Former Reserve Bank Governor, Gideon Gono says beneficiaries of the Farm Mechanisation Programme were not required to pay back anything as...
Former Reserve Bank Governor, Gideon Gono says
beneficiaries of the Farm Mechanisation Programme were not required to pay back
anything as the programme was not a loan scheme.
“I come as the man who was in charge of the RBZ during the
most trying period in our history and as a man who was at the centre of trying
to keep the economy going.
“I can state categorically that Dr Magaisa is offside and
that no beneficiary of the farm mechanisation programme ever refused to pay for
the equipment that they got and neither were they asked to pay.”
Dr Gono said in a statement this position was arrived at after consultations
with Government which took the decision and wrote to him that equipment given
to farmers during that most trying period should not be regarded as a loan to
anyone and, therefore, no payment was to be made by the beneficiaries of the
programme, who included A2 and A1 farmers.
He said the programme was undertaken in terms of the
standing provisions of the RBZ Act at the time, which compelled the Apex Bank
to carry out quasi-fiscal activities at the request of Government.
“The RBZ undertook this quasi-fiscal activity at the behest
of Government and in the national interest.
“This was done in accordance with the then Section 8 of the
RBZ Act Chapter (22:15) which authorised State to direct the Central Bank to
carry out transactions in such a manner as the State may require and if so
requested by the State, the Bank was to make the necessary arrangements to this
end.”
“Both rural and non-rural farmers benefited from the
takeover of the loans by the State but I shall elaborate. There was no scandal
here, no corruption and no beneficiary refused to pay. The State did not demand
payment and that was above board.”
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