika, who has been attributing the interest of foreign investors to his sound economic management, is excited with the visit by the CBC delegation.

During the welcome reception, Minster of Tourism, Wildlife and Culture Callista Chimombo thanked the Commonwealth business investors for choosing Malawi as an investment destination.

"The business climate in Malawi is so conducive and there is stability in all the macroeconomic fundamentals. In addition, we have good investment incentives by Mipa [Malawi Investment Promotion Agency]," Chimombo told the CBC investors.

From last week, interested Malawians business person with have bankable projects worth US$10 million (about K1.4 billion) or more had been registering with the Malawi Confederation of Chambers of Commerce and Industry (MCCCI).

Today, the delegation is expected to hold an investment forum with their local counterparts in Blantyre where a number of presentations by experts from the banking, tourism, capital markets, information and communications sectors.

Standard Bank Limited is one of the major partners that has teamed up with the Malawi Government to sponsor the Commonwealth Business Council investment meetings in the country

Malawi Inflation drops to 7.9% from about 30% during the Muluzi/UDF era

Investing | Africa - Reuters.com

Malawi credits IMF loans for healthier economy
Wed 16 Jul 2008, 12:52 GMT
[-] Text [+]

LILONGWE (Reuters) - Malawian Finance Minister Goodall Gondwe on Wednesday credited the International Monetary Fund for bolstering the African nation's foreign reserves and allowing it to reduce domestic debt and interest rates.

Malawi, one of the poorest nations in Africa, is enjoying a modest economic boom that has been sparked by good maize harvests, economic reforms and an increase in aid from Western nations and other international donors.

The IMF has provided the southern African nation $62.1 million in loans under a three-year programme agreed in 2005. The IMF's final payment this week was increased to $24.7 million because of its concerns over Malawi's foreign reserves position.

In a press conference in Lilongwe, Gondwe said the IMF funding enabled the government to absorb the shock of rising fuel and fertiliser costs and help lay the foundation for economic stability.

"It is largely because of the IMF programme and our success in following that programme that we have managed macroeconomic achievement like the deceleration of domestic debt from 25 percent of GDP in 2004 to about 12 percent now," Gondwe said.

"Because of the IMF programme the interest rates have decelerated from 35 percent to 15 percent, inflation from as high as 30 percent to single digits of 7.9 percent."

The country's inflation rate dropped into single digits in early 2007 for the first time in four years, fuelled by lower food prices. That prompted the central bank to continue cutting interest rates.

The government has said it expects the economy to grow by about 7 percent in 2008.

Malawi Commissions its First Uranium Mining Project

VOA News - Malawi Commissions its First Uranium Mining Project

Malawi’s government has commissioned the country’s first uranium project, an effort that is expected to boost the economy. The mine will be located in the northern district of Karonga. The approval of the Kayerekera Uranium Project came after critics withdrew their court injunction against it. Voice of America English to Africa Service’s Lameck Masina reports on its expected benefits.

Economists say the ten-year project is expected to boost Malawi’s foreign exchange earnings by 20%. It’s set to begin in December and will be managed by the Australian mining company Paladin Africa Limited.

Prominent economist Goodall Gondwe is Malawi’s minister of finance. He says the project is expected to contribute greatly to annual export earnings, “You [we] are looking at more than 40% addition to our export now. This is huge. It means [if] this project is successful, we will in fact pass the one billion US dollar mark in exports and the impact of that on the economy is enormous.”

Until now, tobacco has been Malawi’s main export, contributing most of the country’s foreign exchange earnings. The new mine may change that, producing an expected 100 tons of uranium every year.

But civil society organizations opposed the government’s decision to grant a license to Paladin Africa Limited. They said the company had not addressed possible environmental and health problems.

They said gas released from the mines could cause a number of illnesses, including cancer, kidney infection and brain damage. They also expressed concern over the wastewater from the mines.

But the government said Paladin had met all legal requirements and all the environmental issues had been dealt with. Unconvinced, the NGOs obtained a court injunction to prevent the government from approving the project. The case was settled out of court amid allegations from other civil society groups that their representatives accepted kickbacks to back down.

