Mnangagwa should craft policies to crush illegal forex deals

GOVERNMENT should craft policies that will weed out illegal foreign currency dealings and ensure a sound financial sector that supports national economic growth. This emerged during a public consultation on the 2019 national budget held at Charles Austin Theatre in Masvingo on Wednesday.

The consultation process is being spearheaded by the Parliamentary Portfolio Committee on Budget and Finance across the country's provinces. Input from the consultative process will be used to craft the national budget statement to be presented by Finance and Economic Development Minister Professor Mthuli Ncube sometime next month.

In their contributions participants said the budget should tackle rampant currency distortions in the market, which have resulted in price increases and shortage of basic commodities.

"The 2019 national budget statement should inform legislative measures to curb illicit financial deals that include illegal money changing. Money changers should be arrested and stopped from operating as they contribute to our suffering," Consumer Council of Zimbabwe (CCZ) provincial chairman, Mr Jowere Mukusha, said.

He also called on Government to consider "dumping" the bond note, which he said was being abused by economic saboteurs to manipulate the exchange market and cause price distortions.

"I think if Government returns to the use of the United State dollar, we can easily deal with illegal money changers. The United States dollar is in high demand and money changers are happy as they make money but if we stop using bond, these people will stop tormenting us."

The participants suggested creation of a contingency fund to facilitate adequate supply of basic commodities in times of crisis. They said Treasury will have to stabilise the currency market in order to curb parallel market exchange rates, unjustified price increases and restoration of business confidence.

Government has already crafted the Transitional Stabilisation Programme (TSP), which details economic recovery strategy towards a middle-income economy by 2030. Masvingo City Council Ward 7 Councillor, Richard Musekiwa, said the budget statement should consider the plight of local authorities and prioritise foreign currency allocation to them.

"Last year Masvingo City Council offered a tender to Willowvale Motor Industries, to supply eight service vehicles but that deal has since been cancelled because we could not get the needed foreign currency from RBZ. We wish the 2019 national budget statement will recommend that local authorities be given a priority on foreign currency allocation," said Clr Musekiwa. Mr Norman Mutizwa of Great Zimbabwe University also said the national budget statement should put in place effective mechanisms, which would help in cutting on public expenditure to avoid budget deficit.

"If my memory serves me well, our budget deficit for 2016 was about 1,6 billion and in 2017 the figure was the same but before year end this year, we have reached about $1,7 billion.

"This is uncalled for, let us have financial prudence and learn to live within our means by not spending what we do not have, as a nation. Let us cut on unnecessary expenditure," said Mr Mutizwa.