Politics

Tunisia: Despite experts’ warnings, President Saied wants central bank powers reviewed

Published

1 year ago

September 9, 2023

Tunisian President, Kais Saied is championing a constitutional review that will allow the central bank to finance the budget directly by buying state bonds.

A distinction must be established between the bank’s function in battling inflation and its position in supporting the budget, President Saied said during Friday’s visit to the bank’s offices.

He also emphasised that the central bank was a public organisation and was not autonomous from the government.

Saied said that “the budget financing law which says that the bank cannot grant loan facilities or acquire bonds issued by the state should be developed”.

Former central bank governor, Marouan Abassi had warned against the move and insisted that allowing the bank to buy treasury bonds had real risks to the economy, including increased liquidity strain, rising inflation, and a decline in the value of the Tunisian dinar.

The detractors of President Saied’s position claim that an attempt to change the 2016 financial law would threaten the bank’s independence and raise the possibility of increased state involvement in monetary policy, particularly in light of the expanding fiscal deficit, the lack of financial resources, and the challenges associated with borrowing from abroad.

Although Tunisia and the International Monetary Fund (IMF) struck a preliminary deal in October and Saied declared this year he would not accept “diktats” and that subsidy cuts might trigger protests, talks on a $1.9 billion loan have stagnated.

According credit ratings agencies, Tunisia could default, like other African countries like Ghana, Zambia and Ethiopia, on its foreign debt despite the bulk of its debt being internal.

Politics

Burkina Faso releases 4 French spies after Moroccan intervention

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

In a diplomatic spat over their imprisonment, France and Morocco announced Thursday that four French nationals detained in Burkina Faso for a year had been freed after mediation from Morocco.

They were spies, according to a prior statement made by the director of France’s foreign intelligence organisation, the DGSE.

A request for comment was not answered by the DGSE or a representative of the French military, which is in charge of the agency.

Since December 2023, they have been held in Ouagadougou.

President Emmanuel Macron hailed King Mohammed of Morocco on Wednesday for his intervention, “which made possible the liberation of our four countrymen who had been held in Burkina Faso for a year,” according to a statement from the French administration.

King Mohammed and President Ibrahim Traore of Burkina Faso were also commended by Morocco’s foreign ministry, which stated that “this humanitarian act” was made possible by their positive bilateral ties.

In October, France made peace with Morocco, one of its former protectorates, after three years of hostilities between Paris and Rabat stoked by immigration concerns and the disputed Western Sahara region.

Morocco offers Burkina Faso and other military-ruled Sahel republics Atlantic trade.

However, France’s relations with former West and Central African colonies, such as Burkina Faso, remain difficult. In Ouagadougou, French troops and diplomats were ejected, the defence attache and ambassador were asked to depart, and certain French media were suspended.

The military junta that took control in 2022 in Burkina Faso has been criticized by international rights groups for cracking down on free expression and harassing dissidents to handle a security crisis precipitated by Al Qaeda and Islamic State extremists.

Politics

Ghana: President-elect Mahama appoints anti-corruption team

Published

4 days ago

December 19, 2024

Ifeoluwa Dada

According to a statement released by his transition team on Wednesday, Ghana’s President-elect, John Dramani Mahama, has designated an anti-corruption committee to investigate allegations of wrongdoing.

When he takes office next month, Mahama, the leading opposition candidate in the presidential election held on December 7 and who received almost 56% of the vote, has pledged to reclaim the proceeds of corruption and hold those responsible for it accountable.

In anticipation, an anti-graft squad has been established. The parliament’s Committee on Assurances, which has previously raised suspicions of governmental corruption, is chaired by MP Samuel Okudzeto Ablakwah.

An investigative journalist, a private attorney, a former auditor general, and a former police officer with experience in high-profile robbery cases make up the other three members.

After looking into alleged financial irregularities that took place during the previous administration, Daniel Dumelovo, the former auditor general, was fired.

Recovering lost assets and fighting corruption were two of Mahama’s main campaign pledges.

“He intends to hit the ground running on these commitments,” the statement said.

Eight years after leaving office, former President Mahama is back to head the West African country. Despite not being personally contaminated, he faced criticism during his 2012–2016 administration due to claims of political corruption.