Undule Mwakasungura is the executive director of the Centre for Human Rights and Rehabilitation, one of the NGOs that strongly opposed the project. He explains the change of heart, “The discussions have been very honest, very honorable and I believe that it is important that at a certain point decisions should be made for the interest of the country. And this is what we made. The issue of motivating us with money was not there. Whether we are corrupt or not, it’s up to the people of Karonga to judge us. But I believe we have made a better decision for the interest of this country.”

Mwakasungura says both the government and Paladin have agreed to address all the concerns raised by the civil society organizations.

John Borshoff is the managing director of Paladin. He says his company will adhere to the terms of the out-of-court settlement. They include the establishment of a new NGO, which will be part of a broader monitoring group that will keep an eye on the environmental and health impact of Paladin’s mining operations.

The company has also amended its social responsibility program, which now includes the allocation of $8 million towards upgrading the water supply for the surrounding communities.

Only five countries in the world produce and export uranium -- Canada, Australia, Kazakhstan, Namibia and Russia. If the Kayerekera Uranium Project succeeds, Malawi will join them.

IMF ups loans to Malawi as fuel costs squeeze

WASHINGTON (Reuters) - The International Monetary Fund increased
funding to Malawi by $16.9 million on Monday, approving a total
disbursement of $24.7 million to help the country cope with soaring
fuel and fertilizer prices.

The disbursement to the southern African country is the final
payment by the IMF under a three-year $62.1 million loan program agreed
in 2005.

IMF Deputy Managing Director Takatoshi Kato said the increased
funding was approved because of concerns over Malawi's low levels of
international currency reserves and the threat that posed to financial
stability and food security.

"Rising fuel and fertilizer prices are increasing the downside risk
and adding inflation pressure," Kato said in a statement. "Further
consolidation of government net domestic debt will facilitate the
further accumulation of international reserves without jeopardizing
growth and crowding out the private sector," he added.

The IMF said financial help from donors would help smooth the adjustment.

Muluzi to accomodate 5 relatives in his 120 million Kwacha UK home bought in April 2005

Government contests Muluzi’s UK trip

BY Vincent Phiri

10:12:16 - 10 July 2008



Government
Wednesday contested at the High Court in Blantyre former president
Bakili Muluzi’s trip to South Africa and the United Kingdom on grounds
that there was no adequate information regarding his hosts in the two
countries.



However, the court quashed state arguments and allowed Muluzi to leave the country.



Lawyers for Muluzi applied to the High Court for him to leave the
country on Saturday next week for a medical check up in South Africa
and to proceed to the UK five days later to attend the wedding ceremony
of his nephew, Kalikokha Banda.



Muluzi was put on house arrest in May in connection with treason
charges and was granted bail by the High Court in Blantyre on May 30
and ordered to apply for permission from the court whenever he wants to
leave the country.



However, state lawyer Janet Kayuni asked the court to dismiss Muluzi’s
application to leave the country on grounds that it lacked proper
supporting documents that would authenticate the importance of his trip.



In an application for leave, Muluzi asked the court to allow him to
travel to South Africa on July 19, 2008 to meet a neurosurgeon Forster
for a medical check up at his surgical chambers on July 20, 2008.



The application was supported by a copy of a letter dated June 30, 2008
signed by Muluzi’s consultant neurosurgeon George Mtafu, who is also
leader of UDF in Parliament.



“Muluzi will be in South Africa for about five days and will be
residing at Holiday Inn Hotel in Sandton, Johannesburg after which he
intends to proceed to the UK for wedding preparations for his nephew
Kalikokha Banda who is getting married on 1st August 2008 at Lyndhurst
Park Hotel in that country.



“It is Muluzi’s humble prayer that your Lordship may be pleased to
grant permission to the former president to leave the jurisdiction on
the 19th July 2008 for the Republic of South Africa and the UK
respectively and return by the 25th August 2008,” reads the application
in part, which was attached to a copy of the wedding invitation and a
copy of a letter of confirmation from National Bank of Malawi
certifying that Muluzi maintains an active account in the books of that
commercial bank.



