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Gono owes local banks $40 million
13 Jan 2014 at 05:12hrs | Views
Bikita West MP Munyaradzi Kereke says ex-RBZ governor owes local banks $40 million.
Kereke said Gono borrowed the money using fraudulently acquired collateral. He claims Gono covered his tracks by claiming the funds he squandered had been deployed to an unnamed sensitive national institution.
The following is the full text of the letter written by Munyaradzi Kereke reporting his former boss Gideon Gono to the Anti-Corruption Commission for "multiple acts of corruption, theft and abuse of office" at the Reserve Bank of Zimbabwe.
Number 94 Norfolk Road,
Mount Pleasant,
Harare
8TH October, 2012
"without prejudice"
The Chair Person
Mr D. D. Chirindo
Zimbabwe Anti-Corruption Commission
872 Betterment Close
Mt Pleasant Business Park
Harare
Dear Mr Chairman,
Re: FORMAL REPORT OF MULTIPLE ACTS OF CURRUPTION, THEFT AND ABUSE OF OFFICE BY DR GIDEON GONO, GOVERNOR OF THE RESERVE BANK OF ZIMBABWE (RBZ)
Mr Chairman I write to submit, for the Commission's investigation, several acts of corruption, theft, and abuse of office by Dr Gideon Gono, Governor of the Reserve Bank of Zimbabwe.
This formal report follows due advice I recently received from the Parliament of Zimbabwe which determined that the criminality of matters I had raised with Parliament required your Commission to fully investigate to bring about justice.
I wish to state upfront that all these cases were fully documented and handed over long back to State Security, by the writer of this letter given the sensitivity of DR GIDEON GONO'S portfolio but State Security instead acted in direct contravention of their own mandate and tipped DR GONO who then summarily locked me out of the Reserve Bank of Zimbabwe as a way of masking these multiple crimes.
Some members of State Security are also heavily involved in the corrupt activities DR GIDEON GONO did and I stand ready to constructively work with the Commission in bringing them to account.
Undeterred by this abuse, I am taking this step to make this report, albeit at great personal risk, so that as a country we stand firm in the fight against corruption in all its forms.
The fair, balanced and professional hand of the Commission is also called upon to act objectively given that some members of the old Anti-Corruption Commission who remain part of the present team were heavily involved in corrupt activities with DR GIDEON GONO.
DR GIDEON GONO has been roundly informing the country's vital organs, particularly STATE SECURITY that I was seeking to cause fractures in the Government through exposure of STATE SECRETS.
8. This resulted in me being a pursued breathing object of elaborate operations to disable me financially, spiritually, conjugally and physically, including intrusions into my own bedroom by forces I knew neither as to their origins nor cause.
Mr Chairman, I remain fearless and unmoved, driven by my rock-solid conviction that those in positions of authority at the Reserve Bank of Zimbabwe and elsewhere in STATE SECURITY, whose tenures in office are naturally not up to infinity, will one day understand that my cause was the just quest for justice and nothing else.
Mr Chairman, I do not and will never seek to compromise any matters relating to the security of the State, but my mission is simply that of playing a modest role in the fight against the now horned creatures called corruption and abuse of office in our country. Period.
Why then must formal structures of the State be used to fight and seek to vainly destroy me when all that I stand for is nothing but justice in defence of Public Interests?
Mr Chairman, short of being killed, I shall not and I will not retreat.
13. THE CRIMINAL ACTS AND ABUSE OF OFFICE BY DR GIDEON GONO
DR GONO'S EXCESSIVE BORROWINGS
13.1 As at the end of July, 2011, DR GIDEON GONO's directly owned companies, being his New Donnington Farm and Lunar Chickens collectively owed US$40.1 million to local banking institutions. DR GIDEON GONO is the principal owner and Chairman at the said operations.
13.2 At that time, end of July, 2011, New Donnington Farm, being DR GIDEON GONO's farm owed local banks the following amounts: CBZ Bank (US$25.9 million); Premier Bank (Eco Bank) (US$358 thousand); Metropolitan Bank (US$987 thousand); Stanbic Bank (US$1.5 million); and ABC Bank (1.5 million); whilst Lunar Chickens owed Interfin Bank (US$1.85 million); Kingdom Bank (US$6.9 million) and Renaissance (Capital) Bank (US$1.2 million). There are a number of documents at hand which present proofs of these borrowings. It is important to note that even in cases where the loans would have been secured offshore say from Afreximbank of PTA Bank, it is standard banking procedure that such exposures are duly recorded on the balance sheet of the local disbursing bank for all purposes of determining the bank's credit risk and capital adequacy prudential requirements.
13.3 Whilst it is not criminal for DR GIDEON GONO or his own companies to borrow any amount from the banking sector per se, the following factors attract serious moral and criminal blame on DR GIDEON GONO on account of both abuse of office and misuse of public funds by DR GIDEON GONO:
13.3.1 DR GIDEON GONO is Governor of Zimbabwe's Central Bank. By excessively borrowing from almost every other bank, this directly undermines his independence and objectivity in firmly supervising banks in Zimbabwe. It is largely the reason why Zimbabwe recently experienced repeated bank failures due to lax supervision by the Central Bank owing to the fact that DR GIDEON GONO is highly compromised by his excessive borrowings from his regulatory subjects.
13.3.2 DR GIDEON GONO must produce the list of assets he used to serve as collateral for the US$40 million plus borrowings from banks. He must list when those assets where bought and how they were paid for. In the case such assets are held in shelf companies DR GIDEON GONO must reveal to the Commission who the directors of those companies are and how they funded those assets. This would explicitly bring about the truthful submission that DR GIDEON GONO used assets bought using Reserve Bank funds to secure his own private borrowings. DR GIDEON GONO cannot argue that his loans had no security for such a case is inadmissible by the very same Reserve Bank of Zimbabwe credit risk prudential rules on banks DR GIDEON GONO must strictly enforce in the public interest.
13.3.3 Two banks that are heavily owed money by DR GIDEON GONO virtually collapsed (Renaissance Bank and Interfin Bank) on the back of bad loans and DR GIDEON GONO as Governor of the Central Bank was a significant cause of such bad loans. The High Court recently ruled in favour of Capital Bank for the bank to attach DR GIDEON GONO's properties as execution for a long outstanding bad loan DR GIDEON GONO's Lunar Chickens project failed to pay and DR GIDEON GONO stood as surety.
13.3.4 The fact that DR GIDEON GONO as Governor of the Central Bank actively plays a part in degrading the quality of banks in the Zimbabwean economy yet he is supposed to oversee the supervision of the same banks must attract the deepest reprimand of DR GIDEON GONO by society in general. DR GIDEON GONO merits outright dismissal from office if not self-imposed resignation on account of these glaring excesses and conflict of interest. The Constitution of Zimbabwe explicitly bars anyone who fails to repay borrowed loans from holding a public office.
DR GONO'S MULTI-MILLION DOLLAR RESINDENCY
13.4 DR GIDEON GONO fraudulently took at least US$15 million in cash from the Reserve Bank of Zimbabwe between 2007 and 2008 through Mirirai Chiremba who at that time got the foreign exchange from parallel market purchases and used same to construct DR GIDEON GONO's multi-million dollar residency in Borrowdale, Lunar Road.
13.5 The Reserve Bank's books of accounts were then balanced by exaggerating amounts declared as having been extended to various Government agencies.
13.6 DR GIDEON GONO must stand ready for an in loco inspection and valuation of his property, should the Commission pleases for him to produce evidence on how he funded the construction.
Theft of US$6.5 million
13.7 It is an absolute fact that the Reserve Bank of Zimbabwe was defrauded of US$6.5 million on or around June/July 2008 and this entire amount was written off the Reserve Bank of Zimbabwe's audited income statements.
13.8 The money was advanced to a company called Saltlakes Holdings under signature of DR GIDEON GONO under a Memorandum of Deposits (MOD) programme.
13.9 DR GIDEON GONO actively facilitated this fraud through a convoluted array of write-offs well orchestrated between DR GIDEON GONO and Saltlakes Holdings.
13.10 This fraud was also under active investigation by the Zimbabwe Republic Police on or around 8th of September 2011 under reference CID Homicide Harare DR 15/07/10. DR GIDEON GONO openly refused to cooperate with the Zimbabwe Republic Police in their investigation of this fraud which has frustrated progress in this serious fraud case.
13.11 BDO Kudenga and Co auditors verified and confirmed that indeed the US$6.5 million was due to the Reserve Bank as at 31 December 2008 from Saltlakes.
US$200,000.00 CASH GIVEN TO THE FINANCIAL GAZETTE
13.12 DR GIDEON GONO abused his office by giving US$200,000.00 cash belonging to the Reserve Bank of Zimbabwe to the Financial Gazette, a company in which he is the majority shareholder. This amounts to theft of public funds. The Editor, Mr Hama Saburi and the CEO received the cash from the RBZ.
THEFT OF GOLD
13.13 DR GIDEON GONO routinely sold gold belonging to the Reserve Bank of Zimbabwe using runners and cash from such sales would be given to DR GIDEON GONO for own gain. The writer routinely cautioned DR GONO against this but to no success.
13.14 In their 2006 Audit, Deloitte and Touche picked that a total of 403.53 ounces of gold coins were missing. DR GIDEON GONO was asked about the whereabouts of these coins but responded that "The process of investigating the location of the gold coins is ongoing". Three years letter in 2009 when BDO Kudenda and Co where conducting the 2008 Audit, still the gold coins worth around US$350,794.57 at the ruling price of US$869.75 per ounce as at 31 December, 2008 were missing.
