adminAuxilia Katongomara Chronicle Reporter
THE Parliamentary Portfolio Committee on Finance and Economic Development will next week conduct public hearings on the Reserve Bank of Zimbabwe Debt Assumption Bill. The central bank is burdened with a $1,35 billion debt incurred during the Zimbabwe dollar era. The government has taken over the central bank’s debt and is seeking up to $200m to capitalise the bank.
The committee chaired by Zanu-PF legislator for Mutoko North, Cde David Chapfika will travel to Harare, Gweru, Bulawayo and Mutare to hear the public’s view on the Bill.
In Bulawayo the meetings will be held on Tuesday at the Small City Hall and on Wednesday in Gweru at the Civic Centre.
Cde Chapfika told Chronicle that the hearings were open to all members of the public.
“The state is to assume the debt incurred by the RBZ so it is important that we consult on all stakeholders who are the tax payers. It’s a public meeting and captains of industry, businesspeople, non-governmental organisations and the general public are welcome,” said Cde Chapfika.
The Debt Assumption Bill seeks to provide for the settlement of certain liabilities incurred by the Reserve Bank of Zimbabwe before December 31, 2008.
“Government is taking over debts incurred by the RBZ, arising mainly from its quasi-fiscal operations during the Zimbabwe dollar era. By assuming this debt, in essence, government is offloading the burden from the RBZ onto the tax-payer,” reads a statement by the parliamentary committee on public hearings.
Earlier this year Cabinet approved the takeover of the debt, a development expected to pave way for the smooth recapitalisation of the bank.
The takeover also seeks to provide for settlement of certain liabilities incurred by the bank.
The Bill however does not cover any liability of the Reserve Bank arising from its employment related obligations.
The Bill also states that the Act will be repealed once the debt has been settled.
“When the Minister is satisfied that all claims arising out of prior debts, specified in the Schedule, have been settled in accordance with this Act, the President, acting on the advice of the Minister, shall, by notice in the Gazette, repeal this Act,” reads the Bill.
The public hearings are set to map the way forward on how the government can raise the $1,35 billion.
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