FORMER Finance minister Tendai Biti yesterday tore into the Mutapa Investment Fund, describing it as an unconstitutional capture of the country’s funds.
Biti made the remarks in an interview with Heart & Soul TV, an Alpha Media Holdings online TV and radio station.
President Emmerson Mnangagwa on September 19 gazetted Statutory Instrument (SI) 156 of 2023, which changed the name of the Sovereign Wealth Fund of Zimbabwe to Mutapa Investment Fund.
The SI brought 20 State-owned entities under one roof.
“The instrument does not meet the test of the law and must be rejected as it is illegal. This law was unnecessary,” Biti said.
“They are transferring the public shares into a private vehicle. The government already owns the shares, I think the issue is to sell shares as quickly as possible without public scrutiny.”
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Mutapa Investment Fund is a State-owned investment fund established from the balance of payment surpluses, official foreign currency operations, the proceeds of privatisation, government transfer payments, fiscal surpluses and resource earnings.
The affected companies are Defold Mine, Zupco, Kuvimba Mining House, Silo Investments, National Oil Company of Zimbabwe, Cold Storage Commission Limited, PetroTrade, POSB Bank, NetOne, National Railways of Zimbabwe, TelOne, Arda Seeds, Zimbabwe Power Company, PowerTel Communications, Allied Timbers, Telecel, Air Zimbabwe, Industrial Development Corporation of Zimbabwe, Cottco and Hwange Colliery Company.
“They have been trying to privatise these public entities for a long time,” Biti said.
“The law is very clear. Any procurement in Zimbabwe must be subject to public accountability and transparency.
“Under section 340 of the Constitution, neither the President nor Ministry of Finance secretary George Guvamatanga could seek not to exclude the operations of Public Procurement Act from any transaction.”
The SI has been condemned as a looting gimmick.
A week after the renaming, Mnangagwa on Friday moved to announce that the firms under the fund will not be subject to the Public Procurement and Disposal of Public Assets Act.