Former Education Minister David Coltart has said that he expects commercial banks to challenge the legality of Statutory Instrument (SI) 205 of 2018 saying they have the primary duty of care towards their clients not Government.
Last Friday, Finance Minister Mthuli Ncube gazetted SI 205 of 2018 (Rate and Incidence of Intermediated Money Transfer Tax) Regulations. Coltart said if commercial banks do not challenge SI 205 of 2018 it will be another negligent act by them. Speaking on Twitter Coltart said:
Zimbabweans’ anger has been directed against the RBZ & Ministry of Finance regarding the destruction of their deposits. However commercial banks are also complicit by negligently not seeking to protect their clients’ money. I expect them to challenge the legality of S.I. 205/18.
If Commercial banks do not challenge the legality of S.I. 205/18 and simply start deducting money from their clients’ accounts this will be yet another negligent act by them. Banks’ primary duty of care is towards their depositors not Government.
Top Harare lawyer Chris Mhike told the Daily News yesterday that Statutory Instrument (SI) 205 is defective and ignores the letter and spirit of Section 3 (3) of the Finance Act, which compels the Finance minister to present to Parliament for deliberation, a Bill carrying proposed changes to financial laws.