THE SMART NEWS SOURCE | Feb 10 2010 06:45 | LAST UPDATED Feb 10 2010 06:45 |
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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 Agence France-Presse. 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) had 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 targeted 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 in resources from the International Monetary Fund, but said their sparring was purely professional. "It's healthy to have professional differences," he said. - AFP TOPICS IN THIS ARTICLE
Comments
Sorry, Gono. YOU and only you were in the driver's seat when your reserve bank just printed more and more money until it became worth less than lavatory paper. Don't try to shift the blame elsewhere. YOU are guilty as charged. Face up to it.
Jon Low on October 13, 2009, 8:10 am
I agree - no single individual can kill an economy. The West actually succeeded in doing that...........
Proudly_South African Proudly_South African on October 13, 2009, 8:43 am
Bob did.
Sean Redmond on October 13, 2009, 8:52 am
Absolutely Gono! You, Bob Mugabe and his cronies did a superb job of destroying your own economy. The West did the right thing by freezing your accounts and imposing travel bans.
Les Wil on October 13, 2009, 9:23 am
This guy Gono is very unprofessional, why can't he save his face and keep his dignity and he merely resigns as he sees, is the centre of controversy?
Majahamahle Ndlovu on October 13, 2009, 10:14 am
Bob's crony who also participated in looting the state's coffers. Of course he would also want to bring the Zim dollar back because then he and a minority will have monopoly of the black market forex trade by forcing the rest to use the Zim dollar while they sell the forex on the parallel market like in the days of old.
Mukai Sithole on October 13, 2009, 10:14 am
Proudly_South African: A single individual did kill the economy. Mugabe. You can be ignorant, and blame it on the west. Just like 'The west' had sanctions on apartheid South Africa.
The only difference is, dictators and oppressive regimes are acceptable to you, just as long they are black.
Sinudeity @gmail.com on October 13, 2009, 10:16 am
It is ole Bob and his African revolution junkies that are to blame!
Wisdom on October 13, 2009, 10:22 am
Its Gono, Mugabe and his Allies that killed Zim Economy....Why do they have to use US Dollar not even Pula ya ko Botswana or SA rand? In any case they can even stick to Zim Dollar because who in Zimbabwe can afford US Dollar even those who are working in Botswana and South Africa they find it difficult to live with the US Dollar. Its time to come to African currency before many people are killed by Expensive Dollar.
Simphiwe Kakaza on October 13, 2009, 11:36 am
Always good to hear from the man who "banished" the zero. From hero.. to banning the zero's... back to zero... (the value of the Zim dollar) Gono knows that his life expectancy is directly linked to keeping his position of influence... hence his panicked denials.
Marius de Kock on October 13, 2009, 11:39 am
Sinudeity,
Why do I get this feeling that you did not appreciate sanctions against apartheid SA. You are starting with your irritating nonsense of seeing everything in black and white. SA would really be better off without the likes of you.......... For your information - there is no apartheid in Zim, no dictatorship whatsoever. There is a Government of National Unity, and the sooner your likes realise that the Zim sanctions are counter productive, the better for the ordinary black Zimbabweans. Everyone knows that the West started getting vindictive when Mugabe started implementing his land reform, and (un)fortunately it was whites that were adversely affected in the process. Since then, illeagl sanctions were put in Zim and this has negatively affected poor man on the street, while the political elite is least if not at all affected by this misguided vendetta of sanctions. Your hyperbole is weak on logic, and I struggle to find out why you are so angry with Mugabe. You know that the Zim economy was sabotaged for genuine attempts of restoring the black Zimbabewan pride through repatriating his own land............ Yes, the West killed the Zim economy, and if you fail to see that - tough luck!!!
Proudly_South African Proudly_South African on October 13, 2009, 12:31 pm
we need to be aware of the fact that there are 2 factors @ play here the West n poor governance.The West played ther part in running the economy down with the neo-liberal policies that they gave Zim in 1992 and by this i mean ESAP economic structural adjustment programme which doesnt work in developin countries as the IMF and World bank postulate.This policy played a part in fortifyin the inequalities borne of colonialism.we shud realy wonder y Zim like Nigeria n DRC have bin of contestation jus 2 name a few countries.The West did not succeed in creatin a war in Zim.