13.15 On or around 23 March 2009, DR GIDEON GONO authorised disposal of 67.84 kgs of gold belonging to the Reserve Bank of Zimbabwe. Out of the proceeds of about US$1.83 million, DR GIDEON GONO took US$200,000.00 in cash for an undisclosed purpose unrelated to the Reserve Bank of Zimbabwe. The writer once again queried this but was rudely shut out. The writer made reports to State Security but they tipped DR GONO and the matter died there.
Carslone Enterprises (Private) Limited ("Carslone Mine")
13.16 The Reserve Bank of Zimbabwe owned 100% and operated a mine called Carslone Mine in the Midlands Province.
13.17 DR GIDEON GONO acting through his subordinate Mirirai Chiremba caused the fraudulent transfer of ownership of this mine to a largely privately owned joint venture operation without the Reserve Bank of Zimbabwe Board approval.
13.18 This effectively caused the Reserve Bank of Zimbabwe to be defrauded of its gold mine on 1 April 2011. Numerous inquiries by the Parliamentary Committee on Budget and Finance on Carslone went un-responded to by DR GIDEON GONO, further undermining the purity of this transaction.
13.19 This transaction breached basic corporate governance requirements for a Central Bank, as well as being utterly fraudulent.
13.20 The writer openly reported this matter to all Board Members of the RBZ but they roundly ignored the matter after getting huge sums of money as allowances from DR GIDEON GONO.
13.21 The writer fought a lone battle, leading to repeated open abuses by the Board for the writer's stance against the corruption that was taking place. The writer has on hand explicit Memos of abuse from RBZ Board Members.
FRAUDULENT Saudi Arabia Gold Deal
13.22 On 12 May 2006, the Reserve Bank of Zimbabwe entered into a very corrupt, detrimental contract, under the blessings of DR GIDEON GONO where Zimbabwe's purified fine gold from the Reserve Bank of Zimbabwe was being sold to a private jewellery company in Saudi Arabia called Suliman Al Othaim Jewellery at an incomprehensible discount of 34% at a time Zimbabwe itself was on its knees short of foreign currency.
13.23 Gold worth US$5 million was shipped under this very weird, fraudulent and reckless contract that was highly prejudicial to Zimbabwe.
13.24 The corruption around this transaction is further amplified by the fact that on occasions, DR GIDEON GONO would send Millicent Mombeshora to fly to Saudi Arabia to the jewellery shop which was receiving this mysteriously discounted gold.
13.25 The world over, no country, let alone that in dire need of foreign currency would sell pure fine gold at a discount of 34% when gold itself is just as good as cash. Doing so is nothing short of treasonous behaviour by a Central Bank Governor rampaging on national reserves he is supposed to safeguard.
13.26 No matter what technical jargon DR GIDEON GONO may seek to field as justification for the strange 34% discount on fine gold bullion, the actions by DR GIDEON GONO clearly betrayed the trust bestowed on him by the country for him to jealously safeguard the country's foreign exchange and gold reserves.
13.27 DR GIDEON GONO presided over this criminal transaction which he secretly handled personally with Millicent Mombeshora. He reacted very violently when the writer unearthed it and confronted him.
13.28 The writer having discovered this anomaly swiftly wrote a detailed report and handed it to STATE SECURITY but once again, they tipped DR GONO who then poured tirades of abusive words to me in front of all RBZ Board Members taunting that "Kereke don't waste time reporting me to State Security. I saved this country from collapse so they cant do anything to me".
13.29 In their detailed Management Report for the 2006 31st December Audit, Deloitte and Touche auditors picked this 34% discount anomaly but nothing was done.
13.30 The Commission must unravel this unbridled act of fraud against every Zimbabwean and bring DR GONO to justice. STATE SECURITY must also explain why they tipped DR GONO and did nothing when the writer reported the matters to them.
Theft of Reserve Bank of Zimbabwe Stock Exchange Listed Shares
13.31 The Reserve Bank of Zimbabwe used to routinely buy shares from the Zimbabwe Stock Exchange as part of its investment programme between 2004 and 2008.
13.32 On 27 January 2006, DR GIDEON GONO acting through Millicent Mombeshora, through whom the bulk of the shares DR GIDEON GONO would buy the shares, regardless of the curious fact that she was not in the Finance Division, caused the fraudulent and irregular release of 67,322,636 (worth around US$7 million then at around 10cent per share) Dairibord and 31,187,000 (worth around US$6 million then at around 20cents per share) Cottco signed blank share transfers and share certificates belonging to the Reserve Bank of Zimbabwe to Millicent Mombeshora's individual person.
13.33 No where in the history of Central Banks in the world would one ever get a case where shares worth millions of US$ belonging to the Central Bank are released to an individual on blank signed transfer forms and those shares never recorded in the Central Bank's asset register or share certificate register. This act alone clearly shows beyond any reasonable doubt the fraudulent intent by DR GIDEON GONO and Millicent Mombeshora on these stolen shares.
13.34 These share certificates vanished completely from both the Reserve Bank share register and books of accounts for 2006, 2007, 2008 and both DR GIDEON GONO and Millicent Mombeshora refused to disclose where they had put the shares. These shares were never recovered.
13.35 In 2009, the writer, acting together with Auditors and the Finance division worked tirelessly to intercept and secure replacement share certificates.
13.36 DR GIDEON GONO's criminal blameworthiness as Governor of the Central Bank is deepened by the fact that he adamantly approved that these shares be taken out of the books of the Reserve Bank of Zimbabwe and all efforts by auditors to have the matter unravelled were fruitless.
13.37 Former Reserve Bank of Zimbabwe Division Chief of the Finance Division Mr Hillary Munyati resigned in the midst of the share theft scandal and the writer actively worked with Mr Munyati and Mr Masoso who took over from Mr Munyati to frustrate the theft by DR GIDEON GONO and Millicent Mombeshora.
13.38 Between 2007 and 2008 DR GIDEON GONO, again acting with Millicent Mombeshora and via Remo Stock Brokers externalised at least US$10 million worth of shares belonging to the Reserve Bank of Zimbabwe to the London Stock exchange, and shares worth around US$3 million were given to Remo for their own account ostensibly to pay off commissions and an unclear loan, whilst the balance imported fuel which went into a special fuel fund for the 2008 Harmonised Elections. The full US$10 million worth of fuel was never accounted for, as DR GIDEON GONO and Millicent Mombeshora exclusively kept the fuel coupons between themselves. The total value of funds generated from the share disposal in London was never fully reconciled.
13.39 DR GIDEON GONO's criminal nature was typically subsumed and kept hidden under his tendency of blending genuine Government programmes with other personal operations. When Auditors dared to ask DR GIDEON GONO for answers he would routinely gross everything under "national programmes" such as the 2008 Elections. The issue of abuse of share proceeds is a typical case in point.
13.40 DR GIDEON GONO should fully reconcile where the shares which the Reserve Bank of Zimbabwe held between 1 December 2003 and 31 December 2010 have all gone to. The Schedule of Discovered documents gives the shareholdings during the second quarter of 2009 which DR GIDEON GONO must also fully account for.
13.41 The writer had endless fights with DR GIDEON GONO as the writer insisted that such practices were unlawful and posed great risk to the Bank and country but all this advice fell on deaf ears as DR GIDEON GONO repeatedly exuded remarkable gestures of invincibility, saying that no one would ask him.
Gross Irregularities, Fraud and Abuse of Office on Farm Equipment
13.42 DR GIDEON GONO abused his position to award himself excessive quantities of farm equipment, taking at least 2 mega Combine Harvesters, 12 Tractors, 4 seed drills, 4 planters, and 4 boom sprayers and imported expensive grain silos from South Africa using exporters surrender funds. Please take note that the writer never got anything, not even a wheelbarrow from this programme.
13.43 What DR GONO did is absolutely unacceptable behaviour of a Central Bank Governor, which is not only abusive but criminal. It was, therefore, the height of intellectual dishonesty for DR GIDEON GONO to brazenly sue the writer for damages when the writer was simply making a genuine clarion call for DR GIDEON GONO to exercise utmost restraint in safeguarding public funds against the background of his excesses.
13.44 At one point, such abuse by DR GIDEON GONO was detected by State Security and was well documented as proved in the Memorandum which the writer can produce but STATE SECURITY looked the other way and did nothing to bring DR GONO to account.
Payments for Equipment Not Delivered
13.45 DR GIDEON GONO, under his direct signature authorised for payment of very substantial amounts of money ostensibly for the purchase of tractors, motor vehicles and generators which were never delivered to the Reserve Bank of Zimbabwe.
13.46 Forensic audits are in order in the public interest to check the possibility of fraudulent collusion between DR GIDEON GONO and the companies that received hefty sums of money under signature of DR GIDEON GONO but never delivered the products to the Reserve Bank of Zimbabwe.
13.47 Efforts by External Auditors to have DR GIDEON GONO correct this anomaly were summarily dismissed by promises that management was going to look into it. This, however never happened.
13.48 The writer had well documented office battles with DR GONO over these glaring anomalies.
13.49 The overall effect of DR GONO'S very suspicious payments for no deliveries is that the Public has been defrauded of millions of its money.
