Malawi Electoral Commission (MEC) K700 million stuck in financial deal

The Malawi Electoral Commission (Mec) has found itself in financial dilemma after its K690 million investment with Alliance Capital Limited went bad following the decision by the Reserve Bank of Malawi (RBM) to revoke the licence of the investment management firm.

Mec Chairperson Judge Chifundo Kachale disclosed this in Lilongwe, where Mec officials appeared before members of the Budget and Finance Committee of Parliament Thursday.

Officials from the electoral body were summoned by Parliament to explain how financial resources were utilised in the 2020-21 financial year.

According to Kachale, failure to recoup the investment from Alliance Capital Limited was choking the scheduled constituency demarcation exercise, which requires K1.263 billion.

“The resources were sitting idle; as such, [members of] the previous commission decided to invest the nomination fees to generate some more money.

“We, as a commission, have already engaged Alliance Capital to liquidate the resources and make the monies available to us,” Kachale said.

He further told committee members that Treasury gave Mec K700 million for use during the demarcation exercise and also gave them the go-ahead to use resources raised from nomination fees from candidates.

But, according to Kachale, monies for nomination fees were locked up in investment the electoral body made with Alliance Capital Limited.

He added that failure to get back the money from Alliance Capital Limited had resulted in the electoral body facing a shortfall of K563 million to implement the constituency demarcation exercise.

The Mec chief asked committee members to help the electoral body lobby for more funds for it to ably run the demarcation exercise.

Budget and Finance Committee of Parliament Chairperson Gladys Ganda said they would look into Mec’s request during the mid-year budget review meeting.

She added that they would try their best to mediate in the issue between Mec and Alliance Capital so that the latter could release the funds in question.

“The issue with Alliance Capital presents a very tough situation; Mec is asking for more money but they have money sitting idle at Alliance Capital. We will engage Alliance Capital and Reserve Bank of Malawi to map the way forward on the issue,” Ganda said.

Source: Times Group《》RT

Rate this item
(0 votes)
Super User

We moderate the comments

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.