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| National |
| UDF feeling debt burden |
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by
Zainah Liwanda, 04 December 2004
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09:23:19
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The ruling UDF, reputed for splurging cash during its campaign meetings in the run-up to the 20 May elections, has found itself in huge debts because party officials abused the privileges by going to different organizations for services on the party ticket without consent.
UDF Treasurer-General Khumbo Kachali has however described debt as a normal issue for organisations and individuals.
While acknowledging that the party is in debts, Kachali also says some of the debts are just an exaggeration aimed at tarnishing the image of the party.
The party owes a few organizations, among them, MBC to the tune of K12 million from advertisements placed for the May 20, 2004 elections. The UDF also owes undisclosed amounts to Mwaiwathu and Chitawira private hospitals, among other creditors.
In October High Court sheriffs impounded a car belonging to Blantyre District Governor Eric Chiwaya for K380,000 the party owed Fernando Motors of Chitawira in Blantyre. First Merchant Bank is also reported to have dragged the party to court, claiming about K12 million, for failing to settle an overdrawn current account.
Kachali said some debts were incurred by some party officials who would go to hospitals for consultation and treatment and hotels for accommodation on party ticket but without the party’s consent.
“Right now, as treasurer-general, I have written letters to hospitals and hotels that before admitting or checking in people, they should produce letters from either me or the secretary-general, because some people could just wake up and say I am a UDF official. I want to stay at Shire Highlands or Mt. Soche Hotel. This is a situation we are in,” said Kachali.
He said Mwaiwathu and Chitawira private hospitals have been paid some of the money, but complained about other creditors who overreact allegedly to tarnish the party’s image.
He said UDF owed First Merchant Bank about K500,000 in 1995 and wondered the motive of the bank to wait until 2004. He argued that the bank was supposed to communicate to the party informing it about the overdraft.
He said creditors who have approached the UDF to settle the debts have been paid “little by little”. Kachali said he was optimistic that all the debts would eventually be paid off.
He claimed all debts accrued from advertisements the party approved were settled, but said some debts were incurred by party officials such as district governors who would place the advertisements on party ticket without approval.
“Which campaign? Ask Eunice Chipangula [MBC’s Deputy Director-General]. I have been dealing with MBC directly myself and all the payments are upfront. But in some instances, certain governors would go there and place adverts on party ticket. Maybe some of these debts are because of this,” said Kachali, insisting that there was nothing strange with UDF debts.
Meanwhile, Kachali could not disclose sources of funding for the party, saying it is not “good” but pointed out that the party chair, Bakili Muluzi, is the principal financier.
But with all these debts, does the party have any future?
“Certainly yes. The party is still intact; it is just going through a process. The party is not threatened because we believe some of these creditors are taking us to court just to dent our image. We believe some of these are matters we could settle amicably,” said Kachali.
He said the UDF has instituted a finance and business committee which will look into the party’s debts.
“We have many companies which will be revamped and, above all, the party chairman has been supporting us and hope to get more assistance from him,” said Kachali.
On preparations for the forthcoming by-elections, Kachali said funding has been sent to campaign chairmen of the various constituencies where elections would take place.
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