RBZ equipment goes under hammer


Thousands of pieces of agricultural equipment belonging to the Reserve Bank of Zimbabwe (RBZ) will from tomorrow up to Friday go under the hammer to recover money owed to SeedCo International.

According to a statement by the Deputy Sheriff in Harare the auction will be held in Bulawayo at the National Railways of Zimbabwe Astra yard.

The case was heard at the High Court under case number HC5162/09.

Some of the equipment to be sold includes 20 945 harrows, 54 planters and 1 639 cultivators. 1516 scotchcart boxers and 1 277 knapsack sprayers will also be sold.

Last week several vehicles belonging to the central bank were also attached.

Sources told NewsDay SeedCo was owed $4,2 million by the central bank.

The RBZ also owes other local companies and non-governmental organisations $1,1 billion which it unilaterally garnished from their foreign currency accounts between 2004 and 2008.

Over the last few years, the central bank engaged in costly non-core activities such as farm mechanisation and parastatals and local authorities’ reform.

Such departments as mechanisation, parastatals and special projects have since been shut down while others have been downsized.

The central bank in January retrenched 1 455 employees out of its1 948 workers.

Parliament last year passed legislation curtailing the central bank from engaging in quasi-fiscal activities.

This has led to the refocusing of the bank on core activities centred around bank licensing, supervision and surveillance; financial markets and sector stability; exchange control; economic research and policy enhancement; anti-money laundering and prevention of terrorist financing; bank-to-government and lender-of-last-resort activities; and policy and price stability advice to government.

Several companies have had their properties attached since the country adopted the use of multi-currency system two years ago owing as they have failed to settle their debts.