HARARE – President Emmerson Mnangagwa initially fired Finance Secretary George Guvamatanga last week, but later reconsidered his decision after the former banker made a humble apology and chief cabinet secretary Martin Rushwaya intervened.
According to ZimLive, Guvamatanga, who has held the position since 2018, was informed on June 21 that Mnangagwa had terminated his services due to concerns that he was undermining the country’s new currency and only releasing funds to ministries headed by his friends.
Mnangagwa was reportedly furious that the Finance Ministry, led by Mthuli Ncube, had failed to publish statutory instruments implementing declarations by Reserve Bank governor John Mushayavanhu that companies would be required to pay 50% of their quarterly taxes in Zimbabwe Gold (ZiG) and the other half in foreign currency from this month.
Mushayavanhu had stated in Masvingo last month, “Companies will stampede for ZiG from June… There has been talk that if ZiG cannot buy fuel, a passport, and so forth, then why should people want to have it? We are in a multi-currency arrangement. The government has said from June, all Quarterly Payment Date (QPD) payments are going to be made 50% in ZiG.”
Guvamatanga’s departure was reportedly due to his strained relationship with Mushayavanhu, who felt undermined by the Finance Ministry’s failure to implement the new tax payment requirements.
Guvamatanga, however, pleaded with Mnangagwa to reconsider his decision, and Rushwaya also intervened on his behalf. “He went on his knees, literally,” a source told ZimLive.
Rushwaya reportedly told Mnangagwa that firing Guvamatanga would destabilize the government, given recent changes at the environment ministry and public service commission.
Presidential spokesman George Charamba denied that Mnangagwa had fired Guvamatanga, stating, “False, very false! Secretary Guvamatanga remains ensconced in his appointment, until the appointing authority decides otherwise.”
Guvamatanga is currently facing allegations of receiving bribes from businessman Wicknell Chivayo to approve payments to a South African company, Ren-Form CC, which supplied election materials to the Zimbabwe Electoral Commission at inflated prices.
Chivayo, an ex-convict, was recently heard saying he had completely “captured” the President, hence he gets government contracts that are paid in advance.
