Maravi

(NEWZIMBABWE) Gono bans Zimplats from local banks

Gono bans Zimplats from local banks
24/05/2012 00:00:00
by Business Reporter

CENTRAL bank governor Gideon Gono has banned local banks from dealing with Zimplats, the country’s largest platinum miner, accusing the company of ignoring a directive to repatriate funds held in off-shore accounts.

Mining companies were in February this year ordered to close all off-shore accounts as the government moved to address liquidity problems in the country but Gono claimed Zimplats was resisting the directive, allegations denied by the company.

“Just this morning, before I came to this meeting, I had a running battle with one of the companies that sought to defy the central bank directive,” Gono told a Parliamentary committee meeting Thursday morning.

“This company is Zimplats. I have said no to that. If it defies, everyone else will defy. I will not accept a situation which causes anarchy.”

Later in the day, the central bank ordered local banks to stop dealing with the company.

“Due to failure by Zimplats to adhere with the provisions of this directive to close their offshore accounts and transfer their funds to a bank onshore as directed, exchange control has taken corrective administrative measures to enforce compliance,” the RBZ said in a letter to banks.

“In this regard, authorised dealers are hereby advised to stop processing and facilitating international or any cross border payments on behalf of Zimplats... (and) to stop processing and facilitating any exports, including the issuance of export documentation, electronic or otherwise on behalf of Zimplats.”

[I guess two can play that game. Well done, ZANU-PF. - MrK]

Zimplats however, expressed surprise at the RBZ’s move with officials insisting the company had since repatriated up to 75 percent of funds held abroad.

“Zimplats acknowledges receipt of the RBZ directive,” company spokesperson Busi Chindove said.

“However, we must say we were surprised because in reality Zimplats had no objection to the initial communication from the RBZ. To this end, the company is now paying for 75 percent of its expenditure in Zimbabwe.

“The remaining 25 percent related to observing the tenets of its foreign loans that were raised with the knowledge, support and approval of the monetary authorities. Zimplats is urgently liaising with the Monetary Authorities to resolve this matter amicably.”

Gono also claimed that Zimplats – which accounts for some 25 percent of the country’s mining exports - was also influencing other miners to ignore the directive.

Zimplats is majority owned by South Africa-based Impala Platinum which also has an interest in Zvishavane-based Mimosa Platinum.

“The same shareholder is now questioning why Mimosa management should not learn from Zimplats’ management style, political and other connections,” Gono said.

“We are not taking their operating licence . . . That’s for Minister Obert Mpofu. I am merely expelling them from using the country’s financial infrastructure of which I am the chief superintendent.

“The company is free to appeal to my Minister and only when and if the Minister gives me instructions otherwise, then they can operate a bank account but without that, they must comply with my directives borne out of exchange controls and directives of the central bank.”

The RBZ is said to owe Zimplats more than US$34 million deposited with the central bank several years ago. In its quarterly report for the period to March this year, Zimplats said there had been no indication from the RBZ on when it would repay the money.

Labels: GIDEON GONO, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), ZIMPLATS

posted by MrK @ 6:45 PM