MDC-T MP Chamisa questions the legality of the introduction of bond notes

The MDC-T MP for Kuwadzana, Nelson Chamisa has questioned the legality of the Reserve Bank of Zimbabwe Governor John Mangudya's legality in announcing the policy  on bond notes  backed by the $200 million which he said was  a borrowing initiative.

"Governor is not the government, he is part of the government. Considering the fact that the Governor is not the Minister, is the policy that was
announced by the Governor lawful?" he asked.  "Considering the fact that the Public Finance Management System and the Act itself is very clear about what the Minister is supposed to do and what the Governor should do."

He said the Minister is supposed to come to Parliament if there is any borrowing.

"Now we understand that the Bonds are coming on the back of  US$200 million which is a borrowing in itself and that raises some  legal issues. Not only that, the Minister is the only one who is supposed to then come to Parliament with such a measure, and not the Governor. Now, under these
circumstances where there is an apparent illegality, what is the view of the Minister?" Chamisa asked.

Chinamasa said if he was at a Zanu PF rally he would say ‘Pamberi nekunzwisisa, vasingazive ngavadzidziswe'.

"First I want to underscore the point that the fiscal and monetary policies work very closely together, we work hand in hand. We both appreciate each
other's boundaries as fiscal and also the boundary that delineates the monetary activities," Chinamasa said.  

"That is very clear, but we work very closely. Now, the issue you raise is that you must not forget that what triggered the measures announced last
week was a cash crises. Cash to do with monetary authorities. If there is no money in the banks, it is not the Minister who should announce measures
to deal with those issues, it is the Governor because he is dealing with the financial system of payment."

He said that is what exactly the Governor did and in respect of those measures they come after fullest consultations between monetary and fiscal
authorities.

"I decided and I have basically, restrained myself from coming into this issue because it is a purely monetary issue. I did not want it to be
politicised. It is very important that people look at those announcements on their own merits and not as if it is a political measure or political
maneuver," he said. "So please bear in mind - as to the last question with respect to whether it is a loan or not. The Bond notes are not yet printed it is just an announcement. Whatever, aspect of the measures require me to come to this House, I will come - but there are also some of those measures where we are not required to come to this Parliament."

The minister said they shall act completely within the remit of the Governor – first of all you need to understand that facility is an overdraft and we do not come to Parliament for overdrafts.

"The central bank is a Bank they get lines of credit, on an overdraft, we do not come to Parliament here for overdraft authorization but if it is
necessary we will come and there will be no problem," he said.