Thabiso Nxumalo

Masvingo City Council management has been challenged to maintain a tight grip on their properties as a way of safeguarding against corrupt activities on the leasing of council premises by the visiting members of the Parliamentary Public Accounts Committee (PAC).
Speaking during a visit for audit at Masvingo council on March 30, Norton legislator Temba Mliswa who is part of the PAC said that there are rumours that over 300 tenants occupy council buildings rent free attributing the matter as a case of corruption and collusion and thus Town Clerk Engineer Edward Mukaratirwa should stand the ground.
“We did our research before coming here and we heard that there are over 300 tenants who are occupying council buildings and houses for free and view that as an act of corruption and collusion.
“Council need these revenues from tenants. We should not respect that they are government institutions, they should simply pay and council must start weeding out such institutions without fear or favour,” said Mliswa.
Eng Mukaratirwa denied any corrupt acts by the council and said they are aware of the matter and they had caught up with the tenants and are in the process of recovering the amount of those who are owing dating 25 years back and said most of them are government institutions.
“We are aware of the issue and we have done investigations and caught up with those institutions and updated our books and we have the amount owed by those properties and reviewed how much they owe and we have given those tenants up to the end of this year to have fully paid.
“We have also reviewed our lease agreements to tenants and reduced the lease duration to a period of just three years and are now reviewing our rates every six months and we hope that as we migrate to the digital system abandoning the paper one it will be much easier to track and manage our revenue,” said Eng Mukaratirwa.
Mayor Cllr Collen Maboke said that they will work on drafting a water tight contract for tenants and advised council to have their own legal department so as to safeguard revenue inflow and curb contract breaches.
“With my law background, I feel it is necessary for council to have a legal team of their own and draft water tight contracts to tenants as these lease agreements we give to clients must safeguard breaches in case of failure to pay
“In the existing contract we do have clauses that safeguard breach of contracts but the problem becomes enforcement on our part,” said Maboke.
Public Accounts Committee (PAC) chaired by Dexter Nduna was in Masvingo to follow up the auditor’s general report on Masvingo.

Valentine Makufa

Masvingo City Council owned Runyararo West clinic is set to provide mental health services in its-soon to be opened health institution.
Council director of health services Suzanne Hazel Madamombe confirmed this development during a tour of the clinic by the Parliamentary Public Accounts Committee (PAC) on March 30, 2022 on their visit to Masvingo for assessment of the Auditor General report’s recommendations implementation.
She said that mental health cases are on the rise in the community hence the department has to deal with these issues by offering such related services at the new clinic.
“We have noted that in the community there are more cases that are related to mental health, so we are setting up that department and have already advertised the post for a mental health nurse who is going to be stationed here,” said Madamombe.
She added that the clinic is also going to be a center for Adolescence and Sexual Reproductive Health Services centre.
“We are also going to make this place an Adolescence and Sexual Reproductive Health Centre where we are going to be having specialist nurses who are going to be dealing with adolescence health specifically,” she added.
The clinic that was constructed using devolution funds is awaiting clearance from relevant authority for it to open its doors to the public.
During the full council meeting held on March 28 2022 at Town House, Town Clerk Engineer Edward Mukaratirwa said all is now in place at the health center though they are putting finishing touches in the process of legalization of operations by registering the institution with the relevant authorities.

Tendai Charumbira

Zimbabwe’s Vision 2030 cannot be easily attained without external support to completely reduce the debts that Zimbabwe is owing to international finance institutions like International Monetary Funds (IMF), the business community has reiterated.
Addressing delegates at Zimbabwe Coalition on Debt and Development (ZIMCODD) hosted Zimbabwe Public Debt indaba held at Rainbow Towers in Harare Confedaration of Zimbabwe Industries (CZI) president Kurai Macheza said government’s aim to achieve Vision 2030 will not be easy without intervention of external forces to help in the eradication of debts owed to the IMF which are choking most businesses.
“Government’s aim to achieve Vision 2030 cannot be easily attained without intervention of external forces. From us as Zimbabwean business people, we have a serious worry over the $3.3 billion alluded to the assumption of the creditors debt that is owed, Reserve Bank of Zimbabwe (RBZ) was supposed to pay the creditors. Without that settlement being done, it chocks our businesses.
“Until debt is cleared, it cripples business and there is urgent need for government to clear such debts so creditors will not see the name of company recurring in their books,” said Macheza.
He also urged government to consider roping in external partners if any meaningful progress towards such a vision is to be realized and also the proliferation of punitive rates that is interest rates grows back business.
“Government should consider roping in partners for meaningful progress towards such visions to work out. Proliferation of punitive rates grows back our businesses and they incapacitate business growth,” said Macheza.
Macheza however said business community and CZI appreciated the progress made so far in terms of country positions and state of debt of the country as well as payments being made.
“From the business community and CZI, we note and have to appreciate some of the progress made so far in terms of communicating and also the efforts made with certain payments being done,” he said.

