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Vol 49 No 15

Published 18th July 2008


Zimbabwe

ZANU-PF stashes the cash

As they drag out negotiations with the opposition, the ruling party's acolytes are hiding millions of US dollars in offshore accounts

Leading members of President Robert Mugabe's regime and their business allies are transferring tens of millions of US dollars out of Zimbabwe to safe havens to avoid the threat of tightening sanctions and the possibility of financial scrutiny by a power-sharing government. Almost all of these transactions are illegal under Zimbabwe's foreign exchange laws and Africa Confidential has seen bank documents that the Reserve Bank of Zimbabwe (RBZ) Governor Gideon Gono has violated the monetary rules he claims to enforce. This capital flight drives inflation ­ now officially reckoned at 2.2 million per cent ­ and is set to overtake the previous world inflation champions Brazil, Argentina and Peru within the next three months.

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