Reserve Bank Governor fired

Malawi President Bingu wa Mutharika has told Reserve Bank Governor Victor Mbewe that his position is untenable and he seizes to be head of the institution by today (Wednesday).

The highly placed source at Office of President and Cabinet (OPC) said Mbewe was summoned by Chief Secretary to the President Bright Msaka yesterday where he communicated that the President has lost confidence in him.

Mbewe has been forced to tender his resignation by Wednesday.

The official who spoke in his personal capacity and refused to be named, said Mbewe and former finance minister Goodall Gondwe did not defend the President when the IMF team recently visited Malawi.

“The President felt gravely betrayed by Mbewe and Gondwe after they failed to defend his policy of overpricing the Kwacha and reasons not to devalue the currency. The Reserve Bank Governor has also fallen out with the President for failing to close money exchange  Bureau due to  the shortage of forex,” said the official.

The IMF report accused the Mutharika government of gross abuse of public resources especially in statutory corporation, government overexpenditure and also attacked the administration for purchasing fertilizer for the subsidy programme  in the previous financial year’s budget.

Mutharika wants somebody who can understand his economic policies both as Finance Minister and central bank head  in the face of  forex scarcity and IMF nailing report.

Mbewe  had so far been complying with Mutharika’s brand of economics, but was  powerless to close Bureau because the RBM has appealed to the Supreme Court a court order that stopped his institution from effecting any closures.

The governor is reported to have told Msaka that the central bank is not a law enforcement agency and any forex bureau found to be contravening the Banking  Act are referred to the Fiscal Police Department for action.

Meanwhile, Mbewe has accepted that he will not enter in confrontation zone with the Ngwazi Dr Bingu wa Mutharika who is adamant to pay contract termination dues only offering three month salary.

Mbewe and Bright Msaka the Chief Secretary were not readily available for comment on this breaking news alert.

Tagged with: Bingu, Goodall Gondwe, IMF, Mbewe, Msaka, Reserve Bank

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