FINANCE Minister Mthuli Ncube is trying to impose top
economist Andrew Bvumbe (pictured) as the new Reserve Bank of Zimbabwe (RBZ)
governor to replace the incumbent John Mangudya following the expiry of his
employment contract with the World Bank (WB) where he worked as executive
director for the Africa Group 1 Constituency (AFG1).
Government sources said although Ncube has had good working
relations with Mangudya, he is closer to Bvumbe and likes the fact that he has
been working at the WB and is connected to international financial
institutions.
According to the sources, Bvumbe is supposed to return to
his former position as head of the aid and debt management office at the
Finance Ministry. The position is currently occupied by an official seconded to
the ministry by the RBZ.
Sources said Ncube, who began courting Bvumbe soon after
his appointment as Finance minister in September, is fighting to assert total
control at the central bank by ensuring senior positions are occupied by people
he is comfortable working with.
“Ncube has of late been in talks with Bvumbe and indicated
that he would want to work with him once his contract at the WB expires. They
first met on the sidelines of the United Nations general assembly meeting in
New York in September. They also met in Bali, Indonesia, at the World Bank and
International Monetary Fund meetings and held further talks,” a Finance
Ministry official said.
“Although there is no bad blood between the two, Ncube
appears to be frustrated by Mangudya’s cautious approach to the sweeping
changes he sought to introduce when he became Finance minister.”
Senior RBZ officials also told the Zimbabwe Independent
that when Ncube arrived at the ministry, he wanted to quickly remove bond
notes, but Mangudya, who introduced the surrogate currency in 2016, warned that
doing so would be catastrophic.
Ncube’s idea of introducing a local currency was also
deemed too hasty by Mangudya, who subtly warned the ambitious minister in his
monetary policy statement on October 1 that doing so would be akin to “putting
the cart before the horse”.
“Ncube wants to control the RBZ, that’s one area where they
are having differences. Mangudya is of the idea that Ncube’s big bang approach
would cause mayhem and he favours gradual change.”
Sources said Ncube and Mangudya are currently not operating
on the same wavelength as the minister was making decisions without consulting
the governor.
“A case in point is that of the controversial
communications taskforce which Ncube established. Mangudya knew nothing about
the taskforce and, when he found out, he wasn’t comfortable with it at all.
Actually, some RBZ officials believe that most of the allegations levelled
against directors at the bank are either half-truths or total falsehoods,”
another source said.
The short-lived taskforce, chaired by controversial former
Zanu PF youth league official William Mutumanje, commonly known as Acie
Lumumba, led to the suspension of RBZ directors on corruption allegations:
Mirirayi Chiremba, Norman Mataruka, Gresham Muradzikwa and Azvinandawa Saburi.
Ncube was however later forced to disband the taskforce
following a major outcry in government and in the ruling Zanu PF. George
Charamba told the press yesterday Mangudya’s term of office would be extended
once it expires.
‘‘The President is very clear on the Reserve Bank
Governor’s tenure and his performance. Not only is he there to stay but the
President is about to renew his contract for a second tenure,’’ Charamba said.
Efforts to get
Ncube’s comment were unsuccessful. Zimbabwe Independent
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