PLC Adverse Report on Deposit Protection Regulations - SI 156 of 2013

In pursuit of its constitutional mandate as provided for in section 152 of the Constitution of Zimbabwe, The Parliamentary Legal Committee met on the 4th of December 2013 at 0900hrs and 9thof January 2014 at 1000hrs to consider inter alia Statutory Instrument 156 of 2013. After deliberations, it unanimously resolved that an adverse report be issued in respect of Statutory Instrument 156 of 2013, gazetted in the month of November 2013, due to the following considerations:

Statutory Instrument 156 of 2013 – Deposit Protection Corporation Regulations, 2013

Statutory Instrument 156 of 2013 is issued by the Minister of Finance and Economic Planning in terms of section 64 of the Deposit Protection Corporation Act [Chapter 24:29], which is the enabling legislation.  The Statutory Instrument is not in violation of the Constitution or ultra vires the parent Act but that in issuing an adverse against the Statutory Instrument the Committee is exercising its powers in terms of the provisions of Standing Order 201 of the National Assembly which provides that:

Apart from its mandate specifically provided for in section 152 of the Constitution, the Parliamentary Legal Committee shall have the following additional terms of reference:

201     (2) The Parliamentary Legal Committee:

(a) may call for the correction of any error or omission in any Statutory    Instrument or bill;

The proposed section 15(2) (a) of the Statutory Instrument 156 of 2013 provides that;

15.       (2) A member institution shall notify the Corporation in writing of any of the following events, within seven days of the event –

  1. a substantial withdrawal of deposits from the member institution; or

This section, as it reads, is unnecessary because it is already provided for in another Act of Parliament, i.e. the Bank Use Promotion and Suppression of Money Laundering Act Cap:24:24  and thus, in order to address the objectives of the Statutory Instrument, section 15(2) (a) must be amended to restrict the provision to shareholders or  related institutions because they have a direct interest with the banks. The Committee recommends that section 15(2) (a) be amended as follows;

15. (2)           (a) a substantial withdrawal of deposits by a shareholder or a related institution from the member institution; or

Furthermore section 34 of Statutory Instrument 156 of 2013 is a meaningless provision and therefore must be removed.

Accordingly, the Committee resolved that the section 15(2) (a) of the Statutory Instrument 156 of 2013 be amended as recommended.

 

Hon. J.T Samukange

CHAIRMAN

PARLIAMENTARY LEGAL COMMITTEE

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