In support of the application, Muluzi submitted to the court a copy of
a letter from Mtafu, who wrote to him that Dr Forster, who operated him
in Stellenbosch, Cape Town, South Africa, has confirmed to see the
former president at his surgical chamber on July 20.



But Kayuni argued before Justice Edward Twea in an open court that it
was not enough to have communication from Mtafu to Muluzi alone, saying
there was need for the court and the state to be furnished with
communication from Dr Foster as well.



“As it stands now, the court has been starved with information from Dr
Foster confirming the said appointment and indeed his proper address in
the Republic of South Africa. Muluzi’s application leaves a lot to be
desired unless he produces the original copy of the said document.



“The state, therefore, contends that since Muluzi’s application was
proceeding merely on affidavit evidence it must not leave gaps in the
facts supporting the same. I respectfully pray to the court to dismiss
the application for lack of proper supporting documents,” reads
Kayuni’s response to Muluzi’s application for leave.



But Twea quashed Kayuni’s argument and ruled in Muluzi’s favour by
allowing him to leave for South Africa and UK respectively and come
back on August 25.



The UDF leader would be accompanied in UK by his sister Esnath Phiri,
brother Friday, brother in law Lloyd Katema, sister in law Edna Muluzi
and grandson Andrew Banda.



Muluzi applied to the British High Commission for visas of his five
relatives and indicated that he would take responsibility for their air
tickets and accommodate them at his residence, 9 Quinton Place,
Cardford, St Peter, BA12 0JU, Wiltshire in the UK, adding that he would
take charge of all other expenses that would be incurred during their
stay in London.

Commonwealth business team to visit Malawi due to sound economic management of current administration

Barely two months after Chinese investors
visited Malawi, a 20-member Commonwealth Business Council (CBC)
delegation is scheduled to visit the country from 15 to 18 July this
year for a series of meetings in the Capital city Lilongwe with the
country’s business sector.

Secretary for Industry and Trade Newby Kumwembe said in an interview
yesterday the purpose of the visit was to explore investment
opportunities in Malawi.

He said the delegation will be interested to venture into bankable
projects in sectors such as agriculture and agro-processing sector,
banking and capital markets, transport and core infrastructure,
information and communication technology (ICT), mining and energy as
well as tourism and aviation.

"Meanwhile, the ministry is calling on all business persons and
firms in Malawi who have bankable projects to register with it or the
Malawi Confederation of Chambers of Commerce and Industry (MCCCI) five
days before the arrival of the delegation," said Kumwembe.

He explained that bankable projects should preferably be worth US$10
million (about K140 million) or more although those above US$5 million
(about K70 million) could also be considered if they are very good.

Recently Finance Minister Goodall Gondwe attributed the interest
shown by investors to sound economic management under President Bingu
wa Mutharika’s government since assuming power in 2004.

Mutharika also echoed this during the 44th Independence Anniversary
Celebrations in Mzuzu on Sunday where he acknowledged that the
country’s economic growth has experienced a complete turn-around.

"The country’s growth rates have increased from an average of 1.5
percent between 2001 and 2005 to an average of eight percent over the
last two years," he said.

Meanwhile, the Chinese business delegation that visited Malawi two
months ago has started giving feedback to the Government of Malawi with
one investor showing commitment to invest in the cotton industry,
according to Kumwembe.

Malawi adopts high-tech banking, leapfrogs many countries

By Rebecca Wanjiku
,
IDG News Service
, 07/08/2008

When Kenya implemented automated banking systems and regulation in 2000, it looked like Malawi would be stuck with ancient
technology.

Fast-forward 10 years: Malawi has leapfrogged most African countries and is second only to South Africa in implementation
of smart cards backed by biometrics technology.

Card users are allowed to authorize their transactions by scanning
their fingerprints, an alternative to less-secure verification by PIN
(personal identification number) or signature, notes a United Nations
Environment Programme study of sustainable banking in Africa.

