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| Business |
| Civil society writes Parliament on Admarc |
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by
Ayam Maeresa, 12 September 2002
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Civil society organisations have issued a joint sub-mission to Parliament rejecting the proposed privatisation of the Agricultural Development and Marketing Corporation (Admarc).
Eighteen representatives who met on Monday in Limbe to discuss a study report by Khwima Nthara, an economics lecturer with the University of Malawi on the effects of Admarc’s privatisation, said there was no doubt that interest of the poor will be overshadowed by desire for profits.
The group said though recognising the concerns of those advocating for the sale, a privatised Admarc will be too profit-oriented.
It said even if the government was to buy the social services, it would be costly. There is no guarantee of a continued existence of a privatised Admarc, said the group.
“Taking into consideration the aforesaid, we recommend that Admarc should not be privatised. Instead, it should operate as a commercial entity under the current status of a statutory corporation,” said the group.
Drawn from organisations such as Nkhomano Centre for Development, World Vision (Malawi), Churches Action in Relief and Development (Card), Maphunziro Foundations, Malawi Congress of Trade Union (MCTU), Consumers Association of Malawi (Cama) and Oxfam, the group proposed that an independent broad-based board be put in place to run Admarc on commercialised lines.
Said the group: “We are making this proposal in order to address the problem of political interference that has, to a large extent, contributed to Admarc’s problems.
To ensure that the appointment of the board is also free from undue influence, it proposed legal reforms to the process of appointing board members, without the influence of the executive.
“Leaving things as they are today will be folly but rushing for wholesale privatisation will again be folly,” said Nthara in an interview. “There is need to strike a balance.”
Oxfam programme representative in the country Nellie Nyang’wa said that speedy privatisation of the corporation will disadvantage the majority of Malawians, especially those in rural areas.
Under pressure from donors who are accusing it of wasting resources by continuing subventing the loss-making grain marketer, government plans to start the privatisation of Admarc next year. |
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