MMD deputy national secretary Chembe Nyangu says his party is bankrupt because its sources of funds have dried.
And Nyangu says the UPND has become a dump for finished politicians.
But UPND spokesperson Cornelius Mweetwa says there is no merit in arguments that UPND is poaching members of MMD.
Nyangu yesterday said the financial constraints facing MMD would affect its survival.
"It is up to us who own the party to make sure that MMD gets back into power in 2016 by contributing funds. There should be a lot of sacrifice and volunteerism from all members. Without finances, it will be very difficult to run the party because there will be a lot of demands," he said.
"What we are going through is so painful. There are too many demands for money, for example we have court cases; we have by-elections involving our members, which are so costly. So, the demand for money is growing, meanwhile the sources are drying up."
Nyangu said monthly contributions from MMD members of parliament were not enough to sustain its operations.
"Our only source is Parliament, where our members contribute. Even for them they have got their own things to do; they have got families to look after. We are also losing members of parliament and each member of parliament we lose, it is loss of income to the party. Even those that will be expelled, it will mean that we will need money for by-elections," he said.
Nyangu said MMD leaders did not have foresight by failing to put up investment ventures for the party.
"All political parties in Malawi and Zimbabwe have businesses. Some of the buildings you see in Zimbabwe are for Zanu-PF. They have seconded their offices there. In South Africa, the ANC has buildings, one of which houses its headquarters. Lack of foresight among leaders in MMD has created these financial difficulties we are facing today," he said.
And Nyangu said UPND was cannibalising MMD by getting its members.
"What kind of a working relationship is this when it is only them who are benefiting? UPND has become a dumpsite. At the rate our members are moving to UPND, it is clear that they don't want us to have a good working relationship. They are cannibalising MMD," he said. "Dr Canisus Banda was of no value to the party (MMD). He lobbied to be in NEC. We wanted Kapembwa Simbao to take the position of chairperson for health after Lumba Kalumba asked to be excused from the party. Now he goes to UPND as vice-president, where are people like Request Muntanga who have fought so hard in the party?"
Nyangu said MMD members defecting to UPND would not add any value to the party.
"Look at Dr Banda, it is just a name that he comes from Eastern Province. He has never stepped his foot there in Vubwi. He was born here in Lusaka Chipata compound and went to school at Munali Boys Secondary and later on went to the University of Zambia," said Nyangu. "How can he say that he comes from there? Look at what has happened to William Banda? He has taken problems there (UPND)."
But Mweetwa wondered how UPND could cannibalise such a 'big' party as MMD.
"To begin to call each other names such as dumping ground inappropriate. For us as UPND, we are committed to promoting a healthy working alliance with the MMD, for the sole reason that we need a strong opposition in order to provide strong checks and balances to this government," he said. "How can we swallow such a big party as MMD?"
Mweetwa said the UPND leadership would not discriminate against those that joined the party and would not be held hostage for receiving members from the MMD.
"It should be made very clear to the nation. UPND does not negotiate for positions with people. It is up to the National Management Committee that we have these people to join us. It should also be known that at the time the media got information about Dr Canisius Banda joining UPND, in effect he had joined a long time ago… This is a person we have been working with for a long time and there are so many people from not only MMD. So to say that we are cannibalising MMD, I think that is a self-defeatist position," said Mweetwa. "Why is it that when somebody joins UPND, there is so much dust raised, but when people join PF there are celebrations?"
Meanwhile, MMD youths have said UPND leader Hakainde Hichilema is a time waster who is digging his own grave.
Reacting to Hichilema's statement that MMD should not cry foul when its senior party members join his party because it was one way of consolidating the opposition in the country, MMD Die-Hard youth coordinator Bowman Lusambo said Hichilema was a selfish and greedy person that could not be trusted.
He said the party was aware that Hichilema was working to weaken the MMD and that his treachery would soon be exposed.
"HH (Hichilema) must grow up and realise that his tribal and his regional party will never form government and he will never rule. He's just wasting his time because the people of Zambia have passed a vote of no confidence in him. HH must come to his senses and realise that his regional party has been rejected by the people of Zambia," Lusambo said.
He said the PF-UPND pact failed because of Hichilema overrating himself and disrespecting experienced and mature leaders.
Lusambo said if Hichilema was an intelligent person, he could have realised that the only way to form government was working with Nevers Mumba.
"The PF-UPND pact collapsed because HH was overrating himself and disrespected President (Michael) Sata. He wanted to capitalise on his age and education but PF was intelligent and saw through his crookedness. President Sata is experienced and he's a schemer but HH wanted to be president of the pact even when he knew that it's President Sata who was popular," he said.
Lusambo said the MMD youth recognise President Sata and Mumba as the country's politicians.
He urged Hichilema to emulate President Sata, who started a party from scratch and spread nationwide like a bush fire.
Lusambo said Mumba had experience in government leadership unlike Hichilema who inherited UPND and lacked experience.
Hichilema has justified the defection of MMD members to UPND, saying it is one way of consolidating the opposition. Hichilema said he had no problems with MMD members joining UPND and vice versa as long as they were still in the opposition.