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NATIONAL ASSEMBLY VOTES 15 DECEMBER 2015 NO 26

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No. 26
 
 
PARLIAMENT
                            OF                           
 
ZIMBABWE
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VOTES AND PROCEEDINGS OF
THE NATIONAL ASSEMBLY
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THIRD SESSION – EIGHTH PARLIAMENT
 
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TUESDAY, 15TH DECEMBER 2015
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Quarter past two o’clock pm.

The Speaker in the Chair.

 

Prayers

 

 

Members Present

 

 

 

 

Printed by Order of the House

 

Absent with leave

 

  1. The Speaker: I have to inform the August House that on the 28th of November, 2015, I was notified by the Zimbabwe African National Union Patriotic Front (ZANU-PF) party that with effect from the 1st of December, 2015 Mr. Sylvester Robert Nguni ceased to be a Member of the ZANU-PF Party. Accordingly, section 129(1)(k) of the Constitution of Zimbabwe applies, it provides:

“That a seat of a Member of Parliament becomes vacant if the Member has ceased to

belong to the Political Party of which he or she was a member when elected to Parliament and the Political Party concerned, by written notice to the Speaker or the President of the Senate, as the case may be, has declared that the Member has ceased to belong to it”.

 

The necessary administrative measures will be taken to inform His Excellency, the President of the Republic of Zimbabwe and the Zimbabwe Electoral Commission (ZEC) of the existence of the vacancy in line with section 39(1) of the Electoral Act, [Chapter 2:13] as amended.

 

  1. The Speaker informed the House that a Catholic Service would be held on Wednesday, 16th December, 2015 at 1200 hours, in the Senate Chamber. All Catholic Members and non-Catholics were invited.

 

  1. The Minister of Finance and Economic Development moved: That provisions of Standing Orders Nos. 51, 62(2), 64(5), 32 and 139 regarding the automatic adjournment of the House at five minutes to seven o’clock p.m. and at twenty five minutes past one o’clock p.m. on a Friday, private Members’ motions taking precedence on Wednesdays after question time and that Question time shall be on Wednesdays, stages of bills and reporting period of the Parliamentary Legal Committee respectively, be suspended with effect from today and for the next series of sittings until business relating to Finance (N0.2) Bill (H.B. 18, 2015), Appropriation Supplementary Bill (H.B. 16, 2015) Appropriation (2016) Bill (H.B. 17, 2015) and the Banking Amendment Bill (H.B. 6, 2015) is disposed of.

 

Motion put and agreed to.

  1. The Minister of Finance and Economic Development sought leave of the House to withdraw the Supplementary Estimates of Expenditure for 2015 and the Appropriation Supplementary Bill (H.B. 16, 2015) and that it be substituted by the correct text.

 

Motion put and agreed to.

 

  1. Adjourned debate on motion to bring in Finance Bills – (Adjourned 26th November 2016The Vice President and Minister of Justice, Legal and Parliamentary Affairs)

 

[Time elapsed:]

 

Question again proposed: That leave be granted to bring in Bills to make                           further provisions for the revenues and Public Funds of Zimbabwe and to                         make provisions for matters connected therewith or incidental thereto. – The                             Minister of Finance and Economic Development.

 

And objection having been taken that there were present fewer than 70 members, the bells were rung for seven minutes and a quorum still being not present, the Speaker adjourned the House without question put at five minutes to nine o'clock p.m. pursuant to the provisions of Standing Order No.172.

 

 

 

 

 

                                                                       Advocate J.F. Mudenda

Speaker.

 

Note-The following members were present when the House adjourned-

 

Hon Chitindi; Hon Matuke ; Hon Chinamasa; Hon Ndoro; Hon Maridadi; Hon Khupe; Hon Mpariwa; Hon Gonese; Hon Chitura; Hon Gabuza; Hon Misihairabwi – Mushonga; Hon Cross; Hon Majome; Hon Kachepa; Hon Kwaramba; Hon Muderedzwa; Hon Nyere; Hon Nleya; Hon Madondo; Hon chikomba; Hon Mandipaka; Hon chikuni; Hon Mudyiwa; Hon Matimba; Hon Mangami; Hon chamisa; Hon Mawere RNSM; Hon Mawere MDV; Hon Rungani; Hon Gumbo s; Hon Tshuma J; Hon Mpala; Hon Nhambu; Hon Khanye; Hon Chiwetu; Hon Chibagu; Hon Hungwa; Hon Kaundikiza; Hon Nkomo M.; Hon Dhewa; Hon Sibanda D;

 

___________________________________________________________________

 

WEDNESDAY, 16TH DECEMBER, 2015

 

QUESTIONS FOR ORAL ANSWERS

 

  • QUESTIONS WITHOUT NOTICE

 

  • QUESTIONS WITH NOTICE

 

*1.     Hon. Maridadi: To ask the Minister of Finance and Economic Development how much money treasury has received ever since diamonds were discovered in Marange in terms of corporate tax and dividend.

[Transferred on 28th October 2015]

*2.       Hon. Nkomo Mail: To ask the Minister of Finance and Economic Development to inform the House when the Ministry will avail the funds for the completion of Lupane Provincial Hospital.

 

[Deferred from Wednesday 30th September 2015]

 

*3.       Hon. Chikuni: To ask the Minister of Finance and Economic Development when the Ministry will disburse the remaining 95% budget allocation to the ministry of Women Gender and Community Development to enable them to execute their mandate.

 

[Deferred from 30th September 2015]

 

*4.       Hon. Chirisa: To ask the Minister of Finance and Economic Development to explain how the Ministry intends to finance the US$ 300 982 000 total appropriation to the Ministry of Health and Child Care, in view of the fact that the Mid – term Fiscal Policy Review indicated that government has disbursed only US11.8 Million while cooperating partners have contributed US$ 140.5 Million.

[Deferred from 14th October 2015]

 

*5.       Hon. Chirisa: To ask the Minister of Health and Child Care to explain the measures put in place to ensure that the improvements that have been made in the health sector through the Health Transition Fund are sustained given that the fund’s life span is coming to an end.

[Deferred from 14th October 2015]

 

*6.       Hon Kaundikiza: To ask the Minister of Health and Child Care to state the Ministry’s plans to ensure that all Rural Clinics have incubators and electricity to prevent newly born babies from dying needlessly.

 

[Deferred from 18th November 2015]

*7.       Hon Vutete: To ask the Minister of Health and Child Care to explain the plans in place to review the allowances of the Village Health Workers which are currently pegged at $14.00 per month and further state the measure the Ministry is putting in place to improve their working conditions.

 

[Deferred from 18th November 2015]

*8.       Hon. Chibaya: To ask the Vice President and Minister of Justice, Legal and Parliamentary Affairs what action will be taken by government in the event that a Minister disobeys a ruling of the courts, as is the case with Gweru councilors who were ordered to go back to their offices, by the High Court and the Minister of Local Government, Public Works and National Housing has defied this.

 

[Deferred from 28th October 2015]

 

*9.       Hon. Nduna: To ask the Minister of Sport and Recreation to state the current position of Zimbabwe National Team in terms of its suspension from FIFA World Cup Competitions; and further state:

 

  • The composition of the Zimbabwe Football Association Board and whether the leadership issue has been resolved.
  • How many and how much coaches are owed by the Zimbabwe Football Association;
  • The steps that the Ministry has taken to pay the dues owed by the Zimbabwe Football Association to coaches’ institutions, workers and former workers.

[Deferred from 28th October 2015]

 

*10.     Hon Mangami: To ask the Minister of Public Service Labour and Social Welfare to explain:

 

  • The process for the payment of pensions of people who retire from councils under the Local Authorities Pension Fund (LAPF);

 

  • Why Sibanda Killion, pensioner 56110000’s pension was terminated in January 2015, despite completing forms indicating he is still alive and entitled to it.

 

*11.     Hon Mangami: To ask the Minister of Small and Medium Enterprises and Cooperative Development to explain how the Ministry has assisted SMEs in       mining to grow their businesses.

 

 

*12.     Hon Chiwa: To ask the Minister of Local Government, Public Works and National Housing to state whether it is government policy that fifty (50) housing commonage stands are allocated to an individual for resale to Justin Chauke Cooperative and explain how the Government and Council are going to benefit from such an arrangement.

 

[Deferred from 18th November 2015]

 

*13.     Hon Hungwa: To ask the Minister of Local Government, Public Works and National Housing to explain when the Government Complex in Mutoko will be completed given that it has taken too long.

 

[Deferred from 18th November 2015]

 

*14      Hon Chirisa: To ask the Minister of Mines and Mining Development to;

  • Explain the criterion used in the invitation and selection of bidders;
  • Explain whether the mineral licensing regime is done transparently;
  • State whether there is a provision for parliamentary revocation or veto of an exclusive exploration award

 

*15.     Hon Chirisa: To ask the Minister of Mines and Mining Development to:

  • Explain how the Ministry advises the small scale and artisanal miners of their rights and responsibilities;
  • State whether there is an integrated network of mutual accountability among various operational agencies in the mining sector.

*16.     Hon Chirisa: To ask the Minister of Mines and Mining Development to:

  • State whether the law provides for the relocation of communities including upholding of rights of members in mining communities
  • State whether the law provides for environmental protection
  • State key mechanisms that are in place to solve with disputes.

*17.     Hon Chirisa: To ask the Minister of Mines and Mining Development to     inform the House whether or not the Ministry has decentralized Executive          Authority on    the extraction of mineral ore.

 

*18.     Hon Mangami: To ask the Minister of Sport, Arts and Culture to explain how        ZIFA councilors are chosen, who presides over their choosing and what their        term of office is.

