Friday, 16 December 2016

RBZ Governor blinked and in two weeks the $200 million in bond notes was gone!

Word on the street is RBZ Governor Dr John Mangudya is already talking of scrapping the 5% export incentive, the main reason for introducing the bond notes in the first place, because he is running out of bond notes. He has been dishing them out hand over fist not to exporters but conman! What happened, you might well ask? Child’s play really, is the simple and honest answer!

At the heart of Zimbabwe’s economic crisis, as far as the RBZ is concerned, is one thing; the country’s economic decline which has meant the nation is getting poorer and poorer and because our declining production has meant we exported less and imported more. Imports are paid in foreign currency and if you import more than you export you will end with a net flow out of foreign currency which is what we have in Zimbabwe.

Governor Mungudya’s proposal was to reward exporters or anyone bringing into the country the much needed foreign currency by paying the a 5% bonus payable in the bond notes which can only be used in Zimbabwe. Sadly, the Governor did not think through how this would work out!

a)     The RBZ Governor blinked; conman sends his principle amount, P, in foreign currency which is already in Zimbabwe out of the country, to SA say. It is a crime to externalize any foreign currency but conman do it all the time!

b)     From SA the conman’s partner in crime sends the foreign currency through the RBZ approved dealers who dutiful pays the conman in Zimbabwe the foreign currency plus 5% in bond notes. Conman convert the bond notes to foreign currency.

c)     The RBZ Governor blinks again: conman will transfer the foreign currency from Bank A to Bank B; just to muddy the waters should the authorities want to investigate.

d)     The RBZ Governor blinks again: conman transfer the foreign currency into his pocket ready for step a) above. Repeat the cycle ten times. If you have repeated the cycle ten times, go to e)

e)     The RBZ Governor blinks one last time: conman send all his foreign currency, a tidy sum of P plus 50%P, out of Zimbabwe before the regime converts it all to bond notes!

When RBZ introduced the bond notes on 28 November 2016 the nation was assured only $200 million worth will be printed. If the bond notes were paid out as the 5% bonus as promised then the country should have $4 billion worth of foreign currency when the last bond notes are paid out.

Whilst the RBZ Governor is seeing all the foreign currency coming into to the country and drum his chest like a silver back gorilla thinking he has solved the country’s foreign currency shortage problems; he will soon find the money he thought was there is not there.

The RBZ should just scrap the 5% export incentive as unworkable.

The conmen are setting up their black-market stalls ready to start trading the bond notes for foreign currency; they will use their contacts to get the foreign currency at the official 1:1 exchange rate and sell to the ordinary people at the exorbitant black-market exchange rates.

The introduction of the bond notes will not solve anything for the ordinary person; at best, the economic meltdown will continue at its present pace until the underlying economic problems of mismanagement and corruption are addressed. At worst the bond notes will make life hell for the ordinary people by adding the hyper inflation worries to all the economic meltdown problems.

The introduction of the bond notes has been heaven send for the conman. In two weeks, flat since Dr Mangudya introduced the bond notes and already the $200 million in foreign currency has already been stolen under his own nose. He blinked a few times and it was gone! In a country where corruption and mismanagement are the order of the day, there are very rich pickings to be had by those who live in the shadows!

7 comments:

Nomusa Garikai said...

The Zimbabwe Republic Police has been called to speedily investigate Zanu PF on source on funds used to procure over 350 top-of-the-range vehicles for the 2018 elections campaign.

About $10 million is said to have been used to buy the vehicles.

Only someone from the opposition would come up with a stupid suggestion like that; where would that Police Office begin his investigation? We need to address this problem of Zanu PF looting billions of dollars to bankroll its vote rigging schemes in a more reality and serious manner than all these good for nothing grandstanding posturing!

Nomusa Garikai said...

“Such peace and unity should not only exist in the party, but should in fact embrace everyone in Zimbabwe. In the absence of peace and unity, economic recovery will remain an unattainable dream, a pie in the sky,” he said.

“Yet in the course of last year, we witnessed a number of desperate actions by our detractors as they, in vain, tried to foment unrest in the country. The opposition forces tried to create mayhem through wildcat demonstrations which started at the introduction of Statutory Instrument (SI) 64,” Mugabe said, adding that “they later moved to strange demands for electoral reforms, and then the introduction of bond notes”.

President Mugabe, like so many other murderous tyrant like Hitler and Saddam Hussein, continues to ignore the reality and pretend his glorious world is happy, peaceful and prosperous. Unemployment has soared to 90% plus and millions are now living in abject poverty whilst corruption has reach unsustainable levels of $15 billions looted from a nation with a GDP of $14 billion. He continues to live in unparalleled luxury whilst millions of Zimbabweans starve.

