RBM Bill referred to committee

Minister of Finance, Economic Planning and Development Goodall Gondwe on Wednesday sent the Reserve Bank of Malawi (RBM) Amendment Bill to the Budget and Finance Committee to iron out issues that members of Parliament (MPs) could not fully comprehend.

The bill was tabled on Tuesday, but general debate continued on Wednesday with recommendations from several MPs that the bill should be referred to a relevant committee because it was too technical in nature.

There were some MPs who felt the changes in the composition of the board of directors, where there will no longer be representatives from government, meant the Minister of Finance would have no say in the economic policy of the country.

Ntchisi East MP William Kalima said by implication, the amendment meant the board would be dominated by staff from RBM, who were not elected, presiding over the monetary policy of the country’s economy.

But Gondwe said there would never be a situation when the RBM governor would be the manager of the economy as his duty was chief adviser to government and the Ministry of Finance would remain responsible for  financial policy.

“The central bank has three functions, to issue currency, manage the monetary policy and management of foreign reserves. I will refer the bill to the committee, but I should not be seen to be bowing down to pressure; it’s what the House wants,” he said.