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NATIONAL ASSEMBLY HANSARD 16 December 2015 42-27

PARLIAMENT OF ZIMBABWE

Wednesday, 16th December, 2015

The National Assembly met at a Quarter-past Two o’clock p.m. 

PRAYERS

(THE HON. SPEAKER in the Chair)

Hon. Misihairabwi-Mushonga having brought a baby in Parliament. 

THE HON. SPEAKER:  Order, may I ask Hon. MisihairabwiMushonga to bring my grandchild here.

Hon. Misihairabwi-Mushonga took the baby to the Hon. Speaker. 

Hon. Members, we have a unique spectre this afternoon.  I have conferred with Hon. Misihairabwi-Mushonga and we have discussed and amicably agreed to let her explain herself without me ruling.

 

HON. MISIHAIRABWI-MUSHONGA:  Thank you Mr.

Speaker Sir for giving me this opportunity.  Mr. Speaker, this was meant to stress a particular point.  Yes, as I always do, this particular House and this Parliament is not women friendly.  Most of these women that you are beginning to see in this House are child bearing and there is nothing here in this Parliament that allows you to bring a baby, be looked after and breast feed.  In our Standing Rules and Orders, we do not have anything that allows anybody to take time out – [HON.

MEMBERS: Inaudible interjections.] –

THE HON. SPEAKER:  Order, please go ahead.

HON. MISIHAIRABWI-MUSHONGA:  Our Constitution Mr.

Speaker makes sure that both men and women have equal opportunity to participate in political activities.  As long as we are hamstrung by the inability to be able to do so, because we have to look after babies – as it is today, it is an important debate day.  I do not have anybody to look after the baby, so I have to come here and debate.  I understand because I looked at the Standing Rules and Orders and there is no provision that allows somebody to bring in a baby.  I had dwelled on the basis that this baby cannot be called a stranger and therefore, had brought the baby to the House.

I am hoping that after I have made this and I have agreed with you that I am going to take the baby out, it is going to be a point about ensuring that both our Standing Rules and Orders and everything else, facilitates for women to participate effectively in issues of political work.  So, I am going to take the baby out but with a heavy heart because I think I could still have debated with the baby here.  I thank you Mr. Speaker.

THE HON. SPEAKER:  Sit down – [HON. MEMBERS: Hear,

hear.] – Hon. Member, please take a seat with the baby.  I am sure Hon. Members have had the statement from the hon. member with the baby.  I think it is correct that we do not have provisions or facilities to bring babies here so that those Members of Parliament who are breast feeding and would like to come to the House to debate can do so and go back to breast feed the children within the premises of Parliament.  I am aware that the labour law does allow, I think extended long leave, maternity leave for parents especially mothers to go and take care of their children.  If it is not possible, they can come within the premises but we need to provide for such facilities in future.  I thank you, I think you have made a point.

ANNOUNCEMENT BY THE HON. SPEAKER

CHANGES TO PORTFOLIO COMMITTEE MEMBERSHIP

THE HON. SPEAKER:  I have to inform the House of changes to Committee membership as follows: - Hon. E. Mhere to move from the Portfolio Committee on Foreign Affairs to the Portfolio Committee on

Environment; Hon. Chikomba to move from the Portfolio Committee on

Youth, Indigenisation and Empowerment to the Portfolio Committee on Industry and Commerce; Hon. Mlilo to serve in the Portfolio Committee on Small and Medium Enterprises and Cooperative Development.

FIRST READING

ZIMBABWE NATIONAL DEFENCE UNIVERSITY BILL

(H.B.12, 2015)

THE MINISTER OF DEFENCE (HON. DR. SEKERAMAYI)

presented the Zimbabwe National Defence University Bill (H.B. 12, 2015).

Bill read the first time.

Bill referred to the Parliamentary Legal Committee

MOTION

LEAVE TO MOVE RESTORATION OF THE FINANCE BILL ON THE

ORDER PAPER

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA):  Mr. Speaker Sir, pursuant

to Standing Order Number 73, I seek leave of the House to move the motion that leave be granted to bring in a Finance Bill, which was suspended due to lack of quorum yesterday on Tuesday, 15th December, 2015, be restored on today’s Order Paper as Order Number 1 and that the rest of the Orders be renumbered accordingly.

HON. GONESE:  Thank you very much Mr. Speaker Sir, what it just brings home is that Members of this august House are not taking heed of what you have said to us.  I think yesterday it was made very clear at the beginning that we had suspended Standing Orders relating to automatic adjournment.  It was really incumbent upon us as Legislators to remain in the House.  It is an embarrassment that the House had to be adjourned due to lack of quorum.  I want to emphasise the point that you have made before Mr. Speaker, that all of us must take the business of the House seriously.  We had suspended the automatic adjournment and we would have been able to carry on with the debate but some members, for reasons best known to themselves, did not take heed of what you told us before.  I believe that in future it is very necessary for us to take the business of the House very seriously.  Having said that – [HON.

MEMBERS: Inaudible interjection.]

THE HON. SPEAKER:  Order, some of the Members who are making noise are the ones who were not here.

HON. GONESE:  The membership of this august House is 270 and the quorum is only a third.  So, there is no excuse for us to fail to have a quorum which only comprises 70 Members.  Obviously, in the circumstances that we find ourselves in, we will agree to the motion by the Minister of Finance and Economic Development, we have no objection to it.  I just thought it was important for me to point out the fact that the House had to adjourn prematurely when there were Members who were willing to debate, simply because other Members were not present in the House and the House was not quorate, there was no excuse for that.  That is my point.

THE HON. SPEAKER:  The Chair does subscribe to the sentiments expressed and for the Chair, it would appear that the Members who absented themselves do not understand the importance of a budget, more so, when the Hon. Minister of Finance and Economic

Development was so committed to complete the task.  Not only that, we had prepared dinner for Members to have their meal here and come back, so that the question of quorum would not arise.  That was not respected and I am hoping that we shall not have a repeat today.  We need to be able to carry out our responsibility as far as looking at the budget is concerned and the Finance Bill which the Minister of Finance and Economic Development will put forward to us.

I thank you Hon. Gonese and there shall be no objection.

MOTION

RESTORATION OF THE FINANCE BILL ON THE ORDER PAPER

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA):  Mr. Speaker Sir, with that

indulgence, I now move the motion that leave be granted to bring in a Finance Bill, which was superseded by lack of quorum yesterday on

Tuesday, 15th December, 2015, be restored on today’s Order Paper in terms of Standing Order Number 73, as Order Number 1 and that the rest of the Orders be renumbered accordingly.

Motion put and agreed to.

MOTION

FINANCE BILL (H.B. 12, 2015)

First Order read:  Adjourned debate on motion that leave be granted to make further provisions for the revenues and Public Funds of Zimbabwe and to make provisions for matters connected therewith or incidental thereto.

Question again proposed.

HON. NYAMUPINGA:  Thank you very much Mr. Speaker Sir. I

apologise for not reporting on the Budget analysis from the Committee on Women Affairs, Gender and Community Development yesterday.  As you know Mr. Speaker, our Committee covers quite a number of gender issues in our country and there are so many international days that are being celebrated, for example, yesterday, it was International Day for disability and we are closing the Gender Based Violence 16 days of activism.  So, there are so many activities taking place in the evening, my apologies Mr. Speaker Sir.

I also want to thank you Mr. Speaker, for acknowledging that this House is not gender sensitive, hence a lot of women are not participating in politics but I want to thank you for accepting the observation and I hope the relevant Ministry will address that.

INTRODUCTION

Mr. Speaker Sir, the goals of the Ministry of Women Affairs, Gender and Community Development are to empower women, achieve gender equality and develop the community. In ZIM ASSET, the Ministry will be addressing the goals under the Value Addition and Poverty Eradication Clusters.  

METHODOLOGY

The Portfolio Committee on Women Affairs, Gender and

Community Development, after the 2016 Budget presentation by the

Minister of Finance and Economic Development, engaged the Ministry of Women Affairs, Gender and Community Development and stakeholders, in order to hear their views.  The Committee sat to deliberate on the views received and came up with its own analysis of the 2016 Budget, Vote 23 of the Ministry of Women Affairs, Gender and Community Development.

OVERVIEW OF THE NATIONAL BUDGET

Overall national budget is expected to change slightly from US$4.5784 in 2015 to US$4.4343 billion in 2016, representing a slight decrease of 3%. Of the total 2016 Budget, over 83% will go towards recurrent expenditure while capital expenditure will constitute only 6%, which is still very low. Employment costs are over 55% of the total budget.

WOMEN AFFAIRS, GENDER AND COMMUNITY

DEVELOPMENT

The budget allocation for the Ministry of Women Affairs, Gender and

Community Development, Vote 23 increased slightly from US$13.352 million in 2015 to US$13.713 million in 2016, representing an increase of 2.7% but just 0.3% of the total Budget. Although the Ministry’s bid was over US$58 million, total resources available for the Government could not fulfill the Ministry’s 2016 bid. The total allocation to the Ministry has remained less than 1% of the total Budget.

Despite facing the challenges of lack of funding from Treasury, inadequate vehicles, ICT equipment, furniture, office space and office supplies in 2015, the Ministry’s major achievements in women empowerment are listed in box 1 below.

 

 

Box 1: Women Empowerment Achievements in 2015

ü 1,326 women trained in small grain production and conservation agriculture.

ü 44 women trained in horticulture production.

ü 1,536 women trained in food processing.

ü 1,309 women mobilised and are involved in animal husbandry

(cattle, beef, chicken and beekeeping).

  • With the assistance of funding from a partner, 5 women projects in agriculture were set in Chivi, Gutu, Nyanga, Murewa and Mutoko districts where 300 women benefited.
  • 2,450 were sensitised on mining regulations.
  • 43 women sensitised on the importance of environmental assessments.
  • 397 women trained on customs, border regulations amongst other issues.
  • 278 women linked to markets.
  • 287 women groups funded under Women Development Fund.
  • KPMG contracted to facilitate the establishment of the Women’s Micro Finance Bank.

The Committee noted that there is little achievement in women empowerment. The figures are too small considering the women population in Zimbabwe. The provincial coverage is too narrow; only two provinces were considered.

In gender mainstreaming, the Ministry achieved the following in 2015:

Box 2: Women Gender Mainstreaming Achievements in 2015

o   Revised National Gender Policy (at Cabinet level).

o   Trained local authorities, officials and Parliamentarians on gender mainstreaming, gender budgeting, family laws and gender provisions in the constitution.

o   Launched the AU campaign on ending child marriages on 31st of

July 2015. o Facilitated the development of the Zimbabwe Gender Commission

Bill (awaiting Presidential assent). o One-Stop centre for survivors of gender based violence being established at Gwanda Provincial Hospital.

Hosted SADC Ministers of Gender from 27 to 30 May 2015 presented the Beijing+20 report on the status of women in New York (March)

In community development, the Ministry achieved the following in

2015:

Box 3: Ministry’s 2015 Achievements in Community Development

§  Developed a draft Community Development Policy.

§  444 centres resuscitated from a total of 1,535 wards.

§  6,881 (5,174 men and 1,707 women) trained on internal savings and lending schemes in ten provinces.

§  8,368 (6,415 women and 1,953 men) trained in value addition of agro products (food processing) in ten provinces.

§  Pilot land and livestock management programme in Chikomba

district.

§  Mobilised communities to participate in income generating projects (234 groups trained in beekeeping).

§  511 (326 women and 185 men) trained in bakery skills, early childhood learning, business management, food processing, clothing technology and detergent making.

Training in bakery skills, early childhood learning, business management, food processing, clothing technology and detergent making was done at the two training centres (Jamaica Inn and Rodger Howman). Training on internal savings and lending schemes and value addition was done at the Ministry’s centres in all the ten provinces.

The Ministry of Women Affairs, Gender and Community

Development’s 2016 broad policy priorities are:

  1. Formulate and implement policies, strategies and programmes that promote women participation in development.
  2. Strengthen links between Government, Non-Governmental Organisations and Private Sector in mainstreaming gender in the respective sectors.
  3. Promote policies, programmes and projects that enhance community development.

In line with policy priorities in 8, the Ministry of Women Affairs, Gender and Community Development specifically prioritises the following in women empowerment:

Priority Activity Budget

2015

Release

2015

Bids

2016

Approve

d 2016

  Women’s Dev 350,000 150,000 20m 300,000
Women’s empowerment Fund        
Exhibitions   12,420 200,000 0
Commemorations   21,846 200,000 0
Women’s Bank 5m 74,175 10m 5m
Women in Health     260,000 0
Total   5.35m 258,441 30.66m 5.3m

 

From a bid of US$30.66 million, only US$5.3 million was approved. Only two activities namely Women’s Development Fund and Women’s Bank received funding from the fiscus and the funding was just about 18% of the Ministry’s total bids for women empowerment. The Committee noted that despite lack of resources, activities such as exhibitions, commemorations and women in health which received nothing are important in women empowerment.  The Committee also observed that for the 2015 women empowerment allocation, only 4.8% was released by the Treasury.

In gender mainstreaming, the Ministry’s 2016 priorities are:

Priority Activity Budget

2015

Release

2015

Bids

2016

Approved

2016

 

 

Gender Main streaming

Gender policy training 20,000   750,000 0
Anti-domestic violence     140,000 32,000
Gender responsive policy management     200,000 5,000
Women in politics 5,000 0 480,000 5,000
Gender Commission (Operations) 100,000   540,000 100,000
Gender Commission (Furniture) 20,000   30,000 50,000
Girls and Young

Women empowerment

5,000   1.5m 30,000
Capacity building on Gender and Farm laws 10,000   1.1m 15,000
State Party Reporting 5,000 81,684 500,000 20,000
Gender Based Violence 5,000 3,500 1.1m 25,000
Total   170,000 85,184 6.34m 282,000

In gender mainstreaming, the Government allocated US$32,000 to anti-domestic violence, US$150,000 to Gender Commission and US$100,000 to the rest of the remaining eight activities. Gender training activity received nothing and the approved US$282,000 is just 4% of the

Ministry’s total bids in gender mainstreaming. The Committee observed that the Treasury released only 50% of the Ministry’s 2015 Budget for gender mainstreaming. The Committee further noted that the allocation for Gender Commission was not enough, given the demanding operations of the Commission.

In community development from the ten priority areas which are:

  1. National Community Development Policy.
  2. Community Centres.
  3. Zimbabwe Community Development Fund- ZCDF.
  4. Renewable Sources of Energy-biogas.
  5. Capacitating community centres.
  6. Internal savings and lending and entrepreneurship development

(targeting 1 958 wards at 200 people per ward)

  1. Value addition.
  2. Small grains and legumes.
  3. Land and livestock management.
  4. Bee keeping businesses.

Only one activity has been approved. Despite a total expenditure bid of US$16 million for community development, only US$0.5 million was approved for Zimbabwe Community Development Fund. The fund will be used to assist rural areas in the production of biogas. The Committee raised some concerns that targeting 200 people per ward is too small given that some wards have over 5,000 people.

The targeted activity is renewable energy (biogas) production in rural areas. But activities such as value addition, small grains and legumes production, land and livestock management and bee keeping are equally crucial in the pillars of ZIM ASSET namely value addition, poverty reduction and food security. The Committee noted that micro-level value addition is not taken at national level with the weight it deserves. In this regard, the Committee recommended the need to also prioritise community development when funds are disbursed from the fiscus since community development is key in poverty reduction.

Priority areas in supplies and Ministry’s capacitation

Priority Activity Budget

2015

Release

2015

Bids

2016

Approved

2016

 

Supplies and

Goods and services 655,000 51,766 2,587,650 360,000
Capacitating the Ministry

Total

Maintenance 195,000 113,307 560,000 96,000
Furniture and equipment 30,000 11,257 450,000 25,000
Vehicles        
Construction 100,000   1,695,000 160,000
  980,000 176,330 5,292,650 641,000

 

Only US$641,000 was approved against total bids of US$5,292,650. This represents 12% of the total bids in supplies and capacitation of the Ministry. Only 18% of the 2015 budget for supplies was released by the Treasury. Despite facing limited budgetary resources, The Committee emphasised the need to release the approved resources.

Given the limited resources, the Ministry was allocated only 23.5% of its total bid. From the total Ministry’s budget allocation of US$13.713 million, about 51% goes to employment costs leaving only US$6.723 million for projects, supplies and maintenance.  In this regard, the Ministry proposed the following measures in revenue generation and cost cutting:

  • Raising revenue from the two training Centres (Jamaica Inn and Rodger Howman) through fees charged. The fees vary from course to course and according to demand. Because of these variations, the Committee suggested that the Ministry should prepare what is generated from the two centres on yearly basis.
  • Increasing collaboration with development partners to mobilise financial and human resources.
  • Doing pilot projects which can be replicated by community members to improve their livelihoods.
  • Conducting training of trainers.
  • Venturing into Public-Private Partnerships.
  • The Ministry seeks to promote economic growth through its training programme on Internal Savings and Lending whose objective is to promote a culture of saving among communities.

The Committee recommended that any funds generated from the Ministry should be replanted back into the Ministry. The training centres are sometimes hired, used for weddings and for training. In this regard, the revenue estimate should be available at each end of the year.

COMMITTEE OBSERVATIONS

The Committee observed that the approved expenditure target for the Ministry was far below what the Ministry bided for. This is however not unique to the Ministry of Women Affairs, Gender and Community Development but is common to all Ministries due to limited resources available for the Government. However, the major issue noted by the Committee is the failure by the Ministry of Finance and Economic Development to release some of the approved resources. Treasury just released 9% of the original budget of US$6.55 million excluding employment costs. The Committee emphasized that although the Minister of Finance and Economic Development is working hard and doing his best, there is need to honour the approved budget. Approved funds must be made available.

One of the observations from the Committee was that the budget share of the Ministry of Women Affairs, Gender and Community

Development has remained very small (less than 1% of the National

Budget) indicating that the Ministry has not been among the

Government’s priority Ministries. Community development is crucial in

ZIMASSET but has not been considered more seriously in the National Budget.

The Committee observed that most of the Ministry’s programmes and activities are attractive to development partners and hence the development agencies partner the Ministry in a number of projects. The Committee however observed that some districts were appearing more frequently in the Ministry’s programmes than others, in particular for programmes offered in partnership with development partners. In this view, the Committee suggested recommendations based on how best the approved resources can be used by the Ministry.

RECOMMENDATIONS

Despite facing limited budgetary resources, releasing the approved little resources to the Ministries will go a long way in improving their activities. The Committee recommended that there is need for the Ministry of Finance and Economic Development to release approved resources to the respective Ministries.  

In terms of revenue generation, the Committee recommended the Ministry to generate income from fees paid by trainees. The Ministry should have an estimate of how much is generated from fees paid by trainees per year. Income generated from the training centres could be an important source of budgetary resources which can be used to buy some of the supplies, in particular, furniture. The Committee further recommended that the generated funds should be replanted into the

Ministry.

The Committee raised some concerns with regards to the capitalisation of the Women’s Bank. The Committee recommended the need to speed up capitalisation of the Women’s Bank. Realising the Government’s tight budgetary needs, the Committee suggested that capitalisation of the bank could be done through Public-Private partnerships.  Some of the shares of the Bank can be sold to individuals or companies in order to capitalise the Bank but priority given to women investors.

The Committee appreciated the need to equally distribute the

Ministry’s development programmes across districts. The Committee therefore recommended that the Ministry should liaise with donors to make sure that districts are covered in a balanced manner. In addition, the Committee recommended that a one-stop-centre for survivors of Gender violence should be established in every district. Although covering all districts may not be possible given the available resources, the Committee proposed that the Ministry can rotate the benefitting districts in every budgetary year.

Although the Committee appreciates the importance capacity building, the Committee feels that in order to ensure that the training of women is effective; there is need for a follow-up of the trained women. Trained women could be encouraged to extend the training to others in order to broaden knowledge among women. Training of trainers could be structured. Such transfer of knowledge can be a good future cost cutting measure for the Ministry as women will just train themselves without resources from the Ministry.

Finally, the Committee observed that from the ten priority activities of the Ministry in community development, only one activity was approved for funding from the fiscus. This activity is renewable energy (biogas) production in rural areas. But activities such as value addition, small grains and legumes production, land and livestock management and bee keeping are equally crucial in the pillars of ZIM ASSET namely value addition, poverty reduction and food security. The Committee noted that micro-level value addition is not taken at national level with the weight it deserves. In this regard, the Committee recommended the need to also prioritise community development when funds are disbursed from the fiscus since community development is key in poverty reduction.

Mr. Speaker Sir, that was the report from your Committee on

Women Affairs, Gender and Community Development, but just a second of your time Mr. Speaker Sir; today we attended a workshop on family planning.  It was shocking that our Government is not putting a lot of money into family planning.  Family planning by women in the country is being funded by only the donor community.  It is dangerous and hence you find that the Registrar General is also crying that some of these drugs that are coming are not the best.  I thank you.

HON. CROSS:  Thank you Mr. Speaker Sir.  I rise to initiate the debate by ordinary members of the House on the 2016 Budget.  I want to start by examining the assumptions in the budget regarding prospects for growth in 2016 and I want to deal with this sector by sector, I think the outlook for 2016 is extremely poor at this juncture.

In the assumptions made by the Minister regarding agriculture, he refers to the possibility of a reasonable wet season.  Well it is quite clear now that the season is not only very delayed, but is likely to seriously underperform.  We are already two months late into our planting season and I cannot see any possibility of a significant recovery in agriculture in 2016.  In fact, to the contrary, I see a significant reduction in agricultural output.

In the mining sector, we are already forecasting minimum growth.  Mining output is going to be affected by the serious continuing decline in international commodity prices and I do not see any prospects of recovery in 2016.  Therefore, I assume, Mr. Speaker Sir, that the mining industry output will also fall in 2016.  Tourism is going to be affected by the devaluation of the currencies around us.  We have a massive devaluation of the South African Rand, but we often ignore the fact that the Metical in Mozambique and the Kwacha in Zambia have declined in value by more than 50% in 2015 and therefore, all the destinations around us are going to be significantly cheaper than Zimbabwe which is operating in a hard currency environment, especially with the United States Dollar.  Therefore, I think that tourism is going to have a difficult year.

Construction is likely to be maintained by the continued emphasis of the diaspora on the construction of housing.  It is interesting to note, Mr. Speaker, that even though we have not committed any resources at all to housing in this country, there is in fact a housing revolution underway.  It is principally funded by the international diaspora, but they too are affected by the disparity in currency values, especially in South Africa where 1 000 rands is only worth US$45 in Zimbabwe.

Finally, there is the question of our internal reform programme and the efforts by the Government to stimulate FDI.  I must say, I see no chance whatsoever of these reforms having any kind of significant impact on economic activity in 2016.  I cannot see any significant growth in FDI.  My conclusion therefore, Mr. Speaker, is that growth is unlikely.  Instead, we must brace ourselves for further reduction in tax receipts.  Tax receipts have declined now, in 2014 and 2015 and I personally am expecting a further reduction in tax receipts in 2016.  I see this as being unavoidable.

We are being asked what are the prospects for increasing taxation levels.  Mr. Speaker, we are already one of the most heavily taxed populations in the world.  The official figures in the budget show that taxes in Zimbabwe generally collect about 28% of our GDP, but that is only a small fraction of what we actually collect in taxes.  Mr. Speaker, the AIDS Levy is a tax, the NSSA charges are a tax, the ZINARA charges are a tax, police road blocks and fines are a tax.  They are all means of collecting money from individuals in the Zimbabwean economy.

If you aggregate all of these informal and formal taxes on the population of Zimbabwe, we are in fact collecting 35% of the GDP.  I just want to say that that is completely unsustainable.  It also results in a whole lot of other adverse side effects.  It makes Zimbabwe one of the most expensive countries in the world in which to operate as a business.  It increases the cost of employment by a third without any impact on the incomes of the individuals who are working and so, you can carry these implications across the whole country. There is no prospect whatsoever, of us raising additional money from the existing tax base in these circumstances. In fact, I think ZIMRA does an amazing job. If you read the annual report of ZIMRA, I think they have really done very well under very difficult circumstances.

Now, we have to turn to the prospects for cost reductions. There is absolutely no room for the Minister to reduce the cost of Government.

Our employment costs are $3.2 billion. Our fixed recurrent cost is nearly $300 million. That is $3.5 billion. In my view, that is already in excess of the revenue that we are likely to accrue in 2016. In other words, without providing for any capital expenditure or any other demands being made on Government, we will be operating next year on a deficit basis. We will have to borrow money simply to meet staff and other recurrent costs.

When it comes to the constitutional commitments that should be provided for in the budget, I was delighted along with many other members of the House to hear the Minister’s commitment to show the allocations to specific Constitutional Commissions as separate items in the budget allocations. I think this is a great step forward and I think it means a significant contribution to the improvement of general governance in this county.

Mr. Speaker, I am extremely perturbed that for the third year in a row, we have failed to make provision for the 5% allocation to local authorities. Our local authorities have been subjected to time and time again of revenues being moved from their resource base to Central Government.  For example, first we took electricity away from local authorities. In South Africa, every urban council buys electricity in bulk and on sells it to the consumers in their districts and they make a small margin. Electricity in South Africa is a significant proportion of the income to local authorities. In Zimbabwe we took it away from our local authorities. We did not even compensate the cities of Harare and Bulawayo for the cost of the power stations which were built by the citizens of those cities.

Then came water with an attempt to centralise it in ZINWA. Fortunately, that was resisted by the people and water remains with local authorities. That represents 40% of the revenues of local authorities. We took licencing away from local authorities and transferred it to

ZINARA. ZINARA is expected to collect more than $200 million in 2016.  Last year the Minister allocated $10 million from ZINARA for urban councils and less than half of that has been disbursed. How do we expect local authorities to repair roads, maintain street lighting and to do pretty much anything if we do not make resources available?

In Kenya, 60%, not 5%, of the Central Government’s revenue goes to local authorities. This is where we should be going. Mr. Speaker, $180 million would make an enormous contribution to all local authorities, it really would. If I was a member of the Rural District Council in a place like Beitbridge, I do not know what I would do with the paltry resources that I have at my disposal. Certainly, I could not maintain roads, provide clean water, build schools, and maintain clinics and other infrastructure. The majority of services that meet the basic needs of our people come from our local authorities. If they do not have the money to do that, how do we expect them to perform their duties? I think the Minister should make a serious effort to find another $180 million and make these funds available to local authorities in 2016.

Last year the Minister for the first time, showed in the blue book what donors were contributing to supplement the resources of

Government. I do not think it was a great deal of money. It was about $600 million. Nevertheless, it showed us what they were providing to health, sanitation, water and other key priorities. I think it is a pity that this year, that this was not repeated because, if you look at what we committed to health for example, in our budget, a paltry $300 million. If you look at the Abuja commitments which we have, it is 15% of the national budget. 15% of $4 billion is a great deal of more money than $300 million, but if we add to that the Aids Levy is a the tax and we add to that what the donors are doing.  You will see that donors are matching US dollar for dollar in health; the donors are making a huge contribution to our health system. You begin to see that our health system is fairly adequately funded, but you do not see it in the budget. It is a pity that the

Minister does not show those kinds of facts and indicates to the population as a whole and to outside observers, just exactly what we are spending in specific areas.

Mr. Speaker, there is need to tackle and harness the Statutory Funds. The Minister has included the Statutory Funds for the second year in the blue book. This year they constitute $716 million but that excludes many items which are being collected by Government agencies such as NSSA, $300 million, ZINARA $200 million and AIDs Levies. If you add all of these statutory funds, it comes to something like $1.4 billion. If $1.4 billion was added to the pool of funds available to the Minister, we should have been talking about a budget of $5.4 billion and not $4 billion. We would be talking about a budget where the deficit was comparatively smaller. It would also mean that these funds would be spent under the discipline of the budget and under the scrutiny of this House. These funds are not subject to budget approval or scrutiny except during the post mortem by the Committee on Public Accounts.

I believe that it is time that we re-imposed the system which existed before hyperinflation in this country where all funds collected by all State agencies went to the consolidated revenue fund, and then it was allocated properly through the budget system in the normal way. In the Ministry of Finance and Economic Development, I think we have an outstanding team there. There. Mr. Speaker, if we do not give them the resources with which to work, how do we expect them to do their job, and to continue to give line Ministries discretionary power to spend these funds as they will, is a wrong policy in my view.

As far as the national debt is concerned, I am very pleased to see that the Minister has fulfilled his constitutional obligations to describe our national debt in the blue book. I am very pleased to see that a comprehensive list of national debt now exists, but I am concerned by the rapid growth in domestic debt. Just to give members of this House the following figures: In 2014, we borrowed a billion dollars on the local market because we spent $4.8 million and we collected $3.8 million. In 2015, we have done the same and we have borrowed more than a billion dollars. That is $2 billion of domestic debt. We took over the Reserve Bank debts of $1.7 billion, $1.3 billion in capital and $400 000 in interest.

In terms of ZEMCO, the Reserve Bank is currently taking over more than a billion dollars worth of debt from the commercial banks. That is a Government contingent liability. If you look at ZISCO Steel, there is $500 million of debt and the Minister has already announced that he is going to take that over. If you look at Sable Chemicals, I understand from Mr. Bimha that we are going to take over the debt in Sable Chemicals, that is another $150 million. If you look at CAPS, that is another $30 million dollars, Net One, that is $350 million, PSMAS where an attempt was made to put that on our shoulders, that is another $150 million. Mr. Speaker, if you add up all of these debt items, it comes to over $6 billion of new debt, all incurred since 2013 with absolutely nothing to show for it –[HON. MEMBERS: Hear, hear.]- I am deeply concerned about this and I think we have to keep an eye on this. Remember that the Minister may not incur debt unless he has the approval of this House. I am worried about the issuing of Treasury Bills on a rampant basis for all sorts of things without the authority of the House.

I think that there are three things which I would like the Minister to consider seriously as amendments to his Budget.  The first is the issue of the police fines.  Mr. Speaker, I as a Member of Parliament have to travel Zimbabwe on the roads on a regular basis.  If I travel to Chitungwiza, I am going there tomorrow morning and I will travel through six road blocks at least between here and Chitungwiza.  If I come here from Bulawayo, I travel through up to 18 roadblocks on the main roads.  Where on earth anywhere in the world do you find this kind of situation?  Quite frankly, police road blocks are completely out of control.  Coming here today on Enterprise road, I passed through two road blocks.  Mr. Speaker, the principle function of these roadblocks is not the safety of the population, not the road-worthiness of vehicles, not environmental issues but it is the question of raising money for the police.

THE HON. SPEAKER:  Order, order.  Can we tune down our whispers please, otherwise I cannot hear properly as to so direct the proceedings accordingly.  That little corner there by the door, please tune down your whispers and there is room up there at the back, you are terribly squeezed up there.  So, you can go up there and find some space.

HON. CROSS:  I am nearly finished Mr. Speaker Sir.  I just wanted to say that the Minister’s proposal to raise fines from $20 to a $100 is simply unacceptable.  What you are doing by doing this, is not only putting in the hands of every policeman in the country the opportunity to have money to put in their pockets, because you know exactly what is going to happen.  He will tell you that you are due to pay a fine of a $100 and he will then negotiate with you and you will end up paying him $10 which he will put in his pocket and say thank you very much and go home.  There will be no benefit whatsoever, either to the Police or to the Consolidated Revenue Fund.

I think that, not only is this uncalled for but it is unlawful because in terms of the law, any fine over a level three fine has to be imposed by a magistrate.  It think it would be more acceptable if they had to give us a ticket and then we went to a police station and pay where at least the fines would be properly administered.  But, this business of allowing them to claim spot fines of a $100 for minor misdemeanors on the road, Mr. Speaker, that is simply unwarranted.

The second thing which I want the Ministry to think about is the question of the 40% import duty on books.  In 2009, we signed the UNICEF Convention on Books and in terms of the UNICEF

Convention, books are supposed to be duty free for the educational and other institutions.  Now, I cannot see any justification for putting a massive import duty on books.  The amount of revenue involved must be tiny and the protection implications for local industry minimal.

The last thing that I would like the Minister to do is to relook at ZINARA allocations to local authorities.  Last year, he provided $20 million for the Rural District Councils and $10 million for urban councils.  That was 12 months ago.  Mr. Speaker, less than 50% of those funds have been distributed and ZINARA has spent $96 million on 17 kms of road between here and the airport.  We spent $206 million from Plumtree to Mutare and I cannot see any reason why ZINARA should be allowed to enter into these expensive contracts when in fact the majority of our roads, particularly in rural areas are in a disastrous state.  I would like to appeal to the Minister to increase the allocation from ZINARA and to enforce it so as to make sure that they send a cheque every month to every local authority in the country.

Mr. Speaker, the Minister has done an excellent job under very difficult circumstances, but I just want to say the principle task of the Budget in Zimbabwe is to provide the background for growth.  If we do not get our economy growing again, we are all in trouble.  First of all, it has to provide for macro-economic stability and here I am concerned about the printing of Treasury Bills - that is a form of money printing.  Secondly, it has to lay the foundation for the mobilisation of resources and I think the Minister has done a sterling job.  We need to recognise the work that he did in Lima, Peru which really provides for the future and the re-engagement with the rest of the world.

Thirdly, he needs to provide a policy framework for investment and I think that he has made a serious effort to do so.  If we follow the principles that are laid out in the ZIM ASSET and in the Ten-Point programme which was enunciated by the President, we would in fact see significant investment in Zimbabwe.

He needs to provide space for privatisation.  I am astonished that in the ten years that I have been in the House, we have not seen a single parastatal privatised.  If we sold NetOne, we could earn probably something close to a billion dollars, instead of having to carry the burden of a loss-making parastatal.  We need to provide for the privatisation of our parastatals on a significant scale but absolutely nothing has been achieved in the last three years in this area.  We need to foster competition and a competitive environment for business.

