More heads roll in cash scam


TOP management at NMB Bank, Zimbabwe Allied Banking Group and the People’s Own Savings Bank have been relieved of their duties after vast sums in new notes issued to them by the Reserve Bank of Zimbabwe found their way onto the illegal parallel market on Wednesday evening.

However, the Reserve Bank of Zimbabwe lifted a five-year ban it had imposed on CFX Bank’s non-executive directors on Thursday with the central bank chief Dr Gideon Gono saying they were not responsible for the day-to-day running of the bank.

The bank’s executive directors and top management remain banned for five years.

Dr Gono summoned NMB, POSB and ZABG top management on Thursday night and informed them of the decision to relieve them of their duties.

This was done in the presence of the Bankers’ Association of Zimbabwe president Dr John Mangudya, who expressed disappointment over the unethical behaviour of some banks.

POSB withdrew $4 trillion from the RBZ on Wednesday so it could be ready for the big rush as the new $100 million weekly limit came into force on Thursday, but diverted more than $50 billion onto the parallel market well before the new notes became legal tender.

"POSB is very known for playing this game. Could you now tell us how this money left your bank?" Dr Gono asked.

He said the bank’s management had failed POSB, its customers and the country.

Those relieved of their duties at POSB were the chief executive officer, director of finance, general manager (banking operations), general manager (risk management) and senior treasury staff.

"We are sick and tired of being labelled crooks," said Dr Gono.

The governor had briefed President Mugabe on developments taking place in the banking sector.

The amount diverted by POSB onto the parallel market could have been enough for more than 500 people.

"This is criminal because the money was not yet legal tender when it was released. Therefore, this is why after this you will need to go and give an account of yourself to the chief superintendent in charge of crime," Dr Gono said.

Mr Admore Kandlela, who is also a director in CFX Bank, is the chief executive at POSB, which has a substantial shareholding in CFX.

He pleaded with Dr Gono to give him an opportunity to investigate how the money could have been diverted onto the parallel market.

"We plead for a bit of research on our side," said Mr Kandlela.

After receiving $4 trillion, Dr Gono said, POSB requested for a top-up yet it had earlier on channelled what it got onto the parallel market.

NMB was given $2 trillion on Wednesday and channelled $20 billion onto the parallel market on the same day.

The amount released illegally could have been enough for 200 people.

"We have intelligence that your systems and your staff were in the habit of doing this, causing serious shortages of cash," Dr Gono said.

He said he has defended NMB more than any other bank in the past and expressed disappointment that the bank had also involved itself in illicit activities.

Relieved of their duties at NMB were the chief executive officer, executive director retail, treasury and risk management.

ZAGB was given $5 trillion on Wednesday and

had released $400 billion onto the market before midnight.

Of the amount, the RBZ intercepted $5 billion with Dr Gono saying the balance had already been spent.

ZABG could not explain how the money got into the market.

The bank’s chief executive officer, heads of risk management, treasury and retail banking were subsequently relieved of their duties.

One of the bank’s officials pleaded for mercy but Dr Gono would have none of it.

"Those who could forgive you are the pregnant mothers, workers, the sick suffering from cholera, the poor journalist out there. Those are the persons qualified to say I forgive you. There comes a time when authority should show that there are people in authority," he said.

Dr Gono said people have been committing offences in the name of the RBZ and Zimbabweans were beginning to believe that the central bank was releasing cash directly to buy foreign currency on the parallel market.

"If there is anyone posing as an agent of the RBZ mhanyai mutore maproceeds acho. Rovai vanhu vacho tigoona kuit vanoenda kupi," Dr Gono said.

The central bank chief bemoaned the paltry penalties imposed on those convicted of illicit financial dealings.

Yesterday people continued to throng banks to withdraw the new $100 million per week limit.

Although long queues were observed at some banks, others — notably Standard Chartered, Kingdom and Stanbic — had shorter queues.

