‘RBZ plundered’
By Thelma Chikwanha, Staff writer
Tuesday, 24 May 2011 13:08
HARARE – Reserve Bank of Zimbabwe workers have called for heightened
government intervention at the crisis-ridden institution, amid allegations
that the central bank’s board members were pillaging the bank.
Senior managers at the bank alleged yesterday that board members were paying
themselves hefty allowances, running into thousands of dollars a month, at a
time that workers were getting “pittances”.
This state of affairs was resulting in mass resignations by key staff and
the remaining ones applying, en masse, to be retrenched, including senior
managers from vital departments.
Were all the applications for retrenchment to be successful, this would see
the central bank being severely paralysed, with “ghastly” consequences and
negative ripple effects across the entire banking sector, the Daily News’
sources warned.
Board members were allegedly taking thousands of dollars home every month,
while workers were being paid $150 each a month.
Alarmed by the extent of the problems at the central bank and the “looting”,
finance minister Tendai Biti is said to have summoned the board members to
his office recently, to get explanations on the spending sprees and the mass
resignations by senior employees.
RBZ governor Gideon Gono confirmed the mass resignations recently.
The fresh allegations of problems at the bank come at a time when more RBZ
properties, acquired during the quasi-fiscal days, are being auctioned –
with the bank failing to pay creditors millions of dollars.
Workers say they are “mystified” by what board members of the bank actually
do since Biti took away most of the powers of the bank.
RBZ’s traditional sources of revenue, such as printing money, dried up with
the coming in of the multi-currency era.
Documents in the possession of the Daily News show that from May last year,
board members collected more than $111 000 in retainer and sitting fees, as
well as fuel and communication allowances.
In one of the documents titled ‘2010 RBZ Directors’ Fees’, deputy chairman
Charles Kuwaza is listed as the biggest board member beneficiary, where he
earned $14 020 in gross allowances, while workers, including senior
managers, earned 10 percent of that amount.
Another board member, Willard Manungo, claimed a gross of US$10 745, while
labour economist Godfrey Kanyenze received $10 920, Primrose Kurasha claimed
$12 870 and Daniel Ndlela claimed $11 570.
Surprisingly, Gono, who is the board chairman, did not claim any money like
the rest of his colleagues.
However, Gono – who recently announced that the under-capitalised
institution faced closure unless it was rescued – said the directors had
nothing to do with the solvency problems at the bank.
“In any case, the issue of the directors’ fees is a standard one and it is
determined by the Minister of Finance. He is the one who sets levels of
directors’ remuneration. The amounts you claim are being paid to directors
are insignificant, relative to market standards, as well as the challenges
and responsibilities which they are
shouldering,” he added.
Gono said he would only get his share of directors’ allowances once the Bank
had got back to its feet.
“The fact that you claim that I have not been paid is neither here nor
there. I shall be paid when the bank can afford it.”
When contacted for comment, RBZ board deputy chairman Charles Kuwaza could
neither confirm nor deny receiving the hefty allowances, but referred all
questions to the central bank’s spokesperson Kumbirai Nhongo, who was not
available for comment.
So weak is the Reserve Bank that it no longer has the muscle to rein in
banks.
One of the disgruntled senior employees said: “The developments at the
Central Bank are a serious cause for concern. It is going to be a wild west
scenario in the banking sector and the economy should brace for serious
systematic collapses of banks.
“We cannot continue working for $150 per month when the board members are
giving themselves about US$2 000 a month”.
Under the amended RBZ Act, the central bank was authorised to sell off its
non-core assets to fund the bank’s activities. But due to bungling and
infighting within the board, they have failed to dispose of the assets, a
development which has worsened the bank’s financial
problems.
Tuesday, 24 May 2011 13:08
government intervention at the crisis-ridden institution, amid allegations
that the central bank’s board members were pillaging the bank.
themselves hefty allowances, running into thousands of dollars a month, at a
time that workers were getting “pittances”.
the remaining ones applying, en masse, to be retrenched, including senior
managers from vital departments.
the central bank being severely paralysed, with “ghastly” consequences and
negative ripple effects across the entire banking sector, the Daily News’
sources warned.
while workers were being paid $150 each a month.
finance minister Tendai Biti is said to have summoned the board members to
his office recently, to get explanations on the spending sprees and the mass
resignations by senior employees.
properties, acquired during the quasi-fiscal days, are being auctioned –
with the bank failing to pay creditors millions of dollars.
do since Biti took away most of the powers of the bank.
the coming in of the multi-currency era.
board members collected more than $111 000 in retainer and sitting fees, as
well as fuel and communication allowances.
Charles Kuwaza is listed as the biggest board member beneficiary, where he
earned $14 020 in gross allowances, while workers, including senior
managers, earned 10 percent of that amount.
labour economist Godfrey Kanyenze received $10 920, Primrose Kurasha claimed
$12 870 and Daniel Ndlela claimed $11 570.
the rest of his colleagues.
institution faced closure unless it was rescued – said the directors had
nothing to do with the solvency problems at the bank.
determined by the Minister of Finance. He is the one who sets levels of
directors’ remuneration. The amounts you claim are being paid to directors
are insignificant, relative to market standards, as well as the challenges
and responsibilities which they are
shouldering,” he added.
had got back to its feet.
there. I shall be paid when the bank can afford it.”
neither confirm nor deny receiving the hefty allowances, but referred all
questions to the central bank’s spokesperson Kumbirai Nhongo, who was not
available for comment.
banks.
Central Bank are a serious cause for concern. It is going to be a wild west
scenario in the banking sector and the economy should brace for serious
systematic collapses of banks.
giving themselves about US$2 000 a month”.
non-core assets to fund the bank’s activities. But due to bungling and
infighting within the board, they have failed to dispose of the assets, a
development which has worsened the bank’s financial
problems.