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(NEWZIMBABWE) Warning ... Reserve Bank Governor Gideon Gono says Kasukuwere 'confrontational'

COMMENT - You wonder who Gideon Gono is working for sometimes.

Warning ... Reserve Bank Governor Gideon Gono says Kasukuwere 'confrontational'
19/08/2011 00:00:00
by Gilbert Nyambabvu

RESERVE Bank governor Gideon Gono on Friday launched an astonishing attack on Indigenisation Minister Saviour Kasukuwere, hours after the latter gave two banks and several mining firms an ultimatum to comply with black empowerment laws or lose their licences.

Without referring to Kasukuwere by name, Gono said the minister’s threats to take-over Barclays and Standard Chartered Banks “could irreparably harm the nerve-centre of our recovering economy”.

“Tendencies towards firing harmful verbal economic-gunpowder must be minimised by all stakeholders in the interest of the economy and the Reserve Bank of Zimbabwe Board forewarns people playing with economic gunpowder to leave the game to those well-trained in its use and safe custody, lest the unintended will happen, to everyone’s future regret,” Gono warned in an ill-tempered statement.

Gono’s attack on Kasukuwere will be seen as the latest evidence of confusion within the coalition government over a law designed to secure a minimum 51 percent stake for Zimbabweans in all foreign-owned firms.

The law has been criticised by foreign companies who have made counter-offers of at least 30 percent equity for locals – proposals already shot down by Kasukuwere.

Gono warned the two banks that his intervention should not be “misconstrued to imply that the Reserve Bank condones or encourages non-compliance with the law by any institution operating under its purview”, adding: “The law of the land is the law and it must be complied with.”

But the central bank chief said “dishing out threats to sensitive institutions that are custodians of people’s hard earned savings” smacks of “irrational exuberance during these times of necessary soberness.”

“There are ways of achieving the same objectives as intended by the law through non-confrontational means …,” Gono said.

He added that the Reserve Bank was the only authority empowered to “issue or take away banking licences”, adding:

“The RBZ has neither given notice to nor does it have any immediate or foreseeable intention(s) to withdraw operating licences from any registered financial institution under its supervision.”

Gono’s slap down of Kasukuwere came on the same day that a gold mine revealed it had been threatened with seizure.

Gwanda-based Blanket Gold Mine, majority-owned by Canadian firm Caledonia Mining Corporation, issued a statement on Friday accusing Kasukuwere of exceeding his “legal powers” after it emerged the minister had asked his mines counterpart, Obert Mpofu, to cancel its operating licence.

“Caledonia has received a copy of a letter sent from the Minister for Indigenisation to the Minister of Mines, in which he requests that the Minister of Mines cancels Blanket's operating licence on the grounds that Caledonia's (indigenisation) proposal does not meet the legislated indigenisation requirements,” the statement said.

“Caledonia believes the Minister for Indigenisation has exceeded his legal powers both in terms of his assessment of Caledonia's proposal and his request to the Minister of Mines.”

The company said it was seeking legal advice.

Labels: CALEDONIA MINING CORPORATION, GIDEON GONO, NATIONALISATION, NEOLIBERALISM, SAVIOUR KASUKUWERE

posted by MrK @ 4:24 AM