Reserve Bank of Malawi explains ‘cash transferring rumour’ at Late Hours

Post was last updated: June 29, 2020

Mbane Ngwira

The Reserve Bank of Malawi (RBM) has dismissed rumours that its Governor authorised transfer of billions of Kwacha into an account held at one of the country’s commercial banks during odd hours of June 26, 2020.

The rumor mill has it that on the said date, the Central Bank Governor instructed one of the employees to make the transfer at 22:00 hrs.

In a statement, RBM, however, says role of the Governor, as Chairman of the Board of Directors and Head of the Executive Management of the Bank does not include giving operational instructions to officers.

According to the statement, contrary to the rumours, an ICT expert and manager at the central bank, is not an authoriser of funds transfer system due.

“The fact of the matter is that on the stated date the Bank, had roll over transactions whose value date was 26 June 2020. These transactions had a foreign exchange (US Dollar) component as well as a Kwacha component.

“However, the transactions could only be completed after New York markets opened. This is the time when the Malawi Financial Markets close. Therefore, to facilitate the closing of the transactions, the systems had to remain open,” reads the statement in part.

It further says the funds transfer window normally closes at 17.00 hrs.

However, the window can be extended for various reasons and following laid down procedures.

RBM spokesperson, Mbane Ngwira, said in an interview failure to conclude the transactions as per their date would have meant that the agreements would be invalidated and fresh covenants initiated.

“…this could take several months with additional unnecessary costs to the Bank and the economy. It is malicious to insinuate that the Bank left the system open in order to conduct bogus transactions. As a central bank, we work in the interest of the nation,” Ngwira said.

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