adminFidelis Munyoro Chief Court Reporter
BANKS are making frantic efforts to process electronic bank cards required by over 300 000 civil servants and Government pensioners to spend their US dollar-denominated allowances in shops.
Government last month announced it would give all civil servants a cushioning allowance of US$75 for the next three months, and all Government pensioners a US$30 a month allowance, and asked the workers to open nostro bank accounts to access the funds. This has been done and the money is now being paid into the accounts, although civil servants cannot yet access the money.
The money cannot be withdrawn in physical notes, only through electronic cards that would be used in shops. There has been a delay because the banks need time to produce the 300 000 cards
However, the civil servants were worried last week after failing to access the foreign currency allowances and accused banks of refusing to issue the cards.
In an interview with The Herald yesterday, the banks dismissed the allegations saying they expected the production of the cards to be complete in a month’s time. The task was huge given the number of civil servants in the country.
Bankers Association of Zimbabwe secretary general Mr Ralph Watungwa said: “That is absolutely not true that banks have refused to co-operate with the Government. Banks are in the process of producing the required cards,” he said.
While the civil servants still cannot access the promised funds, Finance and Economic Development Minister Professor Mthuli Ncube stated categorically that banks would not be allowed to release hard currency to individuals.
During a post-Cabinet briefing last week, Prof Ncube said the arrangements for bank accounts to be created and shops to be able to receive payments were now in place, which allowed the start of the payment of the allowances.
He said the Treasury had since moved the money to banks and civil servants and the Government pensioners should be able to use the money very soon.
In addition, the minister said banks were supposed to come up with ways to open accounts. That had been done, and the second step was to make sure retailers are able to receive payments for goods and services, so that has been put in place,” said Prof Ncube.
The announcement by Prof Ncube came after some of the civil servants had received messages from the banks advising them about the US dollar deposits but could not access the money because the modalities had not yet been spelt out to both the banks and shops.
Online Reporter