The system offers a majority of Malawi's population the chance to access banking services, as smart cards offer a secure and
portable repository for cash, says Tryson Kalanda, operations manager at the Bankers Association of Malawi.

"The system has reduced fraud and crime because of the fingerprint identification requirements," Kalanda said.

Moreover, the electronic check clearing system has reduced clearance time to two days.

"The electronic check clearing system uses image truncation
clearing," explained Paul Mbugua, general manager of Fintech, one of
Africa's leading banking-software vendors. "Within a minute the check
is scanned at the teller, and the image is relayed to the head office
and pushed to the online clearing house. Every three hours the image
checks are pushed to respective banks, and clearing is twice daily."

Fintech worked with the banks in Malawi and installed the systems for electronic clearance. Nine out of 10 banks are using
the system, Mbugua noted.

"The technology has improved efficiency in our banks, which has a bearing on economic growth," Kalanda said.

This is in comparison to Kenya's system, where physical checks are
sent by courier; clearance time is four days, and businesspeople are
forced to wait nearly a week before money is available.

Kenya is bogged down by regulatory requirements that stipulate that all checks must be archived, Mbugua said. Previously,
checks had to be photocopied, but the Central Bank of Kenya has begun to accept electronic archives.

Egypt donates fertiliser to Malawi

Egypt donates fertiliser to Malawi

Blantyre, Malawi - Egypt has donated 27.7 metric tonnes of Urea (fertiliser) to Malawi to boost the fertiliser subsidy programme of the country.

Speaking during the hand over ceremony in the capital, Lilongwe, the Egyptian Ambassador to Malawi, Akram Hamd, said his country believed in helping less-privileged African countries to achieve food sufficiency.

"Egypt is a good production country for fertilisers. It is our commitment for all brotherly nations in Africa to come together to assist each other to try to overcome the consequences of high prices of fertilisers and food shortages," Hamd said.

During the 2007/08 farming season, Malawi had a surplus harvest, such that it donated some to Swaziland and Lesotho and sold some to Zimbabwe.

The present regime has introduced a very expensive fertiliser subsidy programme that has seen a significant improvement in the production of maize, the staple food, but the programme has been bedeviled by lack of funds.

"It's our pleasure that we have come to the assistance of Malawi and we hope we can be able to assist Malawi to be able to succeed in the subsidy programme," said Hamd.

Malawi's Deputy Agriculture Minister Frank Mwenefumbo said the Egyptian fertiliser had come at the right time when government was planning to roll-out the 2008/09 fertiliser subsidy programme.

"We are looking for 170, 000 metric tonnes of fertiliser for this year," Mwenefumbo said.

Blantyre - 02/07/2008

Malawi - AfDB Approves US $ 47 Million for National Water Development Programme

2 July 2008
Posted to the web 3 July 2008

Tunis

Efforts by Malawi to achieve sustainable development and poverty reduction received a boost on Wednesday in Tunis, where the Board of Directors of the African Development Bank (AfDB) Group approved a loan and two grants of a combined 29.15 million Units of Accounts (UA*), about US$ 47.24 million, to finance the country's National Water Development Program (NWDP).

The AfDB support - an African Development Fund (ADF) loan of US$ 24.63 million, an ADF grant of US$ 17. 34 million and a Rural Water Supply and Sanitation Initiative (RWSSI) Trust Fund grant of €3.520 million - will be deployed to provide the country with urban and rural water supply as well as promote resource management and capacity building in the water sector.

The objective of the programme is to ensure the sustainable provision of adequate water and sanitation services to the people of Malawi.

The NWDP is being implemented on the basis of need and readiness, poverty level, socio-economic indicators, water supply coverage and geographical proximity, with the Bank Group's intervention focusing on four districts: Lilongwe Rural, Zomba, Mulanje and Machinga. The Bank's financing is targeting 1.21 million deprived rural inhabitants of the four districts. Expected outcomes include improved equity and proximity in the distribution of water points, enhanced economic status of women scheme officers, and a reduction in the death of children under five years.

