Editors PickPolitical Index Feature

Parliament and fiscal discipline

When I read in Nation on Sunday of July 20, 2014, I noted a few things which notably showed (i.e. if implemented) that the interim government is not necessarily serious about safeguarding the taxpayer’s money. I am sensing laxity in the fiscal discipline.

The electorate has been taken for a ride. This gesture inter alia will not take this country very far. Neighbouring countries such as Zambia, Mozambique and Tanzania will be noticed getting ahead of us. We will be a material for ridicule in Africa and beyond. The manifestos are adorned with bright colours and hope but the truth about it is essentially mere lip service. The only target for the politicians/contester is to get on the highest seat and thereafter do as one wishes i.e. dump the electorate.

The National Assembly is under fire for proposing increase perks
The National Assembly is under fire for proposing increase perks

After all, powers are vested in them once elected. Why should it be that in their manifestos, political parties will be very particular about issues which concern citizens? The ruling parties, the Cabinet, the National Assembly and top officials, let us be careful and considerate about how we spend public funds and how we toy with people in this case Malawians. People and their welfare is God’s concern. It carries a curse with it if we abuse God’s people. God will always at one point or the other come to the rescue of His people. He did it in Egypt, Babylon and many more. Let us not take people for a ride.

I have noted inter alia few areas where the government’s fiscal discipline is compromised. They project very good points, but it appears that they are fielding a different situation on the ground. I wonder as to whether the projects meant to facelift the economy will ever be implemented or materialise to a greater extent for these points among many which will resurface or are surfacing.

Firstly, as per their manifesto, the government is maintaining a lean Cabinet. The main reason for this is no other than to protect or reduce expenses in this already economically staggering nation. As if this is not enough, we are seeing the same government (as per papers) increasing or intending to escalate the expenses in another form. For example, the salaries of the MPs have or are expected to be increased by 100% i.e. from K714 114 to K1.4m. Their loan eligibility has been increased from MK7m to K24m .This is a sample of a few expenses which might have been noticed.

Increasing the perks may not be bad in itself in view of increasing operational costs. However, we are talking of doubling the figures. In other words, this means we have the same number of MPs doubled. Doubling the number of the MPs coupled with the introduction of the councillors undermines the effect of having a lean Cabinet. In other words we have created another avenue for blowing or increasing the expense bracket. This is noticed, but the worry is can you imagine how much is taking place or will be taking place behind the curtains?

Surely, one is already poised to defend the proposal so that it is approved. Does it mean that the government has more money to spend now and what is the source? Already, the country is not recovered from the Cashgate malady. As already pointed out, we now have the councilors who will also partake of the taxpayer’s money.

Locally, the country is already indebted up to K340bn or so. This is already exerting pressure on the staggering economy. Is the interim government really concerned with implementing and accomplishing remarkable projects which will lead to remarkable growth in the country’s GDP and reduction of inflation already standing at 22.6 by May, 2014? Is the current government there to please a few devout followers? Is it the syndrome of ‘tidzipepetse’ operating from the backyard, but very noticeable? This is questionable in view of creation of expense outlets.

Already, the DPP led government has plans to put all civil servants on Masm and remember the fertiliser, iron sheet and cement subsidies. All this will need money. If we just spend, how will these be realised or for how long. Fiscal indiscipline can prolong projects or even kill the projects.

Also, delay in declaration of the assets is an indicator of lack of goodwill for the nation. The country already faced a problem with this law provision during the previous regime. Declaration of assets puts confidence into the electorate. It indicates that the electorate is serious about the public funds and the assets. Please declare your assets before it is too late. Upon being elected, all politicians take an oath to uphold the Constitution and ensure the welfare of citizens. This to a large extent appears to be mere lip service. When shall we have a government which is caring, accountable and exemplary?

To the civil service, if these apparently small foxes are not addresses or nipped in the bud, it means the country has adequate funds. These same percentages (or even doubled) have to also trickle down to the civil service .The majority of the civil service receive meagre salaries.

Increase their perks by similar percentages also and reduce the tax bracket with a bigger percentage.

Looking at the trends of the governments since we become so-called ‘democratic’, I feel it is hightime that financial decisions for the politicians, presidents, members of Parliament have to be followed meticulously. Generally ,if one is part of the decision maker and at the same time also a benefactor, conflict of interest arises. Let issues to do with the MPs be deliberated by other bodies. In a normal company, the hiking of salaries for the employees are approved by the board. The board will generally have a subjective approach to the same.

In the National Assembly, we see the same arm passing motions for their benefit. For example the provision of crossing the floor, Section 34, 35 and the like. Countrymen, Fellow citizens, the clergy, PAC, donors let us fight for involvement in passing bills which affect the nation and let us do away with all cases where there is conflict of interest. This is so as, from experience, political parties will hardly follow the right track if they are not checked or controlled by forces stronger and independent.

It is a call, let us not just sit, folding our hands when things are going off hand.

–The writer is a banker and a teacher.

 

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