Massive looting at the Reserve Bank unearthed

By Lance Guma
25 May 2011

Board members at the Reserve Bank of Zimbabwe (RBZ) are allegedly taking home as much as US$2,000 a month in allowances, while ordinary workers receive a paltry US$150 a month. The Daily News reports that because of this key staff members are resigning and others are applying en-masse to be retrenched.

The newspaper says that so serious are the problems Finance Minister Tendai Biti summoned the board members to his office for an explanation of both the looting allegations and the mass resignations by senior employees. Workers now want the government to intervene and stop the pillaging of the central bank.

The Daily News obtained documents showing that board members collected more than US$111,000 in retainer and sitting fees, as well as fuel and communication allowances from May last year. Deputy Chairman Charles Kuwaza got US$14 020, Willard Manungo (US$10 745), Godfrey Kanyenze (US$10 920), Primrose Kurasha (US$12 870 and Daniel Ndlela US$11 570.

The controversial Governor of the central bank, Gideon Gono, did not claim any money and told the paper he would only get his share of directors’ allowances once the bank had got back on its feet. As Gono is renowned for being seriously wealth, he is unlikely to go hungry while waiting.
Workers at the bank are said to be puzzled at what the board members actually do, since Finance Minister Biti cut down the scope of responsibilities assigned to the central bank.

Additionally the Zim dollar is not in use, something that would have been a core function of the bank. Before the coalition government the bank used to be notorious for printing endless amounts of money to finance quasi-fiscal activities and prop up the Mugabe regime. This, among other disastrous policies, was blamed for the hyper-inflation that set world records.