________________________________________________________________________

      

NOTICE OF PRESENTATION OF BILL

 

The Minster of Defence: Bill to establish the Zimbabwe National Defence University and to provide for matters connected therewith or incidental thereto - Zimbabwe National Defence University (H.B. 12, 2015)

 

 

ORDERS OF THE DAY AND NOTICES OF MOTIONS

 

  1. Committee of Supply.

 

                   (Supplementary Estimates of Expenditure (2015) –

                                  

                   2,4,5,8,10,13,14,15,17,18,19,28,30 and 31

 

  1. Committee of Supply

 

(Main Estimates of Expenditure (2016) –

 

1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28,29,30,31 and 32

 

  1. Committee: To resume on the Banking Amendment Bill, (H.B. 6, 2015) – The Minister of Finance and Economic Development

 

(See Notice of Amendments)

 

  1. H Nduna

Hon. Mutezo

    

That the motion on the First Report of the Portfolio Committee on

     Transport and Infrastructure Development on the Causes of Road

     Carnage, which was superseded by the end of the Second Session of the

     Eighth Parliament, be restored on the Order Paper in terms of    Standing Order

     No. 152(1).

 

  1. Nduna

       Hon. Mudzuri

 

       That the motion on the Second Report of the Portfolio Committee on

       Transport and Infrastructure Development on the Operations of the

       National Railways of Zimbabwe, which was superseded by the end of  

       the Second Session of the Eighth Parliament, be restored on the Order  

           Paper in terms of Standing Order No. 152(1).

 

  1. Nduna

     Hon. Cross

 

     That the motion on Mineral Exploration which was superseded by the          end of the Second Session of the Eighth Parliament be restored on the        Order Paper in terms of Standing Order No. 152(1).

 

  1. Nduna

     Hon. Mapiki

 

That motion on the harmonisation of the Land Act and the Mines Act, which was superseded by the end of the Second Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order No. 152(1).

 

  1. H Majome

      Hon. Mubvumbi Mawere

 

    That the motion on the First Report of the Portfolio Committee on Justice,            Legal and Parliamentary Affairs, which was superseded by the end of       the Second Session of the Eighth Parliament be restored on the       Order   Paper in terms of Standing Order No. 152 (1).

 

  1. Tshuma D.

      Hon. Moyo L.

 

      That this House takes note of the Special Report of the Portfolio     Committee on Health and Child Care on Putting Tuberculosis on the           Political Agenda: The Role of Parliamentarians in Supporting            Tuberculosis Councils in Zimbabwe.

 

  1.             Hon Muderedzwa

         Hon. Chimanikire

 

            That this House takes note of the Second Report of the Portfolio    Committee on Defence, Home Affairs and Security Services on the   Attempted Jail Break from Chikurubi Maximum Prison. (S.C 22,           2015).

 

  1. Hon Shamu

      Hon Zindi     

 

                        That this House;

 

                        COGNISANT of the fact that the Head of State and Government and                                   Commander in Chief of the Zimbabwe Defence Forces, President Robert                             Gabriel Mugabe has played a pivotal role in the establishment,                                               development and welfare of the Zimbabwe Defence Forces;

 

                        AWARE of the fact that the Zimbabwe Security Services are a product of                             the armed liberation struggle;

 

                        ACKNOWLEDGING that the Zimbabwe Security Services are the                                     vanguard of the country’s peace, security and sovereignty;

 

                        NOTING that the Zimbabwe Security Services have maintained and                                    contributed to peace both within and beyond the country’s boarders                          through their peace keeping missions;

 

                        ALARMED by the lack of appreciation of the role the Zimbabwe Security              Services played and continue to play in the socio – political and economic                              development of Zimbabwe and Africa from some quarters of the local and                                   international community;

 

                        NOW THEREFORE, calls upon the heroic Zimbabwean people:

 

  • To recognise the iconic role and visionary leadership of the Commander in   Chief of the Zimbabwe Defence Forces, President Robert Gabriel Mugabe.
  • To complement the efforts of the Zimbabwe Security Services in the socio    – political and economic development of the country to improve the             welfare of the Nation.
  • To uphold the spirit of National Unity, peace and development.

 

           

  1. Hon Dr Mukanduri

Hon Toffa

 

                       That this House –

 

                        Takes note of the Report of the 37th Plenary Assembly of the SADC –                                                Parliamentary Forum, Zimbali Resort, Durban, 6 to 11 July 2015.

 

  1. H Muderedzwa

Hon. Mutseyami

That this House takes note of the Report of the Portfolio Committee on Defence, Home Affairs and Security Services Report on the Landmine Situation in Zimbabwe. (S.C. 2, 2015)

 

  1.          H Nduna

Hon. Muderedzwa

That the motion on War Shrines, which was superseded by the end of the Second Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order No. 152(1).

 

  1. Adjourned debate on motion in reply to the Presidential Speech.      (Adjourned 17th November, 2015 Rungani)

                                            

                                                                                [Time elapsed: 7 hours 27 minutes]

 

            Question proposed: That a respectful Address be presented to the                                       President of Zimbabwe as follows:-

 

            May it please you, your Excellency, the President:

 

                                    We, the Members of Parliament of Zimbabwe, desire to express our            loyalty     to Zimbabwe and beg leave to offer our respectful thanks for the speech, which you have been pleased to address to Parliament –          Hon. Mutomba.

 

  1. Adjourned debate on motion in reply to the State of the Nation Address    by His Excellency, the President of Zimbabwe (Adjourned 17th November, 2015 Rungani)

 

[Days elapsed: 14]

 

            Question proposed: That this House conveys its profound gratitude to          His Excellency, the President Cde R. G Mugabe for addressing a joint     sitting of Parliament on the State of Nation.

 

            Expresses its commitment to and support for the views contained in his         address; and that a respectful address be presented to His Excellency      the President, informing him of the sentiments of the House. – Hon.       Mhlanga N.J.

 

 

  1. Adjourned debate on motion on the First Report of the Portfolio Committee on Defence , Home Affairs and Security Services on the Immigration Department at the Forbes Border Post (S.C 20, 2015)   .(Reinstated 17th November, 2015 – The Minister of Finance and             Economic Development)

 

[Day elapsed: 5]

            Question proposed: That this House takes note of the First Report of          the Portfolio Committee on Defence , Home Affairs and Security            Services on the Immigration Department at the Forbes Border Posts                   (S.C 20, 2015) Hon. C.C Sibanda

 

  1. Adjourned debate on motion on alleged maladministration of Premier         Medical Aid Society and call for their prosecution (Adjourned 17th           November 2015 – Rungani )  

 

[Day elapsed: 5]

 

            Question proposed: That this House

 

            DISTURBED by the recent revelations disclosed by a forensic audit          conducted into the affairs of the Premier Medical Aid Society;

 

            ALARMED that many millions of subscribers’ funds have been used         to pay senior staff massive salaries and other benefits;

 

            WORRIED that this occurred at a time when the Society was failing to      pay service providers and other creditors on time;

 

            FURTHER WORRIED that the Society’s Members were unable inter        alia to access medical services, get treatment and purchase drugs;

 

            CONCERNED that among those affected were Civil Servants who            already suffer from the inability of the State to pay reasonable salaries    and other emoluments;

 

            NOW THEREFORE,             this House calls upon the Executive to;

 

  1. Immediately set in motion processes for the prosecution of all those who benefitted from this scandal;
  2. Take remedial action to recover the funds that were paid to those individuals who were unjustly enriched;
  3. Investigate the role of the Board of the Society that was in charge of the affairs of the Society at the time of this abuse of funds and if found culpable, that prosecution be extended to former Board Members ; and
  4. Review present remuneration policies of the Society and bring them in line with current Government policy. Cross

 

  1. Adjourned debate on motion on the First Report of the Portfolio Committee on Small and Medium Enterprises and Co-operatives            Development on the Role of Housing Co-operatives in the delivery of       National Housing in Zimbabwe. (S.C. 13, 2015). (Reinstated 19th    November 2015- Mangami)

 

[Day elapsed: 4]

 

            Question proposed: That this House takes note of the First Report of          the Portfolio Committee on Small and Medium Enterprises and Co-         operatives Development on the Role, Management, and Impact of              Housing Co-operatives on the delivery of National Housing in             Zimbabwe. (S.C. 13, 2015). – Hon. Mangami

 

  1. Adjourned debate on motion on the First Report of the Committee on Public Accounts on the examination of the Grain Marketing Board    (GMB)            Value for Money Audit Report. (S.C.1, 2015). (Adjourned 19th                       November 2015- Rungani)

 

[Day elapsed: 4]

 

            Question proposed: That this House takes note of the First Report of          the Portfolio Committee on Public Accounts on the examination of the    Grain Marketing Board (GMB) Value for Money Audit Report and                   Audited Accounts for the Financial years ended March 2011/ 2012,   2012/ 2013 and 2013/ 2014. (S.C.1, 2015). Hon. Mpariwa

 

  1. Adjourned debate on motion on the Report of the Pan African Parliament Session held in Midrand, South Africa, from 4 to 18 October 2015.(Adjourned 24th November 2015- Rungani)

 

[Day elapsed: 2]

 

      Question proposed: That this House takes note of the Report of     the       Pan African Parliament Session held in Midrand, South Africa,         from 4 to 18 October 201- Hon. Mnangagwa A..

 

  1. Adjourned debate on motion on the Report of the Parliament of Zimbabwe Delegation to the 9th Stop Cervical, Breast and Prostate     Cancer in Africa Conference.(Adjourned 21st October, 2015 – The      Minister of Environment, Water and Climate)

 

[Day elapsed: 9]

            Question proposed: That this House takes note of the Report of the            Parliament of Zimbabwe Delegation to the 9th Stop Cervical, Breast         and Prostate Cancer in Africa Conference, held from 19th to 21st July,               2015 in Nairobi, Kenya. Hon. Dr. Labode

 

  1. Adjourned debate on motion on the repeal of the Vagrancy Act (Adjourned   27th October, 2015 Rungani)

                                                                                        

 

[Day elapsed: 8]

 

            That this House-

 

            CONCERNED BY the increasing number of beggars, street kids, street   mothers, fathers and youths at road intersections and pavements   in         urban areas;

 

            DISTURBED by wanton abuse of alcohol and other intoxicants by the     younger generation against African values and norms.

