Thursday, December 9, 2010

MCP raises concerns over RBM independence

The Malawi Congress Party (MCP) has expressed concern over the independence of the Reserve Bank of Malawi (RBM).
This follows government's plans to ammend the RBM Act of 1989, and put in new mechanisms aimed to position the central bank in tandem with current financial trends.
Among other measures, the new Bill proposes to set boundaries for Board of Directors and other parties with influence over the bank.
But MCP MP for Lilongwe-Mapuyu South, Joseph Njovuyalema, said while Section 4 (a) of the RBM Act asserts independence of the Central Bank, the truth is that the Minister of Finance and Head of State and Government has influence over its policies.
"This is our concern as the Malawi Congress Party. The Bank is not independence at all," said Njovuyalema, speaking for the opposition MCP in Parliament.
The MCP shaddow Finance Minister said, among other individuals, the Finance Minister had powers to issue directions, change policy, and supervise activities of the bank, acts he said compromises on RBM independence.

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