13.50 External Audit reports for 2006; 2007; 2008 and 2009 as can be easily verified present explicit examples of the multiple cases of prejudice as submitted by the writer. The total prejudice is a least US$15 million and DR GIDEON GONO's consistent air of indifference on this raises more questions on his commitment towards safeguarding the nation's gross foreign exchange reserves.
13.51 The other very disturbing irregularity is that the bulk of these assets fully paid for but never received by the Reserve Bank of Zimbabwe are not reflected in the books of accounts of the Central Bank.
13.52 This raises a more fundamental question of how the audited accounts of the Reserve Bank of Zimbabwe, particularly for 2006, 2007, 2008 and 2009 were signed off when they omitted the glaring anomalies the Auditors themselves had picked.
13.53 The prominent reason for this is that external auditors of the Reserve Bank are themselves compromised in that they get direct payment of fees from the Reserve Bank itself and such fees are negotiated and agreed upon with the Reserve Bank. It can not be ruled out that the External Auditors tend to look the other way on areas where they pick anomalies to avoid financial sanction.
Motor Vehicles and Generators
13.54 On 27 September, 2007, DR GIDEON GONO directed the Reserve Bank of Zimbabwe's procurement Division to acquire for him 10, 4×4 Prado vehicles which he later took delivery of for his own undisclosed personal use. This same practice was the norm in later years and months.
13.55 Also DR GIDEON GONO fraudulently signed an acknowledgement of debt on 3 March, 2009, with Trade Access (Pvt) Limited, Oasis Motors for US$5.2 million ostensibly for vehicles and generators allegedly delivered to the Reserve Bank. The signing by DR GIDEON GONO had the effect of obliging that such debts be paid by the Reserve Bank of Zimbabwe yet not all cars and generators were supplied whilst some of the cars actually went to destinations that were neither the Reserve Bank nor legitimate Government beneficiaries. The effect was, therefore, to defraud the Reserve Bank and hence the Public.
13.56 The writer again repeatedly pointed out these issues but was flatly quelled into silence through repeated threats.
Fraudulent Allowances Claims
13.57 On 18 December, 2006, DR GIDEON GONO fraudulently claimed and got paid Z$1,320,000,000 for alleged use of own house when in fact DR GIDEON GONO was issued with a Bank House, being number 15 York Road Mandara, which DR GIDEON GONO does in fact use.
13.58 DR GIDEON GONO approved this fraudulent claim for himself before directing that the then Division Chief, Finance Mr Hillary Munyati issue a cheque dated 18 December, 2006 paying DR GIDEON GONO in time for Christmas. The payment, which was done together with other claims was done under Reserve Bank of Zimbabwe cheque number 091038110102022363701.
13.59 The writer's efforts to block this were futile as he was bull-dozed to stand aside.
Abuse of Reserve Bank Funds for Afritrade's ZIMRA VAT Obligations
13.60 On or around 1 July, 2009, DR GIDEON GONO, together with Millicent Mombeshora defrauded the Reserve Bank of Zimbabwe of US$3.7 million, a matter which was also picked up by ZIMRA, by causing the Reserve Bank of Zimbabwe to take on ZIMRA VAT obligations that belonged entirely to a private company called Afritrade International.
13.61 DR GIDEON GONO, acting through Millicent Mombeshora acknowledged to ZIMRA that the Reserve Bank was going to take over Afritrade debts to ZIMRA ostensibly because Afritrade was dealing with the Reserve Bank of Zimbabwe on importation of basic commodities. This was, however, not true as ZIMRA had made a determination that the Tax liability had nothing to do with Reserve Bank programmes.
13.62 DR GIDEON GONO's actions are curious in that the Reserve Bank's basic commodities importation programme (BACOSSI) was exempt from paying VAT, yet DR GIDEON GONO was happy to accept the US$3.7 million liability for Afritrade International, which was at that time supplying non Reserve Bank buyers, including Millicent Mombeshora's West Gate Spar shop on account of which ZIMRA had raised the VAT bill.
Serious Prejudice to the Country on Fertilizer/Grain Importation by Intshona Agricultural Products (Pty) Ltd
13.63 DR GIDEON GONO, working with Millicent Mombeshora unilaterally appointed a company called Intshona to supply fertilizer into Zimbabwe during the 3rd quarter of 2007 under multi-million dollar contracts.
13.64 Intshona was subsequently paid around US$6 million via a letter of credit from the PTA Bank on behalf of the Reserve Bank of Zimbabwe under a US$20 million PTA Bank letter of credit.
13.65 Upon failure to supply the fertilizer, Intshona, under concurrence of DR GIDEON GONO, tactfully switched and undertook to deliver maize. After a full year, in 2008, no grain ever came into Zimbabwe from this company under the payment that had long been done. Zimbabwe lost value, no doubt.
13.66 On 2 June, 2008 Intshona presented yet another colourful proposal, with the concurrence of DR GIDEON GONO to supply fertilizers under a fresh US$5 million letter of credit for the 2008/09 agricultural season. The company once again let the country down with serious under-delivery.
13.67 Over and above this abuse, contrary to the explicit covenants in the various fertilizer supply contracts which stipulated a 90-day credit supply cycle, Intshona was invariably being allowed by DR GIDEON GONO to directly claim from Nedbank, South Africa, for upfront cash payments before delivery. The overall effect of this extractive affair with Intshona was to not only deprive the country of valuable financial resources but to frustrate the country's food security programmes through inordinate delays and shortages of agro-inputs.
13.68 The writer wrote several memoranda of protestation to DR GIDEON GONO to highlight the problems that were being caused by this relationship but all advice fell on deaf ears. The writer stands ready to produce these protracted Memos which were flatly ignored by DR GONO as he rode high the bubble of invincibility at that time.
Missing Funds at Rand Merchant Bank
13.69 During the 2008 external audit, BDO Kudenga and Co unravelled a total of US$3.1 million that was not accounted for at the Reserve Bank's Rand Merchant Bank account.
13.70 DR GIDEON GONO, working closely with Millicent Mombeshora allowed Millicent Mombeshora to be the singular transactor on the Rand Merchant Bank Reserve Bank account which exposed the Central Bank to risks of theft, leading to the missing funds. Millicent Mombeshora was also allowed to singularly move millions of gold bullion without Board approval as part of the illicit commodity deals.
13.71 DR GIDEON GONO remained indifferent and aloof to suggestions and advice for a full forensic investigation on the missing funds at Rand Merchant Bank. All transactions on this account were being carried out exclusively by Millicent Mombeshora, working with DR GIDEON GONO.
Fraudulent Travel Claims by DR GIDEON GONO
13.72 In the December 2009 external audit, KPMG Auditors unravelled fraud perpetrated directly by DR GIDEON GONO through unsubstantiated travel claims which he personally authorised for himself.
13.73 The total amount which was not accounted for was US$741,649.02 and it was all paid out on instructions by DR GIDEON GONO's personal assistant Denise Naicker to lower level staff to simply pay, without any details on what was being paid for. The explicit proofs of this are there.
Treasonous Breaches
13.74 DR GIDEON GONO who is recipient number 88 of all Cabinet proceedings, notwithstanding that he is not a Cabinet Minister of Government, routinely circulated such sacred Cabinet minutes to embassies of hostile countries. Proofs exist on this.
The US$1.5 million Prejudice to the Reserve Bank by Prime Minister Mr Morgan Tsvangirai and DR GIDEON GONO
13.75 On 11 November, 2009, DR GIDEON GONO casually wrote on a scrap piece of paper an instruction to a lower level Reserve Bank Staff member to hurriedly make a transfer from the Reserve Bank of Zimbabwe US$1.5 million into an account at ZB Bank called TWRE Zim (Pvt) Limited, account number 4112-049163-200.
13.76 This amount was duly transferred from the Reserve Bank of Zimbabwe on 13 November, 2009 and after the Reserve Bank lost control over this money, the funds were later abused by the Prime Minister and his cousin, Hebson Makuvise. As of today, the Reserve Bank of Zimbabwe has not recovered its money.
13.77 DR GIDEON GONO frantically refused to cooperate with the Zimbabwe Republic Police who were and are still investigating this serious fraud under reference number CID HQ ER 31/11.
13.78 The actions by DR GIDEON GONO were seriously prejudicial to the public good, as much as they were criminal.
13.79 The writer wishes to explicitly state that he was verbally abused and ultimately fired from the Reserve Bank of Zimbabwe due to strong differences on this fraud case. The writer's view was that the Reserve Bank was simply supposed to be factual and had to cooperate with the Police investigations, whilst DR GIDEON GONO's view was that we had to cook up records to protect the Prime Minister. It is the writer's respectful submission that the laws against corruption, and all laws in the Land for that matter, must be blind to people's stations in Government or social circles. DR GONO and the Prime Minister must lead by example and be accountable.
Misrepresentations on Zimbabwe's IMF Status
13.80 DR GIDEON GONO grossly abrogated on his duties as Reserve Bank Governor by not attentively advising Government on the true status of Zimbabwe on the IMF.
13.81 When Zimbabwe was allocated its Special Drawing Rights (SDR) in the equivalence of around US$520 million in 2009, the IMF deducted SDR66,402,156 and stashed them in an escrow account, which amount is in fact equivalent to Zimbabwe's total arrears with the IMF of around US$140 million. Technically, therefore, Zimbabwe did clear its arrears with the IMF but due to collusion of unexplainable indifference between DR GIDEON GONO and the Minister of Finance Mr Tendai Biti, the country remains under sanction by the IMF on account of the arrears which in essence have been cleared.
