(NEWZIMBABWE) Biti complicit in RBZ grand theft: Kereke
Strategic alliance ... Former RBZ chief Gideon Gono and his defence lawyer, Tendai Biti
09/01/2014 00:00:00
by Staff Reporter
BIKITA West legislator, Munyaradzi Kereke, has claimed that opposition MDC-T secretary general, Tendai Biti, was an accomplice in criminal activities at the central bank and cannot, therefore, act as legal counsel to former governor Gideon Gono.
Kereke wants the Constitutional Court to order a probe into his allegations that Gono looted about $40 million in State funds from the central bank.
The former RBZ chief, set to become a Zanu PF senator and long considered a confidant and financial adviser to President Robert Mugabe, recently pulled a surprise by hiring Biti to defend him in a development that also cost the editor of the State-run Herald newspaper his job.
Now Kekere, once a top advisor to Gono, claims the former finance minister had his fingers deep in the national cookie jar “which makes him a suspect and witness” in the case. Kereke says he is working on legal processes to have Biti barred from representing Gono.
“I am in the process of making the necessary legal applications for Biti to recuse himself from representing the second respondent to the extent that he is a legitimate witness on some of the matters I am raising in my application as much as he is also a suspect in the criminal case,” Kereke claims.
“A point of law to note is that second respondent and former minister of finance Biti have a common criminal case which they must together answer to.”
He said Biti had personally withdrawn International Monetary Fund (MF) cash given to the government and moved the money into a privately owned bank that later collapsed.
“The underlying background to this is that then minister of finance Tendai Biti, who now acts as legal counsel for (Gono) withdrew $150 million in funds from an RBZ account held at IMF without even the knowledge of the central bank,” Kereke averred. He claimed the money seemed to “thin” progressively as it was moved from one bank to another and later abused.
“Some of the funds were later abused at the combined hands of the second respondent and the ministry of finance under the express direction of Biti. The forensic audit report on Interfin Bank as already presented to the honourable court confirms this abuse,” he said.
During campaigns ahead of the general elections last year, President Mugabe claimed that the government was failing to account for at least $500 million in IMF cash.
“We had half a billion dollars from special drawing rights but we do not know what he (minister Biti) used it for. No money went to Bulawayo including Gweru, Mutare and Harare which came later. We also want to boost agriculture and mining,” Mugabe told supporters.
Biti however rejected the charges claiming instead that he had stopped Mugabe and his lieutenants in Zanu PF from pillaging the cash.
“They wanted to loot the fund and give it to their cronies. They were used to just taking like broiler chickens that feed like there is no tomorrow,” charged the former finance minister.
“The idea behind allocating the money through banks was to stop Mugabe from parcelling the money to his friends and relatives. It went too industry, infrastructure and that is what Zimbabweans are looking for.”
Meanwhile Kereke has also hit back at Gono's accusations that he is mentally unstable, declaring he was “extremely” sound.
“Quite to the contrary, I professionally hand-held the second respondent for at least 8 years as his advisor at the RBZ writing all monetary policy statements for Zimbabwe, carrying out macro and micro-economic policy research as well as preparing virtually all speeches for the second respondent and, more telling, assisting him with at least 99.9% of submissions for the whole of “his” academic work for the doctoral studies,” Kereke said.
He added: “If I were to be a near-lunatic as is suggested by (Gono) then it would be the two of us with him given that he comfortably took advice for eight years virtually on a daily basis from the alleged mentally retarded person in me.”
Approaching the ConCourt, Kereke added, showed he was a “diligent lunatic”.
Suggestions he was mentally unstable were“… false, provocative, malicious, cold-hearted and demeaning but amply telling on (Gono’s) own very advanced state of derangement, typical of fraudsters when cornered”.
Labels: CORRUPTION, GIDEON GONO, MUNYARADZI KEREKE, RBZ, TENDAI BITI
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Kereke should check in with his shrinks
By Gilbert Nyambabvu
MUNYARADZI Kereke, the former central bank adviser, must think Zimbabweans are mental dunces who are enamoured of his brilliant self that we will let him treat us with the selfish disregard of a lover who tantalises you with the preliminaries only to abruptly disengage at that heady, titillating moment when things start to get really exciting. Either that or the chap has totally gone bonkers, in which case the shrinks at his Rocfoundation Medical Centre must swiftly take him in for a thorough examination of his cerebrals; and this, just to be clear, one says not out of malice but genuine concern for a fellow’s wellbeing.
Indeed one does not need to be a malcontent or friend of Reserve Bank of Zimbabwe governor, Gideon Gono, to have major problems with Kereke’s endless and incoherent ramblings about his ex-boss’ alleged corrupt practices. To be fair with the chap though, it is entirely possible that Gono is corrupt – and we all are, potentially corrupt that is. But the simple fact of the matter in this particular case is that Kereke either has proof of the governor’s supposed malfeasance and must promptly hand the same over to the investigating and prosecuting authorities, or he just cannot back-up his allegations with incontrovertible proof and should, therefore, do us all a favour by keeping his gob well shut.
Kereke went public with explosive allegations that Gono stole millions of dollars in public funds from the RBZ back in February, to the delight of those who love the whiff of scandal in high office and a bitter falling out between members of our parvenu, wealthy and powerful elite. Gono did not comment on the clearly embarrassing claims and also ignored Kereke’s demand that he publicly apologises for allegedly besmirching his former protégé’s name or risk having the evidence of his corrupt practices made public. Gono, no doubt, has enemies who would love to see him fall, yet none could seize on Kereke’s claims to finally bring the governor down because Kekere would not make the evidence available, choosing instead to deposit it with some lawyers as some kind of insurance against supposed threats on his life.
Yet it turns out the governor quietly filed two defamation suits at the High Court demanding US$25 million from Kereke, prompting the latter to make a bizarre appeal to the Speaker of Parliament for immunity from the court action. And it is this whacky Parliamentary appeal which makes one wonder whether Kereke can actually support, with incontrovertible evidence, his allegations against Gono.
To begin with, it is not clear quite how Kereke expects Parliament to be able to interfere with a matter that is now before the courts. And more importantly still, he tells the Speaker of Parliament that he needs the legislative body’s “leave and immunity to “source” and produce before the High Court of Zimbabwe information which I know with certainly (sic) exists proving the rampant acts of theft of millions of public funds, fraud, corruption gross, abuse of office, betrayal of national interests and breach of the Official Secrets Act and other vices by Dr Gideon Gono”.
Now why would he require Parliamentary help to “source” the supposedly damning information having triumphantly claimed to be in possession of the same back in February when he threatened to sue Gono for allegedly tarnishing his image? In his February letter, which was widely circulated in the media, Kereke clearly stated that: “There are at least three legal experts who have taken custody of the evidence (and are prepared) to testify on my behalf in the event I cease to be here on earth for whatever reason, given the real threats on my life these matters are now raising”. Why then would he require Parliament’s help to “source” evidence which he said was safely deposited with his lawyers?
In addition, Kereke told his former boss (in that February letter) he was “ready to testify and produce (the) evidence so please challenge me in open courts (sic)”. But the minute Gono obliges and duly goes to the courts with a US$25 million defamation claim, Kereke scurries to Parliament for protection and help to ‘source’ evidence which is supposed to be with his lawyers. He tries to explain his request for immunity from prosecution by claiming that he cannot defend himself because certain (unnamed) individuals have threatened him with all manner of fatal bodily havoc if he dared reveal “evidence proving Gono’s acts of breech (sic) of the law and betrayal of the country’s interest”.
In addition, we are told that he cannot defend Gono’s US$25 million damages claim without contravening the Official Secrets Act. Now, was he not contravening the same piece of legislation by handing what he claims to be “state secrets” to three lawyers for public release in the event the alleged threats on his life are acted upon? In any case, Kereke made it clear to the Speaker of Parliament that “it is absolutely NOT my intention to undermine the sacred interests of The State by revealing any document or facts detrimental to the interests of The State” and that “the data I seek this special Parliamentary Immunity for is that which relates ONLY to Dr Gono’s unacceptable criminal transgressions for his personal gain which he now wants to cover up through abusive deployment of the Official Secrets Act on me”.
So, if he is convinced, and we can assume on the advice of his lawyers, that this dossier he claims to have, or is sourcing, does not contravene the Official Secrets Act, why should he require Parliamentary protection so he can use the same to defend the defamation suit filed by Gono? The gentleman would also have us believe that his “landmark” request for Parliamentary immunity would help prevent Gono and other public officials from using the law to “cover up acts of unmitigated fraud”, adding, and rather gratuitously too, that he was being persecuted for seeking “to contribute positively to the noble fight against corruption”. But was he not privy to these alleged corrupt practices over the many years he worked at the RBZ? Did he ever say a word?