Some branches of ZB Bank, CBZ, CABS and Barclays in the city centre ran out of cash before midday.

Most banks are serving their customers inside banking halls, as they were yet to upgrade their ATMs.

Prices in most shops continued to skyrocket although the black market parallel rates fell slightly.

Although some depositors managed to withdraw their money it was immediately eroded by inflation following the sudden wave of sharp increases in the prices of basic goods and services.

"We spent the night here only to find that there is no money. I am hungry and I have no money to buy food for my children at home. I don’t know what to do," said Mr Tatenda Mandiziba, who was queueing at CABS First Street Branch.

Barclays clients at the First Street branch had no kind words for the management at the bank whom they blamed for failing to give people money in time.

They said the bank was always among the last to give out money to its clients each time a new limit was announced.

"Every time the RBZ announces new maximum withdrawal limits Barclays will always tell its customers that their system is down. We are very suspicious about the management. I think there are some underhand dealings going on in this bank," said Phillip Chinjekure of Kuwadzana.

He urged the RBZ to order banks to comply with its directives to avert inconveniencing depositors.

yekela oxamu baphaxhulane

http://www.inet.co.za - 12/17/2008 6:29 AM
Mugabe’s cronies fear for their lives
Zimbabwe’s army chiefs were yesterday reviewing their personal security, a day after air force supremo Perence Shiri was shot, allegedly by disgruntled soldiers.

By Moses Mudzwiti

ZIMBABWE’S army chiefs were yesterday reviewing their personal security, a day after air force supremo Perence Shiri was shot, allegedly by disgruntled soldiers.

Shiri, a close confidante of president Robert Mugabe, was ambushed on Monday while travelling on his farm in the Shamva area, about 80km north of Harare.

“It appears soldiers were behind the shooting. They waited for Shiri in the hills and opened fire as he drove past,” said a police source privy to investigations into the shooting.

The air force chief survived the shooting and was in hospital yesterday. It appears he was shot in an arm.

“He lost a lot of blood and his car was riddled with holes,” said a reliable police insider. “It is clear the attackers wanted him dead.”

Shiri is part of Mugabe’s security high command, which includes strongmen police commissioner-general Augustine Chihuri, and defence force commander- general Constantine Chiwenga.

Earlier reports suggested the shooting was part of a plot to assassinate Mugabe.

However, initial police investigations showed that the 84-year-old president was nowhere near the ambush.

All top security officials, except for Shiri, held emergency meetings yesterday to discuss, among other things, their own security and the breakdown of discipline in the army.

At least 16 soldiers a face court martial for their part in disturbances in Harare last month when angry unpaid soldiers rioted in the capital. Mugabe, who is commander- in-chief of all the country’s security forces, has not made public comment on Shiri’s shooting.

The air force chief was one of the commanders of the notorious 5th Brigade, the crack military unit that was unleashed by Mugabe on his local and external enemies in the early 1980s.

Shiri’s men killed thousands of Ndebele- speaking Zimbabweans in a determined quest to put down a rebellion.

The unit was also used to counter Renamo rebels in neighbouring Mozambique more than two decades ago.

“He is a hot-tempered chap. He once shot a police vehicle at a roadblock,” recalled a policeman. “Shiri is a cruel guy, everyone hates him.”

The feared military chief was reportedly in intensive care yesterday, but security forces refused to disclose the name of the hospital.

Tomorrow, Mugabe is expected to address his Zanu-PF congress is Bindura, a small town near the area where Shiri was shot.

The congress has already been postponed once owing to the death of Elliot Manyika, a Zanu-PF heavyweight and minister without portfolio.

He died in a road accident.

At Manyika’s funeral last week, the late politician’s brother said the car crash was a culmination of several death threats.

Manyika was in charge of the infamous Zanu-PF youth militia that terrorised opposition members during elections earlier this year.

Yesterday, Harare remained tense after outbreaks of violence involving police and soldiers in the downtown area. There were unconfirmed reports of looting.