Malawi Govt Unable to Service its Obligations
- By solomon2day
- On 15/07/2019
- In Special Report
The Malawi Government has for sometime been unable to service its financial obligations to ensure good governance.
For about two months now, contractors and suppilers have had to put up without badly needed payments from government, which has led to a major cash crunch.
"The prolonged elections tussle, unavailability of the budget means nothing can be spent on without the budget," a well informed source opined.
The government is the major source of survival for most businesses in Africa's most impoverished but resource endowed country.
Of worry, is the rsing debt of the country, which according to Center for Social Concern(CFSC)Malawi's debt, both locally and internationally, stands at about K3.3 trillion .
CFSC's Economic Governance Programmes Officer Lucky Mfungwe says "The research revealed that on average, 14 percent of the budget is being used to pay loans domestically while one percent is being used on foreign loan,"
This development is coming on the heels of violent protests over the outcome of the May elections in the country, which opposition parties allege was rigged to facilitate President Peter Mutharika's re-election.
