Original article here (via Times Live)
Malawi cancels $145 million arms deal with SA firm: report
The agreement between the Malawi Government and Paramount Group has been abrogated. That is all I can confirm and say,” Gondwe told Saturday’s Nation newspaper.
The paper quoted a source within the finance ministry as saying the government of President Peter Mutharika told the firm the deal was “illegal and expensive”.
More on original article here
I think President Peter Mutharika must be hugely commended for doing this. The relationship between Paramount and Joyce Banda was unhealthily close. The whole fiasco regarding the arms deal, and the jet bartering and the comments from the UN had an air of dishonesty and special interests about it. I don’t believe the arms deal was to the benefit of the people of Malawi, and Joyce Banda was wrong to associate her government with these guys. As I wrote here, most of these deals benefit people other than Malawians.
Having said that, I wonder what it will cost the country to terminate the contract? Wait, was there a contract? Or was this another gentleman’s agreeement? We will need to know how much it costs the country, and why the president calls it ‘illegal…’. Presumably, the get-out clause is a better devil than paying $145 million? Although what you don’t want to happen is to spend additional millions of dollars you don’t have in court cases fighting a contract that is impenetrable.
I hope President Mutharika will make do on his promises to clean up government in Malawi, and not waste time with propaganda or fighting opponents. I hope he does away with all such useless and ‘illegal’ commitments Malawians never needed. I’d like to see Mutharika revisit Kayelekera, and ‘abrogate’ the unfair Paladin deal. I’d like to see him push for the completion of the Shire-Zambezi waterway, which his brother Bingu Wa Mutharika began – it will lower the cost of goods in Malawi. I’d like to see Malawians realise real benefit from the Vale railway line. I’d like to see Malawi University of Science and Technology open and begin training students in areas which the country is lagging behind. I’d like to see the restrictive and backward thinking regional quota system for university entrance abolished, and in its place an improved open merit based system established. It will be good to see more Universities built across Malawi, and there are many donors who will support this initiative. The proposed mini Chinese city could have huge benefits in terms of stimulating trade and entrepreneurship for both China and Malawi, the president must pursue the agreement, and see its completion. Why can’t we have our own oil refinery? As the Zambians have done (see another link here). There are many ideas the government can adopt to generate income and raise funds outside of taxes. Over a year ago, I helpfully listed some here.
But most of all, I’d like to see president Mutharika get to the bottom of the Cashgate scandal , prosecute all who were responsible for the theft, and close any remaining loopholes in IFMIS. Malawi can never move forward if people continue to steal from the government – and get away with it.
So far, so good. Well done Mr President Sir!