Stability of ZiG critical to reduce demand for use of US dollar

HON. MAVUNGA: Thank you Mr. Speaker Sir. We applaud the efforts by the Ministry of Finance and I think the ball is no longer in their court because they played their role last week after the introduction of that Statutory Instrument on Exchange Control Act. However, I think the ball is now in the police force. Is the police force equipped enough or capacitated enough to go to the grassroots and enforce the rule of law when it comes to protecting this currency?

THE MINISTER OF JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (HON. Z. ZIYAMBI): Thank you Mr. Speaker Sir. On matters of finance, we have a financial intelligence unit that is under the Ministry of Finance to specifically look into those issues and monitor. The police will come at the tail end. If we are to protect the currency, the measures put by the Ministry of Finance, the monitoring is done there. The police will come at the tail end, hence the request that I made to you in my submission that the Minister is well positioned to offer an answer on how to deal with malcontents in society. I submit.

THE HON. SPEAKER: The Hon Minster of Finance, the Financial Intelligence Unit, is it up to scratch?

HON. PROF. M. NCUBE: I thank Hon. Mavunga for that supplementary question. Yes, the Financial Intelligence Unit has been effective in investigating illicit activities, money laundering and other aspects and in fact, triggering the sanctions on those who are deviating from the prescribed exchange rate or pricing frameworks, but of course, we can never say they have all the capacity they need.

In fact, they have written to me to say Minister, we need more capacity and I have granted that and we will be giving them more resources so that they can hire more personnel equipment or whatever they need like tools of trade to remain effective on the ground, but that is one hand. Hon. Mavunga wanted to know more about the police side.  Again, we have said to the law enforcement agents, the police that if they need additional capacity, we are happy to support that whether it is equipment mobility, we have to support that because this is an important issue. I can assure him and I can assure the nation that we really mean business and we will make sure that our law enforcement agents and agencies are equipped enough to deal with the situation. I thank you.

HON. NYABANI:  Thank you Mr. Speaker. Sir.  I am happy Hon. Minister for the steps that you have taken.  We note that retailers are being arrested, but wholesalers are not being prosecuted.  Manufacturers have also been spared.  You find that there is 17% of wholesalers who are in plain sight.  Let me ask, what is the Financial Intelligence Unit doing regarding wholesalers who are flaunting Government laws and are not being prosecuted?  I thank you.

HON. PROF. M. NCUBE: Mr. Speaker Sir, should I proceed?

THE HON. SPEAKER: Yes, please.

HON. PROF. M. NCUBE: Thank you Mr. Speaker Sir.  I thank Hon. Nyabani.  This question is very important.  What he is really saying is that so far, we have been concentrating with an enforcement at the tail end.  What should be done is an enforcement along the value chain.  Manufacturer, wholesaler up to retailer.  So, he is correct and I agree with him.  I have actually instructed the Financial Intelligence Unit to begin doing that to make sure enforcement is involved right through the value chain.  That is exactly what we will do.  Thank you.

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