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NATIONAL ASSEMBLY VOTES 29 SEPTEMBER 2015 NO 06

ADVANCE COPY- UNCORRECTED

No. 6

 

 

PARLIAMENT

  

                             OF                              

 

ZIMBABWE

_________________

 

VOTES AND PROCEEDINGS OF THE NATIONAL ASSEMBLY

_________________

 

THIRD SESSION – EIGHTH PARLIAMENT

 

_________________

 

TUESDAY 29TH SEPTEMBER 2015

_________________

 

Quarter past two o’clock pm. The Deputy Speaker in the Chair.

 

PRAYERS

 

Members Present

 

Banda T;

Bunjira R

Chamisa N

Chapfika D

Chasi F

Chibagu G

Chidavaenzi E

Chidhakwa S

Chigudu M

Chigumba C C.

Chikomba L

Chikuni E

Chimedza P Dr

Chimwamurombe A

Chinamasa P

Chinanzvavana C  Chingosho C.P.M

Chinomona M M

Chinotimba J

Chipato A

Chirisa F

Chitembwe V J

Chitindi C

Chitura L

Chivamba K

Chiwetu J Z

Cross E G

Damasane S A.E;

Dhewa  W

Dube S

Dziva T M

Gabbuza J.G.

Gezi T

Gonese I.T Gumbo E.

Gumbo J.M

Gumbo S

Gwanetsa K K

Gwanongodza E  Guzha N.K.

Haritatos P

Hlongwane M

Holder J

Hungwa  G

Hungwe O.S.

Kachepa N

Kadungure D A

Kagonye P

Kanhanga E W

Kaundikiza M

Kazembe K

Khanye N

Khupe T

Kwaramba G Labode M R

Langa A

Machingauta C

Machingura R Mackenzie I Madanha M  Maduza T.

Madondo T

Madubeko J

Mahiya M

Mahoka S

Majome F J  Makoni R R

Makonya J  Makunde T

Makweya M

Mandipaka O

Mangami D

Mangwende S

Maondera W

Mapiki J

Maridadi J

Marumahoko R

Masamvu L

Mashakada T

Mashange W

Mashayamombe S Mashonganyika D

Masiya D

Masuku P

Matambanadzo M

Matangaidze T

Matangira T R

Mataruse P

Matienga M

Matimba K M

Matiza B J

Matsunga S.

Matuke L

Mavenyengwa R Mawere M D V

Mawere M RN S

Mbwembwe E

Mguni O  Mguni N.

Mhere E

Mhlanga N J

Mhona F T Misihairambwi P M

Mkandla M  Mlilo N.

Mnangagwa A.

Mnangagwa E

Moyo E N

Moyo F

Moyo L

Mpala M.

Mpariwa P

Mpofu B

Mpofu M M

Mpofu R

Mpofu S

Mtingwende T Muchenje M S

Muchinguri O

Mudambo T

Mudarikwa S

Muderedzwa R

Mudzuri E

Mudyiwa M.

Mufunga A

Mukanduri S T

Munochinzwa M Musabayana D.

Mukupe T.

Mukwangwariwa F G

Mukwena R

Munengami F

Munochinzwa M.

Mupereri V.

Mupfumi I F

Murai E

Musanhi K S

Musiiwa A

Musundire A L

Musvaire W

Mutezo M

Mutomba W

Mutseyami P C

Muzenda T M

Muzondiwa E S

Ncube A

Ncube D M

Ncube G M

Ncube H

Ncube O

Ncube S

Ndebele A

Ndhlovu Alice

Ndhlovu  Annastancia

Ndlovu D M;

Ndlovu M S

Ndoro L F

Nduna D

Nguni S R

Nhambu B.

Nhema C F.D.;

Nkatazo M M

Nkomo Mail

Nkomo Malachi

Nleya L

Nyanhongo M

Nyere C

Paradza K

Passade J

Pedzisai I

Phiri F P

Rudzirwayi J M

Runesu B

Rungani A

Ruvai E

Samkange J T

Sansole T W

Saruwaka T J.L.;

Savanhu T

Seremwe B.

Shamu W K

Shongedza E

Sibanda D P

Sibanda M

Sibanda Z

Sithole G K

Simbanegavi Y

Sindi C

Tarusenga U  D

Thembani S Z  Tongofa M

Tshuma B

Tshuma D Tshuma J. Tsomondo C Uta K.

