LILONGWE (Maalwi NewsNow)-Malawi government has over K2 billion arrears with the commercial banks for Members of Parliament personal vehicle loans and ccannot extend more loans to MPs, Treasury Secretary Ronald Mangani has told Speaker.
Appearing before a Finance and Budget Cluster meeting, Treasury Secretary Ronald Mangani confirmed he has written the Speaker about the stop of MPs loans.
But MPs for Lilongwe Mpenu Makala Ngozo and MP for Kasungu North Beatrice Mwale warned that if there is no solution to the issue, the Speaker and government will find it tough when the budget meeting resumes next week.
Makala Ngozo and Mwale wondered why Treasury has promised to give out loans to ward councillors who have no terms of conditions.
Government has promised to give councillors loans to buy motorcycles worth up to K5 million each to improve their mobility.
Since the opening of Parliament last month, MPs from both sides have been posturing to make Treasury give them the General Purpose Fund (GPF) loans of K5 million each which they are supposed to repay between now and 2019.
If all the 193 MPs get the GPF the total bill comes to K1.4 billion at the 40 percent rate the banks are charging.