HARARE – Zimbabwe National Students Union (Zinasu) co-leaders Nesbert Munyuki and Valentine Ziko have written to President Emmerson Mnangagwa challenging his appointment of top banker John Mushayavanhu as new Reserve Bank of Zimbabwe (RBZ) governor in what they claim was an illegality.

Mushayavanhu, a business associate of Mnangagwa, became the central bank boss on May 1, 2024, replacing John Mangudya whose term had lapsed.

In a letter dated April 2, 2024, Munyuki and his colleague said Mushayavanhu is a shareholder of FBC Holdings Limited which wholly owns FBC Bank.

The two University of Zimbabwe students cited section 16 of the RBZ Act which disqualifies shareholders of any local banking institutions from appointment as governor of the apex bank.

“We confirm that following mandatory disclosure by Dr Mushayavanhu himself, the Zimbabwe Stock Exchange, issued a public notice dated the 8th of June 2020 advising the public of his acquisition of shares in FBC Holdings.

“The aforesaid notice advised the public that through a company called Tirent Investments (Pvt) Limited, on the 4th of June 2020, he purchased 1,925,000 shares in FBC Holdings to the value of ZW$4,427,500 raising his shares in the company to 42,325,00.

“Yet again, on the 14th September 2020, the Stock Exchange pursuant to disclosure from him, issued another notice advising the public that on the 9th September 2020 through Tirent Investments, he made an additional purchase of 512,200 shares for the sum of ZW$5,112,000,00 increasing his total number of shares in FBC Holdings to 43,768,149,” the student leaders argued.

The two also said following yet another mandatory disclosure from him, the Zimbabwe Stock Exchange issued a public notice on the 24th of June 2021, advising the public of another purchase of shares in FBC Holdings on his part.

“The public notice advised that on the 22nd of June 2021, through Tirent Investments (Pvt) Ltd, he purchased 207,000 additional shares in FBC Holdings to the value of ZW$6,104,354,65 taking his total number of shares post the transaction to 43,768,149.

“Furthermore, public information available at the Zimbabwe Stock Exchange confirms that indeed, Tirent Investments, the vehicle through which he has been purchasing shares in FBC Holdings, holds about 7% shareholding in the listed company.”

The student leaders further noted that FBC holdings Limited wholly owns FBC Bank.

They argue that Mushayavanhu, through his investment vehicle Tirent Investments, is a shareholder in a company that wholly owns a registered and trading banking institution.

“His interest in FBC Bank is all too glaring to be ignored,” they wrote through lawyers Kossam Ncube and Partners.

The two demanded that Mnangagwa reverses Mushayavanhu’s appointment within five days or they would institute legal proceedings.