Consumers Association of Malawi for reforms at statutory companies

Post was last updated: May 1, 2015

The Consumers Association of Malawi (Cama) wants government to extend public sector reforms to statutory corporations by, among other things, reviewing laws governing the parastatals to protect the institutions from political interference.

Cama executive director, John Kapito said there is inefficiency and bureaucracy in the operations of most statutory corporations because their operations are hinged by politicians.

He said in there is need to review most of the laws of institutions whose mandates are in congruent with the reforms.

“Most laws regulating statutory corporations have weaknesses as there is mostly involvement of politicians and bureaucracy. This seems across all government structures and there is need to rework on such laws as a way of keeping it in tandem with the required trends,” said Kapito.

He cited for example clauses on appointment of statutory corporation’s boards which make influential decisions for the institutions but are mostly influenced by the appointing authorities.

He said boards are powerless and that it is politicians who instead make decision for the corporations.

“Reforms cannot work if there is always bureaucracy and the involvement of politicians in every economic decision in the country,” said Kapito.

The reform commission headed by vice president Saulos Chilima was instituted by President Peter Mutharika in June last year to put in place quick win, medium and long term reforms across the public and civil services.

Chilima said recently that reforms have previously failed to be implemented due to lack of political will.

He said the country’s economy has failed to grow due to lack of mechanism in the implementation of the reforms that the country has been introduced.

The reforms’ blueprint is expected to be launched next month.

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