Bond notes -a legal perspective

In solving one problem, it can be said that the Governor has created several more. All that the press statement addresses are the symptoms of the country’s economic problems. The fundamentals, e.g. the need to improve productivity, the need to introduce land tenure and the need to make Zimbabwe an attractive investment destination have all been ignored.

The Governor complains of a trade deficit created by foreigners but ignores the fact that just three weeks ago the Minister of Indigenization was on the verge of closing all banks and did everything he could to scare away remaining investors.

These are fundamental problems that cannot be resolved through the creation of monopoly money. The root causes underpinning the maladministration ought to be addressed. A painkiller will never effectively cure a bone fracture, which is what the conduct of the Governor respectfully amounts to.

Conclusion

One cannot escape the conclusion that the press statement points to an incremental approach geared towards bringing back the Zimbabwe Dollar, a prospect which many will agree is too ghastly to contemplate.

It is hoped that further consultation on the issue, and an examination of whether there is a legal basis for the decision will lead to a rethink of the decision. The essence of administrative law is to check and balance executive power.

The law ought to be invoked should the need arise in order to prevent an unlawful course of conduct. Failure to do so may result in an abuse of the Governor’s powers in breach of our Constitutional right to administrative conduct that is lawful, fair and reasonable.- By Fadzayi Mahere for The Source

Related stories:

How people pay in Zimbabwe

Zimbabwe stems illicit outflows

Cash shortages – the real causes and the wrong diagnosis

New bond notes-key questions answered

Industry embraces bond notes

Mangudya full statement on the introduction of bond notes

Highlights of RBZ intervention on cash shortages

MDC says Mugabe is bringing back Zimbabwe dollar through the back door

Zimbabwe to introduce bond notes as cash shortages bite

(608 VIEWS)