BusinessExecutivesZimbabwe Central Bank boss in financial dilemma

Fri,24Nov2017

Posted on Tuesday, 25 September 2012 10:49

Zimbabwe Central Bank boss in financial dilemma

Gideon Gonon, Zimbabwe's Central Bank governor/Photo©ReutersA Zimbabwe High Court judge has ordered central bank governor Gideon Gono to pay a local bank $1.2 million after he failed to repay a loan he secured for his chicken project in 2010.

Gono's Lunar Chickens borrowed the money Renaissance Merchant Bank (RMB) and has been struggling to settle the loan until he was dragged to court.

 

The Reserve Bank of Zimbabwe (RBZ) put the bank under curatorship early this year and it has since been rebranded to Capital Bank.

Gono who in the past has brushed aside accusations that he contributed to the country's banking crisis by failing to repay loans to local banks was cited in court papers as a co-principal debtor.

High Court judge Justice Chinembiri Bhunu ordered the seizure six immovable properties the RBZ chief submitted as surety.



According to court papers, Gono, who is President Robert Mugabe's personal banker, was granted a loan in December 2010 which was meant to be settled by May 31, 2011.



But he failed to settle the loan and the outstanding balance was pegged at $1 274 167, 85 as at April 2012.



With Gono and his firm refusing to settle the loan, RMB sought court intervention and filed summons at the High Court on June 1 this year.



Several government officials and ministers have in the past been dragged to the courts after failing to repay bank loans.



Most of them have lost their businesses.



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