PP embraces DPP’s abuses, BT City boss’ house turned into party arena

In a case of “the more things change, the more they remain the same”, the People’s Party (PP) has joined the former ruling Democratic Progressive Party (DPP) in abusing city council property.

Like the DPP before it, Malawi President Joyce Banda’s PP has picked for its offices—of all the houses and buildings in Blantyre—what is supposed to be the official residence of Blantyre City Council (BCC) chief executive at rentals that are half the market rate.

Senior managers at BCC confided in The Nation that PP approached them that they want the house, adding that given that they are a ruling party, city officials had no choice but to give them the house at below market rentals. PP has denied exerting pressure on the city.

The brick-fenced four-bedroom house with servants’ quarters for two in the low density residential area of Sunnyside on plot Number BW 262 was first occupied by DPP in 2009 for use as its Southern Region headquarters.

According to documentation we have seen, DPP got the house on April 1 2009 at an agreed monthly rental of K30 000 (about $75) at a time similar houses in the upmarket suburb, where high-income earners live, fetched around K100 000 (about $250) on average.

The rent the council offered to DPP at the time was also similar to a two-bedroom house in Blantyre’s Nkolokosa Township, a residential area largely populated by middle-income earners.

But even at such a discounted rent, DPP was not paying rentals to the city and was only forced to do so after it was out of government, correspondence show.

Reads one of the letters between the council and DPP dated April 27 2010: “Our records indicate that a contract was signed between this Assembly and the DPP on 1st April 2009 effecting the use of the Assembly House on Plot Number BW 262 as the Democratic Progressive Party’s Regional Office.”

Adds the letter addressed to DPP regional governor for the South signed by the then BCC chief executive, the late Leicester Bandawe: “It is stipulated in the said contract that rent shall be charged at the rate of K30 000.00 per month. Presently, the records in our possession show that no payment has been made since the contract was signed and the same has accumulated to K390 000.00 [about $975].”

No payment of rentals

Well-placed sources in the council confided that DPP only paid the rental money in instalments after the death of former president Bingu wa Mutharika that ended the party’s grip on power and influence over public institutions.

Apparently, the party vacated the house soon after the death of its leader, leaving city officials free to enforce payment.

Last Wednesday, DPP publicity secretary Nicholas Dausi, while refusing to comment on whether the party used its influence as a ruling party to secure the house and stay for three years without paying the rent, claimed that the council evicted them.

“We were given a specific time frame to vacate the building, so it was not a voluntary eviction. We decided to leave as asked because we thought it was good to go with our dignity,” he said.

Dausi said it was laughable and surprising that PP also wants to occupy the same property that was used as DPP offices, saying that amounts to political moral decay.

This was not the only city property that DPP exploited while in power.

In December 2010, The Nation reported that the then ruling party had turned the Mayor’s Parlour at Lilongwe City Council’s civic offices into an office for its then secretary general Bintony Kutsaila.

With PP now in power, it too is mimicking the footsteps of a political grouping that was home to most of the people currently running PP, including President Banda who was a long time Cabinet minister in the DPP administration and later—after the May 2009 elections—vice-president, having shared a presidential ticket with the late Mutharika.

PP abuses

The Nation

understands that the ruling PP and BCC have entered into a K75 000 (about $187) per month lease agreement—against the prevailing market rent of K150 000 (about $375) for similar houses in the area—for the same BCC house in Sunnyside.

Apparently, PP will not pay the rent in cash. Instead, the two parties have agreed that PP will meet the cost of renovating the house and the rent will be recovered from the expenditure it would incur.

An assessment report by the city’s building department that we have seen shows that over K4 million (about $10 000) was required to renovate the property.

According to the report, the main house needs K644 512 (about $1 611) to replace stolen electrical materials whereas K114 460 (about $286) was needed to replace similar materials at the servant quarters.

The report further says K655 553.04 (about $1 638) was needed for carpentry items that were vandalised and that plate glass, mirror glass and plumbing materials stolen from the structure would demand K2 096 161.96 (about $5 240), all of which leads to a tax inclusive grand total of K4 089 950.36 (about $10 224)

Another BCC source said the agreement between PP and the council was that the renovations would be done by the PP and the cost would be deducted from the rental.

“In short, what the PP is saying is that they will do the renovations on behalf of the council and that the party will not be paying rent for the period covering the K4 million. Therefore, for the next four years or so, the party will not pay rent because it will be assumed that it spent over K4 million renovating the house,” said the source.

A resident in the same area said the prevailing market rent for houses of the same size as the one being rented by the ruling party is K150 000 (about $375) per month.

Sources at BCC said the city’s chief executive officer Ted Nandolo is on a clean wage contract and that he lives in a personal house.

CEO’s house

A report from the director of administration Alfred Chanza to management presented on August 2 2011 confirms that Nandolo has no institutional house.

Reads the report in part: “Management is hereby informed that an application has been received from Mr Ted Nandolo, the chief executive for the city council, to develop a residential house. Mr Nandolo is not housed by the council; hence, has decided to apply for a plot to build his house.”

Further information we have sourced also indicates that the council pays K150 000 per month to rent houses for some of its senior managers, yet it has an unoccupied house that is now being rented at half the rent it pays for its managers’ homes.

An inter-departmental memo dated June 22 2012 from Chanza, writing on behalf of the CEO to the director of engineering services, proposes the rehabilitation of the house in Sunnyside after DPP had vacated it so that the CEO should occupy it.

Reads the memo: “As you are aware, the council’s chief executive officer [Mr Emmanuel Ted Nandolo] is living in a leased house [of course his own house] because the designated house for the chief executive officer was being rented to the Democratic Progressive Party (DPP). Meanwhile, we are spending K150 000.00 for the leased house in compliance with Regulations 5.1.2 and 5.1.4 of the council’s Terms and Conditions of Service.

“Since the designated house for the chief executive officer has now been vacated by the DPP, you are being advised to assess the house so that it can be rehabilitated for the chief executive officer to occupy as soon as the rehabilitations are over.”

As it turns out, PP has jumped on the house.

BCC public relations manager Lunzana Khanga said last Friday the house was offered to DPP at the minimum rental charge of K30 000 because it was in a vandalised state and the party had promised to renovate the structure.

She said before the house was occupied by the political party, it was rented by National Electricity Council of Malawi because the city council was implementing house ownership scheme which enabled CEOs to buy their own houses.

On PP now moving into the house, Khanga said the party also approached the council for office space and that the house has been offered and an agreement was yet to be finalised.

She said at the moment, it was not decided who would be responsible for the over K4 million renovations that are required on the house and that the tenancy agreement could proceed or fall off.

PP deputy publicity secretary Ken Msonda also confirmed applying to the council and Malawi Housing Corporation (MHC) for a house to use as offices but denied exerting pressure as a ruling party.

Said Msonda: “It is true that we applied, but we didn’t specify that we want that house. We just said should there be any vacant house, we want to occupy as offices and we are yet to decide whether they will be regional, district or indeed national headquarters offices.”

Some BCC senior officials said it would be naive to expect the council to turn down requests from ruling parties for office space.

Rights activist Billy Mayaya said in an interview on Wednesday the council should explain why it was offering the house to ruling parties at rentals that are well below the market price.

“It is only proper to reiterate at this point the need for transparency and accountability,” said Mayaya.

FAST FACTS

—During its rule, DPP was charged the monthly rental of K30 000 at the time when similar houses were fetching about K100 000.

—PP has entered into a lease agreement with the Blantyre City Council (BCC) to pay rental of K75 000 per month.

—Current BCC chief executive officer Ted

—Nandolo lives in a personal house.