This coupled with poor governance of The Mugabe regime has played a part in cripling the economy as they have abused their powers.Thisd is evidenced by the poor control measures put in place by Mugabe and the fact that he let his officials wield a lot of power... So @ the end of the day it was both the West on the 1 syd and Mugabe and his regime that played a part in crippling the Zim economy...
danger mouse on October 13, 2009, 12:39 pm
"there is no apartheid in Zim, no dictatorship whatsoever", "and (un)fortunately it was whites that were adversely affected" Apartheid was based on discrimination on the basis of skin colour. Why is it that WHITE Zimbabweans are not allowed to own land or farm it? What about the productive farms which were looted and are now standing fallow? What about Gono printing Zim Dollars and buying US Dollars of the street with them? The mess is what it is... blaming the "west" for it is childish and immature.
Marius de Kock on October 13, 2009, 1:15 pm
If Gono had a sense of shame, he should have resigned after realizing that he created the second worst currency ever in the world.The retirement of the Zimbabwean Dollar is one of the few tangible benefits of the G.N.U.At least the ordinary people now have real money in their hands and not some worthless scripts of paper.Gideon Gono, is like a stone without feelings. look at his car.Him and his Masters thy should Go.
simbarashe dziruni on October 13, 2009, 3:02 pm
None so blind as will not see, Proudly...........
Dick Corner on October 13, 2009, 3:25 pm
"My team and I were guided by the philosophy where appropriate, short-term inflationary surges are a necessary cost to the achievement of medium to long-range growth in the economy". Gideon Gono.. in his own words... Short term inflationary surges... Long range growth... How is that going then?
Marius de Kock on October 13, 2009, 4:29 pm
We all know who killed the Zim economy - Bob and his friends, of which Gono is one.
Sorry my brother, but be a man and take some responsibility!
Concerned Citizen on October 13, 2009, 6:12 pm
he is the one who killed the eceonomy because they used to print money in useless paper and make the diaspora pay their relatives with real money eg the pound , us dollar rand or pula if you check their foreign accounts and ask them how they made the money they will never be able to explain..and there is a small zezuru click that made millions if not billions out of printing money...How does one build a 125 roomed hose with four helipads living in a sick country like Zimbabwe?
somhlaba mthunzi on October 13, 2009, 6:55 pm
Gono- u succeeded where the settlers failed...u made us go back to the stone age.
Mudiwa Marange on October 13, 2009, 9:25 pm
The all too familiar refrain "I am not the one" it was Ma British - Proudly South African you are either a moron or a ZanuPF plant (probably both). Does the term "Targeted Sanctions" mean anything to you? When are you going get it out of your thick heads that there were NO general sanctions in Zimbabwe only on certain murderous, thieving individuals.
Kevin F on October 14, 2009, 9:13 am
Simbarahse
Gono would never resign nor would Mugabe allow him to. The printing of Z$ was one very serious crime but it was done for a purpose; it allowed him and the ruling elite to buy foreign currency at the official rate and sell it in the black market at 800% plus mark-up. The ruling elite made loads of money and allowed the likes of Gono to invest on his chicken farm - "the best chicken farm in Africa", by Gono's own valuation - and deposit millions in overseas accounts. If Gono was to go, the truth will come out; Mugabe did not want that.
Wilbert Mukori on October 14, 2009, 1:16 pm
Proudly South African can you please tell me how the sanctions have affected the man the street? Perhaps you should read his speech again – “He also blamed Western nations for undermining the economy with a travel ban, asset freeze and other targeted sanctions imposed on himself, Mugabe and other government officials, even though the sanctions don't affect trade and investment in Zimbabwe.” Do you know something that he does not perhaps? My brother-in-law loved your idea that there is no dictatorship in Zim and asked if you would be interested in buying the deed to the Victoria falls? One good thing that can be said about Mugabe is that he lead the people back to their ancestral way of living – no water, no electricity, no medical care, no sewage and refuse removal and everybody is back to the barter system. How wonderful.
Obed Memela on October 17, 2009, 7:39 pm
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