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Thursday, 20th June, 2013

The Senate met at Half-past Two o’clock p.m.





  THE DEPUTY PRESIDENT:  May I remind hon. senators to

switch off your cell phones before business commences.


  SENATOR CHIEF CHARUMBIRA:  I would like to find out

from the Minister sitting next to me and I have just seen that he is also representing the Minister of Finance this afternoon, so he is wearing two hats.  Minister, next week we will come to the close of Parliament term and Government still owes Members of Parliament a lot of outstanding payments in the form of travel expenses, coupons and etcetera.  What arrangements have you put in place to ensure that before end of the term next week, payments are made?  Thank you.


OFFICE (MR. TIMBA):  I will have to take this specific request to the substantive minister for a substantive response.  Thank you.

SENATOR MANDABA:  I would like to find out from the

Minister in the Organ for National Healing, Reconciliation and Integration as to how far we are with the healing process?  Is it continuing during and after elections?  I know that they wanted to have structures in the provinces.  Are they still going to decentralise?  I thank you.


OFFICE (SENATOR. HOLLAND):  Mr. President, the question is what will happen with the national healing programme after the elections?  The mandate of the Organ for National Healing,

Reconciliation and Integration was to advise the three Global Political

Agreement principals on how the question of peace will be addressed in Zimbabwe.  Successfully after four years, the three provided an infrastructure for peace with four elements.

These have been adopted in the COPAC draft which is now a

Constitution.  This means the National Peace and Reconciliation Commission is part of whatever enabling Act will be in place after the elections.  The code of conduct for and by political parties has been signed by the three Principals.  It is operational.  Yesterday we were discussing a State occasion launch in conjunction with the history project, which you all have been involved in with the traditional leaders, the academics and grass roots communities.  The launch will spell out that this is a programme that the Principals have agreed to and it will be on-going.  The history project is at MSU under Prof. N. Bhebhe as part of the Africa History Project in UNESCO.  The code of conduct is going on.

The fourth element, which is the programme, is at MSU.  There will be launched, in August, a degree programme in the new department of Peace, Economics and Reconciliation, which is the fourth leg of the Infrastructure for Peace and it will be connecting as is done at MSU;  academic work with grass roots reality lives for society to learn and continue to learn what peace is about.

With that there is an exhibition centre for peace, where the practical problems facing Zimbabweans in relation to national healing will be put to test.  Results will be used by communities to continue with the peace process.  Briefly the answer is, the Infrastructure for Peace has been agreed to by the three Global Political Agreement Principals.  It is now being implemented, it is operational and yes, it is actually going to be something that will be a result of COPAC.

As I have said in this Senate over and over again, the people who were involved with COPAC, whenever they stand up to speak, lonkenje – mese muno, especially the women, I see people who will be taking their places in the new National Peace and Reconciliation Commission because the structures go from the national four men, four women and a

President for chair; at the provinces four men, four women.  At the districts and at the wards, the structures of the National Peace and Reconciliation Commission will be up to village level.

These people who will be part of the National Peace and Reconciliation Commission will be dealing with all transitional justice mattersInto ezibuhlungu – zvinhu zvinorwadza, in relation to what people feel is the injury they have suffered as a result of political conflicts.

As we have said in the organ we have been talking to the traditional leaders – Chief Charumbira and Chief Mtshane Khumalo.  We understood from the very first meeting we held with them that in Zimbabwe, people have never departed from their traditional way of resolving conflict, which is in Ndebele ukukhumelena umlotha - as Chief Mtshane and Chief Charumbira told us in the first meeting,  kusvutisana fodya. 

Embodied in the National Peace and Reconciliation Commission is the appeal from the three organ Principals, our Chair, the late Landa John Nkomo and the late, our colleague Minister Gibson Sibanda replaced by Minister Moses Ndlovu, we appealed to our people to put ukukhumelana umlotha - ku svutisana fodya as the way in which we are going to approach our reconciliation process at every level abantu baxoxisane bazwanane, vanhu vataurirane vanzwanane.  It is the Shonas in our country who say kugona ngozi kuiripa.  That does not mean exchanging of wives or taking your kraals out to give to the other person but it is people really discovering ubuntu, hunhu hwedu in the process of conflict resolution and really adopting those measures of bringing peace in your heart, in the heart of your family and your community because esintwini sethu - pachivanhu chedu pahunhu hwedu, we recognise ourselves in one another, as indeed the Bible says, “we are all created in the image of God”.  It is that image of God which we look for in one another when we do reconciliation.  I hope that answers the question.  I thank you.