 

            ALARMED by the increasing levels of prostitution in both urban   areas    and growth points around the country;

 

            CONCERNED by the government’s inertia in addressing such      abnormalities in society.

 

            CONSCIOUS that the government has a constitutional duty to look          after the poor and the weak and to uphold the norms of society;

 

            NOW THEREFORE calls upon the Executive to;

 

  1. Repeal such laws as the Vagrancy Act that are alien to safeguarding the     interests of the poor and the weak;
  2. Introduce laws that are amenable to upholding human rights and dignity of            the underprivileged;
  3. Effectively play a paternal role to such vulnerable groups in line with its     constitutional obligations;
  4. Engages the services of the abundant pool of social workers from the          institutions of higher learning in order to promote reformation and       rehabilitation of social misfits for the common good.- Muderedzwa

 

  1. Adjourned debate on motion on the call for reform of legislation governing mining in Zimbabwe (Adjourned on 22nd October 2015 – Matuke)

 

[Day elapsed: 9]

 

Question proposed: That this House,

 

COGNISANT of the prevailing economic challenges that the country is facing due, in part, to the debilitating economic sanctions and the lack of balance of payment support;

 

CONCERNED with the crippling de- industrialization and the prevailing low capacity utilization in the industrial sector which has severely dwindled Government revenue from taxes;

 

ACKNOWLEDGING the informalisation of the economy which has led to an astronomical growth of the informal sector;

 

CONVINCED that the pursuit of an upward trajectory of economic revival as envisaged in the ZIMASSET economic blueprint will include, in part, the formulation of strategies to tap into the informal sector;

 

RECOGNISING that artisanal mining, which involves over 500 000 people, is a significant generator of both rural and urban livelihoods which has the potential to alleviate poverty and a tool for sustainable development thus contributing to ZIMASSET;

 

AWARE that despite its obvious benefits, the formalization of artisanal mining is hindered by the absence of an enabling legislative framework, prohibitive levies charged by the Ministry of Mines, rural district councils, the Environmental Management Agency as well as inordinate delays in the issuance of licenses and inspections by surveyors.

 

ALSO AWARE that the formalization of the sector will enable artisanal miners to contribute towards the fiscus and will reduce incidences of diversion and smuggling of our precious mineral resources to neighbouring countries;

 

NOW THEREFORE calls upon the Executive to:

 

  • Repeal Section 3 of the Gold Trade Act which criminalises possession of gold and also imposes stiff penalties for possession and also repeal Section 365-368 of the Mines and Minerals Act which criminalises prospecting by artisanal miners.
  • Adapt to the ‘new normal’ and review the Mines and Minerals Act to include artisanal and small scale mining.
  • De-criminalise artisanal mining by creating objective, transparent and nondiscriminatory regulatory mechanisms which offer easy access to mining titles and legal production channels;
  • Create an enabling legislative framework which integrates the artisanal mining sector into the local community and encourages the investment of profits in other forms of economic activity and services. – Nduna

 

  1. Committee: To resume on the Adverse Report by the Parliamentary Legal Committee on Statutory Instrument No. 77 of 2015 (Presidential Powers) Application of [Chapter 8:14] to Premier Medical Aid Society Regulations, 2015 published in the Gazette during the month of July 2015. (Progress Reported 28th October 2015).

 

 

NOTICE OF AMENDMENTS

Banking Amendment Bill, 2015 (H B 6, 2015)

clause 2 (amendment of section 2 of cap. 24: 20)

 

By the Minister of Finance and Economic Development

 

Amendments to clause 2(a)

On page 4 of the Bill, delete the definition of “close relative” and substitute the following definition:

“ “close relative”, in relation to an individual, means any of the following¾

       (a)    the individual’s child, whether their relationship arises through blood or adoption;

       (b)    the individual’s step-child;

       (c)    where the individual is married, his or her spouse;“.

 

On page 2 of the Bill, in the definition of “credit information”, delete from paragraph (b) of that definition subparagraph (i) and substitute the following subparagraph:

 

                “(i)   the person’s establishment or incorporation, including the head office or principal place of business of the person; and”.

On page 3 of the Bill, in the definition of “credit information”, insert in paragraph (c) of that definition the following subparagraph after subparagraph (v):

 

              “(vi)   any pending prosecution for a criminal offence, or previous conviction for a criminal offence, and other information relevant to the person’s financial integrity;”.

 

On page 3 of the Bill, insert after line 9 before the definition of “credit reference bureau”, insert the following definitions:

 

““credit rating” means an opinion as to the creditworthiness of any person who takes on or may take on any debt, or who issues or proposes to issue any debt-like securities;

“credit rating agency” means an entity whose principal business is the issuance of credit ratings on Government and corporate debt issues with the object of evaluating the creditworthiness or ability and willingness of the debt issuer to make timely payments of principal and interest, and to assess the credit quality of, and assign credit ratings to, any debt and debt-like securities;”.

On page 3 of the Bill, in the definition of “financial institution”, delete subparagraph (j) in line 38 and substitute the following paragraphs:

      “(j)   the Reserve Bank; or

       (k)   the National Social Security Authority established by the National Social Security Authority Act [Chapter 17:04]; or

        (l)   the Sovereign Wealth Fund of Zimbabwe established by the Sovereign Wealth Fund of Zimbabwe Act [Chapter 22:04] (No. 7 of 2014)

      (m)   such other institution as may be prescribed;”.

 

On page 4 of the Bill, in the definition of “problem banking institution”, insert after the words “solvency is, or will be” the words “(in the opinion of the Registrar)”.

 

On page 4 of the Bill, insert after the definition of “problem banking institution” the following definition:

“ “special purpose vehicle” means (by whatever other name it is called, including a special purpose entity or special purpose company) a company or entity created by a banking institution or controlling company solely or primarily for one or any combination of the following purposes¾

       (a)    the owning or securitising of a particular set of loans, assets or other investments, and distributing the risk to investors;

       (b)    the marketing of financially engineered products;

       (c)    avoiding tax;

       (d)   as a vehicle for structuring financial transactions that can have a material effect on the banking institution or controlling company in such a way that they do not appear on the institution’s or company’s balance sheet;

       (e)    any specific or temporary purpose whatsoever;”.

 

Amendment to clause 2(b)

On page 4 of the Bill, delete from line 34 in the new paragraph (g) as inserted by clause 2 (b) the words “an accounting entity” and substitute “an entity”.

 

Amendments to clause 2(c)

On page 4 of the Bill, in paragraph (c), by the deletion from line 41 of the words “of the following subsection” and the substitution of the words “of the following subsections”.

 

On page 5 of the Bill, insert in line 30 in the paragraph (j) of the new subsection (4) of section 2 of the principal Act as inserted by clause 2 (c) the word “run” between the words “pension scheme” and “by the institution or company”.

 

On page 5 of the Bill, delete paragraph (i) of the new subsection (4) of section 2 of the principal Act as inserted by clause 2 (c) and substitute the following subparagraph:

 

                “(i)   does not represent (whether as a nominee or in a professional or other capacity) a shareholder of the institution or company; and”.

 

On page 5 of the Bill, by the insertion of the following subsection in section 2 of the principal Act:

 

“(5)  Whenever in this Act any notice or other thing is required to be “written” or to be done “in writing”, or the word “publish” or any of its derivatives is used in connection with a requirement or power of publication, such requirement shall be fulfilled by the sending of an electronic communication in accordance with conditions (including adequate conditions as to the recording, despatch and authentication of documents that are likely to be acceptable to a court as proof of the service thereof) agreed beforehand by the sender and the recipient of the communication.”.

CLAUSE 2 (AMENDMENT OF SECTION 2 OF CAP 24:20)

BY THE COMMITTEE OF FINANCE AND ECONOMIC DEVELOPMENT

On page 12 of the Bill delete the definition for “close relative” and substitute the following—

            ““close relative” in relation to any person means―

  • a spouse;
  • a child, step child, parent or step parent;
  • the spouse of any person mentioned in paragraph (b);”.

clause 4 (amendment of section 4 of cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 6 of the Bill, in subsection (4) of the new section 4B (“Exercise of functions by Registrar”) inserted by clause 4, delete the words “with the approval of the Board of the Reserve Bank” from lines 35 and 36 and substitute “with the approval of the Board of the Reserve Bank (or, in cases of urgency, by ratification by the Board afterwards of any directions given)”.

 

After the end of page 6 of the Bill, following subsection (5) of the new section 4B (“Exercise of functions by Registrar”) inserted by clause 4, insert the following subsection in the new section 4B:

“(6)  Subsections (2) and (5) do not apply in cases of urgency in which, in the opinion of the Registrar or the Governor, as the case may be, the interests of defence, public safety, public order, public morality or the general public interest is affected:

Provided that the Registrar or the Governor, as the case may be, shall make a written record of the reasons for the urgency and avail the same to any interested person.”.

 

On page 7 of the Bill, in subsection (1) of the new section 4C (“Adoption of prudential standards of bank supervision”) delete from line 2 the words “after consultation with” and substitute “on reasonable written notice to”.

 

On page 7 of the Bill, in the new section 4D (“Registrar and Reserve Bank to co-operate with other authorities”) delete from subsection (1) the introductory words between lines 11 to 14 and substitute:

“(1)  For the better exercise of their functions and in the interests of ensuring the efficient and co-ordinated regulation and development of the financial sector in Zimbabwe and the proper enforcement of the law, the Registrar and the Reserve Bank shall be furnished at his, her or its request with such information as he, she or it may require from—”.

 

On page 7 of the Bill, in the new section 4D (“Registrar and Reserve Bank to co-operate with other authorities”) delete paragraph (a) from subsection (1) and renumber the ensuing paragraphs (b) to (h) as paragraphs (a) to (g) accordingly.

 

On pages 7 to 8 of the Bill, delete the new sections 4E (“Financial Sector Oversight Council”) and 4F (“Financial Sector Stability Committee”).

