Africa-Press – Zimbabwe. OPPOSITION MP for Makoni Central has warned of complete erosion of ZWL Community Development Funds (CDF) by inflation if the National Assembly fails to successfully negotiate for an allocation on the Reserve Bank of Zimbabwe’s Auction System.
Speaking in Parliament, MDC-T MP, David Tekeshe, said the CDF funds were lying idle because no-one is willing to trade with RTGS.
Tekeshe appealed to Parliament to engage the RBZ as part of efforts to secure foreign currency.
“My point is similar to that of Hon. Munengami. I got into a shop today and I was shocked to find that the local currency was around ZW$6 000 and ordinary people can no longer afford bread,” Tekeshe said.
“We need to come to the point of CDF, which is just lying idle because no-one wants the RTGS and they charge the black-market rate.
“The request is that if Parliament could negotiate to benefit from the auction floor so that this is looked into because ZW$21 million has gone down to US$4 000 and is no longer enough for the constituency,” he added.
In response, acting speaker of Parliament, William Mutomba, said the Minister of Finance has a case to answer in line with spiralling exchange rates.
“This is a valid point Hon. Member. We are going to notify the responsible authority, particularly the Minister of Finance and Economic Development, so that he looks into the issue of CDF which is ZW$21 million,” Mutomba said.
“Indeed, it has been eroded by inflation and as inflation continues, it continues to lose its value,” he added.
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