Opinion: Zimbabwe bond-notes add debt to the Republic of Zimbabwe; also worry about the possible inflation rate!

zim-bond-coins-2014

There been demonstrations in August 2016 on the current case of making bond notes in Zimbabwe as the economy and inflation rates can become hazardous for the economy. An economy and the policy that is not sustainable in any sense. Something that hasn’t been since the hyper-inflation of the 2008; as the current situation with other currencies than their own to keep the businesses and government a float; as well as fiscal policies to keep the Zanu-PF elite from still eating while the drought, El-Nino and Mugabe’s megalomaniac power-struggle to keep himself on the Iron Throne in Harare.

The reality is that the Bond Notes are excess for keeping up the ZANU-PF and the long-term President Mugabe. His Excellency Robert Mugabe have kept total control of the state and the Ministers collecting the riches while the basic infrastructure, institutions and all the other parts of state are eating of the taxes, donations and little foreign exchange that comes after the international sanctions of the Zanu-PF reign.

Here is the recent excuses and the reality that might happen with the next move for Bond Notes in Zimbabwe; as the more debt for giving debt notes to citizens instead of giving them a currency that actually has value. Not just empty paper notes that doesn’t have value for the citizen or the businesses. Take a look!

Patrick Chinamasa

Early July the Finance Minister Patrick Chinamasa:  

“Zimbabwe will introduce what the central bank calls bond notes in October to counter a shortage of cash in the country. Exporters will be paid with the notes, credited to accounts at the central bank held on behalf of the companies, along with a 5 percent bonus that the minister, Patrick Chinamasa, said the government is happy to pay to encourage outbound trade” (…) “Unless there are exports, there would be no circulation in the market of any notes,” Chinamasa said in a July 17 interview in the Rwandan capital, Kigali. “No exports — no issuance of bond notes.” The notes, to be produced in Germany, will be printed “relative to the volume of imports,” he said” (Njini, 2016).

More reports early on the Bond Notes:

“THE Reserve Bank of Zimbabwe (RBZ) in is talks with the African Export-Import Bank (Afreximbank) and German printers, Giesecke & Devrient, to finalise an agreement on the printing of bond notes, a central bank governor has revealed” (…) “Mlambo said the central bank would not print bond notes beyond the agreed threshold of US$200 million. He said: “We are finalising a tripartite agreement right now that we don’t print beyond the agreed US$200 million. The International Monetary Fund (IMF) has an eye on this. On economic grounds, it will not be prudent to go beyond that amount.” (Financial Gazette, 2016).

“Hon. Majome asked the Minister of Finance and Economic Development to state:

  1. The date when the US$20m Africa Import Export Bank loan to back up the bond notes was concluded and whether its terms were published by the Ministry in the Government Gazette within the 60 days as required by section 300(3) of the constitution; and
  2. Whether the loan agreement has been referred to Parliament for approval in terms of Section 327(3) of the Constitution and also referred to the relevant Portfolio Committee in terms of the Standing Rules and Orders, if not, to state reasons.”

John Mangudya

On 27th July 2016:

Hon Chinamasa says: “Firstly, I want to clarify as I have already done before that the US$20m Africa Import Export Bank facility is not a loan. It is a facility that works as guarantee. Naturally, Government and the Reserve Bank of Zimbabwe will ensure that whatever is done is compliant with the law”.

About Zimbabwe’s inflation:

“According to a note sent to clients in July from Exotix Partners’ Head of Equity Research Kato Mukuru, that dollarization of the Zimbabwe economy created two problems.

  1. There has been too much reliance on the US dollar. The government moved away from the multi-currency regime and said it would conduct all of its transactions dollars. And since most of Zimbabwe’s trade is with South Africa, the strong dollar (compared to the rand) has made it more difficult for Zimbabwe to compete.
  2. Zimbabwe has been running a current account deficit since 2009. Zimbabwe has been exporting more dollars than its been importing, causing a shortage of dollars in the system” (Garber, 2016).

Liquidity problems could cause the government to de-dollarize the economy sooner than expected, warns BMI Research, and that would send the country back into a cycle of rapid inflation. From BMI’s note” (…) “Adoption of a local currency would inevitably result in a rapid increase in the supply of broad money, as the central bank looked to inject enough liquidity into the economy to alleviate the ongoing cash shortage, caused by the current reliance on the US dollar. Without a simultaneous increase in real production, this would increase inflationary pressures.” (…) “As for how high inflation would get, BMI believes that would “depend on the rate at which the RBZ printed the new currency,” but could easily surpass 30%” (Garber, 2016).

