Field York case: Mpasu ordered bank governor
BY Gedion Munthali, The Daily Times
09:56:47 - 20 July 2007

Former Education Minister Sam Mpasu directed the Reserve Bank of Malawi to release foreign exchange to buy notebooks and pencils from Field York when the country only had reserves for buying essentials like drugs and fuel, a State witness told the Lilongwe Magistrate Court Thursday.

Former Reserve Bank Governor Francis Pelekamoyo said this before Chief Resident Magistrate Chifundo Kachale as he testified in a case where Mpasu is accused of abusing his office as Minister of Education by buying learning materials from Field York at an exorbitant price.

Pelekamoyo, appointed governor in 1989 but whose contract was terminated prematurely by the UDF administration in 1995 with two years to run, said Mpasu issued the directive after he [Pelekamoyo]
had written Mpasu that the bank was not able to go into contract with Field York because of the shortage of forex.

“The directive from Mpasu was verbal. It came through the then Principal Secretary in the education ministry Dr. Sam Safuli. He said that the minister had told him to tell me that payment had to made to
Field York at all costs,” said Pelekamoyo when he was asked by State lawyer Steven Kayuni about the directive.

Pelekamoyo said that in 1994, the Ministry of Education notified the Reserve Bank of Malawi that government wanted to go into contract with Field York in United Kingdom to supply note books and pencils.

The terms were that government should deposit 300,000 British pounds, and then make weekly deposits of 100,000 pounds for a period of about six to seven months.

But at the time, Pelekamoyo said, the country was facing acute shortage of foreign exchange emanating from the fact that there had been an aid embargo on Malawi for the previous 3 years.

This meant that management of foreign exchange had to be made for very essential products only, like fuel and medicines.

“So when I received the request, I wrote the Ministry of Education, telling them that the payment schedule they had agreed with Field York could not be honoured because of shortage of forex,” Pelekamoyo said.

The Reserve Bank, as an alternative, contacted the Finance Company of Malawi which used to procure goods and services for government, to use the company as a guarantor so that Field York could go ahead to supply the required note books and pencils.

But Field York rejected Malawi Finance Company to act as guarantor.

In further discussions with the Reserve Bank, the court was told, Malawi Finance Company offered an alternative that they could procure the notebooks and pencils themselves at one-fourth of the price quoted by Field York and would deliver them earlier than the UK-based company.

According to Pelekamoyo government would have spent 500,000 pounds using the Malawi Finance Company instead of 2 million pounds paid to Field York.

On September 20, 1994, Pelekamoyo wrote Mpasu telling him the banks inability to contract with Field York, and of the alternative offered by the Malawi Finance Company.

Besides that Malawi Finance Company had offered to extend the payment period.

“I did not receive any reply, but a directive three days later to make the payment to Field York. You see, as Central Bank Governor you are a public servant; what you give are proposals and recommendations,” said Pelekamoyo.

After the Mpasu directive was given to him, Pelekamoyo wrote the Managing Director of Field York, with copies to Mpasu, telling him that the Central Bank would deposit 300,000 pounds in the company’s account 10365505 at the Barclays Bank in London. He however asked for negotiations on the payment terms of the weekly payments of 100,000 pounds.

Hearing of the case will continue of August 21 when former Finance Minister Aleke Banda and a police officer who investigated the case are expected to testify.

Tourism starts to take off in Malawi

ALAN HART

MALAWI has been dubbed "the warm heart of Africa" - and it's easy to see why.

Despite their endemic poverty of circumstance, its people are rich in goodwill and seem to have endlessly cheerful dispositions.

It's no wonder that pop star Madonna lost her heart to the little boy she adopted from a Malawi orphanage last year.

There are rumours she is planning to return to adopt a black brother or sister for David.

But you don't need to go that far to help this former British colony of Nyasaland. Tourists can boost the country's economy simply by coming here and spending their money. Admittedly a visit to Malawi is more of an adventure than a holiday.

Apart from the dangerous animals, there are rampant HIV/ AIDS, malaria and snail fever to consider. But with sensible precautions you can stay safe while you take a walk on the wild side.