The programme covers the entire country and aims at 80% coverage for improved water supply and sanitation by 2015. The RWSSI component will benefit 4.45 million rural and district people while the water resources component will benefit the entire population.

The Bank believes in the efficacy of combined water and sanitation projects because of their positive multiplier effects on development. In the case of the NWDP, for instance, the availability of potable water will save women and children the time wasted in fetching water over long distances and collecting wood to boil water for consumption. This will in turn result in a better use of such time in other productive services, which may lead to increased household income, and eventually to improved health and higher living standards, as well as provide more opportunities for girls to go to school. In particular, the rehabilitated piped-water systems will be expected to have a dramatic change in women's and children's use of time. Water system sustainability will be enhanced through the training of over 8,000 people in basic accounting, three-quarters of whom will be women.

The total cost of the NWDP, which is in line with the Malawi Country Strategy Paper, is estimated at UA 147 million. The Bank's contribution represents 19.7% of the costs.

"Malawi could not have received a better gift for its 44th independence anniversary which falls on 6 July", the Executive Director for the country, Ian Bonongwe, said while commending the Board, Management and staff of the Bank for supporting the NWDP. He said Malawi was not likely to achieve the critical Millennium Development Goals on target, emphasizing that the country required sustained support from the Bank Group and other donors.

The Bank Group's operations in Mauritania started in 1969. To date, the cumulative commitments of the Group in the country amount to US$ 914 million in 87 operations.

Govt still optimistic of 7.5% economic growth

The Daily Times - Malawi’s Premier Daily

BY HENRY MCHAZIME
19:53:19 - 02 July 2008

MALAWI’S economy would still grow by 7.5 percent in 2008 despite the political stalemate that has stalled budget discussions, Minister of Economic Planning Ken Lipenga has said.
But some economic analysts have warned continued delays to pass the national financial plan would have a devastating impact on the production of goods and services.
In an interview Tuesday Lipenga said there are several consequences that would come due to the budget delay, the major one being reduced economic growth and activities.

“This delay is bound to reduce our economic growth estimates as it would hold up the resources that the national budget pumps into the economy.

However as a responsible government we are trying to enlighten our colleagues in the opposition to approve the budget to minimise long term effects on the economy,” said Lipenga.

During the budget statement delivered in parliament last month Minister of Finance Goodall Gondwe said this year economic growth was estimated at 7.5 percent.

But Malawi Economic Justice Network (Mejn) said the estimates could not be achieved if parliament continues to delay approving the national budget which is expected to pump in funds in the economy to stimulate production intended for growth.

Mejn Executive Director Andrew Kumbatira said if the current political impasse continues it would lead to reduced economic growth and dent the country’s image to the international community.

“The Minister of Finance cannot spend without approval from parliament and we are in July already the political tension might bring several complications one of them being low economic growth rate than estimated.

“We should understand that 46 percent of this year’s budget is being supported by donors and the unavailability of the budget during the intended time brings challenges to the donor community who have made pledges to provide funding,” said Kumbatira.

But Chief Executive Officer for Society of Accountants in Malawi (Socam) Daniel Dunga said there would be no need to worry on the economic growth estimates if the finance minister is allowed to spend for four months.

“The 7.5 percent economic growth cannot be affected for these four months but it would be worrisome if some of the things in the budget are delayed to be implemented.

If the actual budget is not in place after four months then we should worry as a nation,” said Dunga.

Malawi Confederation of Chambers of Commerce and Industry (MCCCI) president Harrison Kalua said the estimated economic growth could be affected depending on how government prioritises its expenditure within the next four months.

“If the budget is not approved after four months then it would be a problem and it could heavily affect our growth estimates and on the other hand donors would start worrying if the status quo remains for the next two months,” said Kalua.

He added that the current political scenario is part of democracy which is not cheap as it requires several checks and balances involved by all parties.

“Democracy is not cheap and this (political situation) is part of a democratic exercise and it comes with a cost we should not complain much but seek for better ways to resolve it because that what we voted for in 1993,” said Kalua.

