African Reserves

The DPP’s appetite for loans has left Malawi’s economy in dire straits ”- State House | Malawi Nyassa Times

According to State House, Malawi is currently swimming in financial shreds due, among other things, to the merciless economic plunder of the former ruling Progressive Democratic Party (DPP) and the main Chakwera administration which is making strides in handing it over. economy on track.

Speaking at a bi-weekly presidential press briefing in Lilongwe on Monday, State House communications director Sean Kampondeni said the DPP’s appetite for unreasonable loans that have accumulated to around 4,000 billion K has left the public pulse of the country in shambles.

Kampondeni, however, assured the Malawians that everything was under control as President Chakwera and his administration did everything to deal with the situation.

“The current administration is struggling to finance the KK 4 trillion through unreasonable loans that the DPP took out when he was in power,” Kampondeni said.

And responding to a question about how much time Malawians should give the Tonse administration to clean up the problem, acting presidential spokesman Anthony Kasunda has not been hired.

“Malawians should be patient and give the president enough time to deal with the problem. Rest assured that the president is currently busy resolving the issue, ”Kasunda said.

Kasunda pleaded with Malawians to be patient with President Chakwera as he works tirelessly day and night to repair the country which is in a chaotic economic state.

“The president is fixing things to get Malawi where it should be. It will take some time because the damage, which has lasted more than six years, is too great, but President Chakwera is on a mission to repair it and Malawi will soon be repaired, ”Kasunda said.

Recent reports indicate that Malawi is on the verge of repaying a huge K50bn to the International Monetary Fund (IMF) due to the financial dishonesty of the DPP.

Sources said the DPP used to coat the country’s foreign exchange position figures to show the IMF that the country was doing well economically.

“This is a very sensitive issue and in layman’s terms, the bank was lying to the books of the IMF in its reports, especially on foreign exchange reserves. It’s a serious scandal with the IMF, ”a source recently told the Nyasa Times.

“The way forward regarding this problem is two-fold, either we will reimburse about $ 58 million to the fund or we sweat convincing the fund of possible corrective measures to correct the situation and after proposing the corrective measures, the fund takes the matter. to its board for consideration and it is not easy as most Malawians perceive the matter.

The IMF’s Africa Department, Abebe Aemro Selassie, told reporters in Lilongwe that what the DPP has done is a violation of the fund’s oath.

“The IMF takes cases of misrepresentation seriously, and in this regard, I appreciated the efforts of the authority (Tonse administration) to implement the correct actions,” Aemro added.

“I therefore commend Tonse’s government for its continued efforts to fight corruption and improve transparency and accountability in the use of public resources,” Aemro said.

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