Again, why did he hide evidence of this corruption (with his lawyers) instead of handing it over to the police or (if he can’t trust them) Parliament itself? In fact, and according to his February letter, Kereke clearly stated that his lawyers would only make the information public if the threats on his life were acted upon, meaning he was quite prepared to protect Gono from prosecution, as long as the governor behaved and kept his goons in check. Indeed, not reporting the corrupt practices he claims to have witnessed and even going so far as to spirit away evidence of the same makes Kereke (morally if not legally) complicit in the whole affair, and if he considers that “a positive contribution to the fight against corruption” as he claims, then God help us!
It is also worth recalling that this is the same individual who told us in February that Gono allegedly forced him to “literally do all the academic work” for his PhD programme with an America university. Apparently he felt “worse than sodomised” over the issue and yet decided to keep his cushy job at the RBZ despite his supposed disgust at the “abuse”. He also demanded that Gono “publicly retract your insults” or he would cause the relevant university to withdraw the Phd award, and for good measure added: “You could never have secured a quarter of the PhD requirements using your very limited and blunt academic mental amplitude even in five decades”. Gono never made the public retraction and Kereke has not acted on his threat to cause the withdrawal of the governor’s PhD award.
Quite clearly therefore, Parliament should not waste its time on Kereke’s ludicrous request. And Kereke should not think Zimbabweans are stupid. One does not need to have a PhD (whether arranged by him or not) to know that the fellow was cool with whatever was going on at the RBZ until Gono sacked him. If he had any objection, he should have resigned in disgust and turned whistle-blower. He cannot suddenly want to be considered a champion of probity in public office just because he has been chucked out of the gravy train, if such it was.
Indeed, whatever the cause of their falling out, it is very clear that this is a matter between the pair of them and one which Parliament has no business interfering with. Kereke said in February that he wanted his day in court and, unless they both come to some form of a deal, it looks like he will get it. So what is the problem?
Labels: GIDEON GONO, RBZ
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Police, Gono ignored Chihuri warning on 'danger' Kereke
08/09/2012 00:00:00
by Lebo Nkatazo
POLICE Commissioner Augustine Chihuri warned that Munyaradzi Kereke was “unfit to possess a firearm” THREE YEARS before the former Reserve Bank of Zimbabwe adviser allegedly raped his 13-year-old niece at gunpoint, New Zimbabwe.com can reveal.
Chihuri gave his warning in July 2007 after Kereke drunkenly trashed a hotel room in Masvingo and discharged two rounds from his CZ pistol during a jealous-fuelled early morning row with his girlfriend.
The police chief said the former Stanbic Bank employee and founder of the Rocfoundation Medical Centre was “unfit to be working in the governor’s office”.
Inexplicably, Kereke kept his job as an adviser to Reserve Bank governor Gideon Gono, and his gun licence was never revoked.
Three years later, on August 22, 2010, Kereke’s niece tearfully told how he had walked into a bedroom where she was babysitting his child and raped her at gunpoint – while his wife prepared food for him in the kitchen.
A report was made to Highlands police who transferred the file to Borrowdale police who have jurisdiction over the Vainona suburb, where the alleged rape took place.
Police interviewed the alleged victim’s 15-year-old sister – the first person she told of the assault – and received a supporting medical report from a Dr E T Chanakira at Parirenyatwa Hospital who examined her on November 1, 2010, and confirmed her hymen was broken in a manner consistent with sexual penetration.
The alleged victim’s lawyer, Charles Warara, says police are yet to charge Kereke and his attempts to obtain answers from Chihuri and Attorney General Johannes Tomana have come to grief.
Our revelations that the country’s top cop knew Kereke was a “danger to himself and others” three years before the alleged attack pose uncomfortable questions for the police and Gono over how he was allowed to keep a gun – and his job.
In a letter dated July 19, 2007, and seen by our correspondent, Chihuri wrote to Gono to warn: “Dr Kereke is a man of violent disposition, who is a heavy drinker as well. It is quite clear that he cannot control his temper and temperament at all, and this renders him unfit to possess a firearm.
“It is beyond reasonable doubt that if Dr Kereke continues to possess a firearm, he is a danger to himself and others.
“The reasons for his temper in this case (row with girlfriend) are very frivolous to warrant such reaction from a man of his status both socially and professionally.”
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Chihuri went on to advise Gono that “I have no reservation in recommending that such a character is unfit to be working in the governor’s office, considering the damage such a character may bring to the reputation of the office in particular, and the Reserve Bank in general.”
It appears Chihuri’s advice was ignored by Gono, who retained Kereke on his staff until he was sacked in February this year for undisclosed reasons. The police also did nothing to enforce Chihuri’s warning – although Kereke was fined for discharging a firearm in public.
The Flamboyant Hotel withdrew its malicious damage to property complaint to the police after an apparent cover-up attempt by the Reserve Bank which dispatched its chief of the Financial Intelligence Inspectorate, Evaluation and Security Department – one M.E. Chiremba – who paid Z$50 million to the hotel.
The failure to at least arrest Kereke over the rape allegations – which he forcefully denies and has already sued two newspapers over – has raised concerns with the victim’s family and lawyer who suspect a cover up.
A police memorandum also seen by New Zimbabwe.com, prepared after the hotel incident in 2007, also reveals that Kereke fired his gun on at least one other occasion outside the Liquids Night Club in Masvingo.
On a separate occasion, he is alleged to have drawn his weapon during a confrontation with a Central Intelligence Organisation agent only to flee after the spy reacted faster and pointed his own firearm at him.
Kereke is said to have been overheard boasting that he was “very powerful and influential such that police could do nothing to him”, says the police memorandum.
Labels: GIDEON GONO, RBZ
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Zimplats denies breaking the law
28/05/2012 00:00:00
by Business Reporter
PLATINUM miner Zimplats has denied breaking the law after the central bank ordered local banks to stop processing exports for the company until it shifts foreign accounts onshore.
The RBZ directive suspending banking services for the company over its use of offshore accounts prevents banks from facilitating both local and international transactions for Zimplats.
But in a statement Tuesday Zimplats said the existence and operation of its offshore bank accounts is contained in the terms of an agreement between the company and the government.
“The directive is most unfortunate because Zimplats understands and fully embraces the policy objectives of the directive and will comply with it,” the company chief finance officer Patrick Maseva-Shayawabaya said.
Zimplats said it puts 75 percent of its total spending through the Zimbabwean banking system, with the balance relating mainly to the servicing of offshore loans “which were raised with the knowledge, support and approval” of the central bank.
“Management recently discussed this matter with the RBZ and believed that the voluntary measures instituted by the company adequately addressed the concerns of the authorities,” Maseva-Shayawabaya added.
“Management is working closely with the RBZ to ensure that the localisation of the off-shore bank accounts is implemented smoothly and that the provisions of the company’s agreements including its off-shore loans, are honoured.”
Labels: BANKING, RBZ, ZIMPLATS
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Gono slams banks
Tuesday, 29 May 2012 00:00
Martin Kadzere Senior Business Reporter
RESERVE Bank Governor Dr Gideon Gono has slammed banks for high bank charges, saying such
“extortionist tendencies” were discouraging deposits, especially from small to medium companies.
He said he would soon issue a directive to financial institutions to charge reasonable fees and not to charge service fees on inactive accounts. Dr Gono was speaking before a Parliamentary Portfolio Committee on Small to Medium Enterprises last week.
Glen View North legislator Mr Fani Munengani had expressed concern over high bank charges and, in some cases, where debits were made even if there was no transaction.
“I am going to tell the banking sector (to) make a choice,” said Dr Gono.
“You either agree voluntarily on reasonable amounts (bank charges) and also that you do not charge any cost on any account where there has not been an transaction . . . (or) if you don’t want to give them interest, then give them (depositors) back their money if full.
“We are engaged in discussion with the banking sector and I am happy to report that it is a matter high on our agenda between the governor and the Finance Ministry. If we have to create regulations or mediate between savers and the banks . . . we have to do that.”
Dr Gono said the banks had developed a culture of wanting to make money “beyond what is reasonable”.
Out of US$4 billion bank deposits, authorities believe that more than US$2 billion could be out of the banking system.
Two weeks ago, Finance Minister Tendai Biti said Government would put in place a policy framework to address distortions of “crazy lending and non-existent deposit rates”.
