Thread by @shingaiRndoro

🔥 💡 Thread

1/ @ReserveBankZIM is expropriating forex, which is a form of property.

This has led to the financial misery of mining companies, farmers & manufacturers.

africanminingmarket.com/riozim-shuts-d…

@czionline @ZEPARU1 @MhonaFelix @ZimFact @PaulNyakazeya @kukurigoZW @newswireZW

2/ Background of how its a form of property.

When non-exporting entities sell their goods&services locally, they are required 2 bank all their earnings.

The businesses remain in full control of their earnings & the deposits are reported as national savings.
@ZimTreasury

3/ #Savings are the difference btwn the income & consumption & is a gauge of a nation's financial health, as investments are generated thru savings.

Household&corporate savings are the source of borrowing for a public&private sectors & individuals.

4/ When non-exporting businesses sell their goods&services, they are NOT being asked 2 surrender 2 the RBZ a part of their earnings & 2 liquidate the balance within 30 days.

5/ Any business concern that is into exporting activities generates its sales revenue out of entrepreneurial ingenuity, funding, production & distribution.

It pays taxes like any other local business concern.

6/ @ZimTradeAlerts @zimtrade has this simple 12 Steps Guide for the benefit of Zimbabwean exporters & would-be exporters,
tradezimbabwe.com/exporting-from…

7/ Sales revenue produced by non-exporters & exporters is a form of property, i.e. "anything that a person or a business has legal title over, affording owners certain enforceable rights over said items."

8/ There are 3 broad forms of property:
⏩1. private property,
⏩2. public property, and
⏩3. collective property

9/ #PrivateProperty: this is distinguishable from public property, which is owned by a state entity; & from collective property, which is owned by a group of non-governmental associations.

10/ There are four components of property rights:
⏩1. right to use,
⏩2. right to earn income from the good,
⏩3. right to ownership cessation by transferring to others, altering, abandonment or destruction, &
⏩4. the right to enforcement of property rights.

11/ Revenue generated from export sales are a form of the cash generated by a business & its a form of property belonging to the exporter.

This is the same as the cash generated by a non-exporting business. The cash belongs to the producer.

12/ The RBZ requires that tobacco merchants, cotton ginners, mining companies & exporters in the manufacturing sector surrender a portion of their forex earnings to the central bank at a price determined by the central bank.

This amounts 2 expropriation. Explanation follows...

13/ #Expropriation is an act of gvt. claiming privately owned property against the wishes of the owners, ostensibly to be used for public purpose. Its done with or without the owner's consent with compensation paid unilaterally determined by the expropriator.

14/ #Expropriation differs from confiscation as confiscation is done without the owner's consent & without compensation.

15/ By definition, surrender is “to give up or hand over (a person, right, or possession), typically on compulsion or demand.”

Exporters are being asked to surrender forex earned on compulsion or demand by the RBZ.

16/ The RBZ forex surrender&liquidation regulations (SIs) arent provided for in the Exchange Control Act & they violate the Constitution of ZW.

Here is the evidence...

17/ Under s71(2) of the Constitution of ZW, private property is protected, where every person has the right, in any part of ZW, to acquire, hold, occupy, use, transfer, hypothecate, lease or dispose of all forms of property, either individually or in association with others.

18/ The Expropriation Limitation Clause is s71(3), which guards against random, arbitrary & indiscriminate expropriation of private property.

@brains_muchemwa @kudzie_sharara @kmugova @tatenda_jemwa @PriscaMutema2

19/ s71(3), provides the conditions for compulsory acquisition:
a. deprivation has 2 be in terms of a law of gen. application;
b. deprivation has 2 be necessary;
c. acquiring authority has 2 follow the procedure; &
d. deprived party shld be able challenge in a court of law.

20/ Under s71(3)(i)-(iii), the gvt is required 2:
i. give a reasonable notice 2 acquire the property,
ii. pay fair&adequate compensation b4 the acquisition of the property or within a reasonable time after the acquisition, &
iii. allow owner to appeal to the court of law.

21/ Under s71(3)b(i), when the deprivation of property is necessary, it has 2 be for any of the following reasons:
i. in the interests of defence,
ii. public safety,
iii. public order,
iv. public morality,
v. health or
vi. town & country planning.

Why is the RBZ doing it?

22/ As one can notice, both the RBZ's surrender requirements & compulsory liquidation of export earnings is not by consent because its compulsory.

Why?

@HeraldZimbabwe @SundayMailZim @zfu_official @TimbZim @mmawere

23/ This is bcoz these 2 policy regulations for surrender & liquidation are a blatant violation & disregard of the constitution of Zimbabwe in respect of:
i. Due process of the law [s69(1)-(3)],
ii. Property rights [s71(2)], &
iii. Permissible or due expropriation [s71(3)].

24/ Further,
i. the Gvt doesn’t own the forex it is compulsorily getting from exporters. Forex is private property & subject 2 property rights.
ii. allocating forex 2 anyone is itself against market economy principles. Anyone needing forex shld source own forex in the market.

25/ With this understanding, has the collective leadership of Chamber of Mines, @czionline, @ZNCCNational protected their exporting members whose property is being robbed?

Do they deserve to remain in office?

@BrezhMalaba @RespectGwenzi @BusisaMoyo @ShingiMunyeza @TrevorNcube