 

clause 5 (amendment of section 8 of cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 9 of the Bill, by the deletion of paragraph (b) between lines 15 and 18, the subsequent paragraphs (c), (d) and (e) to be redenominated as paragraphs (b), (c) and (d) respectively:

 

On page 9 of the Bill, in paragraph (c) (iv), (now paragraph (b)(iv)) delete subparagraph (i) in lines 42 and 43 from the new paragraph (d1) and substitute the following subparagraph:

 

                          “(i)   are consistent with generally recognised standards of corporate governance, including those fixed or prescribed in terms of this Act; and”.

 

Deletion of clauses 6 and 7

By the Minister of Finance and Economic Development

 

On page 10 of the Bill, delete clauses 6 and 7 between and including lines 14 and 20, and renumber the subsequent clauses accordingly.

 

clause 8 (now clause 6) (amendment of section 14 of cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 10 of the Bill, delete paragraph (b) (lines 29-33) and substitute the following:

 

             ““(b)   in subsection (2)(b) by the insertion after “the banking institution” of “and the Deposit Protection Corporation””.

 

clause 9 (now clause 7) (new part inserted in cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 11 of the Bill, in subsection (1) (a) of the new section 15A (“Limitation on shareholding in banking institutions and controlling companies”) inserted by this clause, delete the words “ten per centum” in line 2 and substitute “twenty-five per centum”.

 

On page 11 of the Bill, in subsection (1) (b) of the new section 15A (“Limitation on shareholding in banking institutions and controlling companies”) inserted by this clause, delete subparagraphs (i) and (ii) and substitute the following subparagraphs:

 

                          “(i)   a financial institution; or

                          (ii)   a registered controlling company; or

                         (iii)   a body corporate approved in terms of section 15F(1)(b);”.

 

On page 11 of the Bill, in the new section 15A (“Limitation on shareholding in banking institutions and controlling companies”) delete from subsection (2) the introductory words between lines 14 to 17 and substitute:

 

“(2)  Upon written application to that effect having been made by the shareholder concerned, the Registrar may, by written notice to the shareholder and the banking institution or controlling company concerned, give permission for the shareholder to hold more shares in a banking institution or controlling company, if the Registrar is satisfied that— ”.

 

On page 12 of the Bill, in the new section 15A (“Limitation on shareholding in banking institutions and controlling companies”) delete subsection (7) on lines 7 to 8 and substitute:

 

“(7) This section shall not apply in respect of shares that are held temporarily (and in any event for not more than twelve months) by an underwriter pending their acquisition by other persons.”.

 

On page 14 of the Bill, in the new section 15D (“Effect of shareholding in contravention of this Part”) delete subsection (7) between lines 34 to 39 and substitute the following subsections:

 

“(7)  If a dividend is paid to or received by a person on any share that is held by him or her in contravention of section 15A or 15B, or on any share that has been allotted, issued or transferred to the person or registered in his or her name in contravention of section 15C(1), such dividend shall, if not returned by the person concerned , constitute a debt due to the banking institution or controlling company concerned, and shall at any time after it becomes due, be recoverable in a court of competent jurisdiction by proceedings in the name of the banking institution or controlling company.

(8)  Subject to section 73, a shareholder who has been required to divest himself or herself of any shares in terms of subsection (5) and who fails without just cause to comply with the requirement within the first seven days of the period of one hundred and eighty-one days referred to in paragraph (a) below, shall ¾

                 (a)   be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the shareholder remains in default, not exceeding a period of one hundred and eighty-one days; and      

                 (b)   if the shareholder continues to be in default after the period specified in paragraph (a), be guilty of an offence and liable on conviction to a fine not exceeding level ten or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.”.

 

On page 15 of the Bill, in the new section 15E (“Divestment of shares to prevent undue influence by shareholder”), delete subsection (3) between lines 7 and 12 and substitute the following subsection:

“(3)  Subject to section 73, a shareholder who has been required to divest himself or herself of any shares in terms of subsection (1) and who fails without just cause to comply with the requirement within the first seven days of the period of one hundred and eighty-one days referred to in paragraph (a) below, shall ¾

                 (a)   be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the shareholder remains in default, not exceeding a period of one hundred and eighty-one days; and

                 (b)   if the shareholder continues to be in default after the period specified in paragraph (a), be guilty of an offence and liable on conviction to a fine not exceeding level ten or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.”.

 

On page 15 of the Bill, in the new section 15F (“Restriction on right to control banking institution”), delete from subsection (1) paragraph (a) on line 15 and substitute the following paragraph:

               “(a)   a registered financial institution; or”.

On page 16 of the Bill, in the new section 15F (“Restriction on right to control banking institution”), insert the following subsections after subsection (5):

 

“(6)  Where the Registrar determines under subsection (5) that a shareholder is a person who exercises control over a banking institution in contravention of this section, such determination shall constitute a requirement by the Registrar that the shareholder divest himself or herself of the shares concerned in compliance with section 15D(1)(ii).

(7)  Subject to section 73, a shareholder who is required to divest himself or herself of any shares in terms of subsection (6) and who fails without just cause to comply with the requirement within the first seven days of the period of one hundred and eighty-one days referred to in paragraph (a) below, shall ¾

                 (a)   be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the shareholder remains in default, not exceeding a period of one hundred and eighty-one days; and

                 (b)   if the shareholder continues to be in default after the period specified in paragraph (a), be guilty of an offence and liable on conviction to a fine not exceeding level ten or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.”.

 

On page 16 of the Bill, in the new section 15G (“Registration of controlling companies”), delete from subsection (1) paragraph (b) between lines 14 and 19 substitute the following paragraph:

 

               “(b)   the names and details of the qualifications and experience of           the applicant’s directors and principal officers; and”.

 

On page 16 of the Bill, in the new section 15G (“Registration of controlling companies”), delete from subsection (2) the word “consult” in line 30 and substitute “notify”.

 

On page 16 of the Bill, in the new section 15G (“Registration of controlling companies”) (3), delete from paragraph (c) the words “and such of its other officers as may be prescribed” in lines 39 and 40.

 

On page 17 of the Bill, in the new section 15H (“Register of controlling companies”), insert in subsection (1) the following paragraph after paragraph (a) (the subsequent paragraphs (b), (c) and (d) to be redenominated as paragraphs (c), (d) and (e) respectively) between lines 14 and 19 substitute the following paragraph:

 

               “(b)   its registered office, that is to say, its address for service of notices, legal process and other official communications; and””.

 

On page 18 of the Bill, in the new section 15J (“Cancellation of registration of controlling company”), delete from subsection (2) the word “consult” in line 36 and substitute “notify”.

 

On page 19 of the Bill, in the new section 15J (“Cancellation of registration of controlling company”) (6), add the after concluding words “may give it for that purpose” on line 24 the words “and, with respect to any divestment of shares required by such relinquishment, the provisions of section 15D(1) and (6) shall apply as if the Registrar had given the company the requisite notices of divestment in terms of those provisions on the day of the cancellation”.

 

On page 19 of the Bill, in the new section 15J (“Cancellation of registration of controlling company”) insert the following subsection after subsection (6):

 

“(7)  Subject to section 73, a controlling company whose registration is cancelled in terms of this section and which fails, within the first seven days of the period of one hundred and eighty-one days referred to in paragraph (c) below ¾

                 (a)   to divest himself or herself of any shares in terms of subsection (6); or

                 (b)   without just cause, to comply with any direction of the Registrar given in terms of subsection (6);

shall ¾

                 (c)   be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the company remains in default, not exceeding a period of one hundred and eighty-one days; and      

                 (d)   if the company continues to be in default after the period specified in paragraph (c), be guilty of an offence and liable on conviction to¾

                           (i)   a fine not exceeding level ten; and

                          (ii)   a fine not exceeding level ten or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the company.”.

clause 10 (now clause 8) (amendment of section 16 cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 19 of the Bill, delete the words “corporate governance” in line 34 and substitute “corporate governance framework”.

 

clause 11 (now clause 9) (amendment of section 18 cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 20 of the Bill, in the new subsection (1e) inserted into section 18, delete the words “the person satisfies the Registrar that he or she” and substitute “the person satisfies the Registrar by a sworn declaration that he or she”.

 

On page 20 of the Bill, in the new subsection (1f) inserted into section 18, delete the words “If the chief financial officer of a banking institution” and substitute “If the chief financial officer or (upon the failure of the chief financial officer to do so within a reasonable time) any of the principal officers of a banking institution”.

 

On page 20 of the Bill, delete the new subsections (1g) and (1h) inserted into section 18 and substitute the following subsections:

 

“(1g)  No secrecy or confidentiality provision in any contract or law shall prevent a chief financial officer or any of the principal officers of a banking institution from furnishing to the Registrar the information referred to in subsection (1f), and no banking institution (or controlling company of such institution) shall dismiss or in any other way penalise the chief financial officer or any principal officer for furnishing such information.

(1h)  Subject to section 73, a banking institution or controlling company that¾

                 (a)   contravenes subsection (1a); or

                 (b)   fails, through its chief financial officer, to comply with subsection (1f); or

                 (c)   dismisses or in any other way penalises the chief financial officer or any principal officer for furnishing the information required under subsection (1f); or

shall ¾

                 (d)   be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution or company remains in default (which default shall, in the case of a contravention referred to in paragraph (c), be calculated from the date of the dismissal of or other penalty imposed upon the chief financial officer or principal officer, and be deemed to continue until such action is reversed), not exceeding a period of one hundred and eighty-one days:

                                Provided that the Registrar shall have power to waive the payment or refund the whole or part of any penalty prescribed under this paragraph if he or she is satisfied that the contravention was not wilful, or not due to the want of reasonable care;

                         and

                 (e)   if the institution or company continues to be in default after the period specified in paragraph (d), be guilty of an offence and liable on conviction to¾

                           (i)   a fine not exceeding level ten; and

                          (ii)   a fine not exceeding level ten or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution or company.”.

