Donors cancel debt, but warn against third term

European donors announced cuts in Malawi's debt burden this week, but at the same time expressed reservations over constitutional moves that would allow President Bakili Muluzi to stand for a third term. Germany on Wednesday cancelled US $240,000 of Malawi's debt as part of the World Bank and International Monetary Fund's (IMF) Highly Indebted Poor Countries (HIPC) initiative. It followed an announcement by Italy a day earlier that it would write off Malawi's total debt of US $226,667. Germany's Ambassador to Malawi, Franz Ring, told IRIN that the debt cancellation, and Berlin's ongoing disbursements of aid and emergency food relief, were development programmes that had no direct link to the political situation in the country. Malawi is among 40 of the world's poor countries identified for debt relief under the HIPC initiative. Ring said Germany was prepared to continue its close economic cooperation with Malawi. "We expect the German aid disbursements for the fiscal year 2002/2003 to be in the range of 37 million Euro (US $35.4 million). Germany has committed about 100 million kwacha (US $1.3 million) for assisting Malawi in its present food crisis," he said. The debt reduction by Germany and Italy comes a week before Malawi's parliament is expected to table a controversial amendment bill that would allow Muluzi to stand for a third term. Currently the constitution provides for only two five-year terms in office. Ring said he was proud of the support that Germany had rendered Malawi during its transition to democratic rule in the early nineties. "Germany is, however, concerned that these hard won freedoms, democratic principles and the procedures that govern them, are being undermined by recent developments in Malawi," he said. "Germany is particularly concerned about recent initiatives taken by the national assembly and notes the introduction of a proposed amendment to the constitution to remove the current provision preventing candidates for the office of president [from running] for more than two terms," he noted. "Germany joins the United States, Britain and the European Union (EU) in urging the government of Malawi to allow a full and wide-ranging public debate, conducted in an atmosphere free from intimidation or retribution, before any far reaching constitutional decisions are taken," he added. As the third term controversy deepens, Muluzi last month banned demonstrations related to the proposed constitutional amendment, and instructed police and the army to stamp out any violations of the ban. "Germany is concerned to note that restrictions have been imposed on assemblies and peaceful demonstrations in relation to the proposal," Ring said. The EU on Tuesday voiced its concern over the political developments in Malawi. "The EU recognises the right of the national assembly of Malawi to amend its national constitution in this way. Nevertheless, since a national constitution is an important safeguard for citizens' rights and a framework for stable governance, the EU urges the government of Malawi to ensure that there is wide and informed debate on this important issue conducted openly and with full freedom of expression," an EU statement said. On Wednesday, the High Court in Blantyre threw out an application by human rights organisations fighting against a possible third term for Muluzi. Judge Maxon Mkandawire said that he needed to hear substantive arguments from both sides on such a sensitive matter before granting an injunction against the government. Also on Wednesday, over 300 University of Malawi students at Chancellor College in Zomba, more than 60 km northeast of Blantyre, boycotted classes in protest against the proposed amendment bill. The bill was expected to be tabled in parliament this week, but is now expected to be presented on Thursday, 27 June.