The government has warned public and private schools against charging school fees exclusively in US dollars or linking them to illegal black market prices.
This comes against the backdrop of complaints from parents who say schools have pegged school fees in foreign currencies, with no option to pay at the prevailing Zimbabwean gold (ZiG) rate.
This contradicts President Mnangagwa’s call for Zimbabweans to embrace and defend the local gold-backed currency, which manufacturers have embraced.
A Herald survey of various schools showed that most of them accepted payment in US dollars only. In cases where ZiG was accepted, it was linked to the use of the black market rate.
However, some public and mission schools accept part of the fees in US dollars while the rest is paid in local currency.
Schools will open for term two on Tuesday next week, and parents say they want to be allowed to pay using whatever currency they feel comfortable with.
The Reserve Bank of Zimbabwe’s Financial Intelligence Unit (FIU) has warned school principals against violating the country’s laws.
“As we approach the new term, we are only now starting to receive such complaints from parents. It is just a handful of complaints so far but we expect more as we get closer and closer to the opening of schools.
“Our approach is to involve school authorities first and foremost, and schools always comply immediately. We have only had two cases in the past where we have had to take drastic measures to freeze accounts (one private school and one university), but this is something we want to avoid if we can as this harms With the learners and parents we want to protect.
“We are considering recommending that school heads be held personally liable for such violations. This would serve as a more effective deterrent. For now, we urge the public to continue bringing such violations of the law to the FIU,” said FIU Director, Mr Oliver Chibereza. Financial intelligence.
While cases remain few and far between, parents of students at Chimanza Secondary School in Hwedza said the schools explicitly told them they would only accept fees in US dollars.
Westminster International School, a private school in Harare, has pegged fees at ZiG23 per dollar, leaving parents no choice but to pay in foreign currency.
Others, especially private and mission-run schools, said they were waiting for school owners to make statements about the currency they would accept before issuing invoices to parents.
“I feel that the schools are taking advantage of the situation that prevailed with the regional settlement system, where inflation was getting out of control,” said one parent who preferred to remain anonymous: “They now want us to continue paying in US dollars, which is beneficial to them, but it is not happening.” “All parents have their money in foreign currency, so they should give us the option to pay in US dollars.”
Another parent said that linking school fees at twice the prevailing bank rate was as good as forcing them to pay in foreign currency.
Ministry of Primary and Secondary Schools spokesperson, Mr Taungana Ndoro, said the government’s position on the payment of school fees had not changed.
“According to Secretary’s Circular No. 10 of 2022, it is the government’s policy position that school fees must be paid in Zimbabwean currency, which of course is now called ZIG. Therefore, no school may force any parent to pay fees or fees exclusively in foreign currency because parents are free to Pay in the currency of their choice, as Zimbabwe operates under a multi-currency system.
The government recently introduced the structured token ZiG which began trading yesterday.
The new currency, backed by gold and cash reserves, is pegged at 13.56.16 to the US dollar.
RBI Governor Dr. John Mushayavanhu said last week that everything is in place for the smooth distribution of the new currency and setting withdrawal limits for individuals at ZiG3,000, businesses at ZiG30,000, schools, hospitals, clinics and local authorities at ZiG50,000, and government ministries and departments have set limits at ZiG300,000.
The government stressed that the new currency will not lose its value because it is supported by the strong macroeconomic fundamentals prevailing in the economy.
Ndoro said schools had no reason to deny parents payment using the currency of their choice.
“If the fees are pegged to the foreign currency to preserve the value, parents must pay the school fees in local currency at the prevailing interbank rate on the day of the transaction,” he added.
Most parents receive a significant portion of their salaries in local currency, and even those whose employers help pay school fees receive allowances mostly in local currency. Announce
