RENOWNED lawyer, Thabani Mpofu has poked holes on the legal status of the country's latest currency, Zimbabwe Gold (ZiG), arguing that legislation supporting it has expired.
The ZiG was launched in April 2024 and became the nation's sixth attempt at a stable currency in 15 years. It was introduced at a rate of 13.6 ZiG per United States dollar and has since lost almost 80% of its value on the black market.
Mpofu, who is famous for representing former Citizens' Coalition for Change (CCC) leader Nelson Chamisa in the historic court challenge over 2018 disputed election results, said ZiG is nolonger legal tender.
"Unless I missed the law when it was promulgated, the ZIG is no longer currency. The ZIG was operationalised by the promulgation of the Presidential Powers (Temporary Measures) (Amendment of Reserve Bank of Zimbabwe Act and Issue of Zimbabwe Gold Notes and Coins) Regulations, 2024," said Mpofu.
By law, a statutory instrument promulgated in terms of the Presidential Powers Act lapses at the end of six months unless prior to its lapse, the instrument is validated by primary legislation.
"In this case, the six (6) months would have lapsed on the 4th of October 2024. This means that by the end of that day, the ZIG ceased to be currency.
"It is not possible for the statutory instrument once it has lapsed to be validated by legislation.
"Further, the statutory instrument having lapsed no further regulations identical to the lapsed ones can be promulgated within six (6) months of such lapse. This means that no statutory Instrument extending the life of ZIG can be issued in terms of the Presidential Powers Act," the prominent lawyer argued.
Mpofu reiterated Zimbabwe was in an unenviable situation that has to be remedied urgently.
"For these reasons, the ZIG is no longer legal tender. The consequences are immense. I think we have a big problem on our hands. (I sincerely hope for the life of me that the authorities did the needful. If they didn't, this needs to be fixed by the only lawful way available)," he said.
