The #Zimbabwe Bond Notes Fraud Explained

Laughing all the way to the bank:

Dear Reserve Bank Governor John Magudya,

How many bond notes have you released onto the market already? Please be honest with us Governor. When we take the serial numbers on each note we find that they start with 2 letters and end with a 7 digit number. We find that in the AA series there are therefore 20 million bond dollars in 2 dollar bond notes. In the 5 bond dollar notes there are 50 million bond dollars in the AA series.

So far there appear to have been 8 sets of the 2 dollar bond note released – and 4 sets of the 5 dollar bond note released. After the AA series there is the AB series and then the AC series and so on. That makes 160 million dollars of a potential 520 million dollars in the 2 denomination; and 200 million dollars of the potential 1.3 billion dollars in the 5 dollar denomination. Some simple maths leads us as the general public to understand that there are therefore 360 million dollars of a potential of 1.82 billion dollars already released. The fact that the AZ range has been released already leads us to suppose that the missing sets will be released from the RBZ vaults into the system as time goes by.

If our maths is correct, it is clear we have already got nearly double the 200 million that you told us that Afrexim had guaranteed. Have you broken trust Governor?

Unless I have missed something, you have yet to produce the agreement with Afrexim that you were asked by lawyers and others to produce about 9 months ago. It is in the public interest for you do so. Many of us do not believe it exists. Many people believe you lied to the public. Is this the case Governor?

Your undertaking at the launch of the Bond notes was that you would resign if the introduction of the Bond notes failed to resuscitate the economy and stimulate production. Months down the line the US dollar has all but disappeared, bank queues are longer than ever and the despondency of the people increasing by the day. The economy is in dire staits and companies are liquidating. Why have you not kept your word?

You also said that you would set up an independent board to ensure that your printing press didn’t go into overdrive as it did with Governor Gono. The fact that you have yet to set this board up is of great concern. We are very sceptical after all our bank accounts and savings got looted last time. Can we trust you Governor?

I understand that Government has borrowed a few billion dollars from you at the Reserve Bank. If this is correct, where did those few billion come from? I do not understand “phantom money” – created as though with alchemy from out of the air. No doubt you will pass this huge debt onto us, the people, just as Governor Gono did. Where did your billions come from Governor?

I see that GMB is paying 390 dollars a ton for maize. This is the highest maize price in the world. Where has the GMB got such money from to pay for the maize? Across the Limpopo and the Zambezi the maize price is approximately a third of that at 120 USD per ton. I see that maize is being imported. It doesn’t take a rocket scientist to understand that opportunists are managing to import maize and nearly tripling their money on each load. Others, if they have hard USD cash, are able to buy maize from the GMB at 120 USD per ton. I wonder if some chefs are buying maize for 120 USD from the GMB, driving their trucks out and then turning their trucks around and selling it for 390 USD back in the GMB? They then convert the 390 back into cash at a (current) 30 percent premium and buy more maize to sell back again?

What is to stop a chef with 3600 dollars of cash buying a 30 ton load of maize from GMB, turning his truck around and then selling that maize back to GMB for 11,700 dollars? He then converts it to cash and it becomes 8,190 dollars. He turns his trucks around and goes back to GMB and buys 68.25 tons of maize. He drives out and when he turns his trucks around again the GMB will buy his maize back from him for 26,617 dollars. He then buys 18,632 of cash and buys 155.26 tons of maize from the GMB. He turns his truck around and then sells this maize back to the GMB for 60,554 dollars. He once again converts it into cash and it becomes 42,388 dollars. This can buy him 352.23 tons of maize from the GMB. He turns his truck around and sells that maize for 137,761 USD to the GMB… and so it goes on till the bubble pops like it did under Governor Gono. The chef has himself produced nothing. He has fed nobody. But he is well on the way to making thirty times his money by turning his truck around and buying and selling maize 5 times from the GMB! Where did GMB get this phantom money Mr Governor?

We would appreciate your response Governor.

Yours sincerely,

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