The recently promulgated statutory instrument 133 of 2016 (SI 133 of 2016) which legalizes the introduction of bond notes has been described as ‘unconstitutional’ by the former Minister of Finance Tendai Biti PDP party.
President Mugabe on Monday gazetted SI 133 of 2016, Presidential Powers (Temporary Measures) (Amendment of Reserve Bank of Zimbabwe Act and Issue of Bond Notes) Regulations, that will allow for the introduction of the controversial bond notes.
However in a statement released by the PDP’s spokesperson Jacob Mafume the use of the Presidential Powers act was not only unlawful but a neglation of the principle of seperation of powers.
“The use of the Presidential powers temporary measures act in passing SI133 of 2016 is dangerous and a violation of the constitution. The constitution provides for separation of powers among the executive, the judiciary and the legislature,” he said.
Mafume who is also a respected Harare lawyer highlighted that the coming in of the bond note will slide the country back to the 2008 era of hyperinflation.
“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,” added Mafume.
He said the coming in of the bond notes marks the return of the Zimbabwean dollar and this will spur 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 asserted.
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,”
“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 imposed a phony currency on the Zimbabwean public with immediate effect,” they said
The ConCourt last month dismissed Zimbabwe People First leader, Joice Mujuru’s application challenging the introduction of bond notes, saying the action was premature.
Another similar High Court application by businessman Frederick Mutanda is still to be determined.