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State capture, corruption driving inequality—Oxfam

 

An Oxfam Malawi report has said solutions to addressing inequality in health, education and income can only be attained if legislation to check corruption and external influence on the government is fully implemented.

The report due to be launched in Lilongwe  today titled ‘Closing the Divide in Malawi: How to reduce inequality and increase prosperity for all’ is a follow up to another produced in 2015 ‘A Dangerous Divide: The state of inequality in Malawi’ which outlined the extent of inequality in the country.

Kubalasa: Address extreme inequality

However, the new report has recommended solutions to addressing key issues, especially political capture and corruption.

The report supports the findings of the forensic audit covering the period 2009 to 2014 which found that five family-owned companies were winning contracts through restricted tenders and single source procurement.

The report indicates that it is only when governments and institutions are accountable that the gap between the minority—who control the government and the poor—who suffer lack of access to social services can be narrowed.

Oxfam Malawi, according to the report, has found that a small wealthy elite has gained influence over the political process due to political party funding mechanisms, giving an example of candidates who turn to the private sector for campaign funding.

“Corruption is one of the most extreme forms of political capture. It is the result of a complete failure of public accountability and weak governance across political and public institutions. It is a deeply regressive tax on the poor who pay twice for corruption, firstly by the bribes they themselves pay are a far greater proportion of their income and secondly it is the poorest who lose out most because of the reduction in public spending,” reads the report in part.

To tackle inequality as a result of political capture and corruption, the report has commended the passing of the Political Parties Act as one way of regulating party funding.

“But this will not lead to substantive change unless the Act’s provisions, including those around transparency of political party finances and regulation of State contributions are fully implemented and the new Political Party Registrar is fully funded and its independence assured,” the report reads.

The report also called for the enforcement of the ban on handouts during elections and sanctions where the provisions are breached.

Oxfam also indicates that political capture and corruption can be reduced with the tabling of the revised Corrupt Practices Act and strengthening independence of the Anti-Corruption Bureau (ACB) and National Audit Office (NAO) by the government not interfering in the hiring and firing of the heads of these institutions

“The government should fully implement Access to Information Act and ensure civil society and media genuinely have the access tools to facilitate public scrutiny and the Assets Declaration law which can assist in promoting transparency and accountability of those in political office,” the report recommends.

To political parties, Oxfam has called on them to commit to a genuine zero-tolerance approach to corruption and strengthen governance and institutions.

Commenting on the report, Malawi Economic Justice Network executive director Dalitso Kubalasa said ‘closing the divide’ was about operationalising policy recommendations to address the differences in the quality of life and standards of living that separate the rich from the poor masses because of extreme inequality.

“From the different sectors, the study brings to the fore the inherent dimensions of inequality, its causes and its consequences as well as unpacking the public policies and processes that are a part of the problem,” he said.

Oxfam is an international body of several organisations networking in more than 90 countries as part of a global movement for change.

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