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'Remove RBZ immunity,' says Moyo

by Business reporter
21 Oct 2013 at 12:09hrs | Views
PROMINENT lawyer and business executive Mr Stanford Moyo says there is need to remove immunity of the Reserve Bank of Zimbabwe from prosecution to inspire confidence in the central bank.

Mr Moyo made the remarks in his presentation at the four day Institute of Bankers of Zimbabwe Summer Banking School that ended at Troutbeck Inn Resort in Nyanga last Friday. The Harare lawyer was presenting a paper on the challenges faced by Zimbabwe and possible solutions the country could consider in order to foster economic growth and development.

"The immunity does not assist in enhancing confidence in the Central Bank. In any event, as was found by the Constitutional Court of South Africa, immunity may not be constitutional."

The Scanlen and Holderness senior partner and Stanbic Bank chairman said few institutions would be inspired to deal with a central bank that is in not liable to prosecution.

His remarks come after a recent Supreme Court judgment that instructed Standard Chartered Bank to pay back money it transferred to the central bank, belonging to a Chinese firm, China Shougang International.

The ruling came after StanChart had contested a High Court order compelling it to pay back $47 739,86 owed to the Kwekwe-based Chinese firm.

The Central Bank took away foreign currency balances held by various companies at the height of Zimbabwe's economic challenges in 2007 and since that time it has not been able to replace them.

According to the RBZ, the money was taken to fund critical national obligations at a time the economy was feeling the effects of illegal and unjustified western sanctions.

Source - herald