Themicroloanfoundation's Blog


Malawian Government uses debt to buy presidential jet
April 26, 2010, 10:28 am
Filed under: Uncategorized

The finance ministry today announced that the H.E. President Bingu wa Mutharika’s new jet is being paid for with a loan from an un-named foreign bank. With a 25 million USD price tag, it runs equivalent to more than 2/3 of Malawi’s direct budget support from the UK. Finance Minister Ken Kanondo explained that the new jet will actually save money in the long run by reducing the cost of chartering planes for presidential trips.

This is would be fine and well if Mr. Kanondo had not prefaced that statement by saying they had just sold the old presidential jet. This begs the question of why Bingu would have been chartering planes in the first place if there was already a presidential jet.

“This transaction, which is shrouded in secrecy, has been named as one of the major cause of the forex shortage being experienced in the country.”- Nyasa Times, December 2009

Well done, guys.

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1 Comment so far
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How many AIDS patient can you treat for the price of a Presidential-quality jet?

Comment by M Clement Hall




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