via Sovereign Wealth Fund Bill gazetted | The Herald January 11, 2014
GOVERNMENT has gazetted the Sovereign Wealth Fund of Zimbabwe Bill and the Biological and Toxin Weapons Crimes Bill and these are set to be tabled in Parliament soon for debate.
This comes as President Mugabe has published names of Cabinet ministers, deputy ministers and permanent secretaries and their ministries and portfolios in the Government Gazette.
The announcement, being done in terms of the Constitution, is meant to give legal effect to the heads of Government ministries appointed by the Head of State and Government and Commander-in-Chief of the Zimbabwe Defence Forces after he secured an overwhelming victory in the July 31 2013 harmonised elections.
The Sovereign Wealth Fund of Zimbabwe Bill seeks to establish a fund to be administered by a board whose objective is to secure investments for the benefit and enjoyment of future generations of Zimbabweans.
The Biological and Toxin Weapons Crimes Bill seeks to prohibit the development, production, manufacture, possession, stockpiling, acquisition, importation, exportation and use of certain biological agents and toxins and of biological weapons.
This is consistent with the United Nations Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological and Toxin Weapons and on their destruction signed on April 10, 1972 to which Zimbabwe is a signatory.
The two Bills were contained in a Government Gazette published yesterday.
The Sovereign Wealth Fund of Zimbabwe’s objective is also meant to support the development objectives of the Government, including its long- term economic and social development.
In terms of Clause 4 of the Bill, it is also meant to support fiscal or macro-economic stabilisation, in particular to supplement the revenues of Zimbabwe when these are prejudiced by the fluctuation of prices payable for those minerals on which royalties and other taxes are collected for the benefit of the Consolidated Revenue Fund.
Clause 5 of the Bill provides for the establishment of the institution’s Board that would be led by a chairperson, chief executive and 16 board members drawn from various ministries.
Ownership of the fund is vested in the republic of Zimbabwe with the President acting as the trustee and patron.
Clause 9 makes provision for the board to appoint investment managers, either as employees of the board or as independent contractors.
It is required, in terms of Clause 12 to submit annual reports to Parliament through the minister responsible for its administration.
COMMENTS
Having a Sovereign Wealth Fund is a nullity until there is some sovereign wealth to invest! Where is the diamond money?
In countries with excess mineral or other natural wealth surpluses, the host country sets up a sovereign wealth fund to manage that wealth through prudent investment strategies that seek to grow the endowment for future generations when the mineral or natural resource is exhausted. Part of the mission is to never loose principle cash, either by market forces or by spending it. Usually, though not always, these funds invest in foreign stock markets and other money making activities to maximize profit, and are politically independent so that they can be strictly impartial in adhering to their mission.
The fact that the board will be appointed by the President, rather then the legislature, is the same type of thinking that got Zimbabwe into this current mess! Rather then seeking out the best minds to to administer this, the bill concentrates all power in the office of one man; who is presumed to know better then all others. It means that when he f*cks up – as he always does – then the whole country suffers. It would be far better to have a parliamentary committee research and vote on the members of this board.
This is just another vehicle for Mugabe to appoint more bootlickers to a national board so they can help themselves to the money. There are no checks and balances to prevent the same sort of abuses that have occurred at all of the parastatals.
As well, the fact that this fund is envisioned as a bridge to prop up government expenditures when world commodity prices fall, means that in fact it will not benefit future generations because the money will no doubt be spent as soon as Mugabe f*cks up again. The fact that he controls it means that there will be no resistance when he needs a top-up to stay afloat.
This is just another fancy vehicle for ZANU-PF to steal the country’s wealth! As they say, it’s like putting lipstick onto a pig… it’s still a pig.
Wait and see, if this fund ever has any funds to actually invest, they will be spent on local businesses that support ZANU-PF and the country will see no profit!
You cannot cover the cracks of mismanagemnt, corruption and
poor governance with the spoken or printed word.
The present ZANUPF government is no different to the previous and
look at that performance !
Once we Zimbabweans have control of our destiny there will
be place for The Sovereign Wealth Fund and other good causes.
Until then just another bag for ZANUPF to steal and loot from.