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Biti mulling Zimdollar refunds: Gono

14/03/2011 00:00:00
by Zvamaida Murwira I Herald
 
Compensation ... Gideon Gono
 
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INDIVIDUALS and companies that lost their local currency when Zimbabwe "dollarised" in early 2009 should be recompensed in United States dollars, Reserve Bank of Zimbabwe Governor Gideon Gono said on Monday.

He said the State had an obligation to pay Zimbabwean dollar bank account holders the foreign currency equivalent.

The central bank chief said this while giving oral evidence before the House of Assembly Portfolio Committee on Mines and Energy.

Guruve South legislator Edward Chindori-Chininga (Zanu PF) chairs the committee.

His Chivi South colleague Ivene Dzingirayi (Zanu PF), had asked Gono what had become of "our quintillions that are in the bank".

The MP also wanted to know what exchange rate would be used if ever they were to be recompensed.

"I am on record saying Zimbabweans ought to be paid in US equivalent. It is a liability of the State and there is no running away from it," said Gono.

"As for the rates to be paid, it is for the Minister of Finance (Tendai Biti) to determine. From discussions we have had, I am aware that the minister is seized with the matter but as RBZ we don't have that money.

"We implore the minister to pay in the shortest possible time that his purse permits."

He had appeared before the committee to give his view on the Shabanie Mashava Mine (SMM) ownership saga pitting the State and businessman Mutumwa Mawere.

Gono said the US$2 million that the central bank paid to T & N - former shareholders of London-registered SMM Holdings - on behalf of the government to acquire shareholding in the mining house had not yet been repaid.

"Perhaps we (RBZ) could leverage and we become a shareholder of SMM, but we don't want to play that role," said Gono.
 
The RBZ extended the funds that the state used to bail out SMM, resulting in the firm being placed under administration.

Said Gono: "People are spending much energy in fighting each other while SMM workers and the surrounding communities are suffering following the closure of two mines at Zvishavane and Mashava.

"There is too much toxic energy running around that we could consign to the dustbin of yesteryear and open a new chapter. We can come up with amnesty to deal with past misdeeds."



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Gono said the same amnesty that he extended to bank executives should be extended to SMM. He said the amnesty had seen Trust and Royal banks getting back their banking licences, while Barbican and Intermarket had their licences returned to shareholders.

"Let bygones be bygones. We had to sit with colleagues in the banking sector and say don't do it again, here is your licence, and they said they will never carry this matter forward," he said.


 
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