PARLIAMENT OF ZIMBABWE
Thursday, 9th February, 2017
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. SPEAKER in the Chair)
THE HON. SPEAKER’S RULING
ALLEGED COMPTEMPT OF PARLIAMENT BY MR. ZVAMAIDA
MURWIRA HERALD JOURNALIST
On Thursday, 2nd February, 2017, Hon. Misihairabwi-Mushonga rose on a point of privilege alleging that Mr. Zvamaida Murwira, a reporter with The Herald had reported on her speech of the previous day in a manner that distorted her speech. She also alleged that the reporting was also discriminatory in the manner it was reported when compared to those speeches of her male counterparts. However, following consultations between myself, Hon. Misihairabwi-Mushonga and the reporter, the matter was resolved amicably following the pledge by the reporter to always follow ethical and professional reporting standards, as implored by the Hon. Speaker during the media briefing in Parliament.
The media had pledged to abide by the Speaker’s plea and in view of that commitment, that matter is now accordingly resolved and to that extent the contempt of Parliament charge does not arise.
MOTION
BUSINESS OF THE HOUSE
THE MINISTER OF TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT (HON. DR. GUMBO):
Mr. Speaker Sir, I move that Orders of the Day Numbers 1 to 31 be stood over until Orders of the Day Numbers 32, 34 and 44 have been disposed of.
Motion put and agreed to.
MOTION
REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT
AND INFRASTRUCTURAL DEVELOPMENT ON THE
OPERATIONS OF AIR ZIMBABWE
Thirty-second Order read: Adjourned debate on motion on the
Report of the Portfolio Committee on Transport and Infrastructural
Development on the Operations of Air Zimbabwe
Question again proposed.
THE MINISTER OF TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT (HON. DR. GUMBO): I
would like to take this opportunity to respond to issues raised in the report by the Parliamentary Committee on Transport and Infrastructural
Development resulting from an inquiry on the operations of Air Zimbabwe.
1.0 The Committee undertook this inquiry following operational challenges being faced by the National Airline in an attempt to proffer possible solutions.
2.0 The Ministry notes the observations made by the Committee and responds as follows:-
2.1 Air Zimbabwe’s Viability
Air Zimbabwe is currently operating at a loss but there is potential to turn around its fortunes. It is critical to note that the aviation industry faces high operational costs and low margins. This scenario calls upon shareholders to continuously inject new capital into the business for sustenance and viability. Air Zimbabwe thus has potential if the shareholder recapitalises the Airline. The aviation industry supports tourism and international business by providing the world’s only rapid worldwide transport network. The aviation industry is of strategic importance to national development through facilitating trade, tourism and regional integration.
A cross sectional analysis of the aviation industry has shown that most national airlines are not making profits and those that do so have thin profit margins, which do not match the underlying heavy capital investment. However, it must be noted that most of the benefits of the aviation industry are in downstream industries. It is worth noting that it is national airlines that have potential to continue to withhold these benefits. As such, it is apparent that the aviation industry be viewed as a strategic sector and enabler of the economy; hence there is need for decisive State intervention on the national airline, Air Zimbabwe.
Air Zimbabwe’s debt stands at $323 million as at 31st December 2016. Of encouragement is the fact that the debt is now increasing at a decreasing rate, hence there is light, going into the future. Like any other national airline, Air Zimbabwe requires capital injection from Government.
The global trends on the continued existence of legacy airlines or national airlines shows that; governments continue to bail them out as they are considered to be strategic assets of national importance. The following examples show how some governments have bailed out their national airlines to ensure their continued existence.
2.1.1 Ethiopian Airlines.
Whilst Ethiopian Airlines has declared profits over the past decade, the airline has benefited from State policies to keep operating costs down. Ethiopian Airlines benefits from being able to borrow at very favourable rates due to its strategic national role. The Ethiopian Government has adopted deliberate policies aimed at keeping down labour and financing costs. The airline is also exempted from paying income tax by the Government.
2.1.2 South African Airways
South African Airways (SAA) is a key benefactor of State funding.
Despite having state of the art equipment and being a member of Star
Alliance, SAA posted a US$200 million loss in 2014, up from the US$91 million loss incurred in 2013. SAA received Government bailout amounting to ZAR30 billion (US$2.4 billion) by March 2015. The Government of South Africa has noted the strategic importance of the national airline and thus continues to support it.
2.2 Audited financial Statements
The Ministry also notes with concern that the airline, Air
Zimbabwe’s audited financial statements are behind schedule, with the last audited financial statements produced in 2009. The Ministry has given Air Zimbabwe an ultimatum to have their financial reports updated by the end of this year. The current Air Zimbabwe Board and management has undertaken to rectify the situation. The following progress has been achieved to date:
- Engaged BDO Accounting Firm;
- Management accounts now up to date;
- 2010 accounts completed and await finalisation by auditors;
- Remaining accounts to be completed by end of 2017.
The current management has strengthened its internal Audit Department by engaging an Audit Manager and beefed up the audit section, which has been mandated to analyse the existing policies and come up with recommendations to avoid fraudulent activities.
2.3 Competitiveness of the Airline
Mr. Speaker Sir, in an endeavour to improve the airline’s competitiveness, the Ministry has appointed a substantive board, which was mandated to engage a substantive Chief Executive Officer for the airline. The board is composed of personnel with various skills and experience from the public, private, tourism and aviation sectors to spearhead the turnaround of the Airline. A wide consultative and vetting process was undertaken before the appointments.
Mr. Speaker Sir, I am pleased to report that after eight years, the Airline now has a substantive CEO and senior executive posts have been filled. This has brought stability to the airline. Management has been mandated to look into the cost structure of the airline. In this regard, management is currently restructuring the organisation with a view to coming up with a lean structure, which will see the number of managers being drastically reduced.
Mr. Speaker, I can tell Hon. Members that when I gave the instruction to restructure Air Zimbabwe’s management structure, I had discovered that small as it is, with only about five aeroplanes, there were 28 Directors including the Acting CEO. That is not commensurate with the size of Air Zimbabwe. That is why we had to come up with a restructuring exercise because when you look at it, one plane is supposed to be supported by about 85 members. This would mean that Air Zimbabwe, with five aeroplanes should have only 400 employees but they were around 800. Of those, most of them were at managerial level. If you have 28 Directors and a CEO, you can see what that means. So, I want to thank the Committee because their observations were correct.
2.4 Remedies to Air Zimbabwe Wage Bill and Labour
Disputes
Mr. Speaker Sir, as highlighted earlier, the number of managers is being right-sized and this will have a positive impact on the wage bill. The board has been given a mandate to ensure that performance based contracts are in place and salaries are aligned to the Corporate
Governance Framework.
The Ministry notes with concern that Air Zimbabwe is over - manned given its current operations and fleet size, hence the need to retrench excess personnel. The retrenchment exercise that started in the year 2012, has been on-going though at a snail pace. The exercise could not come to fruition due to limited resources. Government is however pursuing various strategies to secure resources for the exercise.
