PRESIDENTS (SALARIES AND BENEFITS) (AMENDMENT) BILL, 2012

PRESIDENTS (SALARIES AND BENEFITS) (AMENDMENT) BILL, 2012

MEMORANDUM

This Bill seeks to amend the Presidents (Salaries and Benefits) Act in order to

PRESIDENTS (SALARIES AND BENEFITS) (AMENDMENT) BILL, 2012

ARRANGEMENT OF SECTIONS

Section
1. Short title
2. Amendment of long title to Cap. 2:02
3. Amendment of s. 2 of the principal Act
4. Replacement of s. 4 of the principal Act

5. Amendment of s. 5 of the principal Act

6. Amendment of s. 6 of the principal Act
7. Amendment of the Schedule to the principal Act

A BILL
Entitled

An Act to amend the Presidents (Salaries and Benefits) Act

ENACTED by the Parliament of Malawi as follows-

Short title

1.

This Act maybe cited as the Presidents (Salaries and Benefits)

(Amendment) Act, 2012.

Amendment
of long title
to Cap. 2:02

2.

The Presidents (Salaries and Benefits) Act (hereinafter referred to

as the principal Act) is amended, in the long title thereto(a) by deleting the words Vice-President and substituting
therefor

the

words

FirstVice-President,

Second

Vice

President:
(b) by deleting the words Vice-Presidents and substituting
therefor the words First Vice-Presidents and Second VicePresidents.

Amendment of s.
2 of the principal
Act

3.

Section 2 of the principal Act is amended by deleting the definition

of the terms former President or former Vice-President and VicePresident and substituting therefor the following new definitionsFormer President means the person who was duly elected and took
office as President of the Republic of Malawi;
former First Vice-President means the person who was duly elected and
took office as First Vice-President of the Republic of Malawi;
former Second Vice-President means the person who was duly
appointed and took office as Second Vice-President of the Republic of
Malawi..

Replacement
of s. 4 of the
principal Act

4.

Section 4 of the principal Act is revoked and replaced by the

following new section as section 4-

ame

Salary,
pension and
benefits of
Presidents,
etc;

4. - (1)

Subject to the other provisions of this Act-

(a) the President shall be entitled to-

(i)

such salary, which shall be tax free, as

Parliament may, from time to time,
appropriate to him [or her];

(ii)

the benefits and facilities specified in

Part I of the Schedule;

(b) the First Vice-President shall be entitled to the

salary, benefits and facilities specified in Part II
of the Schedule;

(c) the Second Vice-President shall be entitled to

the salary, benefits and facilities specified in
Part III of the Schedule;

(d) a former President shall, upon ceasing to hold

office of President, be entitled to a gratuity,
monthly pension, and benefits and facilities
specified in Part IV of the Schedule; but so
however that(i)

a former President who has served one

full term of office shall be entitled to a
gratuity and all other benefits;

(ii)

a former President who has served for

one term of office and is re-elected for
the second term but, [for whatever
reason][for
impeachment],

reasons
cannot

other

than

complete the

second term shall [access][ be entitled to

receive and enjoy] all benefits accrued in
the first term; and

(iii)

a former President who has served for

two consecutive terms of office shall be
entitled to gratuity only [after][for] the
first term of office and then gratuity and

other benefits [after][for] the second

term of office.

(e) a former First Vice-President shall, upon

ceasing to hold office of First Vice-President, be
entitled to a gratuity, monthly pension, and
benefits and facilities specified in Part V of the
Schedule;

(f) a former Second Vice-President shall, upon

ceasing to hold office of Second Vice-President,
be entitled to a gratuity, and benefits and
facilities specified in Part VI of the Schedule;
but so however that no gratuity shall be payable
unless the former Second Vice-President has
served in that office for a continuous period of
not less than six months.
[(2) The salary of the President shall not, without his [or her]
consent, be reduced during his [or her]term of office, and shall be
reviewed at annual intervals.]
Why are we deleting this provision?

(2) The salary, pension, gratuity and other benefits of the

President, the First-Vice President, [the Second Vice-President, a
former President, a former First Vice-President and a former
Second Vice-President] shall be a charge on the Consolidated
Fund.] See: section 183 (3) (a) of Constitution.