SENATOR MUMVURI:  Thank you Mr. President.  My question

goes to the Minister of State in the Prime Minister‟s Office.  I would like to know what measures Government is putting in place to ensure the smooth holding of the United Nations World Tourism Organisation

Conference (UNWTO), which is going to be held in the later part of August 2013, in view of the lack of consensus on the holding of the harmonised elections this year.  Thank you.


OFFICE (MR. TIMBA):  Let me start by saying that there is full commitment by the Inclusive Government to ensure the holding of the United Nations World Tourism Organisation Conference in Victoria Falls that we are co-hosting with Zambia.  It is correct that at this juncture there appears to be uncertainty as to when the country will be holding its elections.  Whether that would happen before that conference or after it but hon. senators would be aware that currently, there is a constitutional court judgment which has ruled that such an election should be held by the 31st of July, which is almost a month before that conference is held.  Notwithstanding that, Mr. President, hon. senators would be aware that on the 15th of June there was a meeting of the

Summit of SADC Heads of State and Governments and during that meeting, there was an agreement by all the three parties to the Global

Political Agreement and all the SADC leaders that the Government of Zimbabwe should engage the Constitutional Court with a view to seeking an extension of time for the holding of the elections beyond the 31st of July.

Pursuant to that resolution of the SADC Summit, Principals in the GPA met yesterday to deliberate on the same and an agreement was reached that at least representatives from the three parties should meet to come up with a consensus application that should go to the

Constitutional Court to seek for that extension of time.  Prior to that Mr. President, it is unfortunate that one of the ministers had prematurely filed an application with the Constitutional Court, whose application was not based on any consensus discussion among the three parties within the GPA.  The Principals are now seized with this matter and there will be a second meeting that they will hold on Friday.  We sincerely hope that after the Friday meeting, they will be able to come up with a common position with regard to this matter and hopefully, with a common application that will be put before the Constitutional Court to determine when we are likely to be able to have our elections.  I think the most important thing is that there is commitment in Government to ensure the successful hosting of this conference that we will co-host with Zambia.  I thank you.

SENATOR MUMVURI:  In view of the minister‟s response, does

the minister not think that if the extension which is being sought about is now infringing in the days of the holding of the United Nations World Tourism Organisation. Is there a possibility that elections can be held after the conference has been held?


OFFICE (MR.TIMBA): Mr. President, I would like to avoid, if I may be allowed, to anticipate the discussions that the Principals are due to hold on Friday. I thank you.

SENATOR MARAVA: Thank you Mr. President. My question is

directed to the Minister of State for National Healing. I would like to know - National Healing is a very important issue now in our country.

My question Mr. President is, are we ever going to have an issue like a Minister or Ministry of National Healing since it is so important and we have to put all the weight behind it? Thank you.


are two things. The first one is that the country is faced with the new way of doing things in the whole world where the budget for running governments has to be reduced drastically. I am told Zimbabwe spends 73% of its budget on running government, which is unacceptable. If you are familiar with NGOs, you know that the administrative costs have to be something like 15%, may be 30% but no-more for the NGO to be


So, the challenge that is faced by Government is that although,

Cabinet approved the recommendation by the three Co-Principals at the Organ for National Healing, Reconciliation and Integration for the formation of a Ministry for National Healing and Reconciliation; and although that was adopted by Cabinet and should be part of the enabling Act so that all policy matters to do with peace in Zimbabwe are directed from a ministry, the  recommendation we have now is that in the pulling together of different ministries, perhaps consideration will be given to there being a ministry of something something like National Healing, Reconciliation and Integration which will really lift the profile of the entire area of peace and national healing.

I just wanted to say you will see how important it is. I have just been to Mabvuku, my senatorial constituency and may be this can also help our colleague who is talking about the importance of us following the Constitution; I was trying to get the aliens because I have the highest number of aliens in the country in Mabvuku, Tafara and in Epworth.