 

clause 13 (now clause 11) (amendment of section 20 cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 21 of the Bill, delete between lines 23 to 40 the new subsection (2) to be inserted into section 20 and substitute the following subsection:

 

“(2)  Every banking institution and controlling company shall, upon written notification to the Registrar of their names and other prescribed particulars, and with the approval of the Registrar (which approval shall not be withheld except upon positive evidence of the unfitness of the persons concerned to hold office) appoint in Zimbabwe—

                           (a)   a chief executive officer; and

                          (b)   a chief accounting officer; and

                           (c)   a compliance officer; and

                          (d)   an internal auditor; and

                           (e)   officers responsible for the following functions—

                                     (i)   risk management; and

                                    (ii)   lending and credit administration; and

                                   (iii)   internal controls; and

                                   (iv)   investments and asset or liability management, in the case of a banking institution which engages in these activities; and

                                    (v)   treasury and foreign exchange operations; and

                                   (vi)   trust and fiduciary operations, in the case of a banking institution which engages in these activities;

                                  and

                           (f)   such other officers as may be prescribed.”.

On page 21 of the Bill, in the new subsection (2a) to be inserted into section 20, delete from line 42 the words “shall be members of the board” and substitute “shall (despite anything to the contrary in the memorandum or articles of association of the banking institution or controlling company) be non-voting members of the board”.

 

On page 21 of the Bill, in the new subsection (2b) to be inserted into section 20, insert into paragraph (a) after the concluding words “the offices referred to in subsection (2)” the words “, except on a temporary or acting basis (and in that event for not more than six months continuously)”.

 

On page 22 of the Bill, in the new subsection (2b) to be inserted into section 20, insert into paragraph (b) after the concluding words “is a member” the words “(except on a temporary or acting basis)”.

 

On page 22 of the Bill, insert the following new subsection after the new subsection (2b) of section 20:

“(2c)  Until the Registrar signifies his or her approval in writing to the banking institution or controlling company of any of the appointments it wishes to make in terms of subsection (2), the appointee in question shall not be deemed to be employed, whether in terms of the Labour Act, any contract of employment or any other law, but if the Registrar delays by more than thirty days to make any response to a written notification of the proposed appointment by the institution or company, then it is deemed that the Registrar has approved the appointment in question.”.

 

NEW SECTION INSERTED IN CAP 24:20

BY THE COMMITTEE OF FINANCE AND ECONOMIC DEVELOPMENT

On page 20 of the Bill insert new clause 8 as follows—

8 New section inserted in Cap 24:20

“13A Notification of Application

As soon as reasonably possible after registering an applicant, the Registrar shall inform the Deposit protection Corporation, and cause notice thereof to be published in the Gazette and in one or more issues of a newspaper circulating in the area in which the applicants head office is situated.”.

CLAUSE 13 (AMENDMENT OF SECTION 20 OF CAP 24:20)

BY THE COMMITTEE OF FINANCE AND ECONOMIC DEVELOPMENT

On page 31 of the Bill—

  • delete clause (1) under paragraph (a) and substitute the following—

“Every banking institution and controlling company shall maintain a principle administrative office in Zimbabwe and shall inform the Registrar in writing of the office’s address:

Provided that where a controlling company is not operational in Zimbabwe, it shall be exempted from this requirement.”.

  • delete paragraph clause (2)(e) of paragraph (a) and substitute the following―

“(e) a company secretary;

(f) such other officers as may be prescribed;”.

 

clause 14 (now clause 12) (new sections inserted in cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 22 of the Bill, in the new section 20A (“Responsibilities and conduct of directors and principal officers of banking institutions and controlling companies”) to be inserted by this clause, delete from subsection (2) the words “observe any guidelines” in line 36 and substitute “observe any written prudential standards issued from time to time by the Reserve Bank”

 

On pages 22 and 23 of the Bill, in the new section 20A (“Responsibilities and conduct of directors and principal officers of banking institutions and controlling companies”) to be inserted by this clause, delete subsection (5) and substitute the following:

 

“(5) In addition to anything contained in section 318 of the Companies Act [Chapter 24:03], where a banking institution or controlling company has been placed under curatorship or judicial management or has been wound up, and it is established that the business of the institution or company has been carried on without regard for the prudential norms and standards and other requirements provided for in this Act, or to good corporate governance principles generally—

                 (a)   every person who was a director or principal officer of the institution or company when its business was being carried on in that manner; and

                 (b)   every shareholder who was knowingly a party to the carrying on of the business of the institution or company in that manner;

shall be jointly and severally liable with the institution or company for any loss or damage suffered by creditors, including depositors, of the institution or company:

Provided that this subsection shall not apply to a director or officer who, on a balance of probabilities, is able to show that he or she—

                 (a)   was not responsible for the manner in which the business of the institution or company was carried on; and

                 (b)   complied with his or her duties under subsections (1) and (2).”.

 

On page 23 of the Bill, in the new section 20A (“Responsibilities and conduct of directors and principal officers of banking institutions and controlling companies”) to be inserted by this clause, delete in subsection (6), in line 22, the connective “and” between paragraphs (a) and (b) and substitute the connective “or”.

 

On page 23 of the Bill, in the new section 20A (“Responsibilities and conduct of directors and principal officers of banking institutions and controlling companies”) to be inserted by this clause, delete in subsection (7), in lines 29 and 30, the words “in subsection (5)” and substitute “in subsection (5) or (6)”.

 

On page 23 of the Bill, in the new section 20A (“Responsibilities and conduct of directors and principal officers of banking institutions and controlling companies”) to be inserted by this clause, insert in subsection (7)(c), in line 39, after the words “repayment of the losses of the creditors” the words “(not including any creditor who is a director or principal officer or principal shareholder of the banking institution or controlling company, or any other person who is an associate or close relative of any of the foregoing, against whom the Registrar or Deposit Protection Corporation has instituted proceedings under this section)”

 

On page 24 of the Bill, in the new section 20B (“Disclosure of interests by directors of banking institutions and controlling companies”) to be inserted by this clause, delete subsection (1) and substitute the following:

 

“(1)  Upon his or her appointment, and annually thereafter, every director of a banking institution or a controlling company shall deliver to the chief executive officer of the institution or company a document in the prescribed form setting out the full extent of the director’s assets, business activities and financial and proprietary interests and those of his or her spouse”.

 

On page 24 of the Bill, in the new section 20B (“Disclosure of interests by directors of banking institutions and controlling companies”) to be inserted by this clause, add the following proviso to subsection (2) after line 16:

 

“Provided that any such document and the information contained in it shall be strictly confidential to the Reserve Bank and shall not be released to anyone outside the Reserve Bank except with the written consent of the person to whom it relates”.

 

On page 24 of the Bill, in the new section 20B (“Disclosure of interests by directors of banking institutions and controlling companies”) to be inserted by this clause, delete subsection (3) on lines 17 and 18 and substitute the following subsection:

 

“(3)  Subject to section 73, a banking institution or controlling company that¾

                 (a)   fails, within the first seven days of the period of one hundred and eighty-one days referred to in paragraph (c) below (calculated from the date of the appointment or each anniversary of the appointment, as the case may be), to comply with subsection (1); or

                 (b)   contravenes subsection (2); or

shall ¾

                 (c)   be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution or company remains in default, not exceeding a period of one hundred and eighty-one days:

                                Provided that the Registrar shall have power to waive the payment or refund the whole or part of any penalty prescribed under this paragraph if he or she is satisfied that the contravention was not wilful, or not due to the want of reasonable care;

                         and

                 (d)   if the institution or company continues to be in default after the period specified in paragraph (c), be guilty of an offence and liable on conviction to¾

                           (i)   a fine not exceeding level fourteen; and

                          (ii)   a fine not exceeding level fourteen or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution or company.”.

 

Substitution of clauses 15 and 16 (now clauses 13 and 14)

By the Minister of Finance and Economic Development

 

On page 24 of the Bill, delete clauses 15 and 16 and substitute it by the following clauses:

 

“13     Amendment of section 24 of Cap. 24:20

Section 24 (“Alteration of constitution or rules of conduct by banking institution”) of the principal Act is amended by the insertion after subsection (4) of the following subsection¾

“(4a) As soon as reasonably possible after consenting to an alteration in terms of subsection (1) or receiving notification of an alteration in terms of subsection (4), the Registrar shall inform the Deposit Protection Corporation.”.

“14     Amendment of section 25 of Cap. 24:20

Section 25 (“Amalgamations and transfers of business”) of the principal Act is amended by the insertion after subsection (9) of the following subsection¾

“(10) As soon as reasonably possible after receiving notification of an amalgamation or transfer in terms of subsection (9), the Registrar shall inform the Deposit Protection Corporation.”.

 

clause 16 (now clause 14) (amendment of section 25 of cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 24 of the Bill, in paragraph (a), delete from line 40 the words “in subsection (4)” and substitute the words “in subsection (5)”.

clause 17 (now clause 15) (new section substituted for section 26 of cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 25 of the Bill, in subsection (3) of the new section 26 (“Closing and establishment of branches in Zimbabwe by banking institutions”) to be substituted by this clause, insert after the words “intention to establish the branch,” in line 24 the words “and after affording the banking institution an opportunity to make representations on the matter,”.

 

On page 25 of the Bill, in the new section 26 (“Closing and establishment of branches in Zimbabwe by banking institutions”) to be substituted by this clause, insert after subsection (4) the following subsection:

 

“(5) Subject to section 73, a banking institution that fails to comply with a direction in terms of subsection (3) shall ¾

                 (a)   be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution remains in default, not exceeding a period of one hundred and eighty-one days;              and         

                 (b)   if the institution continues to be in default after the period specified in paragraph (a), be guilty of an offence and liable on conviction to¾

                           (i)   a fine not exceeding level fourteen; and

                          (ii)   a fine not exceeding level fourteen or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution.”.

 

clause 18 (now clause 16) (new sections inserted in cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 25 of the Bill, in subsection (1) of the new section 28A (“Corporate governance”) to be inserted by this clause, delete the words “consistent with such standards,” in line 35 and substitute “consistent with such prudential standards”.