He said Government had engaged the Bankers’ Association of Zimbabwe but there had been no progress.
Since dollarisation in 2009, most banks have been making much of their revenue from non-funded income, which are service fees and commissions.
While Dr Gono admitted that the banks do incur costs of running the accounts, the levels at which money was being taken “are unfair”.
On the development of SMEs, Dr Gono called for harmonisation of laws that promote growth. He also said he was concerned over what he called the ”little support” that the banks were giving to the sector, which employs about 70 percent of the working population.
In the five months to May this year, banks advanced US$164,4 million to small to medium enterprises, about 5 percent of the total advances.
Labels: BANKING, GIDEON GONO, LENDING RATES, RBZ, TENDAI BITI
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RBZ blacklists Zimplats . . . blocks platinum mine’s access to banking services
Friday, 25 May 2012 00:00
Business Reporters
THE Reserve Bank has directed banks to stop offering banking services to Zimplats after the platinum producer defied an order to repatriate funds in its offshore accounts. In February, the Government put in place a policy compelling mining firms to close offshore accounts and transfer the money into local accounts, but Zimplats did not comply.
RBZ Governor Dr Gideon Gono said this will not be allowed to continue, warning that any bank that did not take heed will face “serious penalties”.
RBZ senior division chief (Exchange Control) Mr Morris Mpofu yesterday directed banks not to process any transactions from Zimplats.
“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,” read part of the letter.
“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.”
Zimplats spokesperson Mrs Busi Chindove yesterday said Zimplats had received the RBZ directive and had no objection to it.
“Zimplats acknowledges receipt of the RBZ directive. 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,” Mrs Chindove said.
Earlier yesterday, Dr Gono had told a Parliamentary Portfolio Committee on Small to Medium Enterprises that he will take drastic action on Zimplats.
“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,” said Dr Gono.
“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.”
Zimplats once resisted the indigenisation policy, but later submitted an acceptable plan on how it intends to allocate at least 51 percent of its stake to indigenous people.
In an interview after the session, Dr Gono said other big mining companies like Mimosa had complied.
Dr Gono said Zimplats accounted for at least 25 percent of the country’s mining exports.
Zimplats, said Dr Gono, was the only firm in this country that sought to defy the RBZ, saying executives from the company were now inciting other firms to disregard the directive.
Mimosa, owned by Implats, the majority shareholder in Zimplats, had complied.
“The same shareholder is now questioning why Mimosa management should not learn from Zimplats’ management style, political and other connections.
“We are not taking their operating licence . . . That’s for Minister (Dr Obert) Mpofu. I am merely expelling them from using the country’s financial infrastructure of which I am the chief superintendent,” said Dr Gono, adding Zimplats was free to appeal to the Minister of Finance.
“They are 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,” said Dr Gono.
He said defiance by any bank to the directive will not be tolerated.
In March, Mines and Mining Development Minister Dr Mpofu said Cabinet resolved that all mining firms should bank with local banks after it emerged that billions of dollars in export earnings were kept offshore.
This was happening at a time when the economy was facing serious liquidity constraints.
In February, Dr Gono and Finance Minister Tendai Biti also announced that with effect from March 1 2012 banks will be required to maintain a maximum of 25 percent of their nostro accounts balances offshore to meet their day-to-day international payment obligations while repatriating the balance. The maximum will rise to 30 percent with effect from June 1 this year.
This was intended to increase liquidity in the local market, which has been suffering from shortfalls since the introduction of multiple currencies in 2009.
Labels: GIDEON GONO, RBZ, ZIMPLATS
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Ex-RBZ chief, new farmers clash
Wednesday, 25 April 2012 00:00
Elita Chikwati and Shiana Mhizha
FORMER Reserve Bank of Zimbabwe Governor Dr Kombo Moyana is embroiled in an acrimonious land dispute with new farmers at Calgary Farm in Mazowe District. Farmers who benefited from the land reform programme at Calgary Farm between 2006 and 2008 allege that Dr Moyana sold his farm (Utopia Farm) for residential stands and was now encroaching onto their farms.
They say Dr Moyana has already been given an offer letter in what they allege as double allocation of farms by officials from the Ministry of Lands, Land Reform and Rural Resettlement.
Dr Moyana yesterday confirmed the development, but said it was his son Kombo (Junior) who was given the offer letter for Calgary Farm by Mashonaland Central Province Governor Martin Dinha.
“I am not the one who is involved in the issue. My son was given an offer letter for the area and these farmers do not have offer letters,” he said.
Dr Moyana said the farmers were resisting to move because Kombo (Junior) was from Manicaland Province.
“The issue is not about farming but area of origin. Is it Government’s policy that someone from Manicaland should not have a farm in Mashonaland?
“These people do not want anyone from another province in their area. Is this what we fought for?” he asked.
On the issue of selling part of his farm for residential stands, Dr Moyana said: “I was ordered by Harare City Council to stop farming and currently I do not have any farming land.”
Disgruntled farmers said Dr Moyana is grazing his cattle at some of their plots and has told them to vacate claiming to be the new owner.
One of the affected farmers, Mr Prince Danda, said although he had not received an eviction order officially, Dr Moyana had indicated that he was expanding his Utopia Farm into his plot, subdivision 9 of Calgary Farm.
Mr Danda was given an offer letter signed by the then Minister of State for National Security, Lands, Land Reform and Resettlement in the President’s Office, Cde Didymus Mutasa, in 2008.
“I’m surprised that Dr Moyana was given an offer letter for an occupied piece of land that is under production. How can the land be double allocated? He has vast swathes of land, and this is the only land I have,” he said.
Mr Danda said he is into livestock production, specialising in developing breeding stock for the beef industry, sheep and goats.
“I have nowhere to go and my project is in jeopardy.
“I have invested lots of money and now I cannot even plan anything as I can be displaced from this area any day,” he said.
“We were surprised when we were told that the land was no longer ours and it was now owned by Dr Moyana since some of us were given offer letters in 2006.
“I am doing a project of cross-breeding cows and so far I have pumped out more than US$50 000,” said Mr Danda.
Some of the farmers said it was unfair for Dr Moyana to occupy their farms when they were producing food while he wanted to develop residential stands.
“At least authorities should consider the activities being undertaken before removing people.
“We are producing food and this is prime land for farming. Why can’t the authorities give Dr Moyana (land for) residential stands from other areas where there are no farming activities taking place?” said another farmer.
Mr Martin Sibindi, who is also affected, said officials in Mashonaland Central Province told him that the land will be resubdivided.
Mr Sibindi got his offer letter in 2008.
“I am left with nothing. I received my offer letter in 2008 and to my surprise I am told that I now don’t have anything.
“This is not fair since the land is being given to one person who already has a very big piece of land.”
Mr Sibindi said he is into wildlife farming and eviction means he will lose everything he has worked for since 2009.
Mr Norbert Mutasa and Admire Chokuvamba, who got their offer letters in 2008, could not be reached for comment.
Dr Moyana refused to reveal his son’s contact details and the offer letter for the land, referring all questions to Governor Dinha.
Mashonaland Central chief lands officer Mr Gerald Chirapa said: “I do not want to talk to the media and as for that issue, I do not want to say anything. Why don’t you talk to the Governor?”
Governor Dinha yesterday confirmed there was a dispute over ownership of the farm.
He said the provincial lands committee recommended that more people be resettled on Calgary Farm, among them white farmer Georgina Brown and Kombo Moyana (Junior).
Governor Dinha said this was when the dispute started as the other beneficiaries wanted to block the entry of the new farmers.
According to documents shown to The Herald yesterday, Kombo Moyana Junior’s offer letter was dated 21 January 2012 and signed by Minister Herbert Murerwa.
“After a long dispute with old farmers resisting the coming in of these people (Brown and Moyana) the provincial taskforce on land investigated the matter and resolved that all the people including Moyana and Brown be accommodated at the farm.
“We have called the concerned parties more than four times to solve the issue. These people are now bringing tribal issues but our position is everyone has the right to land. Land is not a status symbol, those given land should use it. People should not complain when untilised land is being taken,” he said.
Labels: LAND RIGHTS, RBZ
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Government to probe US$1bln RBZ black-hole
26/02/2012 00:00:00
by Staff Reporter
THE government will soon move to audit the Reserve Bank of Zimbabwe’s (RBZ) US$1.5 billion debt, Finance Minister Tendai Biti has said
insisting the exercise was not a “witch hunt”.Biti last week told the Parliamentary committee that the government would set up a special purpose vehicle (SPV) to establish how the RBZ – which is now technically insolvent – ended up with the huge black-hole.
