Malawi risks refunding K50bn to IMF for DPP Govt’s financial dishonesty
Malawian people are on the verge of paying back huge sums of money to an international lending organisation for fabricating figures and lying on economic situation and now it is time to pay the price for the erstwhile regime.
The ousted Democratic Progressive Party (DPP) has given Malawians yet another ‘middle finger’ and this time around, the party’s love for clandestine under-dealings and deceit, risks costing innocent and unsuspecting Malawian taxpayers some $58 million (about K50 billion) in a potential refund to the now vexed global lender, the International Monetary Fund (IMF).
Nyasa Times sources at the Reserve Bank of Malawi (RBM) have confided in us that as a way of painting a rosy picture to the Fund, through the previous IMF-supported program, the Extended Credit Facility (ECF), the DPP government was sugar coating misreporting the country’s foreign exchange position figures just to portray to the IMF that the country is performing well ‘economically.’
Said our source: “It is a very sensitive issue and in simple terms, the bank was lying to the IMF books in its reporting, more especially about forex reserves.
“It is a serious scandal with the IMF. Apapa la fote lakwana [the genuine truth has now been unearthed to Malawians.”
He added: “The way forward about this issue is twofold, either we will refund an estimated $58 million to the fund or sweat by convincing the Fund about possible remedial measures to correct the situation and after coming up with the remedial measures, the Fund takes the matter to its Board of Directors for consideration and It’s not as easy as most Malawians perceive this matter.”
We gather that the previous government misreported several times on Gross Reserve Assets (GRA) and Net International Reserves (NIR), for the period 2018 to 2019 and the IMF has just discovered such mischief.
Suspicious with such DPP naughtiness, the IMF has over the past year been reluctant to resume its program, ECF that is always key in entrenching macroeconomic stability, preserve debt sustainability, and advance governance reforms among countries with protracted Balance of Payments (BoP) challenges.
BoP is simply a record of transactions by a particular country with the rest of the world and is an important economic indicator.
On Monday evening, IMF did not hide its frustration and rage over DPP’s concealed and nauseating conduct.
IMF’s African Department Abebe Aemro Selassie spoke plainly, telling reporters during a press briefing in Lilongwe that what DPP did was a breach of an oath of the fund.
“The IMF takes misreporting cases seriously, and in this regard, I appreciated the authorities’ efforts in delivering on the corrective actions,” said Selassie.
Selassie, therefore, described the misreporting scandal as ‘legacy issue’, which the Tonse government is currently resolving with the IMF before the proposal for the new ECF Programme is presented to the IMF Board.
“I, therefore, commend Tonse government on their on-going efforts to combat corruption and enhance transparency and accountability in the use of public resources.
“We also exchanged views on the concerted efforts that are being taken to tackle the Covid-19 pandemic, which has caused hardship to Malawians.”
Selassie, who also met President Lazarus Chakwera yesterday morning, also discussed at length the reform options with the Malawi leader that are required to address the country’s challenging macroeconomic situation, owing to DPP’s misfiring economic policies.
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Malawi Government needs to expedite proper resolution of this matter. Otherwise, like it or not, 2022 is going to be a rough year.
Whatever we read or hear from media the truth remains unknown anyway if it’s true arrest all of them who were dealing this figures simple and sieze there properties and auction them to recover the money
In monetary matters things make sense when discussions are backed by figures. If you give a financial report like one is giving a brief on a subject outside money matters, those listening will take it with a pinch of salt. What has been reported and summarised lacks in many ways. If Malawi was not performing economically, where did the current government get money which it engaged in all those travels by the executive abroad? If what is reported is true, is IMF not ashamed of themselves to come from nowhere to audit money which they vehemently refused to assist the… Read more »
kafamveka anali mommo.
lelo gudegude pretending to b holy.
Let those who were doing this mischief face the law.
DPP was good at cooking figures
Fosek
The one who sugar coated the accounts must face the arm of the Law. Apite ku Maula prison
DPP isadzabwerenso
Arrest all DPP senior members and also who got tenders from them and seize all properties and auction and pay imf and send all this pigs to jail enough id enough
Government it’s your responsible deal with it hand over government is handover everything why you are complaining those are government issues deal with it.