News / National
Mliswa says he will repay RBZ debt in Zimdollars
02 Apr 2014 at 13:05hrs | Views
Under fire Zanu-PF Mashonaland West provincial chairperson-cum-businessman, Temba Mliswa, who reportedly owes the Reserve Bank of Zimbabwe (RBZ) $12,5 million, wants to repay the debt using the country's demonetised currency.
Mliswa disputed the amount he owed the central bank and argued that the debt was about $5,8m.
"We owe the RBZ as well as the Commercial Bank of Zimbabwe (CBZ) substantial amounts. I am not sure about the CBZ debt, but I am sure we owe the RBZ about $5,8m," Mliswa said.
The ex-Warriors fitness trainer said he would invoke a clause in the agreement with RBZ that allows his tobacco merchant company, Salt Lakes, to pay back the debt in Zimbabwe dollars.
"We did not get $12,5m and in the agreement there is a clause with regards the RBZ loan that we can pay it back in Zimbabwe dollars and that is what we are going to do. We will invoke that clause," Mliswa told journalists at a press briefing yesterday.
The deal between Mliswa and RBZ also forms part of the legal row between former central bank governor Gideon Gono and his former advisor, Munyaradzi Kereke, in which the Bikita West legislator wants his former boss prosecuted for graft and abuse of authority during his time as the apex bank chief.
"That debt was never written off and we are going to pay," was Mliswa's reply when quizzed.
In documents which forms part of court papers deposited by Kereke, a copy of which The Zimbabwe Mail has in its possession, Gono wrote a letter to Premier Bank head of exchange control department, a B Mukorombindo, revealing that the RBZ had agreed to a request from Salt Lakes to raise the $12,5m facility.
"We refer to your application dated July 8 2008 on the above subject and advise that Exchange Control is agreeable to increase Salt Lakes Holdings' memorandum of deposit (MOD) limit by an additional $7,5m.
"This effectively means Salt Lakes MOD limit for the 2008 tobacco marketing season is now $12,5m, including the $5m granted through CBZ bank," court papers in the Gono-Kereke legal fight read.
The agreement added that, of the $7,5m approved through Premier Bank, the following conditions would apply: "Premier Bank would enter into an agreement with the Reserve Bank for the recovery and transfer to the Reserve Bank of the $7,5m from Salt Lakes' export proceeds in addition to Salt Lakes meeting the normal open market disposal requirements. Premier Bank would enter into an agreement with Salt Lakes in line with their lending criteria."
While Mliswa contented that he would use a clause in the agreement to pay-back the loan in local currency that has not been in use since 2009, part of the agreement reads: "Salt Lakes would issue draw down request on a need basis, whereupon the Reserve Bank would disburse the Zimbabwe dollar equivalent into Salt Lakes' special Zimbabwe dollar tobacco account held with Premier Bank.
"Salt Lakes would use the Zimbabwe dollar proceeds for the sole purpose of purchasing green leaf tobacco. The Reserve Bank would recover the Zimbabwe dollar advance plus market-determined interest rates in the event that Salt Lakes fails to export the tobacco purchased."
In February 2009, Mliswa wrote to RBZ senior exchange control division chief identified as Mpofu acknowledging the debt, but the letter does not say how much his company owed.
"We acknowledge our indebtedness to the RBZ and the fact that we have not been able to meet our December 31 2008 payment deadline. We are, however, unable to commit to a specific payment date following the challenges we previously highlighted," Mliswa wrote on February 4 2009.
Mliswa yesterday denied his debt with RBZ had been written off, but court papers indicated a move to pardon the facility.
Salt Lakes, according to documents in our possession, purchased tobacco to the tune of $6,5m using the MOD facility, and in advice given to Gono by technocrats in the exchange control department.
"…rewinding the facility would mean RBZ would lose $6,5m while Salt Lakes would benefit to the same magnitude from the local sale of the tobacco in foreign currency which is more or less the same as ordinary export in terms of foreign exchange generation…
"Exchange Control recommends that the rewinding of the facility be on the proportion of the funds not recoverable from the sale of the tobacco using the advanced Zimbabwe dollars."
Audio clip of Temba Mliswa's press conference 1
#t=333
Mliswa disputed the amount he owed the central bank and argued that the debt was about $5,8m.
"We owe the RBZ as well as the Commercial Bank of Zimbabwe (CBZ) substantial amounts. I am not sure about the CBZ debt, but I am sure we owe the RBZ about $5,8m," Mliswa said.
The ex-Warriors fitness trainer said he would invoke a clause in the agreement with RBZ that allows his tobacco merchant company, Salt Lakes, to pay back the debt in Zimbabwe dollars.
"We did not get $12,5m and in the agreement there is a clause with regards the RBZ loan that we can pay it back in Zimbabwe dollars and that is what we are going to do. We will invoke that clause," Mliswa told journalists at a press briefing yesterday.
The deal between Mliswa and RBZ also forms part of the legal row between former central bank governor Gideon Gono and his former advisor, Munyaradzi Kereke, in which the Bikita West legislator wants his former boss prosecuted for graft and abuse of authority during his time as the apex bank chief.
"That debt was never written off and we are going to pay," was Mliswa's reply when quizzed.
In documents which forms part of court papers deposited by Kereke, a copy of which The Zimbabwe Mail has in its possession, Gono wrote a letter to Premier Bank head of exchange control department, a B Mukorombindo, revealing that the RBZ had agreed to a request from Salt Lakes to raise the $12,5m facility.
"We refer to your application dated July 8 2008 on the above subject and advise that Exchange Control is agreeable to increase Salt Lakes Holdings' memorandum of deposit (MOD) limit by an additional $7,5m.
"This effectively means Salt Lakes MOD limit for the 2008 tobacco marketing season is now $12,5m, including the $5m granted through CBZ bank," court papers in the Gono-Kereke legal fight read.
While Mliswa contented that he would use a clause in the agreement to pay-back the loan in local currency that has not been in use since 2009, part of the agreement reads: "Salt Lakes would issue draw down request on a need basis, whereupon the Reserve Bank would disburse the Zimbabwe dollar equivalent into Salt Lakes' special Zimbabwe dollar tobacco account held with Premier Bank.
"Salt Lakes would use the Zimbabwe dollar proceeds for the sole purpose of purchasing green leaf tobacco. The Reserve Bank would recover the Zimbabwe dollar advance plus market-determined interest rates in the event that Salt Lakes fails to export the tobacco purchased."
In February 2009, Mliswa wrote to RBZ senior exchange control division chief identified as Mpofu acknowledging the debt, but the letter does not say how much his company owed.
"We acknowledge our indebtedness to the RBZ and the fact that we have not been able to meet our December 31 2008 payment deadline. We are, however, unable to commit to a specific payment date following the challenges we previously highlighted," Mliswa wrote on February 4 2009.
Mliswa yesterday denied his debt with RBZ had been written off, but court papers indicated a move to pardon the facility.
Salt Lakes, according to documents in our possession, purchased tobacco to the tune of $6,5m using the MOD facility, and in advice given to Gono by technocrats in the exchange control department.
"…rewinding the facility would mean RBZ would lose $6,5m while Salt Lakes would benefit to the same magnitude from the local sale of the tobacco in foreign currency which is more or less the same as ordinary export in terms of foreign exchange generation…
"Exchange Control recommends that the rewinding of the facility be on the proportion of the funds not recoverable from the sale of the tobacco using the advanced Zimbabwe dollars."
Audio clip of Temba Mliswa's press conference 1
#t=333
Source - Zim Mail
