Govt may burn K300 million on Mayors new Prados

City Councils are broke. That is why Malawians have a multimillion-kwacha reason to fear for public coffers as talks are underway for the central government to buy ‘ministerial vehicles’ for mayors.

Minister of Local Government and Rural Development Tracizio Gowelo told newly elected councillors at a recent meeting with them in Mzuzu that he is talking to the Ministry of Finance to buy top-of-the-range “Toyota Prados like mine” for ward councillors heading city, town and district councils.

The introductory phase—targeting city mayors—could cost government up to K300 million ($650 000).

Such spending has prompted an economic commentator to question the pertinence of the spending spree given the country’s prevailing public finance problems worsened by Cashgate, its resultant budgetary aid cuts and generally weak economic performance.

It may also be seen as a strange policy application since councils are decentralised entities that should provide for their council fathers, not the central government.

Addressing the councillors in Mzuzu on October 6 this year, Gowelo said: “The negotiations with [Treasury] are at an advanced stage and we are planning to begin with four cars, catering for mayors of Lilongwe, Blantyre, Mzuzu and Zomba. Afterwards, we will focus on the 28 districts.

“If it goes according to plan, you will get Toyota Prados like mine.” The minister uses a Toyota Land Cruiser Prado VXL.

For weeks, The Nation run the rule over the ambitious project and reliable sources revealed that the fuel-guzzling machines cost K73.148 million ($160 000) each at Toyota Malawi.

The start of the galore, which targets mayors who are procedurally entitled to a car from their councils, could see Capital Hill spending K292.598 million (about $636 000) on the first four vehicles.

The cost could swell to nearly K2 billion (about $4.3m) when the galore is scaled-up to Mangochi Town, municipalities of Luchenza and Kasungu as well as the 28 district councils countrywide.

In a follow-up interview yesterday, Gowelo refused to discuss the nitty-gritty of the proposed transaction, terming it an “internal affair not meant for public consumption”.

Yet he said: “Mayors are entitled to a vehicle and my ministry has the responsibility to provide for them. Where we will get the money or the type of the car are operational issues.”

When asked in a separate interview yesterday whether it would be prudent for Treasury to pay for council duties, Ministry of Finance spokesperson Nations Msowoya asked for more time to check whether the proposed expenditure is budgeted for.

However, he indicated the hinted transaction “may be duplication of expenditure” even though “all the money will come from one source—government”.

Conditions of Service for Councils, approved by the Office of the President and Cabinet (OPC) this year, reads: “Mayors shall be entitled to a chauffeur-driven car provided by the City Council,” a specific that puts into question the Local Government Ministry’s move to take over the responsibility of buying vehicles for the ward leaders.

The mayor is also entitled to a monthly fuel allocation of 350 litres or roughly K280 000 (about $608) usable for official duties within the council.

Currently, Mzuzu Mayor William Mkandawire uses a double-cabin Nissan Hardbody 4×4 while Lilongwe City Council uses a hired vehicle.

The council fathers want their mother ministry to take over the responsibility of providing cars for council headships since most cities, towns and districts are already struggling to provide citizens with basic services.

And Gowelo, at the meeting with the councillors, said buying the top-of-the-range vehicles will save the likes of Lilongwe City Council from hiring cars, which is “much more expensive than just buying one” by installments.

But Malawi Economic Justice Network (Mejn) executive director Dalitso Kubalasa termed the proposed transaction “interesting development” given the prevailing fiscal crisis engulfing Capital Hill. Kubalasa did, however, concede that office entitlements may have to be provided.

“The bottom line, of course, remains whether it will be making much ‘economic sense’ or indeed be cost-effective enough and worth the while, considering the current tough economic situation against competing needs,” he said.

Earlier this month, councillors in the Northern Region tore apart government plans to offer them K1 million loans strictly for motorcycles, arguing that the bikes are a harsh mode of transport.