Mr. Speaker, the cost of doing business is simply too high and it involves a myriad of State enterprises.  It involves EMA charges, border controls, taxes and all sorts of levies which cover every aspect of business life in Zimbabwe.  If we do not get these conditions right, Zimbabwe will simply continue to stagnate and go backwards.  Thank you very much Mr. Speaker.

HON. DR. KEREKE:  Thank you Mr. Speaker Sir for giving me this opportunity to also contribute to the debate on the motion on the Finance Bill.  Firstly, I would like to say that the Budget Statement as presented by the Hon. Minister of Finance and Economic Development can be characterised as the best effort under competing requirements of our nation, some of which are now coming from unforeseen contingencies like the occasion of droughts.

Mr. Speaker Sir, I would like to applaud the august House for having sent representatives to France to participate in the discussions and negotiations which led to the agreement on the climate.  Matters of the weather must now rein much more prominently in our National Budgets because it is now a reality that yester-year, expectations of food security coming from the natural rainfall cannot be expected from now into the future.  When we look at the minimum import requirements Mr. Speaker Sir, for food security in our country, it ranges between 150 on the low end to around 250 million on an annual basis and those are modest expectations.  So, I think that in our 2016 Budget, there is need for the Treasury to work closely with the Ministry of Agriculture, Mechanisation and Irrigation Development to come up with ways that will augment measures already announced in the Budget but as part of the realignment, the debate process for the Bill before its final approval, we urge that Treasury re-looks at the provisions made to agriculture.

I want to concur very strongly with Hon. Cross in terms of the low hanging fruits, the funding that we can get from a lot of these statutory payments. There are funds that go into NSSA, ZINARA and several other statutory bodies. I think the spirit and letter of the laws that created these bodies was to create medium to long term funding for infrastructural projects for our country. Mr. Speaker Sir, it is a tried and known fact that if one goes into the region, Asia and the Americas, a lot of their development is internally funded through statutory funds. It could be those that are aligned to insurance, health insurance programmes or infrastructure statutory payments. But when you come to our local scenario, our statutory provisions accumulate between a billion to US $1,5 billion annually. If that money is directed towards productive assets or at least infrastructure programmes, it will create more room for our Treasury and then free limited budgetary resources for other purposes.

I want to recommend Mr. Speaker Sir, to Treasury that perhaps it is time that the Treasury issues mandatory medium to long term instruments. We should not be ashamed because that will ensure these statutory bodies are not abusing or at least misallocating funds which are meant for term projects. NSSA for instance, Mr. Speaker Sir, on an annual basis collects not less than $250 million to $300 million from all paying workers. That money is paid to NSSA on a mandatory basis, but when you look at their monthly annual application of those funds, you will find that NSSA requires between $2 million and $3 million for their own internal operational expenses. They would require between $5 million and $7 million monthly for reimbursement of claims.

The effect is that NSSA has a lot of excess cash at their disposal and we want to urge our Treasury, these are not normal times and we need to respond to urgent requirements of our country, let us consider issuing long term instruments to NSSA and those are mandatory but of course leaving them reasonable space for their own operational requirements on a day to day basis. They are resources that are there internally which can help our country.

Still on food security Madam Speaker, we applaud the provision in the Budget of seed packs and support to at least 300 000 farmers countrywide. The observation we want to make there, is that perhaps the mix of the support that is given should be sensitive to the natural regions in our country of rainfall patterns and expected benefits to our communities. If one looks at regions 3, 4 and 5, predominantly those farmers can hope now to do better if they focus on small grains. If you look at Masvingo, part of Manicaland and the Buhera area, small grains like rapoko, millet and other crops like mapfunde, they do much better under the circumstances. So, we urge Treasury to re-look and consider tilting the mix of inputs that are supported to be sensitive to the natural rainfall regions.

We carried out estimates Madam Speaker, in terms of what budgetary numbers can one talk about in terms of reviving the seed for small grains. Our country, an amount of between $5 million and $10 million ...

THE HON. DEPUTY SPEAKER: Order, Hon. Members. I think

it is very important to listen to what is being said because it concerns all of us. There are so many meetings here.

HON. DR. KEREKE: I reiterate that assessments that we have carried out wanting to look at the possible provisions in our Budget to reactivate and revive the production of seeds for small grains, indicative estimates are that between $5 million and $10 million annually, if carefully targeted at small grains production programmes with selected farmers, we are able to produce seed that can cover the whole country in terms of small grains production. So, we urge our Treasury to virement and re-look at the numbers to see if provision can be made to increase financial resources that go towards small grains.

The issue I want to move on to Madam Speaker, concerns the financial services sector. We were given a presentation by the Hon. Minister of Finance and Economic Development that part of 2016 funding for farmers is going to come from our banking sector. Indicatively, a number of about a billion dollars was given that the banking sector is going to support our farmers with. There were also publicised statements from the banking sector itself acknowledging and committing that they were going to come on board to support our farmers.

When one looks at the numbers on the ground Madam Speaker, we want to urge our banking sector to also be sincere when they make public pronouncements. The billion dollars that the banking sector is talking about, is really a number which is speaking to the historical stock of lending in the agricultural sector. This is a fact. It is not correct that the banking sector has set aside and has provision for a billion dollars in new money. In fact, assessment of figures recently publicised by the Central Bank Madam Speaker, which places deposits in the country at around $5 billion, clearly shows that there is room for between $200 million and $250 million for new lending to the whole economy including agriculture. So, when we look at our strategy as a country and assess the resources we are setting aside for agriculture, there is more work that needs to be placed in emphasising consistency in our numbers, particularly what the banking sector is claiming to be contributing to our farmers. Without farmers Madam Speaker, the country’s recovery will take much longer than we would expect.

The coming season unfortunately, has another downside of drought and we applaud the provisions in the Budget for resources to go towards irrigation rehabilitation. We want to say more effort should be put in ensuring that our outlying rural communities have pockets of water bodies from which they can harvest the little rains that are coming and also come up with community irrigation systems that would augment 20 – 50 families together. A drip irrigation system is done on a plot of 30 – 50 hectares and that would go a long way in neutralising the adversities of drought.

I want to further look at the need for us as a country to respect Finance Bills that would have passed through our august House and the legislative framework as a whole. The tendency Madam Speaker, is that we meet, debate and approve budgets but when you look at the actual reality on the ground, match actual disbursement against what was budgeted for, you would find that most ministries or departments would not get that which was budgeted for – [HON. MEMBERS: Hear, hear.] – Even though there is a Supplementary Budget. Just to give an example closer to home, if you look at the institution of Parliament, annually how much was budgeted to go towards Parliament in the year 2014 and 2015, do a quick check and say what was the actual disbursement each year against the Budget, you will see that there are mix-matches. That said, we need the august House to be in the culture of monitoring and reviewing through our oversight function so that the plans that we sit and set ourselves are implemented during the course of the year.

I want to look at an area which is at the heart of the constituency I come from which is Masvingo and Bikita, the Beitbridge – Harare road, we can characterise it as the main artery of the economy in terms of rolling stock by road of commercial cargo, passengers and other strategic movements that keep our economy afloat. It would appear, yes there were legal hurdles that delayed the pronouncements that the Budget has now said the project can now start to move. There is need for, within the context of my earlier submissions, that let us virement and make use of resources that are internal that we know are lying idle to kick-start some of these strategic projects. If we wait for external financing partners to come in, we can take another decade before the Beitbridge-Harare road is restored. It has become a death trap and a source of productive inefficiency to our economy because traffic cannot flow smoothly on that road, which is really in a state not too good for the size of our economy.

I want to end my contribution by urging the House to give the

Finance Bill maximum support. It is our country and us who sit, discuss and shape our future. The Lima progress that has been made needs to be commended. The Budget has indicated that during the first half of next year, we expect some movement in that respect and we want to applaud Treasury and encourage that all efforts be made to make sure that we derive dividends from that initiative.

HON. MUKUPE: Thank you Madam Speaker for giving me the

opportunity to take the floor. My contribution, firstly on the issue of the expenditure side, I basically would want to applaud the Minister of Finance and Economic Development given the circumstances which he is operating under, there was not much room for him to manoeuvre but I just want to bring your attention to the wage bill savings that were proposed in the Budget.

There was a proposal that there is going to be $170 million in wage bill savings. When you closely analyse the wage bill savings you actually notice that most of them are actually focusing on the youth officers, student teacher allowances and it is predominantly wage savings that are really affecting the young people. I would want to believe that as a matter of policy, we would want to basically invest most of our money in the youths as opposed to investing most of our funds into the aged workforce. So, I would actually urge that that is something that needs to be really looked at because what we have is that, we have got a situation that most of the young people that are coming out of tertiary institutions have got nothing much to do. If we were going to send the youth officers and the young people back into the streets, I       do not think it is a situation that will augur well for our nation.

The second thing that I want to look at is that when you look at the revenue side, I would want to believe that there are three revenue drivers for our nation namely; mining, agriculture and the industrial sector. When you look at the mining sector, I would want to basically applaud most of the policies that have been put in place. My only contribution in that space is that, we probably need consistency when it comes to some of the policies that we are putting in place and especially, issues to do with the tenure that we have got for most of the mining resources that we have.

When you look at agriculture, I think there is a big elephant in the room which was not probably touched on. At the moment, it is not really clear in as far as the land compensation is concerned. We embarked on a policy where we acquired a lot of land and I think the policy that we have got is that all the land that we have acquired, we are going to be making payments on improvements to the land to the white owners. we have got a situation where at the present moment, the liability that we have created over the years, is liability that we still have not brought in the books and we do not know and have not made any provisions in terms of what is actually the extent of the liability that we have. So, I guess when we are looking at the issues of some of the Treasury Bills and all the monies that we are raising, this is an issue that we also have to take into consideration.

The other issue that I also want to point out is on the ease of doing business. I would want to applaud our Minister of Finance and Economic Development for setting up the Special Economic Zones but one of the issues that I think could become a hindrance for us is the antimoney laundering laws that we have got in this country. There is really a need for us to go and review the anti-money laundering laws because if we are going to be able to attract FDIs into the country, it is also important that we make sure that the laws are conducive for people to be able to bring money into the country.

At the present moment, I think if you have got a situation where you want to bring FDIs into the nation; it is almost as if you have committed a crime by wanting to bring money into the country. I think in terms of the Special Economic Zones, it could be something that is important to our nation to also set up a Financial Special Economic Zone. If I am bringing my money to invest in the country, why should I be subjected to all kinds of questions as to where I got my money from?

Allow me to be able to build the country and invest money in the nation.

Touching on the industrial sector, I think one of the issues that are bedevilling almost every company in Zimbabwe is that most companies in Zimbabwe are functionally bankrupt. What we actually need to have is a situation where we basically look at our bankruptcy protection laws.

We have to look at situations where we give more tax holidays. I would want to believe that almost all the entities, every day when you go through the papers, you have got situations where accounts are being garnished, be it on the issues of NSSA and PAYE dues. I think it is high time we actually have tax holidays being given to some of the industries so that we give them the breathing space that they need to be able to kick-start the industries. I thank you Madam Speaker.

HON. KHUPE: Thank you very much Madam Speaker. First of all, I would want to say that a Budget is supposed to respond to the needs and aspirations of the people. A Budget is a development tool and development is the ability of a country to satisfy the needs of the people using its own resources. The needs being food, shelter, health, education, jobs and clean water amongst others.  This budget, in its current form, I am afraid that it is not going to be able to satisfy the needs of the people.  Looking at the fact that US$3,191 billion is going to go towards employment costs, US$384 million is going to go towards operations and US$315 million is going towards capital expenditure.  With US$384 million, I do not think that we are able to provide jobs, provide for the health sector, the education sector or provide clean water to the communities.

I think it is also important that we invest in human resources, such as youths and women, if we are to develop in this country.  Youths constitute 40% of the population and they need jobs, which are not there.

Like I said earlier on, this budget will not be able to provide jobs.  Women constitute 52% of the population and currently, Zimbabwe is highly informalised with more than 80% of the people who are in the informal sector being women.  They cross borders everyday to Zambia, South Africa and Botswana to go and buy products for resell.  The reason why they are crossing borders is because Zimbabwe is currently not producing.  I am afraid that the Minister of Finance has reduced the travelers rebate from US$300 to US$200.  What this means is that there is going to be a reduction in the incomes of the women in informal trade, reduction in livelihoods of those women and a reduction in

Government’s revenue.  I understand very much that the Minister is trying to protect our local industry, but the reality is that industry is not operating.  This is why these women are going to buy outside.  I do not think that if we were producing they would be going outside to buy those products.   I therefore recommend that the traveller’s rebate be increased from US$300 to US$400 0r US$500 because currently we are not producing anything.

In-so-far-as women are concerned; Hon. Nyamupinga spoke about this issue as well.  We have been talking about a women’s bank, so that women have access to capital and are able to grow their businesses from micro to small, small to medium and medium to larger co-operatives.  As you know that women are more than 52% of the population, half of the food which is consumed comes from the women. They contribute more than 80% to the GDP of this country and as we speak right now, Government is being sustained by money from women who are crossing borders to buy and sell.  We want a women’s bank to be operationalised so that women have access to finances.

I would also like to talk about health because health issues are close to my heart.  It is Government’s responsibility to provide available, accessible and affordable primary healthcare, which is of quality.  With this budget, I do not think that Government is going to be able to provide quality healthcare.   I therefore propose that the health budget be increased in line with the Abuja Declaration of 15%.  I am saying this because these days there are so many diseases.  There are non communicable diseases like cancer.  I am a cancer survivor and I know what I went through.  Just this morning, a woman called me from Gwanda.  She went to Mpilo Hospital for cancer treatment but she did not get any joy.  So, she was calling me to ask if she could come to Parirenyatwa, here in Harare where she thought she might get something.  I told her to go back to Mpilo so that she could be referred to Parirenyatwa, if they are able to treat her.  So many people are dying from cancer and it is indisputably a rising epidemic.  It has become more fatal than HIV and this is part of the reason why I am saying the health budget must be increased.

Madam Speaker, maternal mortality is 960 out of every 100,000 live births.  I know that some people may say that it is 570 but what I know is that many women are still giving birth at home, especially in the rural areas because of user fees.  Women are unable to pay for maternity fees and I am proposing that user fees be completely scrapped because when women are giving birth, they are performing a national duty.  They are giving birth to MPs who are in this House and the Ministers that we have here.  They are giving birth to everybody in this country and as a result they cannot be punished for performing that national duty.  I therefore propose that user fees must be scrapped and hence the reason why I am saying the health budget must be increased.

Hon. Nyamupinga spoke about family planning.  Family planning saves lives, reduces maternal mortality, child mortality and HIV.  It also empowers women and girls because they will be able to decide when to have children and how many they will have.  This is why I would like to propose that the health budget be increased so that the family planning budget is increased from the current 1.7% to 3%, so that we are able to deal with all the issues that I have spoken about.

Lastly, I would like to talk about corruption, but first of all, I would like to congratulate our Speaker of Parliament, Advocate Jacob

Mudenda for being appointed the Goodwill Ambassador for the Fight Against Corruption in Africa.  Corruption is a cancer which has destroyed lives of people.  Every dollar which is stolen by an official is a dollar which is stolen from; a pregnant woman who wants to go for antenatal care, a boy or girl who wants education and communities who want clean water.  Corrupt people do not belong to society but they belong behind bars.  This is why I would like to urge the AntiCorruption Commission to make sure that whoever is found wanting is put behind bars.  Government must make sure that it complements the efforts of the Commission by making sure that if the Anti-Corruption Commission bites, those people who have been bitten are not rescued by the Executive.  Let those who are found wanting be put behind bars.

Let me conclude by saying, a budget is a development budget and it is supposed to respond to the needs and aspirations of the people. But this budget, in its current form, I am afraid it is not going to be able to satisfy the needs of the people, create jobs, revive agriculture and cater for health, education and other needs that the people require.  I thank you.

HON. MANDIPAKA:  Thank you Madam Speaker.  My debate is

going to be very short.  It is actually a follow up to what has been observed and raised by Hon. Cross.  I think there is some measure of truth in his observation in as far as police roadblocks are concerned.

Police operate in a fashion that they do not scare members of the public. When they go out to carry out roadblocks, they must be performing a variety of duties, for example checking of vehicle defects.  They might also be checking stolen vehicles, unlicenced drivers, criminals that intend to escape and so forth.  They do quite a number of things when they go to carry out these roadblocks.

I think as a nation Madam Speaker, it is incumbent upon us to be able to give Police resources so that in a way, we try to curb corruption and bribery that occur on our roads, day in and day out.  When I checked at the Police budget, you would find that there is an idea that the Police had mooted to computerise, to have technological gadgets so that instead of sending troops and troops of police officers on the roads, to do roadblocks, they can emulate what ZINARA and the Registrar has done in terms of having computers which can actually monitor what is taking place on our roads.   We will have one police officer manning a computer instead of ten police officers manning a road block.  That way, I think it is going to be better to try and curb corruption on our roads and we redeploy all those police officers from the roads to other duties at their various police stations.  I noticed that there is no budget for the traffic monitoring system that the police had mooted.  So, I want to implore upon the Minister of Finance and Economic Development to look at the Police budget and make sure resources are created to ensure that this traffic monitoring system becomes a reality.  Once it is a reality,

I think we will have curbed police corruption.  I think we will have beefed up manpower resources at various police stations throughout the country.  I am making this observation from an informed position.  I thank you.

HON. MISIHAIRABWI-MUSHONGA:  Thank you Madam

Speaker.  Let me thank the Speaker through you Madam Speaker for the sensitivity that he showed to me earlier on over the issue of children.

Let me also thank the women Members of Parliament and the other male Members of Parliament who were supportive to that process.  Thank you very much.

Madam Speaker, I stand to raise just a few issues. The first one that I would want to note is to congratulate the Hon. Minister of Finance and Economic Development.  Let me say I want to congratulate him because having known him for quite some time, I am impressed at his ability to have been able to now deal with the economic issues outside the political issues – [HON. MEMBERS:  Inaudible interjections.] – I will explain why I am saying so Madam Speaker.  But before I get into the essence of what I am saying, let me just raise two issues which I think a number of people have already raised.

The first issue Madam Speaker, is to deal with the issue of fair regional representation.  Madam Speaker, I will continue harping on this like a broken record.  One of the issues that you do not find in this Budget is a way of trying to make sure that when you put out resources, you fairly distribute them to regions.  Let me just give you an example of I am concerned.  When you look at the issue of agriculture, we now have a thinking and assumption that agriculture is about crops and that it is not about livestock. As we speak right now Madam Speaker, Matebeleland South is hit on issues around livestock and we know that generally their livelihood comes from livestock.  I see two issues that are interesting in the Budget.

On the last Budget, the Hon. Minister of Finance and Economic Development actually reintroduced the levy on export of raw hides.  I could not understand what that was all about.  This time around when I went through the Budget, I found that he had said something about removing the cattle levy and I was quite excited, but when I then read the statement, he actually did not remove anything on the cattle levy, he indicates that the ten percent is too high as a cattle levy because your generality of the people are not getting anything.  He then says I am going to do consultation and yet this is the same Minister who in removing tax on wheat and flour, he does it immediately but refuses to do that as far as issues to do with cattle are concerned.

I think when you then have certain people from particular regions complaining Madam Speaker that they think that things are not being done fairly, it is because of these things.  I hope that when he responds, he will be able to explain to us why in realising that he needed to deal with the cattle levy, why did he just deal with it given the current challenges that we are dealing with.

The second issue that I want to raise Madam Speaker is to do with my usual issue around sanitary wear. This time around, a colleague of mine decided to train me a bit on how to communicate with males. She said perhaps if I try to communicate with them from an emotional point of view, they do not hear me, so today; I am going to try and talk to the Minister in terms of figures and numbers.  I hope that if I do tell him about figures and numbers, it may persuade him to actually see that it is important to do zero rating on sanitary wear.

Madam Speaker, every month, there are 3.673 914 women that are menstruating – [HON. MEMBERS: Hear, hear.] – Hon. Minister, the cheapest sanitary pad is 0.99, which means it costs a dollar.  If you are looking for circulation in terms of money, it means you literally can have US$3 million that you get as money that circulates in your economy.  So, even when you are talking about liquidity, you would have US$3.6 million that is circulating.  It is the cheapest because it is not imported.  When you look at the imported one, it costs US$2.65, so let us just round it to US$3.  Let us assume that you take out US$2 million women and you say the one million will be covered by the 0.99 cents and you take the two million and you multiply the figure by three, it means you are having in your economy every month, an assured US$6 million.  The reason why the Hon. Minister is not getting US$6 million circulating is that the majority of women who are menstruating every month are unable to buy sanitary wear – [HON. MEMBERS: Hear, hear.] – So if you lower that cost, you get money that is circulating in the economy.  For your information, Hon. Minister, we have been trying to talk to companies like TelOne, to see whether you can do the sending out of money, for example to your child who is at a school.  If we were to reduce that amount of money, you were also getting money from just using the money that we will be sending through the social media situation.  So, you are getting a double amount of money.  I am asking Hon. Minister; I know that one of your issues that you have raised upon this subject is that you are protecting local industry.  I have gone to do an investigation, there is only one company called Farai which produces sanitary wear.  We are saying for us to balance that issue of zero rating in terms of the imported sanitary wear, so that it is cheaper and more women can buy it, you then can remove tax on the importation by Farai of the things that they use to produce sanitary wear.  So, it is a win-win situation but we cannot punish women for one particular industry because clearly, even that industry cannot have the capacity to be able to produce sanitary wear to cover     3 000 000 women.  It is not possible.  I am sure the production capacity of Farai can only be at most 500 000 per month.  So, you have a whole  2 500 000 women sitting there who could still buy sanitary wear.  I was hoping, Hon. Minister, if you could look at this so that you do not have to worry about Priscilla talking about blood and things that make you mad.  So, just look at these figures that I am talking about.

Let me quickly go, Madam Speaker, onto the issue that I was raising about Hon. Chinamasa’s what I see as his movement from just being a lawyer to being an economist.  Madam Speaker, one of the things that you find in this budget and sadly so, is a struggle of someone who now understands economics, who is trying to balance it with some of the political issues.  This is the first budget, and I want to congratulate him, from a Minister who is from the ruling party which clearly and unambiguously states that the kind of problem that we have in this country is the problem around debt, in fact you could just call this budget a debt management budget.

In that problem of debt, he does not stop from merely talking about it as a challenge.  He proceeds to talk about what are the remedies that we need to do to make sure that we deal with the issue of budgets.  What I then find, which is sad, is that whilst you can clearly see that he is  very clear in terms of what to do, he then is stuck or hamstrung by the political ideologies that he continuously has to fight with.  The moment you say you have a debt problem, then you have no choice but to be very clear about the framework that you are going to use to be able to deal with issues around debt.  You cannot find any other way of dealing with it.  You cannot say that you are going to deal with debt by merely going to speak to the people that we owe money because we have no money to pay them back.  So, we need a very clear framework of saying what is the message that we are giving to the international community?

Here comes the problem that he faces as Hon. Chinamasa; he then says to us he has this Staff Monitored Programme from the World Bank.  So, you cannot separate the Staff Monitored Programme with the issue around debt management, but the Staff Monitored Programme is forcing him to do things that are going to be politically at variance with what the political establishment would want to say.  So, the Staff Monitored Programme is very clear.  You have to deal with the issues of wages, you have to deal with the issue of how big your staff complement is and your civil service.

So, instead of him coming out very openly and saying, ‘what I am saying here is that there is going to be the retrenchment of civil servants’, he comes in and says that there is going to be a rationalisation of civil servants.  It does not say anything.  Just say what you think is economically okay, even politically if it is going to put you in soup.  I can understand where he is coming from.  There is a time that he said that there is not going to be any bonus and he was burnt; fingers, head and anything else that you can think of.

So, I am sure in doing this budget he was sitting there and saying,

‘if again I say there has to be a retrenchment of civil servants, there is going to be another somebody at some meeting who is going to say I am not going to do this’.  The problem with that, Madam Speaker, is that it does not give us the proper thing to debate because if he had said I am going to retrench civil servants, we from both sides of the House would be saying what is that percentage?  What are you going to do to make sure that you are not violating the labour regulations?  Now, we cannot even debate that because you have left us hanging by saying you are going to rationalise and yet we know that is the biggest issue that is around it.

I spoke about the issue of debt, Madam Speaker.  I had hoped that because he went to town about the issue of debt management, he would at least give us the basic framework of what he is offering Post Lima.  What exactly are you saying to this international community?  Let me just give you an example because I was part of the re-engagement team, so I know what I am talking about.  If you are going to do a proper debt management, you cannot do it unless you deal with the issues that are to do with those that you owe money.  You cannot do it as an individual country.  There is no country in Africa that has been able to manage issues of debt without having either a grandmother or grandfather who stands up for them within that framework of the international community.

Madam Speaker, we can say as much as we want about debt management, unless we have a centre somewhere.  Those countries that were associated with France basically, used France to be the grandmother that stood up for them.  So, they are the ones that will basically be your guarantor, so to speak.  We cannot go there and say, as Zimbabwe, we want to say this is how we are going to pay without necessarily having someone in the international community to do that.  That means a political shift in the way we do business.  It means we have to look at the international community and say are we going to deal; are we going to let the British become our grandmother or grandfather?  Are we going to have some of the northern countries that we had relationships with during the liberation struggle?  Who are we going to have a relationship with so that we can push the debt management issue?  Which is why I am saying I found an ideological problem that Hon. Chinamasa, much as he was saying I am an Emperor, I am naked, look at me, he was then unable to say this is where I am going to get my clothes from so that I can dress up.  So, he gives us the story of why we have a problem, but he does not go as far as picking up the issues that will address it.

Madam Speaker, I also found a contradiction.  When we are talking about our foreign policy in this country, we talk about looking East and yet in this budget, I do not find any policy that speaks to any definition of what our foreign policy is and I am disappointed, Madam Speaker.  Right now, at an international level, the one area that we as Zimbabweans could be pushing on and getting resources from is the issue around South-South Co-operation.  The reason why South-South Co-operation works is most of these countries that are in the SouthSouth Co-operation are countries with which we can relate with very differently.  I know Hon. Khupe initially, when she was talking about the Women’s Bank, not today, had very good things that had happened around the South-South Co-operation.  I did not see any of that happening.

Regional integration - when we talk about beef export, why are we still talking about the EU when we are not talking about selling our beef to the DRC.  So, this is why I am saying ideologically, we do not seem to be clear about what it is we want to do.  We have a political megaphone that we give on the other side, but at a policy level, we do not come back to do what we are supposed to do.  So, my simple conclusion, Madam Speaker, is that perhaps Hon. Minister Chinamasa, since he has been brave enough to show us warts and all, what he needs to say to us now is how do we start removing those warts.  This is why I said I want to thank him very much because even the sanction word is no longer here.  He understands it does not work.  It is not an issue.  Let us move with the real issues that are in this budget.  I thank you Madam Speaker.

HON. CHAKONA:  Thank you very much Madam Speaker.  I

would like to debate on this motion, but I want to concentrate on some observations regarding our sector, the ICT sector.  I have realised that in the budget, the Ministry of Information Communication Technology, Postal and Courier Services was only awarded $6 million. Madam Speaker, I just want to highlight some developments in the sub-Saharan sector area where the ICT sector has been growing by close to 38% over the past four years. As of 2014, the ICT sector had a total of 329 million subscribers in sub-Sahara alone. It also grew by close to 7% throughout sub-Sahara. What I have observed is that in Zimbabwe, the ICT sector is shrinking and the revenues are going down on an annual basis.

Madam Speaker, my observation hinges around the turnovers that are there with some of the ICT companies throughout the world. I have seen that we have …

THE HON. DEPUTY SPEAKER: Order Hon. Member.

HON. CHAKONA: My emphasis is to say if we give enough

attention to the ICT sector, our economy will also grow like what is happening in other countries. In 2011, …

THE HON. DEPUTY SPEAKER: Order Hon. Members, they

are no longer whispers now, they are rallies. Would you please control yourselves?

HON. CHAKONA: Madam Speaker, I just want to give you some examples of what is happening worldwide and also in our region. In Q4 2011, Face book had revenue of 188 million and by Q4 2013, revenues had actually grown to 241 million and the annual revenues were at

US$2.5 billion dollars. Google in 2009, their revenues were around

US$50 billion. Apparently by September 2014, the revenues rose to US$150 billion. Linked it, revenues started in 2011 around $100 million; apparently their turnover is over $1.1 billion. This just goes on to illustrate what is happening regionally if people give enough room and emphasis to the growth of the ICT sector.

It is saddening to note that I am holding Econet’s unaudited statements for 2015 as at 31 August, 2015. Madam Speaker, I just want you to analyse these figures so that you know what I am talking about. As of August 2014, Econet had a subscriber base of 9 million subscribers. As of 2015, we had 9.1 million subscribers. Revenues for overlay services grew from $2.5 million in 2014 to $3.5 million and then in terms of contribution, it went up from 7% to 11%. However, when it comes to the total revenue including voice services, revenues went down from $392 million to $323 million. That goes to show that whilst in subSaharan Africa, ICT sector is growing by 7%. In our country, it is going down by 21%.

So, this goes to show that if we are to emphasise and look at the ICT sector, give it enough space and look at what we want to achieve, this sector can grow. What I have seen is that in terms of revenue collection, whilst the world-over, every other Government is going eGovernment, we are doing it the manual way and we are collecting our revenues manually hence,..

An Hon. Member having passed between the Chair and the Hon.

Member speaking.

THE HON. DEPUTY PEAKER: Order, Hon. Member, you may

not cross between the speaker and the Chair.

        HON. CHAKONA: Madam Speaker, the fastest way to grow our economy is to review the growth of our ICT sector and say how we can use ICTs to grow it. What I am seeing more and more is that we are not utilising the growth of that sector for the benefit of our Government and revenue collection. What I also want to emphasise at this point is that whilst ZIMRA is doing a very good job of collecting revenue, what I am seeing is that they are becoming more and more inefficient. Whenever you want to engage in any business activity, you are asked to produce a tax clearance certificate. If you look at it, this does not really make somebody pay tax. What we should be doing is to say, let us use ICTs to collect revenue. What I am proposing at this stage is to say the Minister of Finance and Economic Development is supposed to look at taxing at source, using ICTs so that we can tax that money at source, so that we maximise on the collection of Government revenue.

Madam Speaker, I just want to give you other figures that are very critical so that you can see how other countries are doing it. For example, Samsung is a company that is in South Korea. Its revenues now are at $189.5 billion and this is an ICT company. Its market capitalisation is $177.51 billion. We do not even have one ICT company that is capitalised to the tune of $1 billion in Zimbabwe. If you look at it, Apple right now, their revenues are now at $182.79 billion, market capitalisation $740 billion. This goes to show how if we give space to ICT companies, our economy can grow. Our economy can actually perform better.

Madam Speaker, it is only in Zimbabwe where an ICT company is retrenching. It is only in this country. In other countries ICT companies are growing and they are employing more and more people.  So Madam Speaker, my contribution right now is to say, let us emphasise on the usage of ICTs, that is the fastest growing sector in the world. I thank you Madam Speaker.

*HON. SHAMU: Thank you Madam Speaker, for allowing me to contribute my thoughts in this august House.  Firstly, I want to thank Hon. Chinamasa for the Budget that he presented to this House. The Budget presentation outlines how the National Budget would be distributed to the various Ministries. Secondly, I agree with Hon. Misiharabwi-Mushonga when she applauded the Minister’s performance.  The Budget is driven by ZANU PF’s people oriented policies.   The Minister is guided by the aims and objectives of the ruling Party, ZANU PF.  When Hon. Chinamasa presented the Budget, he paid tribute to His Excellency, the President, Cde. R. G. Mugabe for his guidance and support. This reflects that there is no discord between Hon.

Chinamasa, His Excellency, President of the nation and the ruling party ZANU PF and the interests of the people.

Madam Speaker, I agreed with Hon. Chinamasa spoke when we were in Victoria Falls during the ZANU PF 15th Annual People’s Conference when he highlighted that what has caused us to be hamstrung economically.

THE HON. DEPUTY SPEAKER:  Hon. Members please, hon.

members in this august House would like to hear what the Hon. Member is saying.  If you want to debate on your own and you have your own issues, I think you can go to the Members’ dining there.

*HON. SHAMU:  Thank you Madam Speaker.  Hon. Chinamasa

talked about two things that have negatively impacted on the economy.

It is the debt burden and the illegal sanctions that have been imposed on this country.  My request to this august House is that, as we discuss on how to assist Hon. Chinamasa, all the political parties that are represented in this august House should agree that we must speak with one voice when we talk about the economy of this country. We should call for the unconditional removal of the illegal sanctions with one voice.

Hon. Madam Speaker, my third point is in support of the call made by Hon. Chakona which was emphasised yesterday by the Chairperson of our Committee, Hon. Chamisa when he said that, this coming year, the Government as a whole – all the Ministries should be ICT compliant.  There should not be any Ministry that is not ICT compliant to ensure communication and information dissemination through modern technology.  ICT is a game changer.  For example, in all our border entry points or immigration points, there is a lot of corruption that is taking place and this can actually be eliminated through use of ICTs.

Turning to health – treatment of people, diagnosis and monitoring of stock of medication and the traffic of patients, ICT can be very helpful.  No one will be given wrong treatment due to lack of information.

Hon. Mandipaka was correct on ZRP. If we support the police with the use of ICTs in controlling traffic, offenders can be accounted for including payment of fines.  Let 2016 be the year we give the Ministry of  ICT- it is over arching responsibility.  Fortunately, Hon. Mlambo who is seated next to me is Hon. Mawandinzira’s deputy.  May their Ministry carry out an exercise to find out how much money was allocated to other ministries for ICT purposes and compare that amount with their Budget.  Why not procure all ICT related equipment through the Ministry responsible for ICT.   The principle of economies of scale comes into play.   I recommend that within the Government, everything that has to do with ICT should be procured through the Ministry of ICT.

Turning to agriculture, Madam Speaker, my Constituency has many farmers found in small scale and newly resettled areas.  Some areas have sand soils, others have wetlands.  The most affected are

Msengezi small scale farming area, Neuso and Nyatsanga in Mhondoro.

