Mangudya washes hands on economic collapse

RESERVE Bank of Zimbabwe governor, John Mangudya yesterday seemed to lay the blame for the impending economic collapse on the government, saying he had done everything he had promised to do.

BY RICHARD CHIDZA

“We have done everything we promised as monetary authorities and await corresponding movement on the fiscal side.

“The issue is about confidence and we need confidence building policy measures to win this war.

“We need to remove the ambiguity in the market,” he told NewsDay yesterday.

In spite of the panic buying frenzy that set in at the weekend, Mangudya was upbeat that the economy was on the mend, despite the current challenges.

“This economy has been on the rebound. We have actually increased foreign currency allocation for basic commodities and fuel. There is no need for panic,” he said.

“I would be worried if it were fuel importers or cooking oil producing companies that had complained.

“These have not because we have increased foreign currency for fuel from $7 million to $10 million.

“If anything, it is the ordinary people, who are panicking because of some irresponsible social media messages.

They have enough foreign currency and I am sure they are okay.”

The RBZ boss said companies in the agricultural value chain have increased capacity, with disposable incomes increasing by over $360 million since the end of the farming season.

President Robert Mugabe is expected in the country today, where he is set to be confronted by an economy literally on flames after a dramatic weekend that triggered scenes reminiscent of the 2008 hyperinflationary era.

Mugabe has been away attending the United Nations General Assembly since last week, with the economy taking a severe beating in his absence.

“He (Mugabe) is expected in the country tomorrow (today) and is likely to travel to South Africa this week,” a government source said.

The economy took a turn for the worse on Friday, as prices of basic commodities shot up, while fuel queues re-emerged, leaving opposition parties seething, with former Finance minister Tendai Biti describing his successor, Patrick Chinamasa as a “criminal”.

“It’s a calamity. The wheels have come off. Chinamasa is a criminal being used by people with no idea of how to run an economy.

“Zimbabwe is in a unique situation in that Mugabe and his government have managed to create two crises, in any other environment, such things would never happen.

“We are in a recession, but then we have an inflationary situation.”

A senior government official, who spoke on condition of anonymity, also blamed Mugabe for fiddling with political issues while the economy was in the intensive care.

“In April, Mugabe made a pronouncement regarding the toxic indigenisation policy, but nothing has been done to align this to the Act.

“The land issue remains as unhelpful as ever.

“Mugabe is actually disempowering citizens by giving them land without title when the white farmers he took it from used the same to access finance,” the source said.

Mugabe has also been creaming the country of vital foreign currency through his expensive and regular foreign jaunts, with his recent trip to New York gobbling a reported $10 million.

The Zanu PF leader has already chewed over $50 million on foreign trips since January this year.

Both Chinamasa and Information minister Christopher Mushohwe were unreachable for comment.

MDC-T spokesperson, Obert Gutu said the solution to the current economic crisis lies in a change of government, urging Zimbabweans to register to vote.

“The economy has tanked. Everything that can go wrong has since gone wrong.

“The MDC would like to call upon Zimbabweans to register to vote in their millions and also to make sure that they vote wisely in next year’s elections.

“What is now frightening is the prospect of the disappearance of essential goods from our supermarket shelves.
“Already, there’s a shortage of cooking oil and other essential goods.

“Shop owners are now limiting customers on the quantity of cooking oil that they can buy and prices of goods have shot up considerably,” he said.

Social activist, Evan Mawarire, who leads the #ThisFlag movement, in a video message, said the government has destroyed the lives of citizens.

“It makes us think that government is up to something sinister. Its pushing citizens to the wall and we have had enough.

“Our government does not listen to its people and we saw this crisis coming, but our government is blind,” he said.

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26 Comments

  1. And to the Resignation……..!!!!

  2. governor idofo rakadzidza hapana fiscal yamamirira chinjai hurumende nehudzvanyiriri nehuori

  3. Ndofunga chikomana chekufamba sechaka sticker nekrango ku new york ichi ndochidofo ini. Economics dziri dynamic you cannot use ideas that were conceived in 1923 to solve 2017 problems. Leave Mangundya out of this. He is just a symptom lets go straight to the cancerous cell. Otherwise ticharamba tichichinja maGovernor but pasina chinobuda.

  4. Thats what you should expect when a black person is in leadership. A black person does not know how to run a country. Its only looting, and looting and looting and nothing else. A black person always find excuses, eg, drought, sanctions, Britain, America etc. ITS A CURSE TO HAVE A COUNTRY RULED BY A BLACK PERSON. A BLACK PERSON GREW UP IN POVERTY, PUTTING ON NHEMBE AND LIVING IN CAVES AND YOU TELL ME THAT PERSON CAN RUN AN ECONOMY?
    OPTION 1: BRING BACK THE WHITE FARMERS YOU CHASED.
    OPTION 2: DO AWAY WITH THESE STUPID POLICIES E.G INDIGENISATION ETC.

