Published On: Tue, Nov 8th, 2016

Bond Notes- a desperate measure by Government to cover corruption

Harare- 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.

“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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