Banks besieged as bond notes now imminent


Depositors rushed to withdraw their cash from banks yesterday as President Mugabe decreed the bond notes law. Lawyers, Tendai Biti and Lovemore Madhuku are preparing a legal application to challenge the legality of the SI, arguing it is unconstitutional. Biti, a former Finance minister, said Mugabe’s move was illegal.

“The President is not Parliament and in a democracy, where there is separation of powers, one man cannot make the law,” he said. “The first objection is the abuse of the Constitution and Parliament. Second challenge, the statutory instrument does not answer whether bond notes are money or a securitised instrument.”

Madhuku, a law lecturer at the University of Zimbabwe, said he will challenge the new regulations at the High Court today. “This statutory instrument is null and void. It is being taken up and we are going to court to challenge it. It’s no longer lawful for a President to amend a law that comes from Parliament,” he said.

Madhuku said they would seek an interdict to stop the Reserve Bank of Zimbabwe from circulating the bond notes. The lawyers cited section 134 of the Constitution that says Parliament’s primary lawmaking power must not be delegated.

Source : Mafaro