Outcry Over RBZ’s Vehicle Offer

The Standard
By NDAMU SANDU
5 April 2009

MDC-T MPs will soon convene a caucus to consider an offer of cars from the central bank, amid warnings from political parties that such a move would compromise the independence of Parliament.

On Thursday Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono played “Father Christmas” by offering the central bank’s cars to legislators for use in their day-to-day work.

Gono said the cars would be returned after the Minister of Finance, Tendai Biti, found money to buy cars for legislators.

MDC-T Chief Whip, Innocent Gonese said the party was still to “meet as a caucus to consider the proposal to have cars from RBZ”.

Gonese, however, said some legislators were facing difficulties in travelling to their constituencies as they do not have personal cars and the allowances they receive are inadequate to buy vehicles.

MPs, like all civil servants, get an allowance of US$100. Gonese said legislators had not been receiving their transport allowances last year. In the period from August to November, he said, they received allowances in Zimbabwean dollars – inadequate to meet their daily needs.

Travel allowances were also paid in local currency at US$0.30-US$0.35 a kilometre, calculated at the official bank rate. They did not get sitting allowances, Gonese said.

But Senator David Coltart, the Minister of Education, Sports, Arts and Culture and a senior member in the MDC-M warned yesterday MPs should not accept the cars as such a move would compromise the independence of legislators.

“I believe it will compromise the independence of legislators,” Coltart, a lawyer, said. “I don’t believe the Reserve Bank should be involved in handing out vehicles to anyone. The Parliamentary vehicle scheme is the appropriate way.

“Unfortunately this is another example of quasi-fiscal expenditure which we are trying to run away from. We should not encourage that.”

Told that the vehicles had been bought for other purposes, Coltart said the cars should have been sold and the money used to supplement scarce resources in our budget.

Coltart said he would not accept the RBZ offer.

“No, I will not accept a vehicle from the Reserve Bank. It is a time of financial constraints and we have to tighten our belts,” he said.

Coltart declined a ministerial Mercedes Benz vehicle and opted for a Nissan 4×4 saying his job requires visiting rural areas which would not be compatible with the Benz.

Retired Major Kudzai Mbudzi, head of National Mobilisation in the Mavambo formation accused the central bank of engaging in “quasi-political activities” which would compromise the independence of Parliament.

“These are the quasi-political activities of the Reserve Bank. These are the same cars that were given to soldiers to campaign for Zanu PF,” Mbudzi said.

Mbudzi said RBZ was trying to curry favours with legislators. On Thursday Gono said the offer of cars was not meant to bribe MPs but was a realisation that legislators needed transport to move around their constituencies.

He boasted that RBZ interventions had resulted in some legislators retaining their constituencies.
The majority of the legislators murmured disapprovals as Gono made his presentation only to applaud when Gono dangled the cars.

Mbudzi said the fact that some legislators applauded the offer of cars showed that they “are into power to remove their poverty”.

Political analysts questioned Gono’s motive, adding that the move would weaken Parliament’s watchdog role.

Ironically, Parliament on Wednesday is supposed to debate the alleged unauthorised use of Africa University foreign currency by the central bank, resulting in the stalling of projects at the university.
“It compromises the independence, autonomy and capacity of Parliament to act as watchdog of RBZ and its structures,” said Professor Eldred Masunungure, the director of the Mass Public Opinion Institute.

“This is all part of Zanu PF way of doing things anchored on patronage-driven behaviour,” Masunungure said.

Masunungure said Gono was marginalised in the past few weeks by the ministry of Finance and he was trying to carve some space for himself.

He said a number of legislators were suffering and were susceptible to this incentive.

“MPs have been agitating for these vehicles and with Tendai Biti saying the coffers are empty, Gono is trying to lure the Parliamentarians to his side,” Masunungure said.
“This is a fight back by Gono on the individual level and the Reserve Bank as the institution but this is more to do with the former rather than the latter.”

In his address to legislators on Thursday, Gono said central bank’s interventions had benefited all sectors of the economy but Masunungure disagreed.

“Who in the civil society benefited,” he asked.

Non-Governmental Organisations spent the better part of last year besieging RBZ after the central had raided their foreign currency accounts.

Law expert Dr Lovemore Madhuku said Gono was trying to legitimise his quasi-fiscal operations by dishing out cars to legislators. He was quick to add that the issue was not about the central bank governor but the principals.

“Why have principals kept quiet about the outstanding issues? Why has the issue of Gono not been resolved? Why is Gono confident of coming out of his hiding,” Madhuku asked.

Gono’s position together with that of Attorney-General Johannes Tomana was the subject for discussion when the three principals – President Robert Mugabe, Prime Minister Morgan Tsvangirai and Deputy Prime Minister Arthur Mutambara – joined forces to form an inclusive government in February.
Gono told legislators that his actions were above board and in line with the Reserve Bank of Zimbabwe Act.