3. Air Zimbabwe Publicity and Public Relations
The Ministry has noted with concern the limited capacity in this department. The board and management have been mandated to recruit competent personnel to run the section.
4. Air Zimbabwe Fleet
The airline is operating old equipment compared to its competitors. This has greatly increased its operating costs and compromised on service quality and reliability, thereby rendering the Airline uncompetitive. Air Zimbabwe’s current aircraft fleet status:
|
AIRCRAF T TYPE |
AIRCRAFT REGISTRATION |
DATE OF MANUFACTURE |
AGE (YEARS) |
ECONOMIC LIFE LIMIT (YEARS) |
CURRENT STATUS OF AIRCRAFT |
1. |
B737 – 200 ADV |
Z-WPA |
NOV 1986 |
31 |
20 |
Serviceable |
2. |
B737 – 200 ADV |
Z-WPB |
MAY 1987 |
30 |
20 |
Unserviceable |
3. |
B737 – 200 ADV |
Z-WPC |
JUNE 1987 |
30 |
21 |
Unserviceable |
4. |
B767 – 200 ER |
Z-WPE |
NOV 1989 |
28 |
20 |
Serviceable |
5. |
B767 – 200 ER |
Z-WPF |
AUG 1990 |
27 |
20 |
Unserviceable |
6. |
A320 |
Z-WPM |
JAN 1997 |
20 |
15 |
Serviceable |
7. |
A320 |
Z-WPN |
JAN 2003 |
14 |
15 |
Unserviceable |
8. |
MA60 |
Z-WPJ |
APR 2005 |
12 |
12 |
Unserviceable |
9. |
MA60 |
Z-WPK |
APR 2005 |
12 |
12 |
Serviceable but is grounded |
10 |
MA60 |
Z-WPL |
DEC 2005 |
11 |
12 |
Unserviceable |
Mr. Speaker Sir, the airline, at the very least, requires aircraft suitable for domestic, regional and international routes at an estimated cost of US$770 million. This will involve procuring three small jets for the domestic market and an appropriate mix for other regional and international aircraft in line with the airline turn-around strategy.
Mr. Speaker Sir, Government is in the process of acquiring a new fleet of the National Airline which suits local, regional and international market. This will greatly improve adherence to schedules by the airline.
5. WAY FORWARD
Air Zimbabwe is in urgent need of recapitalisation to start sustainable operations. As already alluded to, it had a debt overhang of US$323 million as at 31st December, 2016. Given the prevailing demands on the fiscus, it is not conceivable that at the present moment Government can inject the required capital into Air Zimbabwe, hence the need for engagement of a strategic partner. Recapitalisation of the airline will enable it to contribute positively towards both tourism and economic growth.
A strategic partnership increases scope for capacity development through acquisition of new fleet, skills transfer, marketing of trade and business opportunities for the country and boosts tourism potential.
Government has recently approved the engagement of a strategic partner for our National Airline. The process has started in earnest and my Ministry is committed to the exercise. Thank you.
THE HON. SPEAKER: Let me remind the Hon. Members that
those who want to contribute must do so briefly because the mover of the motion has to wind up and the Hon. Minister cannot respond to other contributions.
HON. MLISWA: Thank you Mr. Speaker. I would want to commend the Minister of Transport and Infrastructural Development for highlighting some of the challenges that Air Zimbabwe does face. I think the Hon. Minister will agree that this is not the first time that we hear of such challenges with Air Zimbabwe. Equally, it is not the first time that we hear of these challenges. Before he was in office, Air Zimbabwe was actually capitalized. So, the issue is that Government has tried to do as much as it can to try and capitalise Air Zimbabwe. We have a situation where he is not the first Minister to have been there. So, the question is, what were the other Ministers doing when we were having the number of directors he is talking about. What guarantee do we have that the way forward that he is proposing will work? We certainly and am glad he realises that the current economic situation would not allow an injection of $320 million into Air Zimbabwe when equally we are looking at putting money into sectors that we think produce. For example, you look at ZISCO Steel, they probably need
$60m and what we will make from ZISCO Steel is more. What basically I am trying to say to the Minister is that there are certain projects that we must shelved until we get to a certain point and reinvest money into critical sectors of the economy like the production I am talking about in terms of ZISCO Steel that will generate more money for us to invest in Air Zimbabwe.
Air Zimbabwe must not be politicised. It is the national airline. If there is the only client that they have that pays them is His Excellency when he does charter, outside that there is nobody. They cannot compare with South African Airways and many other airlines. We do have airlines already in this country that are serving the very same destinations which Air Zimbabwe is serving at a better cost. Do we
really need to invest in an airline? No, we do not need to invest in an airline. This is something that I thought the Minister would look at.
The aspect of investor confidence is key and that has to do with corporate governance at the end of the day. That is where the issue is. There is no corporate governance at Air Zimbabwe. Ministers who are politicians at the helm of Government are directly involved. What guarantee do we have…
THE HON. SPEAKER: Order! Can you withdraw the statement
“so-called politicians”?
HON. MLISWA: I will withdraw but I do not think I said socalled politicians. I said at the helm. I withdraw the word “so-called”.
You also have a situation where corporate governance touches on nepotism. Nepotism does not attract investment. It is not professional in its nature. How is he going to circumvent that to attract the investment that is much needed for an airline which is known to be thriving on nepotism? You have got strategic partners that want to come through but these strategic partners have always been there. I am aware of certain airline companies that have said listen, we will take on this route. He also proposed that Government will buy a new fleet. If these strategic partners are coming in, what are they coming in to do because certainly we have no money but Government is still suggesting that they are going to buy new airlines? So, what is the role of the strategic partners in this?
I know very well that Ethiopian Airlines have said they want to do the London route but Air Zimbabwe hangs on to that and yet they do not have a plane. He was talking about how dilapidated their planes are but they still hang on to the route. Why would you hang on to the route rather than allowing such a strategic partner to come in and do the route? These are some of the issues which I think strategic partners must come in and address.
To summarise, I think it is important that we deal with low hanging fruits. Air Zimbabwe is not a low hanging fruit. There are more entities in this country – agriculture for example, which I believe if fertilizer was made cheaper for the farmers and well planned, we would produce more. We would not spend a lot of money having to import. Air Zimbabwe can be set aside and the nation can still go ahead and we can deal with Air Zimbabwe at some other point. I thank you.
HON. DR. MASHAKADA: Thank you Mr. Speaker Sir for this
opportunity. I want to start by thanking the Minister of Transport and Infrastructural Development, Hon. Dr. Gumbo for his clear presentation and also thank him for the effort that he is doing to turnaround the transport portfolio. Be that as it may, I wish to raise the following issues for his attention.
In my respectful and humble view, Air Zimbabwe is saddled by two basic problems which are at the core of the restructuring strategies that you might wish to adopt. The first problem is the problem of ownership and control. The second one is the problem of budgetary resources. Any solution that is going to be found around the problems bedeviling Air Zimbabwe has to address these two major issues.