After flying into the Malawian capital of Lilongwe, I drove for 90 minutes to the Sunbird Hotel at Livingstonia Beach in Senga Bay, Salima (www.sunbirdmalawi.com).

This luxury hotel is on the shore of Lake Malawi, which is the majestic centrepiece of the Great East African Rift Valley. Nearly 10,000 square miles in area, it is the third largest lake on the continent. At the Sunbird you can enjoy a variety of water sports or just relax by the pool while you plan the rest of your tour.

Because of pressure of time, I had already opted to skip the chance of viewing elephant, rhino, lion, leopard, giraffe, antelope and buffalo in game reserves in the south of the country.

Instead, I chose to study the marine and bird life on the lake in the north-east.

And before anyone accuses me of wimping out, let me state that while swimming, snorkelling and bathing in Lake Malawi, I was sharing it with at least one seven-foot crocodile.

It takes a special man to give clients the confidence to follow his example and take to the waters. That man is Howard Massey-Hicks, whose family history would provide material for a Wilbur Smith novel.

Howard's ancestors, Lady Hicks and a carpenter called Massey, caused a scandal when they fell in love and emigrated from Ireland to South Africa at the start of the 19th century.

Howard emigrated to Malawi in 1992. Six years ago he persuaded wife Michelle to help him live his dream when he designed his catamaran yacht Mafusa and launched Danforth Yachting at Cape Maclear (www.danforthyachting.com).

From the comfort of his ten-berth yacht I explored the lake, while crewman Victor dealt with my laundry and chef Nwadie prepared mouth-watering dishes from his galley. But first, I took a trip to the Nyika crocodile farm at Salima where 14,000 of these sinister creatures are converted annually into handbags, wallets and shoes.

Farmer Obert Mtalimanja (did a croc chew his "R", I wondered) showed us his stock of young crocs.

Then he introduced us to his adult breeding animals, including a 40-year-old male which was 13-feet long.

Back on board Mufasa, we had a chance to visit the various lodges which have been built to cater for the area's embryonic tourist industry.

First port of call was the Nkwichi Lodge, just over the border in Mozambique. To reach it we had to have our papers stamped by a barefoot Malawi immigration official wearing shorts and a Maradona soccer shirt.

On the Mozambique side of the lake, passport controllers had thoughtfully placed a tray for tips marked "Thank You" in three different languages.

Here a Down's Syndrome boy called Ben "adopted" me by gently holding my hand and proudly showing me off to his pals.

Nkwichi Lodge (www.mandawilderness.org) is reached through its naturally-hidden private bay and has access to three miles of rocky shoreline, dense bush and sandy beach.

Seven spacious wooden chalets made from local materials blend into the forest. My room boasted a four-poster bed, had an outside toilet, open-air bath and shower, and its own private beach.

It also has its own tribe of vervet monkeys which live on-site and a group of baboons that jabber away from the depths of the forest.

Profits are ploughed back into the Manda Wilderness Project, a local conservation scheme which has provided schools, water sanitation and a maternity hospital for nearby villagers.

Although Likoma Island is only six miles off the coast of Mozambique, it belongs to Malawi and its star attraction, Kaya Mawa Lodge, has been voted one of the world's ten most romantic destinations by Condé Nast magazine (www.kayamawa.com).

Four honeymoon couples were staying in the nine thatch, wood and stone cottages when I visited.

One of the chalets is called Honeymoon Island and is reached by a wooden suspension bridge. It is shaded by a giant mahogany tree which is home to a resident pair of yellow-billed kites from October to January.

Likoma Island also has a cathedral, St Peter's, built in 1903, to serve its 7000 population. Its first dean was a Glaswegian called William Pascal Johnson, and inside the building is a plaque to Charles Frederick Mackenzie, first missionarybishop to the tribes, who was born in Scotland in 1825 and died of fever near Chiromo in 1862.

It was while we were on our way from Nkwichi to Kaya Mawa, admiring a pair of fish eagles which were putting on an impressive aeronautical display, that we saw a seven-foot long croc basking on a rock some 50 yards from the Mozambique shore. It was a graphic reminder that this magnificent landscape with its spectacular sights and stunning sunsets, is anything but tame.

