Bond Notes Law Unconstitutional – PDP

By Mlondolozi Ndlovu

Harare, November 02, 2016 – THE People’s Democratic Party (PDP) has described as unconstitutional, statutory instrument 133 of 2016 (SI 133 of 2016) which legalises the imminent introduction of bond notes in the country.

 

President Robert Mugabe on Monday gazetted the controversial legal instrument under the Presidential Powers (Temporary Measures) (Amendment of Reserve Bank of Zimbabwe Act and Issue of Bond Notes) Regulations.

 

However, former finance minister, Tendai Biti’s party said on Tuesday that the measures were not only unlawful but a negation of the principle of separation of powers.

 

“The use of the Presidential powers temporary measures act in passing SI 133 of 2016 is dangerous and a violation of the constitution,” party spokesperson Jacob Mafume said in a statement.

 

“The constitution provides for separation of powers among the executive, the judiciary and the legislature.”

 

Mafume, also a lawyer, warned that the coming in of the bond note will see the country slide back to the 2008 hyperinflationary chaos.

 

“It is apparent that by taking this path, Mugabe and his cronies are taking us down again back to the dark period of 2008 where the twin evils of hyper inflation and shortages of basic commodities haunted people daily,” he said.

 

He said the coming in of the bond notes marks the return of the Zimbabwean dollar and this will see the resurfacing of the black market.

“Indeed the bond note is the Zimbabwean dollar that has simply returned with its full wrath. Once gain the black market will thrive, multiple exchange rates will be introduced in the streets as people trade in the US dollar,” he said.


With a few companies still operating in the country, the party said the introduction of the bond note will lead to more company closures calling this a sign of “madness” by President Mugabe’s government.


“The few companies which were operating and banks will collapse amid unconstitutional compulsory acquisition of their assets via the bond note route. Already the market is reacting and shortages have started with fuel being the first commodity to go scarce on the market,” Mafume said.

 

“The People’s Democratic Party (PDP) notes with concern and outrage the madness and total disregard of the law and basic principles of economics by President Mugabe in gazetting statutory instrument 133 of 2016 (SI 133 of 2016) which has served to impose a phony currency on the Zimbabwean public with immediate effect.”