ARRANGEMENT OF SECTIONS

Section

1. Short title.

2. Interpretation.

3. Formation and membership of company limited by shares and

restriction on transfer of shares.

4. Objects and functions of Company.

5. Transfer of certain assets and obligations of State to company.

6. Engagement by company of certain employees of the State.

ACT

To provide for the formation of a company to take over the functions, assets and staff

of the Government Medical Stores in the Ministry of Health and Child Welfare and to

provide for matters connected with or incidental to the foregoing.

ENACTED by the President and the Parliament of Zimbabwe.

1 Short title

This Act may be cited as the Government Medical Stores (Commercialisation) Act,

1999.

2 Interpretation

In this Act-

"company" means the company formed for the purposes referred to in section three;

"Government Medical Stores" means the Department of that name in the Ministry of

Health and Child Welfare;

"Minister" means the Minister of Health and Child Welfare or any other Minister to

whom the President may, from time to time, assign the administration of this Act;

"transfer date", in relation to any asset or right, means the date fixed in terms of

subsection (1) of section five for the transfer of that asset or right from the State to the

company.

3 Formation and membership of company limited by shares and restriction on

transfer of shares

(1) Subject to this section, the Minister shall take such steps as are necessary to

secure the formation, registration and licensing of a company limited by shares in

terms of section 26 of the Companies Act [Chapter24:03] which company shall take

over the functions, assets and obligations of the Government Medical Stores to the

extent provided in the Act.

(2) All the members of the company on its incorporation shall be persons nominated

by the Minister and shall subscribe to the Memorandum of Association of the

company on behalf of the State.

(3) Where a company has been formed in terms of subsection (1) no person shall

authorise the transfer of shares or any other asset of that company belonging to the

State to any other person.

4 Objects and functions of Company

(1) The objects of the company shall be-

(a) to purchase, sell, deal in and store medicines, medical equipment and

TITLE 22 other goods and articles for use in hospitals, clinics, pharmacies and other medical

establishments; and

(b) to perform any other function set out in its memorandum of

association.

(2) In the performance of its functions the company shall give priority to serving the

needs of the State, to the extent that it is compatible with sound business practice to

do so.

5 Transfer of certain assets and obligations of State to company

(1) Subject to this section, the assets and rights of the State which-

(a) immediately before the date of commencement of this Act, were used

or otherwise connected with the functions of the Government Medical Stores; and

(b) are indicated by the company's board of directors with the approval of

the Minister;

together with any liabilities or obligations attaching to them, shall be transferred to

the company with effect from such date as the Minister may specify by written notice

to the company:

Provided that the Minister may specify different dates for the transfer of different

assets and rights.

(2) On the relevant transfer date, every asset and right of the State which is to be

transferred to the company in terms of subsection (1), together with any obligation

attaching to it, shall vest in the company.

(3) All bonds, hypothecations, deeds contracts, instruments, documents and working

arrangements which subsisted immediately before the relevant transfer date in

relation to any asset or right transferred to the company under this section and to

which the State was a party, shall, on and after that date, be as fully effective and

enforceable against or in favour of the company as if, instead of the State, the

company had been named therein.

(4) It shall not be necessary for the Registrar of Deeds to make any endorsement on

title deeds or other documents or in his registers in respect of any immovable

property, right or obligation which passes to the company under this section, but the

Registrar of Deeds, when so requested in writing by the company in relation to any

particular such property, right or obligation, shall cause the name of the company to

be substituted, free of charge, for that of the State on the appropriate title deed or

other document or in the appropriate register.

(5) Any course of action or proceeding which existed or was pending by or against

the State immediately before the relevant transfer date in respect of any asset, right or

obligation which passes to the company under this section may be enforced or

continued, as the case may be, by or against the company in the same way that it

might have been enforced or continued, as the case may be, by or against the State

had this Act not been passed.

6 Engagement by company of certain employees of the State

(1) Subject to the Public Service Act [Chapter 16:04] and to the consent of the

employees concerned, the company may engage such of the persons who were

employed in the Government Medical Stores on the date of commencement of this

Act as the Public Service Commission, the Minister and the company's board of

directors may mutually agree.

(2) Persons engaged in terms of subsection (1) may be permitted to continue

contributing towards a pension in terms of the Public Service (Pensions) Regulations,

1992 (Statutory Instrument 124 of 1992), or any other enactment, subject to such

terms and conditions as the Public Service Commission may fix with the approval of

the Minister and the company's board of directors

(3) Terms and conditions fixed in terms of subsection (2) may provide for-

(a) payments by the company to the Consolidated Revenue Fund to

compensate the State, wholly or partially, for pensions and other benefits paid or

payable to or in respect of persons engaged in terms of subsection (1); and

(b) the application, non-application or modification of the provisions of

the Public Service (Pensions) Regulations, 1992 (Statutory Instrument 124 of 1992),

in regard to persons engaged in terms of subsection (1).

(4) Notwithstanding any other provision of this Act, a person who-

(a) as a member of the Public Service, was afforded an opportunity of

engagement by the company in terms of this section and declined to avail himself of

the opportunity; and

(b) subsequently left the Public Service and as a consequence became

entitled to pension benefits in respect of the abolition of his post;

shall not be engaged in any capacity by the company for a period of ten years from

the date on which he left the Public Service, unless the Minister and the Public

Service Commission consent to his engagement.