Draft Constitution for three central banks

The Bank of Tanzania (BoT) may face tremendous reforms if proposals that feature in the first draft of the new Constitution are to be endorsed.

The first draft of the Supreme Law proposes, among other things, the formation of an independent federal central bank that will oversee other two central banks of both Tanzania Mainland and Zanzibar.

The draft law, which proposes a three-tier government of the two sides, states that the federal bank will be responsible for foreign reserves, currency control as well as supervising the respective central banks.

The respective country banks will take care of the county accounts, fiscal policies and supervising the commercial banks within their territories.

The federal government will also form a central treasury fund which will deal with union matters.

“Due to proposals of having three governments, it has been urged to put in place banks that will be responsible to store government money accounts of each union player and supervise commercial banks in their authorities,” said Judge Warioba when presenting the first draft Constitution in Dar es Salaam on Monday.

According to Judge Warioba, dough available in the central treasury can only be withdrawn by considering rules that the use of the withdrawn fund have been approved by the Controller and Auditor General.

The president, according to the first draft will direct the required people to prepare and table in parliament the budget of the United Republic of Tanzania.

“After the parliament approves the budget, the bill of law for government expenditure will be tabled in order to authorise the central funds expenditure,” reads in part the first draft of the Supreme Law.

According to the Constitutional Review Commission, the parliament may enact laws for putting guidelines on authorisation of expenditure from the central government treasury fund.
Source: The Citizen, reported by Veneranda Sumila in Dar es Salaam
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