The Sunday News
Dumisani Nsingo, Senior Business Reporter
THE Government intends to appeal against a High Court ruling, which declared unconstitutional, a Reserve Bank of Zimbabwe (RBZ) Exchange Control Directive converting sums in accounts originally designated in United States (US) dollars into Zimbabwe dollar-denominated accounts.
In a statement, Finance and Economic Minister Professor Mthuli Ncube yesterday said the Government and the RBZ did not agree with the conclusion in the judgment to the effect that the Exchange Control Directive is unconstitutional. He said the two parties (Government and RBZ) take the view that the court failed to give a proper interpretation to the directive.
“In the circumstances, Government and the Reserve Bank intend to file an appeal against the judgment. They are further fortified in this course of action by the fact that the court did not impugn the provisions of the Finance (No. 2) Act 2019 of the Reserve Bank of Zimbabwe Act (Chapter 22:15) which were based on the Exchange Control Directive in question,” said Prof Ncube.
He said based on the Government’s intent to appeal, the monetary arrangement put in place under the Exchange Control Directive would remain valid.
“Accordingly, Government and the Reserve Bank of Zimbabwe wish to assure the nation that the monetary arrangements which were put in place as a result of the Exchange Control Directive in question will remain in place pending the outcome of the appeal be noted in the next few days,” said Prof Ncube.
Last week the High Court ordered CABS to pay US$142 000 deposited by business partners — Ms Penelope Douglas Stone and Mr Richard Harold Stuart Beatiea into their business account belonging to the financial institution within seven days. The business partners had approached the courts protesting having their money converted to the local currency.
The legal fight between the business partners and their bank spilled into the High Court following RBZ exchange control directive RT120/2018 issued on 4 October, 2018. The ruling is from the lowest level of court that can handle such a matter and the decision may still require confirmation by the Constitutional Court in terms of Section 175 of the Constitution, legal experts said.
