IMAGINE if bank XYZ Ltd were to lend a client an amount of $300 billion in March and this balloons to over a trillion dollars by September.
The supervision depart
ment of the Reserve Bank of Zimbabwe (RBZ) is called in for an inspection and finds, to its horror, that the advance was not supported by proper documentation.
I am sure that bank XYZ Ltd would be put under curatorship and the key management fired with immediate effect.
The board members would not be allowed to hold any other directorships in any other financial institution.
The RBZ advanced a substantial amount to Trust Bank Ltd which has ballooned to over a trillion dollars. Which official who is guilty of gross dereliction of duty is going to be fired?
This amount, which is being funded by taxpayers, is surely irrecoverable.
I think the senior management of RBZ, including the governor Gideon Gono, should be dismissed for gross mismanagement and lack of adherence to minimum corporate governance requirements.
When ZBS was bailed out about five or six years ago, some official in the central bank overlooked to obtain signed transfer forms from the Class “A” shareholders. The Class “A” shares were redeemed and the shareholders paid out but the shares were never transferred into the RBZ.
This is the reason why Francis Nhema was able to claim back ZBS from the RBZ.
Who is responsible for this gross mismanagement? Have any heads rolled? If this had been done by any bank, senior management would have been dismissed. Governor, what is good for the goose is good for the gander.
Good for the goose,