We must disabuse ourselves of the notion that Air Zimbabwe needs a strategic partner. I do not think Air Zimbabwe at this stage needs a strategic partner. This airline, for the last 20 years has been recording operational losses. This airline has been recording operational losses because it has lost strategic routes which were profitable and also because it has not been receiving adequate budgetary support from the fiscus. You can understand that a $4bn economy has no capacity to invest in an airline business. In my view, it is not possible to get strategic partners because Government has to clean the balance sheet. The loss now stands at over $20m. When we were in the Inclusive Government, I am quite sure the loss was around $14m and I am not sure about the extent of the loss now. For a strategic partner to come in, Government has to take over the debt and clear the balance sheet so that it becomes profitable for that strategic partner to come. This has been an albatross around Air Zimbabwe, the question of the debt. That is why it is very difficult for the Minister to get a strategic partner.
What I recommend, is to take a brave step to open up, commercialise, privatise it, find new investors who can bring in the equipment, planes and take over all the routes that were operated by Air Zimbabwe. Government will then remain with a regulatory function to make sure that all things are done above board. This is not a new model. If you look at the Kenyan Airlines, today the Kenyan Airlines in Africa is second to Ethiopian Airlines. The magic is very simple, they partnered KLM, the Royal Dutch Airlines and allowed the airline to run commercially, professionally and viably. You do not have to burden yourself with appointing board of directors and this and that. Let it be done as a private entity. That will improve operational efficiency because the problem with Government having to appoint board of directors is that once a Minister leaves that portfolio, a new Minister comes, tries to change the board and interferes in the operation of that airline. Whatever reforms or changes the previous Minister would have made would be reversed. I recommend to the Minister that, better explore the privatisation route, it is profitable and it does not bring headaches to Government because we do not have enough resources.
I know it is sentimental to say we have to fly the national flag but you can go round that like what the Ethiopian Airlines did. They have agreed that this airline will run independently and commercially but the brand that should be used is the brand of the country. It is possible that even when a new investor comes, we might insist for them to fly the national flag and use the brand of the country for national and sentimental reasons. I would also support that but Government has no business in the running of airlines. It is a professional and technical area where you need well resourced entrepreneurs who can run that viably. The issue that I want to suggest Hon. Minister is the question of the presidential jet.
THE HON. SPEAKER: Order, order. I had said I have indulged you and your colleagues. I need to respect you. You can wind up but some of these good points should have come during the debate on the motion and I am sure that the Hon. Minister would have captured these bright ideas from Hon. Mliswa and yourself. Just wind up.
HON. DR. MASHAKADA: I am indebted to you Hon. Speaker
for this opportunity for me to wind up. I was going to propose that maybe going forward as a country, we might need to study other models - how they treat their Head s of Stateand the implication that it has on the operation of the fleet as a whole. In some countries, I think that they have dedicated small jets for Heads of State which are easy to run. They are economic but they are also efficient and are fit for the purpose. But in our case, we have not yet decided that the Head of State should have a dedicated jet. So, that has implications on the fleet since the President has to be given one of those big planes and I think that also has an implication on the operational health of the airline. The Minister might want to look at that model of having a dedicated efficient small jet for the Head of State and then allow all commercial planes to be deployed in the meantime to service all the routes that Zimbabwe has been servicing.
I thank you.
THE HON. SPEAKER: Hon. Maridadi just a minute. It is not
unusual for the Chair to ask for your indulgence. May I call in the interest of gender, Hon. Zindi and then you can come after.
HON. ZINDI: Thank you Hon. Speaker for having recognised me and from a gender parity position, I feel honoured.
Hon. Speaker, I need to also make a contribution to this very important Statement that has been presented by the Minister before this august House. In my observation, I want to categorically suggest that I think what the Hon. Minister has to go the route to commercialise that entity. I am suggesting that on the basis that the Government is overborrowed and we cannot continue to say the Government should inject more capital into Air Zimbabwe. Mr. Speaker, yes it may have been said but I think basically, that is the route that I would personally want to recommend as well, in order for Air Zimbabwe to once again be a viable and commercial entity that can be recognised as back to the Air
Zimbabwe that we used to know in the early eighties and nineties.
I would not sit down without mentioning some of the things that have caused Air Zimbabwe to be in debt as it is. It is mismanagement Hon. Speaker and I think that commercialisation will deal with that aspect because once we streamline our management, as the Hon. Minister has mentioned in terms of a top-heavy structure that we will deal with the issue. In terms of commercialisation, we will deal with that issue of top-heavy structure as Hon. Mashakada has mentioned, if we go commercial by inviting those who can invest to inject capital into Air Zimbabwe.
Hon. Speaker, it would be unfair if I do not mention the stream of corruption cases that have been aligned with Air Zimbabwe which have also contributed to it being in the state in which it is today. For example, in 1987, there was the Fokker deal plane scandal which involved over $100 million. I would not go into details of exactly what transpired but just to mention a stream of all the corrupt cases which contributed to state of Air Zimbabwe as it stands today. For example, The Chronicle also reported the case of Air Zimbabwe bosses looting over US$11 million. There is again another case of corruption involving Air Zimbabwe - $200 000, which the airline was being charged in a scandal which was to do with insurance.
There is another case involving Air Zimbabwe which says, Air Zimbabwe bosses crush into suspension over some $5.2 million and the list is endless. These cases of corruption Hon. Speaker are the cases just to mention a few. The list being endless as it is, that corruption has contributed to the state where Air Zimbabwe is today. Therefore, the only solution as Hon. Dr. Mashakada has said earlier on about the issue of ownership and control, we are having all these corrupt cases taking place because it is who is connected to the Minister responsible for the airline at that particular time. And, does that Minister responsible really trace all these corrupt cases to its logical conclusion where we do see people being prosecuted for the misdemeanours that are happening at Air Zimbabwe. The answer is no Hon. Speaker. Therefore, this control and ownership, if we continue to inject money, that will never play any miracles if we do not address the issue, hence my strong recommendation that it has to be commercialised and find some investor who injects capital and will have control in terms of management and making sure that the rightful people have been recruited to take those very crucial positions in terms of decision making.
Hon. Speaker, I have talked about the Government being over borrowed and for us to say Government with the economic quagmire that it is facing, we cannot afford again for Government to continue injecting some capital into Air Zimbabwe. I also want to take on board the Hon. Minister of Finance and Economic Development, Patrick Chinamasa who said in this House, that those parastatals which are not performing should be closed down. But, in this case we are not saying Air Zimbabwe should be closed down. We are making recommendations that it should actually be commercialised as a way to make it once again viable. I thank you.
HON. MARIDADI: Thank you Hon. Speaker. I am unfortunately
one of those who is going to try and close the stable door after the horse has bolted because I should have discussed earlier. That as it may Mr. Speaker, the issue of commercialisation, is something that we should put thought into. This is for the reason that commercialisation alone is not the panacea to profitability. It must be linked to good management and a good business model. It does not really matter what you do, competitiveness, profitability and sustainability of a business are a function of a business model. Mr. Speaker Sir, a business model is a function of two major matrices, SWOT and your PESTEL, I will not dwell on that.
