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Mnangagwa's Mutapa fiasco raises eyebrows

by Staff reporter
24 Sep 2023 at 09:09hrs | Views
Observers have raised concerns over President Emmerson Mnangagwa's decision to transfer the shareholding of 20 state-owned companies to the renamed Mutapa Investment Fund (MIF) without parliamentary involvement, warning that this exposes these entities to potential looting.

Mnangagwa used the Presidential Powers (Temporary Measures Act) to rename the Sovereign Wealth Fund as MIF and transferred the shareholding of state-owned enterprises like the Cold Storage Company, NetOne, TelOne, Powertel, Air Zimbabwe, Hwange Colliery Company, Cottco, POSB, and Zupco to the MIF.

The MIF has controversial privileges, including the ability to move foreign currency outside the country for various purposes, raising concerns about transparency and accountability.

Critics argue that Mnangagwa's actions usurped parliamentary powers and failed to involve necessary legislative debate. They also argue that Zimbabwe's government does not understand the role of a sovereign wealth fund, which is meant to use domestic surpluses from industries like mining to diversify the economy.

Concerns have been raised about the lack of profitability in many state-owned enterprises transferred to the MIF and the need for fundamental economic reforms to address the country's economic challenges.

Observers also criticized the government for using statutory instruments to introduce significant measures without parliamentary involvement, which they argue undermines democratic processes and transparency.

Source - The Standard