Categories: Politics

Mkaka Questions K100 Billion Maize Loan, Says Parliament Was Bypassed

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By Staff Reporter

A heated debate erupted in the National Assembly after Lilongwe Mpenu Member of Parliament Eisenhower Mkaka questioned the government’s reported procurement of K100 billion for maize purchases, arguing that the money was obtained through a loan from FDH Bank without parliamentary approval.

Raising the matter during parliamentary proceedings, Mkaka claimed that information available to the opposition indicates that the K100 billion being used to finance maize procurement is not part of the government’s approved budget but rather a loan that has allegedly not been presented to Parliament for scrutiny.

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The lawmaker said the development raises serious questions about transparency, accountability and adherence to legal procedures governing public borrowing.

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According to Mkaka, government borrowing should follow established constitutional and financial management processes, including parliamentary oversight where applicable. He argued that Parliament has a responsibility to scrutinize significant financial commitments entered into by the Executive, particularly those that could have implications for public finances.

“The information we have is that this is not government money but a loan from FDH Bank. If that is the case, Parliament deserves to know how this loan was procured and whether all the necessary legal procedures were followed,” Mkaka said.

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He stressed that lawmakers cannot remain silent if borrowing arrangements are made outside the established oversight framework, warning that bypassing Parliament could undermine transparency in the management of public resources.

Mkaka further maintained that the opposition would continue demanding accountability from the Executive, insisting that all government borrowing must be subjected to the necessary checks and balances.

“The opposition will not allow established procedures to be ignored. Parliament must perform its oversight role to ensure that public borrowing is conducted lawfully and in the interest of Malawians,” he said.

The issue comes at a time when the government is under pressure to ensure adequate maize supplies following concerns over food security in parts of the country. Authorities have been making efforts to secure maize stocks to stabilize supplies and cushion vulnerable households against rising food shortages.

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However, the source of financing for such interventions has now become a point of political contention, with opposition lawmakers demanding greater disclosure regarding the financial arrangements behind the maize procurement exercise.

Responding to the concerns raised in the House, Speaker of Parliament Rt. Hon. Sameer Suleman clarified that not every agreement entered into by the government is legally required to be brought before Parliament.

The Speaker explained that the legal framework governing government agreements distinguishes between different types of financial arrangements, meaning that some transactions may not require parliamentary approval before implementation.

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While not commenting directly on the specifics of the alleged FDH Bank loan, Suleman indicated that the requirement for parliamentary approval depends on the nature of the agreement and the applicable laws governing such transactions.

His ruling sought to clarify the procedural position after opposition members pressed for an explanation regarding Parliament’s role in overseeing the reported borrowing.

Despite the Speaker’s clarification, Mkaka maintained that the matter warrants further scrutiny, arguing that Parliament should not be sidelined on issues involving substantial public financial obligations.

The exchange highlighted the continuing debate over the balance between the Executive’s authority to enter into financial agreements and Parliament’s constitutional oversight responsibility.

As discussions continue, attention is expected to focus on whether the government will provide additional details regarding the reported K100 billion financing arrangement, including its terms, purpose and legal basis.

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The debate also underscores growing calls for transparency in public financial management, particularly at a time when Malawi faces economic challenges and increasing demands for accountability in the use of public resources.

With maize remaining a strategic commodity for national food security, lawmakers from both sides of the House are expected to continue closely monitoring the government’s financing decisions and the legal processes surrounding major public expenditures.

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