MEJN Trains Lawmakers on Public Debt Management Oversight
The training is part of a 12-month project called "Increasing African voices to shape Special Drawing Rights agenda."
MPONELA, Malawi -- Members of the Budget and Finance Committee of Parliament and those who sit at the SADC Parliamentary Forum took part in a two-day capacity-building workshop in Mponela, Dowa, aimed at strengthening their oversight role in public debt management and understanding various debt instruments and processes, writes Winston Mwale.
The workshop , from Friday to Saturday, was organized by the Malawi Economic Justice Network (MEJN) in collaboration with the African Forum and Network on Debt and Development (AFRODAD), with funding from the Gates Foundation.
It is part of a 12-month project called "Increasing African voices to shape Special Drawing Rights agenda."
In her opening remarks on Friday, Bertha Phiri, Executive Director of MEJN, stated, "We are so delighted to host this very important capacity-building workshop which aims at strengthening the capacity of you our distinguished Honorable Members of Parliament on public finance management for Malawi and also the SADC Public Finance Management (PFM) Model Law."
Phiri highlighted that the newly-enacted Malawi Public Finance Management Act (PFMA) of 2022 brought critical functions for the Budget and Finance Committee regarding its oversight role in debt contraction processes.
"As you are aware Honorable Members that Malawi reviewed its PFMA in 2022 and the newly enacted law brought in some critical functions of the Budget and Finance Committee in as far as its oversight role in debt contraction processes is concerned," she said.
Specifically, Phiri pointed to Section 22 of the law, which "amplifies the role of Parliament by enshrining the powers of the Budget and Committee as follows: One, that the Budget Committee shall inquire into any government financial matter; and that the Budget Committee shall have full access to government records relating to revenue, expenditure, and any other public resources which are relevant to an inquiry."
"Just these two, Honorable Members - they are very critical if we are to have fiscal prudence in this country," Phiri emphasized.
Regarding the SADC PFM Model Law, Phiri stated, "The SADC Model Law on Public Financial Management is a significant legal instrument aimed at enhancing financial governance and transparency within the Southern African Development Community (SADC) region."
"The rationale behind the law arises from existing legal and regulatory gaps in the current financial management systems across SADC member states. And the primary objective is to empower SADC national parliaments to carry out their legislative, budgetary, and oversight functions transparently and efficiently."
Phiri added, "The Model Law serves as a benchmark and guiding instrument for national parliaments to strengthen their domestic legal frameworks related to public financial management. It also aims at addressing challenges that most economies within the SADC region are facing. You will agree with me Honorable Members that despite economic growth in several SADC countries, there are symptoms of economic market failures, excessive budget deficits, and poor debt servicing."
"Without preempting much on the presentations that have been outlined before us, the gaps signify the important role that Members of Parliament have in safeguarding fiscal prudence both in country and within the SADC region," she said.
Phiri stated, "It is against this background that MEJN with financial support from the Gates Foundation through AFRODAD organized this capacity-building workshop for us just to rekindle the fire and remind each other on our expected roles and also raise awareness on the SADC PFM Model Law in comparison with the current PFM Law for Malawi to address gaps in the national legislation."
She expressed gratitude to AFRODAD, saying, "At this point, allow me to express our heartfelt appreciation to AFRODAD for the technical and financial support rendered to MEJN without which this workshop would have not been possible."
Phiri explains:
Gladys Ganda, Chairperson for the Budget and Finance Committee, acknowledged the challenges in implementing the PFMA.
The two-day workshop aimed to equip Members of Parliament with the necessary knowledge and skills to effectively oversee public debt management, understand various debt instruments, and align with the SADC Public Finance Management (PFM) Model Law.