Gono opens up on alleged personal debts

By Onias Chidzero (Nehanda Business Editor)

Reserve Bank of Zimbabwe governor Gideon Gono has denied press reports that he is protecting foreign owned banks being targeted in a controversial Zanu PF indigenisation drive because he owes them money.

A statement by Gono seen by Nehanda Radio read “It has falsely and mischievously been suggested in some quarters that as governor, I am protecting the foreign banks because I owe them huge amounts in the form of loans given to my family business entities.”

Gono proceeded to say “Well, for the record, my family and I have had business dealings with Barclays and Standard Bank dating back to 1977.

“At present, I do not owe any of these banks a single penny by way of loans or facilities. Indeed my family companies owe millions of dollars to regional and continental banks that have extended lines of credit to local banks and through them, to my family enterprises.

“A substantial component of these loans are all performing though a local bank affected by curatorship, it follows that my family business loans through these institutions also get affected, get called-up like those of any other borrowing entity operating in a difficult environment in Zimbabwe.”

“This must therefore dispel any notion that the governor gets feared or favoured by the banks or that I am protecting foreign-owned banks as a favour to them,” he said.

“I am just as ordinary a family businessperson like anyone else . . . my family companies do try to stand on their own though without over-reliance on Gideon Gono the governor. It is very tempting and exciting to sue the governor when any of his family companies experience, like any other, difficulties to meet their commitments.”

“We are now the third largest chicken-intergrated farming operation in the country after Irvine’s and CFI-Crest, all started from scratch over the last 33 years,” he said. “Some people think that we own some banks around, but nothing could be further from the truth!”

Gono, Finance Minister Tendai Biti and Prime Minister Morgan Tsvangirai have all opposed plans by Indegenisation Minister Saviour Kasukuwere to force foreign owned banks to cede 51 percent of the shareholding to so called ‘locals’.

Many fear the campaign will run the economy to the ground and is nothing more than legalised looting by Zanu PF. Gono and Biti have argued that the country only has four foreign banks out of 26 financial institutions.

A government gazette by Kasukuwere suggested that the Zanu PF policy of company seizures will next year be extended to the energy, tourism and telecommunications sectors along with privately run schools.

PM Tsvangirai has told all those affected to ignore Kasukuwere.

Faced with dwindling support which culminated in an embarrassing loss to the MDC-T in harmonized presidential and parliamentary elections in 2008, critics accuse Zanu PF of trying to win votes ahead of the next election in 2013.