People in the mobile unit were saying to the alien people, “why do you want to register”? It was this morning and they did not know that the Senator was around.  They retorted back, we want to vote. Why do you want to vote because with your registration card still indicating that you are an alien you can still reside in Zimbabwe. So, these people were going back home.

I am just saying the amount of healing that is required in Zimbabwe is huge because if we are saying we are following the law, we have to follow it from where we are registering people, from where we are checking our names from all that. So, I ended up doing national healing work there, trying to get people to understand that voting is everybody‟s right. If things were moving well with such a ministry and employees were there; they are the ones who should be traveling round the country telling people it is your right to register kuti ah! imi  muri mukati tinokudzingai basa kopinda vamwe.  But, of course we do not have that at the moment. So those very naughty officers were lying to the people kugara mu Zimbabwe hakudi kuti muchinje hualien hwenyu knowing that they are preventing people from exercising their right to vote. I thank you.

*SENATOR MANDABA: My question is, we have got prisoners,

some of whom got into prison because they fought and killed a person. Some committed various crimes but when in prison, they will be asking themselves why I did this? Where does national healing come in and  end?  As National Healing, do you not help prisoners including that man in prison whose term is about to end and when he is about to be released, he is likely to meet relatives of the murdered person. Does National Healing go beyond that?


OFFICE (SENATOR HOLLAND): Thank Mr. President, I am glad

Chief Charumbira has come back because in the issue of National Healing, we have walked with the chiefs, at his presidency and chief Mtshane Khumalos.

*This is a very good question. In some areas, people have copied what Zimbabweans do. If a person has killed someone, there is a victim friendly court and all those things. It will be said to the murderer and the victims‟ relatives, would you like to meet? In Africa we hear that people interact. You do not have to ask that question. You go back home and write a proposal which I would like to look at. I will be looking forward to see it next week if you are not able to do it, come and we can do it together with the head of Unit which deals with prison issues. It is very important in Africa to understand that before the whites came, we did not have prisons as we were told by the chiefs in that we had our own ways and means of solving complex issues. It was good.

If an issue has been discussed the defendant and the plaintiff there comes a breakthrough between conflicting individuals. In these families there will peace both in the area and the country as a whole and the fact that if I made a mishap, there are ways and means of solving such issue.

Whites said it rightly that “to err is human, to forgive is divine”. God is the forgiver of all sins but for black nenyaya yekusvutisana fodya nenyaya ukukhumelana umlotha, vanotora nyaya yekuti vanhu vagone kuregererana nokutaurirana. So I am asking you to have a Prisoners National Healing Programe, then you come with the recommendation to the Organ. We will then start with the issue that is being asked and then we can recruit anaMai Dandajena vese ava vapanana zvigaro muchiita unity ye prison tione kuti zvinhu zvemujere zvanaka. The issue of prison is painful if it happens to you be it mukwasha, muroora, kana chii nokuti hausisina mukana iwe wekupinda uchiona kuti unogadzirisa kuti muroora wako abude. Ku America neku England kunotori neprogramme kuti vanhu vagadzirisane so that the people will reach agreements whilst still inside.  So I like your question very much and please I would like to see your programme, Senator Dandajena you should go and help them so that you will bring a programme for us to deal with the issues of national healing in prisons.  I thank you.



THE DEPUTYPRESIDENT: I have received the Money Laundering and Proceeds of Crime Bill from the House of Assembly.







President, the Money Laundering and Proceeds of Crime Bill seeks to align the country‟s Anti-Money Laundering and Combating of

Financing of Terrorism (AML/CFT) Legal and Institutional Frame Work, in line with the Financial Action Task Force (FATF) recommendations.  In particular, the Bill seeks to amend the bank use promotion and suppression of Money Laundering Act Chapter [24, 24], the Criminal Matters Mutual Assistance Act [Chapter 9, 06], Building

Societies Act [Chapter 24,02] and the Asset Management Act Chapter 24,26 as well as repealing the serious offences (Confiscation of Profits) Act [Chapter 9,17].