Vutete M

Wadyajena J M

Zemura L

Zhou P

Zhou T

Zindi I

Ziyambi Z

Zwizwai M

 

 

 

 

Printed by Order of the House

 

Absent with leave

Hon Mahlangu T.; Hon Moyo F.; Hon Ndlovu N.

  1. SECOND READING: General Laws Amendment Bill (H.B. 3, 2015) – The Vice President and Minister of Justice Legal and Parliamentary Affairs.

 

On the motion of the Vice President and Minister of Justice, Legal and Parliamentary Affairs: Debate adjourned until Thursday 1st October 2015.

 

  1. Adjourned debate on motion on the Second Reading of the Criminal Procedure and Evidence Amendment Bill, (H. B. 2, 2015) (Reinstated 23rd September, 2015The Vice President and Minister of Justice, Legal and Parliamentary Affairs).

[Days elapsed: 2]

 

Question again proposed: That the Criminal Procedure and Evidence

Amendment Bill 2015, (H. B.2, 2015) be now read a second time- The Vice President and Minister of Justice, Legal and Parliamentary Affairs.

 

On the motion of the Vice President and Minister of Justice, Legal and Parliamentary Affairs: Debate adjourned until Thursday 1st October 2015.

 

  1. Adjourned debate on motion in reply to the Presidential Speech. (Adjourned

24th  September, 2015)- The Deputy Minister of Industry and Commerce

                                              

                                                                                    [Time elapsed: 3 hour 7 minutes]

 

Question again proposed: That a respectful Address be presented to the President of Zimbabwe as follows:-

 

May it please you, your Excellency, the President:

 

We, the Members of Parliament of Zimbabwe, desire to express our loyalty     to Zimbabwe and beg leave to offer our respectful thanks for the speech, which you have been pleased to address to Parliament – Hon. Mutomba.

 

On the motion of the Minister of Finance and Economic Development: Debate adjourned until tomorrow.

 

  1. Report from the Parliamentary Legal Committee NOT being an adverse report on the following Bill:-

[Date received]

 

Finance No. 2 Bill (H.B. 5, 2015) – The Minister of Finance and Economic

Development.....................................................................29th September 2015

 

Second Reading, with leave, forthwith.

 

Bill read a second time. Committee, with leave, forthwith.

 

(House in Committee)

 

Clauses 1 to 24 put and agreed to.

 

Bill to be reported without amendment.

 

(House resumed)

 

Bill reported without amendment.

 

Third Reading, with leave, forthwith.

 

Bill read a third time.

 

  1. Bill Transmitted to the Senate

Date Transmitted

Finance No. 2 Bill (H.B. 5, 2015)..................................29th September, 2015

 

  1. Report from the Parliamentary Legal Committee NOT being an adverse report on the following Bill:-

[Date received]

 

Banking Amendment Bill (H.B. 6, 2015) – The Minister of Finance and

Economic Development.....................................................................29th

September 2015

 

Second Reading, with leave, forthwith.

 

Bill read a second time. Committee – Tomorrow.

 

  1. On the motion of the Minister of Finance and Economic Development.: The House adjourned at ten minutes to five o’ clock pm.

 

 

M.M CHINOMONA,

Deputy Speaker.

_____________________________________________________________________

 

WEDNESDAY, 30TH SEPTEMBER, 2015

 

t

 

QUESTIONS WITHOUT NOTICE

 

QUESTIONS WITH NOTICE
*1. HON MAWERE MDV: To ask the Minister of Local Government, Public Works and National Housing to explain what measures the ministry intends to take to strengthen the operations of the Liquor Licencing Board  in order for it to effectively;

(a)   Carry out Annual Routine Inspections

(b)   Maximise revenue collection

(c)   Reduce illegal selling of liquor at all the rural townships

*2.

 

HON.TSHUMA B: To ask the Minister of Local Government, Public Works and National Housing to provide an update of progress made in the Amalgamation of the area under the Hwange Local Board and the concession area under the Hwange Colliery Company, and if possible to indicate the date when the process will be finalised.

[Deferred from Wednesday, 22nd July, 2015]

 

*3.

