Bank of Botswana has distanced itself from the mismanagement that occurs at the government special funds.
Appearing before the Committee on Statutory Bodies and Public Enterprises chaired by Pius Mokgware last week, BoB Governor Moses Pelaelo told the committee that his organization does not oversee the functions of the special funds.
Responding to questions from one of the committee members, Dr Phenyo Butale, who is also a Member of Parliament for Gaborone Central, Pelaelo revealed that when it comes to special funds, this is not an area where the central bank is involved.
Butale had told the governor that in her many reports, the Auditor General has found extreme cases of mismanagement of special funds, and in view of this, he asked the governor why wouldn’t the central bank classify these special funds as high risk and keep a closer eye on them.
“Don’t you think this should be one of the highest levels of risks, and say special funds we will keep a closer eye on them” asked Butale.
In response, the governor said when government set up these special funds; they just opened bank accounts on behalf of government.
“This is not an area where Bank of Botswana is involved, we deal with aggregates, and we deal with macroeconomic issues. So, at the end of the day, we look at the amount of money of government that is available in the system,” explained Pelaelo.