via Bippas won’t stop assets seizure: Chinamasa – DailyNews Live by Ndakaziva Majaka 3 JUNE 2014
Bilateral Investment Promotion and Protection Agreements (Bippas) do not prevent government from compulsory acquisition of assets from investors, Finance minister Patrick Chinamasa said.
The Treasury chief told Parliament last week that government would only have to compensate the investor.
“Under the Bippas, government is not prevented from compulsory acquisition of assets. It is required to pay compensation,” Chinamasa said.
His remarks come as lack of respect for property rights — coupled with mistrust — is one of the major factors deterring foreign direct investment into Zimbabwe.
A Bippa is an agreement establishing the terms and conditions for private investment by nationals and companies of one state operating in the territory of another state.
It further provides for unrestricted transfer of returns from investments and defines procedures for the resolution of disputes, should they arise.
Therefore, Bippas offer companies and individuals from investor countries increased security and certainty under both domestic and procedures for the resolution of disputes should these arise.
However, Zimbabwe is notorious for violation of property rights, despite having signed several Bippas.
In 2000, government embarked on the Land Reform Programme and some farmers who were protected under Bippas lost their farms.
In response to concerns over the violation of Bippas in the implementation of the land reform programme, Chinamasa said there was nothing amiss.
“Under those Bippas, which you allegedly say were violated, the only shortcoming was that we failed to raise the money to pay compensation, but there was no violation,” he said.
Chinamasa also spoke about the Bippa between Zimbabwe and Kuwait, which was ratified by Parliament.
“The essence behind operationalising the Bippa with Kuwait is to enhance Kuwait investor confidence in Zimbabwe as a safe and viable investment location as well as from the Multi-lateral organisations against expropriation and nationalisation and providing procedures for compensation should these occur,” the former Justice minister said.
He said Bippas are meant to encourage companies and individuals to invest in the country.
This comes as the Britain’s deputy ambassador to Zimbabwe Chris Brown recently said British investors are interested in venturing into Zimbabwe but remain worried about the perceived lack of respect for property rights and uncertain business climate.
He said the country should enforce investor friendly policies, including reviewing its indigenisation policy.
“Zimbabwe should look directly at the elephant in the room, the continued uncertainty over the implementation of the Indigenisation and Economic Empowerment,” Brown told a Zimbabwe National Chamber of Commerce (ZNCC) conference.
He added: “If government does not soon articulate a clear approach, one that achieves empowerment yet respects property rights, Africa will continue to rise without Zimbabwe.”
“Zimbabwe should therefore follow an investor-friendly path and this alone would give a seven percent GDP growth per year. This is ignoring her abundant agricultural resources and exceptionally-educated labour force,” Brown said.
He said investors will continue shunning the country if their concerns about the business climate are not addressed.
COMMENTS
ZANU will never change . Its far much easier to loot and plunder than to work for your living.
ZANU is wired to pillage.
ZANU must go.
Where does this idiot think a bankrupt government that cannot borrow a used condom think they are going to get the money to pay the victims of ZANU PF theft in terms of the BIPPA’s?
Is our site okayed to continue?
hear hear hear the Roving Ambassador is our site okayed to continue!?
Music to the ears of mliswa kaukonde chiyangwa mndiwanzira etc !!!!!!!
“Under those Bippas, which you allegedly say were violated, the only shortcoming was that we failed to raise the money to pay compensation, but there was no violation,” he said.
Compensate or not compensate (by the way its a huge problem when you fail to compensate)the net effect is the same; country is not a safe investment destination.
Who does Chinamasa think he is fooling? They are stealing investors assets!
Already an indication of intention. Your new plan is stillborn Minister. No doubt the compensation will hit the same brick wall mentioned a few days ago – intend to pay but no money, or, per RBZ , intention but no obligation ! Time ICC investigates and prosecutes this sort of this deceit – the accumulation of personal wealth underlies the abuse of humanity.
What an idiot, again showing ZANU’s true stupidity and colours!
The message this idiot Chinamasa is sending is very simple.
IF YOU WANT TO HANG ON TO YOUR MONEY, DO NOT INVEST IN ZIMBABWE!
You sign a bilateral agreement with Kuwait because you say it will help boost investor confidence and assure Kuwait investors yet in the same breath you say the same bilateral agreements do not guarantee protection of your assets ?? someone please help me out here, the minister has lost me
Continued confusion, because as long as we can keep this up nobody can really tell what we really doing and when the results come out we can just blame sanctions! this is the PF way.
If contract says you must compensate and you do not compensate, that is a violation. You cannot say there was no violation if you have not compensated.
it is even a humanitarian issue. For how do you expect a person to survive if you take away their livelihood and homes without compensation.
Inga mbavha dzinosungwa dzichidzoka kudzimba dzavo after release.
There was a time I used to think Chinamasa was a clever man. The Finance assignment has really amplified the empty vessel. And just as self-contra as his shamelessly expedient boss.
“the only shortcoming was that we failed to raise the money to pay compensation, but there was no violation,”
haha ha ha !!
we seized your property against your will, and we did not pay you for it.. but hey – that’s ok… its not against our law.
Chinamasa – did you really say this? Tomorrow you will be asking people to invest! What do you think they will say?
This kind of statement ONLY hurts the masses in Zimbabwe because stupidity like this statement causes INVESTORS to think twice and they rather invest where there is rule of law and a Government with educated people rather than try their luck with zombies of a minister / government
Eish Pat, keep talking, investors will keep fleeing and boycotting, the more you talk, the more they walk……maiwe Pat and the 40 thieves need prayer…..1 of the 10 commandments is THOU SHALL NOT STEAL….by law if you take anothers assets and don’t compensate them this is blatant THEFT….you cannot hide behind indigenisation or land reform…theft is theft and the LORD hates injustice….RUN you wise people with money or you will be ripped off!!!!!!!
Zanu pf thinks investers need Zimbabwe yet it is the other way round.
So why sign them if they don’t offer protection.
Hey Patrick just exactly where are you going to get the money to pay the foreign investors when you can’t even pay the civil servants on time? And you think you are a finance minister – really?
Wow, Chris Brown!! just where have you been all these past years? You want to bring all the Brit investors in but worry about property rights!!~! Here is someone who practically could do something about a Zim Govt protecting property rights but feebly stands at the door and expects the same people who created the problem to solve it!! OMG.
No wonder no one will come and invest. May the Lord himself raise up a man after His own heart to lead Zimbabwe. The signals ZPF sent to everyone should cause great trepidation. Just watch the economy continue to slide. They must just go. What an ungodly leadership. The God of justice awaits! Be warned! Hell is for eternity.
Minister Chinamasa, please do not take other peoples’ property if you do not have money to compensate. You cant have your cake and eat it! Why conflicting yourself?
Obfuscation, equivocation, double talk, contradiction, and just plain lies characterise Chinamasa and his ilk. Zimbabwe will not attract investment under this regime. The clock is ticking as the way of the fool always comes to an ignominious end.
The economy will give them the rudest awakening. It’s a matter of time before it goes on a freefall. Never ever think the guys do have a plan for the country…it’s Zero