Mismanagement at Central Bank Ails Zambian Economy

By IAfrica
In Zambia
Aug 21st, 2014
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Some Ministry of Finance officials have blamed the continued delay to appoint Bank of Zambia Deputy Governor for Operations as one of the reasons the financial market is not performing to its expectations.

Meanwhile, officials have also blamed BOZ Deputy Governor for Administration Mabula Kankasa for allegedly misleading President Michael Sata regarding the bank’s poor performance.

Sources at the Ministry of Finance tell Zambia Reports that the Deputy Governor for Operations is an essential position at BOZ, charged with the responsibility of policy formulation and implementation. The unusually long absence of such an officer at the bank negatively affects the central bank’s ability to function.

“You know the Bank of Zambia has had no Deputy Governor for Operations for a long time now after Dr. Bwalya N’gandu was removed from his post and made Permanent Secretary to Muchinga. This is affecting the operations of the central bank. The Deputy Governor for Operations is a key, focal person for the central bank,” the source said.

The source blamed the delayed appointing of a Deputy Governor for Operations on the Deputy Governor for Administration Dr. Mabula Kankasa.

“You know we are reliably informed that Dr. Kankasa has been saying she is able to manage both roles as deputy administration and operations but evidence so far is that she has failed. She is very influential in decision making. Do you know why? She is actually the niece to acting Chief Justice Lombe Chibesakunda. Her mother Mama Kankasa is the elder sister to the Acting Chief Justice. It is like this country is being run by a clan,” the source said.

The source said Dr. Kankasa was hoping she would be appointed the first female Bank of Zambia governor once the contract for the current governor Dr. Michael Gondwe expires.

The Ministry of Finance official said President Sata should quickly appoint a substantive Deputy Governor operations to help stop the slide of the kwacha’s value and restore some modicum of international trust in the management of the economy.

The BOZ has previously been criticised over the disputed credentials of its governor, Dr. Gondwe.

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