Editorial

ECONOMIC WHEEL MUST ROTATE FOR SUCCESS

Odongo Odoyo

Topical Commentary


With Odongo Odoyo

For sometimes now, l have been privy to some important information circulating in the financial sector. I had heard of the regulator, Central Bank, owing a number of commercial banks huge amounts of money which was deposited in their accounts as required by the banking laws. However, the money or cash being deposited belongs to commercial banks customers. The money should be able to rotate so that the owners who are the commercial banks clients or customers are able to benefit. It cannot be kept solid doing nothing and should be used by the country to bring in goods and items that could be traded at the period the cash is stocked at the national coffer. I may not be a financial expert, but logic and simple money reasoning is that money must be used for trading. This is how it can multiply and generate extra revenue for the country. It is not in my domain to criticize any party to this but the recent revelation that the national coffer owes commercial banks more than USD 100 million is a pointer in bad management. According to my information, the more owed could be more than the figure given by the Minister of Trade Kuol Athian when he revealed the mishap in the financial sector. Truly, there could be good reasons why Central Bank could be owing these commercial banks. But the banking regulator should bear in mind the plight of the depositors. They should know that without their effective response to the plight of the commercial banks, those trusting these institutions with their savings stand to complain and nag them for their deposits. It is understandable that there was crisis and now coronavirus which made it impossible for the economy to stand on its feet. It made many other service deliveries almost impossible. Indeed the country has and continues to economically transform. The brighter result could be seen by proper management in the sector. For the wheel of economy to move to the maximum with speed, there must be proper and diligent management of revenue and possible other resources. It should not escape the eyes and minds that the time has come to transform and harmonize these institutions for effective service delivery. Nothing should stand on the way to this effect because there is no distinction between private and public financial institution as they are geared into serving the country and the common-man. The positive end result is what counts for nation building. Without or withholding the deposits from commercial banks, the Central Bank may be held liable to the delay in economic transformation which the country requires now than it was yesterday. Let all be well with the key players in the financial sector and let all be according to the will and power of the economic growth. This is how discipline in the financial management could be achieved to alleviate the current situation in the country.

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