 

HON MASUKU: To ask the Minister of Local Government, Public Works and National Housing to state the measures Government is putting place to reduce road carnages on major roads
*4.

 

HON MASUKU: To ask the Minister of Local Government, Public Works and National Housing what measures Government is taking to address the housing backlog in Bulawayo.
*5.

 

HON MASUKU: To ask the Minister of Local Government, Public Works and National Housing to describe Government’s plans to provide a lasting solution to water challenges being faced by Bulawayo City Council.
*6.

 

HON SIBANDA P.D.:  To ask the Minister of Local Government, Public Works and National Housing to explain why the Ministry is not taking corrective action on Mr Joshua Muzamba who is both the Chief Executive Officer of Binga Rural District and a ZANU PF Central Committee Member as this is in contravention with Section 266 (3) of the Constitution and to further explain when the corrective action will be taken.
*7.

 

HON NKOMO MAIL:  To ask the Minister of Local Government, Public Works and National Housing to explain the circumstances surrounding the delay in the opening of the Lupane Government Complex whose construction was completed some time ago.
*8. HON CHIGUDU:  To ask the Minister of Small and Medium Enterprises and Cooperative Development to state steps taken by the Ministry to assist small businesses in Mushawasha District, in Ngomahuru area, Masvingo to grow.

 

 

*9.

 

HON MASUKU: To ask the Minister of Energy and Power Development when the Zimbabwe Electricity Distribution and Transmission Company is going to award 160 units of  free electricity to residents of Emganiwini in Nketa Constituency which was awarded to other residents.
*10.

 

HON NKOMO MAIL: To ask the Minister of Energy and Power Development to inform the House when the Ministry will complete the electrification of Chief Manyezwa Gumede’s homestead in Lupane West Constituency.
*11.

 

 

HON NKOMO MAIL:  To ask the Minister of Energy and Power Development to state when the Ministry will replace transformers at Mzola 27 Business Centre in Lupane West constituency.
*12.

 

HON MASUKU: To ask the Minister of Public Service, Labour and Social Welfare to explain Government policy with regards to retrenchment of workers by private companies, for example, Treger group of companies which is forcing workers above 55years to accept packages equivalent to 6months of employment when they have served the company for more than 30 years.
*13.

 

HON MASUKU: To ask the Minister of Higher and Tertiary Education, Science and Technology Development to explain whether the Ministry is considering the introduction of 16 official languages at all teachers colleges.
*14.

 

HON MASUKU: To ask the Minister of Higher and Tertiary Education Science and Technology Development to state the reasons why those who have learnt Ndebele are denied training in all teachers colleges in Zimbabwe except at Gwanda and  Masvingo Teachers Colleges  and the United College of Education.
*15.

 

 

HON MASUKU: To ask the Minister of Higher and Tertiary Education, Science and Technology Development to explain whether the Ministry is considering the introduction of 16 official languages at all teachers colleges.
*16.

 

HON MASUKU: To ask the Minister of Higher and Tertiary Education Science and Technology Development to state the reasons why those who have learnt

Ndebele are denied training in all teachers colleges in Zimbabwe except at Gwanda and  Masvingo Teachers Colleges  and the United College of Education.

*17.

 

HON NKOMO MAIL:  To ask the Minister of Higher and Tertiary Education,

Science and Technology Development to state when the students of Lupane State University will be relocated from Bulawayo to Lupane State University Campus.

*18. HON.TSHUMA B: To ask the Minister of Environment, Water and Climate to explain specific policy actions being taken by the Environmental Management Agency to stop the dumping of toxic liquid waste by the Hwange Colliery Company limited into surrounding water bodies such as Deka River considering that this has been going on for too long unabated.

 

 

*19.

 

HON MASUKU: To ask the Minister of Environment, Water and Climate Change to state the Ministry’s plans put in place to prevent veld fires during the summer season.
*20. HON.TSHUMA B: To ask the Minister of Environment, Water and Climate to explain specific policy actions being taken by the Environmental Management

Agency to stop the dumping of toxic liquid waste by the Hwange Colliery Company limited into surrounding water bodies such as Deka River considering that this has been going on for too long unabated.

 

*21.

 

HON MASIYA : To ask the Minister of Environment, Water and Climate to explain whether cattle can be allowed to graze in Gonarezhou National Park given that there is no grass in the surrounding areas.
*22.

