The Malawian government, through the Ministry of Mining under Ken Zikhale, has entered into a secretive and highly questionable Mining Development Agreement (MDA) with Lotus Resources Limited for the reopening of Kayelekera Mine. This clandestine maneuver raises fundamental questions about transparency, accountability, and the government's commitment to safeguarding the national interest. What exactly are they hiding? And why are Malawians, the true owners of the nation's resources, being kept in the dark?
Rev. Baxton Maulidi, the Economic Justice & Accountability champion in Malawi for the All Africa Conference of Churches (AACC), has sounded the alarm, demanding that the contents of the agreement be made public. His concerns stem from the disastrous experience Malawi had with Paladin Africa in 2009--a deal shrouded in secrecy that ended up siphoning millions of dollars out of the country through dubious tax incentives and loopholes.
The revelations from ActionAid Malawi in 2015 should have served as a wake-up call for the government. The Paladin deal resulted in Malawi losing over $43 million in tax revenue, thanks to manipulated tax breaks, reduced royalty rates, and financial engineering that saw money funneled through offshore subsidiaries. If history has taught us anything, it is that such opaque agreements only serve foreign investors while leaving Malawians with nothing but environmental destruction and economic exploitation.
So why has the government not learned its lesson? Why was this deal with Lotus signed in secrecy? Why is the agreement still being hidden from public scrutiny? These are questions the Mining Minister, Ken Zikhale, and the entire administration must answer.
The lack of transparency is not just a governance failure--it is a ticking time bomb. By keeping this agreement under wraps, the government is inviting mass unrest and potential demonstrations against the reopening of Kayelekera Mine. Malawians deserve to know whether this deal is fair, whether the country will actually benefit from its uranium resources, and whether past mistakes are being avoided.
Rev. Maulidi's concerns are valid. The government's refusal to release the agreement suggests there is something deeply suspicious about the terms. Are we once again being sold out to foreign investors? Are we about to witness another exploitation of our resources with little to no benefit for ordinary Malawians? The involvement of only traditional leaders in Karonga in signing a Community Development Agreement with Lotus Resources does not reflect national interests--it is a mere smokescreen for a deal that could be detrimental to Malawi as a whole.
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Don Consultancy Group's Chief Economist, Chifipa Mhango, has also criticized the process, arguing that deal negotiations in such industries require expertise in global mining trends, industrial economics, and financial structuring. Instead, the agreement was brokered behind closed doors by government officials, without engaging independent experts who could have ensured Malawi got a fair deal.
The time for secrecy is over. If this government truly believes in accountability, it must release the full details of the Lotus Resources agreement immediately. Anything less would be a betrayal of the people. If this secrecy continues, the people will have no choice but to take to the streets to demand what is rightfully theirs.
Malawians must not allow their country's resources to be stolen under the cover of darkness again. The government must answer to its people. Transparency is not a privilege--it is a right. And that right must be upheld, or the consequences could be dire.