There are airlines today, which use a Government business model and are profitable. For example, Emirates, Qatar, British Airways (BA), Singapore and Scandinavia, they are all Government-linked and profit making. What I would like to tell the Hon. Minister is that, throughout the world, there is no transport business which makes huge profit. Transport is margin business, be it an airline, road transport like buses, lorries or emergency taxis and so on. For as long as it is transport business, the profit is marginal meaning that it must be run efficiently. How do you run it efficiently? Government, especially that of Zimbabwe, has no record of running things efficiently. Look at all the parastatals under the Government. Of the 92 or so parastatals, not a single one of them is making a profit.
Mr. Speaker Sir, what has happened? In 1980, 40% of the country’s Gross Domestic Product (GDP) was contributed by parastatals. I am talking of Air Zimbabwe, Zimbabwe Broadcasting Cooperation (ZBC), National Railways of Zimbabwe (NRZ), Zimbabwe
Electricity Supply Authority (ZESA) and Cold Storage Commission (CSC). Today, if we take $10 billion and inject it into Air Zimbabwe, I can guarantee you that next year, they will go to the Minister of Finance and Economic Development seeking bail out money.
The issue of old aeroplanes has nothing to do with management. We can give Air Zimbabwe all the modern aeroplanes today and next year, those aeroplanes will not have been serviced or insured and they will be grounded. Mr. Speaker, the Chief Executive Officer (CEO) of South African Airways, if she/he loses the Harare –Johannesburg route, she or he loses his/her job. It is the second most lucrative route for South African Airways. That is why they put six aeroplanes on that route every day. They have a 0730 hours, 13:30 hourd and a 16:30 hourd flight on a daily basis because they are making a profit. Air Zimbabwe, who are the owners of the route from Harare to
Johannesburg do not have a single flight on that route. What is going on?
I spoke to one of the strategic managers for South African Airways and he said, if you want to sabotage the CEO just go and mess up
Zimbabwe so that it bans South African Airways from plying on the Harare – Johannesburg route and the job is gone. In addition to the six aeroplanes they put on the Zimbabwe Johannesburg route, they have put a direct flight from Harare to Durban and another from Harare to Cape Town and they are making a profit.
Mr. Speaker Sir, I flew to Johanesburg, South Africa with Hon.
Paradza over the Christmas holiday and the flight was full.
THE HON. SPEAKER: Which one?
HON. MARIDADI: South African Airways. It was full and there were people on standby. The reason we used South African Airways is that, I personally inquired from Air Zimbabwe and I was told that they were not online and were going to come back to me during the course of the day to confirm if they had seats available. That did not happen during the day. I went back again the following day to make another inquiry and they did not come back to me. For the reason that I wanted to travel on a particular day, I had no choice but to go with South African Airways. On that particular day, a friend of mine also wanted to fly Johannesburg but could not do so because the flight did not take off.
What it tells me is that the aeroplane could not start the engine; the engine could not start – [Laughter.] – As if that is not bad enough Mr.
Speaker, when you fly on South African Airways from Harare to
Johannesburg, your departure tax is built into your ticket price. However, when you fly Air Zimbabwe, you must pay your departure tax separately because it is supposed to go to the Civil Aviation Authority (CAA). The CAA said if Air Zimbabwe bills the departure tax together with the airfare, they will not remit it. What it means is that Civil
Aviation Authority would rather do business with Qatar, Ethiopian Airlines or South African Airways than with Air Zimbabwe. That means there is something fundamentally wrong with Air Zimbabwe.
Mr. Speaker Sir, South African Airlines has 63 aeroplanes. In 2015, they had 72, which means they have sold of nine others. The oldest of the nine which they sold was 16 years old. The reason is that when it is above 15 years old, it is very expensive to operate. Air Zimbabwe operates an aeroplane which is 30 years old, it is old, and that is ancient. I have a friend of mine who is a pilot and he says today’s aeroplanes can be flown by any fool. All you need to do is to be able to take off and when you reach the flying altitude, you can sit back. The aeroplane will maneuver itself and land itself. However, with Air Zimbabwe, you hear the pilots practically calculating using pencils saying, I am 100 metres above the ground and so on – [Laughter.] – they will be talking all the way. It is like they are at a beer drink all the way.
When you fly on the Ethiopian Airlines, the pilot will simply take off and just 25 seconds after takeoff, the bells ring and it means one can undo the safety belts and you can see the pilot coming from the cockpit to sit and have tea with passengers. It will be on auto-pilot. None of the aircraft at Air Zimbabwe can be on auto-pilot. One day we flew from Harare to the Budget Seminar in Victoria Falls and all the way, there was a hissing sound coming from the door and one of the ladies said it was because the door could not be closed properly. However, the pressure in an aeroplane is pressurised and if there is outside air interfering with what is inside, it will go down. Mr. Speaker Sir, what it means is that your Members of Parliament, about 120 of them could have gone down. On the way back from Victoria Falls, I boarded a bus,
I could not fly with Air Zimbabwe because I have a family to look after,
I do not want to die – [HON. MEMBERS: Hear, hear.] –
Mr. Speaker Sir, Hon. Mliswa spoke about money being injected into Air Zimbabwe. In 2010, US$300 million was injected into Air Zimbabwe with 28 directors and 800 employees manning three aeroplanes. That money went down the drain and it is now housed with this outfit called Zimbabwe Asset Management Company. The reason why that debt was taken out of Air Zimbabwe is because Hon. Chinamasa was trying to clean the Air Zimbabwe Balance Sheet so that it could attract investors because you cannot attract investors if your balance sheet is in such shambles.
However, if you look at Air Zimbabwe today, it is already in the red. The business model of Air Zimbabwe Hon. Minister – I sympathise with you, you are such a good person. However, the way you are tying to do it with Air Zimbabwe will not work until the second coming of Jesus. Jesus will have to come for the second time or the third time, but Air Zimbabwe will remain unprofitable.
Now, here is my solution to Air Zimbabwe. Mr. Speaker Sir, employ the right people – [HON. MEMBERS: Hear, hear.] – it does not really matter if the person is good looking, dresses well and it does not matter who they are related to. They must have the qualifications of running an air line. I do not know where this notion came from that if somebody is a trained pilot, they can run an airline, it does not follow.
You can be the best pilot in the world and fail to run an airline. Mr. Speaker Sir, it is like somebody who was once a soccer star of the year – for example George Shaya was a soccer star of the year five times, but it does not make him a good coach. You can get someone like Charles
Mhlauri who only played division two soccer but he took Zimbabwe to Tunisia form Africa Cup of Nations. So, Mr. Speaker, the Hon. Minister must get good people to run Air Zimbabwe. Commercialization, yes,
but it is not the panacea. The business model they are using at Air Zimbabwe is a 1976 Ian Smith business model; it does not work in 2017.
We are now computerised. There were no computers in 1976.
