Compromise governor for RBZ?

A STALEMATE has apparently occurred over the selection of a substantive Reserve Bank of Zimbabwe (RBZ) governor, with sources saying there is no clear favourite for the job. Although Finance Minister Patrick Chinamasa recently said there was nothing unusual about the delay, the Financial Gazette understands that consultations on the matter have been bogged down by ZANU-PF’s factional fights, resulting in the current stalemate.

“We are looking for a (substantive) governor and we will tell you as soon as we find one,” remarked Chinamasa after being contacted for comment last week. In terms of section 14 of the RBZ Act, a governor is appointed by the President after consultation with the Minister of Finance and Economic Development and must be a person who has “competence and experience relating to banking, finance and economics”.

In other words, while the decision is the President’s; he must consult the Minister of Finance and consider what the Minister says, but he is not obliged to follow the Minister’s recommendation. Moreover, the Constitution states that in making appointments the President may act without advice from the Cabinet.  Section 110 (2)(d) and (6) of the Constitution allows the President to make this appointment, and other statutory appointments generally, without advice from the Cabinet. While section 317 of the Constitution provides for the existence of the RBZ and states its main objectives, it leaves the method of appointing the governor to be covered by the RBZ Act.

In the meantime, the term of the acting governor, Charity Dhliwayo, who was supposed to act only for three months before handing over to another deputy governor Kupukile Mlambo, to act, has been extended until further notice. Dhliwayo was made acting RBZ governor for an initial three months after which Mlambo was to take-over in an acting capacity. The fact that Mlambo has missed his turn to act pushes him out of the race to succeed Gideon Gono whose term ended in November last year.

Mlambo joined the RBZ at the recommendation of former finance minister Tendai Biti. There is therefore a perception in ZANU-PF circles that he could be a proxy of Biti and the Movement for Democratic Change, something which has undermined his chances of ascending to the top position. The ruling party tends to appoint people to boards and management of parastatals based on their closeness to the party.

Highly-placed sources said failure to find a suitable replacement for Gono could force President Robert Mugabe to settle on Dhliwayo, as a compromise candidate. Such an eventuality would see Dhliwayo making history by becoming the first woman to head the apex bank. Several names have been bandied around for the position. These include Sam Malaba, the Agribank chief executive officer; Nyasha Makuvise, the former CBZ Holdings chief executive officer and John Mangudya, the current CBZ Holdings chief executive.

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