Gono grilled by parliamentary committee over currency conversions

By Tererai Karimakwenda
04 september 2006

Reserve Bank Governor Gideon Gono was questioned by the Parliamentary Portfolio Committee on Budget and Finance on Monday regarding his recent currency reforms and economic policies. The committee which summoned him is tasked with overseeing all budget and finance issues of government and also oversees the activities of the Reserve Bank. The committee grilled Gono about his working relationship with Murerwa, including claims by the Finance Minister that he was not consulted on the currency reforms and that the RBZ was dealing with issues best left to the finance ministry.

MDC MP Tapiwa Mashakada, who sits on that parliamentary committee, told us Gono alleged that many retailers had taken advantage of the currency conversions and hiked up the price of their commodities. He also said there were more reforms on the way but would not divulge any details because he wanted to take offenders by surprise.

On the subject of by-passing the finance minister, Mashakada told us Gono produced several documents showing that he has been receiving many direct requests from various ministries seeking his intervention. The minister said he has been inundated with these fiscal requests as the RBZ has become key during these economic hardships. He refused to be drawn into a discussion about his relationship with Murerwa saying all was well between them.

There were other press reports which suggested Gono called for a six-month freeze on prices, claiming it was necessary to control inflation and encourage economic growth. Mashakada told us this was not true. He said general price controls do not work and even Gono agreed on this.