July 1 in Malawi’s fiscal calendar marks the beginning of government’s fiscal year and Section 178 of the constitution mandates the Finance Minister to ask parliament for provisional expenditure from the Consolidated Fund if parliament fails to pass the national budget by this day.

The UDF is on the decline, falling faster than it rose to popularity

The Window on Malawi

It is common for politicians to point at the mistakes of others. But two wrongs don’t make a right. Malawi needs solutions that benefit all.



They were bashing President Bingu wa Mutharika for, as they put it, violating the Constitution and laws of Malawi. Former president Bakili Muluzi, who addressed rallies in Blantyre on Sunday, claimed political sainthood and branded Mutharika a law breaker.

Yet, for 45 minutes, Muluzi and his entourage were violating the rights of travellers in Machinjiri. The first meeting addressed by Muluzi was at Chirimba Primary School grounds, away from the main road. But at Luwanda in Machinjiri, the former president’s Land Rover, from where he was speaking, was parked less than five metres from the road. The pick-up that carried a generator for power was on the main road, thus being the first vehicle to block travellers.

Then followed vehicles that were part of the former president’s convoy. They parked right on the road and, from 2:45 pm until 3:30 pm, traffic came to a standstill. Minibus operators and passengers lost time and time is money. Even pedestrians were inconvenienced.

People had to walk for a distance because minibuses could not pass through the crowd and vehicles. "This is really bad," said one woman, a suitcase in her hand. "Why are they blocking the road?" The rest of what she said is unpublishable but it spoke of her anger.

The blocking of the road spoke a lot about hypocrisy: how people see a speck in another’s eye and miss their own log. This is typical of politicians—all politicians from Mutharika to opposition leaders to all of us. Politicians, especially, accuse others without offering national solutions that would benefit all.

Two wrongs do not make a right and this a philosophy the UDF is failing to adopt. Muluzi is not supposed to simply accuse Mutharika and his administration without offering practical solutions that would benefit Malawians. This, too, is what our opposition politicians have failed to do throughout the years.

Muluzi is able to see Mutharika violating human rights but was unable to see his own failure. His team is even against a common understanding about Muluzi’s eligibility to contest next year’s elections. His coalition partners dismissed talk that the Constitution bars their presidential candidate from contesting because he already served his two terms from 1999 to 2004.

This becomes clear from the meetings Muluzi addressed at four places in Blantyre.

Chirimba

Muluzi’s first stop at Chirimba was mainly a meeting of children and women, old women and young girls who had probably been sleeping and had nothing else to do on a Sunday afternoon.

What else would people do after church? It was a meeting of a couple of thousands, just a couple, nothing more than that. Isn’t Muluzi a politician who claims that thousands come to his rallies? Where do those pictures come from?

For months Muluzi has been placing pictures of his rallies in the press, describing them as part of the mammoth crowd. It might be interesting to study the faces and determine whether or not some do not appear on every picture.

His speech was as usual. In fact, it was surprising that the former president, who is also UDF national chairman, who is also UDF presidential candidate in next year’s elections (what titles?) is addressing rallies in different places. His speech was about change, but this is change he is not explaining in detail. What change? As he spoke, eloquently as he does, he engaged the audience by asking questions:

Zinthu zitani? As some women responded zisintha, a small boy, about 10 years, shouted, "Sizitheka". A few people laughed. But it was no laughing matter.

It showed that while there may be hundreds at Muluzi’s rallies, not all come because they support the UDF leader. This is true of all politicians. Some people come just to while away time, to run away from the boredom of small houses that are filled with children and adults—boys and girls, young and old.

The small boy’s response also showed that Muluzi is operating in the past; that he is using slogans that have lost meaning with time.

The change slogan was powerful in 1993, when all Malawians agreed there was need for change. The slogan was powerful not because Muluzi gave it strength but because it reflected the hopes of the majority and the majority in any democracy have power.