13.82 It is not clear why DR GIDEON GONO and the Minister of Finance are folding their hands watching Zimbabwe remaining under sanctions yet it has technically cleared its arrears given that all the SDRs Zimbabwe got belong to Zimbabwe and they were issued for the specific purpose of dealing with global cash flow setbacks.
13.83 Further DR GIDEON GONO watched as gross irregularities unfolded in respect of US$150 million which was withdrawn by the Minister of Finance from the SDR account held in the books of the Reserve Bank of Zimbabwe.
13.84 The matter, which is under active investigation by the Zimbabwe Republic Police is being frustrated by DR GIDEON GONO's refusal to cooperate with the Zimbabwe Republic Police and in anger asked the writer to be the one responding to the Zimbabwe Republic Police. There were heated arguments between DR GIDEON GONO and the writer as yet again DR GIDEON GONO's view was that records be cooked up to protect Minister of Finance from the Police prob. The writer's view was simply that facts be presented as facts without any other subjective motives and without any malice on anyone. The matter is under investigation by the Zimbabwe Republic Police under reference CID HQ ER 03/2011.
13.85 During their audit of the Reserve Bank of Zimbabwe for 2009, BDO Kudenga and Co picked the irregularities on the IMF account in the books of the Reserve Bank but still DR GIDEON GONO incomprehensibly brushed this serious matter aside.
Neglect of Duty on Fidelity Printers
13.86 DR GIDEON GONO never visited Fidelity Printers and Refiners for all his tenure at the Reserve Bank of Zimbabwe since 1 December 2003 to 31 January 2012, even right through the entire crisis of 2007-2008.
13.87 As a result, DR GIDEON GONO resisted all sound advice leading to the gruelling cash crisis of 2007/2008.
13.88 Oral and written urgent pieces of advice by the writer to DR GIDEON GONO went largely ignored. Copies of these are available.
13.89 Further, DR GIDEON GONO remained aloof to the detrimental move by Minister of Finance to deny Fidelity Refiners a gold dealership licence since 2009 to date, which is leading to serious leakages of gold into the informal sector.
13.90 This act of gross negligence and detrimental indifference by DR GIDEON GONO undermines the interests of the country.
Alex Stewart Debt: Fraudulent Misrepresentation
13.91 DR GIDEON GONO misrepresented to Parliament and Cabinet and to the whole country that Alex Stewart is owed US$32 million by the Reserve Bank of Zimbabwe ostensibly for "mining sector audits".
13.92 The facts are that Alex Stewart are owed no more than US$10 million for the work they have done, especially given the payments they were receiving from the Reserve Bank of Zimbabwe, as confirmed by the Reserve Bank's external auditors.
13.93 The writer is fully aware that DR GIDEON GONO and the Executives from Alex Stewart agreed to artificially bump up the stated liability so that once Government eventually pays, the excess amount will be fraudulently shared between DR GIDEON GONO and Alex Stewart. Evidence is there.
13.94 Zimbabwe stands to lose at least US$22 million if this fraudulent anomaly is not corrected. There is no demonstrable make up of how the US$32 million became owing. The interest factor on the Alex Stewart debt more than breached the in-duplum rule many years ago and yet DR GIDEON GONO remains aloof.
13.95 This false position which is also captured in the much publicised US$1.1 Reserve Bank debt must be netted off this amount as it is non-existent. Parliament, Cabinet and the entirety of Zimbabwe are being asked by DR GIDEON GONO to introduce new laws for Government to take over the purported US$1.1 billion RBZ debt yet it is fact that this figure is loaded with non-Government debts but contaminated by those stuffed up to enable DR GONO to get paid once those false debts are eventually honoured by the State. This must be stopped by any legal means possible.
13.96 To demonstrate the writer's submissions, DR GIDEON GONO must clearly present to the Commission how the US$32 million he claims the Reserve Bank owes Alex Stewart came about, and this must be supported by a signed contract and actual deliverables by Alex Stewart to the People of Zimbabwe.
Prejudicial Misrepresentations on Shabani Mashaba Mine (SMM)
13.97 DR GIDEON GONO deliberately misled Government in the take over of SMM.
13.98 The take over of SMM by Government was principally on account of false submissions by DR GIDEON GONO on actual amounts SMM allegedly owed the State through the Reserve Bank of Zimbabwe.
13.99 During their Reserve Bank of Zimbabwe audit of 2006, Deloitte and Touché unravelled the gross violations of the in-duplum rule on SMM loans in the books of the Reserve Bank of Zimbabwe. DR GIDEON GONO exaggerated the amounts truly owed by up to 4 times the correct amounts and lumped the false positions as "interest" which in any event breached the in-duplum rule. There were heated arguments between the writer and DR GIDEON GONO, with the writer arguing that it was morally wrong and professionally unjust for DR GIDEON GONO to wilfully exaggerate and overstate what SMM truly owed the Reserve Bank solely for the purpose of misinforming Government to take over SMM. Due to inferiority of rank, the writer was violently silenced through threats.
13.100 The entire Government decision of taking over SMM, and the subsequent closure of the mine which laid off hundreds of employees was by and large caused by DR GIDEON GONO's callous act of vindictiveness and professional misrepresentations to Government. Seeking to cover up this criminal blemish, DR GIDEON GONO then later ostensibly wrote and circulated to the public an advisory note to Government presenting him in suposed "positive light" as advocating that SMM goes back to its original owners.
13.101 Such costly dishonesty must not be tolerated in public institutions. DR GIDEON GONO abused his office in the SMM takeover.
Reserve Bank Undercover Diamond Mining
13.102 The writer wishes to also report that DR GIDEON GONO unlawfully sanctioned that the Reserve Bank engage in undercover diamond mining in the Midlands area and output from such operations was never formally declared in the books of the Reserve Bank of Zimbabwe.
13.103 The writer fought endless office battles with DR GONO on this and he would subdue the writer by saying "its special National Operations".
13.104 Facts now clearly show that he was telling lies and he must tell Zimbabwe where he put the diamonds that he kept in the RBZ vaults which came from Somabula. These were locked up in a mental trunk box.
Prime Minister's 4X4 Car
13.105 The writer also wishes to report that DR GIDEON GONO used Reserve Bank money to buy Prime Minister Mr Morgan Tsvangirai a top of the range 4×4 motor vehicle at a time both DR GIDEON GONO and the Prime Minister postured that there would be no more quasi-fiscal operations of the Central Bank. Again, DR GIDEON GONO and Mr. Tsvangirai must not posture to the public. They must lead by example.
State Security Junior Officers Houses
13.106 The writer also wishes to report that DR GIDEON GONO abused his office by hand-picking junior State Security personnel and used Reserve Bank money to buy them houses.
13.107 DR GIDEON GONO would then deploy these junior officers to carry out specific duties for DR GIDEON GONO including harassment and intimidation of the writer. This is gross abuse of office and violation of the writer's intrinsic rights founded in the Constitution's declaration of rights.
ABUSE OF OFFICE ON RENAISSANCE BANK
13.108 The writer is also ready to argue and present evidence proving that DR GIDEON GONO grossly abused his office by causing the putting under curatorship of Renaissance bank when DR GIDEON GONO in his personal capacity and the Reserve Bank were in fact the causes of the liquidity problems at Renaissance Bank.
13.109 The writer further argues that DR GIDEON GONO flatly refused to listen to advice that the Curator for Renaissance Bank was extracting unjustified payments from the ailing bank he was supposed to recuperate.
13.110 Theirs was entirely an illegal activity for which they must be made to account.
Theft of US$100,000.00 belonging to the writer's Company
13.111 The writer presented to the Commission evidence and reported that on 30 July 2010, DR GIDEON GONO did and or/ caused the defrauding of Fairdrop Trading (Private) Limited trading as Rockfoundation Hospital to the tune of US$100,000.00 from its Renaissance Bank account. The writer awaits The Commission's findings on this brazen criminal activity by DR GONO under reference HC5427/12.
14. OTHER CRIMINAL ACTIVITIES
14.1 The writer also seeks the Commission to grant him leave to present evidence proving the following:
(a) That DR GIDEON GONO co-crafted, together with the Reserve Bank Board a poisonous draft law on Reserve Bank Debt Management;
(b) That DR GIDEON GONO engaged in corrupt exchanges of gifts and money with the Anti-Corruption when they were probing the activities of DR GIDEON GONO and the Reserve Bank of Zimbabwe. One of the suspects in the case has already been convicted to 4 years in prison and this suspect Joseph Banda was convicted on transactions he jointly did with DR GIDEON GONO who remains scot free.
(c) That DR GIDEON GONO engaged in fraudulent payments to Alshams at the expense of the Reserve Bank of Zimbabwe;
(d) That DR GIDEON GONO abused his office by directing that exporters surrender of foreign exchange be used to pay for his associate, Millicent Mombeshora's farm expenses with no loan being documented for such payments.
(e) That DR GIDEON GONO distorted the books of accounts of the Reserve Bank of Zimbabwe by hiding US$4 million worth of fertilizer belonging to the Reserve Bank out of the books of accounts. The fate of the US$4 million fertilizer remains a mystery.
(f) That DR GIDEON GONO sent two State Security agents to intimidate the writer.
(g) That DR GIDEON GONO deployed cash belonging to the Reserve Bank of Zimbabwe to buy Millicent Mombeshora two houses in Borrowdale; and
(h) That DR GIDEON GONO illegally seized funds from exporters. There is already a High Court Ruling to this effect.
