Sandra Mandizvidza
4 May 2009
THE ongoing trial of a former Reserve Bank of Zimbabwe (RBZ) senior official Joseph Banda has thrown the spotlight on the chaotic and irregular manner affairs of the central bank have been run under the watch of governor, Gideon Gono.
Banda, a former chief inspector in the Financial Intelligence Inspectorate and Evaluate Division, is being accused of fraudulently acquiring four generators, a motorbike, 15 knapsacks, a seed drill and five chains, all valued at US$35 100 from the central bank.
Banda insists he had the approval of Gono in getting the equipment.
He is also facing other charges of impersonating a police officer by allegedly claiming to be a retired Senior Assistant Commissioner in the Zimbabwe Republic Police (ZRP), a security officer with the RBZ as well as a war veteran.
Apart from being a criminal trial, Banda's case is shedding light on irregularities in the management of RBZ affairs.
It also shows that Gono, who sought to rid the financial sector of malpractices, presided over an institution that is riddled with serious internal governance and accounting weaknesses which allowed others a free reign. The case has attracted the interest of the Anti-Corruption Commission.
Evidence provided in the court for the past week by RBZ employ- ees has also shown how the central bank hired someone with a shady past to head the Financial Intelligence Inspectorate.
Defence lawyers say there was no attempt to check on the dirty past of Banda, who was attached to the governor's office.
If background checks had been conducted, they would have revealed that Banda, who has a previous conviction of fraud and theft, was not only a criminal but brought a false CV to the governor's office.
Banda is also facing charges of misrepresenting himself as a retired Senior Assistant Commissioner with the ZRP. The court denied him bail on the basis of his previous conviction.
Evidence led in court showed RBZ management systems were so weak that even after Banda was retrenched in 2007, he remained on the central bank payroll, enjoying the perks reserved for senior banking staff.
He did more than just draw a salary: he took a role in the distribution of farm equipment under the controversial farm mechanization programme without following laid down procedures, and also acquired for himself, farming implements fraudulently.
According to RBZ officials, Banda, who denies the charges, succeeded in his endeavours because there were no written guidelines on distribution of the farming equipment. An RBZ Senior Administrator in the Mechanisation Department, Mathias Makwengwe testified in court that Banda acquired the farming implements with the assistance of the department's former head, Ringo Star Masakwa, who is currently on the run for alleged theft of farm implements.
Allan Mandla, a data capture officer at the RBZ said: "Masakwa told us that Banda was going to be our boss. These two were always together and sometimes I would see Banda in places reserved for senior RBZ staff only which means that he had the access cards to go anywhere in the building," he said.
Re-examination by state prosecutor Obi Mabahwana has revealed that a book, which contained records of implements which were distributed by Banda, is also missing. Mandla stunned the court when he admitted the distribution of the farm equipment was sometimes done through word of mouth.
He said they would just fill out the forms on the basis of what Masakwa told them.
"At times we just captured data without seeing an approval letter from the governor. Since Masakwa was our boss we would assume that he had talked with the governor. Sometimes he would just call and say give certain people farming implements," he said.
Mandla told the court that the distribution of RBZ implements was undertaken by RBZ employees, raising questions how Banda, who was no longer an RBZ employee, continued to perform that role.
According to the evidence given by the Human Resources Manager, Mwaita Zengeni, Banda was retrenched in 2007.
"Mr. Joseph Banda was engaged by the Bank from August 2006 and had his contract terminated through retrenchment in August 2007. Since his retrenchment in 2007, the Bank does not have any file showing that Mr. Banda was re-engaged," Zengeni said. Zengeni could not explain why Banda remained on their pay roll. Evidence provided in the court also showed Banda did not go away when he was retrenched: he had access to all the RBZ security cards, was driving RBZ vehicles, used to write internal memos to the governor. Banda's lawyer said Gono would respond to the internal letters.
A letter written by the head of transport on May 7, 2008 stated that Banda be granted access to RBZ fuel supplies set up at provincial ZRP stations nationwide.
A copy of the letter produced in court read: "This letter serves to confirm that the following member of the Banks Staff MR J BANDA driving vehicle registration number ABE2506 is permitted to draw on RBZ fuel supplies set up at Provincial Zimbabwe Republic Police Stations nationwide."
The letter was signed by one F Tamanikwa, RBZ division chief responsible for technical services, transport, bank-held premises and logistics.
The RBZ human Resources manager also admitted it was not normal for an institution like RBZ to write memos on envelopes.
One of the envelopes, an old one written, stamped and signed by Gono's advisor Munyaradzi Kereke to one Ushewokunze of Elite Car Rentals on March 26, 2008 is being produced by defence lawyers to show that Banda had the blessings of the governor when he remained in his office.
On the envelope were the words: "Please allow Mr J. Banda to collect six pick-ups for hire under Ministry of Policy Implementation for the period ending 31\03\08."
Bob Muriro, an assistant commissioner, who also testified, said when he went to RBZ early this year to check on his application of the farming implements, he found Banda had an office and a secretary. His phone number was also in the RBZ internal directory.
Zengeni said he found it unusual because he thought it was not normal for someone who was retrenched to have access to all those benefits.
Gono, who was said to be out of the country last week, is expected among other things to testify tomorrow how a retrenched person remained at the RBZ.
Banda, however, is denying all the charges saying he never unlawfully misrepresented himself as a member of RBZ and that that he had the approval of Gono to acquire and distribute the said farming implements.
He argued that it was Masakwa who issued out the farming implements not him.
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Surprise surprise, Gono caaught with his hands in the cookie jar. All the ZanuPf terrorists are all being caught out. For 29 years they thought they could all get away with it by treating Zimbabwe as their own personal bank account and just screw the once vibrant nation into an abyss of hell and turmoil. The jongwe is coming home to roost and it is about to be roasted.
They're being caught... but, like the dog that finally manages to run down the car he's been chasing, the question is, once you catch them... then what? They still command the loyalty of a battalions of heavily armed thugs, who have murdered entire families for lesser offenses than embarassing their leaders. The entire world already knows that ZANU-PF are monsters carrying out democide against their own country and falsely claiming it's everybody else's fault. What good does it do to catch them in yet another petty crime, and risk the lives of the few people left in Zimbabwe brave enough to search out the truth?
There is no magic number of exposed crimes that will convince an outside force to come in and boot out the once-human, now-beasts that have plunged Zimbabwe into the darkness. The UN has not raised a finger to aid Zimbabwe when Mugabe butchered his loyal opposition to hold on to power in 2008, they will not raise a finger to aid Zimbabwe for any reason.
For better or for worse, Zimbabwe is on its own.
The Anti-Corruption Commission should have started their investigations on Gono then everything would be credible. Anyway who commissioned them, if it was Zanu PF then its waste of time.
This starts to show how the nation's resources were being wasted by RBZ and Gono in particular, while the nation suffered. Why would a central bank start distributing implements? What were these cars being hired for during election period?