Govt urged to set up mon­e­tary pol­icy body

Chronicle (Zimbabwe) - - Front Page - Leonard Ncube in Vic­to­ria Falls

ECON­O­MIST, Mr Ed­die Cross, has urged Gov­ern­ment to set up a pro­fes­sional mon­e­tary pol­icy com­mit­tee to ad­vise the Re­serve Bank of Zim­babwe (RBZ) and guard against fi­nan­cial leak­ages.

The Cen­tral Bank is haunted by al­le­ga­tions of cor­rup­tion, which saw four se­nior man­agers be­ing sus­pended re­cently.

Mr Cross said the coun­try had noted with con­cern lack of su­per­vi­sion in the RBZ ex­change con­trol depart­ment. He said Zim­babwe can learn from South Africa, which has an in­de­pen­dent mon­e­tary com­mit­tee tasked with ad­min­is­ter­ing the cen­tral bank.

“Sig­nif­i­cant progress has been made so far in terms of ad­dress­ing eco­nomic chal­lenges and the new Min­is­ter of Fi­nance (Pro­fes­sor Mthuli Ncube) has a full grasp of what is needed to sta­bilise the econ­omy and put the coun­try on a growth tra­jec­tory by 2019,” said Mr Cross.

“He will ad­dress is­sues holis­ti­cally es­pe­cially in terms of restruc­tur­ing the Re­serve Bank of Zim­babwe and en­gage­ment of multi lat­eral agen­cies, which we hope will be suc­cess­ful. One of the min­is­ter’s pri­or­i­ties should be to ap­point a pro­fes­sional mon­e­tary pol­icy com­mit­tee with req­ui­site skills to han­dle and ad­min­is­ter mon­e­tary pol­icy in the coun­try.”

Mr Cross said it was not dis­puted that the new dis­pen­sa­tion in­her­ited in­sur­mount­able fi­nan­cial prob­lems that need all cit­i­zens’ par­tic­i­pa­tion. He said the com­mit­tee will help to ad­min­is­ter ac­tiv­i­ties of the RBZ and bring in­fla­tion un­der con­trol as well as en­sure liq­uid­ity.

“The Pres­i­dent in­her­ited a huge num­ber of prob­lems and is now try­ing to tackle them sys­tem­at­i­cally but in the process he is en­coun­ter­ing re­sis­tance from el­e­ments of the old regime and those who have been ben­e­fit­ing from the past,” said Mr Cross.

He said the coun­try’s eco­nomic fu­ture looks bright and there is hope that the coun­try will be back on its feet by March next year. Mr Cross was speak­ing at the 4th In­ter­nal Con­trol Con­gress for Africa held in Vic­to­ria Falls. Au­di­tor Gen­eral, Mrs Mil­dred Chiri, who was guest speaker at the con­fer­ence, also of­fered her of­fice’s help to as­sist Gov­ern­ment in­ves­ti­gate fi­nan­cial leak­ages at the Cen­tral Bank.

The RBZ re­cently en­gaged au­di­tors to in­ves­ti­gate the ac­tiv­i­ties of four se­nior ex­ec­u­tives ac­cused of fi­nan­cial cor­rup­tion. The Fi­nance Min­is­ter re­cently formed a Fi­nance and Eco­nomic De­vel­op­ment Com­mu­ni­ca­tion Task­force headed by Mr Acie Lu­mumba but the com­mit­tee was dis­banded days later. In­ter­nal con­trol is there to en­sure com­pli­ance with ap­pli­ca­ble laws and reg­u­la­tions and also with in­ter­nal poli­cies and keep­ing records so as to de­tect and pre­vent fraud and cor­rup­tion among other vices. — @ncubeleon.

Mr Ed­die Cross

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