    1. Go straight to the point rather than blanketing all blacks in leadership positions. When a system is oiled to such that one can’t challenge views of leaders, this is what happens. It’s has nothing to do with colour/creed of a person but rather defunct ideology

    2. African politics is still in it`s primitive stage and is slowly evolving. Mugabe and Zanu Pf are a necessary evil just like Hitler, Mussolini, Osama Bin Ladden and Satan. Zanu PF is the first Zimbabwean government after independence so as Zimbabwe we still need time. The good thing about Zanu PF is that it showing all future leaders what not to do. There are practically showing Zimbabwe and the world characteristics of a bad government and everyone is learning from that. If Obama was white I would agree with you. It is the system which is screwed up.

      1. obama had a white mother my brother get your facts right however zanu chiowororo.mhuri yezimbabwe yayaura

  5. An allocation of 10 million for productive people? Robert uses 20 million in 1 rally?

  6. Chombo says he will arrest anybody who spread fuel qs and shortages but who need pictures when the streets and the shops are really showing what is on the ground.

  7. now that you cant do anything about it sir resign.

  8. What else could you expect from a tortoise on a fencepost?

  9. A regime powered and propped up by fear never delivers the goods ultimately. Vanhu vakaedza kuramba this regime but it clung onto power. It has failed to galvanize people because they know they are like hostages to an inept and corrupt regime. The results are there for all to see! How do you expect people to support a regime they know they cannot remove it even by constitutional means?

  10. zanu pf is clueless and lets register to vote and vote satanic Zanu pf out of power.

  11. The Governor is correct in pointing out that there is serious fiscal indiscipline which militates on every effort the central bank might be doing to ameliorate the dire situation. However, I also blame the current governor, the immediate past governor and any future governor in allowing this serious indiscipline. Governor Gono took a central role in conducting quasi-fiscal operations resulting in over $1 billion fiscal hole. Governor Mangudya has created close to $5 billion fiscal hole through the issuance of TBs to fund unjustified and often unbudgeted government expenditure. For example, when HE excellence requested $10 million for UNGA, the governor was supposed to invoke his constitutional prerogative and demand financial justification for such an expenditure. He should have demanded the reduction of delegates to manageable levels and approve only $500 000.00 saving a whopping $9.5 million. Again when the Honourable VP proudly told the nation that government is buying maize from farmers at $390.00 per metric tonne and offloads the same to millers at $250 then the governor was supposed to protest forcefully highlighting that such economics will cause fiscal problems in the not distant future. So Mangudya should refuse flatly to be involved, used or participate in any financial schemes which do not make economic or financial sense, for according to the powers bestowed to him by both the constitution and parliament of Zimbabwe, it would be within his rights to do so, with no consequences whatsoever, as he would have conducted his duties with utmost probity and would have Zimbabweans firmly on his back.

  12. Nhai Nehanda Nyakasikana………………………………………………………………

  13. eish why can’t these gays call upon Nikuvu to help them smugle the economy into pre election post?otherwise all of them should resign,with immediate effect nxaaa

  14. vakapiwa yambiro nemumwe muporofita rimwe gore kuti zvichadai vakaramba.
    vakapiwa dvd rekuchaenda nyika, uye zvavanofanira kuita vakaramba, vachiti nyika inotongwa nema politicians.
    #zvino honai honai………

  15. kkkk Absolutely Brilliant Heading

  16. There is no diesel in town, pse Ambuya Rotina this is your chance to make miracles happen.

  17. Wezhira PaMasvingo

    Ini hangu zii semunhu mukunru. Tichaona kunowira tsvimbo nedobwe

  18. You can’t rig the economy madofo ezanu pf

  19. Idiot governor. Tortoise on a fence for sure. Where does Zanu Pf -Mugabe- get these people. The whole gvt is a bunch of tortoises on a fence. ” Birds of the same……………..together!

  20. benzi rakayambutsa rwizi,ramhiri kwerwizi kwakutuka akariyambutsa richikanganwa kuti richada kudzoka.hapo pakuda kudzoka,muyambutsi haachadi.Hee GNU haisi kushanda toda ichipera,chiitaika zvinoshanda zvacho-ka?

  21. All i want to say is ziva pekuisa vote yako come elections

  22. Mangudya can do a simple thing. Resign with dignity. The problem is Mugabe knows no budget, very soon he is coming to demand millions to go to Singapore for treatment that he could get in South Africa and take 50 people with him. And Mangudya just watches that? Resign.

  23. Why double standards mr mangudya yesterday you were saying I only have foreign currency to buy fuel medicine and electricity only to be shocked hearing you today. Saying. U have enough forex. Plus tell. Us the correct position. I think the economy. Has. Collapsed

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