Gono sponsors Herald ad admitting he stole money from farmers

By Lance Guma
29 April 2009

Reserve Bank Governor Gideon Gono, battling to block an investigation into his alleged illegal activities at the bank, has splashed out cash to sponsor a 20 page supplement in the state owned Herald newspaper on Monday. In the advert Gono, who is accused by Finance Minister Tendai Biti of running a parallel government structure, admitted raiding US$18 million that was meant to go into the accounts of tobacco farmers. This he did without their authority. On top of owing wheat farmers US$2 million the governor has already admitted taking more than US$30 million from accounts belonging to the country’s gold mines. Astonishingly Gono has promised to pay back the farmers using bags of fertilizer claiming this was, ‘the most direct way of supporting their current season’s production activities.’

Finance Minister Biti is having none of it and prompted a heated debate in cabinet last week by demanding that Gono be investigated. Mugabe however is blocking the move, arguing it is an attempt by the MDC to expose his administration. Gono meanwhile is leaving no stone unturned in his quest to justify his actions. In the adverts he talks about how he used the money to buy cars for ministers, sponsored farmers and other quasi-fiscal activities that he says helped the government survive the harsh economic climate. Other reports also accuse Gono of taking cars from central bank staff in order to give to parliamentarians, in what has turned out to be nothing more than a plot to buy their loyalty and dilute the strength of any enquiry from the legislators.

The trench warfare between Biti and Gono escalated this week with the governor taking a swipe at the reviewed national budget presented by the finance minister. In Gono’s Herald advert he alleged that Biti’s budget had ‘alien pieces of advice’ because it sought to cut activities by the central bank that Gono claimed were ‘crucial’ in helping the country’s farmers. The ad has been seen in some quarters as an attempt to incite war veterans and ZANU PF officials, who have grabbed most of the farms, to revolt against Biti.

Amidst this petty sniping though is a power struggle between ZANU PF and the MDC. Mugabe is determined to hold onto his blue-eyed men like Gono and Attorney General Johannes Tomana, while the MDC wants them relieved of their duties to allow investor and donor confidence to flourish.
But Mugabe is refusing to back down.