If Mugabe is not stopped then he will drag this nation even deeper into the abyss.

Anyone who thinks that Mugabe will ever want to give up power are naïve. Given a chance to rig the elections, he will rig the elections. The only way to stop Zanu PF imposing itself on a tired nation desperate for real change is to by stopping messing around and have the democratic reforms implemented.

Zimbabwe Light said...

Dr John Mangudya is supposed to be a professional surrounded by professionals to advise him so how is it possible that the Governor of the country's highest bank could make such a grade one cock-up? And yet they did! The level of incompetence at every layer in Zimbabwe society is shocking and yet. looking at the chaos in the country, it matches!

Whatever these conman have defrauded the nation, they will all get away with it Scott free! Dr Mangudya and all his highly paid advisers will not be disciplined much less fired. The $200 million will all be added to the national debt and we move on. No wander we are in a political and economic mess and, which is more, why we will never get out of the mess!

Zimbabwe Light said...

Jean, whatever else Linda has done wrong we must be clear of one thing when she went to jail fighting for a just and democratic Zimbabwe she was NOT neglecting her children. Have all of us who have done nothing to stop the madness that has resulted in unemployment soaring to 90%, left 76% of the population living in abject poverty, over 30 000 murdered in cold blood, etc. looked after our children?

Standing up to the regime should not be left to those with no children because they will do nothing claiming they have no future. Whilst those like you Jean with children will do nothing under the pretext they are looking after their children. The truth is standing up to this murderous tyrannical regime is very risky business and we must salute all those who do so whoever they are.

I do not agree with Linda that the people of Matebeleland are cowards, on the contrary I thing they have done a much better job at standing up to this tyrannical Mugabe dictatorship than the people from other regions of Zimbabwe. I also believe Linda herself have been very brave to standup to the regime.

Patrick Guramatunhu said...

The bond notes, properly managed, would have made a positive contribution to Zimbabwe's cash crunch problems. The people did not want the bond notes because they simply did not trust this government to manage them without reverting to its old ways that led to the Z$'s 500 billion percent hyper-inflation. So, within two weeks of the bond notes being introduced they are already causing a serious problem!

The only way Zimbabwe is going to end the economic mess we are in is by having free, fair and credible elections – something that is looking less and less likely given the opposition is now settled at contesting the 2018 elections with no reform.

Zimbabwe Light said...

This must be one of the easiest and "legal" ways to rob the bank; no stick up, no gun fight, no speedy car chase with the police and no worrying about being arrested. In a healthy and functional democracy RBZ Governor would have been fired on the spot and thorough investigation carried out to recover the looted cash. Zimbabwe is not a healthy and functional democracy and so theDr Mangudya will keep his job and the looting will continue!

Zimbabwe Light said...

There are somethings in this world that even a seasoned dictator like Mugabe cannot resist or deny forever; for him two now stand out like a flaming finger, age and failure.

Mugabe is 92 years old sick and frail, he can hardly walk and even talk. He has tried to justify his stay in power on the ground that he is "as fit as a fiddle!" Well let us just say the fiddle has all the signs rot and decay, the strings are broken and nothing can be done to hide the stench of rat urine coming from within.

Mugabe has tried to justify his continued stay in power on the ground that regime change will "reverse all the economic gains" made since he got into power in 1980. The truth is the country is in economic ruins; 36 years of gross mismanagement and rampant corruption have destroyed the country's once vibrant economy unemployment has soared to 90% and millions now live in abject poverty.

Mugabe seized all the white owned farms and gave them to his ever demanding but wasteful cronies turning the country from one that had prided itself for producing enough food to feed all its people well with enough left over to feed millions in the region. Agricultural production has since collapsed, the nation is starving in what is literally the Garden of Eden - a testimonial is human failure!

Zanu PF is imploding right now because the economic meltdown has left the dictator with little wealth to distribute amongst his corrupt, greedy and wasteful followers. The party members are now fighting for the scraps like starving hyenas fighting over the bones.

It doesn't matter how hard Mugabe tries to portray his long reign as a success the truth of his corrupt and tyrannical rule is there for all to see.

Mugabe is nothing but a power hungry incompetent, corrupt and murderous tyrant. His rule should have never lasted more than a few years were it not for the tragic misfortune that he had some of the most incompetent and corrupt political opponents both within his own party and outside!