Muluzi and the UDF have failed to come up with new ways of engaging people. In 1993, the UDF reflected the wishes of people. Now—and this is a remarkable difference—the party is reflecting its own agenda, to get back into power at every cost. Yet this is not the wish of the majority of Malawians. They have not forgotten the UDF decade.

This, too, is a visible sign that the UDF, as a political product, has failed to manage its life-span. It was born, it grew up and now has reached maturity. In a life-span of a product, the UDF was supposed to rebrand itself, to be involved in a kind of rebirth lest it goes down into decline.

That time was 2004 when the party had Mutharika as its winning candidate. That was when Muluzi was supposed to let the party live beyond himself.

But that is not what the UDF did. Instead, Mutharika, as he says often, was forced to leave and form his own party, the Democratic Progressive (DPP). Now the UDF is on decline, falling faster than it rose to popularity.

The most important aspect of politics is popularity, not power; which is what the UDF did in 1993. Now it wants to get power without getting popular.

Machinjiri

The second stop for Muluzi and his entourage was at Luwanda in Machinjiri where a road was blocked for about one hour.

Maravi Peoples Party (MPP) president Uladi Mussa was the first to speak before Muluzi addressed a crowd of a couple of thousands. Again the crowd was not as big as people are told. Perhaps because these were not platform rallies.

But they were reflective of the situation, anyway. Children started to run after the convoy at Area 1 in Machinjiri. They were barefoot children without any programme on a Sunday afternoon; there were women chatting up each other while selling small things at the market; there were men drinking at pubs at Luwanda; and there were those who came to see the man: the UDF candidate.

"There are 22 reasons Bingu [wa Mutharika] shall lose next year’s election," said Mussa. "But because of time, I will not tell you all."

But he went on to list two reasons: that Mutharika is stingy and does not appreciate what people do to him and, secondly, that he cherishes people’s arrests. Stingy? Is the President supposed to be throwing bank notes on the roads for people to collect? The second accusation is difficult to prove and ends there, almost.

The truth of the matter is that the UDF is failing to sell an ideology to people which is sad because the country needs the UDF just as it needs the Malawi Congress Party (MCP) and other parties. Perhaps the UDF was meant to be a transition party, as one biased analyst says, that after ruling for 10 years it should die and be forgotten, except in history texts.

Bangwe

The first to speak at Bangwe, the final place for the rallies, was Congress for Development (Code) president Ralph Kasambara.

He proclaimed his profession, that he is a lawyer and that he understands Section 83 (3): "The President, the First Vice-President and the Second Vice-President may serve in their respective capacities a maximum of two consecutive terms..."

This, said Kasambara, does not stop Muluzi from contesting next year’s election. He qualified this by saying he is an educated lawyer trained in Malawi and India.

This is not all. Kasambara should have added that he is a brilliant lawyer; that he is the only Malawian to get almost a distinction in the Faculty of Law at Chancellor College. The faculty has never produced a distinction since its establishment in late 1960s. Kasambara got an average 69.5 percent, just about a distinction which starts at 70.

Such a brilliant lawyer has spoken and Malawi must listen: Section 83 (3) does not bar Muluzi from contesting next year.

Other voices

Still it is important to listen to other voices. The relevant authorities have spoken, too, on Section 83 that taking the matter to court is overstretching the Judiciary. The Law Commission is of the view that the framers of the Constitution meant to restrict consecutive presidential terms to a maximum of two.

Some prominent lawyers have said so, too. Everybody else says Section 83 prevents Muluzi from contesting. It is only those in UDF whose reading of Section 83 is different from the rest.

Edge Kanyongolo is perhaps the country’s most respected lawyer. He told the BBC in a recent interview that his reading of Section 83 is that it bars a former president from running for the office again. This is the ordinary reading of the Constitution and it makes sense because the Constitution is a document for people, ordinary people, hence the language is for them.

One trick the UDF has to live with is that judges presiding over cases of constitutional matters consult academics from Chancellor College. This was made clear by former High Court judge Dunstain Mwaungulu in a My Turn column article in defence of his 1997 ruling in a case involving the late Fred Nseula who was accused of crossing the floor in Parliament.