 

 

HON NKOMO MAIL: To ask the Minister of Environment, Water and Climate to state when the Ministry will complete the water purification plant at Lupane Dam.
*23.

 

HON MASUKU: To ask the Minister of Primary and Secondary Education to explain the Ministry’s plans to have additional classroom blocks build at Ngwenyama Primary School in Nketa Constituency.
*24.

 

HON MASUKU: To ask the Minister of Primary and Secondary Education to explain the Ministry’s plans to have additional classroom blocks build at Ngwenyama Primary School in Nketa Constituency.
*25.

 

HON TARUSENGA:  To ask the Minister of Primary and Secondary Education to explain why no action has been taken on the St. Aidans Primary School Headmaster who was implicated in a case of misappropriation of school funds, which has resulted in the bursar being arrested and charged.
*26.

 

HON TARUSENGA: To ask the Minister of Primary and Secondary Education to explain why the former headmaster of Tangenhamo Primary School was demoted and, was transferred to Seke 13 Primary School in Chitungwiza where he is now the acting Headmaster at this school.
*27.

 

HON TARUSENGA:  To ask the Minster of Primary and Secondary Education to state when St. Mary’s Constituency in Harare Province will have a government Secondary School, considering that residents are sending their children to private schools which are expensive but poorly equipped.
*28.

 

 

HON CHIGUDU:  To ask the Minister of Primary and Secondary Education to state plans in place to establish Early Childhiood Development Centres in Mushawasha District, Masvingo.
*29.

 

HON.TSHUMA B: To ask the Minister of Youth, Indigenization and Economic Empowerment to explain why the Hwange Community Share Ownership Trust has not been operationalized since its inception and if possible to state when the Hwange Community can expect it to be operational.
*30. HON.TSHUMA B: To ask the Minister of Youth, Indigenization and Economic Empowerment to explain why the Hwange Community Share Ownership

Trust has not been operationalized since its inception and if possible to state when the Hwange Community can expect it to be operational.

 

 

 
*31.

 

 

HON.TSHUMA B: To ask the Minister of Mines and Mining Development to explain progress in the implementation of the restructuring strategy adopted by the Hwange Colliery Company Limited at its 2014 Annual General meeting in particular;

a)     To state the physical places where the 5 divisions will be established;

b)     To outline the governance structure of each division

c)     To explain the nature of the relationship between the units and the main company; and

d)     To state when the process is expected to be completed.

*32.

 

HON.TSHUMA B: To ask the Minister of Mines and Mining Development to explain

a)     Why Hwange Colliery Company employees are still housed in old colonial housing structures such as Lwendulu, Madumabisa and Makwika villages where the community shares ablution facilities.

b)     Whether the Company had plans to dispose of those houses to the current occupants and if not to state the scheme in place for employees to own houses.

 

*33.

 

 

HON.TSHUMA B: To ask the Minister of Mines and Mining Development to explain progress in the implementation of the restructuring strategy adopted by the Hwange Colliery Company Limited at its 2014 Annual General meeting in particular;

(a)   To state the physical places where the 5 divisions will be established;

(b)   To outline the governance structure of each division

(c)   To explain the nature of the relationship between the units and the main company; and

(d)   To state when the process is expected to be completed.

*34.

 

HON.TSHUMA B: To ask the Minister of Mines and Mining Development to explain

a)     Why Hwange Colliery Company employees are still housed in old colonial housing structures such as Lwendulu, Madumabisa and Makwika villages where the community shares ablution facilities.

 

b)     Whether the Company had plans to dispose of those houses to the current occupants and if not to state the scheme in place for employees to own houses.

 

*35. HON MASUKU: To ask the Minister of Transport and Infrastructural Development whether ZINARA has availed any funds to Bulawayo City Council to attend to street lights.

 

*36.

 

HON MASUKU: To ask the Minister of Transport and Infrastructural

Development to state when the Ministry is going to resurface St Martin road which connects Emganiwini in Nketa Constituency and Rangemore in Mguza Constituency.

*37.

 

 

HON SHONGEDZA: To ask the Minister of Transport and Infrastructural Development to inform the House what plans are in place to complete the surfacing of the Hondo – Mukumbura road which has been outstanding for the past ten years.
*38.

