Today I read with much sadness the remarks by the Reserve Bank of Malawi (RBM) boss about exorbitant interest rates our financial institutions in Malawi charge their customers.
Perks Ligoya made the remarks when addressing experts and chiefs from the lending institutions from across Malawi in Lilongwe. He told microfinance institutions to stop “stealing from the poor”. The banking regulatory chief was referring to the high interest rates which banks charge in Malawi.
Addressing the conference, Ligoya threatened to take legal action against lending institutions if they continue charging very excessive interest rates (so he knows about the excessive interest rates and he has done nothing about it).
I am sad to say that I am not persuaded that Ligoya’s remarks will go to any length to change the status quo. It is my opinion that what Ligoya said were empty threats, mere rhetorics to mark the official opening of the conference.
Malawians will continue to suffer at the hands of the banking sector in Malawi unless his regulatory body wakes up from her deep slumber and do what she is supposed to do – regulate the financial institutions.
Banknet
I will use my personal banking experience, albeit in a small way, to illustrate the national responsibility the RBM owes ordinary Malawians like me.
I use the National Bank of Malawi (NBM) online banking service called banknet. If you are in diaspora and want to monitor your riches home the facility is jolly good and I recommend it. Of course there is a cost to it - K550 every month. Yes, the bank charges for internet banking services!
Banknet claims to offer subscribers to its online service a number of facilities. Some of the services include online utility bill payments and online cash transfer services. Furthermore, the bank offers online fixed account services. You can create a fixed bank account and terminate it online.
My experience though is that every time I cancel a fixed bank account online my transaction never goes through. I have to phone the bank several times, at a very high cost, for my request to be implemented. Unfortunately this is a general trend for most services - one has to sweat to get any service done by the bank.
The NBM inefficient online services for which I pay K550 every month sharply contrasts with my UK efficient online banking services for which I pay nothing.
Who is to blame for crap banking services and the numerous unreasonable bank charges? Certainly I can’t blame the greedy bankers. I do not expect the bankers to play judge and jury at the same time. I blame our sleeping regulator – the Reserve Bank of Malawi.
Rules, Compliance and Enforcement
The Reserve Bank of Malawi has failed to adequately monitor and regulate the banking sector and/or alternatively she simply has failed to enforce her own banking rules in the country.
When it comes to being regulated, the banks in Malawi enjoy a free ride. They have been left free to prey on the poor Malawians. Consequently the little hard earned cash of Malawians ends up in the pockets of the rich banking gurus through unfair banking fees.
It is shocking that despite the banking sector in Malawi having a very small clientele, every year the sector makes the highest profits in the country. This is largely due to the unregulated excess interest rates and inappropriate exorbitant bank charges.
It must be the role of the regulator to ensure that the banking services in Malawi are performed according to guidelines prescribed by the regulator. She has the duty to ensure that bank charges and interest rates are reasonable.
Further, the regulator has the duty to implement effective complaints-handling procedures. RBM has to formulate clear ways that ordinary people and companies can feed bank to her on the services we get from the banks with a view of speaking on our behalf to the banks.
The financial regulator has the legal and moral responsibility to come out with clear and fair rules for the banking sector in Malawi. The regulator has to ensure compliance of the rules. Where there is a breach of the rules, the regulator has to punish the offender and award appropriate remedies to the victim.
My groanings for the banking sector in Malawi were far from being comforted with Ligoya’s remarks. Malawians do not need empty conference threats against the bankers. They want to see the RBM actually doing its job - regulating the financial institutions in the country.
I am looking forward to a day when the regulator shall wake up from her sleep and help Malawians enjoy their hard earned cash then shall I wipe my tears.
An incompetent regulator is a danger to services.
Tuesday, 31 August 2010
Sunday, 22 August 2010
Prosecuting free speech in Malawi
I groan over the arrest, on allegation of “seditious remarks”, of the general-secretary for Livingstonia Synod of the CCAP Rev. Levi Nyondo, his deputy Rev. Maurice Munthali and Synod Moderator Rev. Mezuwa Banda.
The police arrested the three last Friday after a funeral service of former health minister, Prof. Moses Chirambo.
The whole saga has all the hallmarks of unlawful arrest. I find grounds of the arrest of the clerics to be nonsensical, an affront to democracy and a disgrace to the country.
It is reported that Rev Nyondo spoke at the funeral against the government’s decision to re-introduce the divisive quota system for university selection. In his speech he also criticised the government’s discrimination of the vice president.
To put the clerics’s outburst in context: it is being perceived generally by the people, academia, civil society groups, and the media in Malawi that the president has of late been making lamentable decisions. The decisions which are detrimental to democracy in the country.
The president’s decisions, among others, include: the establishment of the Mulhako wa Alhomwe to champion the course of the president’s Lomwe ethnic group; the change of the national flag; the inclusion of his wife in cabinet; the reduction of the salary of the leader of opposition and recently the endorsement of his brother to be the presidential candidate for the ruling party when the president’s final term in office comes to an end.
