Senate rejects Mugabe as trustee of Sovereign Wealth Fund

SENATE on Tuesday passed the Sovereign Wealth Fund (SWF) of Zimbabwe Bill with some Senators demanding the removal of a clause which said President Robert Mugabe should be a trustee of the fund.

VENERANDA LANGA
SENIOR PARLIAMENTARY REPORTER

The Bill, which creates a fund to be set aside for use during crises, was brought before Senate by Finance deputy minister Samuel Undenge.

According to Undenge, other African countries like Angola and Botswana already had a SWF from their natural resources like diamonds, which they would fall back on to pay for pension

obligations, provide capital injections in the event of crises or to ensure that future generations benefitted from the extraction of finite resources.

“The advantages of the Sovereign Wealth Fund are that it protects and stabilises the budget and economy from volatility, diversifies the non-renewable
commodity exports, generates earnings giving greater returns than the foreign exchange reserves, generates savings for future generations, funds social and economic development, spearheads rural development and poverty alleviation, and ensures equitable distribution of the national wealth,” Undenge said.

“The SWF shall be funded from royalties not exceeding a quarter of the royalties’ payable in accordance with Chapter 7, Mining Royalties Duty and
Fees of the Finance Act Chapter 22 in respect of the following minerals: gold, diamonds, coal, coal bed methane gas, nickel, chrome, platinum and such other
minerals that may be specified for the purposes of Chapter 7 of the Finance Act Chapter 22 (4).”

Undenge said it will also be funded from a portion not exceeding one quarter of specified dividends on sales of diamonds, gas, granite, and other
extractables by or on behalf of the Minerals Marketing Corporation of Zimbabwe, as well as other sources such as grants from government.

He said an 18-member board will run the affairs of the fund.

Manicaland Senator Patrick Chitaka (MDC-T) suggested that to protect the fund from abuse the President should not be among the trustees.

“You either remove the President completely from being a trustee or you remove his direct involvement in the running of the fund so that he becomes a trustee with no potential conflict of interest,” Chitaka said.

Masvingo Senator Misheck Marava (MDC-T) said although the idea to set up a fall back fund was noble, he doubted the country’s capacity to raise money for that purpose.

13 Comments

  1. While the idea is a good one why the president all the time…commander in chief, patron of that, chancellor of these, patron of that and that…in addition to presidential duties plus family. Seriously, we have capable pple among us and lets not burden the president with things that we can do on our own…

    1. @Hey..Very true that H.E is the most valnerable spot from which they can siphon these millions.

    2. hey why this mugabe thing want evrything in his name he think wrong that zimbabwe is his own country no its for the pple we are oppressed guys

      1. H.E the President and Commander In Chief of the Zimbabwe Defence Forces does not want that role, but bootlicker is trying to put him there

  2. Well said @hey it looks as if some people can not do anything without the old man. It is time for us to focus on life after Mugabe. We want Mugabe to concentrate on other Presidential issues not him to put nose in every organization. We are failing as a nation because of these people who think that Mugabe is a star in everything. We must not treat a leader like our God.

  3. NO Mugabe should be the patron so that the money will be stolen under his nose by senior army officers and the politburo. It may also help pay for bonas phd at uz and chatungas phd at the same university. its criminal not to suggest him as patron. He is in fact Commander – in -Patron of the Fund.

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  5. Zpf pilfering legitimized

  6. govt is struggling to pay civil servants & has so far raised zero dollars towards zimasset & here is Undenge busy daydreaming of channeling some non existent extra cash to some SWF

  7. If you want people to believe your idea is genuine and can be of contribution to the creation of wealt to greater Zimbabwe, then give a name like Mugabe Foundation.

    If you say Mugabe will be the patron then, no one is bound to oppose you. This should stop herewith if we need to prgress as nation.

    Let,s show our abilities beyond the Commander in Chief. Lets be on our own and he must look at us with Envy and be proud of people around him. Do not look stupid and without innovation or courage.

    I can be anything without you so are you. So believe in yourself.

  8. Good Mauseless senators zvimwe muchirambawo. Hatidi vana yes man. The Senate is full of uneducated bootlickers like the Zanu pf chiefs.

  9. Is the senate made up of only the 2 MDC T senators. Besides all they did was to air their views on the matter.Does that amount to rejection by the whole senate. There is nothing in your report that shows the senate rejected Pres Mugabe to be Trustee. The problem with you newsday is that you behave like a political opposition outfit than a newspaper. Tell us true news not this silly political posturing.

  10. Is this just an academic exercise or what? Zimbabwe is to her eyes in debt, debts she cannot even service so where will she find the surplus money to put into this funds?

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