Friday, 18 November 2016

Bond Notes - A Desperate measure by Reserve Bank of Zimbabwe to cover corruption

Bond notes are a desperate measure by government close to a gap created by critical issues as corruption and currency outflows which the state is not prepared to deal with, a labour and economic body has said.


Addressing delegates at a bond notes meeting organized by ZimRights, Labour and Economic Development Research Institute of Zimbabwe (LEDRZ ) Director Godfrey Kanyenze accused the Reserve Bank of Zimbabwe of abusing public funds saying they are now trying to cover up their anomalies by risking people’s lives through the introduction of the so called bond notes.

Government issued a directive to all banks to deposit 75% of their deposits to the central bank which in turn used those monies for other purposes. What it literally means is our money was taken from a safe place into an unsafe place .We just left with balances on the screen but there is no money in our accounts, bond notes are therefore a desperate attempt to close this gap by the reserve bank,” he said.

Kanyenze said there was a huge information gap on the issue of bond notes and a lot of inconsistences which government is refusing to answer such as how the general people involved in bond notes when authorities are saying it’s an incentive for exporters adding that the issue has now become confusing than ever.

He said the issues of corruption fiscal policy, lack of productivity need to be addressed matter of urgency.

“Government is not prepared to deal with these issues . It not about Mangudya and his bond notes but about the fiscal authorities,” he said.

Meanwhile, legal watchdog, Veritas has said the Presidential Powers (Temporary Measures) Act that was used to promulgate the Bond note law is unconstitutional in its entirety thus the Statutory Instrument 133 can be challenged.

Veritas provides information on the work of the Parliament of Zimbabwe and the Laws of Zimbabwe and makes public domain information widely available.

It argues that, as the title of the Presidential Powers (Temporary Measures) act suggests, regulations made under the Act are temporary measures only, unless confirmed by Act of Parliament they expire after 180 days.

“If, as must be the case, the Government intends bond notes to be a feature of life in Zimbabwe for longer than 180 days, it will have to go to Parliament with approximately worded Bill,” it says.

Veritas says although the introduction of bond notes has seriously talked about by the Governor of the Reserve and the Minister of Finance and Economic Development for several months, SI 133 bears signs of hasty preparation.
Bond Notes - A Desperate measure by Reserve Bank of Zimbabwe to cover corruption
“It is deplorable that once again a Minister should have published a statutory Instrument with such far reaching and potentially ex[plosive consequences on such shaky legal foundations. If the instrument had been drafted as a bill and introduced into the National Assembly to be passed as an Act of Parliament there would have been no problem as to its legal validity and its potential consequences could have been debated before it became law,” said Veritas.
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