Why are Zimbabweans with free funds looking for Zimdollars when they need US dollars to import, Minister asks?

Why are Zimbabweans with free funds looking for Zimdollars when they need US dollars to import, Minister asks?

HON. CHINYANGANYA:  Thank you Madam Speaker.  When I raised the question of increase in prices, the Minister responded by saying it is a choice for a consumer to buy those commodities whose prices would have increased.  I would like to think that is not true.  We have basic commodities which people cannot live without, for example, mealie-meal, sugar, cooking oil has gone up.  Some of those commodities are produced locally and we have also medication which has gone up.  Is Government going to subsidise those basic commodities since the Minister has said it is a choice if you want to buy at a higher price.  I thank you.

HON. MUSHORIWA:  Thank you Madam Speaker.  I would want the Hon. Minister to clarify one issue.  There has been a coincidence, the issuance of the Statutory Instrument 127 and the going out in the market by the RBZ to secure $300 million on one year tenure.  Hon. Minister, I want clarification because there is a general feeling that the S.I 127 may be a ploy for the Government to secure foreign currency at a cheaper rate and then abandon the Statutory Instrument 127 on expiry after six months.

HON. CHIDUWA:  Thank you Madam Speaker Ma’am.  Let me start by responding to the question raised by Hon. Saruwaka, that we said we are going to name and shame.  Naming and shaming is a proposal which came in this august House and I said it is a good proposal.  The naming and shaming will not stop us from imposing civil and administrative penalties.

At the moment, what is provided for in the Statutory Instrument is just civil and administrative penalties.  Remember, there is literally no difference between S.I 127 and S.I 185.  All these things that we are talking about now are all provided for in S.I 185 but the only difference is compliance.  So, we are going to do both imposition of civil and administrative penalties in addition to considering the proposals for naming and shaming.

There was a question from Hon. Ndebele.  I would want to thank Hon. Ndebele because he is the one who made the proposal yesterday that we should have a Ministerial Statement.  I think this has assisted us in raising quite a number of issues with regards to S.I 127.  He said figures do not lie.  In terms of what he submitted, S.I 185 and the abuse of forex at the auction, what was there before S.I 127 was; we would identify that there is an abuser of forex.  We red flag their accounts, we close accounts or even ban them from participating in the auction but it would only go for 14 days.  After 14 days, we would then open and they would go back to the auction.  Now, because of the civil penalties that are there, and also the issue of banning, I think this is going to assist us to arrest all those who are abusing the forex market.

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