In my view all these are legitimate issues worth full debate. Malawians are justifiable in express their views. These are valid issues for the clerics to express their opinions.
It is not seditious if the object of the speech was to show that the government has been misled or mistaken in her measures, or to point out errors or defects in the government with a view to their reformation, or to excite the people to attempt by lawful means the alteration of any matter in government by law established, or to point out, with a view to their removal, matters which are producing, or have a tendency to produce, feelings of hatred and ill-will between classes of the people in the country.
Any reasonable and fair minded Malawian would indeed agree that the establishment of the Mulhako wa Alhomwe; the re-introduction of the divisive quota system for university selection have a great potential to produce ill-will and hatred among Malawians.
Freedom of speech is a lifeblood of democracy. It acts a brake on the abuse of power by public officials. It facilitates the exposure of errors in the governance and administration of justice of the country.
In my opinion the arrest of the clerics exposes a huge loophole in our laws and the police powers of arrest in our country. The protection of the right to freedom of expression, particularly the freedom to criticise public bodies and the government must always be protected by the law.
Modern democratic government means government of the people by the people for the people. But there can be no government by the people if they are ignorant of the issues to be resolved, the arguments for and against policies.
It is deplorable and ironic for a democratically elected government to spend so much time and money prosecuting free speech. The police must never be used to get in the way of lawful free speech.
The law must positively encourage or require lawful free speech among the subjects. Criticism of public bodies and officials should ideally be immune from sanctions. It is time we scrapped the ancient laws of treason from our books and revisit the police powers of arrest.
I am in deep pain.
The police arrested the three last Friday after a funeral service of former health minister, Prof. Moses Chirambo.
The whole saga has all the hallmarks of unlawful arrest. I find grounds of the arrest of the clerics to be nonsensical, an affront to democracy and a disgrace to the country.
It is reported that Rev Nyondo spoke at the funeral against the government’s decision to re-introduce the divisive quota system for university selection. In his speech he also criticised the government’s discrimination of the vice president.
To put the clerics’s outburst in context: it is being perceived generally by the people, academia, civil society groups, and the media in Malawi that the president has of late been making lamentable decisions. The decisions which are detrimental to democracy in the country.
The president’s decisions, among others, include: the establishment of the Mulhako wa Alhomwe to champion the course of the president’s Lomwe ethnic group; the change of the national flag; the inclusion of his wife in cabinet; the reduction of the salary of the leader of opposition and recently the endorsement of his brother to be the presidential candidate for the ruling party when the president’s final term in office comes to an end.
In my view all these are legitimate issues worth full debate. Malawians are justifiable in express their views. These are valid issues for the clerics to express their opinions.
It is not seditious if the object of the speech was to show that the government has been misled or mistaken in her measures, or to point out errors or defects in the government with a view to their reformation, or to excite the people to attempt by lawful means the alteration of any matter in government by law established, or to point out, with a view to their removal, matters which are producing, or have a tendency to produce, feelings of hatred and ill-will between classes of the people in the country.
Any reasonable and fair minded Malawian would indeed agree that the establishment of the Mulhako wa Alhomwe; the re-introduction of the divisive quota system for university selection have a great potential to produce ill-will and hatred among Malawians.
Freedom of speech is a lifeblood of democracy. It acts a brake on the abuse of power by public officials. It facilitates the exposure of errors in the governance and administration of justice of the country.
In my opinion the arrest of the clerics exposes a huge loophole in our laws and the police powers of arrest in our country. The protection of the right to freedom of expression, particularly the freedom to criticise public bodies and the government must always be protected by the law.
Modern democratic government means government of the people by the people for the people. But there can be no government by the people if they are ignorant of the issues to be resolved, the arguments for and against policies.
It is deplorable and ironic for a democratically elected government to spend so much time and money prosecuting free speech. The police must never be used to get in the way of lawful free speech.
The law must positively encourage or require lawful free speech among the subjects. Criticism of public bodies and officials should ideally be immune from sanctions. It is time we scrapped the ancient laws of treason from our books and revisit the police powers of arrest.
I am in deep pain.
Thursday, 29 July 2010
Against inciting xenophobia in Malawi
I have been following the sad story of a 72-year-old Malawian man who is said to have been left without a nose, an ear lobe and part of his lower lip following an attack by five vicious dogs.
The dogs attacked Chimdima last Wednesday when he was reporting for duties at the Dean Van Schalhwl's residence. He works for Schalhwl as a watchman.
To add insult to injury there are reports saying that Schalhwl illegally obtain the victim’s HIV status details to find out if the dogs did not contract HIV from his blood.
This is a horrific incident. Understandably it has resulted into protests against Schalhwl. My heart goes out to Chimdima and his family. I wish him quick recovery. Media reports say Police have charged Schalhwl with negligence and keeping dangerous animals.
