Former Reserve bank of Zimbabwe (RBZ) governor Dr Gideon Gono, who was in charge of the 2008 RBZ Farm Mechanisation programme, has denied the central bank gave loans to beneficiaries, but in the same statement, confirmed that the government indeed took over loans. . His statement contradicts evidence contained in a letter written by himself that indicated the beneficiaries were given loans and were expected to repay.
Read More: Full List: RBZ Farm Mechanisation 2008 loans beneficiaries and how much they received
Responding to allegations made by prominent lawyer Alex Magaisa, in his BSR publication, Gono says Magaisa should have contacted him for clarity before publishing.
“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. 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,” Gono told The Sunday Mail.
“The RBZ undertook this quasi-fiscal activity at the behest of Government and in the national interest. 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,” Gono said.
In the same publication, Gideon Gono is quoted saying, “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.”
Gono’s statement in the Sunday Mail has been described by readers as an attempt to water down Magaisa’s looting expose as he contradicted himself.
In 2011, the then Governor of the RBZ, Dr Gideon Gono wrote to the then Minister of Agriculture, Dr Joseph Made: “Honourable Minister, I write to advise you that at its meeting on Tuesday, 25 October 2011, the Reserve Bank of Zimbabwe Board passed a resolution mandating me to seek from you guidance on how to resolve the Farm Mechanization Debt. As you are aware, Honourable Minister, the Bank is owed a lot of money by beneficiaries of the Farm Mechanization Programme. The Board needs your advice on the way forward given the political nature of the circumstances surrounding this debt. Whilst the Bank is cognisant of the need to avoid taking precipitous action which could have undesired repercussions on the national interest, there is an urgent need to make sure that this matter is finally put to rest.”
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