Malawi cancels $145 million arms deal with SA firm: report

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

Comment

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!

Visa facilitation as a means to support tourism growth, socio-economic development and job creation

joycebanda

Yesterday an update appeared on the Malawian president’s Facebook page, in which she informed her social media followers that she had participated in a ‘.. Ministerial Roundtable of the United Nations World Tourism Organisation at Victoria Falls’. The topic for discussion at the forum was ‘visa facilitation as a means to support tourism growth, socio-economic development and job creation’.

Considering that the themes of infrastructure, airports and increased cross-national trade within Africa have popped up several times in discussions and articles on this website (for example here, here and here), I think her angle on the issue is commendable, and deserves a mention.

Recently, the Sudanese Billionaire, Mo Ibrahim expressed his displeasure during his address at the 11th Nelson Mandela lecture, with the visa regimes in Africa, saying:

“..The second issue is African economic integration. Only 11% of our trade is amongst the Africans. We refuse to let our people travel from one country to another. We always need a visa. And l also say, sadly, although being Sudanese, whenever l travel in Africa l always carry a British passport, because l am welcome.

My colleague here, a Member of our Board, had huge trouble in getting a visa to be able to join me here. He was a Secretary General of the United Nations, a board member, just to get a visa here is a major trouble. But with my British passport l am welcome here through your immigration lines. Is that acceptable?..”

One can only hope that these kinds of initiatives — which clearly will have a tangible economic benefit to Africa – do eventually get implemented by the countries concerned, and do not end up onto the large pile of broken promises by political leaders past and present.

The full update on the Facebook page is as follows:

Good evening my friends

Today I attended a Ministerial Roundtable of the United Nations World Tourism Organisation at Victoria Falls, on the border of Zimbabwe and Zambia where I addressed participants on the topic: ‘visa facilitation as a means to support tourism growth, socio-economic development and job creation’.

I addressed participants that our continent possesses many places of great beauty and I went on to talk about our beautiful country, Malawi, which happens to be one of the most beautiful countries for tourists attraction as we are blessed with a large freshwater lake, surrounded by white sands and full of a diversity of fish species and country boasts of wide open skies, beautiful rolling hills and mountains that offer rare experiences to climbers, bird watchers and adventure enthusiasts.

I made it clear that Malawi’s description as the ‘warm heart of Africa’ does not just refer to our inviting climate or the deep red of our sunset. It aptly describes the welcome you will receive from all Malawians as we are indeed very friendly and “warm hearted people of Africa”!

While talking about tourism I addressed participants that , tourism promises immense opportunities for growth of our economies and job creation; however millions of people continue to face unnecessary barriers to travel. These barriers include complicated and expensive visa processes; difficult and therefore expensive transport connections, lack of integrated border management systems and security threats.

For example, according to research by the United Nations WorldTourism Organisation; and World Travel and Tourism Council, facilitating visas among the G20 countries alone would create an additional five million jobs by 2015. This is a clear indication of the impact simplified and user friendly visa system can have on our economies.

It is my view that Visa Facilitation has the potential to enhance regional integration, intra-regional trade and easy movement of capital and people between countries and regions.Therefore, visa policies and procedures are among some of the most important instruments influencing tourism and investment. The development of policies and procedures for visas as well as other travel documents is closely linked to the development of tourism. Furthermore, the quality, reliability and functionality of visas have a direct correlation to number of arrivals at a destination.

In lieu of the above reasons I am calling for regional interconnectivity amongst our nations which may entail improving the current state of transport and telecommunications infrastructure and facilitating institutional improvements to optimise the efficiency and capacity of road, rail, water and air transport and the social sectors in education and health.

I believe that this in turn has high potential on enhancing economic growth; thus contributing to overall objective of poverty reduction. The link between tourism and poverty reduction is well known as one of the fundamental contributions is job creation which is part of our government’s economic recovery plan that my government is pursuing.

Thank you all for your support and prayers

May God bless you!

Good night!

Dr Joyce Banda
President
Republic of Malawi “