Mr Chairman, I stand ready to fully cooperate with the Commission as you work on this report. Pasi ne Corruption!!
Yours Sincerely,
Dr Munyaradzi Kereke
Farmer
Cc: My Legal Counsel
Kereke said Gono borrowed the money using fraudulently acquired collateral. He claims Gono covered his tracks by claiming the funds he squandered had been deployed to an unnamed sensitive national institution.
The following is the full text of the letter written by Munyaradzi Kereke reporting his former boss Gideon Gono to the Anti-Corruption Commission for "multiple acts of corruption, theft and abuse of office" at the Reserve Bank of Zimbabwe.
Number 94 Norfolk Road,
Mount Pleasant,
Harare
8TH October, 2012
"without prejudice"
The Chair Person
Mr D. D. Chirindo
Zimbabwe Anti-Corruption Commission
872 Betterment Close
Mt Pleasant Business Park
Harare
Dear Mr Chairman,
Re: FORMAL REPORT OF MULTIPLE ACTS OF CURRUPTION, THEFT AND ABUSE OF OFFICE BY DR GIDEON GONO, GOVERNOR OF THE RESERVE BANK OF ZIMBABWE (RBZ)
Mr Chairman I write to submit, for the Commission's investigation, several acts of corruption, theft, and abuse of office by Dr Gideon Gono, Governor of the Reserve Bank of Zimbabwe.
This formal report follows due advice I recently received from the Parliament of Zimbabwe which determined that the criminality of matters I had raised with Parliament required your Commission to fully investigate to bring about justice.
I wish to state upfront that all these cases were fully documented and handed over long back to State Security, by the writer of this letter given the sensitivity of DR GIDEON GONO'S portfolio but State Security instead acted in direct contravention of their own mandate and tipped DR GONO who then summarily locked me out of the Reserve Bank of Zimbabwe as a way of masking these multiple crimes.
Some members of State Security are also heavily involved in the corrupt activities DR GIDEON GONO did and I stand ready to constructively work with the Commission in bringing them to account.
Undeterred by this abuse, I am taking this step to make this report, albeit at great personal risk, so that as a country we stand firm in the fight against corruption in all its forms.
The fair, balanced and professional hand of the Commission is also called upon to act objectively given that some members of the old Anti-Corruption Commission who remain part of the present team were heavily involved in corrupt activities with DR GIDEON GONO.
DR GIDEON GONO has been roundly informing the country's vital organs, particularly STATE SECURITY that I was seeking to cause fractures in the Government through exposure of STATE SECRETS.
8. This resulted in me being a pursued breathing object of elaborate operations to disable me financially, spiritually, conjugally and physically, including intrusions into my own bedroom by forces I knew neither as to their origins nor cause.
Mr Chairman, I remain fearless and unmoved, driven by my rock-solid conviction that those in positions of authority at the Reserve Bank of Zimbabwe and elsewhere in STATE SECURITY, whose tenures in office are naturally not up to infinity, will one day understand that my cause was the just quest for justice and nothing else.
Mr Chairman, I do not and will never seek to compromise any matters relating to the security of the State, but my mission is simply that of playing a modest role in the fight against the now horned creatures called corruption and abuse of office in our country. Period.
Why then must formal structures of the State be used to fight and seek to vainly destroy me when all that I stand for is nothing but justice in defence of Public Interests?
Mr Chairman, short of being killed, I shall not and I will not retreat.
13. THE CRIMINAL ACTS AND ABUSE OF OFFICE BY DR GIDEON GONO
DR GONO'S EXCESSIVE BORROWINGS
13.1 As at the end of July, 2011, DR GIDEON GONO's directly owned companies, being his New Donnington Farm and Lunar Chickens collectively owed US$40.1 million to local banking institutions. DR GIDEON GONO is the principal owner and Chairman at the said operations.
13.2 At that time, end of July, 2011, New Donnington Farm, being DR GIDEON GONO's farm owed local banks the following amounts: CBZ Bank (US$25.9 million); Premier Bank (Eco Bank) (US$358 thousand); Metropolitan Bank (US$987 thousand); Stanbic Bank (US$1.5 million); and ABC Bank (1.5 million); whilst Lunar Chickens owed Interfin Bank (US$1.85 million); Kingdom Bank (US$6.9 million) and Renaissance (Capital) Bank (US$1.2 million). There are a number of documents at hand which present proofs of these borrowings. It is important to note that even in cases where the loans would have been secured offshore say from Afreximbank of PTA Bank, it is standard banking procedure that such exposures are duly recorded on the balance sheet of the local disbursing bank for all purposes of determining the bank's credit risk and capital adequacy prudential requirements.
13.3 Whilst it is not criminal for DR GIDEON GONO or his own companies to borrow any amount from the banking sector per se, the following factors attract serious moral and criminal blame on DR GIDEON GONO on account of both abuse of office and misuse of public funds by DR GIDEON GONO:
13.3.1 DR GIDEON GONO is Governor of Zimbabwe's Central Bank. By excessively borrowing from almost every other bank, this directly undermines his independence and objectivity in firmly supervising banks in Zimbabwe. It is largely the reason why Zimbabwe recently experienced repeated bank failures due to lax supervision by the Central Bank owing to the fact that DR GIDEON GONO is highly compromised by his excessive borrowings from his regulatory subjects.
13.3.2 DR GIDEON GONO must produce the list of assets he used to serve as collateral for the US$40 million plus borrowings from banks. He must list when those assets where bought and how they were paid for. In the case such assets are held in shelf companies DR GIDEON GONO must reveal to the Commission who the directors of those companies are and how they funded those assets. This would explicitly bring about the truthful submission that DR GIDEON GONO used assets bought using Reserve Bank funds to secure his own private borrowings. DR GIDEON GONO cannot argue that his loans had no security for such a case is inadmissible by the very same Reserve Bank of Zimbabwe credit risk prudential rules on banks DR GIDEON GONO must strictly enforce in the public interest.
13.3.3 Two banks that are heavily owed money by DR GIDEON GONO virtually collapsed (Renaissance Bank and Interfin Bank) on the back of bad loans and DR GIDEON GONO as Governor of the Central Bank was a significant cause of such bad loans. The High Court recently ruled in favour of Capital Bank for the bank to attach DR GIDEON GONO's properties as execution for a long outstanding bad loan DR GIDEON GONO's Lunar Chickens project failed to pay and DR GIDEON GONO stood as surety.
13.3.4 The fact that DR GIDEON GONO as Governor of the Central Bank actively plays a part in degrading the quality of banks in the Zimbabwean economy yet he is supposed to oversee the supervision of the same banks must attract the deepest reprimand of DR GIDEON GONO by society in general. DR GIDEON GONO merits outright dismissal from office if not self-imposed resignation on account of these glaring excesses and conflict of interest. The Constitution of Zimbabwe explicitly bars anyone who fails to repay borrowed loans from holding a public office.
DR GONO'S MULTI-MILLION DOLLAR RESINDENCY
13.4 DR GIDEON GONO fraudulently took at least US$15 million in cash from the Reserve Bank of Zimbabwe between 2007 and 2008 through Mirirai Chiremba who at that time got the foreign exchange from parallel market purchases and used same to construct DR GIDEON GONO's multi-million dollar residency in Borrowdale, Lunar Road.
13.5 The Reserve Bank's books of accounts were then balanced by exaggerating amounts declared as having been extended to various Government agencies.
13.6 DR GIDEON GONO must stand ready for an in loco inspection and valuation of his property, should the Commission pleases for him to produce evidence on how he funded the construction.
Theft of US$6.5 million
13.7 It is an absolute fact that the Reserve Bank of Zimbabwe was defrauded of US$6.5 million on or around June/July 2008 and this entire amount was written off the Reserve Bank of Zimbabwe's audited income statements.
13.8 The money was advanced to a company called Saltlakes Holdings under signature of DR GIDEON GONO under a Memorandum of Deposits (MOD) programme.
13.9 DR GIDEON GONO actively facilitated this fraud through a convoluted array of write-offs well orchestrated between DR GIDEON GONO and Saltlakes Holdings.
13.10 This fraud was also under active investigation by the Zimbabwe Republic Police on or around 8th of September 2011 under reference CID Homicide Harare DR 15/07/10. DR GIDEON GONO openly refused to cooperate with the Zimbabwe Republic Police in their investigation of this fraud which has frustrated progress in this serious fraud case.
13.11 BDO Kudenga and Co auditors verified and confirmed that indeed the US$6.5 million was due to the Reserve Bank as at 31 December 2008 from Saltlakes.
US$200,000.00 CASH GIVEN TO THE FINANCIAL GAZETTE
13.12 DR GIDEON GONO abused his office by giving US$200,000.00 cash belonging to the Reserve Bank of Zimbabwe to the Financial Gazette, a company in which he is the majority shareholder. This amounts to theft of public funds. The Editor, Mr Hama Saburi and the CEO received the cash from the RBZ.
THEFT OF GOLD
13.13 DR GIDEON GONO routinely sold gold belonging to the Reserve Bank of Zimbabwe using runners and cash from such sales would be given to DR GIDEON GONO for own gain. The writer routinely cautioned DR GONO against this but to no success.
13.14 In their 2006 Audit, Deloitte and Touche picked that a total of 403.53 ounces of gold coins were missing. DR GIDEON GONO was asked about the whereabouts of these coins but responded that "The process of investigating the location of the gold coins is ongoing". Three years letter in 2009 when BDO Kudenda and Co where conducting the 2008 Audit, still the gold coins worth around US$350,794.57 at the ruling price of US$869.75 per ounce as at 31 December, 2008 were missing.
