Bond coins rejection garage angers motorists
A LOCAL fuel service station, Glow Petroleum, has irked motorists in Bulawayo by refusing to accept bond coins as a medium of transaction.
Bonds coins are legal tender in Zimbabwe with their value indexed at par with the United States cents.
The coins work alongside a basket of currencies that include the South Africa rand and the Botswana pula.
Irate motorists who spoke to Business Chronicle yesterday lashed out at the owners of the newly established service station in the city.
“Do they think we will always get the US$ to buy fuel from them? Isn’t bond coins are also money and can be used to transact anywhere in the country,” said Mr Busani Maphosa.
Another motorist Mr Godfrey Chauke said: “What I would like to know is whether some companies are exempted from using the bond coins. If not, then why is this filling station doing it?”
Glow Petroleum managing director Mr Aaron Chinhara said they were not accepting bond coins for administrative reasons. “These people are not sitting at a counter and do not have a till to put the coins in.
“Let us not talk about the legality of the bond coins because when the Reserve Bank (of Zimbabwe) introduced them, the governor (Dr John Mangudya) said they were change, not legal tender. I dare anyone to take me to court over that, I will not take bond coins.”
Dr Bongani Ngwenya, an economist, said exception of goats.
He said livestock drought mitigation projects over access to feed, coupled with rehabilitation of water points have helped farmers.
In July, Industry and Commerce Minister Mike Bimha said the Government would soon avail a $2,3 million facility sourced from the African Development Bank to support the beef and leather value chain in Matabeleland region.
Towards the end of last year, AfDB promised availing funding for the support of Zimbabwe’s beef and leather value chain technical assistance project.
The overall objective of the technical assistance project is meant to catalyse the country’s economic growth and contribute in addressing Zimbabwe’s fragility through reviving the beef and leather industries.
The project will include a platform for stakeholders aimed at enhancing dialogue the rejection of legal tender could have dire consequences for the business entity.
“This business could find itself in serious trouble with authorities. Even if authorities choose not to enforce the law, the truth remains that bond coins are legal tender and rejecting them is not justifiable at all.”
—@BiancaMlilo at national level, among stakeholders (public and private) in the beef and leather value chain, for coordinated action.
Another component of the project is the business environment streamlining and reform aimed at facilitating support for the Government in its initiative to review and streamline reforms to the existing beef and leather sub-sector policies and regulations taking into account the stakeholders’ concerns in the value chain.
The project will also offer technical support for the design of a livestock information and traceability system as well as preparation of a proposal for dip tanks construction and rehabilitation, among others.
Presently, Zimbabwe’s leather industry is operating at a subdued capacity despite market opportunities in markets such as Sadc and the Common Market for Eastern and Southern Africa as well as abroad. —@ okazunga
Minister Patrick Chinamasa