September 28, 2021

CDEDI claims politics takes centre stage at RBM

One of the country’s civil right’s organization, Centre for Democracy and Development Initiatives [CDEDI], has asked the Reserve Bank of Malawi[RBM] to prove the organization wrong that politics has taken a centre stage at the Reserve Bank of Malawi [RBM] since information is being leaked while its external auditor is doing its job.

CDEDI is asking RBM to explain the deafening silence from the Office of the Governor, Dr. Wilson Banda, at a time when private and confidential information has been leaked, and is now in the public domain.

The organization is asking Dr. Wilson Banda why his office has accepted information such as his salary and that of his predecessor, Dr. Dalitso Kabambe to be in the public domain when such information is supposed to be private and confidential.

Former RBM Governor, Dr. Dalitso Kabambe is at the centre of leaked audit information

In a letter to Dr. Wilson Banda, the new Governor of RBM dated 28 December 2020 signed by its Executive Director, Sylvester Namiwa, CDEDI is seeking clarification on why the Chief Internal Auditor had reservations with the hiring of Deloitte as external auditors to carry out a forensic audit and the reasons why the auditors are reporting to Dr. Wilson Banda as Governor of the RBM directly, when governance practices demand that the Chief Internal Auditor oversees the audit process and reports directly to the Board.

CDEDI is also asking the office of the Governor to explain why it has chosen to use his entry salary as Cap, to force officers willy running contracts against their salaries in the Central Bank in line with the Cap, saying this is against existing salary structure within the bank and the bank ought to explain the reasons why people must take a salary cut, otherwise, that is an illegal move on the part of the bank.

The organization is reminding Dr. Wilson Banda that as the current occupant of a public office that was established by the Reserve Bank of Malawi Act of 1989 with a very clear code of conduct to be respected and adhere to, including a very clear channel for communication, it is worth pointing out right that the RBM just like other banks, is a corporate body with integrity to protect.

…….”CDEDI is demanding your office to issue a statement to give the general public accurate information or risk being labeled as an accomplice in all this,’’…..reads part of the statement.

CDEDI says the organization and all well–meaning Malawians are all aware of a forensic audit going on at the RBM whose report will be out by February 2021, before even the draft report is released, bits and pieces of the same have already found their way into the social media outlets, saying it is even mind boggling to note that Dr. Wilson Banda, Governor of RBM and the whole communications team have kept quiet pretending nothing has found its way out of the Central Bank’s custody.

The organization considering the deafening silence over developments surrounding the central bank’s information making rounds in the social media, is looking forward to hearing from Dr. Wilson Banda in the next seven days on the issues that have been raised in the letter, saying the matter has attracted huge public interest and anxiety on whether or not the man at the helm of the monetary policy has the required integrity, competency and trust to steer the ship to safe waters.

By Vincent Gunde

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