“We create an SPV, we appoint an administrator at law and that administrator then receives claims by creditors but in receiving those claims, he should satisfy two things that are the legality of that transaction in terms of the Zimbabwean law,” Biti said.
“There is also the accounting issue — was debt actually incurred, where 40 bags of maize actually delivered? He is almost a liquidator in a liquidation or insolvency issue.
“What then happens is that the administrator will also receive assets from the RBZ including those who owe the bank; that is if they say we are owed by farmers for equipment.”
The huge RBZ debt has been a source of friction between treasury and the central bank with critics blaming governor Gideon Gono for the bank’s troubles.
They accuse the RBZ chief of presiding over a spending spree after assuming office in 2003 which saw the bank freely printing money and engaging in so-called quasi-fiscal operations that included funding elections, acquisition of farm implements and luxury vehicles for government officials.
Gono’s policies are also blamed for stoking inflation which reached record levels of 11.2 million percent in 2008, forcing the country to ditch a virtually worthless Zimbabwe dollar.
But Biti insisted that the move to audit the debt was not witch hunt adding it was necessary to help recapitalize the bank.
“It will also allow for the recapitalisation of the bank and it will also even give an opportunity of a debate that so far has been taboo in Zimbabwe — the partial privatisation of the bank,” he said.
“The State doesn’t have to own the central bank, the central bank is just a conduit. The South African central bank is not owned wholly by the State but people in Zimbabwe think that there is magic that comes with owning even if you are owning a rat that has kwashiorkor.”
Gono however, denies any wrong-doing arguing that all the expenditure was requested and authorised by successive Finance Ministers.
He claims the RBZ could easily liquidate its $$1.1 billion obligations if the government paid up its own debt of US$1.4 million to the institution.
In a robust defence of his policies the RBZ chief said last November: “There is belief that RBZ and my management team spent US$1,1 billion either buying tractors and scotch-carts or simply went on a debt contracting spree and blew away the money in support of non-existent programmes or at the worst, the whole amount is a Gono debt which he must find a way to repay.”
“(But the fact is) we at RBZ asked for specific letters authorising us to mobilise forex resources for government, with limits being placed by government in relation to how far and how much the Ministry of Finance wanted RBZ to mobilise on its behalf.
"This we insisted upon in order to avoid the kind of irrational debate we are currently having as a nation.”
“If government was to repay RBZ US$1,4 billion that it owes the apex bank tomorrow, the bank would in turn be able to pay its US$1,1 billion debt to creditors and still remain with US$300 million for its capitalisation, lender of last resort operations, day-to-day needs and then focus on its core mandate!”
Labels: MDC, NEOLIBERALISM, RBZ, TENDAI BITI
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Banking sector safe: Gono
Friday, 20 January 2012 00:00
Golden Sibanda Senior Business Reporter
RESERVE Bank of Zimbabwe Governor Dr Gideon Gono has given assurances that the domestic financial sector is safe and sound despite facing numerous financial and economic challenges. Dr Gono made the remarks at the Confederation of Zimbabwe Industries economic seminar in Harare yesterday, pointing out that severe liquidity challenges were fertile ground for financial sector instability.
The central bank governor assured the nation that the sector was safe and sound with 96 percent in deposits, assets and market share reportedly in the hands of the strongest banks with troubled banks holding the balance.
"As of December 31, 2011 the strongest banks held 96 percent of the market share. They had 97,3 percent share of assets and 96,1 percent share of loans while troubled banks held 4,1 percent share of assets, 2,6 percent market of deposits and 3,84 percent loans. It is about values and not about the numbers," said Dr Gono.
"They (troubled banks) may not be systemically important when we do the evaluation. Looking at the current state of affairs, the sector is generally safe and sound inspite of a lot of constraints the sector is facing," he said.
But Dr Gono emphasised that the current situation was precarious in that neither the central bank nor Treasury had financial capacity to intervene in the event of a major liquidity crisis.
The central bank requires more than US$150 million to effectively perform its lender of last resort function and participate in financial intermediation by determining accommodation rates to influence interest rates.
An unnamed foreign financial institution has pledged more than US$100 million to Zimbabwe for purposes of reviving the apex bank's lender of last resort function and Dr Gono said this should be pursued without delay.
To alleviate liquidity constraints he proposed introduction of Government paper such as Treasury bills to unlock funds currently circulating outside the formal banking system and securitising the country's resources. The securitisation would entail setting structures to derive value out of assets such as minerals and housing stock.
[Not that I care about 'GDP growth', but Tony Hawkins is usually wrong, although he likes to claim he is right after the fact. - MrK]
Speaking at the same occasion, economist Professor Tony Hawkins dismissed Finance Minister Tendai Biti's economic growth projections for the current year, contained in his 2012 National Budget statement.
Professor Hawkins said the economy was highly likely to lose its growth momentum and expand, at most, by 5 percent while gross domestic product and inflation would increase by 7 percent and 9,3 percent respectively.
But in his Budget statement Minister Biti said the economy would expand by 9,4 percent driven by improved performance and agriculture and mining while inflation would close the year around 5 percent.
Government's move to protect fragile industries is seen pushing up prices and consequently putting pressure on inflation.
"I think they should have been smoking something when they made these projections," said Prof Hawkins.
The University of Zimbabwe professor of economics based his forecast on the fact that Zimbabwe was presently reliant on resource driven growth, which was likely to suffer as global mineral prices look set to take a dive.
He also pointed out that there was likelihood of reduced output from the agriculture sector this season in respect of major crops namely maize, tobacco, cotton and soya due to factors associated with weather and key inputs.
Output from the manufacturing sector is also seen at reduced levels due to expected increased competition from cheaper imports from South Africa with the rand seen losing ground against the US dollar.
Labels: CONFEDERATION OF ZIMBABWE INDUSTRIES, GIDEON GONO, RBZ, TENDAI BITI, TONY HAWKINS
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Gono breathes fire over debt
Saturday, 05 November 2011 23:44
By Munyaradzi Huni
THE Reserve Bank of Zimbabwe took over a debt amounting to about US$400 million that was incurred well before the central bank boss, Dr Gideon Gono, took office, and the apex bank can pay off all its debts amounting to about US$1,1 billion if the Government reimburses the US$1,4 billion that it authorised the RBZ to pay out during critical times.
Even the IMF Monetary and Capital Markets Department Report prepared by Mr Kenneth Sullivan in May 2011 confirms the figures on Page 26 under Appendix II and III where it gives a detailed breakdown of the RBZ debts.
In a statement released exclusively to The Sunday Mail, Dr Gono said the facts behind the RBZ debt profile have been distorted so much that it now seemed as if “my management team spent US$1,1 billion either buying tractors and scotchcarts or simply went on a debt-contracting spree and blew away the money in support of non-existent programmes or, at worst, the whole amount is a Gono debt which he must find a way to pay”.
Dr Gono said when he took office on December 1 2003, the country was facing challenges in foreign currency availability to meet Government requirements and so it became imperative that over and above the erratic export-surrender levels, additional foreign currency had to be mobilised from various sources.
He said to succeed in the resource mobilisation exercise and in the interest of good corporate governance, the RBZ asked “for specific letters authorising us to mobilise forex resources for Government, with limits being placed by Government in relation to how far and how much the Ministry of Finance wanted RBZ to mobilise on its behalf”.
The Governor indicated that on June 4 2004, on July 6 2005, on July 18 2006, on September 14 2007 and on August 18 2008 he got letters from the Ministry of Finance written by the permanent secre-tary, Mr Willard Manungo, authorising the central bank to borrow a total of about US$1,1 billion.
"It is also recommended that without any further delays, the Minister of Finance be advised to acknowledge and take over these Government debts from RBZ books and work out amicable re-payment plans with creditors," said Dr Gono.
He said some of the debts he inherited included a US$10 million loan from the South African Reserve Bank that was contracted and rolled over since 1979, a US$49,8 million loan from Bank Negara - Malaysian Central Bank - that was contracted from June 1991 to September 2000, US$55,1 million owed to regional and continental banks and corporates that contracted prior to 2003 and US$295,2 million owed to local financial institutions that was contracted between 1996 and 2003.
"If Government was to repay RBZ US$1,4 billion that it owes the apex bank tomorrow, the bank would in turn be able to pay its US$1,1 billion debt to creditors and still remain with US$300 million for its capitalisation, lender of last resort operations, day-to-day needs and then focus on its core mandate," said Dr Gono.
