RBZ debt takeover faces resistance

The proposed takeover of the RBZ debt faces stiff resistance as members of the public, bankers and the business community called for a thorough audit of the debt following revelations that the Government is not aware how part of the debt accrued and how some of the money raided from several accounts was used.

Contributing to public hearings on the RBZ (Debt Assumption) Bill conducted by the Parliamentary Portfolio Committee on Finance and Budget in Harare yesterday, Farai Benhure said government was already highly indebted with over $2 billion in debts and to assume the RBZ debt would simply further burden the already burdened country.

Banks on the other hand said they had to defend litigation from depositors arising from interest that was being demanded by State Enterprises on the funds that were transferred to RBZ.

The banks also complained that the Debt Assumption Bill gives unequivocal immunity to the RBZ.