Mujuru sues gvt over bond notes

HARARE - Former Vice President Joice Mujuru is declaring war against the government’s plans to introduce bond notes in its desperate bid to mitigate the country’s worsening cash shortages, with the Zimbabwe People First (ZPF) leader set to back her vocal opposition to the “phantom currency” with court action this week.

The test case comes as Zimbabwe’s economy, which used to be the second biggest within Sadc, continues to bleed at an alarming rate, with the Zanu PF government reeling on multiple fronts, including failing to pay civil servants and having to deal with an increasingly restless populace.

Well-placed ZPF sources told the Daily News at the weekend that Mujuru had decided to “take the bull by its horns” and challenge the imminent introduction of the much criticised bond notes in the High Court, as her first step towards seeing to it that they were “wholly rejected” by long-suffering Zimbabweans.

“The court application is likely to be filed on Monday (today), after the party’s top leadership agreed that there is need to stand up and fight on the side of the people as it is clear that Zimbabweans were not consulted on this one.

“It is also very clear that the introduction of the bond notes will certainly worsen the plight of already struggling Zimbabweans,” one of the sources privy to the pending court action said.

Contacted for an official comment yesterday, Mujuru’s spokesperson Gift Nyandoro would neither deny nor confirm the development, choosing to say “we are considering many options to bring Mugabe’s government to account and we will let the nation know when we take any action”.

But the ZPF insider who spoke to the Daily News insisted that all was set for the High Court challenge, which follows another recent lawsuit by Mujuru that takes issue with the government’s recent ill-advised ban on the importation of basic consumer goods.

“The (ZPF) legal team has already completed doing the paperwork and by the end of the day Monday it should have been filed, although I am not aware if it is in the form of an urgent chamber application or normal lawsuit because I am not conversant with legal issues,” the ZPF insider said.

The development comes as President Robert Mugabe’s stone-broke government is planning to introduce the controversial bond notes which have sent jitters among ordinary Zimbabweans who fear that this could be a sneaky attempt to bring back the Zimbabwe dollar via the back door.

According to the Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya, bond notes will be introduced at the beginning of October this year, to mitigate the severe cash shortages that the country is experiencing.

Giving Zimbabweans a peek view into her impending lawsuit, Mujuru told ZPF supporters in Bindura on Saturday that the bond notes would further impoverish ordinary Zimbabweans.

“International lending institutions no longer want to give Zanu PF money and now the question is you are printing bond notes in Germany, do you have anything to back that?

“You are saying you have 200 million American dollars, but have you consulted with Americans for permission to do that because you are using their currency to back your papers?” Mujuru asked.

“It’s illegal. Please mark my words, it is illegal. You will lose all your belongings for the newsprint that they want to give you as money,” she added derisively.

Opposition leader Morgan Tsvangirai’s MDC has also warned that it will roll out mass protests over the bond notes, which it says are an attempt by Zanu PF to cover up the spiriting of the greenback from the country by ruling party bigwigs.

At the height of Zimbabwe’s record hyper-inflation in 2008, the government introduced bearer cheques which wiped off people’s savings and impoverished many Zimbabweans, including pensioners.

Mujuru last week filed another lawsuit against the government challenging the ban on the importation of basic consumer goods, mostly from South Africa.

This comes as it emerged last week that South Africa is seething over the ban, which Pretoria says is unfair and transgresses Sadc’s regional trade protocols.

In her lawsuit, Mujuru lists Mugabe as the first respondent and argues that the imports ban is in fact escalating poverty levels among ordinary Zimbabweans.

Mujuru described the instrument as “the most insensitive piece of legislation ever enacted in independent Zimbabwe and argued that by requiring a permit for the importation of basic goods, the government had to all intents and purposes banned the importation of those goods by the poor, as they could neither afford the permits nor manage to access the acquiring process.

Under  Statutory Instrument 64 of 2016, the government banned the importation of coffee creamers, Camphor creams, white petroleum jellies, body creams, baked beans, potato crisps, cereals, bottled water, mayonnaise, salad cream, peanut butter, jam, maheu, canned fruits and vegetables, pizza bases, yoghurts, flavoured milk, dairy juice blends, ice-creams, cultured milk and cheese, among other products.

Mujuru’s decision to challenge Mugabe’s disastrous policies such as the introduction of bond notes and the banning of the importation of basic consumer goods, comes as the nonagenarian is going through turbulent times.

The government is struggling to raise money to pay its huge civil service as revenues dip on the back of company closures, job losses and reduced economic activity.

Zimbabwe has recently experienced riots and protests as the anger of citizens has boiled over. And analysts predict that things are likely to get worse when the bond notes are introduced in October.

Comments (17)

Lets Rise and say NO to this mess, This government is a failure and has failed us in many ways. OUR hard earned ( $$$$) money has been abducted and is locked up in banks. 2018 is near and they want to use it (are already using it) against us in their violent campaigns. NO more fake money for US. Lets rise and mass stay away under HASH Tag #OurMoney #MyMoney

#MyMoney back - 1 August 2016

#OurMoneyback, Campaigner: SONS Of the SOIL -Mwana wevhu. Lets go for it !!! Ndatendeukawo.

truth - 1 August 2016

Vana #truth, hakusi kuda kutinzwa mukanwa, suspective sudden U-Turn. Can´t be trusted.

Reader - 1 August 2016

Pamberi ne #OurMoneyBack, !!!!!!!!!!!!!!!!!!!!!!!!!!!