(3) Parliament, in consultation with the Minister of Finance,

[and upon advice of the body responsible for review of public
service remuneration] shall determine the salary, pension, gratuity
and other benefits of the President, the First Vice-President and the
Second Vice-President].
Why do we need this provision? Parliament already has
power to determine salaries, etc; under section 4 (1)

Amendment
of s. 5 of the
principal Act

5.

Section 5 of the principal Act is amended(a) in subsection (1), by deleting the words Vice-President
wherever they appear and substituting therefor the words First
Vice-President;

(b) by deleting subsection (2) and substituting therefor the

following new subsection as subsection (2)(2) A former President or former First VicePresident shall cease to be entitled to receive or enjoy the
whole or part of the pension, other benefits and facilities
conferred by this Act, if he [or she] ceased to hold office
upon impeachment in accordance with the Constitution..

Amendment
of s. 6 of the
principal
Act

6.

Section 6 of the principal Act is revoked and replaced with the

following new section as section 6-

Death of
President,
etc

6.

Where the President, First Vice-President [, former

President or former First Vice-President] who is entitled to benefits

conferred under this Act dies while in, or after having left office,
the surviving spouse and children under the age of eighteen years
shall be entitled [jointly] to the benefits specified in Part VII of the
Schedule.

Amendment of
s. 7 of the
principal Act

7. The Schedule to the principal Act is revoked and replaced

with the following new Schedule-

SCHEDULE

(ss. 4 and 6)

SALARY AND OTHER BENEFITS OF THE PRESIDENT,

FIRST VICE-PRESIDENT, SECOND VICE-PRESIDENT,
FORMER PRESIDENT, FORMER FIRST VICE-PRESIDENT
AND FORMER SECOND VICE-PRESIDENT

PART- I
The President

Benefits

Free housing accommodation in Blantyre, Zomba, Lilongwe and Mzuzu

and at Chikoko Bay in Mangochi

Free food

Free water

Free electricity

Free transport

Free medical services and personal physician for the President, spouse
and children under the age of 18 years

Free VVIP medical insurance for President, spouse and children under
the age of 18

Accident insurance for President, spouse and children under the age of
18

Free education for children under the age of 18

Free telecommunication services

Duty free importation of 4 motor vehicles for personal use during the
term of office

Utility vehicles

Motorcade escort

Presidential convoy

Protocol services

30 working days annual leave entitlement

Government

guaranteed

bank

loans

[Governments][Presidents] term of office

Staff

1 Chief of Staff

1 Deputy Chief of Staff

1 Aide-de-Camp (ADC)

1 Deputy Aide-de-Camp (ADC)

Special Assistants

payable

within

the

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Special Advisors

3 Private Secretaries

1 Household Manager

1 Assistant Household Manager

1 Head Security Guard

Security Guards

3 Store keepers

1 Head Chef

Cooks

1 Landscape Manager

4 Head Gardeners

Gardeners

House Staff

Messengers

1 Tailor

1 Dresser

1 Baggage Master

Travel Allowance

Travel allowance for the President, and two-thirds of the Presidents

travel allowance for the spouse

First Class Air Travel for the President and spouse where one is
available

Spouse to travel business class when alone but restricted to three times a
year for a duration not exceeding fourteen days each.

PART II

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The First Vice-President

Benefits
Tax-free salary equal to two-thirds of the Presidents salary
Free housing accommodation in Lilongwe, Blantyre and Mzuzu
Free food
Free water
Free electricity
Free telecommunication services
Free medical services for the First Vice-President
Free VVIP medical insurance for spouse and children under the age of 18
Accident insurance
3 Official motor vehicles
Motorcade escort by the Police comprising a lead vehicle and 2 motor
bikes.
4 utility vehicles
Duty-free importation of up to 3 motor vehicles every five years
Protocol services
Government guaranteed bank loans payable within the term of office
30 working days annual leave entitlement

Staff
Comptroller for the First Vice-Presidents residences
5 Special Assistants
2 Principal Personal Body Guards
1 Principal Personal Secretary
1 Guard Commander
6 Security guards
2 Messenger
4 Waiters/waitresses

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1 Storekeeper
3 Cooks
1 Chef
2 Chauffers
1 Head Gardener
4 Gardeners
Travel Allowance