13.15 On or around 23 March 2009, DR GIDEON GONO authorised disposal of 67.84 kgs of gold belonging to the Reserve Bank of Zimbabwe. Out of the proceeds of about US$1.83 million, DR GIDEON GONO took US$200,000.00 in cash for an undisclosed purpose unrelated to the Reserve Bank of Zimbabwe. The writer once again queried this but was rudely shut out. The writer made reports to State Security but they tipped DR GONO and the matter died there.
Carslone Enterprises (Private) Limited ("Carslone Mine")
13.16 The Reserve Bank of Zimbabwe owned 100% and operated a mine called Carslone Mine in the Midlands Province.
13.17 DR GIDEON GONO acting through his subordinate Mirirai Chiremba caused the fraudulent transfer of ownership of this mine to a largely privately owned joint venture operation without the Reserve Bank of Zimbabwe Board approval.
13.18 This effectively caused the Reserve Bank of Zimbabwe to be defrauded of its gold mine on 1 April 2011. Numerous inquiries by the Parliamentary Committee on Budget and Finance on Carslone went un-responded to by DR GIDEON GONO, further undermining the purity of this transaction.
13.19 This transaction breached basic corporate governance requirements for a Central Bank, as well as being utterly fraudulent.
13.20 The writer openly reported this matter to all Board Members of the RBZ but they roundly ignored the matter after getting huge sums of money as allowances from DR GIDEON GONO.
13.21 The writer fought a lone battle, leading to repeated open abuses by the Board for the writer's stance against the corruption that was taking place. The writer has on hand explicit Memos of abuse from RBZ Board Members.
FRAUDULENT Saudi Arabia Gold Deal
13.22 On 12 May 2006, the Reserve Bank of Zimbabwe entered into a very corrupt, detrimental contract, under the blessings of DR GIDEON GONO where Zimbabwe's purified fine gold from the Reserve Bank of Zimbabwe was being sold to a private jewellery company in Saudi Arabia called Suliman Al Othaim Jewellery at an incomprehensible discount of 34% at a time Zimbabwe itself was on its knees short of foreign currency.
13.23 Gold worth US$5 million was shipped under this very weird, fraudulent and reckless contract that was highly prejudicial to Zimbabwe.
13.24 The corruption around this transaction is further amplified by the fact that on occasions, DR GIDEON GONO would send Millicent Mombeshora to fly to Saudi Arabia to the jewellery shop which was receiving this mysteriously discounted gold.
13.25 The world over, no country, let alone that in dire need of foreign currency would sell pure fine gold at a discount of 34% when gold itself is just as good as cash. Doing so is nothing short of treasonous behaviour by a Central Bank Governor rampaging on national reserves he is supposed to safeguard.
13.26 No matter what technical jargon DR GIDEON GONO may seek to field as justification for the strange 34% discount on fine gold bullion, the actions by DR GIDEON GONO clearly betrayed the trust bestowed on him by the country for him to jealously safeguard the country's foreign exchange and gold reserves.
13.27 DR GIDEON GONO presided over this criminal transaction which he secretly handled personally with Millicent Mombeshora. He reacted very violently when the writer unearthed it and confronted him.
13.28 The writer having discovered this anomaly swiftly wrote a detailed report and handed it to STATE SECURITY but once again, they tipped DR GONO who then poured tirades of abusive words to me in front of all RBZ Board Members taunting that "Kereke don't waste time reporting me to State Security. I saved this country from collapse so they cant do anything to me".
13.29 In their detailed Management Report for the 2006 31st December Audit, Deloitte and Touche auditors picked this 34% discount anomaly but nothing was done.
13.30 The Commission must unravel this unbridled act of fraud against every Zimbabwean and bring DR GONO to justice. STATE SECURITY must also explain why they tipped DR GONO and did nothing when the writer reported the matters to them.
Theft of Reserve Bank of Zimbabwe Stock Exchange Listed Shares
13.31 The Reserve Bank of Zimbabwe used to routinely buy shares from the Zimbabwe Stock Exchange as part of its investment programme between 2004 and 2008.
13.32 On 27 January 2006, DR GIDEON GONO acting through Millicent Mombeshora, through whom the bulk of the shares DR GIDEON GONO would buy the shares, regardless of the curious fact that she was not in the Finance Division, caused the fraudulent and irregular release of 67,322,636 (worth around US$7 million then at around 10cent per share) Dairibord and 31,187,000 (worth around US$6 million then at around 20cents per share) Cottco signed blank share transfers and share certificates belonging to the Reserve Bank of Zimbabwe to Millicent Mombeshora's individual person.
13.33 No where in the history of Central Banks in the world would one ever get a case where shares worth millions of US$ belonging to the Central Bank are released to an individual on blank signed transfer forms and those shares never recorded in the Central Bank's asset register or share certificate register. This act alone clearly shows beyond any reasonable doubt the fraudulent intent by DR GIDEON GONO and Millicent Mombeshora on these stolen shares.
13.34 These share certificates vanished completely from both the Reserve Bank share register and books of accounts for 2006, 2007, 2008 and both DR GIDEON GONO and Millicent Mombeshora refused to disclose where they had put the shares. These shares were never recovered.
13.35 In 2009, the writer, acting together with Auditors and the Finance division worked tirelessly to intercept and secure replacement share certificates.
13.36 DR GIDEON GONO's criminal blameworthiness as Governor of the Central Bank is deepened by the fact that he adamantly approved that these shares be taken out of the books of the Reserve Bank of Zimbabwe and all efforts by auditors to have the matter unravelled were fruitless.
13.37 Former Reserve Bank of Zimbabwe Division Chief of the Finance Division Mr Hillary Munyati resigned in the midst of the share theft scandal and the writer actively worked with Mr Munyati and Mr Masoso who took over from Mr Munyati to frustrate the theft by DR GIDEON GONO and Millicent Mombeshora.
13.38 Between 2007 and 2008 DR GIDEON GONO, again acting with Millicent Mombeshora and via Remo Stock Brokers externalised at least US$10 million worth of shares belonging to the Reserve Bank of Zimbabwe to the London Stock exchange, and shares worth around US$3 million were given to Remo for their own account ostensibly to pay off commissions and an unclear loan, whilst the balance imported fuel which went into a special fuel fund for the 2008 Harmonised Elections. The full US$10 million worth of fuel was never accounted for, as DR GIDEON GONO and Millicent Mombeshora exclusively kept the fuel coupons between themselves. The total value of funds generated from the share disposal in London was never fully reconciled.
13.39 DR GIDEON GONO's criminal nature was typically subsumed and kept hidden under his tendency of blending genuine Government programmes with other personal operations. When Auditors dared to ask DR GIDEON GONO for answers he would routinely gross everything under "national programmes" such as the 2008 Elections. The issue of abuse of share proceeds is a typical case in point.
13.40 DR GIDEON GONO should fully reconcile where the shares which the Reserve Bank of Zimbabwe held between 1 December 2003 and 31 December 2010 have all gone to. The Schedule of Discovered documents gives the shareholdings during the second quarter of 2009 which DR GIDEON GONO must also fully account for.
13.41 The writer had endless fights with DR GIDEON GONO as the writer insisted that such practices were unlawful and posed great risk to the Bank and country but all this advice fell on deaf ears as DR GIDEON GONO repeatedly exuded remarkable gestures of invincibility, saying that no one would ask him.
Gross Irregularities, Fraud and Abuse of Office on Farm Equipment
13.42 DR GIDEON GONO abused his position to award himself excessive quantities of farm equipment, taking at least 2 mega Combine Harvesters, 12 Tractors, 4 seed drills, 4 planters, and 4 boom sprayers and imported expensive grain silos from South Africa using exporters surrender funds. Please take note that the writer never got anything, not even a wheelbarrow from this programme.
13.43 What DR GONO did is absolutely unacceptable behaviour of a Central Bank Governor, which is not only abusive but criminal. It was, therefore, the height of intellectual dishonesty for DR GIDEON GONO to brazenly sue the writer for damages when the writer was simply making a genuine clarion call for DR GIDEON GONO to exercise utmost restraint in safeguarding public funds against the background of his excesses.
13.44 At one point, such abuse by DR GIDEON GONO was detected by State Security and was well documented as proved in the Memorandum which the writer can produce but STATE SECURITY looked the other way and did nothing to bring DR GONO to account.
Payments for Equipment Not Delivered
13.45 DR GIDEON GONO, under his direct signature authorised for payment of very substantial amounts of money ostensibly for the purchase of tractors, motor vehicles and generators which were never delivered to the Reserve Bank of Zimbabwe.
13.46 Forensic audits are in order in the public interest to check the possibility of fraudulent collusion between DR GIDEON GONO and the companies that received hefty sums of money under signature of DR GIDEON GONO but never delivered the products to the Reserve Bank of Zimbabwe.
13.47 Efforts by External Auditors to have DR GIDEON GONO correct this anomaly were summarily dismissed by promises that management was going to look into it. This, however never happened.
13.48 The writer had well documented office battles with DR GONO over these glaring anomalies.
13.49 The overall effect of DR GONO'S very suspicious payments for no deliveries is that the Public has been defrauded of millions of its money.
