Devolution shot down

ZwNews.com

Minister of Justice, Legal and Parliamentary Affairs Ziyambi Ziyambi has blocked the insertion of clauses to infuse devolution in the Companies and Other Entities Bill.

Ziyambi believes the issue of devolution, decentralisation of company offices should be at the minister’s discretion.

The matter came up for discussion in parliament recently, during a debate on the Bill at the Committee stage, after Hon Mushoriwa had called for clauses to be co-opted in the country’s statutes in reflection of the state’s embracement devolution of power.

Hon Mushoriwa said; “I believe that given the fact that we have entrenched the issue of devolution, all the laws of this county should recognise the question of devolution to the extent that the companies offices shall be located in Harare, Bulawayo, Mutare, Masvingo, Gweru, Chinhoyi, Gwanda, Lupane, Marondera and Bindura so that they reflect all the capital cities or the provincial cities of every province.”

He said gone are the days where people continue travel all the way from Marondera, Mashonaland Central and Mashonaland West to come to Harare, and called for the need to have the amendment so that to cover all the provinces.

But Ziyambi said the Mushoriwa’s concerns are well covered in the Bill.

“Even though the Bill stipulates that it will be located in Harare and Bulawayo. It then goes further to say and any other locations that the Minister may designate.

“As we progressively realise that, the Minister will ensure that wherever there is a necessity to have a company’s office, it will be established.

“We progressively realise that the Minister will ensure that wherever there is a necessity to have a company’s office, it will be established, so your fears are already covered and it will be attended to in the way it is couched, I thank you.” He said.

Hon. Madzimure backed Hon. Mushoriwa’s argument saying certain things should not be relegated to the minister’s decree, who may be biased and sway

“You as the Minister know exactly that Mutare and Gweru are busy towns as far as company registration is concerned.

“Instead of you trying to use your discretion later, why can you not just include it in the Act at this particular point so that you will not have any other problems again or to wait for people to make submissions,” he said.

Hon. Madzimure said the laws should promote the easy of doing business as this would be in line with the Zimbabwe is open for business thrust country is trying to embrace, and would minimize all the hurdles that may prevent someone to do something that is formal.

“Let us make it easy for our people to do business. Why can we not designate Bindura, Marondera, Mutare, Gweru and Masvingo as these towns are busy and we are done Minister?

“I think this is a very simple suggestion that you can just do right now,” he added.

However, Hon. Dexter Nduna opposed the devolution proposal saying; “I believe that it should not be restrictive, It should be left open ended as it is, giving discretion to the Minister,” he said.

“Where we have the Special Economic Zones Act that the Minister can use his or her discretion in tandem with the operation of the registration of the companies…” he added.

He went on to say that, there is some instances in which business in greater in certain places, when compared to provincial capitals; “for example Chegutu’s Gross Domestic Product (GDP) certainly far outweighs the other GDPs of other provincial capitals.

“So, if we put in names, we impede upon such entities that can be designated as Special Economic Zones because on the amount of business that is generated in the localities.”

Added that it was his view and hope that the Minister should be given, the discretion by leaving it open ended.

Apparently, Hon Mushoriwa came back suggesting, that the Bill should at least have a provision that talks of the decentralisation in each and every province, to leave it open ended as opposed to mentioning names.

“This Government has been saying that they want to have ease of doing business in this country. What they are doing here is actually making it difficult.”

“Why should a person be forced to come to Harare if you want to lodge your company’s papers?” He asked.

Added that if the government is committed to the issue of devolution, then the issue of devolution should start now, the laws that we enact in this august House speak to the devolution agenda and there is no better way to start than making sure that all provincial capitals have got the Registrar of Companies offices.

But Ziyambi said by making it a must that government should ensure that offices are in all the provincial capital, then it means a budget has to be put aside for that expenditure.

Hon Nduna came back saying since the Bill talks of registration of companies in terms of computerization of the Registry, thus e-governance, there is no need to have lots physicals of offices.

The ZANU-PF party which have been losing elections in local authorities has been against the matter of devolution, in preference of centralised governance. The party stands accused of interfering with in local authorities issues, thereby undermining how local governments do about their duties.

ZANU-PF have for years been blaming opposition parties of failing to run local authorities efficiently, but the opposition maintained that the failure by it to provide efficient service delivery, was a result of problems affecting the central government.

Movement for Democratic Change-Alliance, president Nelson Chamisa told a rally in Chiredzi over the weekend that local authorities are failing to discharge their mandate due to the rot in central government.