Unless steps are taken to avail inputs in time, poor harvests will be the order of the day.  Through research and use of ICT, the Ministry of Agriculture can assist farmers through timely information on what has to be done and mitigate on the negative impacts of climate change.

The land audit by Hon. Mombeshora, the Minister of Lands should not only look at land allocation and boundaries but also include the issue of productivity.  Take note of the challenges faced by farmers and rural folk in general.  This effort should be complemented by establishing as to whether banks that are supposed to support agriculture are doing so.  Hon. Kereke talked about it. Some financial institutions claim to be assisting farmers yet they are not doing so.  This area needs to be seriously investigated and measures taken for the banks to conform.

Agriculture is the backbone of Zimbabwe’s economy.

Lastly, but not least, Madam Speaker I join Hon. Khupe in supporting Hon. Mudenda, the Speaker of this august House in his role in the fight against corruption and that this House should come up with a Parliamentary Committee that includes all political parties represented here, to lobby all countries that imposed illegal economic sanctions on us and call to unconditionally remove them.  I equate sanctions to corruption.  As we fight corruption, the people of Zimbabwe must with the same zeal fight against the illegal economic sanctions. Corruption and illegal sanctions are one and the same thing – enemies of our economic recovery.  Madam Speaker, I would want again to thank you for the opportunity that you have given me to add my voice to this debate.  I have the hope that we will see a change for the better in 2016.

I thank you.

HON. MPARIWA:  Thank you Madam Speaker for giving me

this opportunity to join others who have spoken before me on the 2016 Proposed Budget.  When I came for the budget presentation by the

Minister of Finance and Economic Development on 26th November, 2015, I had an expectation.  That expectation was to hear the Minister talking about better service delivery to the people and the nation.  To me that is key in terms of the communities and the country as a whole.

Madam Speaker, this budget to me does not cover anything to do with the people, does not talk about the poor and does not care about those that are in need of protection from the Government.  Why do I say so Madam Speaker?  I will tackle the first item, which is social protection programmes and safety nets.

Madam Speaker, Section 298 of the Constitution says,

“Expenditure must be directed towards the development of Zimbabwe and special provision must be made for marginalised groups and areas.” This is where I draw my passion and focus from.  When you talk about the vulnerable categories, you are talking of people with disabilities, the unemployed, the elderly, child headed families, female headed households, children in the streets, the destitutes who are all over the country, et cetera.  Madam Speaker to anyone in this House who represents communities …

THE HON. DEPUTY SPEAKER:  Order, order!  This time I

name Hon. Guzah.  That is too much.  I think we have to listen to what is being debated here.  Hon. Members, we need to benefit from debate from other Hon. Members, not to just talk.

HON. MPARIWA:  Thank you Madam Speaker for that

protection.  I really wonder Madam Speaker because the groups or categories that I am talking about are in the Hon. Members’ communities.  We do have them and we come here to represent them.  Hence, caucusing with your colleague when I am mentioning this particular category, I am disappointed Madam Speaker.  On programmes like food mitigation, when one is disadvantaged or they are crippled in their houses and they are not counted on, no one will realise that anything that is supposed to benefit that particular individual reaches them.  That provision will just pass them.  That is how critical this component is in terms of the safety nets that I looked at in the Budget to have a priority by the Minister in terms of allocation.  I could see that there is a glaring attempt in terms of minimizing the allocations from 2013 and 2014.  It has been a pattern.

I implore the Minister Madam Speaker to actually look at these particular programmes in terms of social protection and safety nets.  I targeted food mitigation; when food is being distributed.  On page 35, the assumption is that we are going to have normal to less rainfall patterns but if you listened to the radio, the information is saying that we are going to have El Niño and we may not have adequate food.  Hence, everyone here, even where we come from, when we used to have good rains or better harvests, we may be affected by such kind of pattern in terms of climate change.  It is important that the Minister is supposed to look at food mitigation in terms of targeting everyone from January to December. I know for sure that in the early times, we would target just three months because in March, people would start harvesting.  That cannot be the case and we cannot assume that people will have food from March.  Therefore, there is need for the Minister to revisit the programmes that cater for food mitigation.

Also if you go to BEAM Madam Speaker, there is $10 million that has been allocated for Basic Education Assistance Module which has covered 33 000 children instead of 600 000 children.  Each one of us has had a case where communities are phoning you to ask if you could assist with school fees.  I implore the Government because I understand that we are now on our own.  In 2009 to 2012, I vividly remember that we used to have UNICEF and DFID assisting the Government in terms of mobilizing resources to the tune of $30 million.

I also implore the Minister to re-look at the BEAM programme and to actually partner.  The Government needs to identify partners.  We cannot do it alone; we need to approach development partners and friends who can mobilise resources with the Government so that the

BEAM programme actually covers every deserving beneficiary.  Hon.

Members do have them in the communities.  When I looked at this Budget, I simply looked at the windows where we have children, women, people with disabilities, et cetera.  The disadvantaged groups are the ones that I looked in the Budget and what programmes and how much was allocated in terms of service delivery.

Madam Speaker, if you look at social dialogue, I do not think Government is serious when they talk about social dialogue.  If not well resourced, we have a problem. People that are not talking to each other will end up having disputes.  What do I mean by this Madam Speaker?

If Government, business and labour are not talking, then we have a serious problem.  You will have strikes, sit-ins and unproductive workplaces where people are arguing all the time. I do not think the Government is willing to have such despondency.  There is need to fund the social dialogue process in the form of the TNF where people engage themselves to talk about issues.

I quickly move to the Kadoma Declaration where we deal with the country’s risk factors such as what the employers can do in terms of development and improvement in terms of the welfare of workers, what the Government can do in terms of leveling the playing field and also enabling environment for business and growth, what the workers can do in terms of depoliticisation of the workplace. For instance, where workers are not allowed to wear their party regalias, cannot chant slogans and cannot talk politics and start fighting but do business so that they do production at the workplace.

I am glad that in 2010, we launched the Kadoma Declaration with

His Excellency, the President with the assistance of ILO.  I do not think the President would want this project to die because of lack of funding.  I know the operating space may not be enabling but it is my humble submission that production happens in industry.  When we talk about the three, this is where production and development begins.  There is also need Hon. Minister to quickly talk with your friends in Government to bring the TNF Bill to Parliament for adoption so that the discussions and agreements at TNF level begin to be more binding and people honour them.  Currently, it is termed as a talk shop.  Others may just renege not even to come to the TNF because nothing is binding but when we have a Bill that will have passed through Parliament, then everyone else is actually to toe the line and the decisions that are therefore to bind them.

I move on to employment creation Hon. Speaker Sir, I looked and looked in the Budget to see on whether there is space that the Minister  had made this as a priority in a country where we have 84% of the labour force who are labour active doing informal sector. I could not see anything and there is not even an attempt. My proposal Hon. Speaker Sir, because criticising without any proposal does not make any meaningful reasoning.

Government must design a programme to formalise the informal sector so that they begin even to milk where they have ploughed. Currently, Government is prepared to just raise tax for everyone without having put some mechanisms in the institutions. It is my humble submission Hon. Speaker that Government has to move up with speed in terms of formalization of the in formal sector because there no formal employment to talk about anywhere.

The next one is on the formally MDGs now SDGs - 2015 marked the closure of the MGDs Hon. Speaker to SDGs and we failed as Zimbabwe to totalize eight out of eight. Why? We had not committed more resources to deal with this programme. If we are serious enough because year in, year out we travel to UN to give a report in terms of what we have done as a country in terms of social goals. This caters for most of the MDGs and it caters for the vulnerable groups who are women and children. For example, if you talk about eradication of poverty by the year 2023, it means that target group is already in problems.

So, I implore that resources be allocated so that the various Ministries and the task force that deals with the particular SDGs have resources to do these programmes. We need to move away from hand outs in terms of all other social development programmes because the development partners have dwindled their resources. However, our own people are good workers and they can do some kind of projects at community level with the assistance that the donors will have given. Come rain time we can renege to our projects that we will have developed. At the moment, handouts like inputs have not yield anything because our people are no longer relying on dependence syndrome in terms of just being given and they are active enough and they want to do it for themselves.  So, I think let us give them a fishing rod rather than giving them the fish.

I know the Minister Hon. Speaker is very keen repeatedly to introduce labour market flexibility and he has been loud and has been lobbying for this. My humble submission Mr. Speaker Sir, is that this is modern day slavery. This is an unfair labour practice which is very unnecessary in a country where we have our own labour laws and have our own Constitution which protects anyone who comes to do business in Zimbabwe. We cannot allow black by black slavery because in the 70s and 80s we were saying vanhu vari kubatirwa nevavanoshandira, now we want to go back to the same 35 years after independence? It is not fair Hon. Speaker. For us from this side of the House, we do not believe in labour market flexibility – we say no to worker slavery because it is an unfair labour practice. We are signatories to ILO conventions which protect the workers of this country. Just doing the way of inventing into the labour market flexibility is taking the gains that we have already gained in the past and I do not want to believe anyone would want to be associated with failure but, to move forward.

Having said that Hon. Speaker Sir, this Budget has to be passed by

Parliament and should not pass through Parliament. I want to urge the

Minister to allocate more resources for operational framework of the Gender Commission so that we get to see the Gender Commission functioning. Some of the Commissions that have been mentioned in the  Constitution are now operational but alas, the Gender Commission is not yet in operation. So it is my humble submission Hon. Speaker that we get the Gender Commission functioning as soon as possible. I thank you

Mr. Speaker Sir – [HON. MEMBERS: Hear, hear.]-

*HON. CHINOTIMBA: Thank you Madam Speaker for

affording me this opportunity to also add my voice. I may just want to add weight onto the issue. In terms of the Budget that Hon. Chinamasa has presented. I am going to confine myself to agriculture. The pointers that Hon. Minister need to look into because year in, year out, we are importing food. They will say that a stitch in time saves nine. If the Minister were to address this issue, we may avoid the idea of importing food. I do not want to overlook the fact that they are also supporting those that are in need in communal lands with funding. Agriculture is the mainstay of the economy and Government needs to address its mind and focus and ensure that they assist commercial farmers because the commercial farmers will be in a position to repay the loans.

The point I am trying to make is that the Ministry of Agriculture if it is properly funded and people are able to irrigate and they have fertilizers, very little will then be required to buy food because it will be grown locally instead of being imported.   Imports by their nature are very expensive if the Ministry of Agriculture is to be funded and the commercial farmers were to be funded by the Government instead of the usual rates they are being subjected by the banks. A lot of farmers are losing their houses to the banks after failing to repay their loans. A lot of farmers are now destitute instead of enhancing themselves because of the issue of the loans that they are getting form these banks. The

Government should go into a discussion or into an agreement with the Seed Houses so that the Government can be given these seeds on loan and the Government will pay after the harvest.

I once had a discussion with the seed houses and they indicated that they are in a position to give Government seed on loan and that Government only repay after the farmers have harvested. They said the seed houses were not going to be making a profit out of this. Hence my reiteration that it will be easier if Government were to have a discussion with the seed house and such an arrangement would be made and that the seed could be accessed through the GMB instead of the individual farmers going to be subjected to usury terms or rates by the banks.

I am urging farmers not to repay their loans but the point I am making is that the UD$ will never lose its value and it will always appreciates in value. So, if you are given these usury rates, the A2 farmer will eventually stop farming and then you will disposes them of the land but they will be encountering problems in trying to source for  the seeds and fertilizers. In the past, the white farmers were afforded loans at concessionary rates because the banks were white owned.  Furthermore, the rate of profit by these banks was not prohibitive but what we are now doing is that if one were to get a loan, the interest rates are too excessive. The loans are difficult to service and they have the direct effect of killing our agriculture. I urge the Hon. Minister to critically examine this issue on how to end hunger or starvation and how the import of food stuffs can be stopped. We should not be seen in bad light as people who do not know how to do their farming when in fact we are very good farmers.

The second point is that I want to talk about the war veterans and war collaborators in their various forms as detainees, those that were assisting and those that were directly in confrontation with the whites. If you were to look at the funding that was given to this new Ministry, it is meager. An amendment to the laws needs to be done so that war collaborators need to be vetted. It requires funding and at least US$4 million is required for that exercise. The War Veterans Ministry was given a small budget. If you see the manner they traversed the country, you should see that most of us do not be misled by the suit that I am wearing. A lot of us have difficulties and we are suffering. That is why the former leader of the war veterans, the late Dr. Hunzvi said that we do have disabilities and we should be compensated for that.

Some of these war veterans suffer from leg ailments, painful backs and we cannot no longer be able to reproduce properly because of the magazines and heavy artillery that we used to carry. We used to carry heavy loads and we are…

HON. CHAMISA: On a point of order Mr. Speaker Sir.

THE TEMPORARY SPEAKER (HON. MARUMAHOKO): In

the first instance, you are in the wrong place – [Hon Chamisa having  been seated on the right side of the Chair] –

*HON. CHAMISA: Thank you Mr. Speaker. Hon. Chinotimba is

saying that he is ill and because of his ailments, can we enable him to continue speaking, ill as he is. Mr. Speaker please help us because he has made this concession that he is ill. I heard as if he said he is mentally disturbed.

THE TEMPORARY SPEAKER: Please resume your seat. Hon.

Chinotimba is speaking in idioms and proverbs. There is no point of order.

*HON. CHINOTIMBA: Let me say that amongst the freedom fighters, there are those without arms, limbs, eyes and when I am saying I am ill, I am talking about some scars that are not visible – that can only be seen by our wives – [Laughter] – hence I said that the issue of the war veterans cannot be properly understood by Hon. Members who sit on the left side of this House. The point that I am trying to make is that at one time, I thanked Hon. Mutseyami when he gave a motion on the welfare of war veterans. He hit the nail on the head and I was apprehensive that he could be expelled from his political party. The point that I make is that the budget that was allocated……

*HON. MANDIPAKA: On a point of order. I am saddened by

Hon. Chinotimba when he talked about the scars. If it is not on his groin area, can it not be shown so that we really appreciate what the scars look like?

THE TEMPORARY SPEAKER: Proceed Hon. Chinotimba,

there is no point of order.

*HON. CHINOTIMBA: Thank you Mr. Speaker Sir, the issues that I am making reference to are painful. We used to sing “Zimbabwe our father’s land”….

[Hon. Members on the right side of the Chair broke into song,

Zimbabwe Nyika Yedu.]

THE TEMPORARY SPEAKER: Order please! Hon

Chinotimba, there was a ruling from the Speaker in this House that there should be no singing in this House.

*HON. CHINOTIMBA: The war veterans used to say that our

levels of suffering have now become worse in this country and it is because people do not appreciate the sacrifice that the people who waged the war went through. We cannot argue and provoke the liberation fighters to then think that it would have been better if they had all perished during the liberation struggle. All I am saying is that they should be given loans as war veterans in the same mould as youths are being given loans to start their own businesses for indigenization.

Women are also being given funding for their activities but we fail to think of the war veterans, poor as they are. We fail to say that they should not be given – although they were given before but during that time they did not appreciate how to put their money to good use.

As freedom fighters, we should be given, that was a supreme sacrifice that we made to go and wage the liberation struggle.  It was not easy for one to simply go for the liberation war.  It had to take dedication and sacrifice.

THE TEMPORARY SPEAKER: Order, order.

*HON. ENG. MUDZURI: Point of order! We should not demean

the war of liberation struggle as it was prosecuted.  The budget issues should be discussed, there are some people who died, burnt but nothing was mentioned about them, one of them was Solomon Mujuru.  We should not cry more than the bereaved but do our duties diligently in this august House – [HON. MEMBERS: Inaudible interjections.]-

*HON. CHINOTIMBA: I am talking about those who died

during the war of liberation struggle in the bush and those who died in Independent Zimbabwe and also those who are going to die in future, even those who have become sell outs and joined the MDC.  I am not separating the role played by the war veterans; I am talking about the war veterans who suffered during the war of our liberation.

These are the people that I am saying the Minister should see their level of poverty; the manner in which some of these war veterans are being interred is pathetic.  In case of their death, they should be buried using good coffins, transport should be provided because sometimes there will be no funding for the burial.  There is an Act of Parliament for their children but at times money is not being made available to them.  So, that is why I am urging the Minister because the Ministry now caters for detainees, war collaborators and war veterans.  Now, that there are more that are being catered for under the title of war veterans, the budget should be considerable.  If you were listening properly to my arguments, you would support me; I am talking about an issue that touches on everyone.

It is my plea to the Hon. Minister to be empathetic and sympathetic and give a reasonable Vote to this new Ministry of War Veterans.  There is need for the Ministry to purchase a lot of items; they need transport costs and new staff.  What they have been given is a drop in the ocean.  As a war veteran, people might accuse me for lobbying for our group but be that as it may, the point is that we need a considerable amount to be given to the Ministry of War Veterans.  I thank you.

HON. MARIDADI: Thank you Mr. Speaker for the opportunity.

Firstly,  I wish to thank the Minister of Finance and Economic Development, Hon. Chinamasa, from the bottom of my heart, I think despite those flagrant constitutional violations that were raised yesterday in a point of order, the Minister has done a fantastic job to prepare the budget and bring it to this House.  I did not expect him to do that given our circumstances, the state of the economy.  The Minister has pulled what I would refer to as a Houdini act.

I want to talk about two issues, firstly about hardware issues which are the soft issues of the budget and then software issues which are the hard issues of the budget.  If you look at the booklet that contains the

National Budget Statement; what we produce must talk to what we want to project as a country.  The book has a picture of elephants, the Harare International Airport, a man holding a tiger fish, a pride of lions and herd of cattle. It has cooling towers of Zimbabwe Power Company and what I think is a front end loader of Hwange Colliery.  The reason I am saying this is that when you look at these pictures the National Budget Statement booklet, it does not talk to what is contained in the National Budget Statement or what we wish to project as a nation. I would have expected – I wish the Minister of Tourism and Hospitality Industry was here, a picture of the Victoria Falls, being one of the only Seven

Wonders of the World, to be the head the picture on the front cover.  When I look at the picture of the Airport, it reminds me of corruption because the Airport represents 25% of that which should have been constructed.  When I look at the herd of cattle here, Bulawayo depends on livestock and in this budget, there is no money that has been put to re-stocking the national herd yet we have a picture of fat cows, I do not know whether these cattle are from Zimbabwe or from some other country.

We also have two pictures of elephants on the cover.  We know that elephants in this country have been cruelly killed for their tasks by senior people using cyanide. Those people have not been accounted for, yet we pretend to celebrate our wildlife.

On the back cover, Mr. Speaker Sir, we have a picture of Hwange Colliery.  The Hon. Minister of Finance and Economic Development, last year put US$36 million to resuscitate Hwange Colliery.   After putting that amount, Hwange Colliery went on to post a huge losses, that loss has been housed in some vehicle which was created by the Government.  I am going to talk about that vehicle later when I speak about the software issues of this budget.

Mr. Speaker, the budget that was presented by the Minister here, must be able to talk about what the country needs to achieve.  Firstly,

Zimbabwe is overmanned, with a budget of US$4 billion and a GDP of

US$10 billion, the budget of  our country, I am sure the Hon. Vice President Mphoko, can vouch for me, is less than the budget of Shoprite in South Africa.  Mr. Speaker, it is even smaller than the budget of Choppies in South Africa, and I am sure the budget of Choppies in Zimbabwe is almost maybe 10% of Zimbabwe’s National Budget.

There are issues that we should talk about, like Zimbabwe is overmanned. The reason why we have policy inconsistencies is because we have got so many Ministers who are doing nothing. Some of these

Ministries should be departments in other Ministries, for example, the Ministry the Finance and Economic Development, should then be able to house the Ministry of Youth, Indigenisation and Economic Development and  it should be manned by a director.   The reason we have all this is because our response to issues is consumptive.  We had a problem with women and we created the Ministry of Women Affairs, Gender and Community Development.  There was corruption in sports and we created a separate Ministry which we took the Sport Portfolio out of the Ministry of Education.  We had a problem with war veterans and we created a Ministry of War Veterans; again we had problems with youths and we created the Ministry of Youth.  Very soon we are going to have a problem of prostitutes and we are going to create a Ministry of

Prostitutes because that is how this country responds to issues.

Mr. Speaker, a country with a Gross Domestic Product of US$10 billion has more than 75 Ministers and Deputy Ministers, what are they doing.  A country like the United States, with a budget of more than three trillion is manned by only 15 Ministers, you put the President there, the Vice President there, it is a Bureau of just 17, Zimbabwe has a Bureau of more than 75, that is one issue.  So, if the Minister is serious about cutting expenses, it must start with cutting the number of Ministers that we have.  I feel sorry for the Minister, when early this year the Minister announced that there will be no bonuses – the Minister knew exactly what he was dealing with and he was castigated.  As Hon. Misihairabwi-Mushonga said, he was burnt left, right and centre, all parts of his body were burnt, fingers, toes and everything and yet it has come to pass; there are no bonuses this year.  There is not a single Government employee who has received a bonus, I think bonuses will be received from next year maybe in February and March and some of them will receive bonuses together with their November salaries for 2016, that is if they are lucky.

We have issues here that we must deal with and the biggest problem that the Minister raised is the issue of debt.  We have international and domestic debts and here is what it looks like.  What has happened with domestic debt which is now bigger than the international debt is that Government has created this monster called ZAMCO.  Basically what ZAMCO does is that if there is a non- performing parastatals, like NRZ, Cold Storage Company, because you want to lure investors to come and put money into that organization, we clean their balance sheets.   The way we clean their balance sheet is that we take that balance sheet and we house it in ZAMCO.  So, what it means is that my grandmother in Mabvuku is responsible for the debt of Cold Storage Company since it has been assumed by Government.

What has happened, Hon. Minister you know, US$200m was put into Air Zimbabwe to clean their balance sheets and that was in about

2009/2010.  Today, when Air Zimbabwe was allowed to operate from 2009, their balance sheet was at zero.  Today, Air Zimbabwe has a debt of US$300m, what it means is that cumulatively Air Zimbabwe has incurred a debt of US$500m that must be assumed by the children of this country.  It is for that reason that some of us opposed the Reserve Bank Debt Assumption Bill because there people that benefitted from that.  People that have missed to pay back or have not paid back.  That debt has been assumed by all of us now having to pay that debt which is not

fair...

HON. MUKUPE:  On a point of order Hon. Speaker Sir.

THE TEMPORARY SPEAKER (HON. MARUMAHOKO):

What is your point of order?

HON. MUKUPE: I think Hon. Maridadi is misleading the House – [HON. MEMBERS: Inaudible interjections.] – I think he needs to revert to whoever did the research for him on the issue of ZAMCO.

ZAMCO does not take over debts of parastatals as he is pointing out.  All the debts that are taken over by ZAMCO are very much secure debts.  So there is no issue of the ZAMCO entity blatantly just taking over debts. I am saying if he is making his point, please can he not mislead the House.  I thank you.

THE TEMPORARY SPEAKER:  Order please.  The point of

order does not arise.  Hon. member, please continue.

HON. MARIDADI:  Hon. Speaker, ZAMCO refers to Zimbabwe

Asset Management Company.  A good example is the one that I have cited.  Government spent US$200m popping up the national airline (Air Zimbabwe) and the debt of the airline was put into this special vehicle called ZAMCO so that Air Zimbabwe could attract investors, because investors do not want to come and put their money into a company that is in debt.  So, the balance sheet of Air Zimbabwe was cleaned. Today, after the cleaning of the balance sheet in 2010, as I said earlier, Air Zimbabwe is in debt of US$300m and it is not a going concern.  The only reason Air Zimbabwe is operating is because the President has given a special dispensation that Air Zimbabwe assets must not be attached and that the Airline must continue to operate.

Mr. Speaker, Air Zimbabwe is the only airline in the world that I know which is still doing manual boarding passes.   What it means is that if you go to O.R Tambo airport and you manage to come across a boarding pass that is blank, you can write your name on that boarding pass, you go ahead and board.  What is happening at booking and what is happening at the gate, they do not talk to each other because Air Zimbabwe is operating manually.  You cannot go to Air Zimbabwe with

an e-ticket.

Other airlines, like South African Airways, all you do is call and you are given a reference number.  You simply present yourself at check in, and you are able to board.  That does not happen with Air Zimbabwe.

I have said enough about ZAMCO and debt management.

One of the reasons the economy is not performing is because of monetary policy.  Monetary policy is meant to assist fiscal policy and monetary policy only works in the event that you have your own currency because governments are in the business of printing money to supplement shortfalls. When you do a monetary policy, you see where there is deficit and you print your own money to cover the gap.  In the case of Zimbabwe where we do not have our own money, monetary policy does not do anything to help our fiscal policy.  What it essentially means is that Hon. Minister of Finance and Economic Development is operating on his own without the backing of the Reserve Bank because Zimbabwe does not have her own currency.  For those clamouring for the returning of the Zimbabwe dollar, it will take no less than 25 years for us to be able to get our currency back with the confidence that that currency must have, and I will talk about it at a later stage.

Hon. Speaker, close to US$1b has been put to Defence and Security.  We pride ourselves as being one of the most peaceful countries in the region and in Africa.  Zimbabwe is one of those very few countries where a woman can walk from this Parliament building at 2200hrs, unaccompanied they will be able to get to Holiday Inn unharmed.  Zimbabwe is one of the only few countries in this region where a woman can walk from Parliament of Zimbabwe to Market

Square three kilometres away to board their buses at 2200hrs at night and get there safely.  Zimbabwe is a fairly safe country. So, why do we put so much money into security?  We are not about to be invaded by Mozambique, we are not about to invade Zambia?  So, why do we put so much money in the Army?

Mr. Speaker, if you want stability in a country, you do not put money in the Army, you do not put in the Police, you give money to people to eat.  When people have full stomachs, they do not agitate.  Actually, it has been proven by seminal research that countries that put money into health, education and social safety nets do better in terms of security than countries that put money into buying military hardware, for the Army and the Police.  Money put into military hardware is money used to intimidate the citizenry – [HON. MEMBERS: Inaudible interjections] – Hon. Speaker, in Zimbabwe we talk about beneficiation,

..

HON. CHINOTIMBA: On a point of order Hon. Speaker Sir.

THE TEMPORARY SPEAKER:  What is your point of order?          *HON. CHINOTIMBA: My point of order is that the hon.

member is speaking of issues that never happened in this country, that soldiers and policemen victimize people.  He said again that a woman can travel from here to Beitbridge without encountering any problems and yet he contradicts himself saying soldiers and policemen harass people.  I think he must withdraw his statement.

* THE TEMPORARY SPEAKER: Order, order. Hon. Maridadi,

may you please avoid utterances that cause a lot of controversies.

        HON. MARIDADI: Thank you Mr. Speaker. I think I really enjoy Hon. Chinotimba because he gives us comic relief and it is nice when we are debating serious issues, you need somebody who is sort of a comic who gives moments of laughter – [Laughter] – and I like it. I did Shakespeare at school. In Shakespeare, a character like him would be referred to as Boy.  Boy makes people laugh – [Laughter] –

THE TEMPORARY SPEAKER: Order, order. Order Hon.

Maridadi, I did not give you a ticket to castigate the Hon. Member. May you please withdraw that please?

HON. MARIDADI: I withdraw Mr. Speaker. Mr. Speaker, we

talk about beneficiation and value addition. Beneficiation and value addition must be looked at from a holistic point of view. You must be able to say to yourselves, if we decided to beneficiate and value add in Zimbabwe, does it make economic sense to do that because you look at the cost benefit analysis of having your products beneficiated elsewhere as opposed to being beneficiated within the country. I will give you an example of platinum. The platinum that is mined within Zimbabwe, the threshold will not make economic sense for us to invest into a beneficiation plant. A beneficiation plant will cost the country $4 billion. Do we have enough platinum to beneficiate in this country and be able to realise the money that we will have put into construction of that plant and then be able to make a profit. I do not think so.

In any case, countries that do beneficiation and value addition, like South Africa, have a Beneficiation policy. The country came up with a beneficiation policy which talks about all minerals, where they should be beneficiated and what the values of beneficiating those minerals in the country are. So the issue of beneficiation must be looked at holistically and not a point of political rhetoric.

Ease of doing business is one thing that the Minister always talks about. Mr. Speaker, when people are coming to invest in a country, there are things that they look at. They look at ease of doing business, availability of electricity and water, and then they look at taxes as issue number four. This Budget puts $1, 2 million into power generation. Mr. Speaker, power generation is an expensive undertaking and the Minister can vouch for me. Power generation is one of the most expensive and it is a problem child the world-over.

In South Africa, ESCOM is now operating under the Ministry of Finance. All parastatals in South Africa that are not performing are put under Treasury so that they are monitored by the Minister of Finance.

The first parastatal in South Africa to be put under Treasury was

ESCOM. The second parastatal was South African Airways. Mr. Speaker, when you put money into power generation, it takes you no less than seven years to realise the benefits of that money. We were talking about $300 million that was put into Kariba Power Station. We will not be able to get a single megawatt out of that $300 million until maybe 2019. I will put that aside.

Mr. Speaker, when Hon. Khupe and Hon. Misihairabwi-Mushonga debated, they gave what they called recommendations of what they think should be done. I want to move to give my own recommendations. The first recommendation that I want to give is that, we must have a lean and sleek structure of Government. We must also have men of integrity in the mould of the Minister of Finance and Economic Development himself. He is one of the most hardworking and sincere under these difficult circumstances.

I am saying this knowing fully well that the Vice President, Hon. Phelekezela Mphoko is listening. Hon. Mphoko, the reason why we have policy inconsistencies is because of too many ministries doing nothing. The Minister of Finance and Economic Development engages the international community. When you engage the international community, it is not a matter of just going there and speaking to people.

There are so many other things that you must do in the background for you to be able to engage them.

When the Minister of Finance and Economic Development has engaged the international community and has reached a level where he says I am happy with the level of engagement so far, a member of Cabinet who sits with Hon. Chinamasa in the same Cabinet will come and spoil the broth – [HON. MEMBERS: Hear, hear.] – It is because they have nothing else to do. If we had Ministers who were busy in their portfolios like Hon. Chinamasa, they would not have time to interfere with others – [HON. MEMBERS: Hear, hear.] – My recommendation is that we have a leaner bureau which advises the Presidents correctly.

Hon. Vice President Mphoko, Hon. Vice President Mnangagwa and His Excellency the President, only act on information that comes from people who are around them. A leader is as good as people that surround him. If a leader is surrounded by dead wood, he ends up being dead himself – [HON. MEMBERS: Hear, hear.] – I will give you an example

THE TEMPORARY SPEAKER: Order, order.

HON. SHAMU: On a point of order Mr. Speaker I think that, it is not fair, right and respectful for us to refer to the Head of State of this country as dead wood. The Hon. Member must withdraw that statement.

It is unacceptable and disrespectful.

THE TEMPORARY SPEAKER: Order please. Hon. Maridadi,

even though you may not have mentioned names but it is clear what you are referring to. May you withdraw that please?

HON. MARIDADI: For purposes of progress, I will withdraw …

THE TEMPORARY SPEAKER: And also if you can wind up

because your time is up.

HON. MARIDADI: I am going to wind up. The reason why I am saying this Mr. Speaker, I watched the ZANU PF Conference in Victoria Falls. The reason I was following that conference is because what is discussed during that conference has a bearing on us because ZANU PF is the ruling party – [HON. MISIHAIRABWI-MUSHONGA: Oh, yes!]

– [HON. MEMBERS: Inaudible interjections] – I heard the Head of

State saying and this is a matter of national public record, that the Cold Storage Company (CSC) is now coming back on line. What he was basically saying is that the CSC has been turned around and is on the verge of making a profit.

Mr. Speaker, one of the worst performing parastatals in this country is the CSC. It is not a going concern. Last year, they slaughtered 900 herd of cattle, yet at their peak they slaughtered 970 000. What it means is that the President has been given wrong information and it is not his fault. That is why I am saying we need competent people in the mould of the likes of Hon. Chinamasa. That is my point. …

THE TEMPORARY SPEAKER: Your time is up Hon.

Maridadi.

HON. MARIDADI: But that red light did not flash Mr. Speaker – [HON. MEMBERS: Inaudible interjections.] – There are procedures to be followed in this House and those procedures must apply. What is good for the goose is good for the gander and I am not about to sit down

– [HON. MEMBERS: Inaudible interjections.] – No, procedure …

THE TEMPORARY SPEAKER: Order, order please. Hon.

Maridadi, I will give you two minutes to wind up.

          HON. MARIDADI: So, Hon Chinamasa, the Ministry of

Economic Planning and there is this Ministry, I do not even know its name, that has to do with Policy Implementation and Ministry of Youth and Indigenisation; all those must be departments in your Ministry and must be headed by Directors.  The Ministry of Psychomotor in Education must be abolished and the Minister must be pensioned and go home.  Provincial Ministers are unconstitutional because the

Constitution we now provide for Provincial Councils.  Also, because of the size of this country, I honestly believe and I am saying this with all the respect that I can muster, I think this country would require just a single Vice President.  I thank you.

HON. MAVENYENGWA:  Thank you Mr. Speaker for affording

me this opportunity to add my contribution on the debate on this budget.

I would want to talk on agriculture.  This country, as we all know is agro based.  Zimbabwe’s economy depends on agriculture but as I analysed the budget, which the Minister presented to this House, the Ministry of Agriculture was not given enough to make sure the economy which depends on agriculture can grow.  We say agriculture is the backbone of this country’s economy, but the way it is being funded, does not equal the status we give to this Ministry.

Zimbabwe is a signatory to the Maputo Declaration which states that 10% of the National Budget should be allocated to agriculture.  For the past years, we have seen that this Ministry has never received the 10% which was agreed upon at the Maputo Declaration.  I therefore urge the Minister of Finance and Economic Development, in future, to really look into this Ministry, as it is the one which can make our economy grow.  We are saying we depend on agriculture but the money it is being allocated cannot enable our economy to grow.  The 10% which we are talking about, if the Ministry was given, was going to come up to about US$400 million.  As it stands, the Ministry only got about US$200 million, yet we want to have irrigation services in the country.