This is deep enough as the economic situation is not promising and with the current leadership under President Mugabe the rule of law and stability of the fiscal economic situation that Zimbabwe is already in. Together with the unstable levels of demonstrations that are righteous as the regime haven’t cared for the citizens in decades. The zombies and vampires in the Parliament have cared for their paychecks and not for the well-being of the average citizens. That is why they start with a new round of Bond Notes from the Reserve Bank of Zimbabwe. Peace.

Reference:

Njini, Felix – ‘Zimbabwe ‘Bond-Note’ Printing Linked to Exports, Minister Says’ (21.07.2016) link: http://www.bloomberg.com/news/articles/2016-07-21/zimbabwe-bond-note-printing-linked-to-exports-minister-says

Financial Gazette – ‘Zimbabwe in talks with Afreximbank, German  printers over bond notes’ (21.07.2016) link: http://www.financialgazette.co.zw/zimbabwe-in-talks-with-afreximbank-german-printers-over-bond-notes/

Garber, Jonathan – ‘Zimbabwe’s next move could trigger the return of ‘rapid inflation’ (10.08.2016) link: http://www.businessinsider.com/zimbabwe-could-trigger-inflation-by-moving-away-from-dollar-2016-8?r=US&IR=T&IR=T

Uganda Law Society Statement on 10th August Attack on the Courts and Members of the Legal Profession (11.08.2016)

ULS 10.08.2016 P1ULS 10.08.2016 P2ULS 10.08.2016 P3ULS 10.08.2016 P4ULS 10.08.2016 P5

UPF Dir. Human Rights/Legal Services, Erasmus Twarukuhwa Press Release on the Private Prosecution Case at Makindye court (11.08.2016)

UPF 11.08.2016 P1UPF 11.08.2016 P2

#ThisFlag Movement Press Statement 11.08.2016

ThisFlag Press Statement 11.08.2016 P1ThisFlag Press Statement 11.08.2016 P2ThisFlag Press Statement 11.08.2016 P3

Besigye: Behaviour of Kayihura supporters at Makindye court is unjustifiable (Youtube-Clip)

“FDC’s Dr. Kizza Besigye has said that his earlier plan to go to the court and watch as Gen. Kale kayihura was charged was thwarted because he received information that the police chief would not show up” (NTV Uganda, 2016)

Zanu-PF Exposed – Chiyangwa bares it all (Youtube-Clip)

https://www.youtube.com/watch?v=c1_GovkyR5Y

UPF Press Release on demonstrators at the Magistrates Court in Makindye (10.08.2016)

Polly Namaye

UPF Makindye Court 10.08.2016

Acie Lumumba | Time to look beyond the protests (Youtube-Clip)

https://www.youtube.com/watch?v=uLmDYSQSoVU

Letter to IGP Kayihura – “Re:Notification for Public Meeting at Makindye Magistrate Chief Court (09.08.2016)

Notice to IGP Kayihura Makindye

So the hired Police demonstrators that cause violence is accepted by the Police Commander, but the Political Activist are not allowed to enter Makindye Court today. The Impunity and nonsense from NRM-Regime an Uganda Police Force are shown as the Character of lack of serious morals are unbound by any serious action. IGP Kale Kayihura proves his arrogance and his bitterness towards fellow citizens with this act. Peace.

PS: thanks to Honourable Frank Mwijukye for uploading this online. 

Opinion: IGP Kayihura court case adjourned as the State suffers to produce key witnesses; also the violent demonstrations against petitioners show the impunity!

Makindye Court 09082016

“If someone files a case against you that you believe to be foolish & lacking in merit, don’t get a mob. Get a lawyer. They know what to do” – David F.K. Mpanga

The Police Brutality case at Makindye Court today where weak and flawed as the IGP Kale Kayihura have for two days now let the people in his honour be able to demonstrate against his courtship. Unprecedented in the Uganda we know today where the Police crackdown on any dissidents and any reactions of the citizens. So the ironic part is that it is a just cause to celebrate and demonstrate for justice for the Police Officers, which brutality attacks innocent civilians. But if the civilians and citizens demonstrate for another cause that isn’t for the state than the Public Order Management Act (POMA) comes to effect immediately.

“Pro-Kayihura placard-carrying protesters inside Makindye court where police boss is expected. Nicholas Opiyo, a lawyer who has been at the court since 6:00AM says the group was transported to the court and “deployed” by the Kabalagala DPC” (NBS TV Uganda, 09.08.2016).

Therefore the case in Makindye Court, we’re profound and important for the Citizens versus the Police. Because the Police is there for the Citizens and not for the Police itself or the ruling regime; the Police might act as an prolonged arm for the ruling regime, but in theory they should represent and secure the safety of all citizens not only the Executive and his NRM Elite.