When you want to fly on South African Airways, all you need to do is go to your cell phone, make a booking on line, get an e-ticket and you walk to the airport. You just tell them your name and you get a boarding pass. However, Air Zimbabwe today, I can write a boarding pass at my house and go and board Air Zimbabwe – how do they know that this person has not booked with them when they are not on line. I can actually sell counterfeit tickets for Air Zimbabwe, give people boarding passes and they can go and fly because Air Zimbabwe is not online. A person can argue their case saying no, I got this ticket from your Harare office and they will fly because Air Zimbabwe is not online. What happens at the Harare office is not known at the airport because the two are not interlinked.
Mr. Speaker, in today’s aviation, when you are flying Emirates, they will tell you that we have closed the aeroplane; you actually see the door of the aeroplane open, the pilots are chatting away but they will tell you that the door has been closed because on their computer, the door would have been closed in Qatar. You go there and argue that but the door is open, they will tell you no, it is closed. What they really mean is that all the people are on board, the luggage is also on board; all they are doing is wait for their time to taxi and take off. This is the age of computers but Air Zimbabwe have to physically close the door, a woman will have to come and physically close the door then they will tell you that the door is closed and you actually see the pilots climbing into the aeroplane as if they are climbing a mountain.
Hon. Minister, Zimbabwe has educated people who can come up with good documents. I have always said this and I will repeat it. The problem that we have in Zimbabwe is that people have a tendency of writing CV’s where they have seven degrees. Seven degrees do not rum an institution, it is the skill Mr. Speaker. Our Government must have a template of how people must present their CV’s and they must have a template of how people must be interviewed.
Mr. Speaker, when you are employing somebody to run Air
Zimbabwe, allow them to give you their qualifications in one sentence either they have LLB and you know what it means; I have an MBA we know what it means but the tendency is that I have a B.A from University of Zimbabwe then they list all the subjects they did on a whole page with another three pages of additional qualifications. What you need to do when you interview people Hon. Minister is that tell us what your plan of turning around Air Zimbabwe is. We do not want to see where you went to school, we do not want to know your classmates, we do not want to know whom you had dinner with, we do not even want to know whom you sleep with. That is your business, all what we want to know is how you are going to turn around this business. When we interview you, we are saying – I have always said this and I will continue saying it. We have people who are running parastatals that have failed to run their own homes. A person who has failed to his run own home, a person who has failed to manage one woman at his house, how then do they manage 800 employees?
Mr. Speaker, we are saying that apart from your skills, tell us your personal life. It has an implication on how you run our institution. There are people today who are of no fixed aboard, they are given parastatals to run because he has three degrees and whatever else. Hon. Minister, going forward, we need a proper business model for the airline and there are many of them. Ethiopian Airlines, their business model is that wherever they are flying to and wherever they are flying from, you must pass through Ethiopia, Addis Ababa. If you are flying from Mozambique to Kenya, you pass through Addis Ababa; it is now the hub of aviation in Africa. Why can Zimbabwe not be a hub of aviation in this part of Africa, it can be done.
Hon. Minister, please go through the CV’s of all the people that are employed at Air Zimbabwe. Those that are related to us, please give them a package and let them go and employ people who can run that airline properly, effectively and efficiently. Thank you.
HON. NDUNA: Thank you for indulging me Mr. Speaker. It
gives me great pleasure now to wind up this motion. In particular, I
want to thank the speakers that have spoken after the Minister has presented and the acronym ‘TEAM’ together each achieves more. I want to give recognition to the Committee that I had that brought this to the fore. In particular, we spoke so eloquently, vociferously and effectively about square plugs in round holes which led to the replacement of one Chairperson of the Board, Abdulman Eric Harid, who himself did not have energy to run that entity.
So, credited to your committee that have brought to the fore the issue of CV’s of board and management in one of its oral evidence session.
I want to thank Hon. Temba Mliswa, Hon. Mashakada, Hon. Zindi and Hon. Maridadi who was the final nail in the coffin. Over and above that, the Hon. Minister has been very frank, honest in the state of affairs. He has not plucked out anything out of our recommendations and thrown it away. He has brought it here and has eloquently and elaborately articulated himself.
Mr. Speaker Sir, what we as a Committee also wants to be adopted in the same vein is the issue of computerisation which cannot be over emphasized, has been well ventilated; the issue of the internet booking engine that is the IBE and the International Aviation Transport Industry. The issue of engagement to IATA that has also been put also in our proposal to Hon. Chinamasa in terms of having US$3,5 million given to Minister of Transport so that we can be able, as Air Zimbabwe, to transport for other airlines passengers so that we can go further with what we have got.
Mr. Speaker, I also want to say the safety record of Air Zimbabwe which is housed by the Minister of Transport, really cannot be over emphasised. It is second to none in Africa and in the global community. If we as a nation can build on that one, it is the only thing that the Ministry of Transport prides itself of. The reason he has come here to give his responses is because he has stood shoulders above the rest on that safety record and we applaud him for that. I also want to thank him for saying to the House that there has already been a Cabinet Authority giving assent to the strategic partnership for Air Zimbabwe, in that triple
‘P’ is spoken about more than 17 times in ZIM ASSET and ‘tender’ word is only spoken about, only once. So, he has come here to actually elaborately come and say, yes not that we have failed but we are going the partnership way. He has spoken about some of the jets that are going to be bought for local and regional industry. We now want to see that coming to fruition.
We actually appreciate his sentiments on that. Mr. Speaker Sir, I now call for the adoption of this report in its form and with the recommendations that have been put across. I also want to thank you
Mr. Speaker for giving us this response to the Committee’s report on Air Zimbabwe.
Motion that this House takes note of the Report of the Portfolio Committee on Transport and Infrastructural Development on the operations of Air Zimbabwe, put and adopted.
MOTION
BUSINESS OF THE HOUSE
THE MINISTER OF TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT (HON. DR. GUMBO):
Thank you Mr. Speaker. Before I proceed, I would like to thank all the Hon. Members and say that all your contributions have been taken into consideration and I will do the best that I can. Having said that, because of health problems and attendance to the hospital, can I move now that Hon. Minister Dube contributes before I do the last Order, which is
Number 32. Having said that, allow me to stand over Order of the Day
Number 34 and allow Hon. Minister Tshinga Dube to contribute on Order Number 44.
Motion and agreed to.
MOTION
PROVISION OF ASSISTANCE TO HEROES’ DEPENDANTS
Fourty-fourth Order read: Adjourned debate on motion on the criteria for conferment of heroes’ status on deserving Zimbabweans.
Question again proposed.
THE MINISTER OF WELFARE SERVICES FOR WAR
VETERANS, WAR COLLABORATORS, FORMER POLITICAL
DETAINEES AND RESTRICTESS (HON. T. J. DUBE): Thank you Mr. Speaker Sir. Hon. Misihairabwi-Mushonga moved a motion, calling upon Government through my Ministry to ensure:
- The alignment of both the Heroes Act and National War
Veterans’ Act in Section 23 of the Constitution.
- Set objectives and more comprehensive criteria of the definition of hero vis-a-vis liberation war heroes and a national hero.