 

On page 26 of the Bill, in subsections (1) and (2) of the new section 28B (“Compliance”), delete “or controlling company” wherever it occurs”.

 

On page 26 of the Bill, in subsection (1) of the new section 28C (“Risk committee”) to be inserted by this clause, delete the words “of whom at least two shall be non-executive directors,” in lines 41 and 42, and substitute “all of whom shall be non-executive directors”.

 

clause 19 (new part inserted in cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 28 of the Bill, in subsection (1) (c) of the new section 28D (“Publication of certain information by banking institutions”) to be inserted by this clause, delete the words “a notice setting out its interest rates” in line 5 and substitute “a notice in a form approved by the Reserve Bank that is clearly visible to the public setting out its interest rates”.

 

On page 28 of the Bill, in subsection (3) of the new section 28D (“Publication of certain information by banking institutions”) to be inserted by this clause, delete from line 15 the words “subsection (3)” and substitute the words “subsection (2)”.

 

On page 29 of the Bill, in the new section 28E (“Disclosure of certain information to customers of banking institutions”) to be inserted by this clause, insert after subsection (4) the following subsection:

 

“(5)  No banking institution shall impose any fee or other charge for the information it is required to provide to a user of its services under subsection (1), (2), (3) or (4).”.

 

On page 30 of the Bill, after the new section 28F (“Customer complaints procedures”) to be inserted by this clause, insert the following additional new section:

 

“28G  Civil penalties for non-compliance by banking institutions with Part IVA

Subject to section 73, a banking institution that fails to comply with any provision of this Part shall ¾

                 (a)   be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution remains in default, not exceeding a period of one hundred and eighty-one days;        and         

                 (b)   if the institution continues to be in default after the period specified in paragraph (a), be guilty of an offence and liable on conviction to¾

                           (i)   a fine not exceeding level fourteen; and

                          (ii)   a fine not exceeding level fourteen or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution.”.

 

CLAUSE 19 (NEW SECTION INSERTED IN CAP 24:20)

BY THE COMMITTEE OF FINANCE AND ECONOMIC DEVELOPMENT

On page 38 of the Bill insert the following subsection after subsection (3) of the section 28D—

“(4) After changing any of the matters referred to in subsection (1), (2) and (3) above a banking institution shall give the account holder, borrower and card holder, written notice of the changes within fourteen (14) days”.

clause 22 (new sections inserted in cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 30 of the Bill, in subsection (4) of the new section 31A (“Credit rating of banking institutions”) to be inserted by this clause, delete the words “may publish” in line 27 and substitute “may, not more than once in a calendar year, publish”.

 

On page 31 of the Bill, in subsection (3) of the new section 31C (“Issue of credit reference bureau licences”) to be inserted by this clause, add the following words to the end of that subsection in line 7: “and, in the case of a refusal, of the reasons for his or her refusal”.

 

clause 23 (now clause 21) (new sections substituted for section 32 of cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 31 of the Bill, by the deletion of subsections (2) and (3) of the new section 32 (“Restrictions on purchase and pledging of shares in banking institutions and controlling companies”) to be inserted by this clause, and the substitution of the following subsections:

“(2)  Except with the prior approval of the Registrar (which approval shall not be unreasonably withheld), no person holding a significant interest in a banking institution or controlling company (as defined in section 15B(1)) shall pledge, hypothecate or otherwise encumber any shares in a banking institution or controlling company if the encumbrance may result in a transfer of shares or voting rights in the institution or company equal to or exceeding ten per centum of the shares or voting rights in the institution or company.”

(3)  Subject to section 73, a banking institution or controlling company which or person who contravenes subsection (1) or (2) shall ¾

                 (a)   be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution, company or person remains in default, not exceeding a period of one hundred and eighty-one days;        and     

                 (b)   if the institution, company or person continues to be in default after the period specified in paragraph (a), be guilty of an offence and liable on conviction¾

                           (i)   in the case of a banking institution or controlling company

  1. to a fine not exceeding level ten; and
  2. to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution.”.

                          (ii)   in the case of an individual other than a director or member referred to in subparagraph (i)B, to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment.”.

 

On page 31 of the Bill, by the deletion between lines 38 and 41 of subsection (1) of the new section 32A (“Special purpose vehicles”) to be inserted by this clause, and the renumbering of the following subsections (2), (3), (4) and (5) as subsections (1), (2), (3) and (4) respectively.

 

On page 31 of the Bill, by the deletion in subsection (3) (now subsection (2)) of the words “subsection (2)” in line 43 and the substitution of “subsection (1)”.

 

clause 24 (now clause 22) (amendment of section 35 of cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 32 of the Bill, in paragraph (c), by the deletion between lines 15 and 33 of the new subsections (3) to (6) of new section 35 (“Restrictions on extending of credit to officers, employees and certain shareholders and relatives”) to be inserted by this clause, and the substitution of the following subsections:

“(3)  A banking institution shall not extend credit exceeding such amount as may be prescribed to any of its directors, shareholders or principal officers, or to a close relative or associate of any of those persons (hereinafter referred to as “insiders”), unless—

                           (a)   the transaction has been approved by the board of the banking institution (without the participation of any director or principal officer to whom the credit is sought to be extended in the decision to approve the extension of the credit); and

                          (b)   the credit does not exceed ten per centum of the paid-up equity capital of the banking institution; and

                           (c)   the credit is covered by one hundred per centum collateral; and

                          (d)   the credit is deducted from the paid-up equity capital of the banking institution.

(4)   Where a banking institution extends credit, exceeding such amount as may be prescribed, to any insider, it shall without delay inform the Registrar of that fact and provide the Registrar with such information concerning the credit as the Registrar may reasonably require.

(5)  For the avoidance of doubt, subsections (3) and (4) does not apply to the extension of credit to any employee of the bank as part of the employee’s conditions of service that are applicable to other employees generally.

(6)   Any contract or arrangement whereby a banking institution extends credit to any person in contravention of this section shall be voidable at the instance of—

                           (a)   the board of the banking institution; or

                          (b)   the Registrar;

and the credit shall be repayable to the concerned banking institution together with interest by any person in whose favour it was made within the period stipulated by the board or the Registrar, as the case may be.

(7)  Subject to section 73—

                 (a)   a banking institution which contravenes subsection (2), (3) or (4);

                 (b)   any director, shareholder or principal officer of a banking institution (whether on his or her own behalf or on behalf of any of his or her close relatives or associates ) who¾

                           (i)   receives any credit from the banking institution of which he or she is the director, shareholder or principal officer while knowing or not having a reasonable belief that the conditions for the extension of that credit in terms of subsection (3) have not been fully complied with; or

                          (ii)   fails, within the stipulated period, to repay fully together with interest at the concerned banking institution’s prevailing lending rate any credit under a contract or arrangement voided by the Registrar under subsection (6);

                         shall be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution, director, shareholder or principal officer (as the case may be) remains in default, not exceeding a period of one hundred and eighty-one days; and        

                 (c)   if the institution, director, shareholder or principal officer (as the case may be) continues to be in default after the period specified in paragraph (a), be guilty of an offence and liable on conviction¾

                           (i)   in the case of a banking institution—

  1. to a fine not exceeding level ten; and
  2. to a fine not exceeding level seven or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment in the case of every director or member of the board or governing body of the institution.”.

                          (ii)   in the case of a, to a fine not exceeding level ten or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment.

(8)  In addition, and independently of the institution of any criminal or civil penalty proceedings under subsection (7), any property of any description obtained by means of an extension of credit made in contravention of subsection (2), (3) or (4), shall be deemed to be “tainted property” resulting from the commission of a “serious offence” for the purposes of section 80 (“Civil forfeiture orders”) of the Money Laundering and Proceeds of Crime Act [Chapter 9:24] (No. 4 of 2013), and may be recovered at the instance of the Reserve Bank in proceedings instituted by it in terms of that section, as if the “Reserve Bank” were substituted for the “Attorney-General” or “Prosecutor-General” in that section

(9)  The income, and any proceeds from the realisation of property in respect of which a court has granted a civil forfeiture order in terms of subsection (8) shall be applied in the following sequence—

                 (a)   meeting the costs incurred by the Reserve Bank in obtaining the civil forfeiture order and the costs of any other proceedings instituted to establish a claim to the property or an interest in the property; and

                 (b)   repaying to the banking institution concerned the credit that was extended in contravention of subsection (2), (3) or (4), together with interest at the banking institution’s prevailing lending rate; and

                 (c)   any amount remaining after application of the amounts referred to in paragraphs (a) and (b) shall form part of the Recovered Assets Fund established by section 96 of the Money Laundering and Proceeds of Crime Act [Chapter 9:24] (No. 4 of 2013).

(10)  Until the maximum amount of credit that may be extended to insiders is prescribed for the purposes of this section, no banking institution shall extend credit to any insider, and any extension of such credit shall be deemed to be an extension of credit to insiders in contravention of subsection (2), (3) or (4).”.

new CLAUSEs to be substituted for CLAUSE 30 (now clause 28)

By the Minister of Finance and Economic Development

On pages 33 to 36 of the Bill, delete clause 30 (now clause 28) and substitute the following clauses

28  New sections inserted in Cap. 24:20

The principal Act is amended by the insertion in Part IX after section 52 of the following sections—

“52A  Problem banking institutions

(1)  This section applies where the Reserve Bank determines that, in relation to a particular problem banking institution, it is in the public interest or in the interests of the depositors or creditors of a banking institution to avoid cancelling the registration of a banking institution, if possible, in order to achieve any one or more of the following objectives—

                 (a)   to protect and enhance the stability of the financial system; and

                 (b)   to protect and enhance public confidence in the banking system; and

                 (c)   to protect depositors; and

                 (d)   where applicable, to protect public funds.

