Paul Nyakazeya
12 November 2009
Harare — ZANU PF this week stepped up its efforts to block in the House of Assembly the Reserve Bank of Zimbabwe Amendment Bill which seeks to limit the powers of the central bank governor.
The battle over the Bill reflects the broad power struggle between Zanu PF and the main MDC wing in the inclusive government. The infighting is mainly reflected in the war of attrition between Finance minister Tendai Biti and Reserve Bank governor Gideon Gono.
Biti introduced the Bill in the Lower House on Tuesday outlining its main purposes as including the need to refocus the bank to core functions, especially financial-sector supervision and payment system.
Biti said he was introducing the Bill after extensive consultations with stakeholders including Sadc, the World Bank, IMF, Law Society of Zimbabwe and the bank itself. He said the Bill, which borrowed from legislation from Uganda, Georgia and South Africa, among other countries, was a "progeny of extensive work" by cabinet and the cabinet committee on legislation chaired by Justice minister Patrick Chinamasa.
The Bill, Biti said, was "motivated by national interest and not any personal conflicts or subjective idiosyncrasies".
However, Zanu PF MPs this week escalated their lobbying to block the Bill, claiming it was motivated by self-serving "personal agendas". They said the Bill was designed to weaken Gono while giving "too much power" to Biti himself.
Warning shots were fired at Biti in the House by Zanu PF MP for Mount Darwin East Betty Chikava who tried to disrupt the Bill's presentation. Chikava demanded the Bill "should be delayed in order to look into the welfare of members" before she was overruled by Speaker of Parliament Lovemore Moyo to allow Biti to proceed.
Zanu PF MP Paul Mangwana, who sources say is spearheading opposition to the Bill, said on Tuesday Biti was trying to "settle personal scores" with Gono. Mangwana said this to journalists at the Quill Club after Biti's presentation in parliament.
MDC MP for Makoni West Webber Chinyadza said at the Quill Club meeting the Bill was needed to clip Gono's wings.
In the meantime, Zanu PF's parliamentary caucus has been intensifying its mobilisation campaign to block the Bill which will be further debated on Tuesday next week. This has set the stage for a major showdown in the House of Assembly.
Zanu PF and the MDC are almost balanced in representation in the Lower House, but Zanu PF has a majority in senate to block the Bill.
Biti justified his Bill saying he wanted to restore public confidence in the central bank which damaged the economy through quasi-fiscal activities.
"The RBZ has for the past four years become a major economic player through quasi-fiscal activities. The bank easily overtook Treasury as the major fiscal player," Biti said. "Some activities financed by the bank included election-related expenses, transfers to parastatals, subsidised direct lending, below-cost provision of equipment and fertilisers to farmers and allocation of foreign currency at subsidised exchange rates. For all intents and purposes the bank became the government while the government became an onlooker."
Biti said quasi-fiscal activities fuelled hyperinflation and ruined the economy. He said while Gono justified the quasi-fiscal activities by citing extraordinary circumstances which needed extraordinary interventions and measures, there was a misinterpretation of the law to justify these actions.
Biti said although Gono was acting under instructions from his superiors, his activities could not be justified under the law.
Biti said it was important to pass his sweeping amendments to the law.
However, information obtained by the Zimbabwe Independent shows that Zanu PF MPs are plotting to block the Bill in defence to Gono. The MPs say the Bill is "draconian" and is "personalised" and they are also fighting to stop Biti from becoming too powerful. Running meetings are being held to block the Bill either in the House of Assembly or senate.
Mangwana, the Chivi central MP who is and also co-chairman of the constitution-making process, said on Tuesday at the Quill Club the Bill should be stopped or amended to avoid giving too much power to Biti.
Mangwana, who admitted Gono had a lot of power which he sometimes abused, said "the best way to extinguish a fire is with water not paraffin.
"Two wrongs cannot make a right. This Bill will give too much power to Biti. It is wrong for one person to have so much power, more so if it does not have checks and balances. I know because I once had so much power. Power is sweet and can be abused. Two wrongs do not make a right," Mangwana said.
Mangwana said the problem was that the Bill was specifically targeted at Gono. "We cannot make laws to deal with personal differences. Imagine the minister approving everything that the governor and the Reserve Bank want to embark on including a speech," he said.
Chinyadza said the Bill was necessary to dilute Gono's powers.
"Gono should act within the parametres of what a normal government should do. We cannot have a situation where one person incurs arrears that run into billions which cannot be accounted for. It is the people of Zimbabwe who will pay for these loans that they do not even know who benefited from them," Chinyadza said.
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