Like the other lakeside lodges mentioned here, Makuzi Beach Lodge is a popular chill-out zone for tourists coming back from hectic safari schedules elsewhere (www.makuzibeach.com).

After a candlelit dinner, yoga teacher Lara Pollard helps guests clear away the cobwebs and any hangovers on the beach next morning.

Nearby is Bandawe Mission, established in 1881 by Scottish Presbyterians, many of whom died from tropical diseases and are buried in the local cemetery.

One of the plots, where Alfred W Roby Fletcher (1868-1898) lies, has a memorial "erected by Edinburgh schoolboys."

Other graves, containing the bodies of Lizzie Ann McMinn, George Swinny, Sophia Aitken, the Rev Alexander Bain, James Sutherland and James Fraser, give the clearest indication of the influence of Scottish missionaries in the area.

It was also apparent in the Christian names of current village chief Alex Banda, and the mission's pastor, Rev Elliot Ngwira, that the legacy continues.

Aussie couple John and Bronnie have only been running the Chintheche Inn nearby since spring this year, but John has already started using his kitchen garden to supplement his cordon bleu cooking.

And in October they will host their own version of Woodstock or Glastonbury with the Lake of Stars Music Festival, featuring British DJs and top Malawian bands (www.wilderness-safaris.com).

My last day in Malawi was spent at the Luwawa Forest Lodge created 5200 feet above sea level by Yorkshireman George Wardlow (www.luwawaforestlodge.com).

At the southern end of a 121,000 square mile forest of pines, and overlooking a dam, the lodge has been turned into an outdoor adventure centre, offering a vast range of sporting activities.

But the highlight of my stay was a visit to the Donija Village, where blind headman Vincent Madings Nkoma organised a tour of the farms and thatched huts.

He also explained the dowry system where go-betweens arrange a bride's price once she has consented to a match.

The day ended with a vigorous display of traditonal singing and dancing, hugs all round and a vote of thanks to "Bwana Georgie."

Travel facts

Alan Hart went with Southern Africa Travel, who provide tailor-made trips to Malawi. For further info click on www.southernafricatravel.co.uk, email enquiries@satravel.co.uk or ring 01483-428162.

Kenya Airways fly six times a week from London Heathrow to Lilongwe via Nairobi. Fares start from £446 return.

For further info click on www.kenya-airways.com or ring 01784-888222.

For further info on Malawi click on www.malawitourism.com or ring 0115-982-1903

Bill Clinton to visit Malawi for the second time in the past one year

14 July 2007 - PANA. Former US President Bill Clinton is expected to arrive in Johannesburg Wednesday at the start of an African tour that will also take him to Malawi, Zambia and Tanzania to oversee projects under his Clinton Foundation, according to a media advisory released here Saturday by the Clinton Foundation ahead of the tour.
Clinton's first stop will be Johannesburg, South Africa, where he will, among other engagements, meet with President Thabo Mbeki Thursday and address the Nelson Mandela Foundation.

Later in the day, he will meet with Johannesburg city officials, who are implementing the Clinton Climate Initiative's Energy Efficiency Building Retrofit Programme.
On Friday, Clinton leaves South Africa for Malawi, where he will hold a 30-minute closed-door discussion with President Bingu wa Mutharika in the capital, Lilongwe, before flying by helicopter to the southern district of Neno.

"President Clinton and his entourage will visit the construction site of a rural hospital established by the Clinton-Hunter Development Initiative and Partners in Health, where he will meet with rural farmers who are part of the Clinton-Hunter Development Initiative's Sustainable Agriculture project," said the advisory.
The 42nd American President is scheduled to leave Malawi for Lusaka, Zambia, later Friday afternoon.

While In Zambia, Clinton is scheduled to attend a youth outreach soccer tournament hosted by local leaders to appeal to young people in Zambia about the importance of HIV/AIDS testing. From Zambia, Clinton will leave for Dar es Salaam, Tanzania, Sunday, from where he will return to the US Tuesday. This is Clinton's second visit to Africa in the past one year.

Last July, Clinton, joined by the Scottish philanthropist Tom Hunter - with whom he has joined hands for the African cause - also made a flying visit to Malawi, where the two unveiled plans to initiate rural growth centres in Malawi.
William Jefferson Clinton, 61, is largely viewed as the 'first black president' of America because of his closeness to causes of African Americans and his interest in developing Africa.

