By Lovemore Khomo
The Budget and Finance Committee of Parliament has expressed belief that some bank officials are involved in externalization of forex in the country.
Committee Vice Chairperson Ralph Jooma expressed concern during a meeting with Bankers Association of Malawi-BAM on Wednesday at Parliament Building in Lilongwe.
The committee engagements with BAM was to find out on mismanagement of forex and find solution to end the problem in the country.
Jooma alleged in an interview that committee’s observation indicates that BAM is not serious with the issue as their impression towards the House on debt cards as not a cause for shortage of forex is unsatisfactory.
“We wanted the banks to explain why all these problems, because they are at the center of issuing forex and how are they dealing with the problem?” asked Jooma.
He added, “Perhaps, we expected BAM to tell us that this has been stopped, but they haven’t. This is a very big loop hole. The best way is to completely stop this and anyone Travelling abroad must inform their banks that might be using the debt cards for transactions.”
Budget and Finance Committee Vice Chairperson alleges that apart from telegramming transfer system and use of debt cards, there could have been issuance of fake import invoices that facilitated externalization of forex without bringing products into the country.
“This is tobacco marketing season but import cover is just less than one month, very unprecedented situation. We have got very limited sources, but mismanagement is also there.” said Jooma.
In her response, Lyness Nkungula President for Bankers Association of Malawi admitted that there is indeed a problem of forex externalization and the banks are doing a lot to deal with this issue.
Nkungula explained that they failed to report such malpractice because any suspicious transactions in a banking industry is reported to Financial Intelligence Authority-FIA which also patch through Reserve Bank of Malawi.
“There is a pre-approval of $3000 per cut. So, what most banks have done is to reduce the pre-approval to the amount under $1000. And if you need more than $3000, then you need to apply.” said Nkungula.
She however told the August House that there is possibility that other cards used to externalize foreign currency have been blocked, and they continues to deal with this problem as other information cannot be publicized.
