Briefing Paper

Implications of Zimbabwe’s Constitutional Amendment (No 2) Bill on Fiscal Governance and Public Finance Management

The policy brief addresses key questions on the implications of Clauses 10, 17, 18 and 23 of Constitution of Zimbabwe Amendment (No.2) Bill on public finance management in Zimbabwe. The analytic study sought to provide a thorough insight and assessment on the repercussions of removing the power of Parliament in approving agreements with foreign organisations and entities. Particular attention was paid on the impact on debt management, transparency and accountability. The brief, inter-alia, also looked at the effect of creating the office of the Public Protector on public finance management. Based on the systematic review of the proposed amendments, the policy brief recommended that there is need for Parliament to retain its power and authority to approve all agreements which impose fiscal obligations on the State. Clause 23 which alienates the powers of Parliament in approving agreements with foreign organisations and entities must be severed from the Bill as it will undermine the role of Parliament in fiscal governance. This will undoubtedly undermine Parliament’s oversight and representative functions which are the hallmarks of effective governance. In addition, and for purposes of clarity and certainty, the Constitution must provide a definition of what is a ‘foreign organisation and entityā€¯. Currently, such definition is not provided. The brief supports Clauses 17 and 18 which seek to introduce the Office of Public Protector. This office, given adequate resourcing and independence, may promote fiscal discipline, particularly in the public sector where successive Auditor General’s Reports have revealed recurring financial malpractices and general non-compliance with public finance management statutes.