 

HON MASIYA : To ask the Minister of Agriculture, Mechanisation and Irrigation Development to explain whether there is any policy challenge in transferring the Rupanganwa Training Centre from this Ministry to the Ministry of Youth, Indigenistion and Economic Empowerment where it can be used as a skills training centre in line with ZIMASSET which demands that we maximize the use of all infrastructure available to us.
*39.

 

HON MASIYA.: To ask the Minister of Agriculture, Mechanisation and

Irrigation Development to state the Ministry’s plans to stop the spread of foot and mouth disease in Chiredzi and neighbouring districts.

*40.

 

HON MASIYA : To ask the Minister of Agriculture ,Mechanisation and Irrigation Development

(a)   To state the Ministry’s allocation of farm tractors and implements for Tshovani, Chilonga and Chambutya irrigations in chiredzi East Constituency.

 

(b)   To state whether there are any immediate plans to increase hectrage of the three irrigations mentioned above considering that they still have vast irrigable land with plenty of water.

 

*41.

 

HON NKOMO MAIL: To ask the Minister of Home Affairs to indicate when the Registry and Passports Offices of Matebeleland North in Lupane will be opened considering that the construction of the offices was completed years ago.
*42.

 

HON TARUSENGA:  To ask the Minister of Home Affairs to state whether it is the Ministry’s Policy for Investigation Officers to use their own money, or to require the complainant or the accused to pay for typing state papers.
*43.

 

HON NKOMO MAIL:  To ask the Minister of Finance and Economic

Development to inform the House when the Ministry will avail the funds for the completion of  Lupane Provincial Hospital.

*44. HON CHIKUNI: To ask the Minister of Finance and Economic Development when the Ministry  will disburse the remaining 95% budget allocation to the ministry of Women Gender and Community Development to enable them to execute their mandate.

 

 

ORDERS OF THE DAY AND NOTICE OF MOTION

 

  1. Adjourned debate on motion in reply to the Presidential Speech. (Adjourned

29th  September, 2015)- The Deputy Minister of Industry and Commerce

                                              

                                                                                 [Time elapsed: 4 hours 43 minutes]

 

Question proposed: That a respectful Address be presented to the President of Zimbabwe as follows:-

 

May it please you, your Excellency, the President:

 

We, the Members of Parliament of Zimbabwe, desire to express our loyalty     to Zimbabwe and beg leave to offer our respectful thanks for the speech, which you have been pleased to address to Parliament – Hon. Mutomba.

 

  1. CONSIDERATION: Adverse Report by the Parliamentary Legal Committee on Statutory Instrument No. 77 of 2015 (Presidential Powers) Application of [Chapter 8:14] to Premier Medical Aid Society Regulations, 2015.

 

  1. HON. DR. LABODE

HON. DR. CHIMEDZA

 

That this House takes note of the Report of the Parliament of Zimbabwe Delegation to the 9th Stop Cervical, Breast and Prostate Cancer in Africa Conference, held from 19th to 21st July, 2015 in Nairobi, Kenya.

 

  1. COMMITTEE: Banking Amendment Bill (H.B. 6, 2015) – The Minister of Finance and Economic Development

 

(See Notice of Amendments)

 

  1. COMMITTEE OF SUPPLY.

 

 

THURSDAY, 1ST OCTOBER, 2015

 

ORDERS OF THE DAY

 

  1. SECOND READING: General Laws Amendment Bill (H.B. 3, 2015) – (Adjourned

29th September 2015 The Vice President and Minister of Justice, Legal and Parliamentary Affairs)

 

  1. Adjourned debate on motion on the Second Reading of the Criminal Procedure and Evidence Amendment Bill, (H. B. 2, 2015) (Adjourned 29th September, 2015The Vice President and Minister of Justice, Legal and Parliamentary Affairs).

 

[Days elapsed: 3]

 

Question proposed: That the Criminal Procedure and Evidence Amendment Bill 2015, (H. B.2, 2015) be now read a second time- The Vice President and Minister of Justice, Legal and Parliamentary Affairs.

 

 

 

NOTICE OF AMENDMENTS

Banking Amendment Bill, 2015 (H B 6, 2015)

CLAUSE 2 (AMENDMENT OF SECTION 2 OF CAP. 24: 20)

 

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

Amendments to clause2(a)

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) (m) 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;”.

