Zanu PF MPs revolt over cash shortages

ZANU PF MPs yesterday blasted Finance minister Patrick Chinamasa for being evasive over the unending cash crisis and his failure to rein in illegal money changers.
Zanu PF legislators, most of whom lost the ruling party’s primary elections like John Holder (Zvishavane Ngezi), Irene Zindi (Mutasa South) and David Chapfika (Mutoko South), fired the hardest hitting questions to Chinamasa in a major volte-face.

BY VENERANDA LANGA

Their opposition counterparts also put the Finance minister to task over similar issues.

“It boggles the mind, looking at the laxity by government, to take action on money changers in every city, and what is the policy decision that the Finance minister will take to curb the illegal money deals?” Zindi asked.

Chinamasa skirted the issue and said the Reserve Bank of Zimbabwe was in the process of authorising bureau de changes.

He said cash shortages were being caused by low exports and not necessarily the money changers.

Mabvuku-Tafara MP James Maridadi (MDC-T) said Chinamasa could easily deploy the police to arrest the money changers.

“These things happen at Eastgate, and minister, you live in Zimbabwe and not South Africa,” Maridadi charged.

As Chinamasa continued being technical and talking about exports, Chapfika then blasted him saying: “What we are discussing here is an important issue and you are hiding behind a finger and becoming technical.

“In other words, the minister is condoning the practice of illegal cash deals on the basis of technical issues of demand and supply.

“It takes us back to the (former RBZ governor) Gideon Gono era and the minister needs to be serious because this is not a technical issue, but a policy issue.”


Before that, Holder had asked Chinamasa to explain why the country continued to experience cash shortages five months after the new government, led by President Emmerson Mnangagwa, came into power.

In response, Chinamasa said Zimbabwe had shifted to a cashless society, hence, the need for most transactions to be done electronically without resorting to hard cash.
He added that the cash crisis could not be resolved overnight.

Chinamasa said point-of-sale machines had increased from 40 000 to 120 000, adding that soon, it would be a requirement for everyone in business to transact using the gadgets.

He said of the $97 billion transactions in the country, 96% of them were cashless. MPs said Chinamasa was clueless and asked him to issue a ministerial statement on the cash crisis.

22 Comments

  1. What J. Mawarire said is true that money changers have the big guys from government and reserve bank behind them thats why no action is taken.

  2. If an cash withdrawals audit is done at all the banks culprits will be exposed. Actually these responsible authorities should be the one fueling cash shortages by withdrawing large sums of money from the banks and selling it on the black market in the streets and abusing the Ecocash platform where players charge percentages ranging from 10 to 20 per withdrawal.

    1. at least they created jobs

    2. Cash out at 10-25%

      Why is Econet allowing its ecocash agents to sell money with impunity. It is a trait that there is no cash in the market to support cash in and cash out transactions but you see these agents getting busy cashing out several transactions everyday to desperate shoppers looking for cash to buy from Asian owned shops. Econet cannot tell us that transactions going through their agent lines are for genuine cash in and cash out activities no, they are aware their agents are selling cash and is doing absolutely nothing about it as it could be getting huge returns in the process.

  3. Meticulous Tumbleweed

    Without those money changers we go back to the dark ages, no ZESA, no fuel, no everything. As a nation our core has become entirely corrupt. The past ruling order was rotten to the core. The current one is simply the other side of the same coin. As a people the quickest opportunity we have to take money out of the country, we utilise it. The banking sector offers only disincentives for people to save. Populist labour laws enacted early ’80s to curry favour with labour are some of the causes that repel investment. Those guys that fought in war have to be accommodated result? bloated government, high taxes, no investment. If we happen to get a new president he and his cronies will look to feather their own nests through looting and plundering. We treat precious foreign currency like used condoms. Look at the Jap vehicles on our roads the expensive mercs, SUVs etc. Do we really need dstv? And these MPs and all of us act like we don’t know these things.

    1. Offer people the alternatives to DSTv and the Japanese vehicles and see if they would still need to import. My opinion is that your argument is shallow. Let the government implement policies that favour resuscitation of the industries that they killed through corrupton then you can begin to blame people for buying ex-Japs or subscribing for DSTv. Many other African countries such as Botswana, Zambia, Kenya and Nigeria do exactly the same as what Zimbabweans do now (drive ex-Japs and subscribe to DSTv) but they do not have to sleep in bank queues for cash.

  4. To expect the same guys who created the mess in the first place to be the ones to solve it is pure foolishness. ED & Chinamasa have proven beyond doubt that even after Mugabe’s departure, they’re just as clueless as they’ve always been

  5. Seems like parliament has started to work.

    1. Hapana apa, if you look at the MPs firing salvos at ChinaMasa you will notice that these are the people who in the just ended ZPF elections. They are just seeing a very hopeless situation after elections.

