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Zimbabwe central bank chief denies "killing" economy

President Robert Mugabe's unilateral appointee rejects calls for his resignation

Oct 8, 2009 6:10 PM | By Sapa-AFP

Zimbabwe's Reserve Bank chief Gideon Gono, who presided over the collapse of the local currency, insisted he was not to blame for "killing" the nation's economy, in an interview with AFP.


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Zimbabwe's Reserve bank governor Gideon Gono has been accused of acquiring firms through government grabs.
Zimbabwe's Reserve bank governor Gideon Gono has been accused of acquiring firms through government grabs.
Photograph by: James Oatway
quote The immorality and irrationality of the whole argument is that 'Gono must go because he printed money and he killed this economy. quote

He again rejected calls for his resignation after President Robert Mugabe's unilateral decision to appoint him to a new five-year term last year -- one of the major disputes facing the eight-month-old unity government.

"The immorality and irrationality of the whole argument is that 'Gono must go because he printed money and he killed this economy.'

That's a white lie because no single individual can harm or kill an economy," he said.

Gono's tenure at the helm of the Reserve Bank saw inflation soar from already staggering four-digit figures when he took office in 2003 to numbers estimated in many multiples of billions last year.

He introduced new bank notes, sometimes every month, in denominations that reached 100 trillion Zimbabwe dollars - even after repeatedly slashing digits to keep the numbers manageable.

The government finally abandoned the currency in January and now uses US dollars as its currency of reference.

Gono also stands accused of siphoning off state money into secret accounts in Asia and Europe, a charge he denies.

"Whatever I did had authorisation from the government of the day," said Gono, a former commercial banker.

He described his job as "a plumber mending burst pipes. I prevented this country from descending into chaos like Somalia."

In his defence, Gono said "bureaucrats" blocked his proposals for economic reforms. He points out that he drew ire from party loyalists for criticising import and price controls that left most store shelves empty two years ago.

He insisted that feuding between ZANU-PF and the rival Movement for Democratic Change (MDC) has done more than his policies to hurt the economy, which has been shrinking since 1997.

"The greatest economic impediment has been political quarrels between ZANU-PF and MDC. There was never commonality of vision. While some were building, others were destroying," Gono said.

He also blamed western nations for undermining the economy with a travel ban, asset freeze and other targetted sanctions imposed on himself, Mugabe and other government officials, even though the sanctions don't affect trade and investment in Zimbabwe.

"The single biggest obstacle to our economic progress has been the imposition of sanctions against this country," Gono said.

The Global Political Agreement (GPA) signed in September 2008, which led to the creation of the unity government in February, calls for Mugabe to "consult" with the MDC leader, Prime Minister Morgan Tsvangirai on major appointments.

Mugabe unilaterally reappointed Gono in October last year while still in talks with MDC over key government posts, but the central bank boss said he was properly named.

"I am definite that the removal of sanctions was mentioned in the GPA and not me," he said.

However, he conceded that unity deal was the road map against which the government is "legitimately being judged".

Now, without control over the money supply, Gono has found his role sharply curtailed and his influence overshadowed by Finance Minister Tendai Biti, who was drawn from the MDC.

Gono is publicly feuding with Biti over control of 400 million dollars in resources from the International Monetary Fund, but said their sparring was purely professional.

"It's healthy to have professional differences," he said.

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Comments

Oct 8 2009 06:34:09 PM
siganoga
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lah blah blah.... just another thick munt..
Oct 8 2009 06:55:14 PM
Phaedioux
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This man is Zim's Mafia banker - of course he will deny everything.
I wish the journalist had asked him why he is attempting to gain control of the IMF loan and why he is squabbling with Biti over Donor funds.
Why did he print useless bank notes in ridiculous denominations knowing full well that it cost more to print the notes than their denomination was worth?
Where has he transferred the political elites' funds?
Oct 8 2009 07:00:35 PM
cynicaloldliberal
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unbelievably stupid african politicians, almost deliberately destroying everything in sight, and then finding others to blame and denying everything.

the anc do it all the time. read the article again, how many more like that have there been this year ? thousands !! and what about the history of africa ? and today another 2.5 million spent of fancy cars by deputy ministers.

less-educated africans will destroy every piece of civilisation for no other reason than to get rid of whites, not realising that it is black people who are being hurt the most in the process. it is proven over and over and over again but they cannot learn. so julius malema takes advantage of their lack of education, and easily sows division and hatred. then we continue down.

the most amazing part is that i care more for the young children all over south africa than julius malema does, and i pay tax, and he does not. he abuses tax money by going directly against what his president said about fancy expensive cars.
gono and mugabe and zanu-pf in zim, malema and vavi and the anc in south africa. destroy, destroy.
Oct 8 2009 07:37:38 PM
airbud
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Zimbabwe is already a dressed up Somalia. Especially in the Rural Areas:

http://www.swradioafrica.com/news081009/soldiers081009.htm
Oct 8 2009 07:44:53 PM
mcritic
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This one beats the lies spread at the Selebi trial by the proverbial 10 000 miles.

He has built a US$50 000 000 hoome in Harare and runs the Mugabe and JOC Bank Accounts all over the world.

This one is as bad a thief as Mugabe and he has stolen as much as well. he raided the private bank accounts of people and stole millions to benefit Mugabe and his senior thieves.

He now wants to get at the US$400 million IMF money - but Biti is stopping him. So it is all out WAR BETWEEN THE TWO.

It must be hell for Mugabe, Gono and JOC to see all that money without a chance tpo steal it - like they did the R300 000 000 provided to Zimbabwe by the SA Government last year. Vanished into thin air via the normal Gono - or I mean Gone - procedures.

He deserve one permanent residents - after his day in court. for Mugabe and him - there is no way a Zimbabwe jail would do - their balls will be cut out there - they will be lucky to get a jail sentence in Holland.

I say away with all CROOKS - ESPECIALLY MUGABE, GONO AND JOC MEMBERS.
Oct 8 2009 07:50:55 PM
Mommacyndi
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Maybe they should have employed the 'plumber' as he couldn't make a bigger mess of the economy than Gonzo did. Maybe a professional plumber could be called to explain the sanctions to Gonzo.
Oct 8 2009 08:41:06 PM
Tackler
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Gono was caught holding the smoking gun. He single-handedly wrecked the Zim economy even if he was only carrying out Mad Bob's orders. It's like Himmler serving Hitler. The agent is as guilty as the commander.
Oct 8 2009 08:47:26 PM
hoodoo
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Gono is a goon...but he holds the cards...because he is Mugabe's gat gabba....Morgan seems a little weak at moment, but the tide will turn...
Oct 8 2009 09:10:18 PM
jsavo
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Difference between Zim and Somalia is that all they had to do was maintain what was one of the most advanced economic entities and food producers in Africa. Somalia was always non developed.
Oct 9 2009 02:41:40 AM
azaniaisfree
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remember Thabo Mbeki said - there is no crisis in zimbabwe -
perhaps he know something that others didnt ?


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