Government pays US$19m blocked funds

GOVERNMENT has paid out US$19 million to various claimants under blocked funds but warned that it will not entertain any third party representation and deviation from agreed settlement models, Finance and Economic Development permanent secretary, Mr George Guvamatanga, has said.

The amount paid to date since June last year is part of US$51 million to be paid out under the scheme.

In a statement, Mr Guvamatanga said Government through the Treasury, assumed the Blocked Funds through the Finance Act No.7 of 2021, which provided the list of claimants approved and registered by the Reserve Bank of Zimbabwe (RBZ) through the commercial banks of the claimants.

The move was to facilitate the assumption of Blocked Funds by the Government from the Central Bank following a series of currency reforms from the multi-currency system to the introduction of mono-currency and a flexible exchange rate regime.

In November 2021, a set of settlement modalities were approved by Cabinet and Parliament, which include cash payments and issuance of Zero-Coupon Treasury Bonds.

“All claimants of less than US$1 million will be paid in cash, over the period of five years beginning June 2022 basing on the RBZ approved and registered claimants list as at 30 June 2022 amounting to US$51 million,” Mr Guvamatanga said.

“To date, Treasury has made payments amounting to US$19 million, with a balance of US$32 million, which will be paid from April 2023 to September 2026.”

Mr George Guvamatanga

The permanent secretary said all claimants with amounts above US$1 million were issued with zero-coupon treasury bonds ranging from three to 20 years based on the outstanding amount.

To that end, he said treasury bills amounting to US$1.485 billion have been issued adding that the Treasury Bonds are tradable, have liquid asset and prescribed asset status.

Prescribed assets are bonds or securities issued by the Government, local government, quasi-government organisations or any other bond that may be accorded the prescribed asset status.
However, he noted that a significant amount of appeals from claimants for the deviation from the approved settlement modalities have been lodged with the Treasury.

“These appeals cannot be acceded to and are not sustainable. The claimants are, therefore, advised that Treasury will adhere to the approved settlement modalities,” said Mr Guvamatanga.

In the same vein, he said the Treasury also notes with concern the appeals being made for payment through purported representatives/agents/consultants of the claimants.

“Treasury wishes to advise that it will not deal with third parties on claims of Blocked Funds and will not entertain anyone claiming to be representatives of the claimants of Blocked Funds,” he said.

“Claimants are, therefore, advised to directly approach Treasury if there are any issues/discrepancies requiring attention. This will assist in ensuring that all the claims are diligently settled in line with Treasury’s Governance Charter.”-chronicle.cl.zw