Kabambe Accuses Government of 'State-Sponsored Criminality' Over Forex Crisis

UTM President Dr. Dalitso Kabambe has accused the government of turning Malawi's foreign exchange management into "state-sponsored criminality", claiming the collapse of supply and demand for the dollar has fueled parallel markets.

He made the remarks on Saturday in an exclusive interview on Times Television. Kabambe, a former Budget Director in the Ministry of Finance, said the situation is not complex.

"It does not need a rocket scientist to fix forex policy. I am wondering how the DPP is managing the economy now."

He argued that fiscal, exchange rate, and monetary policies are the benchmarks to curb hyperinflation and dismantle parallel markets, further warning that failure to balance food and non-food inflation requires urgent scrutiny.

He accused the government of being the "biggest culprit" in forex mismanagement, citing excessive spending that drives dollar demand. He noted that despite inheriting a good farming season, the DPP risks repeating past mistakes.

"Bingu wa Mutharika left a template, opening 1,000 hectares for irrigation farming. The current administration should have built on that."

Turning to higher education, Kabambe revealed that 90 percent of public university students come from poor households, struggling to afford tuition.

"Even the current K600,000 fee is a burden. Malawi has the highest global unemployment rate at 91 percent."

He described the K88 billion allocation to the Office of the President in the last fiscal budget as "exaggerative", noting that President Mutharika is not fond of external travel compared to his predecessor Lazarus Chakwera.

On the June 10, 2024 Chikangawa plane crash, Kabambe welcomed Parliament's decision to institute a fresh inquiry, calling it a step towards accountability.

There was no immediate response from the DPP Spokesperson.