The Governor showed that indeed he was forced to come up with extraordinary solutions in mobilising foreign currency as one letter from the US Department of Justice written on May 11 2007 gave the central bank about four days to pay a debt of about US$5 million that was contracted between 1996 and 1997. After the RBZ managed to raise the US$5 million and beat the deadline that was given, about nine days later, the
US Department of Justice wrote yet another letter, demanding that the central bank should pay a debt of US$39 716 656 that was contracted in 1997 in less than two weeks. Dr Gono said "the vultures were hovering over the country and they were threatening to take all sorts of actions, including impounding our planes.
Fortunately I managed to raise the required amount.
"Unfortunately, today some people want to make it appear as if all the money went into Gono's pockets."
Labels: GIDEON GONO, RBZ
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Gono statement on RBZ debt
06/11/2011 00:00:00
by Gideon Gono
RBZ governor Gideon Gono's full statement on the central bank’s debts issued on Sunday, November 6, 2011:
The past few days have witnessed a renewed interest in and discussion of the RBZ US$1,1 billion debt through forums such as the Parliamentary Portfolio Committee on Budget and Finance, the Bankers’ Association and the media in general.
So distorted are the facts behind the bank’s debt profile that in some quarters, the belief is that RBZ and my management team spent US$1,1 billion either buying tractors and scotchcarts (mechanisation programme) or simply went on a debt contracting spree and blew away the money in support of non-existent programmes or at the worst, the whole amount is a Gono debt which he must find a way to repay. One newspaper editorial headline could not have driven home better the misconception about this whole issue than by screaming “Gono must pay” and went on a frolic of its own.
The following write-up is aimed at reminding the nation how difficult the last 10 years have been and somehow shed a bit of light into the RBZ debt issue.
Ministerial authority to incur debt, negotiate foreign lines and other forms of credit to finance government programmes
* Upon assumption of duty as Governor on December 1, 2003, and realising the mountain of challenges that lay ahead in the area of forex availability to meet the government requirements, it became an imperative that over and above the erratic export-surrender levels that the RBZ on behalf of government imposed on exporters, additional foreign currency had to be mobilised from various sources.
* To succeed in this resource mobilisation exercise and in the interest of good corporate governance, institutional memory and proper agent/master-relationship between RBZ and government as represented by the Ministry of Finance, we at RBZ asked for specific letters authorising us to mobilise forex resources for government, with limits being placed by government in relation to how far and how much the Ministry of Finance wanted RBZ to mobilise on its behalf. This we insisted upon in order to avoid the kind of irrational debate we are currently having as a nation.
It is hoped that this factual revelation puts this matter to rest so that our combined efforts are directed towards more productive issues, rather than needless negativity.
It is also recommended that without any further delays, the Hon Minister of Finance be advised to acknowledge and take over these government debts from RBZ books and work out amicable repayment plans with creditors.
Debts owed to other central banks as at 30/6/10:
* South African Reserve Bank (contracted and rolled over since 1979) — US$10 million
* Bank Negara — Malaysian Central Bank (contracted June 1991-Sept 2000) — US$49,8 million
* Reserve Bank of Malawi: Grain Importation Facility (contracted 2006/7) — US$20,4 million
* Total amounts owed to sister central banks — US$80,2 million
Debts owed to External Financial Institutions/ Suppliers/Corporates/Governments
* Regional and continental banks and corporates who provided roll-over facilities for grain, fertiliser and oil importations (prior to 2003 US$55,1 million) — US$122,2 million
* Equatorial Guinea — Fuel Importation Facility (contracted 2006/7) — US$220,8 million
* Eximbank China — Farm Implements — US$ and South Korea — Farm Implements (contracted 2006/7) – US$44,4 million
* Other Government authorised and contracted suppliers of grain, seed and fertilisers (contracted 2005- 7) — US$171,2 million
* Total — US$561,6 million
Debts owed to local financial institutions
* Financial Institutions Corporate (Private Sector) FCA Deposits (contracted 1996 - 2003 US$295,2 million) — US$359,8 million
* Local Banks Statutory Reserves (2007/8) — US$ 79,9 million
* Total — US$439,7 million
Grand total amount RBZ owes to the creditors as verified by external auditors and IMF as at June 30, 2010 — US$1 082,5 million.
Some extraordinary debts/events financed by RBZ in the national interest using above extraordinary sources of funding
* March/June, 2008 Harmonised Elections for which re-imbursement is outstanding from Government. — US$88,2 million
* Payment to IMF to prevent Zimbabwe from expulsion from the 184-member grouping with dire consequences: RBZ is still to receive re-imbursement from government so it can, in turn, repay its own creditors — US$220,9 million
* Payment to World Bank and African Development Bank in service of government loans contracted in 1980s/90s for which it (RBZ) is yet to receive reimbursement from government so that it (RBZ) in turn can repay its debts — US$5,0 million
* Payment to government of Botswana for vet, medicines and special parcel of oil received from Botswana in 2001/2 — US$6,1 million
* Zinwa/Government cholera war (2008) — US$6,5 million
* TelOne ING debt by court order and covering voice, data, internet and DAMA whose shutdown could have led to an economic blackout with business grinding to a halt due paralysis of telecomms in Zimbabwe save for terrestrial links to the region only — US$13,0 million
* Eximbank — USA: Debt paid in May 2007 under a “legal gunpoint” in the form of action and demands by USA District Court, Southern District of New York, (USA Department of Justice) for outstanding loans contracted by Ministry of Finance in 1997 and 1999. Amount is still to be reimbursed to RBZ so that in turn it can pay its own creditors — US$44,7 million
* Cars supplied to government ministries for which government is yet to pay RBZ for those vehicles being used by the ministries/ministers/senior officials/parliamentary and Senate committees — US$42,4 million
* GMB: Seed, grain and fertiliser imports paid for in forex — US$610,2 million
* Zesa debt arrears and power importation payments — US$100,4 million
* Air Zimbabwe, Support — US$206,7 million
* Extra-ordinary government support financings — US$ 55,9mil
* Farm Mechanisation Debtors — US$198,0mil
* Total owed to RBZ by government — (US$1,4 billion and farmers US$198 million)
* Grand total — US$1 598,0 million
Please note that all above figures have been verified and audit confirmations and documentation in support of each and every figure mentioned are available.
Single-entry bookkeeping
It will be observed from the above exposé that any discussion of RBZ debt (the creditors’ side) which does not include discussion of the debtors’ side is like single-entry bookkeeping in accounting . . . it is unbalanced and results in uninformed conclusions, especially with some editors that are bent on portraying the RBZ in negative light each time they come across RBZ or Gono — as was the case with one screaming editorial headline in the NewsDay of Thursday, October 27, 2011, that said “Gono must repay” as if the RBZ debt on the creditors side was personal.
Also, discussions to date about the RBZ debt by those in the know has ignored debate about how much government, through the Ministry of Finance, owes RBZ completely. At best, in debates about RBZ debt, the discussion of RBZ debtors has only centred around Farm Mechanisation debtors who owe RBZ about US$198,0 million which is 12,4 percent of RBZ’s debtors, while ignoring 87,6 percent of the debts owed to the bank by government.
If government was to repay RBZ US$1,4 billion that it owes the apex bank tomorrow, the bank would in turn be able to pay its US$1,1 billion debt to creditors and still remain with US$300 million for its capitalisation, lender of last resort operations, day-to-day needs and then focus on its core mandate!
Reclassification of RBZ debt (Creditors and Debtors)
Understandably, it has not been known by most stakeholders that the law of succession has meant that the current RBZ administration has had to shoulder responsibility for not only pre-independence carry-over debts but those contracted by the Ministry of Finance on behalf of government and the people of Zimbabwe in the 1980s, in the 1990s and the first three years of the new century without seeking to posture or cleanse ourselves of those legitimate obligations amounting to over US$400 million or about 40 percent in total.
