Mujuru files bond notes lawsuit

HARARE - Zimbabwe People First (ZPF) leader Joice Mujuru has filed a lawsuit challenging President Robert Mugabe over his government’s decision to introduce bond notes.

Mujuru, though her lawyer Gift Nyandoro of Hamunakwadi and Nyandoro Law Chambers, is seeking an order declaring the introduction of bond notes as unconstitutional, null and void.

In the application, which comes amid public’s massive resistance of the bond notes, Mujuru cited Mugabe, Finance minister Patrick Chinamasa, Reserve Bank of Zimbabwe (RBZ) and its governor John Mangudya and Attorney-General Prince Machaya as respondents.

Mujuru yesterday sought leave to apply to the Constitutional Court in terms of the set out rules and also attached a draft application.

This comes after the Constitutional Court set out specific rules governing its operations in June this year.

The rules require only serious and befitting constitutional issues to be brought before it.

They further allow for proper screening of matters that deserve a direct approach to the Constitutional Court.

Mujuru said she intends to make her application in terms of Section 85 (1) of the Constitution.

She argued that bond notes are not provided for under the RBZ Act, adding that despite the bond notes being portrayed as having the same value with the US dollar, “they will obviously depreciate in value”.

“Further, a bond note cannot be the equivalent of any of the foreign currencies it will operate side-by-side with. Accordingly, the mandatory exchange of any foreign currency with a bond note is a prima facie deprivation of property rights.

“Money is property and a bond note, not being money, can never substitute money. There is therefore an infringement of the right protected by Section 71(2) of the Constitution to the extent that holders of foreign currency will be forced to use or hold bond notes in the place of their money,” Mujuru said.

She said anxiety has been created among the people over the government’s announcement that it will introduce bond notes.

The ZPF leader said the introduction of bond notes is illegal, adding that in terms of the RBZ Act, there are only two forms of currencies that can be legal tender in Zimbabwe, which are the Zimbabwean dollar and foreign currencies.

“Whatever the respondents may seek to say about the bond note, it is clearly a disguised Zimbabwean dollar that is being introduced through the back door. The law does not allow a back door approach. If they wish to re-introduce the Zimbabwean dollar, they must follow the law and call it by name given its demonetisation,” she said.

She said banks have an obligation to pay back their clients their money in US dollars if they would have deposited in that form, adding that paying in bond notes will be tantamount to compulsory acquisition of citizens’ money.

“For all purposes, it appears to me that a bond note will appear as a fake US dollar. Why have they chosen the US dollar and not any other currency?” Mujuru queried.

She said the country must stick to the multi-currency system, instead of introducing bond notes.

Comments (10)

The bondnotes are the same as the bearer cheques. hatimade musatimanikidze majaira ZANU PF kuba mari dzevanhu

jonah chiwara - 3 August 2016

thanks amai.

kelly - 3 August 2016

bhora mberi

Makakachakacha - 3 August 2016

Mugabe chibva pachigaro iwe haudi kuzorora Seiko zimbavha

dida - 3 August 2016

kakatanai muyambutse mhomho yezimbabwe. nyika yave mugwenga.

prado mhere - 4 August 2016

guess work by the government on the economy does not work.. develop industry and seek proffessional advice. your government is too old and slow to tackle current global issues..

#tirikumberi - 4 August 2016

Mai Mujuru ! You say bond notes are note money . What is money in the first place ? You need to read what is on the notes that you call money . The bond notes will not lose value because they do not have value of their own except if the US$ loses value . The US$ being the bench mark , does not lose value . Its the other currencies that lose or gain against the US$. Its unfortunate that you may not understand this . Your lawyers are allowing you to challenge because that's how they get their pay .

Hayibo! - 4 August 2016

chimbuya ichi hachina musoro. chakabvuma mabearer nekuti chaidya nezanu. worst ever politician.

josphat mugadzaweta - 4 August 2016

Tirikumberi lied-while he clearly explained his case,but the so called bond notes are local,will never be accepted in all foreign lands&their real value depends on the ability of reserve bank to guarantee them on the strength of its own reserves of which this ability is doubtful bec of widespread weak economic activity nationwide-low industrial capacity

addmore gudo - 27 August 2016

Lets give credit where it is due. Mai Mujuru could be wrong on other things but she deserves our support on the issue of these bond notes. Whoever thinks the bond note will change the fortunes of Zimbabwe is seriously misguided. It is paper that is meant to stand in for money because the country has no capacity to have money the equivalent of the bond notes they want to print. Zimbabwe, when things were right, could produce money and trade freely with other nations. Now they have no reserves. They cant print real money any more. What they are doing is to give you "something" to hold in place of money. Its silly.

Tonde - 22 September 2016

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