We also want to have affordable inputs so that our farmers can utilize most of the land which is lying idle.  It is idle because the farmers are failing to purchase seed, and fertilizers.  We want our Government to subsidize fertilizers and seeds just like other countries in the region such as Zambia and Malawi are doing.  We are currently buying maize from these countries which are doing very well because they are able to subsidize the seed and fertilizers. Here in Zimbabwe, you find that a rural farmer is not able to raise money to buy a bag of fertilizer, which is going for about US$30 or US$28.  We want to see the fertilizers going down to at least US$14 or US$15 a 50 kg bag, so that everyone can afford to buy and farm to ensure that the country grows its economy.

ZIM ASSET has also noted that Food and Nutrition is one of the clusters which we are supposed to ensure is well funded, so that everyone in the country is able to get enough for the families as well as exporting to other countries.  We should not just wait to go and import but we are supposed to have more to export to other countries if we fund our agriculture sector well.  This is the only way we can grow our economy which has gone down.  If we are not funding it well, it means we are not taking our agriculture as seriously as we are supposed to.

The US$200 million which was allocated cannot enable us to have more irrigation services in the country.  At the moment we are facing climate change phenomenon and we cannot produce enough if we do not have irrigation services in the country.  For us to grow our economy, I suggest that the Minister of Finance and Economic Development should in future, look into this sector, as this is very important to us as a country.  Anyone who wants to go to work or do anything needs food.  Without food we cannot come here and debate like we are doing now.  Food must be available first for us to come here and do our work. I am therefore, saying that on the agricultural sector, we should abide by the Maputo Declaration, which we signed and agreed to that 10% of the National Budget would be given to the Ministry of Agriculture.  If we do so, we will not have to go out and buy food stuffs from other countries.

Also on the ZIM ASSET that we are talking about, for us to make sure that we succeed in our ZIM ASSET, especially on the Food and Nutrition Cluster, we need more money to make sure we have small dams, buy more equipment and have irrigation programmes like those in

Birchenough Bridge - Hon. Chinotimba’s constituency.  The people there are doing very well because their irrigation service is going on well.  They are irrigating all year round.  They irrigate and produce maize.  From maize they go to wheat, from wheat they go to beans which they will sell for the livelihoods of their people.  So, if these irrigation services are put all over the country, in almost every district or every constituency our people will get enough food.  It will be easy for us as Members of Parliament to do our constituency work when we visit them.   We will not have problems with people asking for food like what is happening at the moment.  The country has no food but we are not putting enough to the Ministry which is supposed to produce for the people and more so to make sure we can also sell.

There is also the issue of resuscitation of CSC, with CSC we need artificial insemination to our cattle but on the Budget, the money which was allocated for that is very little.  So, to resuscitate this CSC is very difficult and it will not succeed if the money which was allocated is not revised.  We need the Minister to revise this and make sure that in future if  we really want to see CSC resuscitated, it should be well funded so that all the programmes are successful, making sure that we have enough  cattle so that we can export meat to other countries as we used to do before.  I thank you.

*HON. CHIWETU: Thank you Mr. Speaker.  I am going to speak in my mother’s tongue.  Peace in the country comes from the Police and the presence of the Army.  In fact, the arms of Government that are responsible for peacekeeping are responsible for ensuring that there is peace and security.  For one to walk from Parliament to Market Square without being mugged shows that there is police presence.  There is rule of law, the Army is present.  Zimbabwe is demarcated, it has a border which needs to be protected by the Army.  If Mozambique were to invade Zimbabwe and say that the new boundary for the border is now at Rusape, we will do nothing about it if the Army were not to protect us.

The point I am making Mr. Speaker is that the Army and the Police should be given sufficient funding for their operations so that we have peace and security as a country.  This enables us as citizens of Zimbabwe to be able to conduct our daily chores such as walking or even farming in peace.

I urge the Minister of Finance and Economic Development to resuscitate the recruitment of police officers and soldiers.  Recruitment of new members of the Army and Police should be ongoing.  For the past three years, we have not been recruiting such members of the force.  What others do not know is that we train in peace to ensure that there is no war, you cannot train during the war.  It is not ideal to be training and recruiting members of the security forces during a war. You need to do this during peace time.  There is a saying that you should practice peace to avoid war.

Mr. Speaker, what you give to these Ministries should be supported by your disbursements.  Please disburse the figures that you will have allocated to these security forces.  It is my plea to the Minister of Finance and Economic Development that these line Ministries that deal with security issues be given sufficient funds that we will have indicated has been allocated to them.  Your failure to disburse these funds will hinder their plans for the year because of lack of resources.

We have projects countrywide; I am talking about the PSIP projects that have not been completed because we are starting a lot of new projects simultaneously.   There is a building for the Registrar General which needed very little in the form of funding but the costs have now escalated.  We need to start on one project, complete it and then move on to the next.  In the Army, there are several projects that involves sewer and water reticulation that have not been attended to.

Last year, insignificant figures were allocated but they were not disbursed.  For this year, we do know if it is going to be disbursed.  The CID headquarters for the Police has for years been at a standstill.  Some have died before using the building which they had dreamed of.   It is my plea that we should come up with manageable projects that are properly funded.

In terms of ZINARA, the roads to the rural areas need to be upgraded.  We should not have these gravel roads, where we grade them during one season and redo the same exercise the next year.  These roads are washed away by rains or floods.  The majority of these road users are in the communal lands. The money should be given to the rural authority so that they are able to maintain the roads.  All you need to do is to monitor and ensure that the money is being properly used.

There is another section that I have observed on the budget, where you talk about fines for unlicenced drivers; you said it should be

US$100.  When I look at this, we have a lot of vehicles on our roads.  Majority of the drivers are unlicenced, a lot of these unlicenced drivers are killing a lot of people.  People that drive while they are unlicenced should be tried by competent courts because they run the risk of causing the death of several innocent people.  The sanctity of human life should be upheld.

In support of the previous speaker who spoke on irrigation schemes, I am grateful for the programme that Hon. Made is doing.  We have a lot of water in several areas and I urge that there should be an increase in the number of irrigation schemes.  I have 62 water bodies in my constituency and I only have five irrigation schemes that have been resuscitated. If the 62 water bodies were to be operationalised as irrigation schemes will avert hunger and our constituencies will never plead for food.  I thank you Mr. Speaker.

HON. BHEBHE:  Mr. Speaker Sir, before I delve into the budget, I just want to highlight something that seems to be very common particularly being said by Hon. Members on your right.  Mr. Speaker, it is disheartening that the ruling party seems to think that war veterans are only found in the ruling party and it is a tragedy that some of the people that are claiming to be war veterans from the ruling party are actually

not war veterans, but are masquerading to be war veterans hiding in the shadow of ZANU PF – [HON. MEMBERS:  Inaudible interjections.]-

HON. DR. MUKANDURI:  On a point of order Mr. Speaker Sir.  With all due respect, the Hon. Member has gone off bounds.  The Hon. Member who has just spoken concerning the war veterans has not vetted any of those people who are war veterans.  I was here and I never heard that war veterans belong to the ruling party only.  No, that statement is misleading and the Hon. Member should withdraw his statement.  I thank you Mr. Speaker Sir.

THE TEMPORARY SPEAKER: Unfortunately, I was talking to Hon. Nduna here.  I did not hear what he said.  May he repeat what he said so that I make a ruling.

HON. BHEBHE:  Thank you Mr. Speaker.  Just to be clear, I am responding to an issue that was said by one Hon. Member debating in this House today.  He referred to members on your left as people who are not war veterans.  Some of us were war veterans that were fighting when some of the people that are accusing us of not being war veterans were actually working and enjoying money and now today they are telling us that we are not war veterans.  He actually claimed that war veterans are only found from the members on your right.  So, I am responding to that.

THE TEMPORARY SPEAKER:  What was your response like – [HON. MEMBERS:  Inaudible interjections.]-  Order please.  Order, order!  I think there is some bit of misunderstanding in terms of how he expressed himself.  So, I will give you the benefit of the doubt.  You may continue with your debate.

HON. BHEBHE:  Thank you Mr. Speaker Sir.  This time around when we were debating the budget for 2014, I stood up and said the best remedy to fix the problems in this country pertaining to the economic decline is to accept failure. That is the first thing that should happen in this country.  If we do not accept our failures, where we went wrong, we will come here year after year, debate and come up with nothing.

Going into the budget, Mr. Speaker, going through the Blue Book and the statement by the Minister of Finance and Economic Development, there are two things that I deduced from that presentation.  This budget is either going to talk of economic growth or is going to talk of the consumption behaviour in this country.  To be honest, running through the budget, it is very clear that we are talking today, debating a consumptive budget.

Those that went to Victoria Falls - I did not go to Victoria Falls myself, but I followed the proceedings, the theme for the Pre-Budget

Seminar was ‘Growing the National Cake for Socio Economic

Development and Transformation’.  If I look at the budget presented by the Minister of Finance, it is not answering to the theme that you went and debated in Victoria Falls.  If this budget was talking to the theme that you debated at Victoria Falls, Mr. Speaker Sir, we should be seeing a deliberate thrust that is showing that there is more that has been put towards capital expenditure.  It is very clear that if you look at this budget, there is zero capital expenditure because already the salaries for the civil servants are gobbling what we believe will be the collections from Treasury.

If you look two years back from now, 2013 and 2014, we failed to meet the target that we had put ourselves on in terms of collections.  So, I assume 2016 will not be spared.  If it is not spared, I am now seeing a situation where come 2016, we will not be able to raise even civil servants salaries.  Therefore, this budget does not qualify to be a budget that is aiming or promoting or that is based on capital expenditure in this country.

Mr. Speaker, there are a few things that I just want to pick and highlight on the budget just to say that I have proved that this budget is not aiming at financing capital expenditure in this country.  It also speaks of issues of our debt to the international community.  The World

Bank Debt according to the Minister of Finance and Economic Development is going to be financed by borrowing.  To me, as a business person, I see no logic in trying to service a debt through borrowing.  It is like borrowing from John to pay Mary.  You are actually back to square one because at the end of the day, you want to borrow to service a debt and you are creating another debt.  Meaning that for years to come, we will remain in one place instead of seeing growth in this country.  That is one thing that I observed in that budget Mr. Speaker Sir.

Some of the highlights on the budget are actually promoting either corruption or back door clandestine business operations.  The Minister of Finance and Economic Development on page 21 of the Blue Book is saying an equivalent of US$1 000 000 and above is going to be exempted in terms of capital equipment.  That to me means that all what you are saying is any person who is importing capital goods or machinery that is worth US$1 000 000 is importing to resell.  There are very few businesses here that can import that kind of equipment to start new businesses. May be what the Minister should have picked on is target those small businesses that are still starting. Reduce the benchmark from $1 million to a sizeable amount – [HON. MEMBERS: Hear, hear]- so that a lot of people, broader people in society are going to be able to capitalise on that by bringing in capital equipment.

Mr. Speaker Sir, the other issue that I picked on the Budget is the issue of importation of second hand vehicles, on pages 23 and 24. There is this misunderstanding that for one to have a vehicle or to import a vehicle, a better vehicle is the one that has got fewer years or that is four or five years from manufacturing date. Honestly, you cannot say a person who is importing a four year old vehicle is better off than a person who is importing a 20 year old vehicle. Mechanically, that does not work. What works is if you want to measure the durability of a vehicle, you measure it by the mileage that it has covered, not the years that it was manufactured.

A vehicle that is four years old can have 350 000 km on the clock, yet a vehicle that is ten years can have 20 000 km on the clock. So, if you are talking of vehicles that are being imported …

THE TEMPORARY SPEAKER (HON. MARUMAHOKO):

Order at the back, order please! You may proceed.

HON. HOLDER: On a point of Order Mr. Speaker. The gentleman is misleading this House because when we talk about bringing in equipment, there is no second hand equipment. ZINARA brought new graders. This man is misleading us – [HON. MEMBERS:

Inaudible interjections.]-

THE TEMPORARY SPEAKER: Hon. Holder, there is no point

of order at all. Continue Hon. Member?

HON. BHEBHE: Thank you Mr. Speaker,. I think it is allowed that members should seek clarification than seeking a point of order. I am now talking on importation of vehicles not machinery. I have already finished with machinery. I said what I said on the machinery and I am talking of vehicles. I am being honest because I come from that industry.

I am one of the serving members in that industry. I am offering to the

Minister of Finance and Economic Development’

I am not forcing him but I am saying this is what I believe can work for this country because instead of importing a lot of scrap and allow Zimbabwe to be a dumping ground, let us have innovative ways of bringing in vehicles that are going to last longer instead of just bringing such cars as a dumping ground.

Mr. Speaker Sir, I want to proceed and go on to the issue of mining in Zimbabwe. I will just touch a bit about mining. When we talk of mining, it is a capital intensive project. When you invest into mining, you can invest billions of dollars and you will not expect or you will not receive dividends over a year, two or three. You are talking of over five years before you receive dividends. It is a very sensitive industry. When we talk of foreign investors coming to inject finance into this country, particularly in that industry, we need to have laws that are friendly to those that want to invest in mining. We might claim that we are the owners of the minerals, but minerals on the ground that are not exploited or that are not mined, are as good as nothing.

The person who would enable you to mine those minerals through bringing in equipment and capital in terms of financing is the one who should be realised to be the person who is the driving force behind that industry. So, if we put a blanket rule that anybody who comes to invest in Zimbabwe should come as a junior partner by being a 49% shareholder, honestly speaking, we are fooling ourselves. We are telling ourselves a lie. We think that one day God is going to come from Heaven and assist us. We need to think like people that want to see this country growing.

Just to give you an example Mr. Speaker Sir. We have had a lot of shouting about the Chinese coming to invest in this country. It is one of the countries that is fast developing. Where I have got a problem with the Chinese is that they came here and partnered some of the mines in Marange, and they knew that there was alluvial diamond in Marange and there were kimberlites that are even deeper and more expensive to mine. If they were genuinely coming to invest here in Zimbabwe, they were supposed to make sure that whatever mining that was taking place in terms of mining alluvial diamonds; they were supposed to identify partners back in China that are manufacturing equipment that is able to mine kimberlites that we cannot mine today.

As we are talking right now, mining in Marange diamond is as good as finished because there is no money put aside to make sure that they continue mining for years to come. Therefore, I do not believe that if we are genuinely thinking of investing into mining, we should take partners or we should bring in partners that are not genuine, but they are only coming to loot our resources and make money for themselves like the Chinese have done.

Finally, Mr. Speaker, before I sit down, we have seen the economic decline in this country. The biggest question that we all want answered is who presided over that economic decline. What was he doing when the economy was declining? Was he involved in corruption and forgetting to do his job? Was he involved in massacring other people forgetting about doing his job or was he involved in other things that we do not know. So, I will go back to my earlier statement and say, the best remedy to see this country go back to its feet again is to admit failure. Those that have failed should admit that they have failed; we will be able to assist them.

*HON. MUFUNGA: Thank you Mr. Speaker. I want to thank you

for giving me an opportunity to contribute to this debate on the Budget presentation. I think a lot of things have been explained that I wanted to mention, but let me start by talking about the issue on environment. I was thinking that on this budget, we need to consider the issue of environment because that is where the whole country is based. If you look at what is happening, we are all bemoaning the issue of climate change. We are also concerned about the issue of cloud seeding. I think we need to allocate funds to this sector. This will assist us in agriculture because agriculture falls under environment. The hunger that is there requires us to be armed in order to fight climate change and find ways of mitigating the effects of climate change. If you look at Kariba dam today, no one ever thought that it will be what it is today. Had we come up with measures of mitigating such effects, we would not be in this  quagmire.  I want to urge the Minister of Finance and Economic Development to add more money and allocate more resources towards the construction of dams.  In regards to EMA, what has contributed to climate change is the veld fires that are happening and the deforestation?

EMA should be allocated more resources to mitigate such effects.

I also wanted to talk on the issue of inputs that we receive.  I was also looking at the issue of ARDA and I think we need to consider this.  I have never heard of ARDA being explained anywhere or being allocated anything.  So, my opinion is that we should allocate funds to ARDA and ensure that they become productive so that they can contribute to food security.  The two areas that I mentioned about the issues that I think should be considered in the Budget are the construction of more dams and the funding of ARDA to ensure that as a country there is food security for our people.  With these few words, I want to thank you for the opportunity.

HON. B. TSHUMA:  Thank you very much Hon. Speaker for the opportunity -[AN HON. MEMBER:  The Minister wants to know your name]- Hon. Speaker, the Minister wishes to know what my name is – so if you may allow me to favour the Minister with my name?

THE TEMPORARY SPEAKER (HON. MARUMAHOKO):

Yes.

HON. B. TSHUMA:  My name is Brian Tshuma, Member of

Parliament for Hwange Central.  Thank you very much.

I am in fact Hon. Minister, one of the members who is also flattered by your performance in this particular Budget.  I would want to note in particular the massive shift from machinations with Keynesian policy tools to the massive dose that you give to the supply side fundamentals.  I am thinking in particular the issue of encouraging private sector investment, the sort of a policy that you put in place, the issue of a straightening infrastructure development utilities informatising the economy as well as strengthening the tax system.

Mr. Speaker Sir, in speaking to this issue, on how our Budget then seeks to address these supply side fundamentals, there is a lot of dwelling on this issue of competitiveness and ease of doing business.  I would want to note the World Bank Report, the World Economic Forum global competitiveness ranking/standing of this country for the period 2011 and 2012 where Zimbabwe ranked 132 out of a possible 142 countries.  This global competitiveness report measures the operating environment and competitiveness of the 142 countries and identifies advantages and impediments to natural growth.

In the same period Mr. Speaker, on the World Bank Ease of Doing

Business Report, Zimbabwe ranked number 171 out of a possible 183.  The World Bank Ease of Doing Business Report assesses the local regulatory framework in terms of the conduciveness to the starting of an operation of a local firm.  Clearly, our passion as stated in these statistics is a cause for concern.  When we come closer to the issue of the Budget, the Budget clearly states under Part 8 - are several policy tools that we wish to follow in pursuing this issue.  I would want to dwell in particular on the issue of markets and second policy tools which relate to the Code of Conduct.  Mr. Speaker, we will talk about competitiveness.  It is only imperative that we sought our markets, particularly on the issue of encouraging private sector investment.  Markets are essentially about rules and norms on how the private sector transacts business in those private markets.  When the Minister emphasises this aspect of competitiveness, it is necessary then that the Government puts in place rules that constitute those markets.  The way the Government adheres to those rules should inspire trust and confidence so as to attract investors as amply referred to by my colleagues.

I would simply want to point out two issues that the Hon. Minister and Mr. Speaker, I am talking to myself here because the very Minister that I am talking to is in some bilateral.

THE TEMPORARY SPEAKER: You may continue.

HON. B. TSHUMA:  Mr. Speaker, honestly I am finding myself in some very vein sort of enterprise.

THE TEMPORARY SPEAKER: You may proceed Hon.

Member, I will protect you?

HON. B. TSHUMA:  Hon. Minister, I was kind enough to introduce myself and that was a real honour on yourself.  Please, may you also favour me by lending me your ear?  I want the Hon. Minister to get this point, when he emphasises on competitiveness which is a very welcome development and it is so unfortunate.  Hon. Speaker, I want to emphasise that markets that are necessary for competitiveness, there are social institutions in which Government has a bigger role to play.  Markets that we need for competitiveness that the Hon. Minister is harping on in this Budget are essentially about rules and adherence to those rules in the name of competitiveness as he rightly identifies.

We have a situation in this country where the very Government that the Minister represents, the very Government that sets up those rules that constitute the markets and they have a very firm reputation for breaking the same rules.  I am saying that sort of thing does not assist competitiveness.  I just want to give two examples.  In the Constitution we have in terms of these rules, I am not sure of the particular section but it certainly states that the National Peace and Reconciliation Commission should be chaired by a registered lawyer of seven years standing.  Mr. Speaker, as we speak right now, there must have been an announcement  on television about a Bishop, Emeritas Ambrose Moyo who is neither a lawyer generally, not to talk about being registered for seven years and he has never been anywhere near a law school.  But,

that is the sort of person that has been appointed as Chair of that particular Commission.

My point Hon. Speaker is that, when you have a Government that does not respect the grannum, the Constitution as it is, it cannot even be trusted with coming up with market rules that it can then adhere to.  So, when they violate the Constitution, it actually flies in the face of this bid of competitiveness.  I can also give a similar example including what also Hon. Gonese amply alluded to yesterday.  We also have a Job Whabira at the Zimbabwe Anti-Corruption Commission.  The

Constitution clearly states that for any member to serve under a Commission, such a member must not also be a member of any State controlled institution/entity.  Job Wabhira, who is also one of the commissioners of the Zimbabwe Anti-Corruption Commission, is in fact a member of the board of the National Prosecuting Authority, as well as the Civil Service Commission.  That Mr. Speaker, is another flagrant violation of the Constitution.  The basic point is that the Minister when he speaks about competitiveness hinging on institutions and laws that

the same Government is breaking, it does not come to hold water.  It is an area that he needs to look into.

Mr. Speaker, I actually want to go on to an issue that has inspired my standing up to give a contribution, the Code on Corporate

Governance.  I was also involved in a motion that led to the drafting of this Code.  The Code is a joint effort of the public sector and the private sector, in particular members of the Institute of Directors and Institute of Bankers amongst other stakeholders.  The logic that inspired this Code is that it was going to be a voluntary soft standards, sort of Code that would regulate the private sector on an apply or explain basis.  The Minister has proposed in the Budget that they will bring a Corporate Governance Bill that will turn this very Bill into a law.

Mr. Speaker, in the history of these Corporate Governance Codes, it is only America that has such a legally binding Code of Conduct or Code of Corporate Governance.  The Americans themselves have admitted that such sort of a policy tool, having a criminalized Corporate Governance Code is not working for them.  Every country in the world; South Africa, UK, Asia and Europe have gone the voluntary Code.  The Code as it were is an important aspect of the competitiveness drive and ease of doing business. I would wish the Minister to reconsider his position as it actually flies in the face of reducing transitional costs or promoting the ease of doing index for the country in terms of the draft that he gives.

Mr. Speaker Sir, I want to end my contribution here in disgust.  I find myself to be involved in some very vain process here.

*HON. GWANETSA:  Thank you Mr. Speaker for affording me the opportunity to add my voice to this important issue which gives respect to us as a country; the one of the National Budget.  Before I say a lot of things, I would want to first and foremost, thank Hon. Minister Chinamasa for a job well done in playing this difficult balancing act.  In doing so, I will look at issues around agriculture, energy, industry and water.  Lastly, I will talk about defence or security sector.  The security that is important, which is better than the security that is akin to the defence of this country, is food security.  A hungry man is an angry man.

For one to be self-sufficient, one would have been involved in agriculture.  So, I am hoping that Hon. Minister Chinamasa; yes, I must concede that he has given us an example or allocations to the various Ministries.

I was hoping that the Agriculture Ministry could be given a sufficient portion of the cake to be able to grow crops, cattle ranching and fishery.  We now have different seasons and due to climatic changes, we should be moving towards irrigation because natural rain is not sufficient.  It does not stretch enough for these seasons.  We should harness and harvest water so that we will be able to do irrigation so that farming can thrive.  No matter how good we do our farming and how good our harvests we have, we need good silos.  There should be a funding that is put aside to ensure that we do come up with good silos.

Even if we turn our eyes to the Asian tigers, they began with agriculture.  It gives the primary, secondary and tertiary industries, hence agriculture will become the back bone of our country.  We should be able to ensure that the Ministry of Agriculture stands on its own feet so that it will be able to drive our vehicle to self-sustenance.

Energy is another sector which needs to be looked into as one of the drivers of our economy.  We have load shedding; industry is not performing at its optimum levels because of load shedding.  Kariba Dam was constructed during the federation era.  We now import electricity.  If there is no electricity, the agriculture sector goes nowhere.  The amounts allocated to energy should be increased because that would be able to grow our cake.  If we look at the industry, we observe that it is nonexistent.  All our industries in Bulawayo have closed down.  In Harare, our industry is in the intensive care.  I was hoping that such industries would be resuscitated by being given adequate funding from the Budget, hence they will be able to create employment and people will be able to sustain themselves.  Agriculture is an important facet of our country.

I now move to water and environment.  We are talking of climate change.  It is a phenomenon which is here to stay and we should be able to address it, getting used to it and correct its effects. If we do not attend to climate change, we will not achieve anything.  Even the agriculture and other sectors that we are talking about, the harvesting and harnessing of water, the creation of such water bodies will come to note.

Several years, we have been struggling to complete the construction of Tokwe-Murkosi.  If it were to be completed, it would benefit our agricultural sector.

We should be able to preserve our wild life.  Funding should be put in place and poachers should be eradicated.  The police should be in a position to secure that area.  It is an area which I believe should be secured.  I worked for several years and I know that a soldier watches on his stomach.  When it comes to the protection of the country or the defence of this country, all of us are happy but security is expensive.  There is need for deterrence to be able to have security, it also requires diplomacy, training and all such aspects are needed in defence. In defence we also have the moto and we do not have permanent friends but permanent interest. If we do not forever look after our police and soldiers so that they remain current, we are doing ourselves a lot of

harm. I am happy the Minister brought the Defence College Act and this is where our security officers are trained. It is expensive to come up with an elite security force for us to have peace.  The State as they say it is as good as its generals so these generals have got to be enlightened in such defence colleges and they will be able to then provide us with adequate security and on that we cannot be seen to be taking it very lightly.

Such sectors are vital and adequate funding need to be given to such Ministries. For health - if you are to be given some medication for you to take the drugs, you will have had some food. For you to go school you need to have taken food. Agriculture is the mainstay and backbone of our country. I see Hon. Made is nodding in agreement and I believe if we give such issues a priority, our budget will enable us as a country to move in the right direction. Times are hard, but in Chinese a journey of a thousand miles begins with single step. The single step that we should be taking is this. Yes, we need to tighten up and brace ourselves for such hard times by priorities our work. If we do not do that then we will not win. If we have fear we will go nowhere. They say that fear is baggage and the little that we have should be used wisely. If we just cry that we have nothing, we will lose out. Those are the few words that I believe I should add. I thank you.

THE HON. SPEAKER: Order.

HON. MUTEZO: Thank you Mr. Speaker Sir. I rise to comment on the Budget that has been presented by the Minister of Finance and Economic Development. The Budget is very balanced I would like to highlight areas of concern which have been raised by stakeholders, the  industrial and manufacturing sectors. The feeling is this is a low hanging fruit and we want to commend the Ministry of Finance and Economic Development and the Ministry of Industry for the model they used for cooking oil industry whereby supporting local manufacture or expression of cooking oil and stopping the unnecessary importation of the same, we now have that sector working at over 80%.

My observation or comment is that we should extend the same to other manufacturing sectors and I will cite a few and in the same vein we must support by the buy Zimbabwe campaign. I propose that for raw materials that are used in making final product, they should come in duty free the same with the equipment also used for the same. The manufacturing sector used to be a major employer and a major contributor to the fiscus. If we have this approach like Hon. Minister did for the cooking oil industry, we would have major turnaround in that sector. I also propose that we have punitive duties on the importation of finished goods that can be locally manufactured so that we can support our own manufacturers.

I have examples Mr. Speaker Sir, the packaging industry where finished printing materials are being brought in and they can be made here. Non specialist books - we used to have a very vibrant printing industry and publishing industry which has died because now the books are coming printed from outside the county while we have major manufactures or printers who are closing shop because they are not getting the support. –[HON. MEMBERS: Hear, hear.]- a study has already been done of that sector Mr. Speaker Sir, and I will make that available to the Hon. Minister .

Finished packaging like labels flour bags, bread bags, crisps, soaps, detergents, tea bags, dairy products all these used to be manufactured here in Zimbabwe and they are now being imported. We are exporting jobs as well as scarce foreign currency. I think we need to treat these in the same way you Hon. Minister treated the oil industry. Other items that are being made locally but are being crowded out of the market are in the construction sector. Things like tile adhesive, tile grout and also things like flour bags Christmas cards, business   cards are sometimes being imported in finished good from China, South Africa and elsewhere at the expense of our own local producers.

I thus implore the Minister to look at that and what I have done is I have just picked a few sectors that are affected but generally by and large, the manufacturing sector can be revived because you already have a success story that the Ministers implemented in the cooking oil industry. I think we need to support the buy Zimbabwe campaign and we need to support our own local manufactures so that we can create the much needed jobs and save ourselves foreign currency. I thank you Mr.

Speaker. – [HON. MEMBERS: Hear, hear.]-

HON. CHIRISA: Thank you Mr. Speaker Sir. Before I start on my debate, I just want to bring to the attention of the House that I was listening to all the Committee reports yesterday and there was only one Committee, that of Budget, Finance and Economic Development that raised the issue of the Vote allocation for Parliament of Zimbabwe. I think this is an issue that should be raised. We have seen workplans of our Committees rotting in the files because there are no resources. If we keep quiet, we will end up having those plans for 2016 with no implementation due to lack of resources. The Hon. Minister should also take into consideration that we should be at that higher level like the Ministry of Defence and any other Ministry that is being allocated those millions and millions of funds. He should also remember that he is a Member of Parliament before being a Minister.

The problem we have with our Budget is that we are using rolling cash and this is not sustainable for a country. We know we have challenges. We have these statutory funds that are not being accounted for, if I am to say that openly. Those funds could play a bigger role if we are given how much is being earned and how much is being spent so that everybody is aware that these funds are being taken from people and being used for the development of our nation.

I want to touch on the key areas that were raised in the Committee reports but before I do that I want to share with the House some of the highlights which I think I noticed in the Budget. The projection of the growth rate is unrealistic. We want to be fair, given the fact that in 2015, it was 2.4% and it was not achieved and now we are talking of 2.7%. How did the Minister arrive at this projection of 2.7% if as a country we did not reach our last projection of 2.4%? My second point has been said before but I am going to repeat it, the recurrent expenditure which is consuming about $3.1 billion of the total budget leaving nothing for the capital expenditure. Who in his right mind would come and invest if 92% of our budget is going towards wages. Instead of reducing the recurrent expenditure, it is increasing. In 2011, it was at 82%. In 2012 it was at 80%. In 2013 it was at 84%. In 2014, it was at 85% and in 2015 it is at 92%.  That is leaving about 8% for development projects.

We also notice that the Budget is not aligned to the Constitution and  ZIM ASSET social and economic rights. These have not been prioritised and the Budget does not speak to the clusters that are outlined in ZIM ASSET. There is need to look into it because this is where the people’s needs are being housed. The Budget fails to acknowledge the reality that our economy has a large informal sector and women are the main players. While the budget statement is pointing out that gender mainstreaming is critical to development, it does not reflect as a priority women’s empowerment. This is witnessed by the allocation to the

Ministry of Women’s Affairs, Gender and Community Development.

The Ministry of Women’s Affairs, Gender and Community

Development was allocated $500 000 in 2015 and next year again the same amount is being allocated to this Ministry. I think we need to look into it. However, the Women Development Fund which was allocated

$150 000 did not get the full allocation when it was disbursed to ministries. It was gender on paper with no implementation. Gender

Mainstreaming was allocated $50 000 and next year it stands at $100 000 but there is need to make sure that this money is disbursed. We cannot talk of figures and not hear how this was implemented. This is where those quarterly reports from ministries are very important because that is how best we can monitor how much money have been given, how they have spent the money and the challenges they are facing.  There are training centres like Jamaica Training Centre and I think there is need to make sure these are given enough resources.

The issue of rebate has been talked about and I will just emphasise that there is need to make sure that we recognise that most of these cross border players are women and there is need to recognise the effort they are putting into building our economy given the fact that during the period 2007 to 2009, it was the same women who carried the burden of the Zimbabwean economy to save this country. We also need to interrogate the indigenisation framework. This has been said again and again that the policies are inconsistent and each Minister is coming up with his own definition of indigenisation. This is scaring foreign direct investment. Parliament as a House should propose for a national investment template which can be used by those whom we are approaching for partnership to do business in our country. This will help to curb any illicit dealings. Before I conclude, I need to touch on issues relating to other Ministries based on what I heard from the Committees. There is need for more exports than imports. I also think we need quarterly reports; this will help to assess the impact of the budget that has been allocated to the Ministries.  We should emphasise on capital infrastructure rather than re-current.

Mr. Speaker Sir, we are part of the global village and in the region, there are countries that are doing very well, we should not be proud but ask them how they are managing and copy best practices.   We have parastatals and institutions that are being owed money, for example, ZESA being owed US$1 billion and above, by the consumers.  However, if you look at who owes ZESA, you find that they are not the grassroots people but it is us up there, the big institutions.  Why are they not paying?  This US$1 billion could help a lot in the Ministry of Energy and they can sustain themselves using that money apart from their budget allocation.  We also have companies like Netone which is being owed and again, it is the same story, it is the same people who owe, those who are untouchable.

Recently, we were asking the stakeholders about pre-paid meters, where these have been installed and what is left.  They told us that they have even installed these in farms but they were told to withdraw – by whom, it is a mystery.  So, how can we move forward, when we move one step forward then two steps backwards?

Mr. Speaker Sir, we have a lot of potential but we do not have the will power.  Last but not least, I want to urge our Members of

Parliament, especially the Minister of Finance and Economic

Development, to read the book on, ‘how to lie in statistics’.  I thank you.

HON. P. D. SIBANDA: Thank you Mr. Speaker Sir, for the opportunity to air my views on the 2016, National Budget.  I know that I have stood up to debate when literally Hon. Members are actually standing on the their feet, wanting to go, whilst I appreciate that we all have got a right as Members of Parliament to be given an opportunity to debate on the Budget.