Emmanuel Chitsika

The Zimbabwe Coalition on Debt and Development (ZIMCODD) has blamed lack of a robust debt sustainability plan as the major cause behind the accumulation of the country’s domestic debt as government has shifted much of its focus towards repayment of arrears.
Presenting during Zimbabwe Public Debt Indaba held in Harare, ZIMCODD Executive director Janet Zhou said government is failing to put in place a clear plan that would help resolve the settling of debts without affecting the socio-economic status of citizens.
“The absence of a robust debt sustainability plan resulted in accumulation of domestic debt. Government efforts are mainly towards repayment of arrears. ZIMCODD acknowledges government efforts on debt resolution to date. Despite these strategies, government has not been able to sustainably resolve the debt question.
“Strategies were implemented without debt audit versus debt validation while at the same time not considering the impacts of contingent liabilities (arising from guaranteed debts and assumptions) on the government’s financial position. Also the ignorance on the structural and political challenges inherent in the economy like poor governance, corruption and fiscal indiscipline,” said Zhou.
She also said debt assumption mainly by the Reserve Bank of Zimbabwe (RBZ) exceeding public expenditure thresholds has limited government abilities to respond in case of natural disasters.
“Debt assumption by the RBZ exceed public expenditure thresholds. Debt assumption is limiting government response to disasters like Covid-19, Cyclone Idai and of late the conflict between Russia and Ukraine. The worry we have is that this unsustainable debt by government has led to aggressive or heavy taxation on the general citizenry. There is also a rising trends in borrowing on the collateral which are now unclear in terms of timeframes.
“There is also worry over environmental degradation thus unsustainable for the next generation,” she said.
Zhou further urged government to adhere to constitutional provisions so as to ensure fiscal discipline and also consider the input of other important stakeholders like parliament and the civil society.
“Government thus need to adhere to constitutional provisions and even following Southern African Development Community (SADC) protocols to that effect. Also there is need to ensure that such benchmarks are placed in our constitution and or legal framework. We would like to realign and harmonize the laws especially on amendments currently being undertaken on Public Debt and Finance Management Bill.
“The process of debt clearance was also limited to government and creditor countries or institutions whereas parliament and civil society were mere spectators. The current debt stress is affecting social service delivery, women and even people living with disabilities. We hope as we go forward, there is need to move beyond debt validation. Thus there is need to politicize the issue of debts than just financializing them,” Zhou added.
Government has often been accused of violating the constitution by taking no steps to authorize expenditures thereby violating constitution of Zimbabwe Amendment (No 20) Act of 2013 (section 300), Public Finance Management Act (chapter 22:19) of 2009 section 61 of 30 percent threshold for government debt and 40 percent for guarantees.
Government overdraft at the RBZ far exceeds set limits in the RBZ Act (chapter 22:21) of 2015 with respect to the 70 percent debt to Gross Domestic Product ratio and SADC protocol on Finance and Investment benchmarks of 60 percent.
Government also has faced challenges despite the transitional stabilization programme with the country going through a cycle of staff monitored programmes with the IMF though no sign of debt cancellation or relief has been noticed under the current Second Republic administration.

