Govt clueless on what to do with K16 billion

Reserve Bank of Malawi

Government has claimed that it has K16 billion at the Reserve Bank of Malawi (RBM) and it does know what to do with it.

According to Ministry of Finance spokesperson, David Sado, the K16.2 billion which was made from the 2015 sale of Malawi Savings and Inde banks has been at the RBM for three years.

davis-sado-Ministry of Finance
Sado: We are looking at several investment projects.

Sado told the local media that government is yet to make a decision on what to do with the money although there have been some proposals.

“The money is there at the Reserve Bank of Malawi. We want to invest the money in projects that [may help us] benefit out of it. We are looking at several investment projects such as irrigation,” Sado said.

This comes at a time government is failing to adequately provide various social services.
Moreover, the K1.5 trillion budget Minister of Finance Goodall Gondwe presented a few weeks ago had a budget deficit of K242 billion and government has not been forthcoming on how it intends finance.

However, a University of Malawi economics professor has expressed doubt if government is really keeping the money.

The economist Ben Kalua said a poor Malawi cannot afford to keep K16 billion for three years without knowing what to do with it.

“Again, K16 billion of 2015 is not the K16 billion of this year. Surely, the money is losing value,” he said.

Government sold Malawi Savings Bank to FDH Bank to the tune of K9.5 billion while Inde Bank was sold to National Bank of Malawi at K6.7 billion.