Bond notes coming as Mujuru case is thrown out

Zimbabwe’s highest court has cleared the way for bond notes to be introduced next month after throwing out former Vice-President Joice Mujuru’s case challenging the introduction of the notes which the government says are meant to ease the current cash shortage in the country.

Mujuru, who now leads the Zimbabwe People First party, was also asked to pay the costs of the law suit.

Opposition parties and civil society are opposed to the introduction of the bond notes because they view them as Zimbabwe dollars in disguise. They fear the notes will bring back hyperinflation of the 2000s which saw the country recording a staggering 500 billion percent inflation.

American economist, Steve Hanke of the Cato Institute, disputes the official figure and argues that Zimbabwe’s inflation reached a high of 89 sextillion which translates to 89 followed by 21 zeroes.

Mujuru argued that the notes, which will be in denominations of $2 and $5, would be introduced illegally.

The Constitutional Court, however, ruled that Mujuru had lodged her case prematurely.

“After considering papers filed in this matter and submissions by counsel, the court is satisfied that this application is premature and speculative. It is hereby dismissed with costs,” ruled the Chief Justice Godfrey Chidyausiku according to The Herald.

Deputy Chief Justice Luke Malaba said: “You have to wait for the promulgation of an Act of Parliament or a Statutory Instrument first and you come back to court to challenge the legal framework’s constitutionality. The applicant does not have enough facts for her case now and when she gets the full facts, she can still come back to court with the challenge.

“At the moment, no one knows how Government will introduce the notes and it is premature to challenge the constitutionality of the law that it is not yet in place. The bond notes are not yet in circulation and no one knows how they look like.”

(138 VIEWS)