CONGOMA snubs RBM’s deadline on new forex rule

The Council for Non-governmental Organizations in Malawi (CONGOMA) has asked the Reserve Bank of Malawi (RBM) to forget about its deadline for NGOs in the country to submit their quarterly returns.

The central bank gave September 1 deadline to all local and international NGOs to submit their quarterly returns to the central bank with details such as projects carried out and details on utilization of funds received in a desperate move to solve the foreign currency problem that has forced Malawi’s economy take a sharp nosedive.

But CONGOMA says RBM has no legal mandate to order NGOs to submit to it their quarterly returns and unless proper consultations are done, the NGOs will not abide by the directive.

In its communication to RBM signed by acting Executive Director, Ronald Mtonga, CONGOMA advises the central bank that all NGOs will not submit their reports until the bank responds to some of the queries.

Ligoya: RBM gave Sept 1 deadline

Among others, CONGOMA observes that RBM request should have come much earlier considering the September 1 deadline which could have given room for constructive engagement between CONGOMA, NGOs and the bank in order to put things in the right perspectives.

"There is silence in the request as regards the legal frameworks (if any) which the Reserve Bank is using to justify this request. The request assumes to a large extent that there are no existing structures or legal framework already which NGOs are currently using to report on their activities," says the communication from CONGOMA to RBM dated 25th August 2011.

CONGOMA says in the interest of cooperation with the Bank, it has asked RBM to postpone the September I deadline to a later date until after adequate consultations with NGOs are done.

"CONGOMA and the Reserve Bank should engage in discussions to understand each others perspectives better," says CONGOMA.

Further, CONGOMA says it will organize regional meetings with NGOs on the issue and requests RBM to support the meetings financially and technically.

"This will be a forum for engagement between the Reserve Bank and NGOs so that they (NGOs) fully understand and appreciate the motives and purposes of soliciting such reports from them," it says.

Reserve Bank Governor Dr. Perks Ligoya said RBM requires NGOs that get foreign funding to receive the money through the Foreign Currency Denominated Accounts.

"There are a lot of projects being implemented in Malawi, but you go to their bank accounts there is no dollar that came in, yet these are internationally funded NGOs, " wondered Dr. Ligoya.

The central bank has introduced several measures alongside a loosened grip that allowed the Malawi Kwacha a few weeks ago to slip by 10 percent to US dollar.

The bank hopes that the measures would improve the foreign exchange situation in the country heavily dependent on tobacco which has made huge losses this season.

Nyasa Times 08 Sep, 2011

--
Source: http://www.nyasatimes.com/national/congoma-snubs-rbm%e2%80%99s-deadline-on-new-forex-rule/
~
Manage subscription | Powered by rssforward.com