Mr. Speaker, whilst my hon. colleagues have commended the

Minister for the budget, I think I will speak to the contrary and say that there is entirely nothing in this budget that is worth commending the Minister.  If I was marking him out of a 100%, the probability of this budget to create growth in this country will be below 5%.  It is important for us to note that this budget, in its manner and form, is not going to improve the welfare of Zimbabweans in 2016, neither are we going to witness reduced un-employment levels nor are we going to see aggregate demand in the market.  Instead, in 2016 we are likely to witness a general decline in all macro-economic indicators.  We are likely going to witness increased poverty levels, continued deflation, reduced production capacity and more retrenchments in the private sector.  We are also going to witness more school and college dropouts as

safety-nets crumble, more incapacity by Government to meet its statutory obligations such as payment of wages and rendered services.

As a result, the projection by the Hon. Minister that the economy is going to grow by between 2, 7 and 3, 7%, in my view is over optimistic.  It is over optimistic because economic growth is premised on the following elements:-

  • Domestic consumption;
  • Government consumption;
  • Investment levels; and  The trade balance.

If we look at all these factors Mr. Speaker, we are going to see that there is dwindling domestic consumption, government consumption, and reduced investment levels and increased trade deficit in the economy.

Under those circumstances, Mr. Speaker, it is only under prophetic circumstances that you can have an economy growing.  It is my view therefore, that instead of the projection that the Minister made, we are likely going to witness the economy growing by not more than 1, 2% in the coming year.  The reason for that is simple – [HON. TOFFA:  On a point of order! We are kindly asking the Minister to listen so that he will be able to respond.  He is busy talking] –[HON. MEMBERS: Inaudible interjections]-

     THE TEMPORARY SPEAKER: Order, order Hon. Members

that is the prerogative of the Speaker.  There is no point of order.

   HON. P. D. SIBANDA: Mr. Speaker, I am trying to explain why I am saying growth in the economic levels next year is almost zero.  We have witnessed in this financial year, a reduction in revenue collections by the Government and there are no new revenue streams that are being created by this budget.  I went through the 302 pages of the Ministers speech; there is nothing new that is creating a new revenue stream for Government.  Therefore, Government consumption, expenditure, instead of increasing, it is going to decrease because of the constraints that are coming from a restricted revenue base.  As a result of that, we are not likely going to see any stimulation in the economy because of less demand that will be coming from the Government.

When we look at the disposable income, within the household, the domestic consumption levels, we have witnessed so many closures of companies this year, so much retrenchment this year.  There is no room in this budget that there will be more employment creation next year.  Therefore disposable incomes within households will continue to decline.

Our expectations Hon. Speaker, were that in terms of policies, the Minister was expected to come up with positive policies that were going to stimulate growth in the economy.  In terms of the figures, there is no much that we can talk about Hon. Speaker, we can only talk about priorities.  We are surprised that at this time and juncture of our level of development, we have got a Government that still continues to priorities the security sector at the expense of the productive sectors.

Hon. Speaker, we are always saying that Zimbabweans are peace loving people; we are a peace loving people.  The rest of our neighbours are not aggressive, therefore the question becomes why are we spending much more money on military hardware and software?  Why are we spending more money on buying hardware for the Police?  Hon. Speaker, peace without production is no peace at all.  Peace that is accompanied with poverty levels is not peace at all.  Peace with depressed investment levels is not peace at all.

Therefore, it is my view that the most important way that we should have invested in peace in this country was to invest in productive rather than consumptive sectors.  That way, we were going to increase the levels of employment.  That way, we were going to increase the levels of aggregate demand.  That way, we were going to increase the levels of disposable income in households and therefore with that kind of welfare levels, you do not see any uprisings coming up in the community.   Instead of investing in those productive sectors, what have we done?  We have invested in repressive machinery to try and repress a poor people.

Hon. Speaker, our expectations were that instead of the security sectors dominating the budget, we should rather have seen the budget being dominated by agriculture since we always say that we are an agriculture driven economy.  Increased agriculture production was going to stimulate other sectors but right now, as we speak, no other sector should be expected to grow except only the sector of consumption in the security sectors.

Hon. Speaker allow me to speak about just two things that I think are important that have not been spoken about by other members.  Number one is the ZISCO issue; I believe that the ZISCO Steel issue is an important issue.  The decision by Government to lay off the employees at ZISCO in my view, makes economic sense.  Why does it make economic sense?  It makes economic sense in two ways in that firstly, it is stopping the incremental aspect of the debt that is accruing to ZISCO.  Secondly, it does not deprive the employees of anything at all because they have not been getting wages anyway.   So, economically in my view, the decision to cut off the employment of ZISCO employees was a correct move economically.  However, my problem Mr. Speaker is to assume that debt and put it on the shoulders of the total public without conducting a forensic audit on how that debt was accumulated.

It is my view that we are making almost the same mistake that we made on the RBZ Debt Assumption Bill.  We are not yet sure how the total amount of debt that was accrued by ZISCO Steel was accrued.  I know that part of the debt was accrued by corrupt members of the ruling class that were getting money from ZISCO and now you want to transfer the entire debt onto the public of Zimbabwe.  I implore the Minister that what we need, I think as a condition to the assumption of that debt is that the debt should be first subjected to forensic audit to determine how that debt was accrued, then after that, the public may assume that debt.

The second aspect Hon. Speaker is the issue of the cotton industry.  Let me speak because nobody spoke about it but I think there is something very interesting that the Minister raised in his budget statement.  Number one, the Minister has alluded to the fact that the

Government of Zimbabwe wants to take over the loss making Cotton Company of Zimbabwe.   Number two, the Minister has alluded to the fact that they want to subsidise the farmers in the cotton industry for three years.  My problem with that aspect is that firstly, the market forces in that industry has determined that the industry is no longer competitive.  No wonder why the majority of private players that were in that industry have moved out.  It is no longer competitive and the vey Minister of a broke Government wants to adopt and take that responsibility to subsidise a company. Where do you have the capacity to subsidise cotton industry when you cannot pay even bonuses?

Hon. Speaker, there is an issue of sustainability even if you take that subsidy element, for how long are you going to subsidise that industry until it is competitive?  -[HON. MEMBERS: Inaudible interjections] –

THE TEMPORARY SPEAKER:  Order, speak to the Chair.

HON. P. D. SIBANDA:  It is my view Hon. Speaker that there are cheap and more economic alternatives to what the Minister did.  My proposal would be; it is important for us to understand that what has made that industry to die is that our product is less competitive compared to that which is produced by our competitors.  The reason for that is because we are producing cotton at a higher price than what Brazil for example, is producing at.  It is my view that instead of subsidizing, the Minister should have invested in technology that makes production of cotton more competitive so that we can compete on a global market with our competitors.   Subsidizing at the current production cost levels is not going to take us anywhere.  I think as much as the Minister is ambitious in that area, I foresee a scenario that we are going to fail.

The second alternative in that area is that we have got other crops that we produce at a competitive advantage – [THE HON. SPEAKER:

Order, you are left with five minutes] – Thank you Hon. Speaker.

Rather than us subsidizing the cotton industry, I agree it has contributed so much previously into the economy.  The Minister should have otherwise invested in ensuring that our farmers diversify into other crops where we have got both comparative and competitive advantage.  We have got so many crops that can be grown in Gokwe and other cotton growing areas, where we can do so without investing money of subsidies, the money which we do not have.

Right now we might continue to say this is what we want to do, however, without investing either in technology or diversification of the type of crop that we are going to grow in that area, we are doomed to

fail.

Finally Hon. Speaker, when I was looking at the budget statement, I am seeing a picture of a man holding a big tiger on the budget statement.  However, if you peruse all these pages in this budget statement, there is nothing mentioned about fishing industry, completely nothing?  When we are talking about the fishing industry, in other countries like Tanzania, it is contributing about 11% of GDP, it is contributing about 7% of total employment but in this country, the Minister simply ignores and omits that significant industry, only to see it on the cover page pictures. It is my view that, also on the issue of cost drivers, I do not see why the Minister had to reduce the cost of water to about nine cents. Where is that nine cents going to? Why does ZINWA have to be paid the nine cents per litre for water Mr. Speaker, because water is one of the major cost drivers that we have in this country. There is no need for the parastatal called ZINWA to be milking money from everybody which is actually increasing the cost of production in the country.

It is my view Mr. Speaker that cost drivers like water and land; we are more forested than we have land that is developed but we still continue to have land even in rural areas like Binga where I come from which cost $4 per square metre. Why do we not reduce the cost of land and have land developed, then we can begin to see commercial activities from which we can then begin to draw some resources and revenue. Thank you Mr. Speaker for the opportunity that you gave me to rush through my contribution.

HON. TOFFA: Thank you Mr. Speaker for giving me this

opportunity. Mr. Speaker, I am going to zero in on corruption.

Corruption is the one factor that is depriving the Minister of Finance and

Economic Development the much needed resources that we need for the Budget. This year 2015, an amount exceeding $600 million is reported to have been retained by line ministries and departments and the figure is projected to rise up to $719 million in 2016.

I want to bring to the attention of the House that independent researchers actually dispute these figures. They point out that the amount that is retained by line ministries exceeds an amount of $2 billion. It could even be more if one factors in corruption at the lower levels. Let me give an example of the Police Department in the Ministry of Home Affairs. The police are reported to have retained $38 million from fines and levies. That figure is too low Mr. Speaker. Hon. Members – [HON.

MEMBERS: Inaudible interjections] –

THE TEMPORARY SPEAKER (HON. MARUMAHOKO):

Order, order Hon. Members.

HON. TOFFA: Mr. Speaker, I have heard that commuter

omnibuses are charged $15 per day. I am told that they are issued with tickets every morning and are given an opportunity to go and make this money while the police wait and pick up this money from the commuter omnibuses on a daily basis. There are 25 000 commuter omnibuses in the country. Mr. Speaker Sir, this means the police are racking in a minimum of $375 000 per day. If you add the fines from vehicles and various offences at police stations, it means they rack a minimum of $500 000 per day, translating to a cool $180 million per annum. My question Mr. Speaker is, what happens to $140 000 million if only $38 million is reported to have been retained.

Mr. Speaker, the Minister announced that he proposes to increase fines by 100% for 2016, but what is very funny is that police project that they will retain in 2016 only $36 million. Instead of the figure increasing, it is actually reducing. This figure is $2 million less than this year yet one expects it to increase. Mr. Speaker, I believe that there is a huge amount of money that is being pocketed by individuals instead of going into State coffers. I have used an example of just the Police Department and I can assure you that the level of corruption in the 24 line ministries and departments that retain funds is the same.

While the idea of retaining funds may have been a noble one Mr. Speaker Sir, which was introduced, in my view this has become a drain pipe from the fiscus. Instead of the Minister to be working with a Budget of $4 billion, he should actually be working with a Budget of $6, 5 billion if corruption had been arrested. The Minister of Finance does not have the nerve to do the right thing or maybe he is afraid to burn his fingers. With lack of accountability and transparency in the collection and usage of these funds by the ministries, rent seeking activities in the country will continue Mr. Speaker Sir.

This is the reason why when ministries are advised to purchase vehicles locally, they disregard this and continue importing vehicles. It is because these ministries have slash funds. It is a wonder why Mr. Speaker, most of the senior civil servants own houses or vehicles that do not commensurate with their salaries. In fact, their life styles confirm that in addition to their salaries they have other income, which in my view is illegal. Mr. Speaker Sir, we have the Anti-Corruption Commission. Where is the Anti-Corruption Commission Mr. Speaker and what is it doing? What has it done so far? The ZANU PF Government pays lip service to corruption as evidenced by the nonprosecution of salary gate, parastatals and quasi-Government departments.

Mr. Speaker Sir, I will conclude by stating that Parliament should make sure that all fines, levies and other charges are channeled to the Consolidated Account. No line Ministry should retain funds until such time when a transparent system of monitoring the funds are put in place.

I thank you.

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I want to

thank all those who have made contributions, the Chairpersons of the various Portfolio Committees and individual Members of Parliament for their very constructive contributions.  I think I can say quite honestly that there is now greater appreciation from across the political divide of the prevailing circumstances as well as the strategies we must work out of our current situation.  I am very encouraged because if the contributions had been made in my absence, I do not think I would have identified whether the speaker is from the ruling party or not.  I think that is what should happen in the area of an economic debate.  We are now debating issues and not persons.  For that, I am eternally grateful.

All the contributions which have been made, in particular, from the Portfolio Committees, there is some common thread throughout a lot of these submissions.  The first is that all the Ministries are underfunded.  That is correct and I agree.  Another one is that we should release funds timeously, a correct observation and criticism but I think the response is something that we already know.  We operate on a cash budget, a multicurrency regime dominated by the United States dollar.  We do not have

– like one Hon. MP said, strictly speaking, a monetary policy instrument.  In short, we do not print money.  What that means is that we are only able to meet our budgetary requirements as and when we have received the money through ZIMRA.  If we do not have that money, we have nothing to disburse.  So I think we need to clearly understand but I am sure that understanding is there.  So, all the observations about us not paying timeously, under funding and sometimes putting in the budget allocation a figure which we eventually do not meet must be explained in that fashion.

Let me now specifically highlight – I cannot do justice to all the submissions which have been made since 3pm until now, but these reports are going to be fed to line Ministries because there are some issues which I feel strongly should be followed up by line Ministries.  Some of them do not directly concern the budget but basically addressing issues of shortcomings in administration and policy framework with respect to line Ministries.  I am sure that line Ministries will take heed of the main observations and recommendations which have been made in these reports.  But just allow me to highlight from each report, issues which I feel deserve to be highlighted.

I want to thank the Chairman of the Portfolio Committee on Foreign Affairs.  The issue which we are going to follow up in 2016, which this Committee has raised, is developing a diaspora policy.  I want to say that this is a matter which is being actively pursued and I hope that we should be in a position to come up with a diaspora policy.  We do so especially in our circumstances where it is a US dollar denominated economy.  The only source of the US dollar is through exports.  So we need to drive exports to get US dollars into the country.  We also get our US dollars from those in the diaspora when they do remittances to their dependants back home.  Another source of foreign currency for us is, if we have lines of credit to the productive sectors as well as loan financing.  Outside that, we will not be able to build any US dollar reserves.  So, given the contribution of the diasporans to the building up of stock of US dollar savings in this country and liquidity, it is important that we develop a diaspora policy which encourages them to send their money home through official channels.  What is estimated to come through is only estimated through official channels and we would want anything coming through unofficial channels to come through the official channels.  For that, we are going to develop a policy.

The Committee also raised the issue of re-engagement, I do not want to belabour the point but I have on many occasions said that the Ministry of Foreign Affairs is charged with the responsibility of pursuing the re-engagement, politically and economically.  With respect to new ambassadors who were appointed last year, when I had occasion to brief them, I emphasized that their new mandate should be to drive the economy and make sure that they woe investors into our country.  In other words, while I understand that foreign relations is political, they should now begin to put emphasis on economic relations.  I am happy to say that increasingly, we now get communication from all our embassies with respect to economic relations.  Sometimes we feel we are unable to cope with the demands that they are making on our services.

Hon. Chapfika gave the report on Economic Development and with respect to this Committee’s recommendations, I want to emphasise the following:  The debt clearing strategy is on course and as I have explained before, to get there we must meet our SM target benchmarks by end of this year.  The review is going to be in February next year.  We are confident we are going to meet them and this will clear the way towards clearance of our debts.  Let me also explain – this point was raised elsewhere by another Hon. Member.  Just clearing our debts to the multi-lateral institutions alone will not assist.  So, our dialogue with the multi-lateral institutions is that as we clear our arrears we must have an undertaking from them to meet our new financing requirements.  So, we are looking for new money.  In fact given that understanding which we reached in LIMA, we have set up a committee which is chaired by Dr.

Mangudya.  It draws representation from IMF, World Bank and African

Development Bank to draw up a country’s strategy paper on new financing for this country. So, as we clear, we must at the same time receive new financing in order to boost economic recovery in this country.

So, at the end of the day, we want to be in a position to have capacity after we have cleared those debts.  We must build up capacity to honour our debts sustainably.  There should be debt sustainability.  We cannot just build that capacity by paying and clearing arrears, we need more than that.  So, the conversation that is going on between us and the multilateral institutions is that by February or so, we must have done financing programme which we must agree.  Therefore, we clear the arrears and we get new money, this is what they said.  This is to boost various sectors of our economy.  What this economy requires is new money, not small but a huge amount that is what we are negotiating with the multilateral institutions and which we hope to succeed.

The Committee also made reference to civil service rationalisation and audit of staff.  Already, we have done it with the Civil Service and we have taken a decision at Cabinet to do an audit. I think the only remaining Ministry was Foreign Affairs because  much of it  is outside the country to do an audit.   We are now going to proceed to do audit of the Police, Army and so on as a first step towards rationalisation.  We have already made recommendations to Cabinet with respect to rationalisation of the Civil Service and it is going to make quite a lot of savings in the coming year. It is a continuous process.  Good management is a continuous process, you do not sit back and say that you have completed your task.  It is a continuous monitoring and evaluation as we go along. I am happy to say that the exercise went very well and it is now being implemented.

We have recommended some of the measures and some have

already started to be implemented, one of them is the issue on pensions.  All of us, even those who are receiving pensions, forget to know that we are not making contributions towards those pensions.  Pensions are being paid out of the current Budget, something that is not sustainable.  So, we correctly made a recommendation that we should start getting contribution from serving members.  This will eventually lead us to establishing a benefit funded pension scheme. We hope that this can be done sooner rather than later.  We want a separate fund which is a pension fund like Old Mutual Fund, where the employer and employee contribute and then of course the pension will come.  Right now there is no contribution and paying out of the budget is not sustainable.  So, we have to start a scheme whereby we separate and have a separate pension scheme to which the employer and employee will contribute.

Another point which was made by this Committee  but other Committees made a contrary recommendation; but this Committee said we must stop all retention of Statutory Funds.  Mr. Speaker Sir, Statutory Funds are established under various statutes and Treasury keeps monitoring those funds because they were made to be funds for a particular purpose.  For example ZINARA, in order to safeguard that money from consumption so that it is devoted towards infrastructure, if we were to put it in the Budget we will all be consuming it and there will be no rehabilitation of our roads.  If it is a question of management that is something that we can deal with but we are trying to protect certain funds which are necessary to establish and maintain our vital infrastructure.

So, I want us to understand that, but in any event, in the Budget, I have directed that by 31 January, 2016 all statutory funds must open accounts with the Central Bank because the points that Hon. Members are making are very valid.  Whilst they are separate from the

Consolidated Revenue Fund, they are in fact sub accounts of the Consolidated Revenue funds.  So, Treasury needs to keep an eye on those funds and from time to time, we have had to turn to some of them when we are short of money.

So, it is not like they are immune from action of Treasury, they are under Treasury.  When we are looking for money if we are desperate, we know already there is so much money we write and say we want US$10 million and we get it.  So, we need to understand that aspect also.

Then Hon. Chamisa, the Chairperson of the Portfolio Committee on Information, Communication Technology, Postal and Courier Services, Firstly, he made a point which is not correct, a very invalid point.  He said that we are not committed to ICT.  He forgets that right now we are undertaking the digitalisation of the country.  We are expecting that maybe by June or July that exercise would have been completed.  For that, we have been funding this exercise from the budget, originally, we had hoped that we could fund it from NetOne, it turned out that that was not so and the obligation ended up at the lap of the Treasury.  So, we have been funding it ourselves, out of our own resources.

Mr. Speaker Sir, we also have borrowed money for NetOne to expand their network, something like US$219 million. We also have borrowed from Exim Bank of China, US$98 million to support TelOne.  All that support I think should be acknowledged, it shows a serious commitment on our part to ICT technology development.  Some of the issues that the Hon. Member raised will certainly be referred to the relevant line ministry.

The Portfolio Committee on Small and Medium Enterprises and Cooperative Development, the recommendations which I just want to highlight are the following;

We are committed to capitalising SEDCO.  We have already gone to an extent now in the process of capitalising POSB.  We have been capitalising Infrastructure Development of Zimbabwe and we have capitalised also to an extent not to the extent we want, we have been capitalising Agri-Bank and we are committed to financing and capitalising SEDCO  and we should be doing this in the first quarter of next year.  This is to give importance to the informal sector which currently as all of us should know is 5.8 million Zimbabweans  are now earning their livelihoods from the informal sector.  So, we need to support it while at the same time taking measures or steps to formalise, but it cannot be done overnight.  We need to identify champion players in that sector so that we can assist them with access to capital, skills development and physical facilities.  Hopefully, that will make them already formal; access to financing through banks and so on.  So, those are some of the steps that we are taking in order to formalise the informal sector.

Let me also say while I am on this issue, there was some reference about the measure that I announced in the budget about exemption of duty on capital equipment.  I concede the point that we should never have put the threshold of US$1 000 000.  We are now going to make it open ended.  This is once again, in order to emphasise the need for kick starting the manufacturing sector in particular.  If we buy capital equipment in the manufacturing sector, in three or four months production can start.  Our problem could be that we do not have sufficient entrepreneurs.  At the moment we moan about the depreciation of the South African Rand.  To us it is a blessing if we know what we are buying.  If we are buying capital equipment, it means we can buy it cheaper than at any time.

So, as the Rand depreciates it is an advantage to us if we want capital equipment in this country which is why I have been coming very hard on the importation of consumables.  On that, please, I will come even harder.  Importation of consumables which are already manufactured locally, there is no longer any basis for anyone to bring in groceries in this country.  So, let us be sure that we remain of the same mind that we are seeking to protect our industries and this protection is just temporary while they build their strength.  After that, we will remove that protection and they should float like anyone else in the global competitive environment.

This is an issue, by the way, where the South Africans have raised issues about it and our explanation is very simple.  We are under sanction and we have not received any help from anyone.  We have not received any help from anyone all these years and I cannot allow seeing the complete de-industrialisation of our country.  So, we need to take those measures which are necessary to prop up our industry back to life.

Hon. Mandipaka, who is the Chairman on the Portfolio Committee on Defence, Home Affairs and Security Services, I think I agree with your recommendations.  Sometimes prevention is better than cure.  This happens when we are talking about our health or when we are talking about our political stability.  Security is key and we should never in this country take it for granted.  So, to that extent, we will continue to give support to our Defence forces, to the Police and Security Services.  When we watch television every day, do you not think that we are very lucky people when you compare yourselves with what takes place in those far flung countries both on the continent and outside?  So, we should never take that for granted.  I want to emphasise that resources permitting we will always make sure that we give priority to our security forces.

Mr. Mandipaka, I have taken note of the many PSIP projects that is the capital projects which are outstanding.

THE HON. SPEAKER:  Order, order.  Hon. Minister for the sake of our record Hon. Mandipaka is not Chairperson of that Committee.  It is Hon. Muderedzwa.

HON. DZIVA:  Hon. Mandipaka presented the report on behalf of

Hon. Muderedzwa

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA):  My apologies.  Sorry

Hon. Muderedzwa I did not mean to steal the thunder from your contribution.  I will follow up on these outstanding projects to understand what is holding them up.  For instance, I want to understand why the Central Registry Office has been under construction for a good 20 years if not more.  I want to understand because when we are distributing PSIP resources or funds, we are giving priority to completing those projects which were started.  So, I am going to find out what basically has taken place.

Hon. Dr. Mataruse, Chairman on the Portfolio Committee on

Higher and Tertiary Education, Science and Technology Development.  Thank you very much.  What I want to emphasise on this  issue is the fact that my focus at the moment or should we say the focus of both the Ministry of Higher and Tertiary Education, Science and Technology Development and Ministry of Primary and Secondary Education is changing the curriculum to give emphasis to sound Mathematics and the sciences, Science and Technology.  It has to start where it should start, at primary school level then thereafter, we can reap the benefits later on.

Now, to that end I propose in the budget I am intending to float two bonds.  One for the Ministry of Higher and Tertiary Education, Science and Technology Development to put up infrastructure at our university campuses, especially to do with hostels, staff accommodation, laboratories, lecture theatres and so on, but in particular hostels.  What we find is that especially the girl children are being abused by living in very dilapidated accommodation while paying very high rentals.  The trick here is that we float a bond which will be underwritten by rentals which we are going to receive from those students.  Right now, I am informed that upwards of 140 000 of our students are living off campus and they have to drive long distances and so on.

So, when we were doing the numbers I thought personally that we could do with US$50 rentals and I was told no, some of these students are paying US$100 per month for very substandard accommodation.  So, the infrastructure bond to put infrastructure on our state universities will be underwritten by rentals from students, which means we have a period when the money is raised and then when the students now have accommodation they start paying.  They can pay the bond on maturity.

On the Ministry of Primary and Secondary Education, what we need are classrooms and laboratories.  When myself and Mr. Speaker went to secondary school, those secondary schools had laboratories which taught General Science, Physics with Chemistry and Biology and now this is no more. So, we need to establish laboratories at our schools, especially secondary schools. This will be written by School

Development Levies and we already have some idea what we can collect from this source.

Hon. Mhlanga the Chairperson of the Portfolio Committee on

Mines, this Committee has raised an issue which is …

THE HON. SPEAKER: Order, again for the purpose of our records, Hon. Mhlanga read the report on behalf of the Committee, she is not the Chairperson.

HON. CHINAMASA: Thank you very much for that correction Mr. Speaker Sir. Hon. Mhlanga read the report. This Committee raised an issue which is affecting the mining sector especially new investments. That is the level of EMA fees. I think that the Committee did not read my entire Budget Statement because this issue has already been addressed through reduction of the fees as well as a staggered mode of payment of the fees, which I am sure will find favour with the investors. What I want to emphasise is that we cannot meaningfully talk about revival of the mining sector unless it is assured of uninterrupted power supply. It is to this end that Government has been giving priority to power generation and the steps we have taken, I am reasonably satisfied that in three or four years, we should be okay.

Kariba South Extension is going on target. It should be commissioned towards the end of 2018. During the visit by the Chinese President, we signed a $1.45 billion to do Hwange 7 and 8 which will award 600 megawatts to the national grid. Also on the sidelines of the visit, Kaseko which is a joint venture company between Government and a Chinese company also signed documents to do financial closure which again if undertaken, will do another 600 megawatts into the national grid.  We also have big independent producers which we have been encouraging and nurturing and these are Lisulu in Binga and Makomo Resources in the Hwange area. I am not talking of the small hydro-electric schemes as well as the solar projects, some of which have already been awarded contracts.

I think we have taken what measures we should with respect to power generation. This will not happen overnight, but at least it will give us the promise that we are putting proper foundation for our economic take off. The Committee also made a point of the money being owed to

ZETDC standing at $1 billion. Mr. Speaker Sir, we have been urging ZESA and ZETDC to speed up the installation of prepaid meters. Nothing stops them and there are a lot of financial institutions which are quite happy to finance the installation of prepaid meters. We have asked that this be extended to every consumer – mining, agriculture, domestic and manufacturing. Just imagine what I could have done with $1 billion.

I can put up a plant of 600 megawatts. That amount is being owed. Imagine if it were in the kit of ZETDC. I want to emphasise that ZESA and its subsidiaries should speed up the installation of prepaid meters. It is not sustainable that people just consume electricity and they do not pay. How do you sustain it?

The Committee on Justice, Legal and Parliamentary Affairs, Hon.

Majome made this report. I just want to emphasise one point that the Budget provides for Constituency Development Fund of $50 000 per constituency provided the necessary legislative framework is put in place. –[HON. MEMBERS: Inaudible interjections]- Aiwa ndokuti mukasikeka. Another point that I want to emphasise from your report is the issue about prison farms. I remember when I was in that Ministry; I helped ZPS to acquire farms under the Land Reform Programme. So, they have a lot of land, something like 14 000 hectares. What it needs is investments into irrigation which will make the prisons self sustaining.

I am aware that there is some project, a joint venture project which we are considering in the Ministry coming from the Ministry of Justice, Legal and Parliamentary Affairs to revamp the irrigation networks on the prison farms. I hope that this could be concluded and we can be able to make those farms productive again. –[HON. MEMBERS: Hear, hear]-

Hon. Nduna, Chairman of the Committee on Transport and Infrastructural Development. I took note of your concern about the arrears by Air Zimbabwe to IATA, $2.7 million. This will be looked into as well as the $6 million which you said should be availed for the completion of the work on the 750 metre stretch of the Harare International Airport Runway. I would need to understand what has stalled that project if it has not been completed yet.

I also want to emphasise that Cabinet has taken a decision that it should look for a strategic partner and the Ministry of Transport and Infrastructure Development is seazed with that assignment to look for a strategic partner to partner Air Zimbabwe so that we are able to get back into competition.

The issue about Border Post Authority. A policy has been taken that we should have a Border Post Authority and this initiative is being driven by the Ministry of Transport and Infrastructure Development. There was some problem of turf war between ZIMRA. Transport and all those people who mill around our ports of entry as to who was responsible. In order to resolve it, we set up a Cabinet Committee which is chaired by the Hon. Vice President Mnangagwa to resolve that issue. I am aware that progress is being made in resolving the issue. Once that is done, we should be able to put the necessary infrastructure to make sure that we facilitate entry of goods, services and people through the border.

I want to emhasise under this that we were able to amicably resolve a legal dispute with respect to the dualisation of the

Beitbridge/Harare/Chirundu road. The cost is now clear for us to look for an investor to come into joint venture with us over a concession period of say 15 to 20 years.  So, we are now identifying and we have identified one or two interested investors and we should be able to enter into a joint venture when we find a suitable partner.  We are going to do it under the framework of the Joint Venture Act which we enacted here not long ago.

Hon. Zindi of the Local Government, Public Works and National Housing Committee - what I want to emphasise on this one is that, you made the point that the Council of Chiefs should be a separate Budget and I have already acceded to that request.  The other issue that you raised, we debated it yesterday and I do not want to do with the 5% allocation to local authorities, I do not want to flog it again.

Hon. Godfrey Sithole presented the report on the Parliamentary

Committee on Youth, Indigenisation and Economic Empowerment.  My own emphasis on youth is that we need to empower them through extending a skills development programme.  First and foremost, I think that is a prerequisite to any economic recovery.  We need to empower them with the necessary skills and to this end, we are going to give support to vocational training centres big time so that they are well equipped and that also they are well manned in terms of people who have skills to be able to impart those skills.  Already we have through the facilitation of the Central Bank, created a $10 million fund for borrowing by youth projects.  I am aware of course that previously that fund was abused but this time we are saying we are going to track down all those who borrowed and make sure that they pay.  We want this to be a revolving fund.  We want to track them and some of them went to buy cars and nothing to do with the projects.  We cannot allow that and it is not sustainable.  So, we want to encourage the culture of paying,  At the same time, there was quite a significant proportion which paid and our strategy now is that with the $10 million, we want to start helping those who paid so that they grow.

Also to take note Mr. Speaker Sir, in the area of youths is the $75 000 allocation that I have made per each administrative district.  Again, to go towards youth projects assisted by the International Labour Organisation (ILO).  I had the occasion to visit some of the ILO supported projects in Mashonaland East and I was quite impressed with what you can do with very little money. I believe that these will go quite some way towards assisting in that regard.

Hon. Labode, the Chairperson of the Health and Child Care Portfolio Committee - the Committee of course makes the point which I also made in my budget that on the health Budget, I did not meet the requirements of the Abuja Declaration.  I conceded that but Hon. Labode tries to come to my assistance by saying that there is development assistance going into the health sectors, which if taken into account, Zimbabwe is actually complying.  But, the response that I gave her was that as long as whatever assistance is given is outside my Budget, I do not know that assistance.  My dialogue with development partners has been to emphasise that all development assistance should be channeled through the Vote of Credit.  This will help to avoid duplication because sometimes Government is going in one area and the development partner also going in the same area and the help becomes superfluous.  So we need to co-ordinate and make sure that there is no duplication in terms of the allocation of resources.

The Committee makes reference to the introduction of a National Health Insurance as a means of health care financing in Zimbabwe.  I have heard about this and I hope I am going to take counsel and advice on what this would mean in our situation.  Generally, it means that people must contribute.  If people are not contributing, then it cannot be sustainable.

So I would want to understand how this is going to be funded and I am sure that the Minister of Health and Child Care will assist me in this regard.  The issue about disbanding the Health Service Board - the Committee feels so strongly about it but I think that this is a matter that should be referred to the Civil Service Commission or to the Minister of Public Service and I am sure that he will follow up what the argument is and will come to the assistance.

Then Hon. Nyamupinga – the Chairperson of the Portfolio

Committee on Women’s Affairs, Gender and Community Development

– I want to emphasise here that the Women’s Bank is on course.  When we started, we had this notion that setting up a bank is an easy thing.  We thought that it is just a question of finding the money and then you have a bank.  No, it is more than that.  The Ministry has had to hire consultants, KPMG who are doing the consultancy to assist them set up this Bank.  As soon as that is done, we have already $10 million available and the African Development Bank agreed to chip in with $5 million.

Hon. Dhewa of the Portfolio Committee on Media, Information and Broadcasting Service – just to emphasise here is that, we are doing the digitalisation and it is on course and we hope to complete it by I think end of July next year.

Hon. Kanye of the Portfolio Committee on Primary and Secondary Education, Sport and Recreation – once again I have already made the point about the Infrastructure Bank and I do not want to continue belabouring the point. The recommendation of course is that we should prioritise Sport and Recreation.  I am going to have a conversation with Minister Hlongwane to understand what is possible that the Treasury can do in order to make sports a business.  It should be a business and employing a lot of our people especially the young ones if it is properly organised and managed.  The people are ready to pay money to attend Dynamos and Highlanders matches but if that money is not ploughed back into sport, and there is no improvement in the infrastructure, they will not come back.  So, it is very important also at the club level that we do not have this bickering and quarrelling which does not contribute to sound management of those clubs. So it is a problem that I think we need to address.

