Opinion / Columnist
The latest Monetary Policy Statement & Fiscal Measures intend to rob Zimbabweans again
02 Oct 2018 at 06:24hrs | Views
There is no doubt that ZANU PF government, Mthuli Ncube and John Panonetsa Mangudya are now running out of ideas. It is now clear in my mind that I had overrated Mthuli Ncube prior to his appointment to the finance ministry. This piece therefore seeks to educate the Zimbabweans that the monetary policy statement and fiscal measures are designed to rob diasporas and Zimbabweans at home of their savings.
12 April 2009 will never be forgotten in the history of Zimbabwe, Zimbabweans were robbed of their livelihood and savings. That was the day when the Zimbabwean dollar was officially abandoned, Zimbabweans suffered because of the sins committed by the cruel ZANU PF government. ZANU PF government robbed the defenseless citizens by photocopying Zimbabwean dollar day and night. It is clear that Mangudya and Mthuli Ncube are taking Zimbabweans for granted. Zimbabweans will never forget and forgive this financial mishap unless something unique and convincing is done. Therefore, it will be easy for an elephant to enter through the eye of a needle than for the Zimbabweans to support fiscal measures from the known financial robbers.
If you look closely on the monetary and fiscal announcements, ZANU PF government is planning to cheat people so that they can deposit their savings in local banks and abuse the savings later on. I am not against the idea of supporting the monetary measures of the government, but these measures should be implemented after the question of political legitimacy has been solved. Mthuli Ncube is giving a wrong prescription to the economic problems of Zimbabwe.
Mthuli Ncube proposed the reduction of Intermediated Money Transfer Tax from 5 cents per transection to 2 cents per dollar transected. This is because they want to trap diasporas so that they can deposit their savings through the local banks before robbing them. The first measure that Mthuli Ncube should have addressed was that of confidence of depositors. If Zimbabweans recall what happened on 12 April 2009, ZANU PF government will be definitely punished. After robbing generations of their savings, they neither repented nor asked for forgiveness. They think that Gideon Gono is now water under the bridge but not knowing that it is still the bridge that is under water. The diasporas should critically analyze this monetary measure (of jailing their savings in Zimbabwe banks), it is better to be robbed by a ‘robber' than to be robbed by your government like the April 12, 2009 attack.
Mthuli Ncube demonstrated further confusion by terminating the ZIMRA board in his fiscal measures. He should have asked himself a question, are the financial problems of Zimbabwe related to ZIMRA or political legitimacy? If he had power, Mthuli should have begun by terminating the two Vice presidents who failed to jumpstart the economy. To me, the termination of ZIMRA board is like buying harvesting equipment before buying inputs. Mthuli Ncube should go for diagnosis before any fiscal action.
John Panonetsa Mangudya is another confused fellow, his academic credentials should be revisited. He ordered foreign truckers to pay for fuel in foreign currency, how is this policy going to solve the Zimbabwe's economic woes? This policy has neither economic value nor rational, we need policies that can resurrect our economy from ICU. How is Mangudya going to monitor and evaluate this policy? The best policies are those that are easy to monitor and evaluate. The end result is that, fuel will end up been sold with US$ or on black market. If the situation continues to be like this, the fuel supply will dwindle within the next 30 days. Join me in condemning the clueless Mangudya. ZANU PF government, Mangudya and Mthuli are desperate of ideas, they have agreed at last that bond note is not at par with US$.
The separation of Foreign Currency Accounts to Nostro FCAs and Real Time Gross Settlement (RTGS) FCAs is another plot to rob the banks' foreign currency. If they want to raise money for foreign exchange and trade, they should opt for other feasible measures. The banks will remain dry because low confidence among business people. That is why they smuggle forex for imports payment.
Conclusion
ZANU PF, Mangudya and Mthuli Ncube are wasting their time. As long as the problem of legitimacy is not addressed nothing is going to change in Zimbabwe's largely informal economy. Therefore, Zimbabweans should not allow these (two blue eyed boys) to rob our savings again. The foundation of any monetary policies and fiscal measures should be built upon political legitimacy. There is nothing that ZANU PF can do without MDC alliance, dialogue should begin. I almost committed suicide to hear Mangudya and Mthuli claiming that the economy of Zimbabwe has been on increase since the time of the coup, we should all condemn lying.
