Reserve Bank Bill porous—Chiphiko

Chairperson of the Budget and Finance Committee of Parliament Rhino Chiphiko says the Reserve Bank Amendment Bill has too many holes which need to be sealed before it can be accepted in Parliament.

Speaking ahead of its tabling, Chiphiko said Malawi, for instance, is not ready to reduce the ‘ways and means’ of borrowing to 10 percent.

“As a country, we are very volatile, already we are struggling with the 20 percent and you are talking of ten percent, won’t that choke the country?” he said.

The Bill, which was expected to be tabled on Tuesday, seeks to limit government representation on the board to two and remove the Auditor General. It also wants to increase board members from four to seven. Furthermore, the Bill also wants to reduce the money government borrows from the Reserve Bank from 20 percent to 10 percent.

“You see, all these amendments cannot work.       Why should the Auditor General be left out of such an important board? Given the limited resources Malawi has, why should we bloat the board instead of reducing it? As a committee, we feel that, the lending amendment must be reconsidered if this Bill is to pass,” he said.

According to Chiphiko, the Auditor General should be allowed to audit any government department as per the Constitution without any limits.

‘’How can the governor be the chairperson of the board? All these anomalies must be corrected before this Bill can pass and one governor is enough,” he said.