The issue about ZISCO Steel, I am now talking to Hon. Mhere who spoke and presented a report on the Ministry of Industry and Commerce. I just want to comment on the ZISCO Steel issue and for us to understand clearly. Steel is very important to economic growth of any country; more-so, when we are at our level of development. You need construction and once our economy takes off, there will be a lot of construction – roads, bridges and a lot of structures, offices and so on. For that, you need steel. Giving importance to steel, I decided that I take over the debt or the liabilities of ZISCO Steel to make it attractive to suitors and investors who may want to take over. In any event, I was explaining to one Hon. Member here who was protesting that decision and I said, in any event Government is a guarantor of those liabilities. So, it is really for all intents and purposes a book entry transaction cleaning up the balance sheet of ZISCO Steel and while basically making it attractive for any new investments. I hope that decision will assist to put an end to the saga of ZISCO Steel.

We are also pursing Mr. Speaker Sir, the ease of doing business, the cost of doing business. Overally, we have been pursuing a lot of policy initiatives in order to create an environment which is conducive to Foreign Direct Investment and we have been looking at every aspect from the cost, EMA fees, the cost of water in irrigation, cost of electricity to clarification on the indigenization framework; all that has been intended to make an environment which is attractive to Foreign Direct Investment. I am happy to say that things are going in the right direction and we should be able, from building consensus on policy framework, it is no longer an issue. What is now an issue is implementation of the polices that we have already taken.

Hon. Kwaramba – Public Service, Labour and Social Welfare; I think I have already responded with respect to the rationalization of the Civil Service. Agriculture, Hon. Chitindi, I accept all the observations that you made. But, what is important here to highlight is that we have taken the first steps to create property rights in the land that we acquired under the Land Reform Programme.

The first step that we are taking is resurveying the new boundaries.

When the farms were taken up, we cut them into small pieces. We are now resurveying the new boundaries so that farmers can operate under secure boundaries.

This project is now being undertaken through funding from the European Union as well as from UNDP. It is GPS; we are creating boundaries which cannot be moved which, will have fixed coordinates. If people move a peg, they will be wasting their time because with GPS; we will be able to come and say, the boundary should be on this point. So, it is something that I am very happy with in respect to agriculture. We need to give A1 permits which have started tradable 99 year leases which we should be able to conclude very soon. – [HON. MEMBERS:

Hear, hear.]-

I also want to highlight here Mr. Speaker Sir, the efforts that we have been making to promote irrigation. More-so, given that we are going to go through what looks like a devastating drought. So, we need to make sure that we build irrigation. Now, what Hon. Members need to know a lot of them submit that we should build more dams and so on – yes, that is correct. But, Hon. Members do not know that we have more than 10 000 dams in this country – [HON. MEMBES: Hear, hear.] – which are not linked to the field edge of the farmer, some of which are silting. So as we go forward, we must try to desilt these dams as well as link the dams to the field edge of the farmer. We must develop irrigation for this country.

In this respect Mr. Speaker Sir, we have quite some support. Kuwait Fund has undertaken to do irrigation development at Zhowe dam in Matabeleland South. This will open up 2 300 hectares to benefit something like 1 500 households – [HON. MEMBERS: Hear, hear.] –

Last week, I signed with the International Fund for Agriculture Development (IFAD) a sixty million dollar loan to do irrigation rehabilitation of small scale and to add to new small scale irrigation schemes.

The Brazilian mechanization facility and we have received the first tranch, we have already distributed to 21 small scale irrigation schemes and this is on cost recovery basis. I am satisfied as Treasury on the measures that the Ministry of Agriculture has put in place to make sure that it is undertaken on a cost recovery basis.

We also have support from the Japanese. I also signed a grant to rehabilitate and extend Nyakomba Irrigation Schemes. Already, using our own resources, we have already rehabilitated nationally something like 20/22 irrigation schemes. So, as far as I am concerned, I think we remain on the right track – [AN HON. MEMBER: How about those ….]– That is commissioning not distributing. The beneficiaries know that it is on a cost recovery basis.

The tractors remain Government property and managed by Government functionaries. Anyone wanting a service will pay and the money will be paid into an Agri Bank account. We have already set out how much should go towards servicing the loan, how much to servicing the equipment and how much for management. That, we have already done.

Hon. Mashange, the Portfolio Committee on Environment Water and Tourism, they are making the point that we should scrap the 15% VAT. Mr. Speaker Sir, we will not remove the 15%. I have carried comparisons with many countries, that is, VAT on foreign tourists coming into the country. What I think I want to emphasise in tourism is first, Cabinet has agreed on a new visa regime which is very progressive which will allow citizens of many countries to obtain visas at points of entry.  Some are allowed without any visa and then there is category of many countries whose citizens can come to Zimbabwe and obtain visas at points of entry. That already is promotive of tourism in the sector. The other measure we are taking is that I would want to advise the hoteliers, especially those in Victoria Falls and places like that, not to mourn about the depreciation of the Rand. They should consider coming up with a Rand tariff that is commensurate with the charges that are charged in

South Africa so that they can continue to attract arrivals from South Africa.

Let me now respond to those who made individual contributions. Hon. Cross is not here. The thing about economic management, it is all about assumptions. The assumptions we make could end up being a wrong one even a day after. Of course, it happens. You predict that it is going to be normal to below normal – because that is what the forecasters have told you then you find that there is no water. Already, it means that assumption is now overtaken by events.

Overally, let me say this to the Hon. Member who is making interjections. The Hon. Member was wrong to argue as if economic recovery is an event.  First, the Hon. Member does not make an effort to understand the situation we are in. Always, the first step you must do if you want to correct things is to understand the reality of the existing circumstances. When you do, then you craft your way out of that adverse situation. You cannot argue without taking note of what is prevailing, otherwise it is just academic, that is the stuff for universities. I am confronted with real situations of a historical nature and I have to accept that I am in this quandary. I have got a debt, sanctions and so on but not to mourn about it – but to come up with strategies to get round those and overcome. That is exactly what I am doing.

Because he is not accepting where I am, he does not follow the path that I am going to follow to get us out of that situation. He does not follow. I am urging him, next time, please get first to the reality. What is the reality? For instance, the assumption of our Budget is that there is decline in commodity prices but not all commodities. Oil is declining but in our favour. Gold and nickel are declining but adverse to our situation. Our strategy therefore should be to ramp up production so that we make up what we are losing in export receipts, we make it up through volumes and that is what our strategy is going to be, right across whether we are talking about chrome or gold – we are going to ramp up production.  In this respect, we have made notable achievements in the gold sector alone. Two years ago, we were at 13.7 tonnes and by end of this year, we are going to knock 19 tonnes. Next year we are targeting 24 tonnes. I hope with the measures that we are taking in the diamond sector, we should be able to ramp up production from three million carats to six million carats. We are acquiring equipment from Belarus and we are going to equip our Zimbabwe Consolidated Diamond Mining Company to exploit the three concessions previously belonging to Kusena, Jinan and Marange Resources.

The process of consolidation will take time and I sense some times that there is some resistance. It will take time. We will proceed in a parallel fashion. Minister Chidhakwa will proceed with his consolidation wherever it gets him to, how long ever it takes him but meanwhile, immediately we will start producing diamonds through the Zimbabwe Diamond Consolidated Mining Company. We have also started cutting and polishing of our diamonds. Aurex which is a subsidiary of Reserve Bank has started cutting and polishing of diamonds and we were able to assist it to acquire state of the art equipment from India. At first, we were going to China and we realised that they were also buying from India.  When I look at all those things including which is sometimes not taken into account, the fact that we are putting in place funding of power stations means that we are putting a proper foundation for our economic take off. This country will not go anywhere without energy and power. Agriculture and irrigation will remain where it is.  Manufacturing, smelting and mining will all need power and given the shortage and deficit in the region, we cannot hope to import it from anywhere else. It is very important that we put those foundations in place.

I think on statutory funds, I have already responded. He did make reference to that. On tourism, he was saying that the devaluation of the Rand and Kwacha is adverse. I agree but the strategy is for our hoteliers to come up with a tariff which is denominated in Rand. After all, the Rand is in the basket of our multi currency regime. I am also expecting growth from construction, tourism, even from agriculture, I see hope that growth can come from that sector.  I want to put your minds at rest; the borrowing that I have done in foreign markets is not for consumption, it is all going towards creation of assets which generate revenues streams when completed.  The model that I have put for Kariba South is what we are going to put in place at Hwange 7 and 8 and elsewhere.  We borrow – the asset which is created, we hive it off from ZESA, and we have it into a special purpose vehicle.  The special purpose vehicle opens an

Eschol account.  As it sells electricity to ZESA, the receipts will be put into Eschol account primarily to save the loan. If there is any surplus, that is what we can share if we have to.

On police fines, I must concede that the hike from US$20 to US$100 also appears to me to be exorbitant - [HON MEMBERS: Hear, hear]- we must find a way.  My problem is that when you look at the level of fines, it is from US$20 which is level three to US$100 which is level four yet I felt that I must make a statement about the rule of law on the roads.  So, we must find a way and I believe the Attorney General is going to find a way so that we hike the fines reasonably.

There was a point which was made about duty on books.  There never was, we never imposed duty on importation of books, if it was then it is a mistake, just ignore it.

Thank you very much Hon. Dr. Kereke for supporting the budget.  I take your point Hon. Dr. Kereke that when we are supporting the vulnerable groups or we are giving any inputs, we should have regard to the natural region.  We should give to natural region 4 and 5 small grains; we should not give inappropriate seeds to those regions.  I think the Minister of Agriculture, Mechanization and Irrigation, is fully aware and I belied they do not just distribute willy nilly, they do take into account the region and so on.  Especially now, they are taking into account the fact that if the rains come, it will probably be for a shorter period.  That again, is an assumption; the rains can come and go on until

May, which is why the Minister of Agriculture, Mechanisation and

Irrigation Development’s advice is with each heavy rain, plant something.

With respect to debt, the ZAMCO one, I think it was raised by Hon. Cross.  Just to clarify that we are only taking under ZAMCO colleterised loans.  So, I do not anticipate that we will suffer any loss.  Essentially what we are doing is when we take it, we sit on it, and we do not believe that prices will remain as depressed as they are.  When the prices pick up, we sell that asset and we will find ourselves awash with money – that is the assumption.

Hon. Mukupe, you made reference to civil service reforms, I have already alluded to that.  You also wanted to know that the issue about land compensation was not clear.  The Constitution says we pay compensation for improvement and not for the land.  The Ministry of Lands and Rural Development is quantifying that compensation with respect to improvements, the boundaries that the undertaking is to do with new farmers who benefited under the Land Reform Programme.

Special Economic Zones, yes the Bill has been gazzetted and I am sure that we will be able to get support from Hon. Members.  You made reference about anti-money laundering laws, so that they require review.  They will not be reviewed; we are a member of the global economy.  If we do not play it according to the rules, we get into serious problems – we have complied, please do not rubbish your country.  Mr. Speaker Sir, Hon. Members should not rubbish their country when in fact we are being rated highly for compliance with Anti-Money Laundering Regulations.

Hon. Khupe, I thank you for your contributions, I agree with you that we should invest in youths and women.  As I said, we are going to make sure that SEDCO is capitalized so that there is lending to women.

However, more importantly, you will find that there is a lot of interest with Micro financiers to finance women projects.  Already some lines  of credit have come through, NMB, CABS and CBZ for lending to

SME’s.  So, it is really up to the commercial banks to be active in that regard.  I also signed a US$3 million support loan from the bank of Arab re-construction based in Sudan; they also want to support women and SEDCO.  Like I said, Hon. Khupe, we should not import things that we are producing locally; doing so will be undermining our own employment creation efforts.  I was happy to know that when I was taken around Bulawayo, there were some companies which have now been revived primarily because of the protection that we are putting in place especially in the textile. I am happy for Hon. Mabuwa who forced me into that programme and we visited 3 to 4 companies which have now been revived – that is the way to go.

Now, let me put into context what a travelers rebet is.  It is not money for business; it is a privilege we are giving to the traveler to bring in personal effects duty free but the facility is being abused and in fact some of the corruption is around them.  If you are a trader import your things, declare them, pay duty make your money.  You must know what you are importing and you must know your market.  That is the message I would want you to pass on to traders.  They should not use the travelers rebate as the one to finance trading no that is not what it is intended to do.

The issue of corruption – yes, you know corruption is now endemic in the country so, to fight it I must follow the Shona proverb yekuti haikona kudzingirira tsuro mbiri, ukadzidzingirira dzese hapana yaunobata.  So, what we have decided to do, we are going to attack corruption in two places that is where we are going to focus our attention.  In tax administration we want to strengthen the administration of ZIMRA.  In this respect, we are also looking at points of entry which generally sources of corruption.  That congestion you find at Beitbridge, some of it is man made to create a confusion and chaos so that corruption can be facilitated.

There are a lot of people who mill around there, who should have no business being there [HON. MEMBERS: Inaudible interjections] –

THE HON. SPEAKER: Order, hon. members on my right, please

can we hear the Hon. Minister.

HON. CHINAMASA: So, we are almost in regular meetings with

ZIMRA.  First, we are going to put a CCTV and we will start with Beitbridge.  Secondly, we are going to track transit fraud.  What has been happening is, you remember there are some commodities which we banned, tomatoes, those which are not locally produced, tomatoes and potatoes but we still find them locally and we are always what is happening.  What we found is that in some instances trucks come to declare at Beitbridge that they are destined for D.R.C or Zambia but there do not get to Chirundu, they get to Highfield, Mbare and dump the goods there, especially fuel and agricultural commodities.  So, we need a system of tracking so that we are sure that if you declare that you are going to Zambia we must follow up, track you until you cross the border.

Another initiative which already the Commissioner General has announced and which is going to be speeded up is that any tax payer must have an electronic device which is linked real time to ZIMRA, Minister of Finance, Treasury and Reserve Bank, real time.  If there is any interference there will be severe penalties.  So, we want to be fair, we do not want to get what is not ours but also we want tax payers to pay what is due.  Now, if there is total compliance it will give us an opportunity to further reduce the level of taxation in this country which hopefully also will promote compliance with our tax regime.

Hon. Mandipaka you made reference to the police, especially to introducing electronic network so that we curb police corruption, we also help revenue collection and so on.  I want to say that we are already working on a joint venture, it has not yet come to Cabinet but I am aware we are working on a joint venture with another investor to have electronic devices.  This will mean, if it is adopted by Cabinet, and we have to link up with Vehicle Registration department.  We must build a database on each driver on each citizen, do you have previous convictions?  When you pass through a police roadblock they will have a device which can detect that you were fined but you did not pay, you were convicted at the Harare Magistrate Court of negligence and licence was suspended but you are still driving.  So that is where we want to go, it then means a lot of vehicles will have to remain at police roadblocks when we successfully implement that.  It will also mean we are able to maximize collection of fines and so on.

Hon. Misihairabwi-Mushonga.  The hon. member, Hon. Speaker - you will recall, brought a baby here.  Hon. Speaker did not ask when did she get pregnant, when did she deliver, where did she steal the baby from if she did not become pregnant?  I thought the point was made but next time she should tell us who is the father and when did she give birth.    Hon. Misihairabwi-Mushonga makes a very valid point about the need to support livestock farmers especially in the drier parts of Masvingo, Matabeleland South, Matabeleland North and Midlands.  To be honest, we have always been very short of strategies to deal with this situation.  I was discussing it with the Minister and I believe that where we stand the reality of our situation is that cattle are dying.  I think the intervention we should have is to find a way to buy those cattle, keep the money and help the farmers restock when in fact the weather should improve.  We are going to engage the Ministry of Agriculture and Treasury, to look at that to see to what extend we can assist in that regard.

I do not think that making grass available can meet the demands of all these, I do not think it is possible.  We will see how we can assist in that regard, it is not in the budget but it is something we can see whether we can help you.

The issue of sanitary wear, you know it is very difficult Hon. Speaker Sir, to argue issues to do with under garments – [Laughter] – I would rather have this matter dealt with outside this forum and you can look into it much more – [HON. MEMBERS: Inaudible interjections.] – The point she makes about debt management Mr. Speaker Sir, yes we have the strategies to clear the arrears. The rules of the multilateral institutions are that you cannot access the benefits of your membership unless you have cleared your arrears which is why the strategy is to clear the arrears. I also made reference to the fact that we have constituted a committee to start working and producing a Country Financing Programme. Already some two or three meetings have already been held and we hope that by February we will be able to do so. The idea is that as we clear the arrears, we get some money to recover and we resuscitate our economy. That is the way it goes.

She is wrong to say there is variance, did she say political ideology within my party. Everything that I have been doing, I have cleared with Cabinet. So, this notion that there is difference between the Minister of Finance and Economic Development and colleagues in Cabinet is totally wrong, mistaken. I would not go to the IMF without the President’s permission, you know. Even the disagreements, you know when people fill strongly about issues, personally I take no offence. I give them room to articulate themselves and so on and I think it is healthy. I can also respond and give my side of the story but what I am always confident and happy about is that all the measures, strategise and policies that we are pursuing as Treasury have been endorsed by Cabinet chaired by His Excellency the President. So I do not want to hear this story about there being disagreements, conflicts and so on. They are just to sell newspapers.

Hon. Chakona on the ICT budget allocation, I do not agree it is too little. I told you about how much I have borrowed and all going towards ICT, that is Netone, TelOne and digitalisation. All in all, it is coming to something like $400 million to ICT. So, it shows that I am attaching a lot of importance being a tool in terms of employment creation.

Hon. Shamu, thank you very much for the support you have given and you understand fully that there are constraints but like I said, I do not want us to mourn about constraints. I want us to accept that there are binding constraints but to work out strategies to overcome and get round them.

Hon. Mpariwa, thank you very much for your support. You know, sometimes when we talk about safety nets, we forget that the support we are giving to vulnerable groups is a safety net. The inputs and food relief, we are giving to vulnerable groups and disadvantaged, that is a safety net. At the moment, we have enough food to last us, at present about ten months. Already we have been giving permits. The Minister of Agriculture, Mechanisation and Irrigation Development has been giving permits for importation by millers and merchants.

If you want to import maize, fill free and you will be given a permit because we felt that it is not just Government only. We must also involve the private sector. Already, the private sector has imported something like 400 000 metric tonnes. All in all it should be something like 750 000 metric tonnes. On our part we imported 60 000 metric tonnes but we have in stock 154 000 metric tonnes of our own maize in GMB, not to talk about wheat. So, all those are safety nets. When we start distributing drought relief, which is a safety net which we should acknowledge.

The inputs we are giving to cotton and let me explain, Rushinga, Gokwe, Chiredzi, Chisumbanje and Muzarabani are dry areas. Do not make them want to grow maize because they are very marginal areas and only cotton can do. Now, because of the challenges in the management of the cotton industry, farmers were moving away to tobacco. What this means is that eventually they will be so impoverished that we will need now to support them fully. So, we are now giving them free cotton inputs for the next three years because we want to lure the farmers back to cotton production. This is why we are taking over COTTCO so that we are a key player in the industry so that we can dictate the rules and know what is happening and is fair to our people. That is what we are doing. So, it is a policy which I believe all of us should support otherwise there will be nothing to grow in Rushinga if they move away from cotton – [AN HON. MEMBER: They can grow soya beans.] – Soya beans in Rushinga? Ah, you are not a farmer I can see that. You grow soya beans Mr. Speaker where there is good rainfall and preferably under irrigation. That is how it is done – [AN HON

MEMBER: I am a fisherman.] – So, when you are a fisherman Mr. Speaker Sir, you must comment on fish – [Laughter] – Leave others to comment on other sectors.

Hon. Mpariwa, I know you have taken pains to behave like you are still a trade unionist – [Laughter] – We are here as Members of Parliament to look after the entire economy and the economy means workers and employers. Are you with me? Mr. Speaker Sir, now she still continues to talk as a trade unionist defending only one side– [Laughter]. The tragedy Mr. Speaker Sir, of the rigidity in our labour laws is such that it caused the collapse of a lot of companies which were being required to pay retrenchment packages when in fact their coffers were dry.

Instead of the flexibility to allow them to downsize their operations and wait for a better day, workers and the employers just watched to see the companies collapsing. Now, the flexibility that has now come about will allow companies to downsize and wait for a better day. Those of you who have started businesses, it is not easy to start a business. Those who start, they start first with their wife or wives whom they do not pay and also their children, when they expend they can then hire outside labour. When things get tough, they are then told you cannot dismiss but just close your factory. Personally, I am very happy with the new flexibility that is now prevailing in the labour market.

In fact, Hon. Mpariwa, you know through you Mr. Speaker Sir ...

THE HON. SPEAKER: Yes, I was going to say Hon. Minister, do not be too personal – [HON. CHINAMASA: No, no, Hon. Mpariwa] – Address the Speaker. Order, Hon Minister, the statement has been withdrawn.

HON. CHINAMASA:  Thank you.  I was saying that what we

have experienced over the years, especially from 2000, is to see formal employment coming down from around 2 million to the current half a million.  I believe that all those companies need not have closed if we had labour market flexibility.

Hon. Chinotimba, thank you for your support.  You made reference to support to farmers and that the banks are not supporting.  We are going to look into that because they did mention that they are going to give support, so it is something that is going to be monitored by the Reserve Bank of Zimbabwe.  They are also encouraging commercial banks to identify champion farmers so that they can also be supported.

Hon. Maridadi, you started by praising me to the sky, then your contribution is nothing but –

HON. ZWIZWAI:  On a point of order Mr. Speaker Sir.  My

point of order is arising from a ruling that you have already made or rather advice that you gave to the Minister in your polite way, as an Advocate and Speaker, that the Hon. Minister should not personalize his debate.  He has personalized his response to the debate by Hon. Maridadi.  My point of order is just the amplification of a point of order that you have already raised yourself saying that the Minister should not personalize and say that the debate was nothing.  I thank you.

THE HON. SPEAKER:  Hon Minister, if indeed you indicated that the contribution by Hon. Maridadi was nothing – [HON

MEMBERS: Inaudible interjections]] – Order, order, I must admit as Chair that I was talking to the Clerk and I did not quite get it.  So, what I will do is I will get the Hansard and then I will make a ruling tomorrow.

HON. CHINAMASA:  You know, the Hon. Member correctly

started by praising me to the sky, that I had done fantastic work but he went on to basically show that I had not done fantastic work.  His whole speech was criticism with nothing to show the fantastic work that I had done.  So, I am still waiting for the Hon. Member, at some stage, just to beef up that first statement and bring evidence to prove that I have done fantastic work.  The Hon. Member, when touching on re-engagement, seems to suggest that there is no consistency and that is not true.  Like I pointed out earlier, our re-engagement has been coordinated and endorsed by the entire Cabinet, which is why we have been able to make the strides that we have done.

He makes reference to the fact that beneficiation will not get anywhere because there is not enough throughput.  In some cases, it is true but not in all cases.  For instance, on platinum, the budget makes reference to the pressure that we are giving to platinum producers to value add.  We have given them a road map.  There is enough throughput from platinum with respect to diamonds and value addition.

There are enough diamonds that we are producing even where the level is to support a beneficiation process - also in gold, across. I did notice that we do not have the output of soya beans that we should have.  That is why in the budget, we are supporting farmers to grow soya beans.  We would want to push our production figures from something like 60,000 metric tones to 240,000 metric tones.  The same also applies to cotton.  We need to push up the production of cotton so that there will be throughput to any beneficiation and value addition that we may embark upon.

Hon. Mavenyengwa and Hon. Chiwetu, thank you very much for your support.  I took note of course of the uncompleted PSIP projects and I will follow up to see what is holding them up.

Hon. Bhebhe said I must accept failure, I do not accept failure because that is not in my DNA. We have challenges and to each challenge, we already have strategies to overcome the challenge.  What I think the Hon. Member needs to be advised is that some of those challenges cannot be overcome overnight.  It is a process and we are already embarking on those strategies.

Again, he has no understanding of what it takes to grow the cake.  The Pre-Budget Seminar rightly took it as its theme, growing the cake but he has no understanding of what it means.  To grow a cake, you need first the pots or the oven. So, when someone starts buying the oven, at that stage you can accuse him that you are not baking any cake. It is true but if you are looking at the whole thing, you need an oven to make the cake and then you need flour, sugar and yeast maybe.  So, there is not that understanding Mr. Speaker Sir, of what it takes to grow the cake that you need a lot of components.  You need a lot of elements, and you need a step by step approach to grow the cake especially the economic one.

For instance, like I pointed out Mr. Speaker, you cannot grow this economy without the enablers, without power, railway, roads and water.

So, when they see us frantically looking for money to put power

stations, they do not see the end result.  That is part of growing the cake.

So, they need this education – [HON. MEMBERS: Hear, hear]-

Hon. Bhebhe, I think I have already answered you with respect to duty exemption on capital goods, we are going to make it open ended.  I take note of your argument about second hand motor vehicles.

Currently, we use the age of the vehicle from date of manufacture.  What you are now proposing is that we must also look at the mileage, maybe we need a combination of both but what formula to come up with that will have to be some time later.  For now, we go by the date of manufacturing.

With mining, there was a quite a lecture from Hon. Bhebhe on our policy of indigenisation.  If there is any sector where our indigenisation sector is more relevant, it is in the mining sector because the resource is ours and it is depleting.   We know that globally, there is now what is called resource nationalism where a lot of countries have just been left with empty holes - the minerals gone, they have got nothing.  So what we are saying is, we must engage the investor.  We also want what is rightly ours – [HON. MEMBERS: Like Chiadzwa] – For the information of Hon. Members, Australia is one good example where resource nationalism is even more serious than we take it here.  They just do not allow any company to come in.   A Chinese company had bought Rio Tinto.  The law permitted them to buy it and that is Rio Tinto in

Australia.  The Government intervened and said no, we cannot allow a Chinese company to buy our Rio Tinto, it is our flag bearer. So, resource nationalism is something that we need to take very seriously and our 51 49% shareholding is the most appropriate one.

Mr. Speaker Sir, I think in other forums, I have asked citizens of Zimbabwe not to be biased against any nationality when it comes to investment in Zimbabwe.  Money has no colour, so we should not have any regard to the nationality or to the source of funding but the reality of the moment is that you can only ignore China at your peril.  It has grown consistently for more than 30 years at 10% growth consistently.  That has never happened in the history of any country and it is now the second largest economy in the world.  It is now called the manufacturer of the world.  You can go to any country, in Europe, America and find out where the goods are coming from; they are coming from China.  In three or five years, it is going to overtake the economy of the United

States.  It will become the number one economy.  If we look at ChinaAfrica relations, every country which I visited on the continent have big infrastructure projects funded from China, from Ethiopia, big railways, hydro-electric to Kenya, South Sudan, Sudan, Senegal, Cote d’lvoir and you name it.

Now for us here, small as we are, to have a bias against Chinese investors, I  feel sorry for such sentiments – [HON. MEMBERS: Inaudible interjections] – Let me say this Mr. Speaker Sir, as we engage other nations, the responsibility to look after our interests is ourselves.  You do not expect anyone to look after your interests.  If we are doing business with the British, it is for us to look after our interests, not to expect the British to look after our interests.  If we are doing business with the Europeans, it is us who must look after our interests.   Similarly, if we are doing business with India, it is not the Indians who are going to look after our interests, it is ourselves. Certainly, the same applies when we are doing business with China, we must look after our interests.  If we are foolish, we have no one else to blame.  It is our responsibility and we are very skilled and very educated to know what our interests are and as we engage other partners, we must look after our interests.  Mr.

Speaker Sir, thank you very much for this kind attention – [HON.

MEMBERS: Hear, hear].

HON. CHIRISA: Mr. Speaker Sir, I raised some issues but he did not respond as Minister of Finance and Economic Development.  I talked about the Parliament Vote but he has not responded.

THE HON. SPEAKER: Order, order.  Hon. Deputy Minister, please, can we hear the Hon. Member.

HON. CHIRISA:  Thank you Mr. Speaker.  I am saying I did not hear the response to what I said to the Minister through my debate.  I talked about the Vote allocation to Parliament which is not matching the work and the plans that we have.  I gave an example of the 2015 plans which are rotting in our Committee files because of lack of resources and I was thinking that he would respond to what is going to happen given the amount that he gave us this year, which is very little again.  I think it is plus US$500 000 or US$1 000 000 and I think he should revise that.   I thank you.

THE HON. SPEAKER:  Hon. Minister, I think the Vote to Parliament is a very important one – [HON. MEMBERS:  Inaudible interjections.]-  Perhaps, Hon. Minister you may want to comment.

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA):  I did respond, but maybe

she had gone out of the House.  The response I gave, Mr. Speaker Sir, was that all the reports I was given here are talking about inadequate funding.  In almost every report the first recommendation is provide adequate funding, release timeously, do this and do that.  The answer basically is, until I sort out the issue about the skewed nature of our expenditure pattern, this problem will remain.

As you are well aware, Mr. Speaker Sir, of every US$100 that we receive through the fiscus, US$92 of it is going towards wages and recurrent expenditure.  So, I remain with say US$8 and sometimes I wish like running away from my office because the demands are coming - [AN HON. MEMBER:  Because you do not accept failure.]-  The demands are coming from all over and some of those demands have not been budgeted for and yet are necessary and should be met.  So, there is always this robbing Peter to pay Paul.  I understand, Mr. Speaker Sir, the concern, yes, but it is universal.  It is totally universal.

THE HON. SPEAKER:  I think in all fairness, Hon. Members, the Hon. Minister of Finance and Economic Development has gone out of his way.  There was a huge debt from the Seventh Parliament regarding outstanding payments to Members of Parliament and balancing the books between the Eighth Parliament’s demands and the debt accrued in the Seventh Parliament during the GNU. I am happy to report to you that the Hon. Minister has disposed of all the debt that was hanging on his neck regarding what was owed to Parliament in the

Seventh Parliament –[ HON. MEMBERS: Hear, hear.]-.

What remains are a few dollars to be paid for coupons for the Seventh Parliament and I am very positive that the Hon. Minister will respond to the requirements of the Eighth Parliament through his engagement with development partners together with Parliament in order to take care of the financial gaps.  So, credit should be given to the Hon. Minister. 

HON. P. D. SIBANDA:  Thank you Hon, Speaker.  In my debate, I basically raised four issues and none of the issues was responded to by the Hon. Minister.  I spoke of the criticality of the fishing industry and how it is entirely left out of the Budget.  I also spoke about the need to have forensic auditing of the ZISCO debt before it is assumed as a public debt.  The Minister has not responded.  I also spoke about the sustainability of having subsidy on the cotton industry.  I have not heard the Minister speaking about that.

Then finally, Hon. Speaker, I spoke about issues to do with economic growth as a function of factors such as domestic consumption, Government consumption, investment and the trade balance. How the Minister projects economic growth under a scenario where domestic consumption, Government consumption and investment is going down.  Where there is a trade imbalance and how the Minister projects an economic growth under those kinds of scenarios.  Thank you, Mr.

Speaker – [HON. MEMBERS: Inaudible interjections.]-

THE HON. SPEAKER:  I indulged Hon. Chirisa and I underline indulged.  In terms of terms of Standing Order 101 the reply by the Hon. Minister is final.  Therefore, I will not proceed to ask the Hon. Minister to reply to certain issues, but the issues raised by Hon. Sibanda, you have to understand it within the Minister’s plea, where in the last bit of reply he said, US$92 of US$100 goes to consumption.  That is a telling story.  In other words, let us reverse the figures and have US$92 going to productivity which must include obviously, fisheries on the Zambezi River and other rivers. so, I want the Chair to strictly adhere to the Standing Orders which this Hon. House passed. Hon. Bhebhe, give me chance to proceed. I put the question that leave be granted to bring in a Bill to make further provisions for the revenues and public funds of Zimbabwe and to make provisions for matters connected therewith or incidental thereto.

Motion put and agreed to.

FIRST READING

FINANCE (NO. 2), 2015 BILL, [H.B.18, 2015.]

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA) presented the Finance (No. 2),

2015 Bill, [H.B. 18, 2015].

Bill read the first time.

Bill referred to the Parliamentary Legal Committee.

COMMITTEE OF SUPPLY

SUPPLEMENTARY ESTIMATES OF EXPENDITURE (2015)

First Order read: Committee of Supply: Supplementary Estimates of Expenditure.

House in Committee.

Clauses 1 to 3 put and agreed to.

Schedule, Section 3 put and agreed to.

Vote 2 - Parliament of Zimbabwe - US$193,000 put and agreed to.

Vote 4 - Defence - US$3,484,000 put and agreed to.

Vote 5 - Finance and Economic Development - US$20,000,000 put and agreed to.

Vote 8 - Agriculture, Mechanisation and Irrigation Development -

US$10,000,000 put and agreed to.

Vote 10 - Environment, Water and Climate - US$35,000 put and agreed to.

Vote 13 - Local Government, Public Works and National Housing

- US$961,000 put and agreed to.

Vote 14 - Health and Child Care - US$18,572,000 put and agreed

to.

Vote 15 - Primary and Secondary Education - US$18,035,000 put and agreed to.

Vote 17 - Youth, Indigenisation and Economic Empowerment -

US$714,000 put and agreed to.

Voter 18 - Home Affairs - US$5,028,000 put and agreed to.

Vote 19 - Justice, Legal and Parliamentary Affairs - US$1,731,000 put and agreed to.

Vote 28 - Public Service Commission - US$626,000 put and agreed to.

Vote 30 - Macro-Economic Planning and Investment Promotion -

US$39,000 put and agreed to.

Vote 31 - Welfare Services for War Veterans, Former Political

Detainees and Restrictees - US$67,000 put and agreed to.

House resumed.

Supplementary Estimates of Expenditure (2015) reported without amendments.

Report adopted.

Bill ordered to be brought in by the Minister of Finance and

Economic Development in accordance with the Supplementary Estimates of Expenditure adopted by the House.

FIRST READING

APPROPRIATION (SUPPLEMENTARY) BILL [H. B. 16, 2015]

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA) presented the

Appropriation Supplementary Bill [H. B. 16, 2015].

Bill read the first time.

Bill referred to the Parliamentary Legal Committee.

COMMITTEE OF SUPPLY

MAIN ESTIMATES OF EXPENDITURE

Third Order read: Committee of Supply: Main Estimates of Expenditure.

House in Committee.