Don Chigumba is a mixed methods research specialist can be found on twitter @Donchigumba
12 April 2009 will never be forgotten in the history of Zimbabwe, Zimbabweans were robbed of their livelihood and savings. That was the day when the Zimbabwean dollar was officially abandoned, Zimbabweans suffered because of the sins committed by the cruel ZANU PF government. ZANU PF government robbed the defenseless citizens by photocopying Zimbabwean dollar day and night. It is clear that Mangudya and Mthuli Ncube are taking Zimbabweans for granted. Zimbabweans will never forget and forgive this financial mishap unless something unique and convincing is done. Therefore, it will be easy for an elephant to enter through the eye of a needle than for the Zimbabweans to support fiscal measures from the known financial robbers.
If you look closely on the monetary and fiscal announcements, ZANU PF government is planning to cheat people so that they can deposit their savings in local banks and abuse the savings later on. I am not against the idea of supporting the monetary measures of the government, but these measures should be implemented after the question of political legitimacy has been solved. Mthuli Ncube is giving a wrong prescription to the economic problems of Zimbabwe.
Mthuli Ncube proposed the reduction of Intermediated Money Transfer Tax from 5 cents per transection to 2 cents per dollar transected. This is because they want to trap diasporas so that they can deposit their savings through the local banks before robbing them. The first measure that Mthuli Ncube should have addressed was that of confidence of depositors. If Zimbabweans recall what happened on 12 April 2009, ZANU PF government will be definitely punished. After robbing generations of their savings, they neither repented nor asked for forgiveness. They think that Gideon Gono is now water under the bridge but not knowing that it is still the bridge that is under water. The diasporas should critically analyze this monetary measure (of jailing their savings in Zimbabwe banks), it is better to be robbed by a ‘robber' than to be robbed by your government like the April 12, 2009 attack.
Mthuli Ncube demonstrated further confusion by terminating the ZIMRA board in his fiscal measures. He should have asked himself a question, are the financial problems of Zimbabwe related to ZIMRA or political legitimacy? If he had power, Mthuli should have begun by terminating the two Vice presidents who failed to jumpstart the economy. To me, the termination of ZIMRA board is like buying harvesting equipment before buying inputs. Mthuli Ncube should go for diagnosis before any fiscal action.
John Panonetsa Mangudya is another confused fellow, his academic credentials should be revisited. He ordered foreign truckers to pay for fuel in foreign currency, how is this policy going to solve the Zimbabwe's economic woes? This policy has neither economic value nor rational, we need policies that can resurrect our economy from ICU. How is Mangudya going to monitor and evaluate this policy? The best policies are those that are easy to monitor and evaluate. The end result is that, fuel will end up been sold with US$ or on black market. If the situation continues to be like this, the fuel supply will dwindle within the next 30 days. Join me in condemning the clueless Mangudya. ZANU PF government, Mangudya and Mthuli are desperate of ideas, they have agreed at last that bond note is not at par with US$.
The separation of Foreign Currency Accounts to Nostro FCAs and Real Time Gross Settlement (RTGS) FCAs is another plot to rob the banks' foreign currency. If they want to raise money for foreign exchange and trade, they should opt for other feasible measures. The banks will remain dry because low confidence among business people. That is why they smuggle forex for imports payment.
Conclusion
ZANU PF, Mangudya and Mthuli Ncube are wasting their time. As long as the problem of legitimacy is not addressed nothing is going to change in Zimbabwe's largely informal economy. Therefore, Zimbabweans should not allow these (two blue eyed boys) to rob our savings again. The foundation of any monetary policies and fiscal measures should be built upon political legitimacy. There is nothing that ZANU PF can do without MDC alliance, dialogue should begin. I almost committed suicide to hear Mangudya and Mthuli claiming that the economy of Zimbabwe has been on increase since the time of the coup, we should all condemn lying.
Don Chigumba is a mixed methods research specialist can be found on twitter @Donchigumba
Source - Don Chigumba
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