Melinda Kusemachibi

Government’s continuous assumption of debts of state-owned enterprises without determining how the arrears were accrued fuels corruption and misallocation of resources, former Zimbabwe Finance Minister Tendai Biti recently warned.
Speaking at Zimbabwe Public Debt Indaba organized by Zimbabwe Coalition on Debt and Development (ZIMCODD) held on March 29, 2022 in Harare Minister Tendai Biti said that debt assumption is a waste of time and command agriculture is the vehicle being used.
“Debt assumption is not just a catalyst for deep stress, it is a catalyst for group, parallel government ideality because they are running for a parallel government then these debt assumptions are then fostered on the ordinary people of Zimbabwe and command agriculture is a principled vehicle. So debt assumption is a waste of time, a waste of energy,” said Biti.
He added that debt assumption in form of US$3.5 billion was signed with farmers without legislature approval and it is being used to break the law.
“In 2019 the government of Zimbabwe came up with the financial bill of US$10,6b in which they sought condemnation of expenditure that they spent outside parliament between 2015 and 2018 to the sum of US$10,6 billion and they wanted us to condone it without giving out the details on what they actually spent the money.
“Debt assumption in the form of US$3.5 billion for farmers; the constitution is very clear that farmers will be paid for improvement, that an Act of parliament must define the formula, method that is going to be used but the government went on to sign the agreement with farmers without the legislative. Who are the actual farmers benefiting?
“Debt assumption is being used to break the law, cover up the law, used to override parliament, cover up for illegal guidance, for corruption and therefore we should say no to debt assumptions. Public Debt Management Act should be strengthened to say no to debt assumption,” said Biti.
Government has assumed a number of state-run firms’ debts amounting to billions of United States dollars despite warnings that it is cultivating a bad culture.
Some of these include Zisco Steel US$500 million and the Reserve Bank of Zimbabwe (RBZ)’s US$1.4 billion debts.
Biti added that government was giving out guarantees to private companies in 2020 when Covid-19 arose.
“Another form of debt assumption is illicit debt contractions which result in debt assumption and are the guarantees that government gave to private companies in 2020 when Covid-19 arose, government issued a lot of guarantees to the private sector. But why should government guarantee this to private sector?
“A lot of debt is by contracted through uproar, and I know that ZIMCODD is trying to file some court applications to challenge that. So guarantees are illegal and are also contributing to this debt hazard,” said Biti.
In 2019, government approved the assumption of TelOne’s US$383 million legacy loans. Cabinet last year also resolved to assume the Air Zimbabwe debt exceeding US$300 million. In January this year, government assumed US$3.8 billion fresh RBZ legacy debts.
This is the amount RBZ agreed to pay as opposed to over US$6 billion being claimed by 855 companies, which the apex bank failed to help repatriate funds due to forex shortages.
Biti also said that National Railways of Zimbabwe (NRZ) collapsed because of inefficiency, corruption and mismanagement.
“Another form of debt assumption over USD 2 billion has been assured this way, and to date parastatals national records of staffing, l believe around US$495m as huge but why is the NRZ collapsed? NRZ collapsed because of inefficiency, corruption, mismanagement. So government assuming that huge debt it is sanitizing inefficiency.
“It is sanitizing corruption. But why should tax payers pay for shaggy deals, corruption, mismanagement, incompetence? Because what they did as parastatals is they let their relatives run without qualifications and skills. Debt assumptions for National Railways of Zimbabwe (NRZ), Grain Marketing Board (GMB), Civil Aviation Authority of Zimbabwe, NetOne, TelOne, ZESA, are used for funding political campaigns,” said Biti.
In its February 2022 economic report, the ZIMCODD said as of September 2021, public and publicly guaranteed (PPG) debt was at US$13.7 billion. Of this debt, external debt constituted US$13, 2 billion while domestic debt was US$532 million. This public debt constitutes about 85% of the country’s GDP, way above the 70% threshold.
Accounting for the January 2022 assumption of RBZ debt, ZIMCODD said total public debt will expand to US$14. 2 billion.
The RBZ debt alone, totaling US$5. 4 billion now constitutes over 30percent of total debt stock.
Debt assumption, according to ZIMCODD will have negative socio-economic effects on ordinary people, as it translates to an extra financial burden on taxpayers.
“Generally, a debt-Gross Domestic Product (GDP) ratio shows a country’s capacity to repay its debts, with a rising ratio indicating that debt is growing faster than national income.
“As such, the ballooning Zimbabwe debt is a cause for concern, especially under the context of the Covid-19 pandemic, fragile domestic election season, worsening global geopolitics between nuclear superpowers, and a mounting global inflation wave.
“Therefore, there is a need to undertake an independent public debt audit that will inform the scale and nature of the country’s debts, which are often not transparently publicized.
“An audit will also become a building block to popularize discussion about the legitimacy of certain debts and whether they should be repaid,” read part of the ZIMCODD report.