RBZ audit to determine Gono's fate

Written by Martin

Sunday, 08 March 2009 12:06

Gono - Will know his fate at central bank after audit
HARARE - President Robert Mugabe and Prime Minister Morgan Tsvangirai reportedly resolved to audit the Reserve Bank of Zimbabwe (RBZ) in a meeting held by the power-sharing agreement's three principals last week.

The principals settled for an audit after clashing over the continued tenure of Gideon Gono at the helm of the central bank amid donor resistance.
They agreed to institute an audit to prove if there was any impropriety on the part of the central bank chief, as alleged by the MDC principals and the donor community, and then consider if he can remain in his job.
This week Britain's Africa minister Lord Malloch-Brown said no aid package would be forthcoming to Zimbabwe if Gono remained the central bank governor.
The three principals - President Mugabe, Prime Minister Tsvangirai and Deputy Prime Minister Arthur Mutambara - met last Thursday to discuss three outstanding issues, the unilateral appointment of permanent secretaries, the swearing-in of 10 resident ministers, the appointment of Attorney General Johannes Tomana and Gono.
The Prime Minister's spokesman James Maridadi confirmed the meeting and said Tsvangirai was preparing a statement on the latest developments.
"The three principals agreed that the issue of permanent secretaries, the RBZ governor, the AG, and provincial governors would be relooked into," Maridadi said.
"They agreed on a process that is currently underway involving the Prime Minister and the Deputy Prime Minister. The Prime Minister will in due course make a public statement."
Maridadi could not be drawn to comment further.
But a government official said the three principals had agreed to institute a full audit. The Prime Minister and the Deputy Prime Minister were tasked with identifying suitable auditors to probe the central bank amid accusations of plunder.
Maridadi refused to say what the Prime Minister's position was with regards to central bank reforms.
"There is a process underway and we cannot say what his position is," Maridadi said.
A source close to the developments said Kudenga auditors and De Loitte and Touche were being considered to audit the central bank given their reputable track record.
Mugabe has made it clear that he will not countenance the removal of Gono, who he argues has actually done a fantastic job busting sanctions.
Gono's term has wrought the dramatic ruin of once-prosperous Zimbabwe, now battling acute shortages of basic goods and with stratospheric inflation hovering around 89,7 sextillion percent, according to independent estimates.
Tsvangirai has said it would cost as much as US$5 billion to repair the economy but donors want Gono to go first.
Britain's Africa minister Lord Malloch Brown said: "Yes we are holding back from general budget support to the (Zimbabwe) Government because we just don't have the confidence that the people who write the cheques and control the central bank are honest people who we could safely trust with British tax payers' money."
Analysts say removing Gono would asphyxiate Zanu (PF) in terms of funding, hence the spirited fight by Mugabe to keep his close ally in the inclusive government.
"I think pushing Gono out will be difficult, as the move would significantly undermine a pillar of Zanu (PF)'s staying power," said Mark Schroeder, southern Africa analyst at global intelligence company Stratfor.
As we reported last week, five top bankers are being considered for the central bank job, including Gono's deputy Edward Mashiringwani and Kingdom Bank owner Nigel Chanakira. Mthuki Ncube and Takura Tande of Barbican Bank and Time Bank respectively are also being touted for the job.
Mugabe reappointed Gono to fresh five-year term last December.
There was outrage from the MDC, which said the appointment violated he power-sharing agreement which stated that all senior government appointments would be done in consultation with the Prime Minister.
The Zimbabwean on Sunday understands the principals also resolved to reverse the appointment of permanent secretaries unilaterally made by Mugabe on February 24.
All permanent secretaries including the new ones reappointed by chief secretary to the President and Cabinet Misheck Sibanda have been invalidated by Tsvangirai who stated that Sibanda had no authority and right to make such appointments.
On Friday all the permanent secretaries presented their CVs to Tsvangirai's office for fresh vetting. It is believed Tsvangirai and Mutambara would get to appoint permanent secretaries from their own parties.
Tsvangirai and Mutambara were reportedly drafting a new line up of permanent secretaries and were looking at a wide range of CVs.

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