GOVERNMENT’S Farm Mechanisation Programme undertaken
between 2007 and 2008 was not a loan scheme and beneficiaries were not required
to pay for the equipment they received, former Reserve Bank of Zimbabwe (RBZ)
Governor Dr Gideon Gono has said.
Responding to claims made by opposition activist Dr Alex
Magaisa yesterday, which alleged that millions of dollars in public funds were
looted by beneficiaries of the programme who refused to pay for the equipment
they received through the central bank, Dr Gono said the programme was
undertaken in accordance with the law.
The RBZ introduced the programme to capacitate
newly-resettled farmers through mechanisation.
In a statement last night, Dr Gono refuted allegations
raised by Dr Magaisa, saying there was no impropriety on the part of the RBZ
and the beneficiaries.
“My statement comes in the wake of Dr Magaisa’s
allegations, which makes a lot of unfounded allegations and inaccurate, and
unfair conclusions that border on defamation,” said Dr Gono.
“I come as the man who was in charge of the RBZ during the
most trying period in our history and as a man who was at the centre of trying
to keep the economy going.
“I can state categorically that Dr Magaisa is offside and
that no beneficiary of the farm mechanisation programme ever refused to pay for
the equipment that they got and neither were they asked to pay.”
Dr Gono said this position was arrived at after consultations
with Government which took the decision and wrote to him that equipment given
to farmers during that most trying period should not be regarded as a loan to
anyone and, therefore, no payment was to be made by the beneficiaries of the
programme, who included A2 and A1 farmers.
He said the programme was undertaken in terms of the
standing provisions of the RBZ Act at the time, which compelled the Apex Bank
to carry out quasi-fiscal activities at the request of Government.
“The RBZ undertook this quasi-fiscal activity at the behest
of Government and in the national interest,” said Dr Gono.
“This was done in accordance with the then Section 8 of the
RBZ Act Chapter (22:15) which authorised State to direct the Central Bank to
carry out transactions in such a manner as the State may require and if so
requested by the State, the Bank was to make the necessary arrangements to this
end.”
The Sunday Mail understands that Dr Gono reached out to Dr
Magaisa via WhatsApp yesterday, raising his displeasure with the “defamatory”
article.
In a string of text messages, the
former central bank chief questioned Dr Magaisa’s motive behind cherry-picking
the names of beneficiaries that he published.
Dr Magaisa did not respond to the texts.
“My brother, your article of today is so unlike you to make
such damning conclusions without checking and clarifying with the one man
(alive) who was in charge of the RBZ-driven Farm Mechanisation Programme
2007/8,” charged Dr Gono.
“I thought that since I’m alive and surely capable of
enlightening anyone with interest in matters that happened under my watch … a
simple phone call or WhatsApp to verify the authenticity and background to the
issues of your interest would have served everyone from all the wrong
interpretations and erroneous, defamatory conclusions contained in your BSR.
“You are usually very careful with your facts and I wonder
what happened here? Anyway, I hope that you will have the courage to tell your
readers the facts of the matter as I shall put them down and apologise for
tarnishing their images before getting all the facts that allow anyone to form
their own opinions.
“Out of civility and good courtesy, I will share with you
the true facts then you will see how wrong your assertions of fraud, corruption
and looting are. On this one, you definitely got your facts wrong. I
unsuccessfully tried to reach you earlier when I saw the article.”
Dr Gono said as the RBZ chief then, he was compelled to
abide by the provisions of all relevant legal provisions governing the
operations of the Central Bank.
“Section 8 (11) of the old RBZ Act (Chapter 22:15) read
with the Banking Act (Chapter 24:20), the Official Secrets Act (Chapter11:09),
the Access to Information and Protection of Privacy Act (Chapter 20:27) and the
Exchange Control Act of 1996 are all legislative and legal administrative
instruments at the hands of a Government to use to achieve certain desired
objectives. Any Governor worth his salt works within the confines of those and
other Acts to advance Government objectives.”
He said at independence, the new Zimbabwean Government also
assumed loans that had been incurred by the settler regime, and likely for
nefarious undertakings against indigenous people.
“At independence, the RBZ and Government in general assumed
loans and obligations that had been incurred by the previous regime, some of
which had been used to acquire military equipment that maimed and killed our
people as well as agricultural loans that had been taken with State guarantees
from banks during those difficult years.
“None of these belonged to blacks. Today, under a
legitimate Government Mechanisation Programme that covered both A1 and A2
farmers during a very difficult period in the history of our nation becomes a
scandal?
“Both rural and non-rural farmers benefited from the
takeover of the loans by the State but I shall elaborate. There was no scandal
here, no corruption and no beneficiary refused to pay. The State did not demand
payment and that was above board.” Sunday Mail
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