Democratic Progressive Party presidential aspirant, Dalitso Kabambe, has been dressed down by International Monetary Fund for leading a clandestine campaign that doctored financial figures at Reserve Bank between 2018 to 2020. This was done deliberately to project a positive economic situation as way of arm twisting IMF to disburse more funds under the Extended Credit Facility (ECF).
Based on those reporting anomalies Malawi was supposed to pay back K58.7 billion to IMF. However, Malawi has been exempted from paying back that money owing to sound economic governance by the current leadership of Lazarus McCarthy Chakwera.
Currently, the Chakwera led government is working tooth and nail to bring the economy which was left in tatters, back on it’s feet.
A statement signed by IMF Press Officer Tatiana Mossot dated 17th November, 2022 revealed that Malawi has been exempted from paying back the money because the current administration has undertaken several corrective measures to remedy the situation and strengthen RBM’s reserve management.
The statement added that Malawi qualified for the waiver because the Chakwera led administration has also embarked on large macro economic adjustment and structural reforms to rebuild gross official reserves.
The IMF board mentioned the dismissal of the former governor of RBM from office in July 2020, completion of mid June 2022 special audit of RBM’s foreign exchange reserves for the first three reviews under the 2018 ECF arrangement and confirmed the non complying disbursements, publication of restated financial statements for financial year’s 2018 – 2018 and 2019 – 2020 in accordance with the 2021 safeguards assessment conducted by the IMF as well as improved data reporting to the fund as additional factors that forced the board to grant the waiver.
“In view of the authorities commitment to provide timely and acurate data to the IMF in the future and the remedial actions already taken, the executive board granted the waivers for the non observance of the performance criterion on the floor on NIR. The remedial actions taken and the additional corrective measures to be undertaken are contributing to rebuilding the reserves assets of the RBM and are therefore appropriate to achieve the objectives under the 2018 ECF arrangement,” says the statement.
The statement clears mist on what really happened because Kabambe has been lying to his followers on social media saying those who accused him are merely ignorant.
He is currently answering cases in court related to the malpractice. This dwindles his chances of attaining the party presidency let alone being national leader after 2025 elections.