Bond notes uncertainty abetting cash crisis

ZIMBABWE is currently in the grip of a cruel cash crunch that has seen money disappearing from banks, winding queues forming, mobile money transfer outlets running out of cash and higher denominations of the United States dollar vanishing from circulation.

Source: Bond notes uncertainty abetting cash crisis – NewsDay Zimbabwe October 25, 2016

guest column: LEARNMORE ZUZE

The inconvenience is there for all to see. On the one extreme is the raging saga of civil servants’ salaries that has since become a grand event requiring proclamation every month.

Even more, it remains to be seen what will become of the 13th cheque, which again, was promised to the civil service by the government.

There are so many things that have gone awry in the Zimbabwean administration and the above-mentioned represents, but a tiny fraction.

A whole host of things have been mishandled by the government, but in all its dealings, a common factor has emerged that has served to prop up the crises facing this country, namely lack of policy consistency.

Barely a month after Finance minister Patrick Chinamasa had his cost-cutting measures shot down, we have the hanging issue of bond notes. Bond notes, in essence, have stirred trouble before their launch.

The uncertainty surrounding bond notes has, in essence, aided to the continued crisis; it is an open secret that the majority of people are holding onto the US dollar in the face of uncertainty.

The bond notes delay is presenting its own challenges and surely the government can do with a little decisiveness to avert the exacerbating crisis.

They should, by now, realise the evils wrought by the proposal to introduce bond notes and the subsequent delay.

It’s been sometime since Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya, spoke of bond notes.

In fact, according to initial pronouncements, bond notes, at this stage, should long have been in circulation, but it is apparent the government lacks consistency in policymaking.

They are not even sure themselves of what they seek to impose on the nation. But one thing that is undeniable is the disaster currently resulting from the proposed bond notes.

It would have been better, in my opinion, for Mangudya to have, with wisdom, held back and announce these feared notes shortly before allowing circulation.

What the government has successfully done now is to raise a suspicious awareness to the bond notes. The impact of bond notes, so far, has been negative.

One would think or expect that government, through its necessary structures, should give comprehensive attention to its policies before going out to the world with pronouncements.

Both Chinamasa and Mangudya are now caught between the proverbial rock and hard place.

The contradiction arising from differences in policy consistency are everywhere.

That should not be expected from a government, if anyone should take it seriously.

Again, away from the bond notes saga, it was only last month that Chinamasa, for the second time, had his bonus freeze proposals shot down after he had gone public with the announcement.

A whole minister, for the second time, had to put up with embarrassment after Cabinet, its leader President Robert Mugabe in particular, shot down the proposals.

While the embarrassment falls hard on Chinamasa, it also seriously reflects negatively and speaks of a disconnect within government.

Cohesion, shared vision and common purpose are apparently absent in the Zimbabwean administration.

The Finance minister had also announced that job cuts of the civil service were imminent and, indeed, rationalisation of the civil service had long been on the cards, yet all was blown away with the wind.

Chinamasa’s proposals to reduce salaries and allowances by between 5% and 20%, starting with deputy directors to ministers effective October 2016 and foregoing the 2016 and 2017 bonuses, were evidently in tandem with the government’s thrust to rationalise public spending.

The move would have reportedly saved Treasury $180 million per annum.

However, at the time, Information, Media and Broadcasting Services minister Chris Mushohwe poured cold water on the proposals, saying they had not been approved.

It is only logical to try and understand whether the Finance minister acts without consulting his boss Mugabe or whether the RBZ governor is not accountable to anyone.

Because, surely, these inconsistencies in policy are disturbing, especially when they induce more suffering to a people who have seen a lot like the generality of Zimbabweans.

These policy somersaults are not good at all for the nation, apart from revealing government confusion.

Inconsistency erodes teamwork and, above all, wipes away the little confidence that remains in this embattled government.

It really reveals that the government does not seem to take the citizenry seriously. The disconnect speaks volumes.

Are Zimbabweans governed by a caring government? Does the government recognise the people, who see the crisis in this country and are working in common purpose to end the challenges? Or we have an administration merely obsessed with power?

The efforts and energies spent on electoral campaigns should be the same energies expended on mending the economy.

The government has to find a better approach in reconciling contradictions.

Learnmore Zuze writes in his own capacity. E-mail: lastawa77@gmail.com