Also, prior to now, it was not public knowledge that of the US$1,1 billion debt so much talked about, as verified, is classified and categorised as follows:
Creditors side
* Central Bank Lines of Credit— US$80,2 million (7,4pc)
* Non-resident Sovereign debt — US$452,6 million (41,8pc)
* Non-residents institutional debt — US$110,0 million (10,2pc)
* Domestic Debt (Banks/Deposits) — US$439,7 million (40,6pc)
* Total — US$1 082,5 million (100 percent)
Debtors’ side
On the debtors’ side, the breakdown and categorisation of what government owes RBZ is as follows:
* Debt incurred in honour of constitutional obligations (elections) and approved by Parliament in the 2008 National Budget but paid for by RBZ. — US $88,2 million (5,5pc)
* Debt incurred meeting Zimbabwe’s loan repayment obligations of loans approved by Parliament — US$289,7 million (18,1pc)
* Debt incurred feeding the Zimbabwean population, GMB grain, seed, fertilisers — US$610,2 million (38,2pc)
* Debt incurred “powering industry and lighting the country” (Zesa) — US$100,4 million (6,3pc)
* Debt incurred supporting Air Zimbabwe, saving lives (cholera) — US$213,2 million (13,3pc)
* Debt in respect of Government cars, etc — US$98,3 million (6,2pc)
* Debt in respect of mechanisation (farmers’ obligations)— US$198,0 million (12,4pc)
* Total — US$1 598,0 million (100 percent)
Some historical facts which some people have either forgotten or conveniently ignore
Genesis of the surrender requirements
* Beginning early 2000, when the Balance of Payments (BoP) position of the country started to markedly deteriorate, foreign exchange inflows to the government began to also decline.
* This unfavourable trend was further worsened by the explicit imposition of sanctions against Zimbabwe which led to most multilateral and bilateral lines of credit being suspended.
* Against this background, government through the Reserve Bank was left with no choice but to rely on export earnings to raise foreign exchange revenue.
* It is key and important to realise and recall that throughout the 1980s government used to take all forex earnings from exporters and a regime of import licences was in place, with forex allocations by a committee comprising RBZ/Ministry of Industry, Commerce/Trade and Technology (then), and the Ministry of Finance.
* This arrangement was done away with when Esap was introduced in the early 1990s until the re-introduction towards the turn of the century of same restrictions but under the name.
Export surrender requirements
* Primarily, proceeds from these surrender requirements covered the following outlays:
* Servicing of government debts, including the lifeline facilities on fuel, grain, fertilisers, agricultural equipment and other trade facilities;
* Payment for critical government requirements including medical drugs, embassy payments, water treatment chemicals and direct importation of strategic inputs among other essential payments; and
* To act as a source for contingent fall-back reserves for the government;
The new economic measures of March 2009
* The new economic measures introduced by government in March 2009 saw the sudden and abrupt abolition of any inflows of funds into the RBZ coffers by way of export surrender proportions, gold proceeds retentions as well as the use of the Zimbabwe dollar as a medium of exchange.
* This move, while intended to revive the economy and therefore most welcome, brought with it unintended consequences which are the subject of this debt debate and RBZ debt crunch.
The implications of revocation of surrender requirements.
* The direct implication of the new economic measures was that immediately after implementation, government through the Reserve Bank failed to service all the standby facilities and creditors that had been giving support to the country at its greatest hour of financial vulnerability.
* All the affected facilities were used for:
* Grain importation;
* Fuel importation;
* Electricity importation;
* Embassy payments;
* Importation of medical drugs and hospital equipment; and
* Payments to various government ministries, parastatals and local authorities, among other already referred to obligations.
* That is the historical aspect of this tricky situation we find ourselves in and the purpose of the narration is NOT to apportion blame to anyone.
To the contrary, I believe that a firm grasp of the history of anything equips whoever wishes to engage in its discussion with a better appreciation of the range of options available or that could be available.
* Furthermore, it is neither the intention or wish of this Governor or the RBZ board, management and staff to recommend the re-introduction of surrender requirements against exporters nor any other form of implicit taxation to solve this debt issue because the debt challenge for this country is bigger and greater than just the RBZ debt resolution framework. A holistic approach will have to be adopted sooner or later.
* May stakeholders be guided accordingly in their discussion of the topical issue of RBZ debt as well as its resolution framework.
Labels: DEBT, GIDEON GONO, RBZ
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Gono: I didn’t spend US$1.1bln on scotch-carts
05/11/2011 00:00:00
by Gilbert Nyambabvu
RESERVE Bank of Zimbabwe chief Gideon Gono has angrily rebutted widespread criticism of his stewardship of the central bank which now teeters on the brink of collapse, weighed down by debts of up to US$1.4 billion. The RBZ is technically insolvent with critics blaming its massive debt pile on Gono.
They accuse Gono of presiding over a spending spree after assuming office in 2003 which saw the RBZ freely printing money and engaging in so-called quasi-fiscal operations that included funding elections, acquisition of farm implements and luxury vehicles for government officials.
This, the critics add, helped stoke inflation which reached record levels of 11.2 million percent in 2008, leading to the ditching of the Zimbabwe dollar.
But the RBZ chief hit back in a statement issued to the state-owned Sunday Mail newspaper.
“The belief is that RBZ and my management team spent US$1,1 billion either buying tractors and scotch-carts (mechanisation programme) or simply went on a debt contracting spree and blew away the money in support of non-existent programmes or at the worst, the whole amount is a Gono debt which he must find a way to repay,” he said.
Gono said all the expenditure had been requested and authorised by the government through successive Finance Ministers adding the RBZ could easily liquidate its $$1.1 billion obligations if the government paid up its own debt of US$1.4 million to the institution.
[I'm sure the writer means $1.4 billion, not $1.4 million. - MrK]
“We at RBZ asked for specific letters authorising us to mobilise forex resources for government, with limits being placed by government in relation to how far and how much the Ministry of Finance wanted RBZ to mobilise on its behalf,” the statement read.
“This we insisted upon in order to avoid the kind of irrational debate we are currently having as a nation.”
Gono said the RBZ owed external and internal creditors US$1,082 billion in government authorised borrowings.
The government, however, owes the RBZ US$1.5 billion in funding extended towards supporting various state enterprises, grain imports, acquisition of farm implements, cars for ministers and other officials and funding for the 2008 elections.
“It is also recommended that without any further delays, the Hon Minister of Finance (Tendai Biti) be advised to acknowledge and take over these government debts from RBZ books and work out amicable repayment plans with creditors,” he said.
The RBZ chief appeared to be particularly incensed by criticism of his involvement in helping farms acquire implements with many of them failing to pay for them.
“In debates about RBZ debt, the discussion of RBZ debtors has only centred around Farm Mechanisation debtors who owe RBZ about US$198,0 million which is 12,4 percent of RBZ’s debtors, while ignoring 87,6 percent of the debts owed to the bank by government,” he said.
“If government was to repay RBZ US$1,4 billion that it owes the apex bank tomorrow, the bank would in turn be able to pay its US$1,1 billion debt to creditors and still remain with US$300 million for its capitalisation, lender of last resort operations, day-to-day needs and then focus on its core mandate!”
He also claimed to have inherited a debt of US$400 million when he assumed office in 2003 and added that the ditching of the Zimbabwe dollar and liberalisation measures introduced by the coalition government in 2009 further worsened the situation.
“The new economic measures introduced in March 2009 saw the sudden and abrupt abolition of any inflows of funds into the RBZ coffers by way of export surrender proportions, gold proceeds retentions as well as the use of the Zimbabwe dollar as a medium of exchange,” he said.
“This move, while intended to revive the economy and therefore most welcome, brought with it unintended consequences which are the subject of this debt debate and RBZ debt crunch.”
Labels: GIDEON GONO, RBZ
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Bank of Zambia Governor Caleb Fundanga fired
TIME PUBLISHED - Thursday, September 29, 2011, 8:06 am
Bank of Zambia governor Caleb Fundanga has been fired from his position with immediate effect. Sources have told QFM that the bank governor, who was at the helm of the sale of the questioned procedure of finance bank, was fired earlier this week.
Dr. Fundanga was bidding fairwell to his management and staff at the boz headquaters in lusaka yesterday. Dr Caleb Mailoni Fundanga has served as Governor of the Bank of Zambia since March of 2002.
He was appointed Governor, after serving as Senior Advisor to the President of the African Development Bank in Abidjan, Cote D’voire from 1998.
Dr. Fundanga further served as an Executive Director at the African Development Bank.
Dr. Fundanga also served as Permanent Secretary in the Ministry of Finance for six years at Cabinet Office before finally winding up in the Office of the President as Permanent Secretary in charge of the National Commission for Development Planning.
Dr. Fundanga’s firing is seen as some of the major changes the new patriotic front government is undertaking.
QFM
Labels: CALEB FUNDANGA, FINANCE BANK, RBZ
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Gono unhurt in mystery farm blaze
29/08/2011 00:00:00
by Staff Reporter
POLICE say they are investigating a blaze which swept through Gideon Gono’s poultry farm early on Sunday, sending the Reserve Bank governor and his family scampering for safety.