Soon after stepping down as president, Clinton - the first Democratic President since Franklin Delano Roosevelt to win a second term of office - founded the Clinton Foundation, whose main mission is to strengthen the capacity of people in the United States and throughout the world to meet the challenges of global interdependence.

Investor confidence keeps kwacha strong
BY GERALD NAMWAZA
09:54:36 - 11 July 2007

OOZING confidence in the current economic fundamentals has helped to stabilise the kwacha against major foreign currencies, a local business captain has said.

This has torn apart theories that government through Reserve Bank of Malawi (RBM) was manipulating the local currency against foreign currencies to suit its social political agenda.

But with interest rate down to 20 per cent from 30 percent in 2004, inflation in single digit and the kwacha is stable, analysts say investors are all smiling.

Malawi Confederation of Chambers of Commerce and Industry (MCCCI) yesterday attributed the stability to positive attitude prevailing in the business community than booming foreign reserves.

The kwacha has stood its ground against the US$ and Tuesday was sold at 141 to the greenback in most banks, 143 on the parallel market was just above 145 on the black market.

“There is a lot of psychology involved in exchange rate, when people see that economic fundamentals are improving, exchange rate can stabilise---this is what is happening in Malawi,” said Chancellor Kaferapanjira MCCCI chief executive.

He said that proceeds from tobacco, although slightly higher than last year, would not cushion the currency.

“The quantity of the crop is 30 per cent lower than last year and we wouldn’t expect a lot from the traditional forex earner, but donor confidence and a slow down on demand for foreign currency is cushioning the currency,” Kaferapanjira said.

He said when the private sector is not sure about the economy it hoards foreign currency and this causes unnecessary shortages on the market.

“This is not the case now because each time you go to the bank to ask for foreign currency you get it,” Kaferapanjira said.

Minutes of Reserve Bank of Malawi (RBM) 63rd monetary committee says at the end of March this year gross official reserves increased to US$121.8 million from US$91.4 million, representing 1.9 months of import cover.

RBM attributed the increase to purchases of foreign exchange from banks, institutions like Limbe Leaf and inflows from the British Department for International Development (DFID).

The central bank says foreign currency denominated accounts (FCDAs) increased to US$106.1 million at close of March 2007 due to tobacco pre-shipment financing.

When presenting this year’s budget Finance Minister Goodall Gondwe said the kwacha depreciation was contained at less than 10 per cent for the last two years.

“Some have contested that the rate has been artificially kept down and that were we to adopt a policy of a truly flexible exchange rate, the depreciation would have been larger,” Gondwe said.

He argued that the fact that rates at foreign exchange bureaux had stabilised despite their freedom to move rates, was a sign that there was no artificial repression of the rate.

Uranium mining upgrades Malawi
BY GERALD NAMWAZA
13:56:51 - 13 July 2007


FINANCE Minister Goodall Gondwe may have drawn one of the best budgets in modern times but the small package allocated to infrastructure has undermined the good intentions of the paper.

Malawi Confederation of Chambers of Commerce and Industry (MCCCI) said yesterday, at K14.8 billion, the minister had allocated only a quarter of what was expected on infrastructure.

“This is an increase but we were expecting more on infrastructure as one way of oiling the private sector,” said Chancellor Kaferapanjira, MCCCI chief executive during the post-budget meeting.

He said although the figure was small, it was still an indication that the current government was focusing on production with emphasis on private sector-led growth.

“It is clear that we are changing from the past regimes where more emphasis was on consumption, so the departure from that syndrome is encouraging,” Kaferapanjira said.

The money in the infrastructure envelope would go towards the building of roads, communications networks, power supply--sectors that are crucial to private sector-led growth.

In the budget, Gondwe said government plans to spend about K11.6 billion on building and maintaining roads, an increase of 44 per cent higher on last year’s allocation.

In addition, the minister said government would also invest more in the energy sector to turn around and ensure that there is adequate power to drive the economy.

Members at the meeting expressed disappointment at the current performance of Electricity Supply Corporation of Malawi (Escom) saying constant blackouts were making the cost of doing business extremely high.