Hon. Senators may recall that, Zimbabwe is one of the founding members of the Eastern and Southern African Anti-Money Laundering

Group (ESALG), which in turn is an associate member of the Financial

Action Task Force (FATF), an International Standard Setting Board on

Money Laundering and Terrorism Financing.

Mr. President, by virtue of its membership to ESAAMLG and indirectly to FATF through ESAAMLG, Zimbabwe is obliged to implement the Standards of Combating Money Laundering and Terrorism Financing developed and adopted by FATF.  The FATF standards are built upon a number of United Nations Conventions and resolutions, including:-

  • The 1988 UN Convention against illicit Traffic on Narcotic

Drugs and Psychotropic Substances;

  • The 1999 UN Convention on the Suppression of the

Financing of Terrorism; and

  • The 2000 UN Convention against Transnational Organised Crime.

These Conventions are all aimed at promoting International Cooperation in preventing and containing drug trafficking, domestic and cross border organised crime, corruption and the financing of terrorism.

It should be noted that the FATF Standards change from time to time in line with changing cross border crimes and activities.

Mr. President, prior to 2001, there were 40 FATF recommendations/standards on Anti-Money Laundering, which member states were, required to incorporate into their legal and institutional arrangements.  In 2001, the FATF Standards were reviewed to bring in the Combating of Financing of Terrorism (CFT), hence there was an addition of 9 Special Recommendations pertaining to CFT.  In February 2012, the standards were further reviewed and consolidated to 40 recommendations covering both AML/CFT issues.  An additional aspect of combating the proliferation of weapons of mass destruction was added to the AML/CFT issues through the new recommendations adopted in February 2013.  Although FATF call them „standards‟, it is an obligation for ESAAMLG member states and other Regional Style bodies to implement such standards.

In 2006, Zimbabwe underwent a mutual evaluation exercise to establish the extent of compliance to the FATF standards.  The Mutual Evaluation Report for Zimbabwe, which was published in 2007, indicated that Zimbabwe‟s AML/CFT legislation and other systems were not FATF compliant in 14 out of the 16 Core and Key recommendations.  The country was assessed using the 2004 FATF methodology which was based on the 40 plus 9 Special Recommendations.  The next assessment of the country which is tentatively scheduled for 2016 will be based on the New FATF 40 recommendations adopted in 2012.  The country should therefore be guided by the new FATF standards in order to avoid regular review of the AML/CFT legislation.

Pursuant to the need to address the identified deficiencies, in 2012,

Government received technical assistance from the United Nations Office on Drugs and Crime (UNODC).  The Consultant produced a model Law on AML/CFT. Following recommendations by the National Task Force on Money Laundering, an omnibus Bill was produced as opposed to the adoption of one single AML/CFT (Model Law) which had been proposed by the UNODC.

Mr. President, comments on the Bill have been received from the International Monetary Fund, ESAAMLG Secretariat, National Economic Conduct Inspectorate and Board of the Reserve Bank of Zimbabwe, as well as the Financial Intelligence Unit (FIU).

The following are the Highlights of the Bill:-

The Bill is divided into seven Chapters, of which Chapters 4 and 5 will be administered by the Minister of Justice, whereas the remaining Chapters will be administered by the Minister of Finance.  The five chapters that will be administered by the Minister of Finance are meant to strengthen the Bank Use and Promotion and Suppression of Money Laundering (BUPSML) Act in line with the identified deficiencies as well as to the recent changes to the FAFT Standards.  A major change that will be incorporated into the BUPSML Act is on the provisions pertaining to financing of terrorism.  These provisions were incorporated into the Money Laundering and Proceeds of Crime Bill in order and Proceeds of Crime Bill in order to come up with consolidated AML/CFT law, currently the AML/CFT law.  Currently, the AML/CFT legal framework fragmented since there are two main relevant laws, namely the BUPSML Act and the Serious Offences Act.  In addition, the

Suppression of Foreign and International Terrorism (SFIT) Act [Chapter 11:21] which was enacted in 2007 but brought into force in June 2011 did not have measures to combat terrorism financing, hence the need to address this gap.  However, the SFIT Act will remain in place as it is meant to comply with Zimbabwe‟s obligations under various African Union Instruments on suppression of terrorist activities.

