Malawi Finance Minister cautions Western-style bonuses

Finance Minister Goodall Gondwe Finance Minister Goodall Gondwe

Finance Minister Goodall Gondwe on Friday said Malawi government continues to intensify its fight against fraud and corruption, because these societal evils create a huge disincentive for hard work, while at the same time mis-directing resources from productive use.

In addition, he said the payment of “Western-style bonuses” to top executives in the private sector must be a major government concern, because” it entails a waste of resources that could have been re-invested productively.”

He condemned the bonuses, saying it also worsens income inequalities, and creates disincentives in other equally important sectors of the economy.

“The practice in some companies to pay salaries equal to those received by executives in developed countries and grant them huge perks should be roundly questioned, just as it was questioned in those countries in the wake of the 2008 economic meltdown.

“Surely, salaries equivalent to US20,000 per month or more in Malawi cannot be conducive to the needed investments nor to continued social harmony.”

Gondwe discouraged what has emerged as a “persistent culture of demanding more and more of the limited government resources among the leaderships of some of our public institutions, through enhanced conditions of service.”

He said these demands are increasingly becoming insensitive to the economic depression that the country is passing though and, therefore, unpatriotic.

Source: Nyasa Times