- Review, through public consultations the current policy of confinement of heroes status and;
- Ensure the dependence of war veterans of liberation struggle are treated fairly and with dignity in terms of benefits, legally due to them.
Mr. Speaker Sir, it should be noted that the Ministry was not in existence at the time when the Hon. Member put the motion. The Ministry was only established on 15th April, 2015. We want to thank you for drawing our attention to this motion which is older than us. Perhaps my colleagues from Defence, should have responded at that time.
Be that as it may, I now qualify to respond as Minister of War Veterans, War Collaborators, Ex-Political Detainees and Restrictees to the issues raised by the Hon. Member. By way of background, the august House will be pleased to know that my Ministry administers the following Acts:
- War Veterans Act, Chapter 11:15
- Ex-Political Prisoners, Detainees and Restrictees Act,
Chapter 17:10
- National Heroes Act, Chapter 10:16 and
- War Victims Compensation Act, Chapter 11:16
Originally, as the title of the Ministry suggests, we had formed
focus on war veterans, ex-detainees and restrictees and war collaborators. Within the Government’s programme of alignment of laws to the Constitution, our efforts as the Ministry since 2015 have been focused on repealing, in the process of amalgamating the War
Veterans’ Act and the Ex-Detainees’ Act into one. We wanted to amalgamate them into one Act called Veterans of the Liberation Struggle, Rights and Benefits Act, which also incorporates war collaborators.
The process is well underway and is now before Cabinet, from where it will follow due process to come to Parliament. All the issues relevant to war veterans in terms of the preamble Sections 3, 23 and 84 of the Constitution of Zimbabwe, amendment 20:2013 are comprehensively addressed in the process. Cabinet however, in its 39th meeting of 2016, held on Monday, 21st November, 2016 considered the proposed Bill and resolved to set an Inter-Ministerial Committee on the rights and benefits of the veterans of the liberation struggle, which will look comprehensively into all matters relevant to the alignment of laws.
The Committee comprises of seven Ministers and it is co-chaired by two Vice Presidents and yet to convene its first meeting soon this month. I want to assure you that should this due process which is underway fail to address any of the issues that were of concern to the Hon. Member, she will have an opportunity to raise those during the readings and debates when the matter comes to Parliament.
Regarding the alignment of the National Heroes Act to the new Constitution, the Ministry was only assigned administration for that Act and War Victims Compensation Act in March 2016. Stakeholder consultations are currently underway for a separate process to align these two Acts to the Constitution as well. Part of this process, the august House will recall that His Excellency, the President met with widows and other categories of veterans of the liberation struggle on 19th November, 2016. The President has further undertaken to meet widows to discuss more deeply issues specific to them. This will be next
Thursday, here in Harare.
I want to assure the Hon. Member and this august House that all the issues raised by the Hon Member are being raised and considered under on-going consultations. Obviously, the draft Bill, will in due course come to Parliament. If this comprehensive and exhaustive exercise by the Ministry happens to leave out anything of concern to the Hon. Member, there will always be room for her to motivate her views during the readings and debate of the envisaged draft Bill. Mr. Speaker Sir, I trust that I have answered the queries raised and should there be anything to elaborate, I am available in this august House.
By way of enlightening you even more, for now, when we talk of these groups, we are talking of about 34,000 war veterans who are registered and on pension, 6,000 ex-restrictees and detainees, 9,000 widows of the liberation war heroes, 20,000 non combat cadres – those who did not actually fight but did not have adequate training due to the fact that when they joined the war it was almost coming to an end. However, we still have a serious problem in establishing the exact number of collaborators because we can only do that after we have carried out the vetting exercise which is still underway. Thank you Hon.
Speaker Sir.
HON. MISIHAIRABWI-MUSHONGA: Let me thank the
Minister for his elaborate response to the motion that I brought to this House. Just a few issues around the response from the Hon. Minister, I think I am quite pleased that you have embarked on a process of realignment and that we will have the Bill coming to the House. I am hoping however that when that Bill comes to the House, yes, we will have a Portfolio Committee that will go and hold discussions at community level so that people can feed into the Bill, but I am also hoping that it will give an opportunity to the people of Zimbabwe to really deal with the issue around the liberation struggle in general.
I was listening to your numbers and those are the numbers that I also had. What concerns me is that when we are talking about war veterans, we are not taking about a massive number but only 34,000 people that participated in the liberation struggle. I do not think that should be a large number to deal with if we are clear about the things that we need to address for those people that participated in the struggle. I am also concerned that we continuously have processes that are delaying the finalization of that process. Thirty-six years after the liberation struggle, we should not be having a debate about what we should be doing with war veterans. It is an indication of how we, as a nation, have failed to deal with one of our foundational issues and we cannot have a future unless we deal with those foundational issues.
It is in order that we are going to have an elaborate process of going out and of dealing with the framework but what is it that the 34,000 want, if we just deal with those initially before we go to the vetting. We are talking just about their health. I do not believe that many of them have children that still need to be looked after as we speak because if I do my calculations, at least from the women’s point of view, the women who participated in the liberation struggle cannot be having babies at this time because if they went to war when they were 20, and 36 years later, they are now 56 years old. So, for all intents and purposes, we are dealing with the individuals who participated in the liberation struggle. What is it that these individuals need? They need to be looked after in terms of their health and social set up because as we know, some of them have no homes. Unfortunately, it is those that have not found themselves on the ladders of the political arena that have a problem.
If I go to Tsholotsho or Mt. Darwin and find the women or men that took part in the liberation struggle, they are the ones that are drinking beer at growth points. They are the ones without cars or bicycles. So, in my opinion, seriously as a nation, you cannot tell me that you are unable to put aside resources to allow these people to be looked after. It is not too much because when you do a comparison with other countries that have war veterans – and there are veterans all over the world, but you know what they have done, they have given them respect. – [HON. MEMBERS: Hear, hear.] - Respect is not usually equated to monetary issues.
Mr. Speaker, I am speaking about this particular House. I said that when I made my presentation and I am going to say it again because the Hon. Minister was not in the House when I raised this. I said, even in this House there should be a difference in terms of how we treat those that were part of the liberation struggle. Just the respect that we accord them but I can count in terms of respect, those that have gone onto the ladders of being given positions in Government or in other spaces –
- [HON. MLISWA: Inaudible interjection.] -
THE HON SPEAKER: Order, order Hon. Mliswa, when you
were contributing, Hon fellow Members were not heckling but they were listening to you. So, can you return the respect? Please sit down.
