Biti Blasts Gono
FINANCE Minister Tendai Biti has launched a scathing response to claims by Reserve Bank of Zimbabwe Governor Gideon Gono that he is blocking badly-needed loans from international financial institutions.
The state media has been running a series of stories allegedly “exposing” how Biti has prevented the International Monetary Fund (IMF), the African Export and Import Bank (Afreximbank) and the PTA Bank from lending money to Zimbabwe.
In August the IMF extended a loan of US$510 million as part of the Bretton Woods Institution’s response to the global financial crisis and the Afreximbank and the PTA Bank promised a combined US$371 million in lines of credit.
Gono in a thinly veiled attack on Biti last week said the PTA Bank facility had been “taken off the table because we do not seem to be serious”.
The central bank chief has also publicly attacked his boss over the way he has handled the IMF funds, which has been described by Zanu PF loyalists as tantamount to “sabotage”.
But in an exclusive interview on Friday shortly after arrival from Turkey where he attended this year’s annual meetings of the World Bank Group, Biti said there is no way he could block the loans because he was “not the transacting customer”.
Even if he were to give the go-ahead, the money would still not be released as the process has to go through Parliament.
He said the accusations were being made by “political vultures masquerading as advisors”.
“If someone wants to be a Minister of Finance,” Biti said, “they have to go through the rigmarole of politics and learn to say slogans. A frustrated politician should not masquerade as a civil servant.”
He described the attacks as part of a “vuvuzela orchestra (that) is in full swing”.
A vuvuzela is a noisy instrument popularised by South African soccer fans.
Artistes in South Africa are now developing the instrument further to come up with an orchestra from the instrument.
“This business of blowing vuvuzelas of insanity should stop. But no matter how loud the noise becomes, a vuvuzela will never play the Mozart or Beethoven sound, and we will never dance to those decibels,” Biti said.
“Government is not run through newspapers. You do not use the Business Herald to exhibit your frustration. We do not take advice from newspapers. We run a serious ministry with a serious mandate.”
In what could add oil to the already burning fire, Biti warned that the continued leaking of information on the loans could land some RBZ officials in trouble with the law.
“Please do not break the Official Secrets Act by leaking sensitive state documents,” he warned.
Biti said those accusing him should not pretend like they “have a higher dosage of patriotism than everyone else”, or behave as if they “hold the sole monopoly of best interests of Zimbabwe”. He said negotiations were currently underway between the government and international finance institutions on the release of the funds that have been promised.
On the Afreximbank, he said they have a facility worth US$200 million, of which $100 million is already running.
The country owes Afreximbank $59million, which was incurred through oil for the National Oil Company of Zimbabwe, a grain facility through the CBZ Bank and strategic imports.
The current approved facility with the PTA Bank stands at $171 million, of which $45 million is already running. The country owes the PTA Bank $55 million.
The RBZ has proposed that part of the special drawing rights (SDR) from IMF be used to settle these debts.
But Biti said this could only be done after a parliamentary process, which has not been initiated yet.
Once the necessary legal measures have been taken, the funds can be released.
“The law is very clear, if the government is taking over the debt of another corporate body, it just cannot do it unless a Debt Assumption Act is passed by Parliament.
“This is an elementary legal position which is so self-evident that it shocks me certain institutions don’t know about it.”
In an earlier address to the 15th Congress of the Zimbabwe Commercial Farmers’ Union (ZCFU), Biti pleaded for prayers saying the accusations against him were the work of evil forces.
“Kana mwana Grade Two chaiye akamboramba mari here? Imhepo chete dzakasimuka, ngatidzinamatirei. (Even a Grade Two pupil cannot refuse money. It’s just evil forces at play. Let us pray).”
During a public discussion on Friday evening, Biti said although he “knew from day one that I would swim in sewage”, he would not quit.
Additional Reporting; The Standard
Posted by Sakhile Malaba
on October 11, 2009. Filed under Politics.
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