Zim: Central Bank raids foreign accounts

  1. Posted on Thursday 9 April 2009 - 10:40
    bruce
    Bruce Sibanda, AfricaNews reporter in Harare, Zimbabwe Photo: Francis Ncube
    The Reserve Bank of Zimbabwe has openly admitted that it raided Foreign Currency accounts for companies and individuals. It said it will repay some of the funds that it took from Foreign Currency Accounts belonging to some exporters about two years ago.
    Whither to Zimbabwe? Photo by Francis Ncube.jpg
    RBZ deputy governor, Mashiringwani is quoted by the sate controlled Herald that the money that was taken from the FCAs was accruing interest. "We urge those that were affected to approach their respective banks because they have received communication from us," he said.

    He was responding to questions raised by some operators in the tourism sector who were affected when the RBZ took money from their accounts. The issue has been a contentious one especially for most exporters, who felt that they were not consulted when the money was taken.

    A huge chuck of the money was allegedly used to fund ZANU PF violent campaigns during last years internationally discredited elections. But RBZ boss Dr Gono said that some of their funds had been used to procure agricultural machinery.

    On Wednesday, Parliament debated the alleged unauthorized use of Africa University foreign currency by the Reserve Bank resulting in the stalling of projects at the campus.
    Informational at hand indicate that RBZ abused the funds that were deposited in the Mutare-based university’s foreign currency account (FCA).

    Finance Minister Tendai Biti, a critic of the central bank governor, is expected to give an explanation of what happened to the AU funds. The alleged raiding of FCAs by the central bank is nothing new. The Global Fund for the Fight against HIV and Aids, Tuberculosis and Malaria last year initially declined to allocate further funds to Zimbabwe after the central bank allegedly misappropriated money the World Health Organization had deposited with it.

    The Global Fund demanded that Zimbabwe return US$7,3 million it had misused.

    The missing US$7,3 million was part of the US$12,3 million that was allocated to Zimbabwe last year for distribution of drugs. The debate in parliament on the missing AU foreign currency came at a time when there are growing concerns about alleged abuse of state funds by the central bank.

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