On Vote 1 – Office of the President and Cabinet US$179,936,000:

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Chairperson in order

to comply with Section 305 (3) of the Constitution, I am lifting  from this Vote, the allocation to the National Peace and Reconciliation Commission which now becomes Vote 35.

Amendment to Vote 1 put and agreed to.

Vote 1, as amended, put and agreed to.

Vote 2 - Parliament of Zimbabwe - US$20,255,000 put and agreed to.

Vote 3 –Public Service, Labour and Social Welfare – US$174,235,000 put and agreed to.

Vote 4 – Defence – US$358,065,000 put and agreed to.

Vote 5 – Finance and Economic Development – US$215,269,000 put and agreed to.

Vote 6 – Office of the Auditor-General – US$4,130,000 put and agreed

to.

Vote 7 – Industry and Commerce – US$17,465,000 put and agreed to.

Vote 8 Agriculture, Mechanisation and Irrigation Development –

US$145,091,000 put and agreed to

Vote 9 – Mines and Mining Development – US$5,964,000 put and

agreed to.

Vote 10 – Environment, Water and Climate – US$34,242,000 put and

agreed to.

Vote 11 – Transport and Infrastructure Development – US$39,937,000 put and agreed to.

Vote 12 – Foreign Affairs – US$36,995,000 put and agreed to.

Vote 13 – Local Government, Public Works and National Housing – US$44,640,000 put and agreed to.

Vote 14 – Health and Child Care – US$330,789,000 put and agreed to

Vote 15 – Primary and Secondary Education – US$810,431,000 put and

agreed to.

Vote 16 – Higher and Tertiary Education, Science and Technology Development – US$307,645,000 put and agreed to.

Vote 17 – Youth, Indigenisation and Economic Empowerment – US$19,801,000 put and agreed to.

On Vote 18 – Home Affairs – US$395,372,000:

 THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairperson in order to

comply with Section 305 (3) of the Constitution, I am lifting from this Vote the allocation to the Anti- Corruption  Commission which now becomes Vote 37 that is the Zimbabwe Anti-Corruption Commission.

Amendment to Vote 18 put and agreed to.

Vote 18, as amended, put and agreed to.

On Vote 19:  Justice, Legal and Parliamentary Affairs –

US$108,762,000

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairperson, in order to

comply with Section 305 (3) of the Constitution, I am lifting from this Vote the allocation to the Zimbabwe Human Rights Commission which now becomes Vote 34.  I am also lifting to this Vote, the allocation to the National Prosecuting Authority which now becomes Vote 36. Finally, I am lifting from this Vote the allocation to the Zimbabwe Electoral Commission which now becomes Vote 38.

Amendments to Vote 19 put and agreed to.

Vote as amended, put and agreed to.

On Vote 20: Information, Media and Broadcasting Services –

US$3,631,000.

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairperson in order to

comply with Section 305 (3) of the Constitution, I am lifting this Vote the allocation to the Media Commission which now becomes Vote 41.

Amendments to Vote 20 put and agreed to.

Vote 20 as amended, put and agreed to.

Vote 21 – Small and Medium Enterprises and Cooperative Development

– US$6,363,000, put and agreed to.

Vote 22 - Energy and Power Development – US$6,810,00 put and agreed to.

On Vote 23 – Women’s Affairs, Gender and Community Development – US$13,563,000:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairperson in order to

comply with Section 305 (3) of the Constitution, I am lifting from this Vote the allocation to the Zimbabwe Gender  Commission which now becomes Vote 39.

Amendments to vote 23 put and agreed to.

Vote 23, as amended, put and agreed to.

Vote 24 – Tourism and Hospitality Industry – US$2,892,000 put and agreed to.

Vote 25 – Information, Communication Technology, Postal and Courier

Services – US$6,257,000 put and agreed to.

On Vote 26 – Land and Rural Resettlement – US$15,518,000:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairperson in order to

comply with Section 305 (3) of the Constitution, I am lifting from this Vote the allocation to the Zimbabwe Land  Commission which now becomes Vote

40.

Amendment to Vote 26 put and agreed to.

Vote 26, as amended, put and agreed to.

Vote 27 – Judicial Services Commission – US$15,518,000 put and agreed to.

Vote 28 – Public Service Commission – US$19,405,000 put and agreed

to.

Vote 29 – Sports and Recreation – US$4,142,000 put and agreed to.

Vote 30 – Macro Economic Planning and Investment Promotion –

US$6,295,000 put and agreed to.

Vote 31 – Welfare Services for War Veterans, former Political Detainees and Restrictees – US$21,826,000 put and agreed to.

On Vote 32 – Rural Development, Promotion and Preservation of

Culture and Heritage – US$13,652,000:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairperson, in order to

comply with Section 305 (3) of the Constitution, I am lifting from this Vote the allocation to the Council of Chiefs which now becomes Vote 33.

Amendments to Vote 32 put and agreed to.

Vote 32, as amended, put and agreed to.

On Vote 33– Council of Chiefs – US$3 637 000.

          THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA):  Thank you Mr. Chairman

for the guidance to comply with Section 305 of the Constitution I am lifting from Local Government, the allocation to the Council of Chiefs which now becomes Vote 33.

Amendment to Vote 33 put and agreed to.

Vote 33, as amended, put and agreed to.

Vote 34 – Human Rights Commission – US$1 339 000 put and

agreed to.

Vote 35 – National Peace and Reconciliation Commission –

US$200 000 put and agreed to.

Vote 36 – National Prosecuting Authority – US$3 402 000 put and agreed to.

Vote 37 – Zimbabwe Anti-Corruption Commission – US$1 602 000 put and agreed to.

Vote 38 – Zimbabwe Electoral Commission – US$8 316 000 put and agreed to.

Vote 39 – Zimbabwe Gender Commission – US$150 000 put and

agreed to.

Vote 40 – Zimbabwe Land Commission – US$191 000 put and

agreed to.

Vote 41 – Zimbabwe Media Commission – US$351 000 put and

agreed to.

House resumed.

Progress reported.

Main Estimates of Expenditure reported without amendments.

Report adopted.

Bill ordered to be brought in by the Minister of Finance and Economic Development in accordance with the Main Estimates of Expenditure adopted by the House.

FIRST READING

APPROPRIATION (2016) BILL [H. B. 17, 2015]

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA) pursuant to order, presented

the Appropriation (2016) Bill [HB17, 2015].

Bill read the first time.

Bill referred to the Parliamentary Legal Committee.

ANNOUNCEMENT BY THE TEMPORARY SPEAKER

NON-ADVERSE REPORT RECEIVED FROM THE

PARLIAMENTARY LEGAL COMMITTEE

THE TEMPORARY SPEAKER (HON. DZIVA): I have

received a Non-Adverse Report from the Parliamentary Legal Committee on the Finance (No. 2) Bill, 2015 [H.B18, 2015].

SECOND READING

FINANCE (NO.2) BILL [H.B 18, 2015]

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I move that the Bill be

now read a second time.

Motion put and agreed to.

Bill read a second time.

Committee: With leave, forthwith.

COMMITTEE STAGE

FINANCE (NO.2) BILL [H.B.18, 2015]

House in Committee.

          Clauses 1 to 14  put and agreed to.

On Clause 15:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): I move the amendment

standing in my name that:

On page 25 of the Bill, in subsection (3) of the new section 26

(“Closing and establishment of branches in Zimbabwe by banking institutions”) to be substituted by this clause, insert after the words

“intention to establish the branch,” in line 24 the words “and after affording the banking institution an opportunity to make representations on the matter,”

On page 25 of the Bill, in the new section 26 (“Closing and establishment of branches in Zimbabwe by banking institutions”) to be substituted by this clause, insert after subsection (4) the following subsection:

“(5) Subject to section 73, a banking institution that fails to comply with a direction in terms of subsection (3) shall

(a) be liable for a civil penalty of fifty United States dollars (or  the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution remains in default, not exceeding a period of one hundred and eighty-one days and           (b) if the institution continues to be in default after the period  specified in paragraph (a), be guilty of an offence and liable on  conviction to

  • a fine not exceeding level fourteen; and
  • a fine not exceeding level fourteen or to imprisonment

for a period not exceeding six months or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution.”

 

Amendment to Clause 15 put and agreed to.

Clause 15, as amended, put and agreed to.

House resumed.

Bill reported with amendments.

Bill referred to the Parliamentary Legal Committee.

ANNOUNCEMENT BY THE TEMPORARY SPEAKER

NON-ADVERSE REPORT RECEIVED FROM THE PARLIAMENTARY

LEGAL COMMITTEE

THE TEMPORARY SPEAKER (HON. DZIVA):  I have to

inform the House that I have received a Non-Adverse Report from the Parliamentary Legal Committee on the Appropriation (Supplementary) Bill [H.B, 16, 2015].

SECOND READING

APPROPRIATION (SUPPLEMENTARY) BILL [H.B. 16, 2015]

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I now move

that the Appropriation (Supplementary) Bill [H.B. 16, 2015] be now read a second time.

Motion put and agreed to.

Bill read a second time.

Third Reading: With leave, forthwith.

THIRD READING

APPROPRIATION SUPPLEMENTARY BILL (H.B. 16, 2015)

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I now move

that the Appropriation (Supplementary) Bill [H.B. 16, 2015] be now read the third time.

Motion put and agreed to.

Bill read the third time.

ANNOUNCEMENT BY THE TEMPORARY SPEAKER

NON-ADVERSE REPORT RECEIVED FROM THE

PARLIAMENTARY LEGAL COMMITTEE

THE TEMPORARY SPEAKER (HON DZIVA):  I have to

inform the House that I have received a Non-Adverse Report from the

Parliamentary Legal Committee on the Finance (No. 2) Bill [H.B.18, 2015].

Consideration Stage: With leave, forthwith.

CONSIDERATION STAGE

FINANCE (No. 2) BILL [H.B. 18, 2015]

New Clause 15, as amended, put and agreed to.

Bill, as amended, adopted.

Third Reading: With leave, forthwith.

THIRD READING

FINANCE (No. 2) BILL [H.B. 18, 2015]

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I now move

that the Bill be read the third time.

Motion put and agreed to.

Bill read the third time.

ANNOUNCEMENT BY THE TEMPORARY SPEAKER

NON ADVERSE REPORT RECEIVED FROM THE PARLIAMENTARY

LEGAL COMMITTEE

THE TEMPORARY SPEAKER:  I have to inform the House

that I have received a Non-Adverse Report from the Parliamentary Legal Committee on the Appropriation (2016) Bill, [H.B. 17, 2015].

Second reading: With leave, forthwith.

SECOND READING 

APPROPRIATION (2016) BILL [H.B. 17, 2015].

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Madam Speaker, I move

that the Bill be now read a second time.

Motion put and agreed to.

Bill read a second time.

Third Reading:  With leave, forth with.

THIRD READING

APPROPRIATION (2016) BILL [H.B. 17, 2015].

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Madam. Speaker, I now

move that the Appropriation (2016) Bill [H. B. 17, 2015] be read now read the third time.

Motion put and agreed to.

Bill read the third time.

COMMITTEE STAGE

BANKING AMENDMENT BILL, [H.B.6, 2015]

         Fourth Order read:  Committee to resume on the Banking

Amendment Bill, [H.B.6, 2015],

House in Committee.

Clause 1 put and agreed to.

On Clause 2:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the amendment standing in my name:

On page 4 of the Bill, delete the definition of “close relative” and substitute the following definition:

“ “close relative”, in relation to an individual, means any of the

following

  • the individual’s child, whether their relationship arises through blood or adoption;
  • the individual’s step-child;
  • where the individual is married, his or her spouse;“.

On page 2 of the Bill, in the definition of “credit information”, delete from paragraph (b) of that definition subparagraph (i) and substitute the following subparagraph:

“(i) the person’s establishment or incorporation, including the

head office or principal place of business of the person;  and”.

On page 3 of the Bill, in the definition of “credit information”, insert in paragraph (c) of that definition the following subparagraph after subparagraph (v):

“(vi) any pending prosecution for a criminal offence, or previous

conviction for a criminal offence, and other information relevant to the person’s financial integrity;”.

On page 3 of the Bill, insert after line 9 before the definition of “credit reference bureau”, insert the following definitions:

““credit rating” means an opinion as to the creditworthiness of any person who takes on or may take on any debt, or who issues or proposes to issue any debt-like securities;

“credit rating agency” means an entity whose principal business is the issuance of credit ratings on Government and corporate debt issues with the object of evaluating the creditworthiness

or ability and willingness of the debt issuer to make timely payments of principal and interest, and to assess the credit quality of, and assign credit ratings to, any debt and debt-like securities;”.

On page 3 of the Bill, in the definition of “financial institution”, delete subparagraph (j) in line 38 and substitute the following paragraphs:

“(j) the Reserve Bank;  or

  • the National Social Security Authority established by the National

Social Security Authority Act [Chapter 17:04];  or

  • the Sovereign Wealth Fund of Zimbabwe established by the Sovereign Wealth Fund of Zimbabwe Act [Chapter 22:04] (No. 7 of 2014)
  • such other institution as may be prescribed;”.

On page 4 of the Bill, in the definition of “problem banking institution”, insert after the words “solvency is, or will be” the words “(in the opinion of the Registrar)”.

On page 4 of the Bill, insert after the definition of “problem banking institution” the following definition:

“ “special purpose vehicle” means (by whatever other name it is called, including a special purpose entity or special purpose company) a company or entity created by a banking institution or controlling company solely or primarily for one or any combination of the following purposes

  • the owning or securitising of a particular set of loans, assets or other investments, and distributing the risk to investors;
  • the marketing of financially engineered products;
  • avoiding tax;
  • as a vehicle for structuring financial transactions that can have a material effect on the banking institution or controlling company in such a way that they do not appear on the institution’s or company’s balance sheet;
  • any specific or temporary purpose whatsoever;”.

On page 4 of the Bill, delete from line 34 in the new paragraph (g) as inserted by clause 2 (b) the words “an accounting entity” and substitute “an entity”.

On page 4 of the Bill, in paragraph (c), by the deletion from line 41 of the words “of the following subsection” and the substitution of the words “of the following subsections”.

On page 5 of the Bill, insert in line 30 in the paragraph (j) of the new subsection (4) of section 2 of the principal Act as inserted by clause 2 (c) the word “run” between the words “pension scheme” and “by the institution or company”.

On page 5 of the Bill, delete paragraph (i) of the new subsection (4) of section 2 of the principal Act as inserted by clause 2 (c)  and substitute the following subparagraph:

“(i) does not represent (whether as a nominee or in a professional

or other capacity) a shareholder of the institution or company; and”.

On page 5 of the Bill, by the insertion of the following subsection in section 2 of the principal Act:

“(5)  Whenever in this Act any notice or other thing is required to be “written” or to be done “in writing”, or the word “publish” or any of its derivatives is used in connection with a requirement or power of publication, such requirement shall be fulfilled by the sending of an electronic communication in accordance with conditions (including adequate conditions as to the recording, despatch and authentication of documents that are likely to be acceptable to a court as proof of the service thereof) agreed beforehand by the sender and the recipient of the communication.”.

Amendment to Clause 2 put and agreed to.

Clause 2, as amended, put and agreed to.

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I notice there is an amendment moved by the Committee on Finance and Economic

Development.

I move it, I move the amendment, I have no objection to that.

On page 12 of the Bill delete the definition for “close relative” and substitute the following—

““close relative” in relation to any person means―

  • a spouse;
  • a child, step child, parent or step parent;
  • the spouse of any person mentioned in paragraph (b);”.

Amendments to Clause 2 put and agreed to.

Clause 2, as amended, put and agreed to.

Clause 3 put and agreed to.

On Clause 4:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the

amendments standing in my name that on page 6 of the Bill, in subsection (4) of the new section 4B (“Exercise of functions by

Registrar”) inserted by clause 4, delete the words “with the approval of

the Board of the Reserve Bank” from lines 35 and 36 and substitute

“with the approval of the Board of the Reserve Bank (or, in cases of urgency, by ratification by the Board afterwards of any directions given)”.

 

After the end of page 6 of the Bill, following subsection (5) of the new section 4B (“Exercise of functions by Registrar”) inserted by clause 4, insert the following subsection in the new section 4B:

“(6)  Subsections (2) and (5) do not apply in cases of urgency in which, in the opinion of the Registrar or the Governor, as the case may be, the interests of defence, public safety, public order, public morality or the general public interest is affected:

Provided that the Registrar or the Governor, as the case may be, shall make a written record of the reasons for the urgency and avail the same to any interested person.”.

On page 7 of the Bill, in subsection (1) of the new section 4C

(“Adoption of prudential standards of bank supervision”) delete from line 2 the words “after consultation with” and substitute “on reasonable written notice to”.

On page 7 of the Bill, in the new section 4D (“Registrar and Reserve Bank to co-operate with other authorities”) delete from subsection (1) the introductory words between lines 11 to 14 and substitute:

“(1)  For the better exercise of their functions and in the interests of ensuring the efficient and co-ordinated regulation and development of the financial sector in Zimbabwe and the proper enforcement of the law, the Registrar and the Reserve Bank shall be furnished at his, her or its request with such information as he, she or it may require from—”.

On page 7 of the Bill, in the new section 4D (“Registrar and Reserve Bank to co-operate with other authorities”) delete paragraph (a) from subsection (1) and renumber the ensuing paragraphs (b) to (h) as paragraphs (a) to (g) accordingly.

On pages 7 to 8 of the Bill, delete the new sections 4E (“Financial Sector Oversight Council”) and 4F (“Financial Sector Stability

Committee”).

Amendments to Clause 4 put and agreed to.

          Clause 4, as amended, put and agreed to.

On Clause 5:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the

amendments standing in my name that on page 9 of the Bill, by the deletion of paragraph (b) between lines 15 and 18, the subsequent paragraphs (c), (d) and (e) to be redenominated as paragraphs (b), (c) and (d) respectively:

On page 9 of the Bill, in paragraph (c) (iv), (now paragraph (b)(iv)) delete subparagraph (i) in lines 42 and 43 from the new paragraph (d1) and substitute the following subparagraph:

“(i) are consistent with generally recognised standards of

corporate     governance,    including     those    fixed     or

prescribed in terms of this Act; and”.

Amendments to Clause 5 put and agreed to.

          Clause 5, as amended, put and agreed to.

On Clauses 6 and 7:

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the

amendments standing in my name that on page 10 of the Bill, delete clauses 6 and 7 between and including lines 14 and 20, and renumber the subsequent clauses accordingly.

Amendment to Clause 6 and 7 put and agreed to.

          Clauses 6 and 7, as amended, put and agreed to.

On Clause 8 (now Clause 6):

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the amendments standing in my name that on page 10 of the Bill, delete paragraph (b) (lines 29-33) and substitute the following:

‘(b) in subsection (2)(b) by the insertion after “the banking

institution” of “and the Deposit Protection Corporation””.

Amendments to Clause 8 (now Clause 6), put and agreed to.

          Clause 8 (now Clause 6), as amended, put and agreed to.

On Clause 9 (now Clause 7):

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the

amendments standing in my name that on page 11 of the Bill, in subsection (1) (a) of the new section 15A (“Limitation on shareholding in banking institutions and controlling companies”) inserted by this clause, delete the words “ten per centum” in line 2 and substitute “twenty-five per centum”.

On page 11 of the Bill, in subsection (1) (b) of the new section

15A (“Limitation on shareholding in banking institutions and controlling companies”) inserted by this clause, delete subparagraphs (i) and (ii) and substitute the following subparagraphs:

“(i) a financial institution; or

  • a registered controlling company; or
  • a body corporate approved in terms of section

15F(1)(b);”.

On page 11 of the Bill, in the new section 15A (“Limitation on shareholding in banking institutions and controlling companies”) delete from subsection (2) the introductory words between lines 14 to 17 and substitute:

“(2)  Upon written application to that effect having been made by the shareholder concerned, the Registrar may, by written notice to the shareholder and the banking institution or controlling company concerned, give permission for the shareholder to hold more shares in a banking institution or controlling company, if the Registrar is satisfied that— ”.

On page 12 of the Bill, in the new section 15A (“Limitation on shareholding in banking institutions and controlling companies”) delete subsection (7) on lines 7 to 8 and substitute:

 

“(7) This section shall not apply in respect of shares that are held temporarily (and in any event for not more than twelve months) by an underwriter pending their acquisition by other persons.”.

On page 14 of the Bill, in the new section 15D (“Effect of shareholding in contravention of this Part”) delete subsection (7) between lines 34 to 39 and substitute the following subsections:

“(7)  If a dividend is paid to or received by a person on any share that is held by him or her in contravention of section 15A or 15B, or on any share that has been allotted, issued or transferred to the person or registered in his or her name in contravention of section 15C(1), such dividend shall, if not returned by the person concerned , constitute a debt due to the banking institution or controlling company concerned, and shall at any time after it becomes due, be recoverable in a court of competent jurisdiction by proceedings in the name of the banking institution or controlling company.

(8)  Subject to section 73, a shareholder who has been required to divest himself or herself of any shares in terms of subsection (5) and who fails without just cause to comply with the requirement within the first seven days of the period of one hundred and eighty-one days referred to in paragraph (a) below, shall

  • be liable for a civil penalty of fifty United States dollars (or

the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the shareholder remains in default, not exceeding a period of one hundred and eighty-one days; and

  • if the shareholder continues to be in default after the period

specified in paragraph (a), be guilty of an offence and liable on conviction to a fine not exceeding level ten or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.”.

On page 15 of the Bill, in the new section 15E (“Divestment of shares to prevent undue influence by shareholder”), delete subsection (3) between lines 7 and 12 and substitute the following subsection:

“(3)  Subject to section 73, a shareholder who has been required to divest himself or herself of any shares in terms of subsection (1) and who fails without just cause to comply with the requirement within the first seven days of the period of one hundred and eighty-one days referred to in paragraph (a) below, shall

  • be liable for a civil penalty of fifty United States dollars (or

the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the shareholder remains in default, not exceeding a period of one hundred and eighty-one days;  and

  • if the shareholder continues to be in default after the period

specified in paragraph (a), be guilty of an offence and liable on conviction to a fine not exceeding level ten or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.”.

On page 15 of the Bill, in the new section 15F (“Restriction on right to control banking institution”), delete from subsection (1) paragraph (a) on line 15 and substitute the following paragraph:

“(a) a registered financial institution; or”.

On page 16 of the Bill, in the new section 15F (“Restriction on right to control banking institution”), insert the following subsections after subsection (5):

“(6)  Where the Registrar determines under subsection (5) that a shareholder is a person who exercises control over a banking institution in contravention of this section, such determination shall constitute a requirement by the Registrar that the shareholder divest himself or herself of the shares concerned in compliance with section 15D(1)(ii).

(7)  Subject to section 73, a shareholder who is required to divest himself or herself of any shares in terms of subsection (6) and who fails without just cause to comply with the requirement within the first seven days of the period of one hundred and eighty-one days referred to in paragraph (a) below, shall

  • be liable for a civil penalty of fifty United States dollars (or

the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the shareholder remains in default, not exceeding a period of one hundred and eighty-one days;  and

  • if the shareholder continues to be in default after the period

specified in paragraph (a), be guilty of an offence and liable on conviction to a fine not exceeding level ten or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.”.

On page 16 of the Bill, in the new section 15G (“Registration of controlling companies”), delete from subsection (1) paragraph (b) between lines 14 and 19 substitute the following paragraph:

 

“(b) the names and details of the qualifications and experience of

the applicant’s directors and principal officers;  and”.

On page 16 of the Bill, in the new section 15G (“Registration of controlling companies”), delete from subsection (2) the word “consult” in line 30 and substitute “notify”.

On page 16 of the Bill, in the new section 15G (“Registration of controlling companies”) (3), delete from paragraph (c) the words “and such of its other officers as may be prescribed” in lines 39 and 40.

On page 17 of the Bill, in the new section 15H (“Register of controlling companies”), insert in subsection (1) the following paragraph after paragraph (a) (the subsequent paragraphs (b), (c) and (d) to be redenominated as paragraphs (c), (d) and (e) respectively) between lines 14 and 19 substitute the following paragraph:

“(b)its registered office, that is to say, its address for service of notices, legal process and other official communications; and’.

On page 18 of the Bill, in the new section 15J (“Cancellation of registration of controlling company”), delete from subsection (2) the word “consult” in line 36 and substitute “notify”.

On page 19 of the Bill, in the new section 15J (“Cancellation of registration of controlling company”) (6), add the after concluding words “may give it for that purpose” on line 24 the words “and, with respect to any divestment of shares required by such relinquishment, the provisions of section 15D(1) and (6) shall apply as if the Registrar had given the company the requisite notices of divestment in terms of those provisions on the day of the cancellation”.

On page 19 of the Bill, in the new section 15J (“Cancellation of registration of controlling company”) insert the following subsection after subsection (6):

“(7)  Subject to section 73, a controlling company whose registration is cancelled in terms of this section and which fails, within the first seven days of the period of one hundred and eighty-one days referred to in paragraph (c) below

  • to divest himself or herself of any shares in terms of

subsection (6); or

  • without just cause, to comply with any direction of the

Registrar given in terms of subsection (6); shall

  • be liable for a civil penalty of fifty United States dollars (or

the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the company remains in default, not exceeding a period of one hundred and eighty-one days;  and

  • if the company continues to be in default after the period

specified in paragraph (c), be guilty of an offence and liable on conviction to

  • a fine not exceeding level ten; and
  • a fine not exceeding level ten or to imprisonment for a

period not exceeding six months or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the company.”.

Amendments to Clause 9 (now Clause 7), put and agreed to.

          Clause 9 (now Clause 7), as amended, put and agreed to.

On Clause 10( now Clause 8):

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the

amendments standing in my name that on page 19 of the Bill, delete the words “corporate governance” in line 34 and substitute “corporate governance framework”.

Amendment to Clause 10 (now Clause 8), put and agreed to.

          Clause 10 (now Clause 8), as amended, put and agreed to.

On Clause 11 (now Clause 9):

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the

amendments standing in my name that on page 20 of the Bill, in the new subsection (1e) inserted into section 18, delete the words “the person satisfies the Registrar that he or she” and substitute “the person satisfies the Registrar by a sworn declaration that he or she”.

On page 20 of the Bill, in the new subsection (1f) inserted into section 18, delete the words “If the chief financial officer of a banking institution” and substitute “If the chief financial officer or (upon the failure of the chief financial officer to do so within a reasonable time) any of the principal officers of a banking institution”.

On page 20 of the Bill, delete the new subsections (1g) and (1h) inserted into section 18 and substitute the following subsections:

“(1g)  No secrecy or confidentiality provision in any contract or law shall prevent a chief financial officer or any of the principal officers of a banking institution from furnishing to the Registrar the information referred to in subsection (1f), and no banking institution (or controlling company of such institution) shall dismiss or in any other way penalise the chief financial officer or any principal officer for furnishing such information.

(1h)  Subject to section 73, a banking institution or controlling company that

  • contravenes subsection (1a); or
  • fails, through its chief financial officer, to comply with

subsection (1f);  or

  • dismisses or in any other way penalises the chief financial

officer or any principal officer for furnishing the information required under subsection (1f);  or  shall

  • be liable for a civil penalty of fifty United States dollars (or

the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution or company remains in default (which default shall, in the case of a contravention referred to in paragraph (c), be calculated from the date of the dismissal of or other penalty imposed upon the chief financial officer or principal officer, and be deemed to continue until such action is reversed), not exceeding a period of one hundred and eightyone days:

Provided that the Registrar shall have power to waive the

payment or refund the whole or part of any penalty prescribed under this paragraph if he or she is satisfied that the contravention was not wilful, or not due to the want of reasonable care; and

  • if the institution or company continues to be in default after

the period specified in paragraph (d), be guilty of an offence and liable on conviction to

  • a fine not exceeding level ten; and
  • a fine not exceeding level ten or to imprisonment for a

period not exceeding six months or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution or company.”.

Amendments to Clause 11 (now Clause 9), put and agreed to.

          Clause 11 (now Clause 9), as amended, put and agreed to. Clause 12 (now Clause 10) put and agreed to On Clause 13 (now Clause 11):

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the

amendments standing in my name that on page 21 of the Bill, delete between lines 23 to 40 the new subsection (2) to be inserted into section

20 and substitute the following subsection:

“(2)  Every banking institution and controlling company shall, upon written notification to the Registrar of their names and other prescribed particulars, and with the approval of the Registrar (which approval shall not be withheld except upon positive evidence of the unfitness of the persons concerned to hold office) appoint in Zimbabwe—    (a) a chief executive officer;  and

  • a chief accounting officer; and
  • a compliance officer; and
  • an internal auditor; and
  • officers responsible for the following functions—
    • risk management; and
    • lending and credit administration; and
    • internal controls; and
    • investments and asset or liability management, in

the case of a banking institution which engages in these activities;  and

  • treasury and foreign exchange operations; and
  • trust and fiduciary operations, in the case of a

banking institution which engages in these activities; and

  • such other officers as may be prescribed.”.

On page 21 of the Bill, in the new subsection (2a) to be inserted into section 20, delete from line 42 the words “shall be members of the board” and substitute “shall (despite anything to the contrary in the memorandum or articles of association of the banking institution or controlling company) be non-voting members of the board”.

On page 21 of the Bill, in the new subsection (2b) to be inserted into section 20, insert into paragraph (a) after the concluding words “the offices referred to in subsection (2)” the words  “, except on a temporary or acting basis (and in that event for not more than six months continuously)”.

On page 22 of the Bill, in the new subsection (2b) to be inserted into section 20, insert into paragraph (b) after the concluding words “is a member” the words  “(except on a temporary or acting basis)”.

On page 22 of the Bill, insert the following new subsection after the new subsection (2b) of section 20:

“(2c)  Until the Registrar signifies his or her approval in writing to the banking institution or controlling company of any of the appointments it wishes to make in terms of subsection (2), the appointee in question shall not be deemed to be employed, whether in terms of the Labour Act, any contract of employment or any other law, but if the Registrar delays by more than thirty days to make any response to a written notification of the proposed appointment by the institution or company, then it is deemed that the Registrar has approved the appointment in question.”.

On page 20 of the Bill insert new clause 8 as follows—

 8 New section inserted in Cap 24:20

“13A  Notification of Application

As soon as reasonably possible after registering an applicant, the Registrar shall inform the Deposit protection Corporation, and cause notice thereof to be published in the Gazette and in one or more issues of a newspaper circulating in the area in which the applicants head office is situated.”.

On page 31 of the Bill—

  • delete clause (1) under paragraph (a) and substitute the following—

“Every banking institution and controlling company shall maintain a principle administrative office in Zimbabwe and shall inform the Registrar in writing of the office’s address:

Provided that where a controlling company is not operational in Zimbabwe, it shall be exempted from this requirement.”.

  • delete paragraph clause (2)(e) of paragraph (a) and substitute the following―

“(e) a company secretary;

(f) such other officers as may be prescribed;”.

Amendments to Clause 13 (now Clause 11), put and agreed to.

         Clause 13 (now Clause 11), as amended, put and agreed to.

On Clause 14 (now Clause 12):

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the

amendments standing in my name that on page 22 of the Bill, in the new section 20A (“Responsibilities and conduct of directors and principal officers of banking institutions and controlling companies”) to be inserted by this clause, delete from subsection (2) the words “observe any guidelines” in line 36 and substitute “observe any written prudential standards issued from time to time by the Reserve Bank”

On pages 22 and 23 of the Bill, in the new section 20A

(“Responsibilities and conduct of directors and principal officers of banking institutions and controlling companies”) to be inserted by this clause, delete subsection (5) and substitute the following:

“(5) In addition to anything contained in section 318 of the Companies Act [Chapter 24:03], where a banking institution or controlling company has been placed under curatorship or judicial management or has been wound up, and it is established that the business of the institution or company has been carried on without regard for the prudential norms and standards and other requirements provided for in this Act, or to good corporate governance principles generally—

  • every person who was a director or principal officer of the

institution or company when its business was being carried on in that manner;  and

  • every shareholder who was knowingly a party to the carrying

on of the business of the institution or company in that manner; shall be jointly and severally liable with the institution or company for any loss or damage suffered by creditors, including depositors, of the institution or company:

Provided that this subsection shall not apply to a director or officer who, on a balance of probabilities, is able to show that he or

she—

(a) was not responsible for the manner in which the business of

the institution or company was carried on;  and    (b) complied with his or her duties under subsections (1) and

(2).”.

On page 23 of the Bill, in the new section 20A (“Responsibilities and conduct of directors and principal officers of banking institutions and controlling companies”) to be inserted by this clause, delete in subsection (6), in line 22, the connective “and” between paragraphs (a) and (b) and substitute the connective “or”.

On page 23 of the Bill, in the new section 20A (“Responsibilities and conduct of directors and principal officers of banking institutions and controlling companies”) to be inserted by this clause, delete in subsection (7), in lines 29 and 30, the words “in subsection (5)” and substitute “in subsection (5) or (6)”.

On page 23 of the Bill, in the new section 20A (“Responsibilities and conduct of directors and principal officers of banking institutions and controlling companies”) to be inserted by this clause, insert in subsection (7)(c), in line 39, after the words “repayment of the losses of the creditors” the words “(not including any creditor who is a director or principal officer or principal shareholder of the banking institution or controlling company, or any other person who is an associate or close relative of any of the foregoing, against whom the Registrar or Deposit

Protection Corporation has instituted proceedings under this section)”

On page 24 of the Bill, in the new section 20B (“Disclosure of interests by directors of banking institutions and controlling companies”) to be inserted by this clause, delete subsection (1) and substitute the following:

“(1) Upon his or her appointment, and annually thereafter, every director of a banking institution or a controlling company shall deliver to the chief executive officer of the institution or company a document in the prescribed form setting out the full extent of the director’s assets, business activities and financial and proprietary interests and those of his or her spouse”.

