During an appearance at the Council on Foreign Relations in New York on September 25, President Peter Mutharika of Malawi discussed a range of issues relating to his 15-month tenure as head-of-state and his government's policies. In his remarks during the on-the-record session, he criticized his predecessor, Joyce Banda, who was defeated in the 2014 elections. Banda served as vice president under Bingu wa Mutharika, the current president's brother, who tried to replace her with his younger sibling before he died in office in 2012. Despite efforts to block her ascendancy, Banda became president on April 7, 2012 and served for two years.
After reading the transcript of the CFR session, which was facilitated by AllAfrica's Reed Kramer, Banda submitted a response to Mutharika's remarks, which she said "contained inconsistencies and inaccuracies concerning me". Banda's statement:
1. In an attempt to articulate his government's commitment to fighting corruption and create an enabling environment for political co-existence, the President fell into the usual trap that now defines his presidency. He blamed my previous People's Party (PP) government for the ills of his government, for 'Cashgate' and the current economic turmoil.
President Mutharika failed to acknowledge that I am the first Head of State in Malawi to take bold steps to fight corruption and staunch theft of public resources. I publicly stated that there was a problem of theft and corruption since 2005 when the Integrated Financial Management Information System (IFMIS) was installed and rallied everyone to jump on board to deal with it once and for all. I personally and aggressively led the fight against theft, fraud and corruption.
When the European Union (EU) Head of Delegation, Alexander Baum, alerted me about loopholes in the Integrated Financial Management Information System (IFMIS), I announced on September 7, 2013 the introduction of measures to seal all IFMIS loopholes to root out theft, fraud and corruption. My government drew up a comprehensive work plan to deal with corruption and plunder of public resources. The plan was subject to regular review by a Cabinet Committee, which was headed by the Minister of Good Governance, Chris Daza.
This work plan was shared with our donors and cooperating partners. My government initiated a forensic audit into Cashgate. I shall forever be grateful to the British Government for its provision of resources to enable us to engage an internationally-renowned audit firm, Baker Tilly, to conduct the forensic audit. The Baker Tilly audit report was released on October 30, 2014. It included the names of the people involved in Cashgate. It is a public document.
In October 2013, when it became apparent that there was looting of public resources, I dissolved my cabinet and removed the ministers who were mentioned in relation to the looting. About 68 businessmen and civil servants were arrested in connection with Cashgate. Some 30 bank accounts connected to Cashgate were frozen.
The Cashgate trials and subsequent convictions taking place now are a result of the arrests that were made during my time as head of state and following the release of the Baker Tilly forensic audit report.
It was during my time as head of state that I we presented to Parliament for passage 'the Declaration of Assets' Bill aimed at checking unexplained amassing of personal wealth by public servants.
2. President Mutharika's government has ignored national and international calls to institute a forensic audit into an alleged 577 billion Kwacha 'Cashgate' that occurred between 2009 and 2012 before I came into office. Just like the British Government provided financial support for a forensic audit during my time, the German Government has committed money to facilitate a forensic audit by Price Waterhouse into this financial scandal. However, President Mutharika's government has shown no interest to expedite the audit.
Recently, robbers broke into a German envoy's house in (city) where documents containing information about the 577 billion Kwacha forensic audit were stolen. In the midst of the outcries, a senior Anti-Corruption Bureau (ACB) official, Issa Njaunju, was brutally murdered in early July 2015. Since that time, no concrete investigations have been carried out.
His family, the diplomatic community and many Malawians are demanding justice as investigations seem to have stalled. The British High Commissioner recently led a team of ambassadors to meet officials of the ACB to demand an explanation of the apparent lack of interest to hunt down Mr. Njaunju's killers.
As I have always advocated, the world must always stand by leaders who have the political will and courage to take tough and unpopular decisions at the expense of their political career for the good of their people. Leaders should be commended when they genuinely embark on the fight against corruption. They are 'victors' and not 'villains' for saving public resources for the good of the majority. It is encouraging to see that there is an emerging crop of leaders on the African continent who are genuinely fighting against official corruption.
3. I was shocked when President Mutharika stated in his presentation that I have received constitutionally mandated benefits, as a former president - specifically a retirement residence, a salary and transport and security. This has not happened in the 15 months since I left office.
4. The government of President Mutharika recently withdrew some of my official security apparatus without explanation. During the Council of Foreign Relations meeting, President Mutharika admitted that his government had indeed weakened my security "because she is away". This decision is not only unconstitutional but leaves me vulnerable to a threat on my life.
Events of October and November 2010 justify my concern. During that time, when I was State Vice President, my security was also drastically reduced and weakened. On November 19, 2010, I was involved in a mysterious road accident at Kanengo in Lilongwe. This was an apparent assassination attempt, which was widely reported by newspapers in Malawi. This current scenario may be history repeating itself.
Finally, I wish to state that Malawi is currently in an economic quagmire. President Mutharika's government must cooperate with our international partners to save the economy from total collapse. We have read in the media that the health system in Malawi has totally collapsed and that Malawi's programme with the International Monetary Fund (IMF) is off-track.
This state of affairs is similar to the period between 2009 and 2012. Malawi had no programme with the IMF and donors, notably the British Government, had severed ties with Malawi due to its poor human rights and governance record. It was also during this period that the 577 billion Kwacha, which is the subject of investigation now, was misappropriated.
When I was elected President in April, 2012, I worked extremely hard to win back the donors. I did not blame my predecessor and the previous government. I instituted economic reforms in the macro economy; in governance and in the observance of human rights; food security; women's empowerment; rural development and international relations; among others. There was a boom in the manufacturing industry; good tobacco prices; improved security; and uninterrupted water and electricity supply.
In two years, my government implemented a well-thought-through Economic Recovery Plan (ERP). I had to make very hard and unpopular decisions such as devaluing our currency by 49% in order to bring the economy back on track.
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The economy grew from 1.8% to 6.3% and we improved the status quo from no fuel to 15 days' fuel supply. As a country, we moved from one week's import cover to 3.9 months. Companies that were operating at 35% due to lack of import cover and laying off staff were operating at 85% at the time I left in 2014. Water projects were implemented everywhere and maize was available in every ADMARC market throughout the year, which brought down the price of maize to K3, 000.
We also initiated social projects such as public works, a-cow-a-family, cash transfer, rural transformation and safe motherhood. We reduced maternal mortality statistics from 675 women dying giving birth to 460 women per 100,000. In 24 months, we built 20 holding shelters for pregnant women at various hospitals across the country; we distributed free maize to the poorest families and built hundreds of houses for the poor under the rural housing project.
Historically, every new President in Malawi has faced challenges in as far as aid inflows are concerned. In 1994, President Bakili Muluzi came in when donors (the Paris Club) had withdrawn aid due to Kamuzu Banda's dictatorship. He worked hard to bring the 'Paris Club' back to Malawi. When Bingu wa Mutharika came in 2004, he worked hard to bring donors back after Muluzi had fallen out with them during his second term.
I inherited a similar situation. However, with a hard working team, we were able to turn around the economy in 100 days. It is therefore unfounded for President Peter Mutharika to blame the previous government for his failures as the three Presidents before him worked hard to normalize the situations instead of blaming their predecessors.
Fifteen months have elapsed since he came into power and it is now incumbent for President Mutharika to come up with a clear plan of action detailing how he will grow the economy that has collapsed under his watch. Malawians deserve better.