Mwaungulu ruled that Nseula ceased to be an MP when he was sworn in as deputy minister because the law does not allow a person to hold two public offices. This ruling was overturned by the Supreme Court of Appeal which held that a person can be an MP and a Cabinet minister.

Mwaungulu, in the My Turn which he wrote to respond to criticism, said he consulted Chancellor College academics in the Faculty of Law and they agreed with his reading of the law. This shows how much trust the judges have in academics.

Now that Kanyongolo has spoken on Section 83, it is doubtful any judge would want to go against legal views of an internationally acclaimed scholar. This is where the UDF has fallen into a pit, partly because in their quest for power they want to gain favours of law, not people; they want to be popular with the law which does not vote.

The UDF has got its tactics wrong, mostly. The party missed a re-branding opportunity. It is now in a crisis of identity that comes with decline.

All popular products from Coca Cola to Lifebouy go through a rebrand of somekind. This is necessary to keep the products on the market. This is what the MCP did in the 1990s. Dr Hastings Kamuzu Banda brought in Gwanda Chakuamba.

The party’s ideology also changed to adopt multiparty democracy. The party which opposed multiparty vehemently, was able to win more seats in Parliament in 2004 than any other party.

The country did not take time to study why the MCP emerged the strongest after the last elections. One reason—this is just one of the factors—is that the MCP has been rebranding itself over the years with leadership changing from Chakuamba to John Tembo until the former left to form his own party.

The majority of voters now are the youth, those aged between 18 and 35 years. These do not often go to rallies. They have ways of spending time. Parties should, therefore, find ways of courting this group of voters.

Conclusion

The UDF and its allies are in danger of fielding a candidate who might not be allowed to contest in next year’s elections.

This should worry all Malawians because the party needs to take an active role in the elections and the party needs to prepare well, not to be caught unawares at last minute, just about time for elections. This will be sad and the UDF must save Malawi from such political tragedy.

The UDF should concentrate its energies on preparing its own house and not pointing fingers at Mutharika and the DPP.

One way to do that is to offer a concrete plan of its participation in next year’s elections which should come with rebranding. People want to see something new, something never seen before. It pays and that is the reason old brands spend millions to rebrand products.

Does the UDF now see the log in its eye?

Masm reaps from good economic policies

The Window on Malawi

The Medical Aid Society of Malawi (Masm), a member-owned health insurance scheme, said on Friday good economic management in the country contributed to the growth of its membership from 81,000 to 92,000 last year.

Masm deputy board member Wilson Chirwa told the 24th Annual General Meeting of the Society held in Mzuzu on Friday that growth in membership positively affected Masm as, for example, member contributions rose from K876 million to K1.3 billion, representing a 14 percent growth.

Chirwa, a consulting engineer by profession and is retiring after failing to secure re-election into the board, also told the meeting that due to a good operating environment and increased marketing efforts Masm managed to retain its members as well as woo new ones.

He also said member claims totalled K970 million compared to K740 million in 2006 which represents a 31 percent increase.

"Government remained committed to fiscal discipline which together with post harvest drop in food prices and other factors culminated in the reduction of the inflation rate from 9.6 percent at the beginning of the year and 7.5 percent at the year end of the year," said Chirwa.

In his presentation, auditor Shiraz Yusuf from Ernst and Young said apart from sound government economic policies Masm’s good tidings were also a result of transparency and efficiency by Masm management.

For his part, Masm chief executive officer Sydney Chikoti said the increased income contributions from the grown membership will enable Masm buy additional emergency ambulances to enhance good service delivery to member patients.

During the meeting, Masm members also voted into the board a new firm member, Harvey Nyasulu, a farmer and director of Phwezi Foundation for Education in Rumphi.

Nyasulu beat Chirwa by 18 -9 votes.

Chikoti challenged Nyasulu to work out strategies that would increase Masm membership in the Northern Region.

Before starting the day’s proceedings delegates paid tribute to the late Masm board chairman Paul Gundumulani who died in a road accident in Blantyre on May 17 this year.