Harare — ZIMBABWE'S civil society is preparing a legal challenge to test the legality of emergency powers used in the crackdown against cash hoarders, as a ZANU PF-dominated Parliamentary sub-committee seeks to pressure Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono to abandon his currency reforms.

As the Law Society of Zimbabwe (LSZ) declared that the seizure of cash was illegal and condemned the direct exercise of executive powers, the Zimbabwe Lawyers for Human Rights (ZLHR) cobbled up a legal challenge to the crackdown.

In Parliament, the Finance Committee agreed to seek a meeting with Gono, in a bid to lean on him to reverse the reforms. The committee also wants to hold "public hearings" on the matter, a member disclosed. The currency moves are believed to be jeopardising the commercial interests of many powerful figures.

Under the Presidential Powers (Temporary Measures) (Currency Revaluation) Regulations 2006, more than $10 trillion in the old currency has been seized as part of far-reaching reforms announced by the RBZ last week. But the LSZ, which groups the country's lawyers, said the cash seizures were illegal.

"While the regulations do provide for confiscation, against the issue of a currency stabilisation bond at a time when an individual 'deposits or brings for exchange' amounts in excess of those prescribed for individuals and traders, they do not provide for the confiscation of money," the LSZ said.

Individuals and corporates are now prohibited from carrying cash in excess of $100 million ($100 000 in new currency) and $5 billion ($5 million in new currency) respectively as the central bank authorities seek to punish suspected money launderers and individuals that have kept large amounts of cash outside the formal banking system.

But as authorities lay siege to the travelling public at roadblocks and exit points, The Financial Gazette can reveal that human rights lawyers are finalising a court challenge to the legislation being used to confiscate cash from individuals and businesses.

"We are indeed working on a High Court challenge on the legality of the law being used to enforce the new monetary policy regulations as it is felt that some of the things being done are unconstitutional or in violation of human rights," said Otto Saki, a human rights lawyer with ZLHR. "We are in fact finalising the court application and hope to lodge the papers with the courts tomorrow (Thursday) or soon," added Saki.

Jacob Mafume, coordinator of the Crisis in Zimbabwe Coalition (CZC), also expressed concern at the way authorities were enforcing the new regulations, confirming legal action was being instituted by the civic society.

"Apart from the legality of the laws the government and central bank are using, the action seeks also to challenge the setting up of the roadblocks, the use of unauthorised people, in this case, the militia, who do not have the authority to search people. It is believed that there is no reasonable justification in a democracy for the central bank and government to do what they are doing, seizing hard earned money from the citizens," said Mafume.

Lawyers are opposed to Section 5 (6) of the regulations which grants immunity from any civil suits arising from losses suffered by financial institutions resulting from the process of rounding off during the conversion, and section 12 which provides that no suit shall be brought against government, the RBZ or any government employee for anything "done in good faith" under the regulations.

"It is of the view that such blanket and generous protection does not only promote and cultivate police and state agent impunity, but also amounts to an ouster of the jurisdiction of the courts to decide whether the private individual's rights have not been infringed or violated by any person acting under these regulations," the LSZ said.