(2)  Where the Reserve Bank, following a report by an inspector or an investigation in terms of section 49, or on the basis of financial intelligence which in its opinion is sound and sufficient, has identified a banking institution as a problem banking institution because—

                 (a)   it can no longer maintain the prescribed minimum amounts of capital and reserves, or is otherwise in an unsound financial condition; or

                 (b)   it can no longer maintain net assets which, together with other financial resources available to it, are of an amount and nature sufficient to safeguard its creditors;

                 (c)   it can no longer provide adequate security for the assets entrusted to it; or

                 (d)   it is facing liquidity problems, or its prudential liquidity ratios are below the prescribed regulatory minimum; or

                 (e)   it has failed to put in place and implement a sound corporate governance framework and risk management framework, or it is in breach of good corporate governance requirements or its operations exhibit poor risk management; or

                 (f)   it is carrying out non- permissible activities or employing undesirable methods in carrying on its business; or

                 (g)   it has not complied with any instruction, requirement or condition imposed by the Registrar in terms of this Act; or

                 (h)   it is not being operated or is not conducting its activities in the best interests of its depositors;

the Reserve Bank may, subject to this section, formulate and implement a plan of resolution in relation to the banking institution (hereinafter called a “bank resolution plan”) involving any of the following measures—

                  (i)   the merging of the problem banking institution with another banking institution;

                  (j)   the acquisition of the problem banking institution by another banking institution;

                 (k)   the acquisition by or transfer to a third party of any asset or liability of the problem banking institution, including any asset held in trust;

                  (l)   the establishment of a bridging banking institution to acquire part or all of the assets and liabilities of the problem banking institution;

                (m)   the taking of control of the problem banking institution by a curator with powers to establish and institute a timely plan of resolution;

                 (n)   the winding up of the problem banking institution;

                 (o)   the taking of any action necessary to give effect to the plan of resolution, including the sale or closure of any branch, agency or other office of the problem banking institution and, subject to any other law, the dismissal of any of its officers or employees.

(3)  If the Reserve Bank makes a determination in terms of subsection (1) in relation to a banking institution it has identified as a problem banking institution under subsection (2), it shall, after affording the banking institution an adequate opportunity to make representations in the matter—

                 (a)   serve on a principal officer of such banking institution at its registered office—

                           (i)   a notice (hereinafter called a “problem bank notice”) announcing that the banking institution has been declared a problem banking institution; and

                          (ii)   the bank resolution plan that the Reserve Bank shall be implementing or cause to be implemented in terms of the Act;

                         and

                 (b)   publish the problem bank notice in the Gazette:

   Provided that, where the Reserve Bank considers that immediate action is necessary to prevent irreparable harm to the banking institution or its depositors, creditors, members or employees, the Reserve Bank may take such action before affording the banking institution an opportunity to make representations in terms of this subsection.

(4)  In formulating a bank resolution plan, the Reserve Bank shall—

                 (a)   have regard to the public interest; and

                 (b)   ensure that any measures authorised by or taken under the plan are proportionate to the harm they are intended to remedy; and

                 (c)   ensure that where any property or interest or right in property is to be acquired under the plan (other than shares and assets of the problem banking institution)—

                           (i)   reasonable notice is given to everyone whose interest or rights will be affected by the acquisition; and

                          (ii)   fair and adequate compensation is paid within a reasonable time after the acquisition; and

                         (iii)   if the acquisition is contested, an application is made to a court of competent jurisdiction for an order authorising or confirming the acquisition; and

                         (iv)   the property, interest or right is returned or not acquired if the court, on an application referred to in subparagraph (iii), does not authorise or confirm the acquisition;

                         and

                 (d)   ensure that all bidders or offerors seeking to acquire assets of the problem banking institution are treated equally and fairly; and

                 (e)   ensure that, so far as practicable, any person who acquires assets of the problem banking institution acquires an equivalent value of its liabilities.

(5)  The Reserve Bank or its agents may disclose confidential information concerning a problem banking institution, subject to a confidentiality agreement, to a bidder or offeror who proposes to acquire the institution or any of its assets or liabilities under a bank resolution plan.

(6)  Pending the formulation and implementation of a bank resolution plan (whether before or after the confirmation of the problem bank notice in terms of section 52B), the Reserve Bank may take such measures in relation to the banking institution concerned as, in its opinion, are reasonably necessary in order to—

                 (a)   preserve the capital, assets and liquidity of the banking institution concerned; and

                 (b)   protect the interests of depositors and other creditors of the banking institution concerned.

(6)  Measures referred to in subsection (6) may include—

                 (a)   restricting the activities of the banking institution concerned; and

                 (b)   removing or replacing all or any of the directors of the banking institution concerned; and

                 (c)   prohibiting or restricting the disposal of any assets of the banking institution concerned; and

                 (d)   any action referred to in section 48(3).

           52B  Confirmation of problem bank notice

(1)  At any time before a bank resolution plan is implemented, the problem bank notice shall be confirmed by application made by or on behalf of the Reserve Bank to a judge of the High Court in chambers on not less than fourteen days’ written notice (accompanied by the documentation in support of the application referred to in paragraphs (a) and (b) of subsection (2)) to the directors, shareholders, principal officer and creditors of the problem banking institution:

Provided that the publication by or on behalf of the Reserve Bank of a notice in the Gazette addressed to the directors, shareholders, principal officer and creditors of the problem banking institution (whether named individually or by class) ¾

                  (i)   notifying them of the intention of the Reserve Bank to make such an application not earlier than fourteen days from the date of publication of the notice in the Gazette; and

                 (ii)   informing them of their right to oppose the application; and

                (iii)   containing particulars of where the documentation in support of the application referred to in paragraphs (a) and (b) of subsection (2) may be collected by any party interested in the application, shall be deemed to constitute sufficient service of the notice of the application upon any such party.

(2)  There shall be submitted together with the application referred to in subsection (1) ¾

                 (a)   a copy of the problem bank notice relating to the banking institution which is the subject of the application; and

                 (b)   a statement of the reasons why it appeared to the Reserve Bank that any one or more of the circumstances referred to paragraph (a) to (h) of section 52A(2) were present in relation to the banking institution; and

                 (c)   a statement of the affairs of the banking institution indicating the extent of its assets and liabilities; and

                 (d)   proof that a principal officer of the banking institution had been served with the problem bank notice under section 52A(2)(p).

(3)  A decision by a judge not to issue a confirming order in terms of subsection (1), or to issue it subject to any amendment or variation, shall not prevent the Reserve Bank from making a fresh application in terms of that subsection on the basis of new evidence obtained since the original application, or to correct any mistake in the original application, and subsections (1) and (2) shall apply to such fresh application.”.

(4)  Where an appeal is noted against a decision of the High Court in an application referred to in this section, the Supreme Court shall ensure that, where possible, it delivers judgment in the appeal within thirty days after the appeal was filed in accordance with rules of court.

(5)  Notwithstanding any other law, if an appeal is noted against a decision of the High Court in an application referred to in this section, no court shall set aside the decision of the Reserve Bank made pursuant to a bank resolution plan without the consent of the Reserve Bank, unless the court is satisfied that the decision was made corruptly or in bad faith:

Provided that this subsection shall not prevent a court from awarding fair and adequate compensation to any person who has suffered loss as a result of the decision.

(6)  Pending the determination of an application referred to in this section or any appeal in relation thereto, the Reserve Bank may take any of the measures referred to in section 52A(5) or any other formal supervisory or enforcement action against the problem banking institution concerned in the interests of its creditors or depositors or in the public interest.

(7)  Where a problem bank notice is confirmed by the court in terms of this section and the bank resolution plan in relation to it proposes to place the problem banking institution concerned under liquidation, it shall not be necessary to issue a separate notice of liquidation in terms of section 57 of the Act.

52C  Implementation of bank resolution plan

(1)  In this section “curator” means an agent of the Reserve Bank acting as an independent contractor or the Reserve Bank itself operating through one of its employees, and includes any special asset management company established in terms of Part IXA of the Reserve Bank Act.

(2)  Where a curator has taken control of a problem banking institution under a bank resolution plan, the shareholders of the institution shall have no rights with respect to shares, except to the extent permitted under the plan.

(3)  Within ninety days after a curator has taken control of a problem banking institution under a bank resolution plan, the Reserve Bank, after consultation with the Deposit Protection Corporation, shall—

                 (a)   determine whether to restructure, reorganise or wind up the institution; and

                 (b)   determine an alternative bank resolution plan based upon any combination of restructuring, reorganisation or winding up of the institution or, subject to this section, any other option which provides for expeditious resolution of the problems of the institution:

                                Provided that if the new bank resolution plan is materially at variance with the one submitted in connection with an application in terms of section 52B, the Reserve Bank shall seek the leave of the court that confirmed the application to depart from the original bank resolution plan, and the court may make any directions on the matter that it thinks fit.

(4)  For a period of ninety days after a curator has taken control of a problem banking institution under a bank resolution plan, no proceedings may be commenced against the institution by its creditors.

(10)  Notwithstanding any other law, where under a bank resolution plan—

                 (a)   any asset of a problem banking institution has been transferred to any person; or

                 (b)   control of a problem banking institution has been transferred to any person; or

                 (c)   the whole or part of the business of a problem banking institution has been transferred to any person;

no court shall set aside the transfer without the consent of the Reserve Bank, unless the court is satisfied that the transfer was made fraudulently, corruptly or in bad faith:

Provided that this subsection shall not prevent a court from awarding fair and adequate compensation to any person who has suffered loss as a result of the transfer.”

29  Amendment of section 55 of Cap. 24:20

Section 55 (“Duties and powers of curator”) of the principal Act is amended by the insertion after subsection (3) of the following subsection—

“(3a)  Any person alleging to be a creditor of a banking institution under curatorship may, upon furnishing such written proof to the curator as will satisfy the curator that the person is able to prove a claim against the banking institution, and upon payment of the prescribed fee (if any), request that any specific report or every report made by the curator under subsection (1) (e), (f) and (g) be availed to him or her as soon as practicable after the curator avails it to the Reserve Bank, and the curator shall comply with such request.”.

clause 30 (new section INSERTED IN cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 35 of the Bill under “48A Problem Banking Institutions”, in subsection (8), after the words “the Reserve Bank,” delete “in” and replace it with “after”.

clause 33 (now 32) (new section substituted for section 57 of cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 37 of the Bill, delete subsection (4) between lines 34 and 41 and substitute the following.

