More RBZ property under the hammer

Ruby Auctions was scheduled yesterday (Wednesday) to auction 20 945 harrows, 54 planters, 1639 cultivators, 1516 scotch carts, 537 scotch carts boxes, 2 ploughs and 1277 knapsack sprayers. Duly instructed by the Deputy Sheriff of Harare, we shall sell by public auction the assets to the highest bidder at Astra Yard, National Railways of Zimbabwe Bulawayo-Grain siding on Wednesday, said Ruby Auction in a notice in the local paper.

The deputy sheriff executed a writ of attachment for over $1 million the RBZ owes to Seedco. The Bank, which currently has no statutory reserves, failed to raise the cash, and its property was expected to be auctioned off to recover the money. It was the sixth auction of RBZ property in as many months.

Farmtec Spares and Implements and Seed Co have previously auctioned off other RBZ property, including vehicles and buildings, to recover money the central bank governor owed after buying seed and other implements to give to villagers as part of Zanu (PF)’s election campaigns.

Finance Minister Tendai Biti has said government will move to protect the bank from further losses. “Cars and assets are going for a song,” he said. Biti has installed a new board at the central bank in line with legislative reforms ushered in through the enactment of the RBZ Amendment Act, but this has apparently failed to stop the haemorrhage, as the effects of Zanu (PF)’s populist policies threaten to empty the State reserves.

President Robert Mugabe has previously invoked presidential powers to gazette temporary regulations protecting Zimbabwe’s bankrupt central bank from getting more of its property attached by creditors. He converted the central banks $1 billion debt – mainly for fertiliser, seed, tractors and vehicle imports to buy votes in 2008 – into a State liability – so the government is responsible for clearing them.