Vhiri-ngaaa - 1 August 2016

There is no possibility of wealth creation in this country without a national currency. We do not have the US$ because everyone wants in the world wants it. You cannot grow the economy through fractional reserve lending. Mujuru and her white handlers need to be stopped' She must have been a mercenary during the war of liberation.

ADF - 1 August 2016

mai mujuru must respect govt interventions,this is meant to boost exports and nip externalisation in the bud,as a seasoned politician ,joice should know that this is no time for grandstanding and score cheap points,governer mangundya is working overtime to bring stability to the markets,however as prof moyo once remarked that joice has not shown capacity to run even her own chicken products,this court thing will fail and only serve to expose her shortcomings,bond notes are needed now,no responsible govt can fold its hands and do nothing ,by introducing bond notes govt has shown leadership and resolve to solve the cash shortages

truth - 1 August 2016

Guess who will be able to exchange 1 Bond for 1 US dollar, Sekuru, Chombo, Gono and Kasukuwere. The rest of us will be milked of everything again, yes again while Kasukuwere builds 10 more mansions, Chiyangwa uses the Bond tissue paper to complete his annexation of Harare while our men in uniform like the rest of us languish in poverty. Perhaps one major benefit of bond notes will be more and more foreign trips for Mugabe and staff. Perhaps all Zimbabweans should say with one voice NO MORE!

Viva Unidade - 1 August 2016

Am adding my voice, NO more to daylight robbery by these thugs. Pamberi ne #OurMoneyBack.

victoria - 1 August 2016

I have supported bond notes before ,fightiing in one corner wth Truth,but for now I have lost faith in the pple running this show.I seriously doubt their capacity to manage these bondnotes.The workers will be impoverished again,second Gono coming.1st they must deal wth CORRUPTION, then put money in clean hands.President Mugabe and his cabinet stop flying willynily .that money is huge.Can anyone tell us whow much he spent on trips since 2008 to now?As long as they fly out to holidays ,AU,SADC,UN,soforth,then the money is there for the workers,no need for bondnotes.

viola gwena - 2 August 2016

If my memory serves me well , sometime in 2003, the government introduced what where known as agro cheques. This agro cheques were said to be meant only for farmers. Later on they were transformed in a full flegged currency, and the politically connected became rich overnight , as they had access to the new agro checks which were quickly exchanged for US$ before they became worth less. The ordinary man was left with the worth.less cheques when the rich had converted the cheques into US$ and became overnight millionaires. We still remember this and do not try to cheat us this time. We know some people are already warming up to becoming instant millionaires with the bond notes.

Viona Ngwena - 2 August 2016

#OUR MONEY#OUR ZIMBABWE Say no to zanupf theives They want again to drive ambulance full of bond note again to Mozambique and araund boarders to robb people again in exchange wit us$ Thy rig election but they can not rig economy Now people u should be very carefull they want to steal the little we have our $us and rand &give you toillet tissues 2 hell wit you bond notes He must pay for his evil deeds #Go Mugabe

diehard - 2 August 2016

Mai Mujuru is demonstrating a lot of ignorance by saying we need permission from America to use the US$ . We are only using the US$ that we have earned and need no permission to use it . You do not understand such simple maters and you want to rule this country . OH ! No wonder why you had to kneel to the USA ambassador to serve him tea . You are too dumb to rule this country . Give us a break with your ignorance . You are better when you remain quiet because no one will know how shallow minded you are .

Hayibo ! - 2 August 2016

In 2008, a young lady was intercepted by cops carrying new bearer cheques that were yet to be introduced by reserve bank on the market.Police thot they were zambian currency,not knowing ,Gono was goi g release the same in a week .The girl then revealed she got them from one Kadzura who was close to Gono.Johnathan kadzura was in Zanupf that time.These pple cannot run this bondnote show.Crooks.The notes wth the girl was worth US$10 000.The boot was full,couldnt close properly.

viola gwena - 2 August 2016

BOND (noun) - physical restraint used to hold someone or something prisoner, especially ropes or chains. Synonyms - chains, fetters, shackles, manacles, irons, restraints. Figures!!!!! Bond notes - Zanu PF give us a break! We have heard that song before. Hatichada! Tic Toc! Your days are numbered!

Daniel 5 - 2 August 2016

@Hayibo. U need help in economics foremost. U cant use another country's currency as your own without permission from the central bank of that country. Money in circulation has a value affected by demand for that money. If u increase the demand for money (by having extra pple use it-in this case Zimbos) without printing more; the value increases-which affects a country's ability to export own products (foreign exchange rates too high). The country experiences negative BOP-economy fails. Are u saying Zimbos have the right to run down their own economy and then proceed to ruin the American economy? How did u earn this money? Did u export anyt goods to get US$? Did u export any services? U using money u did not earn. Lets wise up.

US$ - 2 August 2016

Bond notes is a very noble idea,like the coins Bt the handlers are thieves.Will a yone send a known theif to deliver wages to workers?I dnt think so.1st wth Reserve bank issues of how bearer cheques colupsed.Bring in Auditors ,international auditors n audit Reserve bank.Coopers n??.

viola gwena - 2 August 2016

I think our main concern is that there is a great fear that the $200m in bond notes will be the 1st of many more printed notes to come - notes that are not backed by any USD facility. If we had not experienced the bearer cheque fiasco some years back, perhaps Zimbabweans may have considered giving these notes a chance. However, giving our recent experiences, we have every reason to be skeptical. For one thing, $200m is no where near enough to make a significant impact on the cash supply situation. I feel we are hacking away at the branches and leaves of our economic problems instead of laying the axe to the root (governance). Let the RBZ justify their bond note issue at the High Court.

Tipping Point - 2 August 2016

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