Zimbabwe: Top Government, Party Officials Among Cash Barons - Gono

Source from:  The Herald (Harare) 15 December 2007 12/18/2007

Some of the cash barons who have caused the serious shortage of cash in the country are senior Government and ruling party officials abusing their mandate to lead in the implementation of its programmes, Reserve Bank of Zimbabwe Governor Dr Gideon Gono has said. Addressing delegates at the Zanu-PF Extraordinary Congress yesterday, Dr Gono said the current shortages of cash were being caused by some corrupt leaders. "Dambudziko ratakatarisana naro munyika medu ndere corruption munyika muno. Corruption, corruption, corruption yauraya nyika ino. "Nyika ino irikurasikirwa nemari yakawanda chaizvo pamusana pedu isu vamunoti machef kana kuti vamakaisa pazvigaro zvinokosha, mungave muHurumende, muparty, mumaparastatal, mulocal government kana mumabhizimisi zvichisanganisawo nevekumabanks," he said. He said the central bank had released over $67 trillion onto the market but could only account for $2 trillion as at close of business on Wednesday this week. "The $2 trillion is the money which was at the various banks across the country and the people are spending days and nights in queues looking for cash. "Our question is: Who has all the other money? That is also why the central bank has taken its time to respond to the cash crisis. "We cannot keep on printing money before we account for the other $65 trillion," he said. Dr Gono also said gold smuggled out of the country over the past five years averaged 15 tonnes per year worth more than US$400 million annually -- enough to buy all the maize Zimbabwe needs to feed its people for a whole year. "Diamonds worth over US$800 million have been smuggled out of the country. Other minerals have either been smuggled or under-invoiced to the tune of about US$200 million per year." The central bank governor said fertilizers, chemicals, fuel and other necessities have been smuggled or traded in corrupt ways that have seen the money being stashed out of the country to the tune of not less than US$250 million per year. "In total, therefore, this economy is losing on average, not less than US$1,7 billion per year through economic sabotage perpetrated by a few of us with the knowledge and/or complicity of many seated in this hall," he said. Dr Gono said if the amount was to be harnessed and put back into the system, the current problems -- even in the face of sanctions -- would not be difficult to contain. He urged the leaders to take a moment and reflect on the issue so as to take decisive measures to arrest the situation. "I am aware that by speaking out in this manner, your governor is making more enemies today than ever before and will be the focal point of attack and worse smear campaigns than ever before. But so be it if it is for the good of the country," he said. He said the RBZ had a list of the people involved in the hoarding of cash, basic and other commodities. "I will not disclose what we are going to do and we want to see the congress express itself on what is causing these shortages. "We are now aware of the massive syndicates of cash barons who are hoarding cash and consequently creating shortages. Tavakuziva zvose zvirikuitika! "Kunevamwe vari kuti bvisai mazero. Izvi zvinozotinetsa pane ramangwana. Takabvisa mazero gore rakapera akadzoka zvakare," he said. He also spoke about other challenges that have contributed to the suffering of the people -- including the shortage of basic commodities, rising inflation, scarcity and high prices of agricultural inputs and inadequate foreign currency. He said foreign currency shortages were a result of sanctions imposed on Zimbabwe in 2002 after the country embarked on the land reform programme. "Before we undertook the land reform programme, Zimbabwe used to get assistance from various institutions and countries with foreign currency. "For example, from 1980 to 1999, Zimbabwe received assistance amounting to US$522 from IMF, US$1,4 billion from the World Bank and another US$524 million from the African Development Bank. "The total amount of US$2,447 billion was to assist in strengthening our local currency and helping in building dams, buying fuel, fertilizers, medicines and others important goods," he said. Enditem