Gono leaves RBZ

Dr Gono

Dr Gono

Happiness Zengeni Business Editor
THE search for a new governor for the Reserve Bank of Zimbabwe has begun after Dr Gideon Gono, who had been at the helm of the apex bank for 10 years, bade farewell to the institution yesterday. Dr Gono’s term officially ends today.

Deputy Governor Dr Charity Dhliwayo has been appointed to act in the position for the next three months, after which the position rotates with the other deputy governor Dr Kupukile Mlambo also acting, in the event no appointment will have been made.

In a farewell statement yesterday, Dr Gono said: “to this end . . . Dr Charity Dhliwayo will be the first of the two to act as Governor for the period December 1 2013 to February 28 2014 and Dr Kupikile Mlambo to also act for three months after, before reverting back to Dr Dhliwayo if no decision is made before then,” Gono said.

“The fact of the matter is that I leave these premises today (yesterday) after 120 months of continuous occupation and it is a long time indeed. Even the law recognises that this is a lengthy period and says one must leave to give way to a new occupant.”

The appointment of a new governor is expected to boost confidence in the banking sector especially after Cabinet this week approved to assume the RBZ’s US$1,35 billion debt. The debt assumption is expected to pave way for the recapitalisation of the central bank and the restoration of its lender of last resort function.

Some of the names currently being speculated for the post include Dr John Mangudya, former RBZ governor Edwin Mashiringwani and Ministry of Finance director Andrew Bvumbe.

Dr Gono himself was reported to have proposed the names of his two deputies, Dr Dhliwayo and Dr Mlambo as his successors. However, deputy governors, even worldwide have never assumed the role of governor except on an acting basis.

At the time Dr Gono took over from Dr Leonard Tsumba, the economy was going into a slide. He came up with a number of policies, though widely criticised, in a bid to try and keep the country’s economy afloat. Dr Tsumba’s term expired on June 30, 2003 and Charles Chikaura was appointed acting governor for six months until Dr Gono took over.

Dr Gono was first appointed central bank governor in November 2003 and was re-appointed in November 2008 for another five-year term.

Dr Gono “presided” over an economy which was going through its worst spell on the back of an economic sanctions regime with some observers saying the amount of work he needed to execute was too much for him to halt the decline.

“Whatever I did had authorisation from the Government of the day,” said Dr Gono in an interview with AFP on October 8, 2009.” I prevented this country from descending into chaos like Somalia.”

During his tenure, Zimbabwe experienced cash and fuel shortages, the highest inflation in the world — 231 million percent at the last official count before dollarisation in June 2008 – corruption, high unemployment and the collapse of the health, education and agriculture sectors.

Illegal forex deals were rampant although Dr Gono known for such terms as “failure is not an option” or “irrational exuberance” partially legalised the use of foreign currency in January 2009 by allowing some shops to transact in hard currency after the Zim dollar had become worthless. In February, Government — through then acting finance minister Patrick Chinamasa — adopted the use of multi-currencies, mostly the US dollar.

He made earth-shattering decisions upon taking the office of governorship by closing a number of banks engaging in non-permissible activities and firing several chief executives in the process. A number of banks and financial institutions that were violating provisions of banking laws had their operating licences cancelled while some were placed under curatorship.

Dr Gono printed large quantities on money to support production, with the economy reeling under western imposed sanctions, leading to the demise of the local currency and collapse of the banking system.

He rebased old bank notes on August 1 2006 and introduced new ones. Prior to rebasing the currency Z$1 000 was the lowest denomination, which was reduced to Z$1 after three zeros were slashed.