  1. Provision aimed at strengthening the BUPSML Act cover the following gaps identified through the Mutual Evaluation Report of


  1. Carrying out ongoing Customer Due Diligence (CDD).
  2. Enhanced CDD measures for hire risk customers.
  3. Identification of the ultimate beneficial owner on whose behalf a transaction is being conducted.
  4. Prohibiting financial institutions from allowing a customer to open an anonymous account or to open an account using a fictitious name.
  5. Shareholders and directors of financial institutions to pass a „fit and proper‟ test and removal of those who subsequently cease to meet the test.
  6. The Bill provides for the establishment of a Recovered Assets Fund, wherein proceeds from AML/CFT forfeited or confiscated property will be receipted. This addresses one of the major deficiencies which were identified through the

ESAAMLG Peer Review System.

  1. Other issues covered include the requirement for all AML/CFT reporting entities to have proper internal controls, record keeping, training of staff, appointment of a Compliance Officer on AML/CFT matters, and obligations to file Suspicious Transaction Reports (STRs).
  2. In terms of the Bill, dealers in precious metals and minerals such as diamonds are now designated entities for AML/CFT purposes. Previously, they were not covered in the BUPSML


Chapter 4 and 5 of the Bill

  1. These chapters relate to criminal sanctioning on matters relating to money laundering and terrorism financing. These chapters will replace provisions of the current Serious offenses Act.  New provisions creating an Asset Forfeiture Fund were included in the Bill.
  2. The Bill will explicitly cover as predicate offenses for money laundering, offenses committed in other countries which would constitute predicate offenses in Zimbabwe had they been committed in the country. In addition, the Bill Provides detailed mechanisms and procedures for freezing and confiscation of proceeds of crime.  It also makes provisions for civil forfeiture.

Urgency of passing the Bill into law

  1. It is critical that Zimbabwe passes the Money Laundering and

Proceeds of Crime Bill into Law before the 20th June 2013, a deadline set by FATF at its plenary meeting held in Oslo on 17 June 2013.  The implications of Zimbabwe not passing this Bill on or before the set deadlines are far reaching.  The country will be down-graded from its current FATF classification of „grey list”, which consists of countries where serious AML/CFT deficiencies have been identified but who have given a high level political commitment to address the deficiencies and are in fact addressing their deficiencies to a „black list‟.  The black list is also known in FATF terms as the „Public Statement‟.

  1. The FATF blacklist, (which currently consists of only two countries namely Iran and the DPRK), is for countries that have refused to cooperate to address their AML/CFT deficiencies and are therefore considered a serious risk to the world‟s financial system. The consequence of being escalated to the FATF „Public Statement” or uncooperative countries is that FATF member countries (who include Zimbabwe‟s major trading partners such as

South Africa, China and almost all Western countries) will instruct financial institutions in their jurisdictions to review and restrict dealings with Zimbabwean financial institutions.

  1. In most cases, this includes the refusal to extend correspondent banking services to Zimbabwean financial institutions, a development that will make it very difficult for Zimbabwean financial institutions, businesses and even the state, to make or receive international payments. To this end, it can be concluded that the FATF sanctions will make it difficult to allow inward or outward movement of capital from Zimbabwe, thus rendering the country a closed economy.


  1. President, I humbly submit this Bill for consideration by this august Senate.

SENATOR CHITAKA: Thank you Mr. President.  Firstly, I

would like to commend the Minister for bringing this Bill to this august Senate.  What I have picked is, first, if we do not pass this Bill, the country will be inviting sanctions on itself.  I must underline the word sanctions because we have some of our colleagues who always cry foul when we invite sanctions on ourselves.  This is an opportunity for us as a country to avoid inviting sanctions on ourselves so that in future we do not cry and blame sanctions that we impose on ourselves when we are the ones who would have invited them.

The second point is that this Bill is very welcome, especially in view of the fact that Zimbabwe was becoming a haven of some deposit dictators and dubious business persons who are fugitives in some countries.  We need to use this Bill to clean up such dubious characters so that they do not soil our financial landscape as well as keep this country free from terrorism.  Before I sit down, I want to pose a question to the Minister for his clarification. Minster does this Bill address the issue of those persons, especially civil servants and politicians who appear to live well in excess of their legitimate means?  Can such unaccounted for dubious wealth be classified as suspicious and appropriate action taken in terms of this Bill?  I thank you.

