The RBZ skimmed off some US$500 million a year for several years feeding the proceeds into luxury cars, agricultural equipment and inputs that were then handed out like candy to a privileged elite When Zimbabwe became independent under a Zanu-led government in 1980, there were few indications of real corruption in government.A small but strong civil service ran the affairs of state with exemplary commitment. Previous leaders had not generally retired with evidence of having benefited from their positions. Up to 1990, this situation changed gradually but was hardly noticeable. After 1990 the situation deteriorated rapidly and since 2000 corruption has become endemic in all spheres of life. Every Zimbabwean experiences corruption, every day. Police at road blocks, officials in state offices, customs people at border posts – the list is endless.
But these forms of corruption are petty in nature. Much more serious are the various schemes and scams that now characterise most elements of everyday life.
The list of such activities is long and controversial. The national oil importing agency, charged with oil procurement and distribution – moving anything up to five million litres of fuel a day – has been a major source of corruption. Literally hundreds of millions of dollars have been siphoned off their accounts over the past 20 years.
Virtually every parastatal has suffered the same fate. NSSA, the railways, Air Zimbabwe, the National Road Fund, the Manpower Development Fund, the Reserve Bank have all been looted and exploited in order to feed resources to the elite. These fatcats are drawn mainly from the ruling party, but include senior armed forces personnel and civil servants.
No country, no matter how hard working and resourceful, can survive when the state steals a third of all they produce on top of 30 per cent taxation
In recent years the Reserve Bank has become, as it has in many other African States, the major source of patronage and theft. In this case, the Bank simply printed money whenever it was required and at the same time skimmed off from export earnings anything up to 40 per cent in hard currency.
Exporters treated this as a form of taxation as they were then paid out in local currency which was virtually worthless. Or, in recent times, in fuel coupons at half their value. In this way the RBZ skimmed off some US$500 million a year for several years feeding the proceeds into luxury cars, agricultural equipment and inputs that were then handed out like candy to a privileged elite.
Large quantities of gold and other reserves have simply disappeared. Rumours abound of flights to Malaysia taking tonnes of gold and diamonds. Gideon Gono, governor of the bank, is strenuously resisting any suggestion of an audit. When this subject was raised in Cabinet it caused a uproar amongst Zanu (PF) ministers.
How much has been stolen from the nation in this way? Estimates vary, but it is not less than US$1,5 billion in 2008 and this represented a third of the national official GDP. It is no wonder that Zimbabweans have become poorer in the past decade. No country, no matter how hard working and resourceful, can survive when the state steals a third of all they produce on top of 30 per cent taxation.
Post published in: Agriculture