Attached RBZ property set to be auctioned tomorrow

RESERVE Bank of Zimbabwe (RBZ) property has been attached by the Deputy Sheriff after the central bank failed to pay US$2 million to Farmtec Spares and Implements will be auctioned tomorrow.

A notice published in the state daily, the Herald, shows that the Deputy Sheriff has attached 35 vehicles, three fuel tanks on wheels, two air compressors and a diesel generator from the central bank.

A 38 seater Hino coach, 60 seater UD bus, and two Mazda Swaraj minibuses, a  Nissan, Toyota and Cam double and single cabs are among some of the vehicles that will go under the hammer.

According to the notice, the auction will be held at Ruby Auctions.

The RBZ failed to pay US$2,1 million for tractors it bought under its farm mechanisation programme in 2008.

The auction comes after High Court judge, Justice Tedias Karwi, granted an order last year compelling the central bank to pay US$2,1 million to Farmtec Spares and Implements.

Lawyer Davison Kanokanga of Kanokanga & Associates approached the High Court on behalf of Farmtec and was granted the order after the RBZ had admitted that it owed the company money for the tractors supplied.

According to court papers, the RBZ placed an order of 150 tractors in 2008 with Farmtec through the Farm Mechanisation and the Agricultural Support Enhancement Facility.

In October 2008, Farmtec delivered 60 tractors valued at US$2,1million and the remaining 90 were to be delivered upon the RBZ’s payment of the initial delivery.

Despite numerous calls of demand, the central bank “failed, or neglected to pay the plaintiff the US$2 100 011 due”, a development that forced Farmtec to approach the court for relief.

The sheriff was directed to seize the bank’s fixed assets should he fail to find movable goods.

The writ of execution listed five fixed RBZ assets in Kariba, Mutare and Harare.

The assets include stand number 548 in Kariba measuring 2 927 square metres registered under the deed of transfer number 11464/89, a stand in Harare’s Greendale measuring 1,6 hectares and registered under deed of transfer number 5017/83, and another stand number 17613 of Harare Township registered under deed of transfer number 2486/98.

Other properties are stand number 82 Umtali (Mutare) measuring 1 487 square meters and registered as deed number 10541/97 and a plot number 138 of Rodel Township measuring 1,9 hectares registered under deed number 1449/94.

It is not clear if Farmtec has attached these properties yet.

The central bank ran many quasi-fiscal operations such as printing money.

The bank introduced Productive Sector Facility, Basic Commodity Supply Side Intervention, Local Authorities Reorientation Programme, the Farm Mechanisation Programme and the Agricultural Support Enhancement Facility all funded by the RBZ printing press.

But the dollarisation of the economy last year has meant that RBZ could no longer print money. Since then the RBZ has been surviving on a tight fiscal budget.

Last week the bank, according to sources, auctioned off 281 tonnes of compound D fertiliser, 4050 gallons of Antichoke herbicides, 464 gallons of Alachhlor herbicides, 82 gallons of paraquart herbicides, 459 boxes slash insecticide, 871 boxes ES35 insecticide, 55 boxes retrozin 480 EC insecticides among other agro-chemicals.

It is not clear how much the RBZ raised from the auction.

The RBZ blames the treasury for under-funding the bank. Finance minister Tendai Biti has refused to adequately fund the bank arguing that there was need for reforms at the bank and that there was need to clip the governor’s wings.

 

Chris Muronzi

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