/ 23 December 2004

Zim newspaper faces cash crisis

The Zimbabwe Independent said on Thursday it is facing a cash crisis after the government froze assets at the newspaper’s bank, which has been a target of a report by the newspaper alleging financial mismanagement.

The independent weekly exposed alleged financial mismanagement at CFX Bank on December 17. Within hours, the Zimbabwe Reserve Bank appointed a curator and froze all transactions.

”CFX were our principal bankers and we were exposed immensely together with dozens of other companies who cannot meet statutory obligations, pay creditors or meet salary commitments,” the newspaper said in an editorial.

”Some say we should have ignored the story and reaped the dividends of silence. We should have closed our eyes to the fraud and thereby ”saved” ourselves and many others.

”Obviously, we do not subscribe to this argument.” — Sapa-DPA