Bank of Zambia seeks autonomy
Bank of Zambia seeks autonomyBy Ndinawe Simpelwe in Solwezi
Tue 28 June 2011, 09:10 CAT
THE Bank of Zambia has submitted a proposal to the government to make the institution independent from the executive. Bank of Zambia (BoZ) secretary Mathew Chisunka said the proposed Act would have the responsibility of all monetary policy.
Chisunka said independence of the central bank would ensure maintenance of a sound banking system and efficient payment system in the country.
“The Act will make the Bank of Zambia conform to the standards of central banks in the SADC region as most of them are independent,” said Chisunka during a seminar organised for journalists by the central bank recently.
He said some salient elements of the proposed BoZ Act would include provisions relating to adequate power and independence.
“We hope to see the central bank have adequate mechanisms for good governance, accountability to government, Parliament and the public,” he said.
He said the proposed Act included the security of tenure for the governor and the two deputies.
Chisunka said BoZ had proposed that the appointment of the bank's governor be approved by Parliament.
“We want a situation where appointment of the BoZ governor will not rest in the powers of the President alone. We want the President to propose a name that has to be approved by Parliament,” Chisunka said.
He said it would be important to have the Act in place as it would have clear functions and powers with clear limitations.
Chisunka also said the proposed Act would help the country prepare for the proposed central bank for the region.
He said SADC was supposed to have one central bank by the year 2018 and Zambia needed to prepare for it.
He said the independence of the central bank would improve the governance of the institution.
He said good governance of the central bank was important because there were a number of scandals related to poor governance and corporate failures.
He said at the heart of scandals and corporate failures were effectiveness of the boards, directors' remuneration, financial reporting, risk assessment and management processes.
Chisunka said others included accountability of accountants, white collar crime and effectiveness of audits.
Labels: BANK OF ZAMBIA, SEPARATION OF POWERS
posted by MrK @ 3:52 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home