IMF HOPES FOR POSITIVE DONOR REACTION TOWARDS GOVT EFFORTS TO RESOLVE CASHGATE

The International Monetary Fund IMF has expressed hope that the donor community will return to Malawi as soon as government repairs the broken public fiscal system.
The country’s donors suspended their budgetary support for this year following financial mismanagement at Capital-hill that led to looting of government funds in a scandal that has been labelled “Cashgate”.
However, IMF had in a statement released after the withdrawal of aid encouraged government to implement remedial measures that will repair public fiscal system and provide accountability in order to initiate the process of normalizing relations between government and development partners.

The IMF which has been a darling to Malawi since President Joyce Banda’s ascendancy to the presidency due to her submissive nature on the fund’s directives, gave Lilongwe rare hope that the donor support will resume earlier in 2014 only if she resolves the cash gate scam.

Meanwhile, a local economic think tanks grouping- Economics Association of Malawi –ECAMA has concurred with IMF in a view that if positive steps will seen to be carried, donors would easily rescind their stand.

ECAMA’s Executive director Nelson Mkandawire is on record saying that the reforms that have been carried by both monetary and fiscal policy officials are positive and may facilitate the rebuilding process.

However, Mkandawire sees a possibility that the central government can suffocate the implementation of the reforms due to political influence.

“What remains now is on how long the reforms will be implemented and whether government will free the technocrats to really put to practice the proposed measures.” Mkandawire observed.

Meanwhile, Malawi is still inquiring on secrets behind the looting of over to MWK 20 billion.