Parliament summons Gono amidst reports of missing trillions

By Tererai Karimakwenda
11 January, 2008

A member of the parliamentary committee on Finance and Economic Development has confirmed that the Reserve Bank of Zimbabwe (RBZ) Governor Gideon Gono is expected to brief the group regarding the serious cash shortages that have gripped the country. MDC MP Abednico Bhebhe said Gono offered to come and give evidence on this and other issues concerning the Reserve Bank’s operations. There have been several allegations about illegal deals and missing money but Bhebhe said he could not elaborate before the hearing next week.

This comes at a time when information about illegal forex dealings on the black market and other questionable practices at the RBZ are making headlines. David Butau, former head of the finance committee that is to question Gono, is reported to have fled to the UK over a case involving trillions of dollars that the RBZ tried to purchase foreign currency with on the black market. It was alleged that the forex was to be used to buy tractors as part of Farm Mechanisation programme.

It has also come to light that trunk loads of the new bearer cheques introduced last month were smuggled out of Fidelity Printers in Harare just days before the notes were due to be put into circulation. The missing funds are estimated to be worth Z$2 trillion. Reports claim that the theft was an inside job orchestrated by senior ZANU-PF officials and their contacts at Fidelity Printers. More than 10 people are reported to be in custody after they were found distributing the cash.

Bhebhe said the cash shortages have become worse and the introduction of the new notes has not eased the crisis. The MP related the sad experience of people he knows who spent Sunday night in a bank queue, only to fail to get any cash by the end of the day Monday.

With Zimbabweans struggling hard to get enough cash for their daily needs, the Mugabe’s are reported to have had no such problems. They withdrew US$100,000 to go shopping while on holiday in Asia – and got it at the low official exchange rate of Z$30,000 for one US$. If they had bought the forex on the more realistic black market, it would have cost them 60 times more.