Vice-president Saulos Chilima has said that government will not go into the habit of bailouts of institutions that fail to perform.
Chilima was updating the nation on his Facebook page following his meeting with five Parastatals including Malawi Posts Corporation (MPC), Malawi Broadcasting Corporation (MBC) and the Malawi Communications Regulatory Authority (Macra) today.
Chilima said corporations must make money and meet their statutory obligations without fail.
He said, for example, it was worrying to note that MPC has not made profits since the unbundling 20 years ago, but instead it has accumulated debts amounting to K1.6 billion in utility bills and statutory obligations as well as K6.3 billion in taxes, Macra levy and licences.
“An institution that is commercial in nature must make money. And this is what we want to do with MPC,” said Chilima.
On MBC, the Vice-President said the corporation’s three – year turnaround strategy in programming, infrastructure, investment and commercialisation have the potential to turn the broadcaster into an efficient, effective and professional institution that is admired and supported by all Malawians.
However, he said despite its commercial viability, MBC too has huge liabilities and wants a bailout on its K4.9 billion tax arrears and K1.2 billion in pension arrears.
“I have reiterated that there will be no bailout because a closer look at MBC shows they have the potential to get out of the situation. MBC must run as a business while strengthening its social obligations,” he said.
Chilima further expressed disappointment with the way Macra has been operating and conducting itself over the years.
He said:” I have told the management team that they are a regulator of communications and not politics. I have warned management to immediately de-politicize.
Minister of Information Gospel Kazako who was part of the meeting also weighed in to rebuke the wastage of financial resources at the institution.
The Minister has since vowed to move earth and mountain to ensure that Macra is sanitized through a process that will include replacement of staff who were caught in the web of toxic politics at the expense of serving Malawians.