Trouble in the Cockpit: ED Fires Guvamatanga
Mnangagwa relieved finance secretary George Guvamatanga of his duties last week, but later reversed his decision after Guvamatanga apologized and chief cabinet secretary Martin Rushwaya made further appeals.
Guvamatanga, 53, who had been in the role since 2018, was notified on June 21 of his termination due to concerns that he was undermining the country’s new currency and favoring ministries led by his acquaintances.
Mnangagwa was furious that the finance ministry, under Mthuli Ncube, had not enacted statutory instruments as directed by the new Reserve Bank governor John Mushayavanhu, which required companies to pay 50 percent of their quarterly taxes in Zimbabwe Gold (ZiG) and the remaining half in foreign currency, starting this month.
In a speech in Masvingo last month, Mushayavanhu stated that companies would begin opting for ZiG from June due to this decision.
Trouble in the Cockpit: ED Fires Guvamatanga
Individuals and companies who earn income (excluding employee income) need to pay taxes in advance on a quarterly basis. These payments, called Quarterly Payment Dates (QPDs), are due on March 25, June 25, September 25 and December 20.
Mushayavanhu’s threats did not come to pass because no legal instruments were issued to bring into effect the new tax payment requirements, and the governor pointed an accusing finger at the finance ministry, the source said.
Mushayavanhu and Guvamatanga don’t like each other too much, and the governor felt he was being undermined. Mnangagwa decided Guvamatanga had to go and Rushwaya had been instructed to make the announcement.
ED Sacks Minister Amid Escalating Factionalism
One of the key changes, it has been established, was the removal of Rosemary Tsitsi Choruma as Public Service Commission secretary, allegedly for “disrespect” after she referred to Mnangagwa as “Mr President” instead of “Your Excellency”. She was posted to the unglamorous position of commissioner in the Zimbabwe Land Commission.
