Gono backs Mangudya

Gideon Gono former Reserve Bank of Zimbabwe (RBZ) governor has backed John Mangudya in the fight against illicit financial flows saying his successor was "acting wisely".

Last week, Mangudya introduced a raft of measures to plug leakages amid revelations that nearly $2 billion was spirited out of the country by individuals and corporates.

The measures entail suspension of the free funds concept, putting restrictions on offshore investments and withdrawals above $10 000 now required at least one-day notice to the bank.

He said $1,2 billion was externalized by companies in the form of export proceeds, high management and expert fees. During his tenure at the apex bank, Gono complained of externalization by individuals and corporates, but got the flak from critics who accused him of trying to settle personal scores.

But yesterday, Gono played down suggestions that he has been vindicated, adding that "each governor deals with challenges that confront him or her at that particular time in his/her discharge of a given mandate".