SENATOR CHIEF CHARUMBIRA:  Thank you Mr. President.

I rise to support this Bill because I do understand where it is coming from and the consequences of us not expeditiously passing this Bill.  There are meetings currently taking place internationally where I am aware that each country has to present its papers to show that they in fact have passed this Bill.  Without taking this debate too far and in the spirit of passing a Bill that will obviously be passed; this is a good Bill.  It is combating money laundering and also controlling the financing of


The rebels we have on the continent, for example in Africa, DRC,

Somalia, Darfur, everywhere, we always wonder who is financing them.  They are all financed through mechanisms that are being controlled by this Bill.  We are only doing the best for Africa but we are coming up with measures to be sure that those financing illegal activities or wars on the continent are not closing those gaps and those loopholes.  I am aware that internationally, every country has to sign this, otherwise as Hon. Chitaka is saying, you are put on sanctions are put on sanctions and

these sanctions are a bit different from the Land Reform sanctions.  These are sanctions that come for not complying with what is internationally acceptable.  So I commend the senators to support this Bill, thank you.

*SENATOR CHIEF CHITSUNGA: Thank you Mr. President

Sir.  I want to add my voice in supporting the Bill. It is a good piece of legislation which is helpful to our country and it helps us to sink with the global practices for we benefit from such relationships.

What I did not appreciate or satisfied with is that our Government should do things timeously and not wait for last minute so that we do not have guns pointed on our heads because we only have seen this Bill this afternoon.  We did not have enough time to check what is contained in it.  That will not make us good leaders.  What is more important is that for the past two months, we did not have business in this Senate yet this Bill was there.  It should have been brought to this Senate in time rather than to wait for the last minute like this.  Someone was sitting on it. In future, this is a national issue which is important for our nation. We are passing it but may accept things that we will cry foul on in future.  I thank you.

SENATOR MARAVA:  Thank you Mr. President, I also rise to

support this Bill, which I believe is very important.  I am especially touched by Part II of Chapter Two of the Bill under which Zimbabwe is reeling under.  The problems that are facing Zimbabwe right now especially of cash, we are using currencies that do not belong to us; that problem is solved under Part II of Chapter Two which includes monetary instruments such as cheques, travellers‟ cheques, promissory notes, money orders and other negotiable instruments.  All that is dealt with in that section, I think that is a solution to our Zimbabwean problem right now where we are using other peoples‟ currencies. Thank you.


OFFICE (MR. TIMBA):  Thank you Mr. President, let me start by thanking senators for supporting the Bill.  Allow me Mr. President to respond to some questions that have been raised by some senators.  Let me start with Senator Chitaka and say that the Bill does enhance “the know your customer requirements”, which you are aware has been implemented by various banks.  Therefore, this will allow a situation where banks are able to monitor any suspicious transactions by any individual whether they are politicians or non- politicians or business people.

I want to apologise for the delays in the Bill coming to the Senate, Mr. President, but allow me to say that there was considerable debate on this Bill in Cabinet and we only secured Cabinet Approval for this Bill on the 18th of June, thank you.  I now move that the Bill be read a second time.

Motion put and agreed to.

Bill read a second time.

Committee Stage: With leave; forthwith.



(H.B.4, 2013)

Senate in Committee.

THE CHAIRMAN:  You will agree with me hon. Senators that

this is a bulky Bill.  So I will try and lump the Clauses.

Clauses 1 to 110 put and agreed.

First and Second Schedules put and agreed to.

Senate resumed.

Bill reported without amendments.

House resumed.

Bill reported without amendments.

Third reading: With leave; forthwith.





OFFICE (MR. TIMBA): I move that the Bill be now read the third time.

Motion put and agreed to.

Bill read the third time.


MINISTER’S OFFICE (MR. TIMBA), the Senate adjourned at

Twenty Five Minutes to Four o’clock p.m. until Tuesday, 25th of June, 2013.





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