Kasukuwere, Gono clash
The tiff between Indigenisation and Youth Empowerment minister Saviour Kasukuwere and Reserve Bank governor Gideon Gono over the implementation of the economic empowerment programme heightened yesterday after the former vowed there was no going back on the programme.
Gono has repeatedly expressed reservations on the economic empowerment regulations saying the model, if adopted hook, line, and -sinker, could have catastrophic consequences on the economy.
Yesterday, Gono told journalists on the sidelines of an Independent Dialogue Forum in Harare that: “My views have not changed since I made pronouncements regarding the policy in 2007”.
However, speaking at a one-day Indigenisation forum, Kasukuwere said government had rejected the 25% social credits that mining companies were advocating for, saying government would stick to its 51% equity in all foreign-owned firms. Kasukuwere said 175 mining proposals had been received by his ministry and that mining companies had agreed to adhere to the 51% equity.
“We rejected the 25% that industry was proposing to us. That is unacceptable. We agreed on the 26% direct equity and as for the 25% in social credit as government, we said No, don’t worry about the social programmes that you want to do, government will do it,” Kasukuwere said.
He said the decision on social programmes should be given to the communities as they knew what they wanted for their communities.
“Communities will be represented on the board and will decide what they want to do. We accept that the business community has a right. We are starting with the communities,” he said.
In his mid-term monetary policy review statement in October 2007, Gono said:
“We must avoid schemes that create perceptions of instant gratification through grab, take and run and instead go into value for money, win-win type of acquisitions that are promotive of good relations inside and outside the companies between the newly—wedded business partners, be it government per se or private individuals.”
Yesterday, Gono told journalists on the sidelines of an Independent Dialogue Forum in Harare that: “My views have not changed since I made pronouncements regarding the policy in 2007”.
However, speaking at a one-day Indigenisation forum, Kasukuwere said government had rejected the 25% social credits that mining companies were advocating for, saying government would stick to its 51% equity in all foreign-owned firms. Kasukuwere said 175 mining proposals had been received by his ministry and that mining companies had agreed to adhere to the 51% equity.
“We rejected the 25% that industry was proposing to us. That is unacceptable. We agreed on the 26% direct equity and as for the 25% in social credit as government, we said No, don’t worry about the social programmes that you want to do, government will do it,” Kasukuwere said.
He said the decision on social programmes should be given to the communities as they knew what they wanted for their communities.
“Communities will be represented on the board and will decide what they want to do. We accept that the business community has a right. We are starting with the communities,” he said.
In his mid-term monetary policy review statement in October 2007, Gono said:
“We must avoid schemes that create perceptions of instant gratification through grab, take and run and instead go into value for money, win-win type of acquisitions that are promotive of good relations inside and outside the companies between the newly—wedded business partners, be it government per se or private individuals.”
