Reserve Bank of Malawi (RBM) Governor Charles Chuka in now ready to be a loose cannon and expose the Peter Mutharika administration on wrongful enrighment that members of his administration are doing impacting negatively in the fluctuation of the kwacha against major international currencies.
Chuka is reportedly unhappy with some of the underhand dealings within the government and in private has expressed dismay, with Nyasa Times sourcing an email he sent to a political leader expressing disgust with Mutharika regime.
He also regret the introduction of the new K2,000 bank note which has been necessitated due to the depreciation of the kwacha and inflation.
The kwacha is currently trading around K730 to the dollar while inflation hovers around 22 percent.
Chuka strongly believes Mutharika is running a government of “thieves” and that the central bank is being manipulated by political leaders.
He was however fingured to have close ties with former president Joyce Banda and that the Cashgate corruption scandal was facilitated with help of RBM in full knowledge of Chuka.
Chuka recently told Parliamentary Committee on International Relations that the high inflation and high interest rates prevailing in the country are not a result of lack of knowledge among technocrats including those at the Central Bank but are fruits of political choices.
According to Chuka, RBM is only responsible for the management of inflation and interest rates but the power to ensure that the two rates are low rests in the hands of politicians.
“Malawi does not need advice. Your Minister [of Finance Goodall Gondwe] has been involved in advising other countries and those countries have been successful. In Malawi, issues are not about technical advice but political choices. We, the Reserve Bank and the Treasury work together almost on daily basis. We know what we want. We know what needs to be done. We know what Malawi needs in the next 50 years.
“Sometimes, I ask myself as to what is important for the politician? Is it to win an election or reduce poverty? It might be, with this poverty, you might lose a seat. But the way, I know Malawian politics, somehow it is still easy for you to win a seat. But why is it that Malawians are getting poorer and poorer every year but are still giving you a seat? What is the problem?” Chuka wondered.
He gave an example of Rwanda where he said despite the availability of few technocrats in that country, people have just checked their politics and the economy is flourishing.Follow and Subscribe Nyasa TV :