- Malawi is now facing sanctions from its regional partners of the Southern Africa Development Community (SADC) after failing to pay its member state contributions. 'The Chronicle' found that the Malawian government even had failed to honour its membership obligations as the country held the presidency of the grouping.
Malawian President Bakili Muluzi, even during the time that he was Chairperson of the 15 member SADC grouping failed to honour Malawi¹s obligation on membership to that body, it has been discovered. As a result, Malawi has been suspended from taking an active role in SADC because the country's United Democratic Front (UDF) government owes the regional grouping millions of kwacha in unpaid membership fees.
A letter dated 2 April 2004 from the SADC Secretariat in Gaborone, Botswana, to the Malawi government and leaked to 'The Chronicle' reflects that Malawi owes SADC nearly kwacha 150 million (euro 1.14 million) in unpaid member state contributions for three consecutive years.
The letter, signed by SADC Deputy Executive Secretary Albert Muchanga and addressed to former Principal Secretary for Foreign Affairs Bernard Sande, says in the year 2002/2003 Malawi did not honour her annual contribution amounting to kwacha 14 million (euro 107,000). The country also failed to pay her annual contribution for the year 2003/2004 amounting to kwacha 52.6 million (euro 401,000) and kwacha 67 million (euro 511,000) for the current 2004/2005 period.
SADC, in the letter says that because of the UDF government's failure to honour membership contributions, Malawi will now be under sanctions, which include the suspension of her right as a paid up member to take an active role in SADC activities. Additionally, any Malawians who wish to work for SADC in any form will now not be recruited as employees nor will contracts of Malawian staff be renewed.
- In accordance with Article 3.3. para 3 of the SADC Treaty, the following sanctions are now applicable to Malawi: Suspension of Malawi¹s right to speak and receive documentation at meetings of SADC and; Suspension by SADC of recruitment and renewal of contracts of employment of personnel from Malawi, reads the letter in part.
The letter further says the sanctions will be lifted only after the outstanding contributions are paid up in full.
Ironically, when Matthews Chikaonda, the current Press Corporation Chief Executive was Minister of Finance, he was directed to make available kwacha 50 million to fund the SADC heads of government meeting in Malawi's second city Blantyre, which hosted former President of South Africa Nelson Mandela as guest of honour.
Mr Chikaonda is alleged to have told the Head of State that Malawi did not have this level of funding to pay for the occasion. He was thereafter removed from his position and the money was allocated from government coffers.
Director of International Co-operation in the Ministry of Foreign Affairs, Joseph Chiyeye confirmed the outstanding membership contributions. He however said part of the outstanding money has been paid and that some of the sanctions listed in the letter of a month ago have been lifted. "Yes, it is true."
- But part of the money has already been paid and some sanctions have been lifted, he insisted asking, "But who gave you that letter?" in surprise. Mr Chiyeye was unable to mention the amount that was paid, neither could he indicate which of the sanctions against Malawi had been lifted.
SADC is established as a grouping of countries whose main purpose is regional integration, trade promotion, economic growth and development within and between the southern region countries of Africa. The importance of such regional bodies for the survival of landlocked, largely impoverished Malawi cannot be over emphasised.
In a related development, Malawian Commerce and Industry minister Sam Mpasu has said the Common Market for Eastern and Southern Africa (COMESA) is better for Malawi than SADC. Mr Mpasu is quoted in the 'Daily Times' of last Friday as saying Malawi benefits much more in trade from COMESA than she does from SADC.
- COMESA remains an important trading bloc for Malawi, and is better than SADC in terms of trade, Mr Mpasu is quoted as saying.
Reports reaching The Chronicle indicate that the same scenario exists with other continental and international organisation like the African Union (AU) as well as the Commonwealth where Malawi has, in the past years failed to meet her obligations despite attempts by the bodies to make large concessions.
The International Monetary Fund (IMF) and other bilateral partners have also indicated that they will postpone, indefinitely the review of government's economic programmes due to failures to explain some unplanned for expenditures. Malawi, in the past few years has continues to lack fiscal discipline and prudent management and has had to borrow heavily from the local market to finance unauthorised and largely unbudgeted for expenditure brought on by the Executive.
Malawi however is not the only country in the region failing to meet its membership obligations in international bodies. Several countries have been suspended from voting in the AU due to accumulated debts. Only last week, Botswana's 'Mmegi' newspaper disclosed that the island nation Seychelles is to leave SADC due to high membership fees, which have not been paid for several years.
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