HON. MISIHAIRABWI-MUSHONGA: I was saying, if we
look around in this House, you cannot find those people being respected. I have had to only find out how amazing these people are after travelling and sitting down, particularly with some of the women and hearing the kind of stories that they have. I am however saddened because no one recognises that or sees that in these particular individuals. Two weekends ago, my brother who is a war veteran was stopped by a policeman and spikes were thrown under his car when he had children in the car. When I went there, I was so angry with the policemen but my brother did not say anything, though in normal circumstances he is a very vibrant person. As I drove home, he just sat there quietly and I asked him why he did not say anything and he said to me, “I sat there and said to myself, I walked on foot to go to Botswana and walked from Botswana to Zambia and spent half of my life fighting for this country and this is how I get treated by a 22 year old. Mr. Speaker, that is where I am coming from. For me, it is the respect that we accord them. It does not matter if a war veteran right now says something back to me. I will accord them the respect that acknowledges that I am here because of them. I think that is where we have missed as a country – [HON.
MEMBERS: Hear, hear.] –
My point therefore as I wind up this motion is to say to the Minister, we are not asking more of the funds, we are asking more of the respect that you accord these individuals. Even if it was just a small card that they do have so that at least if they get to a road block, they can show a card that says ‘War Veteran’ and they are respected in a particular way. You do it for us as Members of Parliament. It allows me at a certain stage to have particular respect that is accorded to me.
Why are we not doing it for war veterans?
The second point Mr. Speaker is to do with issues around widows and I am glad he says His Excellency is going to be meeting with the widows. I am hoping that in that conversation, we try and de-politicise the conversations about widows. Widows of the war veterans have nothing to do with which political party they are now in – [HON. MEMBERS: Hear, hear.] – The point is, they helped this man as he was in the struggle. They participated in part on that struggle. Let us acknowledge that in fact they probably were more traumatized. I was not at war but I would assume that when you are at war you can see what is going on. Daily she does not know whether this man is coming back. She hears that people have been bombed and she does not know whether her man is there. He comes back and probably has other kids that he has sired elsewhere. She needs to embrace all that and continue to be the wife. So, I am hoping that the conversation will transcend beyond the political issues.
Having said that, I hope that you will allow us to speak to our war veterans. I am prepared to stand and fight for their respect but there is one thing that I also would want them to do. They will not be respected unless they respect themselves and they respect each other. I said it in my presentation. It does not help the war veterans to continuously be attacking each other and saying you were not in the war; you did not do as much. We want to acknowledge them for the work that they did. So, the more they attack each other, the more they make it difficult for other people that are out there to do it.
I am hoping that as we go forward, as they understand that those of us who did not participate acknowledge and respect them. They will respect themselves and help us move forward – [HON. MEMBERS: Hear, hear.] – Hon. Minister, I am happy that you said you are aligning the Act to the Constitution. Now we are saying, veterans of the liberation struggle; we are acknowledging that everybody participated.
Of course, some were in the forefront and others were providing the chickens and whatever else that we gave. I hope that is also going to be considered. Like I said, move away from monetary thinking.
People went to war to facilitate the liberation of everybody else, to give us the decency to make a decision about who we want to govern us. So, we should not have a language that says because I went to war, I am the one who should continuously be in leadership. That is not the language that we fought for – [HON. MEMBERS: Hear, hear.] - The language was to say and that is the language that we want to hear from our war veterans – a language that says, I went to war to make you Priscilla independent and democratic enough to be able to speak without fear or favour. That is the language that we hear from our war veterans but I and others will be able to stand up and say war veterans need to be treated decently. We need to make sure that we give them the respect and the dignity that should be accorded.
On that point Mr. Speaker I would want to wind up this motion. I move for the adoption of the motion that this House -
NOTING that Section 23 of the Zimbabwe Constitution provides
for veterans of the struggle who are defined as;
- those who fought in the war of liberation;
- those who assisted the fighters in the war of liberation and those who were imprisoned, detained, or restricted for political reasons during the liberation struggle;
CONCERNED that the current War Veterans Act defines a war veteran as one who underwent military training and participated consistently and persistently in the liberation struggle, between 1st
January 1962 and 29th February 1980;
FURTHER CONCERNED that in practice, hero status is recommended by the ZANU (PF) Politburo, and that the President is designated in the National Hero’s Act with the conferment of hero status; COGNISANT that the National Heroes Act sets largely restrictive criteria of a hero, as one who is well deserved on account of his outstanding, distinctive and distinguished service to Zimbabwe; SADDENED that though the National Heroes Act has a provision for the Heroes’ dependants’ welfare, however, many of them remain unassisted;
NOW THEREFORE, calls upon Government to;
- ensure the realignment of both the Heroes Act and the National
War Veterans Acts with Section 23 of the Constitution;
- set objectives and more comprehensive criteria of the definition of a hero vis-a-vis a liberation war hero, liberation hero and a national hero;
- review, through public consultations, the current policy of conferment of Heroes status; and
- ensure that dependants of Veterans of the Liberation Struggle are treated fairly and with dignity in terms of the benefits legally due to them.
Motion put and adopted.
The Hon. Minister of Welfare Services for War Veterans, War Collaborators, Former Political Detainees and Restrictees having crossed the floor to embrace Hon. Misihairabwi-Mushonga. THE HON. SPEAKER: Order, order. I want to believe that was a warm gesture from a well-established known war veteran. Thank you – [HON. MEMBERS: Hear, hear.] -
MOTION
FIRST REPORT OF THE PORTFOLIO COMMITTEE ON
TRANSPORT AND INFRASTRUCTURAL DEVELOPMENT ON
CAUSES OF ROAD CARNAGE
34th Order read: Adjourned debate on motion on the First Report of the Portfolio Committee on Transport and Infrastructural Development on causes of road carnage.
Question again proposed.
HON. DR. GUMBO: Introduction
Mr. Speaker Sir, I would like to thank you for this opportunity to respond to issues raised in the report by the Parliamentary Portfolio Committee on Transport and Infrastructure Development resulting from an inquiry into the causes of road carnage. The report was presented to this august House in April 2014. I also wish to take this opportunity to respond to issues raised in the motion on the road accident that occurred along Harare-Nyamapanda road on 18th January, 2015. The motion was moved by Hon. Mubvumbi-Mawere on 25th February, 2015.
The Ministry has noted the issues raised in both the report of the
Committee and the motion and wishes to respond as follows;
Lack of Road Shoulders
Mr. Speaker Sir, there is a huge backlog on shoulder surfacing of the national trunk road network as well as regravelling of primary and secondary heavily trafficked roads due to lack of funding. The dualisation of the national trunk road network is being done though at a slow pace due to financial constraints. Dualisation is being done on the following projects:
- Harare-Gweru road from Norton to the tollgate at a cost of
$8.6m;
- Harare-Mutare road from Goromonzi turnoff to the tollgate at a cost of $6.3m;
- Chirundu-Beitbridge road to be done under (PPP)
Rural Road Network
Mr. Speaker Sir, the Ministry is alive to the huge backlog on the regravelling of the rural road network and upgrading some to surfaced standard. The programme has been hindered by insufficient funding. Mr.
Speaker Sir, I am pleased to report that we have exceeded the ZIM
ASSET target in grading which was set at 4 000km in five years. Cumulatively from 2013, we have graded in excess of 70 000km of rural roads which is a major milestone. I regret to say that as I speak to you there are no roads to talk about in the rural areas. They are all washed away and it is back to square one.
