07 Apr 2016

Shoshong MP, Mr Dikgang Makgalemele, has thrown his weight behind the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) Bill that seeks to repeal and re-enact with amendments the Non-Bank Financial Institutions Regulatory Authority Act.

The bill was tabled before Parliament by the Minister of Finance and Development Planning, Mr Kenneth Matambo, on Tuesday.

Mr Makgalemele said it was a good thing for the minister to be given powers to appoint NBFIRA board members as well as the organisations’ chief executive officer.

The clause giving the minister those powers was condemned by opposition MPs, who said it opened a loophole for appointments to be made on political patronage.

However, Mr Makgalemele assured that it would be impossible for the minister to appoint people to the board on political patronage since the Public Enterprises Evaluation and Privatisation Agency (PEEPA) would have a hand in making those appointments.

“PEEPA has been given a mandate to play an advisory role on appointments of board of directors of all public enterprises,” he said.

He explained that PEEPA usually advertised the posts for all interested people with requisite competencies to apply to be board members in public enterprises.

Furthermore, Mr Makgalemele, who is the Assistant Minister for Presidential Affairs and Public Administration, stated that the appointment of the chief executive officer would be done in consultation with the board.

The MP for Gabane-Mmankgodi, Maj. Gen. Pius Mokgware also supported the bill although he expressed unhappiness over the clause giving the minister powers to appoint NBFIRA board members.

He said the bill did not explicitly state the criteria for appointment to the board as well as the tribunal.

“The board should guide appointments into the tribunal. It should state the qualifications and competencies required for a person to be appointed,” he said. 

He also said the P2 500 penalty proposed by the bill on non-banking financial institutions found to have contravened the law was too little and should be increased. Ends