Malawi lawmakers pass K36bn floods loan

Malawi Parliament on Tuesday authorised government to obtain a loan from the World Bank amounting to K36 billion (about $80 million) as part of the floods emergency recovery programme.
Malawi Congress Party (MCP) and People’s Party (PP) attempted to thwart government’s move to have the Malawi Floods Emergency Recovery Loan Authorisation Bill passed over alleged lack of details.
In his statement during the Bill’s second reading, Minister of Finance, Economic Planning and Development Goodall Gondwe said there are resources such as maize that need to be bought immediately, making it imperative for the House to pass the Bill with urgency.
However, in his response, MCP spokesperson on finance Kaphamtengo Yona asked the minister to explain in detail how the money will be used.

Said Yona: “This is a program that was planned, we need the minister to clearly indicate specific functions attached to specific amounts. It will also do us good if government provided a report detailing NGOs and individuals who donated to the flood situation including the specific amounts each donated.”
He then asked the minister to refer the Bill back to the Budget and Finance Committee for clarity.
Lilongwe Mapuyu South MP Joseph Njobvuyalema MCP disclosed that he had information some well wishers who donated money towards the flood disaster were complaining that they do not know how their monies were spent.
Said Njobvuyalema: “ We want to know where and how these monies were used. I also wonder why in the Bill the minister has allocated some money for training disaster management personnel when we have a fully fledged department of disaster management?”
Member of Parliament for Mangochi Monkey Bay Ralph Jooma PP also asked the minister to state specific districts and traditional authorities which the money will benefit.
Said Jooma: “We hear some money will be used to rehabilitate roads and bridges washed away by the floods. Could the minister include, in his memorandum specific bridges and roads to help us track whether or not they were indeed rehabilitated.”
But Leader of the House Francis Kasaila described the opposition’s reaction as a gimmick to frustrate the Bill.
Said Kasaila: “Government made an undertaking to be transparent in how it handles these monies and the vice president even made a statement that all collections will be published in the papers. The minister of finance has provided enough information.”
Government seeks to access a K32 billion loan from World Bank to go towards post-floods disaster recovery costs.
The loan will be repaid in a period of 40 years with a grace period of ten years and it has a service fee of 0.75% per annum.