06 Apr 2016

The Non-Bank Financial Institutions Regulatory Authority Bill, which is in the second reading stage in Parliament, has received support from legislators. 

However, some MPs advised that the clauses giving the minister of Finance and Development Planning the power to appoint six board members of NBFIRA, as well as the chief executive officer should be reviewed because the minister could abuse those powers and make appointments on political patronage. 

The bill tabled by the finance minister, Mr Kenneth Matambo, on Tuesday, sought to repeal and re-enact with amendments the Non-Bank Financial Institutions Regulatory Authority Act.

Among other things, the bill detailed the regulatory model that allowed certain organisations to regulate their members with NBFIRA providing oversight functions.

 It also provided the framework under which investigators and inspectors were to carry out their work, and provided for establishment of a tribunal. Furthermore, it sought to give the minister power to appoint six of the board members of NBFIRA, as well as the chief executive officer, and members of the tribunal.

The MP of Gaborone North, Mr Haskings Nkaigwa said the bill was a welcome development because it was aimed at safeguarding the public from financial institutions that preyed on unsuspecting customers. 

The Umbrella for Democratic Change  legislator called for pawn shops and cash loans to be regulated, stating that cash loans charged customers interests that are too high. However, he was against the minister being given the power to appoint the chairperson of the NBFIRA board, some board members and the chief executive officer. 

He said having the minister appoint the chairperson of the board will lead to appointments made on the basis of political affiliation instead of competence. 

“This is too much power vested on the minister and it will lead to the minister the decisions of the board and that of the chief executive officer,” he said.

Ghanzi South MP Mr Noah Salakae appealed with the minister to rethink the clause on appointment of the NBFIRA board, saying the board should instead be appointed by Parliament. 

Mochudi West MP Mr Gilbert Mangole expressed his support for the bill, stating that it was based on good principles.

 He stated that the board should appoint its chief executive officer.  

Mahalapye East MP, Ms Botlogile Tshireletso thanked the minister for having tabled the bill and called for rigorous education of consumers of services provided by financial institutions. 

She said lack of information has led to many customers being cheated in the past.

However, the MP for Gaborone Bonnington North constituency, Mr Duma Boko advised that some sections of the bill could be in conflict with provisions of the constitution of the country.  

He cited the part dealing with the inspections and investigations of institutions and imposition of penalties. 

He said the tribunal suggested by the bill may not be adequately qualified to deliver those functions.

Mr Boko said it would be a fundamental error if the bill was left to pass and asked the minister to have  the bill subjected to rigorous constitutional examination. Ends