Sovereign Wealth Fund of Zimbabwe Bill (as amended by Nat Assembly 3 Sept 2014) - HB 6A-2013

Original version: H.B. 6, 2013
Gazetted:  10th January 2014

National Assembly

First Reading & referred to Parliamentary Legal Committee: 

PLC report (non-adverse): 

Second Reading: 

Committee Stage (amendments):  3rd September 2014 

Referred back to PLC:  3rd September 2014 

PLC report [non-adverse]:   16th September 2014

Third Reading & Transmission to Senate as H.B. 6A, 2014:   17th September 2014

NOTE BY VERITAS

During  the Bill’s Committee Stage on 3rd September the National Assembly approved the following changes to the Bill, all proposed by the Minister of Finance and Economic Development:

- amendments to clauses 2, 3, 6, 7, 12, 14 and 18

- the insertion of a new clause, to be numbered 22, after clause 21

- the consequential renumbering of original clauses 22 to 30 as clauses 23 to 31

- amendments to renumbered clauses 23, 24, 25

- insertion of  two new clauses, 32 and 33.

All these amendments are reflected in the text of the Bill in this document.  Insertions are indicated by the use of blue bold font, deletions by red strikethrough font.    NB The Bill’s Parliamentary number is now H.B. 6A, 2014

SOVEREIGN WEALTH FUND OF ZIMBABWE BILL, 2013

MEMORANDUM[1]

The purpose of this Bill is to make provision for the establishment and objects of the Sovereign Wealth Fund of Zimbabwe (“the Fund”), and to set out the powers of Sovereign Wealth Fund of Zimbabwe Board (“the Board”). In more detail the Parts of the Bill provide as follows—

Part I

Clause 1 sets out the Bill’s short title and date of commencement. Clause 2 contains definitions of terms used throughout the Bill.

Part II

This part provides for the establishment of the Fund. Clause 3 provides for the establishment of the Fund, the ownership of which is vested in the Republic of Zimbabwe with the President as trustee and patron. The objects of the fund are set out in clause 4 which include among others the support of the development objectives of the Government and supporting fiscal and macroeconomic stabilisation.

Part III

This part provides for the establishment of the Board and related matters. Clause 5 provides for the establishment of the Board which shall be responsible for the administration of the Fund, and its corporate status. The composition of the Board is set out in clause 6 while its specific functions are provided for in clause 7.   The Board shall appoint a Chief Executive Officer and staff as provided for in clause 8. The Chief Executive Officer shall be subject to the general control of the board and he or she shall be responsible for carrying out the policy decisions of the Board and the day-to-day administration and management of the affairs of the Board among other responsibilities. Clause 9 makes provision for the Board to appoint investment managers, either as employees of the Board or as independent contractors. The manner in which contracts and instruments of the Board are entered into is stipulated in clause 10, which also provides for the seal the Board may adopt for the purpose of affixing it to any document it executes, authenticates or endorses. The Board in clause 12 is required to submit annual reports to Parliament through the Minister responsible for its administration.

Part IV

Clause 13 defines the international “Santiago Principles” for the operation of sovereign wealth funds (see Third Schedule).  Deposits into and accruals to the Fund, the segregated accounts of the Fund, the financial year of the Fund, the annual investment mandate and budget of the Fund, the charges on the Fund, the payment of dividends to the State, the accounts of the Board and appointment of an internal auditor and the audit of accounts are provided for in clauses 14, 15, 17, 18, 19, 21, 23 and 24 respectively. Clause 16(1) appoints the Reserve Bank of Zimbabwe as the primary custodian of the Fund while clause 16(2) permits the Board to open one or more bank accounts into which monies received by the Fund may be deposited. Clause 20 provides for the establishment and operation of a general reserve of the fund.

Part V

This part makes provision for general matters including in clause 25 the exemption from liability of the Board and its members, employees and agents, and (clause 26) the requirement that the Board complies with host country laws in making its investments outside Zimbabwe. The Board is specified to be a financial institution for the purposes of the Money Laundering and Proceeds of Crime Act [Chapter 9:24] (No. 4 of 2013). Clause 27 and 28 provide for the preservation of secrecy by Board members and employees and the offence attached to the use of confidential information for personal gain. Clause 29 empowers the Minister, after consultation with the Board to make regulations for all matters which will be required or permitted to be prescribed that it considers necessary for carrying out or giving effect to the Act.

BILL

AN ACT to provide for the establishment of the Sovereign Wealth Fund of Zimbabwe and its objects, management and control; to provide for the Board of the Sovereign Wealth Fund of Zimbabwe and its functions; to provide for the appointment of the Chairperson, Chief Executive Officer, staff of the Board and investment managers;  to provide for the allocation and disbursement of money from the Fund; to amend the Zimbabwe Mining Development Corporation Act [Chapter 21:08]; and to provide for matters incidental to or connected with the foregoing.

Enacted by the President and Parliament of Zimbabwe.



[1]               Note by Veritas.   The text of the Memorandum remains as originally gazetted; it has not been changed to reflect the changes made during the Committee Stage.

 

Download File: 

Tags: