Budget stand-off chocking ordinary Malawians, Mlombwa
by REX CHIKOKO - Saturday, July 28, 2007 - 15:48:40

The current stand off in Parliament on the national budget will adversely affect indigenous Malawians whose most small businesses depend on government as a major customer. Our reporter REX CHIKOKO met the interim president of the Indigenous Businessmen Association of Malawi (IBAM), Mike Mlombwa to find out how the local businesses would be affected: Excerpts:

Parliament has suspended the budget sitting indefinitely, how do you think this will affect the indigenous businesses in the country?
“It is just unfortunate that this has happened at this time when Malawi has just started picking up in all sectors. We, as indigenous Malawians in business, are very sad with the development as we do not really understand what exactly the opposition wants. In terms of business, everything is at a stand still. Government cannot do anything. Government is a main player and a lot of small businesses depend on government. Government is the biggest buyer. Everything is at a standstill for an indigenous Malawians giving a chance to foreigners to prosper.”

Would you be specific. For example, how much in monetary terms, are the indigenous Malawians are losing out because of the delay in passing the budget?
“As of now, nobody can do any business with government departments because there is no money. We might not have the actual figures but it is obvious that we are losing millions of kwacha because of the impasse. At least if the opposition would consider passing the budget first, indigenous Malawians would be served.

“As a country we could have continued doing our own things while the opposition and government are sorting out the Section 65 issue. We have school fees to pay, for example. How do they expect us to operate without government as the main player? We had plans to meet the President on the future of our organization to chart the way forward on policies but we know that the President is tied up with this whole issue.”

The opposition has justified their stand. What do you make of it?
“I do not know, but people are able to follow what is happening in Parliament, but from what we hear, we do not see the logic in blocking the budget. As things are, it is now the indigenous Malawians who are going to suffer.”

Ibam represents all Malawians, have you tried to engage government or the opposition to map out the way forward?
“We have tried to talk to people in government but when you ask them, they tell you that they do not know why the opposition is refusing to pass the budget, which, we feel is correct. When there are differences in a family, you do not punish the children.

“Malawi is a small country. We have to join hands to develop this country. Let politicians play their games. No wonder foreigners are enjoying the fruits of this country because we, Malawians, are not patriotic. What surprises me very much is that the Section 65 issue comes after the budget sitting was already opened.

“Why can’t they finish debating and pass the budget, then tackle Section 65, as they say first things first? The biggest problem is that government is able to tell Malawians what is happening but the opposition are not saying anything. I wish they would come out and tell Malawians what exactly they want.”

How does your organization assist indigenous Malawians?
“We started very well but with what is happening now, I do not know. I believe we would have been somewhere by now. We would have launched our organization and I believe a lot of people would have been joining us. We wanted to meet the Office of the Director of Public Procurement. I must be very honest with you. There are a number of problems at the ODPP. We were also expected to meet local banks to discuss how indigenous Malawians would be assisted in terms of loans. Recently, Blantyre Water Board advertised in the media on the tenders which, unfortunately, has been grabbed by foreigners. Had Ibam been working properly, this is one issue we would have tackled.”

What is your relationship with ODPP and banks in the country?
“We are trying to establish a relationship where banks would be able to lend money to Malawians. We also want ODPP to have a deliberate policy to give preference to Malawians because currently we do not have powers to negotiate on behalf of Malawians. That is why we want to launch the organization first.”

Malawians have the reputation of not paying back loans, how would you expect the banks to assist you?
“On that issue, I would say it is not true that Malawians are bad at paying back loans. The issue is that our banks are not helping ordinary Malawians. Our banks are only good at helping big institutions. They do not give a chance to a local Malawian. This is not the case in other African countries. Malawians are hard workers if given an opportunity. Right now with the current administration, I do not see how a person would walk into the bank and get K10 million and not repay it.”

How do you look at the future of an indigenous business man?
“The good thing is that government has not said that they have abandoned the budget so we know that no matter what, we might have the budget and go on with our businesses. For the sake of Malawians, the politicians would have first passed the budget and wait for 2009 for their show down. They will have time to tell Malawians what they are going to do once they are in government. As a business man, to have no budget or to delay the national budget means crisis. I cannot afford school fees for my children because the main buyer has got no money.”

What do you think should be the way forward as Ibam?
“I would call upon the business community to join hands and exercise our rights. We have to plead with the opposition to pass the budget and discuss the section 65 and other political issues later. The funny part of it is that these people are now doing all these things but tomorrow you will see them drinking tea together and enjoying while the poor Malawian is suffering. They all have hidden agendas which is unfortunate.”

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