The fire, coming just days after Vice President Joice Mujuru’s husband, Solomon, was killed in a mysterious inferno at the couple’s farm in Beatrice, will increase pressure on the police to provide urgent answers over the two incidents.
Police spokesman Senior Assistant Commissioner Wayne Bvudzijena confirmed an investigation was underway. Detectives have so far found no links between the two fires to justify a joint investigation, he said.
But a police source said: “One fire is an accident. Two fires in as many weeks on farms of such prominent personalities looks slightly suspicious in the eyes of the public, and detectives are under tremendous pressure to provide answers in the shortest period of time.”
Police were called to the peri-urban farm next to the governor’s Borrowdale Brookes residence in Harare just after 9.30AM when flames shot up in the warehouse.
Gono and his family were getting up to their breakfast on their farmhouse a stone's throw away from the burning warehouse when they were helped to evacuate by frantic workers.
Edson Gono, the governor’s brother and farm manager, told reporters on Monday that the fire had incinerated everything in the warehouse and swept through the farm office. No-one was injured.
The Harare Fire Brigade – heavily criticised over its handling of the Mujuru inferno where they arrived with no water – responded 45 minutes after the call but arrived with “little water”, the governor’s brother said.
He added: “Fortunately, we have a small dam less than 100m away from the warehouse, so the firemen had to unroll their hoses and connect them to a hydrant which draws from the dam and we thought problem solved.
“However, there was a power cut and we had to start our standby generator to provide power for drawing water out of the dam. Only then were they able to start putting it out, but it was three hours later.”
He was keen to stress that the Reserve Bank chief was not blaming the Fire Brigade.
“Performance is a product of training, technical ability, motivation and crucially resources at one’s disposal. A very well-trained, well-motivated individual can never accomplish anything if they are poorly resourced. The obstacles in the way to service delivery by our city firemen are too numerous ... their best equipment was bought in 1973,” he said.
He said they lost equipment and other imported accessories worth US$100,000 in the blaze.
He refused to speculate on the cause of the blaze, saying police must be given space to pursue their investigation.
“Forget about the cause, the question to ponder is: if, as is the case with many Zimbabweans, we did not have a little dam nearby for water supply; we did not have standby generators; we did not have workers around and it was at night, what would have happened?”
The governor’s brother said if the fire had been allowed to spread to fuel tanks next to the warehouse, the blasts “would have spread to the main house and car park”.
“The rest I leave to imagination,” he added.
Labels: GIDEON GONO, RBZ, TREASON, WAYNE BVUDZIJENA
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Full Text: Gono on banks ultimatum
19/08/2011 00:00:00
by Gideon Gono, RBZ Governor
Statement by the Reserve Bank of Zimbabwe governor Dr Gideon Gono reacting to a 14-day ultimatum issued to Barclays and Standard Chartered banks by Indigenisation Minister Saviour Kasukuwere to comply with indigenisation laws or risk losing their licences:
A REPORT in The Herald newspaper of Friday, August 19, 2011, stating that Barclays Bank Zimbabwe Ltd and Standard Chartered Bank Zimbabwe Ltd were among the companies given a two-week deadline to comply with the indigenisation law and regulations or risk losing their licences at the end of the said two week period have caused panic in the banking sector thereby necessitating the issuance of this statement.
Ordinarily the Reserve Bank of Zimbabwe does not respond to each and every comment made about the financial sector except in extreme cases of misinformation or when statements made are grossly out of line with reality as to likely destabilise the sector and the economy in general.
The few instances which necessitated rebuttal statements from my Office were when an IMF team jetted into the country and after a week’s “working holiday”, issued a misleading statement suggesting that Zimbabwe’s financial sector was both unstable and full of vulnerabilities. The second and most recent occasion was when it was erroneously stated in the Mid-term budget statement that Zimbabwe’s banking sector non-performing loans (NPLs) were in the order of 37% of total banking sector loans when, infact, the ratio of NPLs was less than 5%. In both cases, it will be agreed that as Governor, I was duty-bound to set the record straight lest “misrepresentations told repeatedly become truths”.
The Reserve Bank of Zimbabwe which is the legal authority to issue or take away banking licences to operators in the banking industry wishes to advise all stakeholders that it 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.
This position must, however, not be misconstrued to imply that the Bank condones or encourages non-compliance with the law by any institution operating under its purview. The law of the land is the law and it must be complied with.
Having stated the above, Stakeholders are reminded that it is the legal duty of this Central Bank to superintend over the smooth functionality of Zimbabwe’s financial sector and to ensure financial sector stability in the country without which no economic activity, including the much needed local and foreign investment attraction, let alone the retention, can ever be realised.
As stated before, ad infinitum, and most recently in the supplement to my Monetary Policy Statement, the Financial Sector ought to be treated with a great deal of circumspection. Experts in the field of banking and finance and who have had years of experience in it, including serious qualifications in relevant subjects pertaining to the sector, deserve to be listened to when they give sound advice. This is necessary inorder to avoid fly-by-night, reckless and excitable flexing of muscles and decisions that overlook certain fundamentals that could irreparably harm the nerve-centre of our recovering economy.
To this end, 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.
There are ways of achieving the same objectives as intended by the law through non-confrontational means and not in a manner of dishing out threats to sensitive institutions that are custodians of people’s hard earned savings. I will not speak about other sectors of the e conomy facing similar difficulties as to do so would be a quasi-fiscal misfiring on the part of the Governor and we all know how some stakeholders react to the Governor’s extra-territorial initiatives, however noble.
As a Bank we pledge to assist in dealing with non-compliant banking institutions through extensive consultations with all beneficiary stakeholders in the economy ranging from industry, labour, empowerment groups, mining, agriculture, manufacturing, tourism, transport and other government agencies, to name but a few. BUT not in a manner that smacks of irrational exuberance during these times of necessary soberness.
The recently concluded SADC Summit in Angola had, we are informed, as one of its Agenda items the review of the global financial crisis which is still engulfing the world of finance and any actions on our part which are viewed or misread as precipitous or calamitous to the point of causing regional or country financial sector instability, however justified, will not find favour with Governors of Central Banks in the region let alone Reserve Bank of Zimbabwe.
Currently as the RBZ we are battling to stabilise indigenous owned financial institutions that are not adequately capitalized and which are experiencing liquidity challenges due to a variety of factors. To this end therefore, the timing of any move that we may take or intent to take is important. May all Stakeholders please be guided accordingly and take heed before it’s too late.
DR. G. GONO
GOVERNOR
Labels: GIDEON GONO, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), RBZ
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Mid-Term Policy today
Tuesday, 26 July 2011 02:00
By Walter Muchinguri
FINANCE Minister Tendai Biti today presents his Mid-Term Fiscal Policy statement, expected to provide solutions to a number of challenges facing the economy.
Among other issues, Minister Biti is expected to deal with financial discipline in the wake of financial irregularities unearthed at Renaissance Merchant Bank a few months ago.
RMB was placed under curatorship by the Reserve Bank of Zimbabwe on June 2 after allegations that its directors and shareholders allegedly misappropriated depositors' funds.
The bank was subsequently closed for two weeks in May, for the completion of the handover and takeover process as well as the finalisation of the evaluation of various initiatives under consideration.
RMB reopened early this month after the curator announced he had completed the handover and takeover process.
Minister Biti is also expected to deal with poverty and social safety nets to cushion the vulnerable in society.
He is also likely to announce measures to deal with challenges facing most companies. These problems led to de-industrialisation in most cities and towns across the country.
Industry representative bodies, including the Confederation of Zimbabwe Industries and the Zimbabwe National Chamber of Commerce, have been called for cheap finance to enable companies to recapitalise and retool in order to compete favourably with imported goods.
Most companies have also called for the minister to review duty on raw materials arguing that the current duty regime is too high such that locally manufactured goods were being priced higher than imported ones.
The minister is also expected to deal with the issue of high expectations in the country against limited fiscal space.
He has been under pressure in recent months to award civil servants a salary increment but has insisted this is impossible due to limited fiscal space.
But Minister Biti has reiterated in recent weeks that he would not be presenting a supplementary budget to the US$2,7 billion 2011 National Budget he presented in November last year.
The Zimbabwe Revenue Authority announced in May that revenue collection for the first quarter of this year exceeded target by 11 percent to reach US$618,9 million, as most of the revenue heads registered an upturn.
Zimra board chairman Mr Sternford Moyo said at the time revenue collections were performing well against set targets for the period, despite the constrained economic growth.
