Mnangagwa insists there is no way Zimbabwe will overprint bond notes because this is a tri-partite arrangement

*HON. SITHOLE: My supplementary question regards to the quality of the bond notes is based on the quality of the paper on which the bond notes were printed, especially when we look at the paper on which the $2 bond note was printed. There is some difference and if you look at the nitty gritties, there are some differences on the texture.

HON. SPEAKER: The question is not supplementary because the original question was about anchoring the bond notes to the $200 million, so your question cannot be supplementary.

HON. MARIDADI: I wish to thank the Hon. Vice President for articulating and giving us comfort but my worry Mr. Speaker Sir is that the $200 million facility that anchors the bond notes, did not come to Parliament in accordance with the Public Finance Management Act because Section 300 of the Constitution talks about what should happen when Government or an agent of Government has borrowed money as a loan or guarantee. Section 300states that the loan agreement must be brought to this House and debated so that the National Assembly sets a limit on the amount to be borrowed and what should be done with that amount that has been borrowed. That has not happened Hon. Vice President and that is my source of worry. It is a violation of the Constitution and it is unprocedural? I want those issues to be articulated by the Vice President.

HON. MNANGAGWA: It is true that when we borrow money Government to Government, we bring those loans for approval here. Under the Reserve Bank Act, when the Governor is dealing with the Monetary Policy, he has legal authority. The Governor of the Reserve Bank under the Reserve Bank Act has legal authority to transact with other central banks in the world and he can, as Governor, make arrangements to the benefit of this country. This is why, I think the Minister of Finance if he was here, would have been able to inform you that there is a Bill now, in this House which deals with this aspect of the introduction of bond notes to take care of grey areas that have been identified in the Reserve Bank Act. So, the legal position has been taken care of.

One thing the Hon. Member should understand is that this is not the first time that the Reserve Bank has made arrangements with foreign or international institutions to deal with nostro accounts for export purposes or other guarantees to make sure that our transactions internationally are acceptable. He does not need to come to Parliament. He has that authority to deal with counter institutions worldwide.

THE HON. SPEAKER: If you listen to me carefully – [HON. MEMBERS: Inaudible interjections.] –Order, order!

HON. MARIDADI: If you do not allow me this one Mr. Speaker I will die – [Laughter.] – [HON. MEMBERS: Let us save a life.] – You made the Standing Orders Hon. Member. You may follow the question in writing because you were the last. – [HON. MARIDADI: I will be dead by then.] – No, we will take you to the mortuary.

(396 VIEWS)