Makindye court has allowed Director of Public Prosecution to formally file application for consideration to join case as court adjourns to 29th August. IGP Kayihura and seven other officers have failed to appear in court” (NBS TV Uganda, 09.08.2016).

Makindye Court 09082016 P2

So as we speak and nobility of men is supposed to be profound, but that is dimming and getting grounded at Makindye Court as the Police Officers charged never got summoned and the Inspector General of Police (IGP) Edward Kale Kayihura never turned up. As the importance of the matter wasn’t there; he and the Police Officers knew it was fraudulent as all the political cases against opposition in courts this year. Therefore the validity of showing up to it was pointless. The result of it and the determined subject doesn’t need take a stand for the questionable behavior of the Police.

There the Mayor of Kampala who appeared in Court wrote this:

“I can’t believe what am witnessing at Makindye court; total breakdown of rule of law. Now confined in the Magistrate’s chambers as the situation in court’s premises is fluid” (Lord Mayor Erias Lukwago, 09.08.2016).

Lukwago 09.08.2016

The irony about the demonstrators they we’re all shipped in and didn’t become more. As the Police Officers have let them in peace; there is also evidence of that one guy have written the placards with the same handwriting in 5 languages. As the supporters of the Police are hired men who demonstrates; therefore the hired demonstrations are okay in Uganda, but public dismay is cracked down with force from the Police Force. Therefore the Court and Case in the Courtroom today even it if has released or given any indication of justice today.

As the Police gave the Police Supporters leeway that they even went into vandalism and not only threw water on Lawyer Abdalla Kiwanuka, but also went into destroy the lawyers car on the outside of the Court.

The men like Lord Mayor Erias Lukwago and others who went to be witness in the case against the Police have been left behind and under Court Arrest by the same Police Force that we’re in question for their behavior. Also with his is Kawempe Local Councilor Muhammed Ssegirinya who presided with the friends of Lukwago.

“Barricaded in the Chambers of the Chief Magistrates Court of Makindye. Rowdy protesters want to beat up lawyers representing complainants” (Nicholas Opiyo, 09.08.2016).

Reported also be even getting to the Court, there we’re not rumors but in the press that a set of witnesses had backed out of affidavits and their testimonies as the men didn’t show up or wanted to. Because the reports saying some men or woman where paid by the Police to be silenced, if so that is worrying and signs that the Police doesn’t care to what extent they follow orders for the Executive in the republic.

“3 of the 5 witnesses pulled out saying they were bribed to testify” (Nduhukire NTV, 09.08.2016).

Instead of showing up for his court case IGP Kale Kayihura continued with his ordinary work and we’re meeting with foreign dignitaries as the Algerian Police delegation at the Central Police Headquarters in Kampala, as that is more important that actually answering for his misgivings and the brutality from under his leadership. Just like he didn’t care to show up for the Parliamentary Committee recently to answer their either. If you ever wonder if the man thinks he is above the law, the reality is that he thinks he sets the law and justifies it by being the General and Police Commander.

Because of the created havoc on the outside of Makindye Court Lord Mayor Lukwago had to be evacuated by the Police Officers through the Police created protest. The same lawyer of Chapter4Uganda Nicholas Opiyo was saying to the Police it wasn’t safe to leave the premises for him as the demonstrators are in lynching mode.

How Lukwago left the Court:

“VIDEO: Lord Mayor Erias Lukwago has safely left Makindye court under heavy police protection from pro-Kayihura protesters ‪#‎KayihuraInCourt‬ HT/@micoh” (NBS TV Uganda, 09.08.2016)

So let it be known to what extent the IGP Kayihura and the NRM goes to silence the ones questioning them. This happens as the mob of demonstrators are now going against the petitioners who questioning the brutality of the Police towards demonstrators and civilians who pass by Opposition Politicians.  The men demonstrating for Kayihura can throw stones and act as vigilantes without any cost, but if somebody else did for a cause against the ruling regime they would been taken to prison, to court or being beaten senseless in the streets.

This is just not justice for none, not for the citizens and not for the Police. The questions remain if the demonstrators we’re doing for somebody else if they would have done while being guarded by the Police officers themselves. The Justice and rules of law are a charade at this point. The legality and the means of laws to regulate and set the standard for civilian liberty is doubting when the demonstrators works without any sanctions. They we’re shipped by the Police early in the morning and harassing the petitioners after the Court where adjourned. This proves the mentality of the rules and fairness in the Republic. Something the IGP and President Museveni must be so proud of. Peace.