 

Amendment to clause 2(b)

On page 4 of the Bill, delete from line 39 in the new paragraph (g) as inserted by clause 2 (b) the words “an accounting entity” and substitute “an entity”.

 

Amendments to clause 2(c)

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.”.

CLAUSE 4 (AMENDMENT OF SECTION 4 OF CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

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”).

 

CLAUSE 5 (AMENDMENT OF SECTION 8 OF CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

On page 9 of the Bill, in paragraph (c) (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”.

 

CLAUSE 9 (NEW PART INSERTED IN CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

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:

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 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:

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 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:

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 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:

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 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.”.

CLAUSE 10 (AMENDMENT OF SECTION 16 CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

On page 19 of the Bill, delete the words “corporate governance” in line 34 and substitute

“corporate governance framework”.

 

CLAUSE 11 (AMENDMENT OF SECTION 18 CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

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 subsection (1g) 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   (a) 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 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 (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.”.

 

CLAUSE 11 (AMENDMENT OF SECTION 18 CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

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 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

(e) 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.”.

 

CLAUSE 14 (NEW SECTIONS INSERTED IN CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

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—

  • was not responsible for the manner in which the business of the institution or company was carried on; and
  • 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:

 

“(1h)  Subject to section 73, a banking institution or controlling company that

(a) 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  (b) 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.”.

 

CLAUSE 16 (AMENDMENT OF SECTION 25 OF CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

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)”.

CLAUSE 17 (NEW SECTION SUBSTITUTED FOR SECTION 26 OF CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

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.”.

 

CLAUSE 18 (NEW SECTIONS INSERTED IN CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

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 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”.

 

CLAUSE 19 (NEW PART INSERTED IN CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

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 28E (“Disclosure of certain information to customers of banking institutions”) 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.”.

 

CLAUSE 22 (NEW SECTIONS INSERTED IN CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

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”.

 

CLAUSE 23 (NEW SECTIONS SUBSTITUTED FOR SECTION 32 OF CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

On page 31 of the Bill, by the deletion between lines 20 and 24 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)”.

 

CLAUSE 24 (AMENDMENT OF SECTION 35 OF CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

On page 31 of the Bill, by the deletion between lines 20 and 24 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:

“(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, 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 of its directors, shareholders or principal officers, or to a close relative or associate of any of those persons, 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—
  • the board of the banking institution; or
  • the Registrar;

and the credit shall be repayable together with interest at the prevailing money market rate to the banking institution 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 prevailing money market 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
    • 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.”.
    • 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.”.

NEW CLAUSE TO BE SUBSTITUTED FOR CLAUSE 30

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

On pages 33 to 36 of the Bill, delete clause 30 and substitute the following clause:

30 New sections inserted in Cap. 24:20

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.

the Reserve Bank shall, if it makes a determination in terms of subsection (1), and after affording the banking institution an adequate opportunity to make representations in the matter—

  • 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

(q) 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.

  • 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.
  • 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.
  • 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.
  • Measures referred to in subsection (5) 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
  • 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, in 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, in 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.”.

CLAUSE 33 (NOW 34) (NEW SECTION SUBSTITUTED FOR SECTION 57 OF CAP.

24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

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.”.

 

CLAUSE 36 (AMENDMENT OF SECTION 73 OF CAP. 24: 20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

On page 41 of the Bill, in paragraph (b), delete from line 25 the words “thirty days” and substitute the words “ninety days”.

NEW CLAUSE INSERTED AFTER CLAUSE 36

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

After the end of clause 36 on page 41 of the Bill insert the following clause, the subsequent clauses being renumbered accordingly:

37 New section inserted in Cap. 24:20

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 noncompliance 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 noncompliance 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.”

 

CLAUSE 38 (NOW 39) (AMENDMENT OF SECTION 81 OF CAP. 24:20)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

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;”.

CLAUSE 40 (NOW CLAUSE 41) (AMENDMENT OF CAP. 22:15)

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

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.”.

 

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

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].”.

 

CLAUSE 43 (AMENDMENT OF SCHEDULE TO ACT 1 OF 2010)

 

BY THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT

 

On page 45 of the Bill, delete clause 43 between lines 39 and 47.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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