Donors propose new allowance rates
Malawi’s development partners have proposed new rates for allowances and transport reimbursements for donor-funded events and meetings to reduce expenditure due to the delay in donor funding as a result of cashgate.
In a press statement issued on Wednesday by the European Union (EU) delegation in Malawi on behalf of the donors, measures have been put in place to limit direct cash handouts and in response to growing demands from their taxpayers to maximise impact of their support to Malawi.
The rates and principles are expected to come into effect on December 1 this year. The last review was conducted in October 2011.
According to the guidelines for donor-funded events and missions in Malawi, donor-funded events would have to be held in the area where the majority of participants reside, but whenever possible, the organisers would have to use their own or government or donor venues or meeting rooms to minimise costs,” the new guidelines state.
The guidelines also indicate that there would be no more allowances for workshops, trainings or seminars and the accommodation limit which the organisers would pay directly to the hotel would no longer exceed K35 000 (about $87.50) per night.
There’s a slight increase on allowances to be paid out where accommodation and meals are not provided in cities and towns from K11 500 (about $28.75) to K12 800 (about $32) but it has remained stagnant for other areas at K6 000 (about $15) following the last revision in October 2011.
Reacting to the development, Council for Non-Governmental Organisations in Malawi (Congoma) chairperson Voice Mhone said he was aware of the changes although he bemoaned that the timing would be deemed reactionary to the events at Capital Hill.
“With the prevailing economic situation, we expect the cost of doing business to go up, bank interests will go up and with such an increase in commodity prices will go up, including fuel and services. Such a slight adjustment might jeopardise donor-funded activities,” Mhone said.