13.51 The other very disturbing irregularity is that the bulk of these assets fully paid for but never received by the Reserve Bank of Zimbabwe are not reflected in the books of accounts of the Central Bank.
13.52 This raises a more fundamental question of how the audited accounts of the Reserve Bank of Zimbabwe, particularly for 2006, 2007, 2008 and 2009 were signed off when they omitted the glaring anomalies the Auditors themselves had picked.
13.53 The prominent reason for this is that external auditors of the Reserve Bank are themselves compromised in that they get direct payment of fees from the Reserve Bank itself and such fees are negotiated and agreed upon with the Reserve Bank. It can not be ruled out that the External Auditors tend to look the other way on areas where they pick anomalies to avoid financial sanction.
Motor Vehicles and Generators
13.54 On 27 September, 2007, DR GIDEON GONO directed the Reserve Bank of Zimbabwe's procurement Division to acquire for him 10, 4×4 Prado vehicles which he later took delivery of for his own undisclosed personal use. This same practice was the norm in later years and months.
13.55 Also DR GIDEON GONO fraudulently signed an acknowledgement of debt on 3 March, 2009, with Trade Access (Pvt) Limited, Oasis Motors for US$5.2 million ostensibly for vehicles and generators allegedly delivered to the Reserve Bank. The signing by DR GIDEON GONO had the effect of obliging that such debts be paid by the Reserve Bank of Zimbabwe yet not all cars and generators were supplied whilst some of the cars actually went to destinations that were neither the Reserve Bank nor legitimate Government beneficiaries. The effect was, therefore, to defraud the Reserve Bank and hence the Public.
13.56 The writer again repeatedly pointed out these issues but was flatly quelled into silence through repeated threats.
Fraudulent Allowances Claims
13.57 On 18 December, 2006, DR GIDEON GONO fraudulently claimed and got paid Z$1,320,000,000 for alleged use of own house when in fact DR GIDEON GONO was issued with a Bank House, being number 15 York Road Mandara, which DR GIDEON GONO does in fact use.
13.58 DR GIDEON GONO approved this fraudulent claim for himself before directing that the then Division Chief, Finance Mr Hillary Munyati issue a cheque dated 18 December, 2006 paying DR GIDEON GONO in time for Christmas. The payment, which was done together with other claims was done under Reserve Bank of Zimbabwe cheque number 091038110102022363701.
13.59 The writer's efforts to block this were futile as he was bull-dozed to stand aside.
Abuse of Reserve Bank Funds for Afritrade's ZIMRA VAT Obligations
13.60 On or around 1 July, 2009, DR GIDEON GONO, together with Millicent Mombeshora defrauded the Reserve Bank of Zimbabwe of US$3.7 million, a matter which was also picked up by ZIMRA, by causing the Reserve Bank of Zimbabwe to take on ZIMRA VAT obligations that belonged entirely to a private company called Afritrade International.
13.61 DR GIDEON GONO, acting through Millicent Mombeshora acknowledged to ZIMRA that the Reserve Bank was going to take over Afritrade debts to ZIMRA ostensibly because Afritrade was dealing with the Reserve Bank of Zimbabwe on importation of basic commodities. This was, however, not true as ZIMRA had made a determination that the Tax liability had nothing to do with Reserve Bank programmes.
13.62 DR GIDEON GONO's actions are curious in that the Reserve Bank's basic commodities importation programme (BACOSSI) was exempt from paying VAT, yet DR GIDEON GONO was happy to accept the US$3.7 million liability for Afritrade International, which was at that time supplying non Reserve Bank buyers, including Millicent Mombeshora's West Gate Spar shop on account of which ZIMRA had raised the VAT bill.
Serious Prejudice to the Country on Fertilizer/Grain Importation by Intshona Agricultural Products (Pty) Ltd
13.63 DR GIDEON GONO, working with Millicent Mombeshora unilaterally appointed a company called Intshona to supply fertilizer into Zimbabwe during the 3rd quarter of 2007 under multi-million dollar contracts.
13.64 Intshona was subsequently paid around US$6 million via a letter of credit from the PTA Bank on behalf of the Reserve Bank of Zimbabwe under a US$20 million PTA Bank letter of credit.
13.65 Upon failure to supply the fertilizer, Intshona, under concurrence of DR GIDEON GONO, tactfully switched and undertook to deliver maize. After a full year, in 2008, no grain ever came into Zimbabwe from this company under the payment that had long been done. Zimbabwe lost value, no doubt.
13.66 On 2 June, 2008 Intshona presented yet another colourful proposal, with the concurrence of DR GIDEON GONO to supply fertilizers under a fresh US$5 million letter of credit for the 2008/09 agricultural season. The company once again let the country down with serious under-delivery.
13.67 Over and above this abuse, contrary to the explicit covenants in the various fertilizer supply contracts which stipulated a 90-day credit supply cycle, Intshona was invariably being allowed by DR GIDEON GONO to directly claim from Nedbank, South Africa, for upfront cash payments before delivery. The overall effect of this extractive affair with Intshona was to not only deprive the country of valuable financial resources but to frustrate the country's food security programmes through inordinate delays and shortages of agro-inputs.
13.68 The writer wrote several memoranda of protestation to DR GIDEON GONO to highlight the problems that were being caused by this relationship but all advice fell on deaf ears. The writer stands ready to produce these protracted Memos which were flatly ignored by DR GONO as he rode high the bubble of invincibility at that time.
Missing Funds at Rand Merchant Bank
13.69 During the 2008 external audit, BDO Kudenga and Co unravelled a total of US$3.1 million that was not accounted for at the Reserve Bank's Rand Merchant Bank account.
13.70 DR GIDEON GONO, working closely with Millicent Mombeshora allowed Millicent Mombeshora to be the singular transactor on the Rand Merchant Bank Reserve Bank account which exposed the Central Bank to risks of theft, leading to the missing funds. Millicent Mombeshora was also allowed to singularly move millions of gold bullion without Board approval as part of the illicit commodity deals.
13.71 DR GIDEON GONO remained indifferent and aloof to suggestions and advice for a full forensic investigation on the missing funds at Rand Merchant Bank. All transactions on this account were being carried out exclusively by Millicent Mombeshora, working with DR GIDEON GONO.
Fraudulent Travel Claims by DR GIDEON GONO
13.72 In the December 2009 external audit, KPMG Auditors unravelled fraud perpetrated directly by DR GIDEON GONO through unsubstantiated travel claims which he personally authorised for himself.
13.73 The total amount which was not accounted for was US$741,649.02 and it was all paid out on instructions by DR GIDEON GONO's personal assistant Denise Naicker to lower level staff to simply pay, without any details on what was being paid for. The explicit proofs of this are there.
Treasonous Breaches
13.74 DR GIDEON GONO who is recipient number 88 of all Cabinet proceedings, notwithstanding that he is not a Cabinet Minister of Government, routinely circulated such sacred Cabinet minutes to embassies of hostile countries. Proofs exist on this.
The US$1.5 million Prejudice to the Reserve Bank by Prime Minister Mr Morgan Tsvangirai and DR GIDEON GONO
13.75 On 11 November, 2009, DR GIDEON GONO casually wrote on a scrap piece of paper an instruction to a lower level Reserve Bank Staff member to hurriedly make a transfer from the Reserve Bank of Zimbabwe US$1.5 million into an account at ZB Bank called TWRE Zim (Pvt) Limited, account number 4112-049163-200.
13.76 This amount was duly transferred from the Reserve Bank of Zimbabwe on 13 November, 2009 and after the Reserve Bank lost control over this money, the funds were later abused by the Prime Minister and his cousin, Hebson Makuvise. As of today, the Reserve Bank of Zimbabwe has not recovered its money.
13.77 DR GIDEON GONO frantically refused to cooperate with the Zimbabwe Republic Police who were and are still investigating this serious fraud under reference number CID HQ ER 31/11.
13.78 The actions by DR GIDEON GONO were seriously prejudicial to the public good, as much as they were criminal.
13.79 The writer wishes to explicitly state that he was verbally abused and ultimately fired from the Reserve Bank of Zimbabwe due to strong differences on this fraud case. The writer's view was that the Reserve Bank was simply supposed to be factual and had to cooperate with the Police investigations, whilst DR GIDEON GONO's view was that we had to cook up records to protect the Prime Minister. It is the writer's respectful submission that the laws against corruption, and all laws in the Land for that matter, must be blind to people's stations in Government or social circles. DR GONO and the Prime Minister must lead by example and be accountable.
Misrepresentations on Zimbabwe's IMF Status
13.80 DR GIDEON GONO grossly abrogated on his duties as Reserve Bank Governor by not attentively advising Government on the true status of Zimbabwe on the IMF.
13.81 When Zimbabwe was allocated its Special Drawing Rights (SDR) in the equivalence of around US$520 million in 2009, the IMF deducted SDR66,402,156 and stashed them in an escrow account, which amount is in fact equivalent to Zimbabwe's total arrears with the IMF of around US$140 million. Technically, therefore, Zimbabwe did clear its arrears with the IMF but due to collusion of unexplainable indifference between DR GIDEON GONO and the Minister of Finance Mr Tendai Biti, the country remains under sanction by the IMF on account of the arrears which in essence have been cleared.
13.82 It is not clear why DR GIDEON GONO and the Minister of Finance are folding their hands watching Zimbabwe remaining under sanctions yet it has technically cleared its arrears given that all the SDRs Zimbabwe got belong to Zimbabwe and they were issued for the specific purpose of dealing with global cash flow setbacks.