 

“(4) In an application referred to in subsection (3)(c), the High Court may not, despite any other law, reverse or set aside the order of the Reserve Bank to wind up a banking institution made in terms of subsection (1) without the consent of the Reserve Bank, unless the court is satisfied that the decision was made corruptly or in bad faith:

Provided that this subsection shall not prevent the High Court or any other court from awarding fair and adequate compensation to any person who has suffered loss as a result of the decision.”.

CLAUSE 35 (NEW PART INSERTED IN CAP. 24:20)

By the Minister of Finance and Economic Development

On pages 38 to 40, delete Clause 35

CLAUSE 35 (NEW PART INSERTED IN CAP 24:20)

BY THE COMMITTEE OF FINANCE AND ECONOMIC DEVELOPMENT

On page 49 of the Bill insert the following subsection after subsection (2) of the section 22—

“(3) The Office of the Financial Public Protector shall―

  • be independent of the Reserve Bank of Zimbabwe;
  • be accountable to the Minister;
  • operate without a Board.”.

 

clause 36 (now clause 35) (amendment of section 73 of cap. 24: 20)

By the Minister of Finance and Economic Development

 

On page 41 of the Bill, in paragraph (b), delete from line 25 the words “thirty days” and substitute the words “ninety days”.

new CLAUSE inserted after CLAUSE 36 (now clause 35)

By the Minister of Finance and Economic Development

After the end of clause 36 on page 41 of the Bill insert the following clause, the subsequent clauses being renumbered accordingly:

36  New section inserted in Cap. 24:20

The principal Act is amended by the insertion after section 77 of the following section—

“77A  Issuance of civil penalty orders

(1)  Where in this Act provision is made for the imposition of a civil penalty, such provision shall be construed as authorising the Registrar to issue to the person specified by this Act to be responsible for the infringement in respect of which the penalty is imposed (hereinafter called “the infringer”) any one of the following kinds of orders (called a “civil penalty order”) addressed to an infringer, which order shall be issued within such of the following parameters as may be appropriate to the infringement, namely a civil penalty order imposing¾

                 (a)   a fixed civil penalty for a specified completed and irremediable infringement, for which¾

                           (i)   the penalty shall not exceed a fixed penalty of level ten or the penalty prescribed by or under this Act, as the case may be; and

                          (ii)   the penalty for each day (beginning on the day after the issuance of the civil penalty order) during which the infringer fails to pay the civil penalty, shall not exceed a penalty of level three (twenty United States dollars) per day for a maximum period of one hundred and eight (180) days;

                         and

                 (b)   a fixed civil penalty for a specified completed but remediable infringement¾

                           (i)   for which the prescribed penalty shall not exceed a fixed penalty of level five (one hundred United States dollars) or the penalty prescribed by or under this Act, as the case may be; and

                          (ii)   which must be suspended conditionally upon the infringer taking the remedial action specified in the civil penalty order within the time specified in that order; and

                         (iii)   which (upon the civil penalty becoming operative because of non-compliance with the requested remedial action) may provide for the prescribed penalty for each day (beginning on the day after the last day on which the infringer should have effected the remedial action) during which the infringer fails to pay the civil penalty referred to in subparagraph(i), which shall not exceed a penalty of level two (ten United States dollars) per day for a maximum period of one hundred and eight (180) days; and

                 (c)   a fixed civil penalty for a continuing infringement¾

                           (i)   for which the prescribed penalty shall not exceed a penalty of level one (five United States dollars) for each day during which the infringement continues (or the penalty prescribed by or under this Act, as the case may be), not exceeding a maximum period of one hundred and eight (180) days; and

                          (ii)   which must be suspended conditionally upon the infringer immediately (that is say, on the day the civil penalty order is issued) ceasing the infringement;

                        and

                 (d)   a fixed civil penalty for a specified continuing infringement where the time for compliance is of the essence¾

                           (i)   for which the prescribed penalty shall not exceed a fixed penalty of level ten (six hundred United States dollars) or the penalty prescribed by or under this Act, as the case may be; and

                          (ii)   which must be suspended conditionally upon the infringer taking the remedial action specified in the civil penalty order within the time specified in that order; and

                         (iii)   which (upon the civil penalty becoming operative because of non-compliance with the requested remedial action) may provide for the prescribed penalty for each day (beginning on the day after the last day on which the infringer should have effected the remedial action) during which the infringer fails to pay the civil penalty referred to in subparagraph (i), which shall not exceed a penalty of level two (ten United States dollars) per day for a maximum period of one hundred and eight (180) days;

(2) A civil penalty order that becomes payable by the infringer shall constitute a debt due by the infringer to the Registrar and shall at any time after it becomes due, be recoverable in a court of competent jurisdiction by proceedings in the name of the Registrar.

(3)  The amount of a civil penalty shall be paid into and form part of the funds of the Reserve Bank.”

 

clause 38 (Amendment of section 81 of cap. 24:20)

By the Minister of Finance and Economic Development

On page 42 of the Bill, in paragraph (b) of this clause, add the following new paragraph to section 81(2):

             “(g6)   the specification, notwithstanding any other law, of a tariff of remuneration, fees and charges to be payable to a curator, public auditor or accountant, legal practitioner or other independent contractor retained by the Reserve Bank for the discharge of any statutory function any purpose under this Act;”.

CLAUSE 40 (amendment of cap. 22:15)

By the Minister of Finance and Economic Development

On page 43 of the Bill, insert after paragraph (b) the following paragraph into clause 40 (now clause 41), and redenominate the existing paragraph (c) as paragraph (d):

     “(c)   by the insertion after Part IX of the following Part—

“Part IXA

Special Asset Management Companies

57A  Establishment of special asset management companies

(1)   In the exercise of its functions the Bank may establish any one or more companies or other entities, to be known as “special asset management companies”, for the purpose of—

                 (a)   acquiring, rescheduling, disposing of, holding, managing or otherwise settling non-performing loans of banking institutions; or

                 (b)   on the direction of the Bank, managing, acquiring, restructuring and disposing of distressed or problem or failed banking institutions;

                 (c)   generally, performing such other functions related to the acts mentioned in paragraph (i) and (ii) or exercising any function conferred on the Bank by or in terms of this Act;”

(2)  Upon completion of the mandate for which it was established in terms of subsection (1), a special asset management company shall be wound up and the necessary account shall be rendered to the Bank.

57B Immunity of special asset management companies, etc.

The immunity of the Bank bestowed by section 63A applies also to any special asset management company, for which purpose references therein the Bank, the Board, the Governor and any employee of the Bank shall be read as references to the company, its board of directors, its chief executive or principal officer and any of its employees.

57C  Powers of Investigation of special asset management companies

Section 47 of the Banking Act applies to a special asset management company in the pursuance of the mandate for which it was established in terms of section 57A (1), as if the company and its employees, are supervisors and inspectors referred to in that section of the Banking Act.

57D  Powers of curatorship of special asset management companies

Section 55 of the Banking Act applies to a special asset management company in the pursuance of the mandate for which it was established in terms of section 57A (1), as if the company (and any of its employees discharging curatorship functions) is the curator referred to in that section of the Banking Act.

57E Special asset management companies exempt from certain duties, fees and charges

(1) No duty or fee in relation to any instrument, service or other matter shall be payable to the State by any special asset management company in respect of-

                 (a)   any transfer to the company of property other than property acquired by the company for its own use or for the use of its employees; or

                 (b)   any mortgage, hypothecation or pledge of property or cession thereof in favour of the company; or

                 (c)   any document of security, pledge, act of suretyship, indemnity or guarantee by or in favour of the company.

(2) A special asset management company shall not be liable for the payment of any search or inspection fee in the Master’s office or in any Deeds Registry or Companies Registry.”.

 

By the Minister of Finance and Economic Development

On page 44 of the Bill, insert after line 39 the following subclause to clause 40, the existing clause becoming subclause (1):

“(2) The wholly owned company of the Reserve Bank of Zimbabwe called the Zimbabwe Asset Management Corporation (Private) Limited, incorporated in terms of the Companies Act [Chapter 24:03] on the 15th July 2014, shall be deemed to be a special asset management company established with effect from the date of its incorporation in terms of Part IXA of the Reserve Bank of Zimbabwe Act [Chapter 22:15].”.

clause 43 (amendment of schedule to Act 1 of 2010)

 

By the Minister of Finance and Economic Development

 

On page 45 of the Bill, delete clause 43 between lines 39 and 47.

INSERT clause 45 (amendment of THE RESERVE BANK OF ZIMBABWE (dEBT ASSUMPTION) Act, nO. 2 of 2015)

 

By the Minister of Finance and Economic Development

 

On page 47 of the Bill, insert a new clause 45 which reads as follows―

 

“45 Amendment of Reserve Bank of Zimbabwe (Debt Assumption) Act, No. 2 of 2015

The Reserve Bank of Zimbabwe (Debt Assumption) Act, 2015, is amended by the repeal by the repeal of section 6 and its substitution with the following―

“Part III of the Public Debt Management Act [Chapter 22:21] shall apply, with the necessary changes, in respect of any obligations assumed in terms of section 4 as if the obligation were a State loan borrowed in terms of that Act.””.

 

 

BILL UNDER CONSIDERATION BY THE PARLIAMENTARY LEGAL COMMITTEE

 

  1. General Laws Amendment Bill (H.B. 2A, 2015) – The Vice President and Minister of Justice, Legal and Parliamentary Affairs. (Referred 24th November 2015)

 

  1. Criminal Procedure and Evidence Amendment Bill (B.3A, 2015), – The Vice President and Minister of Justice, Legal and Parliamentary Affairs. (Referred 24th November 2015)

 

 

 

BLOG COMMENTS POWERED BY DISQUS
National Assembly Votes NATIONAL ASSEMBLY VOTES 15 DECEMBER 2015 NO 26