  6. ndimi maiti tivhotera ZANU PF. Talk of cashless transactions high rate yatiri kurohwa arikureva kuti haazi kuiwona here

  7. clueless lot hapana chitsva chinobuda why wasting time talking to failures they just need to be shown the open door next to them fo good and allow new blood to take over. Otherwise hakuna kunoenda nyika.

  8. Zanu pf MPs can see huge defeats in the coming elections the more the situaions is unresolved the less likely winning urban seats and peri urban constituencies where people need cash and are strugling to get it and are subject to % premiums when undertaking their transactions.

  9. suing money changers means the rates will skyrocket. chinhu chikasungisa chinodhura

  10. Expecting zanupf and its government to profer any solutions on the ensuing cash crisis is like expecting purified diesel to ooze from a mountain rock. Zanupf is clueless.

  11. Comment…arresting money changers is not the solution but to offer same service legaly with officials rate and resurrection of industry and boost confidence all ppl will bank their money and remove bond notes from mkt bcz bond notes chase away us dollars ,you will see money changers they will be out of business like in 2010.

  12. Kuwiriranakwakanakakugarakunzwanana Garanewakomurudohamandishe

    Comment…RBZ irikuda kupa marizinesi eBureau de change, kuna anaani? RBZ ngaiite kuti, zvinoitwa nebureau de change, zviitwe nemabhanga. Kwakuda kuita twenyu zve. Zvinoreva here kuti mabureau de change achabvisa mari mumigwagwa. Kana kuti, kungoda kuti vanhu varikuita izvi vasapiskwe nezuva, tonhorwe nechando, kana kuniwa nemvura vari mumigwagwa. Kungoda kuviga zvakaipa zvirikuitika mumigwagwa parinhasi mudzimba chete uku. Kana zviri zvekuti electronically system ndiyo yoshanda munyika, hazvirevi kuti mari ngaichiwanikwa mumigwagwa, isingawanikwe kumabhanga. Vanhuwe, ngatiite zvinoita kuti tikwezve vedzimwe nyika varikuda kuita makambani muno. Nekuti tikasadaro, apana anoda kuita kambani munyika inobhenga mari mumigwagwa kana kubureau de change. Vanhuwe, itayiwo siriyasi veduwe ndapota zvanguwo. Kuitira kuti, tisiyirewo vazukuru nhaka inehwaro hwakanaka.

  13. Yes it might e an advantage to have a cashless society but businesses are suffering most.You sell your products thru mobile banking or other platforms but getting that money from the banks is very hard and you face a challenge of failing to restock.REVIVE THE MANUFACTURING INDUSTRY PLEASE DEAR CLUELESS GOVERNMENT.we are tired of your childish excuses.

  14. this was long overdue, it really boggles the mind sure, you begin to wonder if these guys are serious about elections, the length of queues at banks has not changed at all, inflation is sky rocketing……………..how can we be buying bond paper at @10 per ream.

  15. Good points there but bear in mind Nigeria has oil and Botswana’s diamond based national income is commensurate with their relatively low population. I think it’s more realistic to compare ourselves with Cuba and learn from how they’re coping. Government is not an investor and can not resuscitate industry. What they ought to do is create conducive environment which this govt is incapable of. Savings are supposed to be the source for domestic investments. Our banks do not encourage savings. We do not innovate and export to the rest of the world. Our labour laws repel foreign investment..The list goes on and add to that Jap vehicles and dstv we find ourselves in the cesspool we are in. No matter who leads as president and in govt unless these issues are sorted nothing will change. It will always be have enough cash for everyone and 2007 era inflation or tame inflation and noone has sufficient cash.

  16. Meticulous Tumbleweed

    Good points there but bear in mind Nigeria has oil and Botswana’s diamond based national income is commensurate with their relatively low population. I think it’s more realistic to compare ourselves with Cuba and learn from how they’re coping. Government is not an investor and can not resuscitate industry. What they ought to do is create conducive environment which this govt is incapable of. Savings are supposed to be the source for domestic investments. Our banks do not encourage savings. We do not innovate and export to the rest of the world. Our labour laws repel foreign investment..The list goes on and add to that Jap vehicles and dstv we find ourselves in the cesspool we are in. No matter who leads as president and in govt unless these issues are sorted nothing will change. It will always be have enough cash for everyone and 2007 era inflation or tame inflation and noone has sufficient cash.

  17. During Gono era money changers were arrested but still had problems. Is arresting these people the real solution.

  18. This answer is for Meticulous Tumbleweek.
    Zims has Diamonds, Gold Platinum etc probally vast amounts more diamonds that Bots has.

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