Central bank, the first clash put off, the conflict far from over

The delay would have lasted 2 to 3 days in the end. Civil servants and pensioners will get their paycheck in February 2012. This payment was shortly jeopardized by the Central Bank´s employees´ strike.

The Treasury department was able to raise the necessary funds. “The treasury department´s network succeeded in gathering money from its 140 agencies” declared General Manager, Orlando Robimanana. “It would not be fair if we, this money´s due owners, ever had to endure this unwanted situation. The Central Bank´s money belongs neither to the governor nor to his agents” he declared.

The Central Bank´ strikers did drop a relevant card. On the other hand, they avoided to endorse the rascal´ suit which would have undermined their struggle. Tensions lowered as the governor´s defeat seemed increasingly inevitable. “Frederic Rasamoely is prepared to step down, however in the rule of art,” conceded the employee´ spokesman.

“Compliance with the Central Bank´ status is a must” he added. Ny Aina Razafindrakoto hardly addressed the HAT´s illegal appointment of a Director General through its finance minister. Guy Ratovondrahona was not proposed by the Central Bank´s Board of Directors as required by the law.

So, the HAT succeeded in forcing its pawn in as CEO of the Central Bank of Madagascar. “A decree 2011/038 issued in January 2011 already pushed the Governor of the Central Bank out as his mandate came to an end”, declared the HAT´s Minister Hery Rajaonarimampianina.

“There is no need to renew the decree. The twice six months long extension of his service is now over, “he added. A letter from the HAT´s finance minister proved on this account enough to remind this to the Central Bank´s governor.

The HAT has been longing for taking the Central Bank over since 2009. In 2011, the internationally rejected junta could not afford to fire the Governor, although his mandate came to an end, since Madagascar´s Central Bank´s assets are being detained by foreign financial institutions. The HAT simply installed a pawn as Director-General, doing away with the Central Bank´s Board´s proposal required by the institution´s supreme law.

In 2012, international recognition is still away. The national unity government is potentially able to grant legitimacy to this grip on the Central Bank. Prime Minister Omer Beriziky has so far not had his say in the matter. The HAT has an emergency yearn for money in order to settle social conflicts happening to be crippling the State´s engine. The last question is whether Rajoelina will the single one to take charge of public expenses or not.

An immediate and suspicious withdrawal of Ar10 billions was denounced by the Central Bank´ striking employees. “No to requisition!”, they protested. “That was dedicated to an electricity bill” argued the HAT´s finance minister. Without any hand over from the Governor, the illegal Director is likely to lose potential recognition, no unusual situation for the HAT, is it?