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Zimbabwe Central Bank is 'an empty shell', Gono
20 Jul 2011 at 06:51hrs | Views
Gideon Gono, the Zimbabwe Reserve Bank governor has confirmed that the country's central bank is "an empty shell", and called on the government to step in with an urgent rescue plan, Business Day Online reported.
He was summoned responding to the parliamentary portfolio committee on budget, finance and investment promotion, chaired by Goromonzi North MP Paddy Zhanda.
Mr Gono denied the crisis the central bank faces was in contravention of the Banking Act, saying that 60% of the financial mess was imposed by the government through its finance ministers. He said the central bank was raided for funds for the 2008 election.
The Zimbabwean government compounded the problem by borrowing $1,5bn from the central bank, leaving it a virtual shell.
Mr Gono said if the government repaid its $1,5bn debt, the Bank would be able to clear its debt and remain with a $400m balance.
Primrose Kurasha, the chairwoman of the bank's human resources committee, said the bank had retrenched 1455 employees, or 75% of its staff, but the institution did not have money to pay packages to those who had been forced out.
He was summoned responding to the parliamentary portfolio committee on budget, finance and investment promotion, chaired by Goromonzi North MP Paddy Zhanda.
Mr Gono denied the crisis the central bank faces was in contravention of the Banking Act, saying that 60% of the financial mess was imposed by the government through its finance ministers. He said the central bank was raided for funds for the 2008 election.
Mr Gono said if the government repaid its $1,5bn debt, the Bank would be able to clear its debt and remain with a $400m balance.
Primrose Kurasha, the chairwoman of the bank's human resources committee, said the bank had retrenched 1455 employees, or 75% of its staff, but the institution did not have money to pay packages to those who had been forced out.
Source - www.businessday.co.za
