Source: ED says Mangudya beyond reproach – DailyNews Live
Gift Phiri 4 November 2018
HARARE – Despite explosive broadsides being fired at the Reserve Bank of
Zimbabwe (RBZ) governor John Mangudya, the 55-year-old neoclassical
economist-turned banker will stay on in his job until February 2023.
In an exclusive interview with the Daily News on Sunday, presidential
spokesperson George Charamba said the appointing authority – President
Emmerson Mnangagwa – extended Mangudya’s tenure – taking him through his
second and final term.
In terms of the RBZ Act, a governor holds office for a five-year period,
which may be extended upon its expiry.
The Act goes on to say no person shall hold office as governor for more
than two terms or for a period which, in the aggregate, exceeds 10 years.
Mangudya took over from Gideon Gono as RBZ governor in March 2014.
He was widely expected to be eased out of office at the expiry of his
first term despite traditional protocol that saw all the post-independence
governors namely Kombo Moyana, Leonard Tsumba and Gono seeing out their
full two terms.
This was after the apex bank boss, along with Finance minister Mthuli
Ncube, came under heavy criticism last month after foreign currency rates
soared on the parallel market, resulting in a wave of price increases and
widespread shortages of basic commodities.
Daggers were then drawn out against him after a Communications Taskforce
appointed by Ncube and headed by Acie Lumumba made shocking claims last
week that the central bank was engaged in money laundering and aiding and
abetting the foreign currency black market.
In the wake of the damning allegations, Mangudya suspended four senior
directors at the bank accused by Lumumba of engaging in serious
misconduct.
Charamba said Mnangagwa has fully satisfied himself that Mangudya was a
man of good standing, challenging anyone with evidence against him to
tender it to the police or the investigating authority.
“Those are mere perceptions; you mere mortals can speculate and perceive,
we have all the information,” he told the Daily News on Sunday.
“…I am not even applying myself to those allegations because they were
not made in a competent court, you see. When we are appointing an
authority, we do it on the basis of facts not on the basis of perceptions.
“….This agenda-setting that was attempted to be made through the media
is not working because it has made no impression on the appointing
authority. Mangudya’s performance in our eyes is satisfactory enough not
just to finish his tenure but to make sure that it is renewed as per the
Constitution.”
Charamba also commented on speculation that was linking the executive
director for Africa at the World Bank Group Andrew Bvumbe, whose departure
from the Washing DC-headquartered institution was confirmed this week, to
the RBZ.
He said as a matter of fact, Bvumbe was joining the Office of the
President and Cabinet in an advisory, technical role.
“But anyway, why is there that misconception that when you come back from
the World Bank, you must be landed with the post of governor? This guy is
an MSc; Mangudya has a PhD. Which is a higher qualification, what is the
point?” Charamba asked rhetorically.
He also rubbished claims that Mnangagwa was looking to replace Mangudya
with FBC bank chief executive officer John Mushayavanhu.
“Comrade, there is no vacancy. The point is that, thanks to you guys, he
(Mangudya) is assured of a second term, which is a constitutional limit,”
Charamba said.
The presidential spokesperson had no kind words with those calling on
Mangudya to step down.
“Those calls are not coming from the appointing authority, are they? The
trouble is that Zimbabweans are in the habit of usurping the
constitutional powers of the president so that they can make a government
for him; they can’t do that. You don’t malign someone’s reputation so as
to get the appointing authority to disqualify him.”
He emphasised the importance to the country of continuity at the central
bank, which he said was engaged in delicate talks with crucial lenders on
the implementation of the country’s bailout, with creditors pushing Harare
to respect past pledges to fire civil servants and stick to unpopular tax
rises.
Charamba said Mnangagwa was delighted that the governor has agreed to stay
in his role for a further four years to provide vital stability for the
economy.
He revealed that when the rumour that Mangudya was being fired started
circulating on social media, there were serious threats on the lines of
credit that were on the verge of being signed for the country.
“This is a very serious matter and we have had to issue a statement that I
issued today (Wednesday),” he said.
Asked if he was referring to the Cairo-headquartered African Export Import
Bank (Afreximbank) that is finalising a $500 million loan facility for
Zimbabwe to help secure payments for essential imports and to promote
exports as well as restore foreign currency liquidity and stability in the
market, Charamba said: “No, why Afrexim? Calls were coming from many banks
in the region and Afrexim was just but one of the many. It’s a serious
matter even from within the region.
“There is a facility we are working with within the region which was
being imperilled by this kind of talk,” he said.
“For you, it’s about headlines but the country, we measure the costs in
terms of the millions lost or forgone.”
Asked about the quantum of the line of credit government was expecting,
Charamba said: “I can’t give you that information; it’s for the governor,
for the financial authorities to give you.”
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