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Businesses are closing down due to cash crisis -Khupe
19 May 2017 at 06:41hrs | Views
MDC-T Vice President Thokozani Khupe has said after the imposition of the bond notes, businesses were closing down due to cash crisis and questioned as to what the Ministry of industry and Commerce was doing to save the situation.
"My question is directed to the Deputy Minister of Industry and Commerce. Madam Speaker, the cash crisis has become more defined and bond notes have added to that crisis. The business community is the hardest hit because they are failing to pay their foreign suppliers, resulting in the majority of them shutting down," Khupe said while asking the deputy minister of industry and commerce in parliament.
"What is the Ministry doing in conjunction with the Ministry of Finance and Economic Development and the Reserve Bank to make sure that businesses have access to foreign currency because theoretically, right now as we speak, bank accounts reflect that there is money when in actual fact the money is not there. So, what is Government doing to make sure that businesses have access to foreign currency?"
"At the same time, it is not clear in what currency the money is, whether it is in bond notes or United States Dollars. So, I would like to know what the Ministry is doing in conjunction with the Ministry of Finance and Economic Development and the Reserve Bank Governor to see to it that businesses have access to foreign currency so that they are able to pay for their foreign supplies," she added.
Industry and Commerce deputy minister Mabuwa said there is a standing committee that has been created in the Ministry and it is spearheaded by the Ministry of Finance and Economic Development. That special committee is responsible for liaising and getting information from industries on a case by case basis and what we did is we used to meet weekly, but now the Committee is meeting twice a week to make sure that we facilitate the prioritisation and payment of foreign acquired raw material, as well as the acquisition of equipment."
He said this Committee is also responsible for the implementation of Statutory Instrument Number 6 which talks to the wavering of duty and the wavering of all duties that are due on equipment supplies.
"My question is directed to the Deputy Minister of Industry and Commerce. Madam Speaker, the cash crisis has become more defined and bond notes have added to that crisis. The business community is the hardest hit because they are failing to pay their foreign suppliers, resulting in the majority of them shutting down," Khupe said while asking the deputy minister of industry and commerce in parliament.
"What is the Ministry doing in conjunction with the Ministry of Finance and Economic Development and the Reserve Bank to make sure that businesses have access to foreign currency because theoretically, right now as we speak, bank accounts reflect that there is money when in actual fact the money is not there. So, what is Government doing to make sure that businesses have access to foreign currency?"
Industry and Commerce deputy minister Mabuwa said there is a standing committee that has been created in the Ministry and it is spearheaded by the Ministry of Finance and Economic Development. That special committee is responsible for liaising and getting information from industries on a case by case basis and what we did is we used to meet weekly, but now the Committee is meeting twice a week to make sure that we facilitate the prioritisation and payment of foreign acquired raw material, as well as the acquisition of equipment."
He said this Committee is also responsible for the implementation of Statutory Instrument Number 6 which talks to the wavering of duty and the wavering of all duties that are due on equipment supplies.
Source - Byo24News
