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Tug of war over Zim money

Oct 05 2009 22:00

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Harare, Zimbabwe - Zimbabwe's Reserve Bank governor said Monday the country's finance minister is delaying the distribution of $800m in donor funds, hampering the nation's economic recovery.

Gideon Gono told bankers that former opposition leader Tendai Biti's actions were "unjustified and unreasonable." The money should go to the manufacturing and production sectors, he said.

Battles for the control over the treasury have hamstrung the unity government formed in February between President Robert Mugabe and Prime Minister Morgan Tsvangirai.

Gono is a top Mugabe loyalist whose monetary policy is blamed for the country's downward spiral.

Biti denied the charges and told The Associated Press that funds need to be used to get social services such as hospitals and schools running again.

- AP

 
 
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