Pin It
  • wolfgang mozart

    …Friends, Zimbos, countrymen..I ve come to bid farewell to Dr Gono…His was the least romantic tenure for a central bank guvnor. M sure, even heavyweights like Alan Greenspan wud not envy his role. Against a backdrop of the worst financial climate, the man seemed to have an inexhaustible bag of ideas, albeit unorthodox in sme instances…yeah, they call t expedience wer i cum frm. Considering the monstrous magnitude of the obnoxious forces he was contenting with, the benefits were largely infinitesmal or minuscle. Most notable of his stop gap measures include lopping off zeroes, introducing bearer cheques…among a cocktail of remedies i dnt easily recall. Alas, it seemed in dat forgettable epoch fate had decreed dat evil prevail..we became a living case study of finacial morass, eliciting comparisons wth the Hungarian crises, wartime Nazi German among other historic records of parallell economic malaise. As his surname wud allude, in another connotation, Gono was bullish, he wud not be cowed…lyk sme conjuror, He had a magic wand to pull a Houdini before an albeit humorless audience….Nothing captures the fervent but fruitless effort of his better than the tittle of His memoirs, whose subtittle reads, xtraordinary measures for xtraordinary challenges. It goes wthout sying dat, anyone in his shoes , hitherto, wud not have fared better. My bush economics is in tandem wth this, no wonder even the most robust of economies buckle due t the vagaries of the business cycle..remember th1930s great depression…Testament to his clout and shrewdness Dr Gono permitted Ecocash to see the light of dae and barred an overzealous colleague from tampering wth the Financial sector under the guise of indeginisation…. A Goethic poet wrote that, “Heroes are born, wen bullets fly, wen e earth explodes, wen canons roar, wen trumpets fade”…Need I say more….ADIOS COMRADE

  • EnoughISenough

    CAN GONO LEND $ 1.8b to Zim Gvt ??~ (a) yes he can (b) no he h’ve to sell some of his assets first

    1.How many properties does Gono h’ve in Dubai!
    2.Gono top ten corrupt / fraudster in Southern Africa ~True or false
    3.How many farms does Gono possesses in Australia !
    4. Swiss bank accounts ~ does he h’ve it!
    5.If auditors are to go through his business accounts & his source of capital ~ can they do anything about it!

    6. Finally , can Gono complete in 9ja’s 419 competition & bring a medal back home ( food for thought).

  • amos

    l would like to see Chinotimba taking over,same idealogy

  • dziva

    Let the world open up and swallow you! Remember how you powerlessly ran against
    zim inflation and trying to camourflage the corrupt leaders?Only hope the Corrupt leaders will endorse your return again! Your tenure brought untold suffering and we lost our beloved ones because of your Nazi policies and you displaced us , hiding behind illegal sanctions animal! Man on the mirror, nyadzi dzinokunda kufa!

  • chommie

    Ko Tendai Biti Haaite here???

    • Madhara

      haaite

  • Jotham

    Thank you Doctor G.Gono you worked tirelessly for Zimbabwe , when internal and external enemies were destroying the Zimbabwean economy. Progressive economists in Zimbabwe and Myself, we Say God will reward you immensely. If it wasn’t for your foresight and determination , Zimbabwe would have ground to a halt. The British tried relentlessly to destroy Zimbabwe and they failed dismally. the Americans even went a gear up to entice to join the World Bank, so that Zimbabwe would not survive the Economic Embargo, you rejected and soldiered on. You served Zimbabwe big time. You are a great man.
    May God bless you immeasurably , May Jesus be with you for ever , May the Holy Spirit of God take guard of you and your family . May the President assign you other duties, you are an Asset to Zimbabwe. Numerous whites(and some Blacks)(Rhodies) would wish you death, but God is greater than them. The MDC-T followers in their stupidity assume that the majority of Zimbabweans are blind, they deny the existence of sanctions. Today Biti of all Humans says Gono Loved Zimbabwe, and will for ever love Zimbabwe. That admittance from a satanist speaks volumes of their double standards.

    • kitsi yatota

      You really need to seek help my friend. Something may not be right in your head. What worries me is that you associate your delusions with relegious foresight.Even my untutored grandmother would tell you and your progressive economists that Gono will go down as the worst governor in Zimbabwean, and African history. Who doesnt know how Gono’s ‘non text book economics’ of printing money, buying forex on the black market, seizing bank deposits and funding quasi political causes, condemned an entire country to unprecedented poverty.He created a chaotic economy and sought to blame it on everyone except himself. His shame is not helped by the silly mantra that our country was under siege, when in fact it is Gono and his cronies who turned the whole country into an enterprise whose sole purpose was to appease thiose at the top of the food chain.THE BIGGEST FAVOUR THIS MAN COULD HAVE DONE WAS TO LEAVE THE COUNTRY IN THE STATE IT WAS BEFORE HE TOOK OFFICE. DING DONG THE WITCH IS GONE!

