Migration of P8bn special funds sparks bank liquidity fears

Early last month, Finance Minister, Kenneth Matambo announced that balances in the country’s 34 Special Funds would be transferred into the Government Remittance Account to be managed as part of the government cash balances held at the BoB.

The move is part of a slew of interventions designed to clean up suspected corruption, abuse and general mis-governance of government’s Special Funds, a decision triggered by the criminal case involving the disappearance of P230 million from the National Petroleum Fund.