Political interference and political appointments are crippling Malawi’s parastatals, leaving taxpayers to foot the bill for billions of kwacha in losses.
A University of Malawi doctoral student in Human Resource Management, Bright Limani, says poor leadership, lack of merit in appointments and chronic underfunding are among the major reasons state-owned enterprises continue performing poorly.
Limani says successive ruling parties have interfered in the daily operations of parastatals, compromising the quality of decisions and weakening their ability to operate efficiently.
“It is evident most commercial and non-commercial parastatals in Malawi are posting losses instead of profits. Their performance is glaringly very poor,” he said. “The general public feels shortchanged because of this. Taxpayers’ money is being wasted year in and year out.”
He also questioned the appointment of board members, accusing successive governments of rewarding politically connected traditional leaders, party loyalists and politicians with positions without proper vetting or consideration of competence.
“For a long time, parastatal board appointments are not done on merit. No proper vetting is done. What else do we expect at the end if parastatals have unmerited boards?” he queried.
Limani further faulted the recruitment of chief executive officers, saying some are handed top positions because of their political connections rather than their qualifications and professional experience. He also cited inadequate funding as another obstacle to the performance of state-owned enterprises.
To address the crisis, Limani has called for an end to political interference, recommending that board members and chief executives be recruited on merit through the Civil Service Commission or Parliament. He also wants parastatals adequately funded and headed by technocrats rather than politicians.
Governance expert Michael Kaiyatsa has backed calls for reforms, saying appointments to boards and senior management must be based on merit, competence, integrity and relevant experience rather than political loyalty.
Kaiyatsa also stressed the need for transparent recruitment and promotion processes, genuine board oversight and stronger scrutiny by Parliament and other oversight institutions to ensure public resources are properly used and underperforming executives are held accountable.