13.83 Further DR GIDEON GONO watched as gross irregularities unfolded in respect of US$150 million which was withdrawn by the Minister of Finance from the SDR account held in the books of the Reserve Bank of Zimbabwe.
13.84 The matter, which is under active investigation by the Zimbabwe Republic Police is being frustrated by DR GIDEON GONO's refusal to cooperate with the Zimbabwe Republic Police and in anger asked the writer to be the one responding to the Zimbabwe Republic Police. There were heated arguments between DR GIDEON GONO and the writer as yet again DR GIDEON GONO's view was that records be cooked up to protect Minister of Finance from the Police prob. The writer's view was simply that facts be presented as facts without any other subjective motives and without any malice on anyone. The matter is under investigation by the Zimbabwe Republic Police under reference CID HQ ER 03/2011.
13.85 During their audit of the Reserve Bank of Zimbabwe for 2009, BDO Kudenga and Co picked the irregularities on the IMF account in the books of the Reserve Bank but still DR GIDEON GONO incomprehensibly brushed this serious matter aside.
Neglect of Duty on Fidelity Printers
13.86 DR GIDEON GONO never visited Fidelity Printers and Refiners for all his tenure at the Reserve Bank of Zimbabwe since 1 December 2003 to 31 January 2012, even right through the entire crisis of 2007-2008.
13.87 As a result, DR GIDEON GONO resisted all sound advice leading to the gruelling cash crisis of 2007/2008.
13.88 Oral and written urgent pieces of advice by the writer to DR GIDEON GONO went largely ignored. Copies of these are available.
13.89 Further, DR GIDEON GONO remained aloof to the detrimental move by Minister of Finance to deny Fidelity Refiners a gold dealership licence since 2009 to date, which is leading to serious leakages of gold into the informal sector.
13.90 This act of gross negligence and detrimental indifference by DR GIDEON GONO undermines the interests of the country.
Alex Stewart Debt: Fraudulent Misrepresentation
13.91 DR GIDEON GONO misrepresented to Parliament and Cabinet and to the whole country that Alex Stewart is owed US$32 million by the Reserve Bank of Zimbabwe ostensibly for "mining sector audits".
13.92 The facts are that Alex Stewart are owed no more than US$10 million for the work they have done, especially given the payments they were receiving from the Reserve Bank of Zimbabwe, as confirmed by the Reserve Bank's external auditors.
13.93 The writer is fully aware that DR GIDEON GONO and the Executives from Alex Stewart agreed to artificially bump up the stated liability so that once Government eventually pays, the excess amount will be fraudulently shared between DR GIDEON GONO and Alex Stewart. Evidence is there.
13.94 Zimbabwe stands to lose at least US$22 million if this fraudulent anomaly is not corrected. There is no demonstrable make up of how the US$32 million became owing. The interest factor on the Alex Stewart debt more than breached the in-duplum rule many years ago and yet DR GIDEON GONO remains aloof.
13.95 This false position which is also captured in the much publicised US$1.1 Reserve Bank debt must be netted off this amount as it is non-existent. Parliament, Cabinet and the entirety of Zimbabwe are being asked by DR GIDEON GONO to introduce new laws for Government to take over the purported US$1.1 billion RBZ debt yet it is fact that this figure is loaded with non-Government debts but contaminated by those stuffed up to enable DR GONO to get paid once those false debts are eventually honoured by the State. This must be stopped by any legal means possible.
13.96 To demonstrate the writer's submissions, DR GIDEON GONO must clearly present to the Commission how the US$32 million he claims the Reserve Bank owes Alex Stewart came about, and this must be supported by a signed contract and actual deliverables by Alex Stewart to the People of Zimbabwe.
Prejudicial Misrepresentations on Shabani Mashaba Mine (SMM)
13.97 DR GIDEON GONO deliberately misled Government in the take over of SMM.
13.98 The take over of SMM by Government was principally on account of false submissions by DR GIDEON GONO on actual amounts SMM allegedly owed the State through the Reserve Bank of Zimbabwe.
13.99 During their Reserve Bank of Zimbabwe audit of 2006, Deloitte and Touché unravelled the gross violations of the in-duplum rule on SMM loans in the books of the Reserve Bank of Zimbabwe. DR GIDEON GONO exaggerated the amounts truly owed by up to 4 times the correct amounts and lumped the false positions as "interest" which in any event breached the in-duplum rule. There were heated arguments between the writer and DR GIDEON GONO, with the writer arguing that it was morally wrong and professionally unjust for DR GIDEON GONO to wilfully exaggerate and overstate what SMM truly owed the Reserve Bank solely for the purpose of misinforming Government to take over SMM. Due to inferiority of rank, the writer was violently silenced through threats.
13.100 The entire Government decision of taking over SMM, and the subsequent closure of the mine which laid off hundreds of employees was by and large caused by DR GIDEON GONO's callous act of vindictiveness and professional misrepresentations to Government. Seeking to cover up this criminal blemish, DR GIDEON GONO then later ostensibly wrote and circulated to the public an advisory note to Government presenting him in suposed "positive light" as advocating that SMM goes back to its original owners.
13.101 Such costly dishonesty must not be tolerated in public institutions. DR GIDEON GONO abused his office in the SMM takeover.
Reserve Bank Undercover Diamond Mining
13.102 The writer wishes to also report that DR GIDEON GONO unlawfully sanctioned that the Reserve Bank engage in undercover diamond mining in the Midlands area and output from such operations was never formally declared in the books of the Reserve Bank of Zimbabwe.
13.103 The writer fought endless office battles with DR GONO on this and he would subdue the writer by saying "its special National Operations".
13.104 Facts now clearly show that he was telling lies and he must tell Zimbabwe where he put the diamonds that he kept in the RBZ vaults which came from Somabula. These were locked up in a mental trunk box.
Prime Minister's 4X4 Car
13.105 The writer also wishes to report that DR GIDEON GONO used Reserve Bank money to buy Prime Minister Mr Morgan Tsvangirai a top of the range 4×4 motor vehicle at a time both DR GIDEON GONO and the Prime Minister postured that there would be no more quasi-fiscal operations of the Central Bank. Again, DR GIDEON GONO and Mr. Tsvangirai must not posture to the public. They must lead by example.
State Security Junior Officers Houses
13.106 The writer also wishes to report that DR GIDEON GONO abused his office by hand-picking junior State Security personnel and used Reserve Bank money to buy them houses.
13.107 DR GIDEON GONO would then deploy these junior officers to carry out specific duties for DR GIDEON GONO including harassment and intimidation of the writer. This is gross abuse of office and violation of the writer's intrinsic rights founded in the Constitution's declaration of rights.
ABUSE OF OFFICE ON RENAISSANCE BANK
13.108 The writer is also ready to argue and present evidence proving that DR GIDEON GONO grossly abused his office by causing the putting under curatorship of Renaissance bank when DR GIDEON GONO in his personal capacity and the Reserve Bank were in fact the causes of the liquidity problems at Renaissance Bank.
13.109 The writer further argues that DR GIDEON GONO flatly refused to listen to advice that the Curator for Renaissance Bank was extracting unjustified payments from the ailing bank he was supposed to recuperate.
13.110 Theirs was entirely an illegal activity for which they must be made to account.
Theft of US$100,000.00 belonging to the writer's Company
13.111 The writer presented to the Commission evidence and reported that on 30 July 2010, DR GIDEON GONO did and or/ caused the defrauding of Fairdrop Trading (Private) Limited trading as Rockfoundation Hospital to the tune of US$100,000.00 from its Renaissance Bank account. The writer awaits The Commission's findings on this brazen criminal activity by DR GONO under reference HC5427/12.
14. OTHER CRIMINAL ACTIVITIES
14.1 The writer also seeks the Commission to grant him leave to present evidence proving the following:
(a) That DR GIDEON GONO co-crafted, together with the Reserve Bank Board a poisonous draft law on Reserve Bank Debt Management;
(b) That DR GIDEON GONO engaged in corrupt exchanges of gifts and money with the Anti-Corruption when they were probing the activities of DR GIDEON GONO and the Reserve Bank of Zimbabwe. One of the suspects in the case has already been convicted to 4 years in prison and this suspect Joseph Banda was convicted on transactions he jointly did with DR GIDEON GONO who remains scot free.
(c) That DR GIDEON GONO engaged in fraudulent payments to Alshams at the expense of the Reserve Bank of Zimbabwe;
(d) That DR GIDEON GONO abused his office by directing that exporters surrender of foreign exchange be used to pay for his associate, Millicent Mombeshora's farm expenses with no loan being documented for such payments.
(e) That DR GIDEON GONO distorted the books of accounts of the Reserve Bank of Zimbabwe by hiding US$4 million worth of fertilizer belonging to the Reserve Bank out of the books of accounts. The fate of the US$4 million fertilizer remains a mystery.
(f) That DR GIDEON GONO sent two State Security agents to intimidate the writer.
(g) That DR GIDEON GONO deployed cash belonging to the Reserve Bank of Zimbabwe to buy Millicent Mombeshora two houses in Borrowdale; and
(h) That DR GIDEON GONO illegally seized funds from exporters. There is already a High Court Ruling to this effect.
Mr Chairman, I stand ready to fully cooperate with the Commission as you work on this report. Pasi ne Corruption!!
Yours Sincerely,
Dr Munyaradzi Kereke
Farmer
Cc: My Legal Counsel
Source - online
