EDITORIAL: BoT’s resolve on ’political pressure’ welcome


JF-Expert Member
Feb 11, 2007
EDITORIAL: BoT’s resolve on ’political pressure’ welcome


IN order to restore public confidence in the way it runs its affairs and earn the respect it deserves as an institution that thrives on integrity, the Bank of Tanzania (BoT) has resolved to turn a blind eye on political pressure in the future.

This was the message sent by the bank’s Governor, Prof. Benno Ndulu, when confirming the suspension of several senior BoT officials pending investigation into the controversial External Payment Arrears (EPA) account.

As our politicians plunder the central bank and turn it into a centre for sleaze we have failed to acknowledge the role of central banks. These roles include implementation of monetary policy, being the lender of the last resort by lending the government and banks, regulation of the country’s monetary supply, managing the country’s foreign exchange and reserves and the government’s stock register.

Other roles of the central bank include control and supervision of all activities of the banking industry, setting the interest rates, that control both the inflation rates and exchange rates, and ensuring such rates are implemented within the framework of established policy.

While the rape of public institutions by politicians continues, these institutions have become private clubs and a safe haven for their kin and kith, making it almost impossible for ordinary wananchi to secure jobs in these institutions.

This is echoed in the ongoing investigation at the BoT on bank officials believed to have been hired, at the expense of qualified wananchi, on the basis of being related to prominent politicians and their cronies.

However, behind the fa�ade of this newfound resolve to restore the bank’s integrity, it is rather curious that Prof. Ndulu and his team have to keep the number and identities of the suspended officials shrouded in mystery.

Irksome as it sounds, our public institutions have become conduits through which our politicians and their cronies siphon public funds into their personal offshore accounts.

It is time for the new crop of BoT officials, led by Prof. Ndulu, to restore the institution’s credibility to its former standing. Why not begin by disclosing the number and names of the suspended officials?
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