Put up or shut up, Gono tells critics

Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono has come out fighting over the controversial quasi-fiscal activities and $1.1-billion debt of the central bank, telling his critics to "put up or shut up".

Gono's move came as he faced renewed attacks, this time mainly by his former colleagues within President Robert Mugabe's previous regime.

The central bank chief has been criticised for printing money and incurring huge debt at the height of hyperinflation.

However, after a sustained but ineffective campaign by his opponents to force him out, Gono, who remains close to Mugabe despite recent problems between them over Wiki-Leaks cables, is fighting back.

He says those who have been accusing him of self-aggrandisement and threatening to investigate him must "put up or shut up".

Gono is one of the outstanding issues in the political negotiations - the MDC-T wants him out. He has come under renewed scrutiny during discussions over the RBZ debt by different stakeholders, including the Parliamentary Portfolio Committee on Budget and Finance and banking executives.

Gono, impatient about being blamed for Zimbabwe's 2008 economic meltdown, appeared a few months ago before the parliamentary committee to explain the debt amid calls for a forensic audit of RBZ books.

Even his former allies, like Zanu-PF politburo member Jonathan Moyo, are now criticising him publicly.

After recent WikiLeaks disclosures on Gono, Moyo surprisingly launched attacks against his former close ally.

"In one of the most telling cables, Gono is quoted as having referred to the RBZ's contradictory policies 'that had propelled economic collapse' in 2007 as 'the necessary precursor to real change'. What this means is that the cables have provided the clearest window into what appears to have been a treacherous role played by an unaccountable RBZ, which became a threat to Zimbabwe's national interest and national security in ways that are yet to be fully understood," Moyo said.

"The fact that the RBZ was not accountable to anybody within the executive, legislature or judiciary . . . raised national security questions."

Gono said he was accountable and had detailed records to prove it . He said those who indicated that they would take action against him should do so or stop talking about it.

The RBZ, now technically insolvent, is saddled with debts of up to $1.1-billion. It has had its properties attached and sold at auction, and retrenched hundreds of staff in a bid to cut costs.

However, Gono says that those accusing him of wasteful expenditures to prop up Mugabe were being selective with information and distorting facts.

"We have facts and figures which are verified and audited confirmations and documentation in support of all transactions," Gono said.

"The problem is that discussions of RBZ debt (the creditors' side) do not include discussion of the debtors' side. This is like single-entry bookkeeping in accounting. It is unbalanced and results in uninformed conclusions, especially with some people who are bent on portraying the RBZ in a negative light."

Gono said that those calling for a forensic audit of the RBZ books were welcome to this, as all the money printed had been spent on government and public programmes.

"Discussions to date about the RBZ debt ignore debate about how much government, through the Ministry of Finance, owes RBZ. At best, in debates about RBZ debt, the discussion of RBZ debtors has centred around farm mechanisation debtors, who owe RBZ about $198-million, which is 12.4% of RBZ's debtors, while ignoring 87.6% of the debts owed to the bank by government," Gono said.

"If government repaid RBZ $1.4-billion that it owed the bank tomorrow, the bank would be able to pay its $1.1-billion debt to creditors and remain with $300-million for its capitalisation, lender of last resort operations and day-to-day needs."