On page 24 of the Bill, in the new section 20B (“Disclosure of interests by directors of banking institutions and controlling companies”) to be inserted by this clause, add the following proviso to subsection (2) after line 16:

“Provided that any such document and the information contained in it shall be strictly confidential to the Reserve Bank and shall not be released to anyone outside the Reserve Bank except with the written consent of the person to whom it relates”.

On page 24 of the Bill, in the new section 20B (“Disclosure of interests by directors of banking institutions and controlling companies”) to be inserted by this clause, delete subsection (3) on lines 17 and 18 and substitute the following subsection:

“(3)  Subject to section 73, a banking institution or controlling company that

  • fails, within the first seven days of the period of one hundred

and eighty-one days referred to in paragraph (c) below (calculated from the date of the appointment or each anniversary of the appointment, as the case may be), to comply with subsection (1);  or

  • contravenes subsection (2); or  shall
  • be liable for a civil penalty of fifty United States dollars (or

the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution or company remains in default, not exceeding a period of one hundred and eighty-one days:

Provided that the Registrar shall have power to waive the

payment or refund the whole or part of any penalty prescribed under this paragraph if he or she is satisfied that the contravention was not wilful, or not due to the want of reasonable care;

and

  • if the institution or company continues to be in default after

the period specified in paragraph (c), be guilty of an offence and liable on conviction to

  • a fine not exceeding level fourteen; and
  • a fine not exceeding level fourteen or to imprisonment

for a period not exceeding six months or to both such

fine and such imprisonment in the case of every director or member of the board or governing body of the institution or company.”.

Amendments to Clause 14 (now Clause 14), put and agreed to.

Clause 14 (now Clause 12), put and agreed to.

On Clause 15:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the

amendment standing in my name which is a substitution of Clauses 15 and 16, now Clauses 13 and 14.

Amendments to Clause 15 put and agreed to.

Clause 15, as amended, put and agreed to.

On Clause 16:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): I move the amendment

standing in my name that on page 24 of the Bill, in paragraph (a), delete from line 40 the words “in subsection (4)” and substitute the words “in subsection (5)”.

Amendment to Clause 16 put and agreed to.

Clause 16, as amended, put and agreed to.

On Clause 17:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): I move the amendments

standing in my name that On page 25 of the Bill, in subsection (3) of the new section 26 (“Closing and establishment of branches in Zimbabwe by banking institutions”) to be substituted by this clause, insert after the words “intention to establish the branch,” in line 24 the words “and after affording the banking institution an opportunity to make representations on the matter,”.

On page 25 of the Bill, in the new Section 26 (“Closing and establishment of branches in Zimbabwe by banking institutions”) to be substituted by this clause, insert after subsection (4) the following subsection:

“(5) Subject to Section 73, a banking institution that fails to comply with a direction in terms of subsection (3) shall

  • be liable for a civil penalty of fifty United States dollars (or

the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution remains in default, not exceeding a period of one hundred and eighty-one days; and

  • if the institution continues to be in default after the period

specified in paragraph (a), be guilty of an offence and liable on conviction to

  • a fine not exceeding level fourteen; and
  • a fine not exceeding level fourteen or to imprisonment

for a period not exceeding six months or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution.”.

Amendments to Clause 17 put and agreed to.

Clause 17, as amended, put and agreed to.

On Clause 18:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): I move the amendments

standing in my name that On page 25 of the Bill, in subsection (1) of the new section 28A (“Corporate governance”) to be inserted by this clause, delete the words “consistent with such standards,” in line 35 and substitute “consistent with such prudential standards”.

On page 26 of the Bill, in subsections (1) and (2) of the new section 28B (“Compliance”), delete “or controlling company” wherever it occurs”.

 

On page 26 of the Bill, in subsection (1) of the new section 28C

(“Risk committee”) to be inserted by this clause, delete the words “of whom at least two shall be non-executive directors,” in lines 41 and 42, and substitute “all of whom shall be non-executive directors”.

Amendments to Clause 18 put and agreed to.

Clause 18, as amended, put and agreed to.

On Clause 19:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): I move the amendments

standing in my name that On page 28 of the Bill, in subsection (1) (c) of the new section 28D (“Publication of certain information by banking institutions”) to be inserted by this clause, delete the words “a notice setting out its interest rates” in line 5 and substitute “a notice in a form approved by the Reserve Bank that is clearly visible to the public setting out its interest rates”.

 

On page 28 of the Bill, in subsection (3) of the new section 28D

(“Publication of certain information by banking institutions”) to be inserted by this clause, delete from line 15 the words “subsection (3)” and substitute the words “subsection (2)”.

On page 29 of the Bill, in the new section 28E (“Disclosure of certain information to customers of banking institutions”) to be inserted by this clause, insert after subsection (4) the following subsection:

“(5)  No banking institution shall impose any fee or other charge for the information it is required to provide to a user of its services under subsection (1), (2), (3) or (4).”.

On page 30 of the Bill, after the new section 28F (“Customer complaints procedures”) to be inserted by this clause, insert the following additional new section:

 

“28G Civil penalties for non-compliance by banking institutions with Part IVA

Subject to section 73, a banking institution that fails to comply with any provision of this Part shall

  • be liable for a civil penalty of fifty United States dollars (or

the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution remains in default, not exceeding a period of one hundred and eighty-one days; and

  • if the institution continues to be in default after the period

specified in paragraph (a), be guilty of an offence and liable on conviction to

  • a fine not exceeding level fourteen; and
  • a fine not exceeding level fourteen or to imprisonment

for a period not exceeding six months or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution.”.

And also an amendment proposed by the Committee which I sought under Clause 19 that On page 38 of the Bill insert the following subsection after subsection (3) of the section 28D—

“(4) After changing any of the matters referred to in subsection (1), (2) and (3) above a banking institution shall give the account holder, borrower and card holder, written notice of the changes within fourteen

(14) days”.

Amendments to Clause 19 put and agreed to.

Clause 19, as amended, put and agreed to.

Clauses 20 and 21 put and agreed to.

On Clause 22:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): I move the amendments

standing in my name that On page 30 of the Bill, in subsection (4) of the new section 31A (“Credit rating of banking institutions”) to be inserted by this clause, delete the words “may publish” in line 27 and substitute “may, not more than once in a calendar year, publish”.

On page 31 of the Bill, in subsection (3) of the new section 31C

(“Issue of credit reference bureau licences”) to be inserted by this clause, add the following words to the end of that subsection in line 7: “and, in the case of a refusal, of the reasons for his or her refusal”.

Amendments to Clause 22, put and agreed to.

Clause 22, as amended, put and agreed to.

On Clause 23:

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I move the amendments

standing in my name that On page 31 of the Bill, by the deletion of subsections (2) and (3) of the new Section 32 (“Restrictions on purchase and pledging of shares in banking institutions and controlling companies”) to be inserted by this clause, and the substitution of the following subsections:

“(2)  Except with the prior approval of the Registrar (which approval shall not be unreasonably withheld), no person holding a significant interest in a banking institution or controlling company (as defined in section 15B(1)) shall pledge, hypothecate or otherwise encumber any shares in a banking institution or controlling company if the encumbrance may result in a transfer of shares or voting rights in the institution or company equal to or exceeding ten per centum of the shares or voting rights in the institution or company.”

(3)  Subject to section 73, a banking institution or controlling company which or person who contravenes subsection (1) or (2) shall

  • be liable for a civil penalty of fifty United States dollars (or

the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution, company or person remains in default, not exceeding a period of one hundred and eighty-one days;

and

  • if the institution, company or person continues to be in

default after the period specified in paragraph (a), be guilty of an offence and liable on conviction

  • in the case of a banking institution or controlling

company

  1. to a fine not exceeding level ten; and
  2. to a fine not exceeding level seven or to

imprisonment for a period not exceeding two years or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution.”.

  • in the case of an individual other than a director or

member referred to in subparagraph (i)B, to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment.”.

On page 31 of the Bill, by the deletion between lines 38 and 41 of subsection (1) of the new section 32A (“Special purpose vehicles”) to be inserted by this clause, and the renumbering of the following subsections

(2), (3), (4) and (5) as subsections (1), (2), (3) and (4) respectively.

On page 31 of the Bill, by the deletion in subsection (3) (now subsection (2)) of the words “subsection (2)” in line 43 and the substitution of “subsection (1)”.

Amendments to Clause 23 put and agreed to.

Clause 23, as amended, put and agreed to.

On Clause 24:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): I move the amendments

standing in my name that On page 32 of the Bill, in paragraph (c), by the deletion between lines 15 and 33 of the new subsections (3) to (6) of

new Section 35 (“Restrictions on extending of credit to officers, employees and certain shareholders and relatives”) to be inserted by this clause, and the substitution of the following subsections:

“(3) A banking institution shall not extend credit exceeding such amount as may be prescribed to any of its directors, shareholders or principal officers, or to a close relative or associate of any of those persons (hereinafter referred to as

“insiders”), unless—

  • the transaction has been approved by the board of the

banking institution (without the participation of any director or principal officer to whom the credit is sought to be extended in the decision to approve the extension of the credit);  and

  • the credit does not exceed ten per centum of the paid-up

equity capital of the banking institution;  and

  • the credit is covered by one hundred per centum collateral; and
  • the credit is deducted from the paid-up equity capital of

the banking institution.

  • Where a banking institution extends credit, exceeding such amount as may be prescribed, to any insider, it shall without delay inform the Registrar of that fact and provide the

Registrar with such information concerning the credit as the Registrar may reasonably require.

  • For the avoidance of doubt, subsections (3) and (4) does not apply to the extension of credit to any employee of the bank as part of the employee’s conditions of service that are

applicable to other employees generally.

  • Any contract or arrangement whereby a banking institution extends credit to any person in contravention of this section shall be voidable at the instance of— (a) the board of the banking institution; or

(b) the Registrar;

and the credit shall be repayable to the concerned banking institution together with interest by any person in whose favour it was made within the period stipulated by the board or the

Registrar, as the case may be.

(7)  Subject to section 73—

  • a banking institution which contravenes subsection (2), (3) or

(4);

  • any director, shareholder or principal officer of a banking

institution (whether on his or her own behalf or on behalf of any of his or her close relatives or associates ) who

  • receives any credit from the banking institution of which

he or she is the director, shareholder or principal officer while knowing or not having a reasonable belief that the conditions for the extension of that credit in terms of subsection (3) have not been fully complied with;  or

  • fails, within the stipulated period, to repay fully together with interest at the concerned banking institution’s

prevailing lending rate any credit under a contract or arrangement voided by the Registrar under subsection

(6);

shall be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution, director, shareholder or principal officer (as the case may be) remains in default, not exceeding a period of one hundred and eighty-one days;  and

  • if the institution, director, shareholder or principal officer (as

the case may be) continues to be in default after the period specified in paragraph (a), be guilty of an offence and liable on conviction

(i) in the case of a banking institution—

  1. to a fine not exceeding level ten; and
  2. to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or

to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution.”.

(ii) in the case of a, to a fine not exceeding level ten or to

imprisonment for a period not exceeding one year or to both such fine and such imprisonment.

  • In addition, and independently of the institution of any criminal or civil penalty proceedings under subsection (7), any property of any description obtained by means of an extension of credit made in contravention of subsection (2), (3) or (4), shall be deemed to be “tainted property” resulting from the commission of a “serious offence” for the purposes of section 80 (“Civil forfeiture orders”) of the Money Laundering and Proceeds of Crime Act [Chapter 9:24] (No. 4 of 2013), and may be recovered at the instance of the Reserve Bank in proceedings instituted by it in terms of that section, as if the “Reserve Bank” were substituted for the “Attorney-General” or “Prosecutor-General” in that section
  • The income, and any proceeds from the realisation of property in respect of which a court has granted a civil forfeiture order in terms of subsection (8) shall be applied in the following

sequence—

  • meeting the costs incurred by the Reserve Bank in obtaining

the civil forfeiture order and the costs of any other proceedings instituted to establish a claim to the property or an interest in the property;  and

  • repaying to the banking institution concerned the credit that

was extended in contravention of subsection (2), (3) or (4), together with interest at the banking institution’s prevailing lending rate;  and

  • any amount remaining after application of the amounts referred to in paragraphs (a) and (b) shall form part of the Recovered Assets Fund established by section 96 of the Money Laundering and Proceeds of Crime Act [Chapter

9:24] (No. 4 of 2013).

(10) Until the maximum amount of credit that may be extended to insiders is prescribed for the purposes of this section, no banking institution shall extend credit to any insider, and any extension of such credit shall be deemed to be an extension of credit to insiders in contravention of subsection (2), (3) or (4).”.

Amendments to Clause 24 put and agreed to.

Clause 24, as amended, put and agreed to.

Clauses 25 and 29 put and agreed to.

On Clause 30:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA):  I move the amendment

standing in my name that:

On pages 33 to 36 of the Bill, delete Clause 30 (now Clause 28) and substitute the following clauses:

The principal Act is amended by the insertion in Part IX after section

52 of the following sections—

“52A  Problem banking institutions

(1)  This section applies where the Reserve Bank determines that, in relation to a particular problem banking institution, it is in the public interest or in the interests of the depositors or creditors of a banking institution to avoid cancelling the registration of a banking institution, if possible, in order to achieve any one or more of the following objectives—

  • to protect and enhance the stability of the financial system;

and

  • to protect and enhance public confidence in the banking

system;  and

  • to protect depositors; and
  • where applicable, to protect public funds.

(2)  Where the Reserve Bank, following a report by an inspector or an investigation in terms of section 49, or on the basis of financial intelligence which in its opinion is sound and sufficient, has identified a banking institution as a problem banking institution because—

  • it can no longer maintain the prescribed minimum amounts

of capital and reserves, or is otherwise in an unsound financial condition; or

  • it can no longer maintain net assets which, together with

other financial resources available to it, are of an amount and nature sufficient to safeguard its creditors;

  • it can no longer provide adequate security for the assets

entrusted to it; or

  • it is facing liquidity problems, or its prudential liquidity

ratios are below the prescribed regulatory minimum; or

  • it has failed to put in place and implement a sound corporate

governance framework and risk management framework,  or it is in breach of good corporate governance requirements or its operations exhibit poor risk management; or

  • it is carrying out non- permissible activities or employing undesirable methods in carrying on its business; or
  • it has not complied with any instruction, requirement or

condition imposed by the Registrar in terms of this Act; or

  • it is not being operated or is not conducting its activities in

the best interests of its depositors; the Reserve Bank may, subject to this section, formulate and implement a plan of resolution in relation to the banking institution (hereinafter called a “bank resolution plan”) involving any of the following measures—

  • the merging of the problem banking institution with another

banking institution;

  • the acquisition of the problem banking institution by another

banking institution;

  • the acquisition by or transfer to a third party of any asset or

liability of the problem banking institution, including any asset held in trust;

  • the establishment of a bridging banking institution to acquire

part or all of the assets and liabilities of the problem banking institution;

  • the taking of control of the problem banking institution by a

curator with powers to establish and institute a timely plan of resolution;

  • the winding up of the problem banking institution;
  • the taking of any action necessary to give effect to the plan

of resolution, including the sale or closure of any branch, agency or other office of the problem banking institution and, subject to any other law, the dismissal of any of its officers or employees.

(3)  If the Reserve Bank makes a determination in terms of subsection (1) in relation to a banking institution it has identified as a problem banking institution under subsection (2), it shall, after affording the banking institution an adequate opportunity to make representations in the matter—

(a) serve on a principal officer of such banking institution at its registered office—

  • a notice (hereinafter called a “problem bank notice”)

announcing that the banking institution has been declared a problem banking institution;  and

  • the bank resolution plan that the Reserve Bank shall be

implementing or cause to be implemented in terms of the

Act;

and

(b) publish the problem bank notice in the Gazette:

Provided that, where the Reserve Bank considers that immediate action is necessary to prevent irreparable harm to the banking institution or its depositors, creditors, members or employees, the Reserve Bank may take such action before affording the banking institution an opportunity to make representations in terms of this subsection.

(4)In formulating a bank resolution plan, the Reserve Bank shall—

  • have regard to the public interest; and
  • ensure that any measures authorised by or taken under the

plan are proportionate to the harm they are intended to remedy;  and

  • ensure that where any property or interest or right in property

is to be acquired under the plan (other than shares and assets of the problem banking institution)—

  • reasonable notice is given to everyone whose interest or

rights will be affected by the acquisition;  and

  • fair and adequate compensation is paid within a

reasonable time after the acquisition;  and

  • if the acquisition is contested, an application is made to a

court of competent jurisdiction for an order authorising or confirming the acquisition;  and

  • the property, interest or right is returned or not acquired if the court, on an application referred to in subparagraph (iii), does not authorise or confirm the acquisition;

and

  • ensure that all bidders or offerors seeking to acquire assets of

the problem banking institution are treated equally and fairly;  and

  • ensure that, so far as practicable, any person who acquires

assets of the problem banking institution acquires an equivalent value of its liabilities.

(5) The Reserve Bank or its agents may disclose confidential information concerning a problem banking institution, subject to a confidentiality agreement, to a bidder or offeror who proposes to acquire the institution or any of its assets or liabilities under a bank resolution plan.

(6)Pending the formulation and implementation of a bank resolution plan (whether before or after the confirmation of the problem bank notice in terms of section 52B), the Reserve Bank may take such measures in relation to the banking institution concerned as, in its opinion, are reasonably necessary in order to—

  • preserve the capital, assets and liquidity of the banking

institution concerned;  and

  • protect the interests of depositors and other creditors of the

banking institution concerned.

(6) Measures referred to in subsection (6) may include—

  • restricting the activities of the banking institution concerned;

and

  • removing or replacing all or any of the directors of the

banking institution concerned;  and

  • prohibiting or restricting the disposal of any assets of the

banking institution concerned;  and

  • any action referred to in section 48(3).

52B  Confirmation of problem bank notice

(1)  At any time before a bank resolution plan is implemented, the problem bank notice shall be confirmed by application made by or on behalf of the Reserve Bank to a judge of the High Court in chambers on not less than fourteen days’ written notice (accompanied by the documentation in support of the application referred to in paragraphs (a) and (b) of subsection (2)) to the directors, shareholders, principal officer and creditors of the problem banking institution:

Provided that the publication by or on behalf of the Reserve Bank of a notice in the Gazette addressed to the directors, shareholders, principal officer and creditors of the problem banking institution

(whether named individually or by class)

  • notifying them of the intention of the Reserve Bank to make

such an application not earlier than fourteen days from the date of publication of the notice in the Gazette;  and

  • informing them of their right to oppose the application; and (iii) containing particulars of where the documentation in support of the application referred to in paragraphs (a) and (b) of subsection (2) may be collected by any party interested in the application, shall be deemed to constitute sufficient service of the notice of the application upon any such party.

(2)  There shall be submitted together with the application referred to in subsection (1)

  • a copy of the problem bank notice relating to the banking

institution which is the subject of the application;  and

  • a statement of the reasons why it appeared to the Reserve Bank that any one or more of the circumstances referred to paragraph (a) to (h) of section 52A(2) were present in relation to the banking institution; and
  • a statement of the affairs of the banking institution indicating

the extent of its assets and liabilities;  and

  • proof that a principal officer of the banking institution had been served with the problem bank notice under section

52A(2)(p).

  • A decision by a judge not to issue a confirming order in terms of subsection (1), or to issue it subject to any amendment or variation, shall not prevent the Reserve Bank from making a fresh application in terms of that subsection on the basis of new evidence obtained since the original application, or to correct any mistake in the original application, and subsections (1) and (2) shall apply to such fresh application.”.
  • Where an appeal is noted against a decision of the High Court in an application referred to in this section, the Supreme Court shall ensure that, where possible, it delivers judgment in the appeal within thirty days after the appeal was filed in accordance with rules of court.
  • Notwithstanding any other law, if an appeal is noted against a decision of the High Court in an application referred to in this section, no court shall set aside the decision of the Reserve Bank made pursuant to a bank resolution plan without the consent of the Reserve Bank, unless the court is satisfied that the decision was made corruptly or in bad faith:

Provided that this subsection shall not prevent a court from awarding fair and adequate compensation to any person who has suffered loss as a result of the decision.

  • Pending the determination of an application referred to in this section or any appeal in relation thereto, the Reserve Bank may take any of the measures referred to in section 52A(5) or any other formal supervisory or enforcement action against the problem banking institution concerned in the interests of its creditors or depositors or in the public interest.
  • Where a problem bank notice is confirmed by the court in terms of this section and the bank resolution plan in relation to it proposes to place the problem banking institution concerned under liquidation, it shall not be necessary to issue a separate notice of liquidation in terms of section 57 of the Act.

52C  Implementation of bank resolution plan

  • In this section “curator” means an agent of the Reserve Bank acting as an independent contractor or the Reserve Bank itself operating through one of its employees, and includes any special asset management company established in terms of Part IXA of the

Reserve Bank Act.

  • Where a curator has taken control of a problem banking institution under a bank resolution plan, the shareholders of the institution shall have no rights with respect to shares, except to the extent permitted under the plan.
  • Within ninety days after a curator has taken control of a problem banking institution under a bank resolution plan, the

Reserve Bank, after consultation with the Deposit Protection

Corporation, shall—

  • determine whether to restructure, reorganise or wind up the

institution;  and

  • determine an alternative bank resolution plan based upon any

combination of restructuring, reorganisation or winding up of the institution or, subject to this section, any other option which provides for expeditious resolution of the problems of the institution:

Provided that if the new bank resolution plan is materially

at variance with the one submitted in connection with an application in terms of section 52B, the Reserve Bank shall seek the leave of the court that confirmed the application to depart from the original bank resolution plan, and the court may make any directions on the matter that it thinks fit.

(4) For a period of ninety days after a curator has taken control of a problem banking institution under a bank resolution plan, no proceedings may be commenced against the institution by its creditors.

(10)  Notwithstanding any other law, where under a bank resolution plan—

  • any asset of a problem banking institution has been

transferred to any person;  or

  • control of a problem banking institution has been transferred

to any person;  or

  • the whole or part of the business of a problem banking

institution has been transferred to any person;

no court shall set aside the transfer without the consent of the Reserve Bank, unless the court is satisfied that the transfer was made fraudulently, corruptly or in bad faith:

Provided that this subsection shall not prevent a court from awarding fair and adequate compensation to any person who has suffered loss as a result of the transfer.”

Section 55 (“Duties and powers of curator”) of the principal Act is amended by the insertion after subsection (3) of the following subsection—

“(3a)  Any person alleging to be a creditor of a banking institution under curatorship may, upon furnishing such written proof to the curator as will satisfy the curator that the person is able to prove a claim against the banking institution, and upon payment of the prescribed fee (if any), request that any specific report or every report made by the curator  under subsection (1) (e), (f) and (g) be availed to him or her as soon as practicable after the curator avails it to the Reserve Bank, and the curator shall comply with such request.”.

On page 35 of the Bill under “48A Problem Banking Institutions”, in subsection (8), after the words “the Reserve Bank,” delete “in” and replace it with “after”.

Amendment to Clause 30 put and agreed to.

Clause 30, as amended, put and agreed to.

Clauses 31 and 32 put and agreed to.

On Clause 33:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): I move the amendment

standing in my name that:

On page 37 of the Bill, delete subsection (4) between lines 34 and 41 and substitute the following.

 

“(4) In an application referred to in subsection (3)(c), the High Court may not, despite any other law, reverse or set aside the order of the Reserve Bank to wind up a banking institution made in terms of subsection (1) without the consent of the Reserve Bank, unless the court is satisfied that the decision was made corruptly or in bad faith:

Provided that this subsection shall not prevent the High Court or any other court from awarding fair and adequate compensation to any person who has suffered loss as a result of the decision.”.

Amendment to Clause 33 put and agreed to.

Clause 33, as amended, put and agreed to.

Clause 34 put and agreed to.

On Clause 35:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): I move the amendment

standing in my name that on pages 38 to 40, delete Clause 35 and I am not supporting the amendment moved by the Committee of Finance and Economic Development.  Originally, we had put the Office of the Financial Public Protector but we then realised that in fact this function is currently already performed by the Central Bank and any complaints against any commercial banks are made to the Central Bank.  So, we realise that this institution was not necessary, so we deleted it.

Amendment moved by the Committee on Finance and Development put and negatived.

Amendment to Clause 35 as proposed by the Minister of Finance and Economic Development put and agreed to.

Clause 35, as amended, put and agreed to.

On New Clause 36:

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I move the amendment in

my name that:

On page 41 of the Bill, in paragraph (b), delete from line 25 the words “thirty days” and substitute the words “ninety days”.

After the end of clause 36 on page 41 of the Bill insert the following clause, the subsequent clauses being renumbered accordingly:

The principal Act is amended by the insertion after section 77 of the following section—

“77A       Issuance of civil penalty orders

(1)  Where in this Act provision is made for the imposition of a civil penalty, such provision shall be construed as authorising the Registrar to issue to the person specified by this Act to be responsible for the infringement in respect of which the penalty is imposed (hereinafter called “the infringer”) any one of the following kinds of orders (called a “civil penalty order”) addressed to an infringer, which order shall be issued within such of the following parameters as may be appropriate to the infringement, namely a civil penalty order imposing

  • a fixed civil penalty for a specified completed and

irremediable infringement, for which

  • the penalty shall not exceed a fixed penalty of level ten

or the penalty prescribed by or under this Act, as the case may be;  and

  • the penalty for each day (beginning on the day after the

issuance of the civil penalty order) during which the infringer fails to pay the civil penalty, shall not exceed a penalty of level three (twenty United States dollars) per day for a maximum period of one hundred and eight

(180) days;

and

  • a fixed civil penalty for a specified completed but remediable

infringement

  • for which the prescribed penalty shall not exceed a fixed

penalty of level five (one hundred United States dollars) or the penalty prescribed by or under this Act, as the case may be;  and

  • which must be suspended conditionally upon the

infringer taking the remedial action specified in the civil penalty order within the time specified in that order;  and

  • which (upon the civil penalty becoming operative

because of non-compliance with the requested remedial action) may provide for the prescribed penalty for each day (beginning on the day after the last day on which the infringer should have effected the remedial action) during which the infringer fails to pay the civil penalty referred to in subparagraph(i), which shall not exceed a penalty of level two (ten United States dollars) per day for a maximum period of one hundred and eight (180) days;  and

  • a fixed civil penalty for a continuing infringement
    • for which the prescribed penalty shall not exceed a

penalty of level one (five United States dollars) for each day during which the infringement continues (or the penalty prescribed by or under this Act, as the case may be), not exceeding a maximum period of one hundred and eight (180) days;  and

  • which must be suspended conditionally upon the

infringer immediately (that is say, on the day the civil penalty order is issued) ceasing the infringement;

                   and

  • a fixed civil penalty for a specified continuing infringement

where the time for compliance is of the essence

  • for which the prescribed penalty shall not exceed a fixed

penalty of level ten (six hundred United States dollars) or the penalty prescribed by or under this Act, as the case may be;  and

  • which must be suspended conditionally upon the

infringer taking the remedial action specified in the civil penalty order within the time specified in that order;  and

  • which (upon the civil penalty becoming operative

because of non-compliance with the requested remedial action) may provide for the prescribed penalty for each day (beginning on the day after the last day on which the infringer should have effected the remedial action) during which the infringer fails to pay the civil penalty referred to in subparagraph (i), which shall not exceed a penalty of level two (ten United States dollars) per day for a maximum period of one hundred and eight (180) days;

  • A civil penalty order that becomes payable by the infringer shall constitute a debt due by the infringer to the Registrar and shall at any time after it becomes due, be recoverable in a court of competent jurisdiction by proceedings in the name of the Registrar.
  • The amount of a civil penalty shall be paid into and form part of the funds of the Reserve Bank.”           Amendment to Clause 36 put and agreed to.

Clause 36, as amended, put and agreed to.

Clause 37 put and agreed to.

On Clause 38:

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Mr. Chairman, I move the

amendment standing in my name under Clause 38 that:

On page 42 of the Bill, in paragraph (b) of this clause, add the following new paragraph to section 81(2):

“(g6) the specification, notwithstanding any other law, of a tariff of

remuneration, fees and charges to be payable to a curator, public auditor or accountant, legal practitioner or other independent contractor retained by the Reserve Bank for the discharge of any statutory function any purpose under this

Act;”.

Amendment to Clause 38 put and agreed to.

Clause 38, as amended, put and agreed to.

Clause 39 put and agreed to.

On Clause 40:

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA):  I move the amendments

standing in my name that:

        On page 43 of the Bill, insert after paragraph (b) the following paragraph into clause 40 (now clause 41), and redenominate the existing paragraph (c) as paragraph (d):

“(c) by the insertion after Part IX of the following Part—

“PART IXA

SPECIAL ASSET MANAGEMENT COMPANIES

57A  Establishment of special asset management companies

(1)  In the exercise of its functions the Bank may establish any one or more companies or other entities, to be known as “special asset management companies”, for the purpose of—

  • acquiring, rescheduling, disposing of, holding, managing or

otherwise settling non-performing loans of banking institutions; or

  • on the direction of the Bank, managing, acquiring,

restructuring and disposing of distressed or problem or failed banking institutions;

  • generally, performing such other functions related to the acts

mentioned in paragraph (i) and (ii) or exercising any function conferred on the Bank by or in terms of this Act;”

(2)  Upon completion of the mandate for which it was established in terms of subsection (1), a special asset management company shall be wound up and the necessary account shall be rendered to the Bank.

57B Immunity of special asset management companies, etc.

The immunity of the Bank bestowed by section 63A applies also to any special asset management company, for which purpose references therein the Bank, the Board, the Governor and any employee of the Bank shall be read as references to the company, its board of directors, its chief executive or principal officer and any of its employees.

57C  Powers of Investigation of special asset management companies

Section 47 of the Banking Act applies to a special asset management company in the pursuance of the mandate for which it was established in terms of section 57A (1), as if the company and its employees, are supervisors and inspectors referred to in that section of the Banking Act.

57D  Powers of curatorship of special asset management companies

Section 55 of the Banking Act applies to a special asset management company in the pursuance of the mandate for which it was established in terms of section 57A (1), as if the company (and any of its employees discharging curatorship functions) is the curator referred to in that section of the Banking Act.

57E Special asset management companies exempt from certain duties, fees and charges

(1) No duty or fee in relation to any instrument, service or other matter shall be payable to the State by any special asset management company in respect of-

  • any transfer to the company of property other than property

acquired by the company for its own use or for the use of its employees; or

  • any mortgage, hypothecation or pledge of property or cession

thereof in favour of the company; or

  • any document of security, pledge, act of suretyship,

indemnity or guarantee by or in favour of the company.

(2) A special asset management company shall not be liable for the payment of any search or inspection fee in the Master’s office or in any Deeds Registry or Companies Registry.”.

On page 44 of the Bill, insert after line 39 the following subclause to clause 40, the existing clause becoming subclause (1):

“(2) The wholly owned company of the Reserve Bank of Zimbabwe called the Zimbabwe Asset Management Corporation (Private) Limited, incorporated in terms of the Companies Act [Chapter 24:03] on the 15th July 2014, shall be deemed to be a special asset management company established with effect from the date of its incorporation in terms of Part

IXA of the Reserve Bank of Zimbabwe Act [Chapter 22:15].”.

 

 

 

 

Amendment to new Clause 40 put and agreed to.

New Clause 40, as amended, put and agreed to.

Clauses 41 and 42 put and agreed to.

On Clause 43:

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I move the amendment

standing in my name that:

On page 45 of the Bill, delete Clause 43 between lines 39 and 47.

Amendment to new Clause 43 put and agreed to.

New Clause 43, as amended, put and agreed to.

Clause 44 put and agreed to.

On Clause 45:

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I move the amendment

standing in my name that:

On page 47 of the Bill, insert a new Clause 45 which reads as follows―

“45 Amendment of Reserve Bank of Zimbabwe (Debt

Assumption) Act, No. 2 of 2015

The Reserve Bank of Zimbabwe (Debt Assumption) Act, 2015, is amended by the repeal by the repeal of Section 6 and its substitution with the following―

“Part III of the Public Debt Management Act [Chapter 22:21] shall apply, with the necessary changes, in respect of any obligations assumed in terms of Section 4 as if the obligation were a State loan borrowed in terms of that Act.””.

Amendment to new Clause 45 put and agreed to.

New Clause 45, as amended, put and agreed to.

On Clause 46:

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA):  I move the amendment

standing in my name that:

On page 47 of the Bill, insert a new Clause 46 which reads as follows-

“The Reserve Bank of Zimbabwe Amendment Act, 2010 (No. 1 of 2010), is amended by the repeal of Section 19 and the Schedule”          Amendment to new Clause 46 put and agreed to.

New Clause 46, as amended, put and agreed to.

Schedule put and agreed to.

House resumed.

Bill reported with amendments.

Bill referred to the Parliamentary Legal Committee.

ANNOUNCEMENT BY THE TEMPORARY SPEAKER NON-ADVERSE REPORT RECEIVED FROM THE

PARLIAMENTARY LEGAL COMMITTEE

             THE TEMPORARY SPEAKER: I have received a non adverse

report from the Parliamentary Legal Committee on the Banking Amendment [H.B. 6, 2015].

         Consideration Stage: With leave, forthwith.

CONSIDERATION STAGE

BANKING AMENDMENT BILL [H.B.6, 2015]

Clauses 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 17, 18, 19, 22, 23, 24, 30, 33, 35, 36, 38, 40, 43, 45 and 46 as amended put and agreed

to.

Bill, as amended, adopted.

Third Reading: With leave, forthwith.

THIRD READING

BANKING AMENDMENT BILL [H.B. 6, 2015]

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Madam Speaker, I move

that the Bill be now read the third time.

Motion put and agreed to.

Bill read the third time.

MOTION

ADJOURNMENT OF THE HOUSE

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA): Madam Speaker, we have

come to an end of a very long day and I want to take the opportunity to thank all Hon. Members for their contribution and hard work. I therefore move that the House do now adjourn.

The House adjourned at Nineteen Minutes to Twelve Midnight.

 

 

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