MCC Places Operational Hold on Malawi Compact

The international community continues to withhold aid to Malawi following what they have described as the country’s poor economic policies, deteriorating human rights standards and bad governance.

In the latest development, the Millennium Challenge Corporation (MCC), a U.S. Government agency, has announced that it is deeply concerned by recent events in Malawi and is placing an immediate hold on all program operations in order to review its partnership with Malawi, including whether to recommend to its Board of Directors to suspend or terminate its assistance. MCC provides development assistance to countries that demonstrate a commitment to good governance.

The announcement was made through a statement that was released soon after the Malawi government cracked down peaceful demonstrations on July 20 and 21, a development that left 18 people dead with scores of others injured.
 
The announcement also came hot on the heels of an SOS from leaders of Civil Society Organisations (CSOs) in the country who have reportedly gone into hiding following death threats from unknown persons.

The MCC statement reads in part: “…At the core of an MCC partnership is the expectation that countries maintain a demonstrated commitment to political pluralism, human rights, and the rule of law throughout the life of the program…MCC’s operational hold will bring to a halt all ongoing Compact activities during the review.”

MCC signed a five-year, $350 million Compact with the Government of Malawi on April 7, 2011.  The Compact is focused on Malawi’s power sector and is expected to benefit nearly 6 million Malawians.  By reducing power outages and technical losses, enhancing the sustainability and efficiency of hydropower generation, and improving service to electricity consumers, the Compact is designed to reduce energy costs to enterprises and households; improve productivity in the agriculture, manufacturing and services sectors; and support the preservation and creation of employment opportunities in the economy.

The recent demonstrations, meant to be peaceful, left property worth millions of kwacha destroyed and Democratic Progressive Party offices looted in all the country’s townships.
The demonstrations led to arrests of over 200 people, including three journalists. The charges for the journalists included arson and assaulting of a Police Officer.
The police also severely beat up and wounded innocent citizens and 21 journalists who sustained multiple deep wounds due to gun butts.

MISA Malawi condemned the cavalier and brutal manner in which the police handled the situation. In a statement that was signed by the Chapter’s acting Chairperson Anthony Kasunda, MISA Malawi said “…we would like to appeal to Malawi Police Service to respect journalists in their line of duty. Journalists have a key responsibility to objectively report on proceedings of the demonstrations without fear or intimidation from any quarter...MISA Malawi condemns this action and appeals to the police to protect both civilians and journalists who are exercising their constitutional right to express themselves through peaceful demonstrations.”
 
The peaceful demonstrations were organized in protest against worsening economic and political situations in Malawi. Currently, there is persistent acute shortage of fuel which has lasted close to six months. Human rights bodies, including the donor community have raised concern over what they have described as deteriorating standards of human rights in the country, a development that has forced donors to withhold aid to Malawi. //End//
 
Reagan Malumo
Programme Specialist: Media Freedom Monitoring and Research
Media Institute of Southern Africa (MISA) Regional Secretariat
21 Johann Albrecht St
Private Bag 13386
Windhoek
Namibia
Phone: +264 61 232 975
Fax: +264 61 248 016
Mobile: +264 81 311 2626
Official Email: reagan(@)misa.org
Private Email: reagan32002(@)yahoo.com

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