      • christian

        this is Gono writing as “Jotham” kikikiki nyadzi dzinokunda rufu lol!

    • succuba

      … ha ha ha Jotham… you crack me up, are you really that naive or just being sarcastic?

    • dummyboy

      you are dum sheet

  • Zimbo1

    End of a position that saw one of our great son become a loved and hated person by those who have their various opinions on his way of doing business at the RBZ, one thing for sure is that this man did a lot of good to save our economy when it mattered at a time when the negative tide was much stronger and managed to do much more damage. Although some of your policies wrecked many good and bad plans for those who had monies in banks and stocks we wish you the best in your new ambitions and don’t stop dreaming big vaG.G.

    • succuba

      Wrong Zimbo1, he did not save the economy, he destroyed it as well as openly stealing from honest citizens bank accounts. Man up and accept it.

  • Boorangoma

    “The fact of the matter is that I leave these premises today (yesterday)
    after 120 months of continuous occupation and it is a long time indeed.
    Even the law recognises that this is a lengthy period and says one must
    leave to give way to a new occupant.” – GONO

    Watonanaira mudhara ka ..kkkkkk .. 34 years vs 10 years ..

    Regai mudhara akotsire achitaura ,makumi matatu nemana hakusi kutamba uchingo Mismanager. Unodzimara usisina cheku mismanager. Gono mismanaged for 10 years and he ran out of things to mismanage including zvirugwi zvake zvehuku zvaanga ongotungidza oga muma dying minutes achitsvaka insurance claims .

    • Jambanja paSalisbury

      Hhaaaahhaaaaaaaaaaaaa!

    • zimbozvomene

      Boorangoma wandipedza!! Uri padhuze ndaikutengera Chibuku Super!! Hanzi akapisa matanga achitsvaga insurance!! PDN!!!

  • harare

    i have not had a beer for 18 months today i will drink to celebrate the liberation of zimbabwe from grade 2 economics, printing bond paper the buying us$, the guy was insane inflation went berserk thanks to the so called doctor , doctor of nothing i say

  • MukarangawekuMberengwa

    I can Zengeni urikuda kuzama kubaya Gudo nemumukanwa kuti aktivuraira nyika asi ndinoona wakasungwa neutare nevanhu veZANU PF . Gono was a failer akatikanda murudaka gwenhama ndinofara kuti aenda pliz ngaasadzoke . Rangarirai 2008 vakomana varipedo naye ndivo vaikambura mage isu varombo toditigwa nemutuvi . Thank u Copac with the new Constitution and ex-Finance Minister Biti for bringing sanity at RBZ

  • Mimi

    Biti would would have done had his party chosen to recognize the winning party in the harmonized elections but they acted like spoiled confused brats. Saka vakadya izvozvo.
    Gono’s departure will certainly be celebrated by almost all and sundry. He was beginning to act like more of a politician than an Economist saka as a result he lost the plot. What Zimbabwe needs now is to have a respectable RBZ Governor who will not only lift Zimbabwe and the Banking sector to its heights but will be honourable. This way the incoming incumbent will have the respect that is normally reserved for Bank Governors. Our prayer is for Gushungo to really take the best incumbent without fear of favour this time around. Government needs to avoid making the same mistakes that it has made for donkey years and make us a laughing stock.

    • Gilbert Pindano

      ‘gvt needs to avoid making the same mistakes that it has made for donkey years and made us a laughing stock’ kikikiki

  • Mr.Sunningdale(Kong Town)

    What about the money he stole from our FCAs? Good riddance !

    • Tinotonga

      Kana usati wasaina maindemnity forms with your bank by now maybe hauna kubirwa cash!!

    • Jotham

      The Govt. is the one that took your money and it will be refunded . It seems as if you are not well informed jackass

      • Mr.Sunningdale(Kong Town)

        Twat

  • Mimi

    Gono ngaaende zvake, ngaaende. Rumors say he is going to be taking over late Senator Kangaii’s seat in Buhera. Inonzi politics iyi…..

  • ZANU PF is good

    thanks for everything Dr Gono.

  • Hlahla Hamburamatope

    Bring on Dr Mushayakarara

  • christian

    Fungisai akaimba …pano pasi hama ndati hapana nechitsva, zanu ikauya hona inoenda, gono akauya hona unoenda… gives hope lol!