AFRICA/MALAWI -The government spends $ 145 million for a military contract while 400 are needed for flood victims

Friday, 19 June 2015

Lilongwe (Agenzia Fides) - The government of Malawi announced plans to renegotiate a military contract of 145 million dollars with a single South African company, which had been canceled in 2013 on the grounds that it violated the law and was based on inflated prices. The agreement was signed in 2012 by former President Joyce Banda, and included, among other things, the provision to the armed forces of Malawi of speedboats to oversee Lake Malawi.
According to the agreement, the South African company obtained profitable contracts in the trade of fuel and the agro-food industry. In 2013 the agreement was, however, canceled by the newly-elected President, Peter Mutharika, saying that prices were inflated and was unsustainable for the fragile economy of the Country. Now the government has stated that it has revised the agreement and intends to renegotiate instead of deleting it.
This occurs in a moment when Malawi is having to deal with the consequences of the disastrous floods which occured in January. According to UN estimates, it will take five years and $ 400 million to rebuild the flooded areas. The official statistics of the Government of Malawi reported that about half a million homes were destroyed or damaged in the 15 (out of 28) districts affected by the floods. In May the Episcopal Commission "Justice and Peace" had launched an appeal to give priority to flood victims (see Fides 22/05/2015). (L.M.) (Agenzia Fides 19/06/2015)


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