Gideon Gono resisting IMF audit of RBZ
By Lance Guma
27 July 2010
The country’s controversial central bank governor, Gideon Gono, is reported
to be resisting an International Monetary Fund (IMF) audit of the bank’s
finances, following revelations it was looted by senior ZANU PF officials.
The Reserve Bank of Zimbabwe (RBZ) is saddled with financial liabilities of
more than US$1 billion, incurred during a period of looting and quasi-fiscal
activities that propped up the Mugabe regime. The bank was given US$10
million this year to cover its operational costs but complained that the
money was inadequate.
Finance Minister Tendai Biti is adamant that a forensic audit of the bank
will be a pre-condition for any additional funding. Questions remain over
how the US$1 billion in liabilities was incurred. Press reports abound that
officials in several syndicates were able to transfer looted money into
offshore accounts.
The scandal involving ZANU PF activist and businessman Temba Mliswa also
proved an eye opener. Mliswa somehow swindled the bank of US$12 million and
attempts to recover the money were half-hearted. Only a recent spat with
police chief Augustine Chihuri resulted in this and other buried crimes
being brought to the public notice.
The IMF was in Zimbabwe last month and released a report exposing how the
RBZ was deviating from its core business of financial sector and prices
stability. “Without appropriate oversight, the RBZ used the international
reserves backing the statutory reserves of banks (US$80 million) and sold
shares from its portfolio of securities at the Zimbabwe Stock Exchange
(US$38 million) to finance its activities during January 2009 – March 2010,’the
IMF said in the report.
While many analysts had welcomed the Reserve Bank of Zimbabwe Act, saying it
would trim the excessive powers of Gono, the latest developments point to a
‘business as usual’ culture still prevalent at the institution. Not only is
Gono blocking the IMF audit, but external auditors are said to have reported
‘serious weaknesses in internal controls and financial reporting, and
comprehensive monetary statistics have not been published since early 2008.’
ZIA approves projects worth US$120m
27/07/2010 09:47:00
HARARE – The Zimbabwe Investment Authority (ZIA) has approved projects worth
US$120 million so far, Richard Mbaiwa, Chief Executive Officer, has
confirmed.
“We are still looking at others projects. It takes some time before we
approve projects right now because we are trying to change the economy,” ,”
he said in an interview.
Business executives have said the ZIA takes too long before approving
projects. Mbaiwa confirmed this observation.
The Minister of Investment Promotion and Development, Tapiwa Mashakada said:
“We are ready for investment and welcome it from all quarters.
Mashakada said the country was currently revising the Indigenisation Act. He
also pointed out that Foreign Direct Investment (FDI) in Africa had been
mainly from Asian markets.
He also added that Zimbabwe’s investment policies have been integrated by
mutual understanding, Mashakada said.
Meanwhile, the United Nations Conference on Development and Trade (UNCTAD)
said Zimbabwe had improved its investment levels.