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Mugabe and his ZANU PF party have a rather simple maxim when it comes to the laws in Zimbabwe. "Do as we say, not as we do."
"Zimbabwe Central Bank Governor approved the illegal 54 percent acquisition of Premier Bank by German investors, selling a bank he is a major shareholder and also violating the 49 percent Indigenisation & Economic Empowerment Act quantum of equity owned by foreigners, we can reveal.
Germany investment house ADC recently acquired controlling stake in Zimbabwe’s Premier Finance in a US$6 million transaction that saw the Reserve Bank unilaterally fast-tracking the waiver of the country's empowerment laws to leave the financial institution in foreign control in a deal that has opened up a pandora's box exposing how ZANU PF politicians shift goal posts to line up their pockets, taking the vantage point shouting the loudest patriotism charade when it involves others."
Mugabe recently signed into power a law which states that all foreign-owned businesses in Zimbabwe must have a 51% local ownership.
But this law has been ignored by Gono, and I doubt very much if he will be brought into line by Mugabe and his loyalists, and the money from the extra 5% will probably be used to ensure that very few people in any positions of authority will stand in the way...
"The Zimbabwe Mail can reveal that some cabinet Ministers from both the MDC and ZANU PF have decided to take up the matter into the next cabinet meeting.
Finance Minister Tendai Biti has issued a Ministerial directive to investigate the manner into which the deal was concluded, amid reports that the waiver of the Indigenisation and Economic Empowerment Act requirements was carried out by the Central Bank without consulting the relevant Ministries.
Minister of Indigenisation and Economic Empowerment Saviour Kasukuwere is reported to be calling for an immediate police investigation.
The Central Bank itself has a statutory instrument that stipulates a 10 percent foreign ownership in local banks, and Gono has even violated his own laws."
I am absolutely stunned that a German investor should buy 54% for US$6 million - which would suggest that the bank has a total equity of US$10 million. That is more than the economy of Zimbabwe! If we believe the likes of Gono and Mugabe, that is...
Moreover, when it comes to Zimbabwean banks, the maximum foreign ownership is just 10%. Do you think that Gono knew what he was doing?
I reckon so, and once the money has changed hands, Gono will turn his back on the investors...
"Mr Gono, has been a major shareholder in Premier Bank, together with his close ally and sidekick, the former RBZ’s head of bank licensing, supervision and surveillance chief, Norman Mataruka since the bank started business.
Mataruka and Gono each own 25 percent shareholdings in Premier Bank and Mataruka's brother in law who is the Chairman of Premier Finance group and holds 3%. So the two Reserve Bank Officials owned Premier Bank before they sold 54% shareholding to Germany investors.
Gono is represented in Premier board by his business associate and partner Blazio Tafireyi who sits on the weekly Financial Gazette board."
I would have thought that legislation would be in place to disallow politicians do deal in areas which they have a vested interest in... But in Zimbabwe, even if legislation were in place, the likes of Gono would get away with murder... and more.
"Zimbabwe’s Banking Act expressly discourages and prohibits RBZ officials from owning shares in allied businesses, which are subject to their routine scrutiny or checks for fear of subjective views on appraisals and other operational issues.
Among those banks culled or said to have been plagued by poor to non-existent oversight structures and mechanisms were Barbican Bank, ENG Capital, Guardian Asset Management, Nicholas Ingrain’s Aftermarket Banking Corporation, Rapid Financial Holdings, Royal, Sagit Finance House, Trust Banking Corporation and a host of other small institutions such as asset management companies.
Questions are now asked as to how the pair sanctioned and approved such a transaction violating the country's Indigenisation and Economic Empowerment legislation while they are also key shareholders with huge financial interests in Premier Bank."
Robb WJ Ellis
The Bearded Man