However, my groanings are against the way the media, the president and the Human Rights Consultative Committee have reacted to the incident. I take issue with the language used by the protestors.
President Mutharika is quoted to have said, “I won’t accept foreigners to come here and treat Malawians worse than dogs…I don’t have room for white people treating Malawians like dogs,”. President Mutharika added describing Malawi as “a black country for black people.”
The umbrella body for human rights institutions in Malawi, the Human Rights Consultative Committee (HRCC) has asked the Malawi government to immediately deport Van Schalhwl.
It is important to say that the right to freedom of expression is a fundamental human right. It is commonly regarded as an indicator of democratic development in the wider world and rightly so. And indeed thus what I am just exercising here.
However I don't understand how people can protest while sending out violent hate messages themselves against some people group.
It is my view the president utterances are complete off the mark and that is an understatement.
In a situation like this, where Schalhwl is in the hands of the Police and the courts, I did expect the president to desist from commenting on the story.
Mutharika should have been the first one to place his trust in the Police and our judicial system. It is worrying to have the president go on a rant against “foreigners” and “white people” while the arm of the law is taking its due process.
I further got dismayed with the media constantly describing Schalhwl as “the white man”. It is shocking to read:
“Lawyers representing the white man”,
“there have been fears that angry Malawians would attack the white man”.
For the media to constantly refer to Schalhwl as “the white man” and a “foreigner” is being utterly unprofessional. Where is our code of ethics! Such reporting incites violence against some people. Inciting hatred should be the last thing the media can do.
In a progressive Malawi the rule of law means the people shall be ruled by the law only and subject to it.
The HRCC demands for the government to immediately deport Van Schalhwl should have reference to our laws otherwise such a demand would be completely unfounded. In a case like this, is deportation provided for in our laws?
If deportation for the offence committed is not in our books then it is not law. If found guilty Schalhwl therefore needs not be deported. In any case whether to deport him or not is the question for the courts to decide.
We should all desist from the temptation of stereotyping people’s nationalities, region of origin or their race.
I pray that the media, the president, Malawians and HRCC respect the rule of law at all times. May the rule of law take its course for Schalhwl and Chimdima.
Get well soon Chimdima and with that I rest my groanings.
The dogs attacked Chimdima last Wednesday when he was reporting for duties at the Dean Van Schalhwl's residence. He works for Schalhwl as a watchman.
To add insult to injury there are reports saying that Schalhwl illegally obtain the victim’s HIV status details to find out if the dogs did not contract HIV from his blood.
This is a horrific incident. Understandably it has resulted into protests against Schalhwl. My heart goes out to Chimdima and his family. I wish him quick recovery. Media reports say Police have charged Schalhwl with negligence and keeping dangerous animals.
However, my groanings are against the way the media, the president and the Human Rights Consultative Committee have reacted to the incident. I take issue with the language used by the protestors.
President Mutharika is quoted to have said, “I won’t accept foreigners to come here and treat Malawians worse than dogs…I don’t have room for white people treating Malawians like dogs,”. President Mutharika added describing Malawi as “a black country for black people.”
The umbrella body for human rights institutions in Malawi, the Human Rights Consultative Committee (HRCC) has asked the Malawi government to immediately deport Van Schalhwl.
It is important to say that the right to freedom of expression is a fundamental human right. It is commonly regarded as an indicator of democratic development in the wider world and rightly so. And indeed thus what I am just exercising here.
However I don't understand how people can protest while sending out violent hate messages themselves against some people group.
It is my view the president utterances are complete off the mark and that is an understatement.
In a situation like this, where Schalhwl is in the hands of the Police and the courts, I did expect the president to desist from commenting on the story.
Mutharika should have been the first one to place his trust in the Police and our judicial system. It is worrying to have the president go on a rant against “foreigners” and “white people” while the arm of the law is taking its due process.
I further got dismayed with the media constantly describing Schalhwl as “the white man”. It is shocking to read:
“Lawyers representing the white man”,
“there have been fears that angry Malawians would attack the white man”.
For the media to constantly refer to Schalhwl as “the white man” and a “foreigner” is being utterly unprofessional. Where is our code of ethics! Such reporting incites violence against some people. Inciting hatred should be the last thing the media can do.
In a progressive Malawi the rule of law means the people shall be ruled by the law only and subject to it.
The HRCC demands for the government to immediately deport Van Schalhwl should have reference to our laws otherwise such a demand would be completely unfounded. In a case like this, is deportation provided for in our laws?
If deportation for the offence committed is not in our books then it is not law. If found guilty Schalhwl therefore needs not be deported. In any case whether to deport him or not is the question for the courts to decide.
We should all desist from the temptation of stereotyping people’s nationalities, region of origin or their race.
I pray that the media, the president, Malawians and HRCC respect the rule of law at all times. May the rule of law take its course for Schalhwl and Chimdima.
Get well soon Chimdima and with that I rest my groanings.
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