Malawi Revenue Authority seals oldest media house, Times Group offices over taxes

The Malawi Revenue Authority (MRA) Friday descended on the country's oldest media house, Times Group, and sealed its offices at the company's Headquarters in Blantyre over taxes.

A statement signed by MRA's Head of Corporate Affairs, Steven Kapoloma, said the revenue body had carried out the exercise due to Times Group's failure to settle a tax liability amounting to around 915,000 U.S. dollars in taxes, interests and penalties.

Kapoloma said the debt was an accumulation of Value Added Tax, Corporate Tax, Fringe Benefit Tax, Withholding Tax, and Pay As You Earn for specified periods between January 2011 and March 2016.

"The distraint action relates to recent tax liabilities uncovered through a comprehensive audit," said Kapoloma. He added, "The company has history of non-compliance since 2009 and has always sought court injunctions to frustrate efforts by MRA to collect taxes due."

MRA has since seized the Times Group's property including vehicles to force the company to pay the dues.

But Times Group Editor-in-Chief, George Kasakula has described MRA' s action as a politically-motivated move and "an act of impunity" perpetrated by the Malawi government.

Kasakula claimed in the local media on Friday that Times Group had been paying taxes every month and he added that the media house was being "punished for publishing the truth about the maize scam, and that they "will continue publishing and broadcasting the truth".

Times Group, also known as Blantyre Print & Publishing Company Limited, was the first to break the scam concerning 100,000 Metric Tons maize procurement by Malawi government from Zambia at 34.5 million U.S. dollars, a price civil societies in Malawi termed "exorbitant".

Following the media report on the maize scam a number of actions have taken place including instituting of a special commission of inquiry on the matter by President Peter Mutharika and the report on the inquiry is expected by January 31.

Meanwhile, the Malawi High Court Thursday granted an injunction restraining Malawi Minister of Agriculture, Irrigation and Water Development, George Chaponda, from discharging his duties until the investigations on the matter were over.

Malawi government, through the Attorney General, Kalekeni Kaphale, are contesting the court ruling describing it as having "fundamental errors".

Meanwhile, the Media Institute for Southern Africa (MISA) Malawi Chapter has described MRA's action as disturbing and Ill-timed saying it "can easily be construed as an attempt by government to stop the media house from further publication of the 'maize gate' stories specifically and silence critical voices generally".

A statement signed by MISA Malawi chairperson, Thom Khanje, dated January 13, 2017, said the issue of unpaid taxes could have easily been resolved through mutual business negotiations.

Said Khanje in the statement: "The move by MRA will deny Malawians access to relevant information and likely to tarnish the image of the Peter Mutharika administration."

The MISA Malawi chair has since appealed to MRA and President Mutharika to re-open Times Group offices and allow for a progressive means of resolving the tax issues saying such a move would help to clear the impression that "government has started taking systematic steps to suffocate the media, thereby strangling our young democracy in the process".

Times Group is the oldest private media institution in Malawi and its existence dates back to 1895.

It was bought by Malawi's first leader, Hastings Kamuzu Banda, from the British colonial leaders and it has changed ownership overtime.

The media house has been running three papers namely: The Daily Times, a weekly paper, Malawi News and another, Sunday Times.

Of late, Times Group has also added to its catalogue of outlets Times Radio and Times TV which broadcast programs many deem to be too critical on government. Endit