Total gross collections for the quarter amounted to US$618,9 million against a target of US$555,2 million.
Value Added Tax and individual tax were the largest contributors to total revenues of US$242,4 million and US$134,1 million respectively.
This was against a target of US$241 million for VAT, and US$105,4 million for individual tax.
Zimra collected US$78,1 million in customs duty against a target of US$70 million, constituting a 12 percent variance.
This was an improvement from the same period last year when US$66 million was collected.
Labels: RBZ, TENDAI BITI
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Auction of RBZ assets blocked
Herald Reporters
PRESIDENT Mugabe has invoked Presidential Powers (Temporary Measures) to stop legal action aimed at attaching and auctioning of Rese-rve Bank of Zimbabwe assets.
The President invoked the Presidential Powers (Temporary Measures) Act to amend the Reserve Bank Act to allow all the central bank’s debts to be turned into State liability.
The notice to promulgate the regulations was contained in a Statutory Instrument published in an Extraordinary Government Gazette last Friday.
Last year, the High Court ordered that the bank’s property be attached after it failed to settle a US$2,1 million debt with Farmtec Spares and Implements.
The Gazette read: "The Reserve Bank of Zimbabwe Act [Chapter 22:15] (No. 5 of 1999) is amended by the insertion of the following section after Section 63A.
"63B Legal Proceedings Against Bank.
"The State Liabilities Act [Chapter 22:13] applies with necessary changes to legal proceedings against the bank, including the substitution of references therein to a minister by references to the Governor."
The new regulations will apply to proceedings against the RBZ that are pending on the date the regulations come into effect.
The regulations will be in force for six months during which Parliament should make the ame-ndments permanent.
As a result of the promulgation of the regulations, an auction of RBZ farming implements was halted at the last minute on Thursday in Bulawayo on the instructions of the Deputy Sheriff of Harare.
There has been rampant litigation against RBZ by individuals and companies aimed at looting the central bank’s assets under writs of execution.
It is estimated that assets worth millions of dollars were sold at ridiculous prices to settle the debts.
Finance Minister Tendai Biti told The Sunday Mail that Government had intervened in a bid to prevent "vultures" from stripping the central bank.
Minister Biti said Cabinet had agreed to stop the attachment and auctioning of RBZ assets with immediate effect.
"It has become clear that some individuals and companies are acting like vultures after buying the central bank’s assets for a song.
"The auctioning of the assets has given birth to vultures that are using writs of execution to acquire the property.
"There is nothing that can be gained from the writs of execution. People are stripping public assets," Minister Biti said.
He said the best option was to appoint a curator or judicial manager to manage the outstanding debts.
He described the auctioning of RBZ property as illegal saying it encouraged deception.
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Labels: RBZ
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1500 RBZ workers face the sack
by Staff reporter
01/06/2010 00:00:00
THE cash-strapped Reserve Bank of Zimbabwe (RBZ) which teeters on the bring of collapse due to massive debts and its inability to print money is reportedly planning to sack up to 1500 employees in a bid to survive.
RBZ’s staff numbers bloated to more than 2000 in the last decade as the central bank printed money to fund so-called quasi-fiscal operations. A senior RBZ official told Radio VOP on Monday the institution would send home 1500 people as part of efforts to reduce an unsustainable US$400000 wage bill.
“(We are presently) trying to figure where we can get the huge amounts needed to retrench the 1500 people because that is the only way out of this crisis. Gono is now working full time to try and make sure that the retrenchment is smooth otherwise we will face more litigation.
“The quasi-fiscal activities the bank engaged in are coming back to haunt us. The bank is over staffed and we don’t know how we have been surviving. Workers are disgruntled because we are only getting US$150 a month.
Bank governor, Gideon Gono argues that the quasi fiscal operations saved the country from complete economic implosion in the last decade.
But critics say the governor’s penchant for throwing money at any problem was behind the hyperinflationary mayhem the country experienced over the last few years.
The move by government to ditch the virtually worthless Zimbabwe dollar in favour foreign currencies such as the US Dollar, the Botswana Pula and the South African rand has nearly snuffed the life out of the RBZ.
Unable to print money because of the currency switch the RBZ has found itself unable to pay contractors engaged to supply agricultural equipment as part of the quasi fiscal operations.
Some of the bank's property was recently auctioned as those owed money lost patience.
The central bank says its problems have been worsened by Finance Minister Tendai Biti’s failure to recapitalize the institution.
However Biti insists that with government's revenue inflows remaining constrained and donors holding onto their purses, he has little room to manoeuvre.
Labels: JOBLOSSES, RBZ
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RBZ defaults on miners’ bonds
by Gilbert Nyambabvu
30/01/2010 00:00:00
THE Reserve Bank of Zimbabwe (RBZ) which is struggling to survive, weighed down by liabilities incurred during the years when it freely printed money, has defaulted on millions of US dollars worth of bond repayments to the country’s gold miners.
A statement issued by the apex bank on Friday said all bonds would now be rolled-over for a further 6 months pending the outcome of ongoing engagements with the country’s treasury over “the Zimbabwean Government's RBZ-held debt”.
The RBZ’s troubles threaten to compromise recovery of the country’s mining sector with one firm, Caledonia Mining Corporation which owns Gwanda’s Blanket Mine saying it has been forced to put-off planned expansion projects after failing to get its money from the central bank.
RBZ Governor, Gideon Gono announced during a monetary policy presentation in January 2009 that outstanding arrears to gold miners would be turned into bonds expected to mature within twelve months.
“In order to contribute positively towards economic recovery of the gold sector, all outstanding amounts to (gold miners) have been converted into special Tradable Gold-backed Foreign exchange Bonds,” Dr Gono announced in January last year.
The bonds had a tenor of 12 months and attracted an interest rate of 8 percent.
However, Caledonia Mining Corporation published a statement on Friday saying the RBZ had failed to redeem bonds issued to its Zimbabwe subsidiary, Blanket Mine.
“Blanket Mine will not receive payment in respect of the Special Tradable Gold-backed Foreign Exchange Bonds issued by the Reserve Bank of Zimbabwe and which fall due for redemption on 1 February 2010 at a value of US$3 181,019 including interest accrued thereon of US$235 631.
“The Bonds were issued to Blanket in 2008 by the RBZ as consideration for gold delivered to a subsidiary of the RBZ in terms of the prevailing legislation,” the Canada-based Caledonia said in a statement.
The RBZ statement announcing the bonds had been rolled-over for a further six months adding that "various other initiatives are being pursued to meet all outstanding obligations” appeared to have been issued in response to Caledonia’s revelations.
Meanwhile, the central bank, which has also been taken to the High Court after failing to pay US$2 million for tractors acquired during its many quasi-fiscal operations, blames treasury for its troubles, claiming the Ministry of Finance is stalling on a much needed recapitalisation of its operations.
However treasury officials counter that they too have little room to manoeuvre as internal revenue generation remains constrained by an economy still recovering from years of negative growth while international support has not matched anticipated levels.
The RBZ’s fortunes changed dramatically when the country opted to use multiple foreign currencies in place of the virtually worth-less Zimbabwe dollar, a development that effectively put-paid-to the central bank's practice of simply printing money to fund its much-maligned quasi-fiscal operations.
Labels: BONDS, GIDEON GONO, RBZ
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RBZ property attached for debt
Floyd Nkomo
Sun, 24 Jan 2010 04:56:00 +0000
THE Reserve Bank of Zimbabwe had its property attached on Friday under a court order obtained by an agricultural equipment dealer who said the central bank never paid it US$2.1 million for tractors it had purchased.
The sheriff was moving to attach RBZ property to settle an unpaid bill related to the Farm Mechanization and Agricultural Support Enhancement Facility run by the bank. The bank owes Farmtec Spares and Implements approximately US$2.1 million. The sheriff’s office started to attach bank property Thursday.
The writ of execution issued by Farmtec's lawyers includes five properties owned by the RBZ which they want the sheriff to attach.
Reports say if the sheriff did not find movable assets of sufficient value, fixed assets of the bank such as buildings could also be attached.
Some of the properties listed are in Harare, the Manicaland capital of Mutare and the northeastern Zambezi River resort town of Kariba, he said.
Farmtec lawyers say the RBZ has indicated that it is prepared to point out some movable assets that could be attached.
The central bank ordered 150 tractors for the farm mechanization program and received 60 worth US$2.1 million. The remaining 90 were to be delivered once the bank paid for the first consignment.
Labels: AGRICULTURE, RBZ
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