90% Travel allowance of the serving President entitlement

Spouse shall be entitled two-thirds of the First Vice-Presidents allowance

First Class Air Travel for the Vice President and spouse where one is
available

Spouse to travel business class when alone, but restricted to two times a year
for a duration not exceeding fourteen days each time

PART III
The Second Vice-President
Benefits

90% of the serving First Vice-Presidents salary

Free housing accommodation

Free food

Free water

Free electricity

Free telecommunication services

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Free medical services

Free VVIP medical insurance for spouse and children under the age of 18

Accident Insurance

3 Motor vehicles (1- 4 x 4 and 2- saloons)

1 utility vehicles

Motorcade escort by the police with a siren and amber light

Duty-free importation of up to 3 motor vehicles every five years

Government guaranteed bank loans payable within the term of office

30 working days annual leave

Staff
2 Special Assistants (Grade G)
1 Personal Guard
1 staff supervisor
1 Personal Secretary
2 Messenger
Protocol services
Security guards
1 Storekeeper
2 Cooks
2 Chauffers
2Gardeners

Travel Allowance
o Entitled to travelling allowance of which spouse shall be entitled twothirds on Government sanctioned trips

PART IV

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Former President

Benefits
Tax-free lump sum gratuity 25% of total basic salary earned
Tax free monthly pension at 50% of the serving Presidents salary
Free housing accommodation
Modest office accommodation not exceeding four (4) rooms in number
3 motor vehicles (2- saloons and 1- 4 x 4)
2 utility vehicles for staff
Free water
Free electricity
Free telecommunication services
Free medical services and personal physician
VVIP medical insurance
Free local travel by scheduled air transport

Staff
1 Principal Administrative Officer
1 Special Assistant E/P4 Grade
1 Personal Secretary H/S8 Grade
1 Personal Body Guards
6 Security Guards
1 Household Supervisor (EO)
1 Assistant Accountant (EO)
1 Storekeeper
1 Messenger
1 Valet
1 House keeper
1 Steward

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4Housemen
2 Cooks
1 Chauffer
2 Drivers
Laundrymen
2 Gardeners

Other Benefits
Housing allowance for staff to be paid directly to concerned staff members
350 litres of fuel per vehicle every month
Medical Insurance for the former President, spouse and children under
the age 18 years

Duty-free importation, on application to the Minister responsible, of

the followingfoodstuff and beverages for personal consumption;
two personal motor vehicles every five years;
personal clothing;
books, newspapers and periodicals for personal use; and
any other necessities

On Government sanctioned official trip an allowance of which the spouse

shall be entitled to two-thirds or full board hotel accommodation [if on
Government sanctioned official travel]
First Class Air Travel for former President and spouse when travelling
together on Government sanctioned official trip
Government paid trip for maximum of 14 days once in a year

PART V
Former First Vice-President

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Benefits
50% of the serving First Vice-President salary
1 motor vehicle (4 x 4)
350 litres of fuel per month
Free housing accommodation
Free electricity
Free water
Free medical services and referral abroad
Free VVIP medical insurance for the former First Vice-President spouse
and children under the age of 18
Office space
Free telecommunication services
Duty free importation of one vehicle for personal use every five years
1 utility vehicle
Travel business class in the company of spouse on official Government
trips
External travel allowance of which spouse shall be entitled to two-thirds
of the former First Vice-Presidents allowance
Local travel allowance or full board hotel accommodation if on Government
sanctioned official travel
During medical trips half rate allowance of serving First Vice-Presidents

Staff
1 Cook
1Chauffer
1Gardener
Security guard

PART VI

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Former Second Vice-President

Gratuity calculated at 25% of basic salary earned since appointment
1- 4 x 4 vehicle not exceeding 3 litre engine capacity

PART VII
Surviving Spouse and Children

(a) The surviving spouse shall be entitled to lump sum gratuity of [60] months
basic salary[or pension, as the case may be];
(b) The surviving spouse shall be accommodated at [a State Lodge or] any other
suitable Government house for a period of six months;

(c) Children under the age of 18 shall continue to be supported with education in
Malawi by Government for a maximum period of 3 years, limited to high
school education;

(d) The surviving spouse shall access free medical services and referral abroad,
where necessary, for a period twelve months; and

(e) The surviving spouse shall access the following accruing benefits for a period
of six months 2 motor vehicles
2 body guards
Free electricity
Free water
Free transport and telecommunication services