Reserve Bank of Malawi Governor, Dr Dalitso Kabambe says the RBM has developed mechanisms aimed at ending the pilferage of public resources which in recent years has been one of the major causes of the infamous plunder of government funds dubbed Cash-gate.
He made the remarks Friday in Lilongwe when he officially launched the High Value Alert Facility and the RBM 2018 Strategic Plan.
According to him, the High Value Alert Facility has been developed as an Short Message Service (SMS) and email alert system for all government transactions above K50 million.
In this system, Minister of Finance, Economic Planning and Development, Secretary to the Treasury, Accountant General, Budget director, Minister responsible for where the transaction originated and responsible controlling officers will be alerted of any transaction above K50 million within two minutes.
“The genesis of the High Value Alert Facility dates back to Cash-gate whereby junior civil servants in the accounting profession could generate and complete transactions without the knowledge of their line ministries or controlling officers which is contrary to our existing laws.
“That is why the RBM decided to make a contribution in the fight against plunder of public resources by introducing this High Value Alert System,” Kabambe explained
The Governor pointed out this was a game over for all those involved in unscrupulous activities that have resulted in plunder of public resources as any irregularity in any transaction will be quickly reversed and corrected.
He added that this would assist Controlling officers and Ministers to be fully in charge of their budgets.
He viewed that no one would in the future come up and said was not aware of the transactions in their ministries.
Kabambe pointed out that there are already other measures to detect any irregularities in transactions below K50 million.
On the strategic plan, he said this is a revised plan of the current three year plan of 2016- 2017 and the last in the series.
According to him, the bank is putting its plans known to the public so that the citizenry can know what to expect from the bank and to make the bank accountable to its people.
Some of the objectives in the plan include for the bank to continue improving the conduct of monetary policy, maintain official foreign reserves above three months of import cover throughout 2018, deepening the conduct and capacity of financial markets and ensure a sound, robust and resilient financial system.
Kabambe said the plan had been developed out of a rigorous and careful analytical process of examining the current economic trends as well as short to medium term objectives of the country.
“The plan acknowledges the country is facing and the need to grow our economy for the benefit of all Malawians. The plan has been developed to challenge all departments in the banks with ambitious but achievable targets.
“All our plans are consistent with our strategic objective of ensuring that there is price and financial stability in this country,” the governor added.