Lack of Perimeter Fences
Mr. Speaker Sir, my Ministry is aware of the contribution of stray animals to accidents on our roads due to the absence of perimeter fencing. The programme on fencing was started between Bulawayo and Plumtree but progressing at a slow place due to limited funding. A perimeter fence is being erected from Shangani to Bulawayo as a pilot project. Similar projects are to be undertaken annually. We have also launched an accelerated campaign against stray animals on our roads through community road safety programmes.
Mr. Speaker Sir, the Ministry through the Traffic Safety Council launched a programme on animal tagging and branding and again this has been progressing at a slow pace due to financial constraints
Dualisation of Trunk Roads and Cycle Tracks
Mr. Speaker Sir, both the report of the Committee and the motion refer to the need to construct cycle tracks and pedestrian crossings at road sections through cities and towns on the Beitbridge to Chirundu highway. Mr. Speaker Sir, construction on the Beitbridge-Harare road is scheduled to start soon with a view to dualising the highway. The designs will no doubt take care of the issues of cycle tracks and pedestrian crossings and thereby reducing accidents.
Signage and Carriage-way Markings
Mr. Speaker Sir, there is a huge backlog on carriageway markings and general signage on our roads. Regrettably, most road signs have been vandalised. We are acutely aware of the contribution this has had on accidents on our roads. The rehabilitation and replacement of road signage requires a huge budget but the Ministry is doing all it can within the limits of the resources that are available. I also appeal to all citizens to report any acts of vandalism as it not only costs the nation heavily financially, but in some cases through loss of lives or permanent disability.
New Highway Code
Mr. Speaker Sir, an upgraded Highway Code encompassing SADC signs is set to be launched on 30th March, 2017. I urge Members of Parliament and the public to familiarise themselves with the contents of the code.
Introduction of Road Safety Education into School Syllabi
Mr. Speaker Sir, a comprehensive road safety document has been submitted to the Ministry of Primary and Secondary Education’s Curriculum Development Unit (CDU) for consideration with a view to including road safety education into the school curriculum.
Road Safety Awareness Campaigns
Mr. Speaker Sir, the Ministry through the Zimbabwe Traffic Safety Council carries out continuous road safety awareness campaigns targeting, children in schools, Junior Parliament, chiefs, headmen, and village heads. The Traffic Safety Council also conducts training in defensive driving for both public service vehicles and private drivers all in a bid to reduce carnage on our roads.
Vehicle Inspection Department (VID)
Re-testing of PSV Drivers
The provisions of Article 6.10 of the Southern African
Development Community (SADC) Protocol on Transport,
Communications and Meteorology requires member states to issue Professional Driving Permit (Licence) or other documentation issued for professional drivers. The requirement of Professional Drivers Licence was introduced to facilitate trade and improve road safety among commercial traffic given the high mileage component of that type of
traffic.
In the case of Zimbabwe, as a member of SADC, the professional drivers licence is issued after the retesting of public service vehicle drivers as provided under Statutory Instrument 168 of 2006. Some of the requirements of public service vehicle drivers include:
- Proof of continuous driving for five years prior to driving a public service vehicle;
- He or she is a holder of a defensive driving certificate issued by the Traffic Safety Council of Zimbabwe;
- He or she has been examined by a Government Medical Officer and issued with a medical certificate.
The stated requirements assist in equipping the professional driver with competencies that enhance road safety as has been proven by the performance of PSV drivers since 2006. Other countries in the SADC region such as South Africa, issue a professional driving permit (PDP) to public service vehicle drivers in line with the SADC requirement which is equivalent to re-test in Zimbabwe.
The retests have seen a reduction in road carnage on public service vehicles, loss of valuable lives and property. In this context, the removal of re-testing of public service vehicle drivers will result in higher medical bills arising from increase in victims of road traffic accidents therefore, overburdening the fiscus.
Corruption
The Ministry has a zero tolerance policy to corruption in line with the aspiration of ZIM ASSET. In this context, we have implemented the following proactive strategies to curb corruption at the Vehicle
Inspectorate Department (VID):
VID depots are grouped into 3 categories i.e. small, medium and big respectively for purposes of analyzing their performance. The strategy helps the Ministry to monitor performance per each deport and be able to identify the existence of wayward behaviour through daily, weekly and monthly returns and reports analysis. This strategy has demonstrated its effectiveness where 24 officers have so far been fired when it surfaced from the analysis on the return that corruption was taking place at 5 VID deports. These included Chiredzi which issued
199 driver’s licences to undeserving applicants. They were cancelled by the Ministry through the findings and recommendations by the relevant directorate. The other four depots include VID Nyamapanda, VID Chinhoyi, VID Marondera and VID Kadoma that were found to have been issuing certificates of fitness to undeserving vehicles. In all cases, disciplinary actions are taken as long as there is admissible proof.
- We have erected conspicuous notice boards at all VID depots informing members of the public to phone the toll-free supplied numbers if they have been asked for consideration or a bribe by VID officials or by anybody in order to pass a vehicle for a certificate of fitness to obtain a driver’s licence. The calls go to other senior officials independent of the VID. What we require is credible information not speculation.
- In line with SADC harmonisation of standards for testing drivers, we have started constructing in all VID yards, SADC standard hill starts, 3-point-turn facilities, parallel parking facilities and reversing facilities. This strategy enhances transparency and fairness by ensuring that 80% of the test is done in the yard in the full view of members of the public, therefore, reducing corruption tendencies. Twenty percent of the road test is done in town where some senior officials carry out random quality control checks to minimise corrupt tendencies.
- We will be introducing in the near future, a balling system currently on a pilot basis at VID Eastlea. The system entails that learner drivers who would have come for a road test, pick a ball from a basket with an office number leading them to the examiner who will take them for the test. This strategy is envisaged to counter pre-arranged corrupt choice of an examiner for the practical tests.
- The Vehicle Inspection Department carries out 24 hour vehicle check/blitz as a strategy to remove un-roadworthy vehicles from the road as well as carrying out due diligence on certificates of fitness that would have been issued by our officers. The strategy also helps to nab and prosecute motorists who are found using fake driver’s licences.
- In line with advancement in the global village, VID as a learning organisation will in the near future move towards automation of its services which will help to reduce direct human interface, therefore, reducing corruption.
- We have introduced toll-free lines from the 6th of March, 2016 for members of the public to report corruption whenever they are asked for a bribe by any one, to obtain a driver’s licence or to pass a vehicle for a certificate of fitness. The toll-free numbers are displayed on all VID vehicles, at VID depots notice boards and within the VID premises for the public to use them.
- The Department has a 3-year transfer policy which helps in mitigating against over-familiarisation of officers with members of the public. Pursuant to the above policy, 46 VID inspectors were transferred from 23 countrywide depots on the 26th of August, 2016. I want to thank you Mr. Speaker for the time that you have afforded me.
HON. NDUNA: Thank you Mr. Speaker. Mr. Speaker, there
being no other debate, I stand to wind up this motion on the report on road carnage.
Once again I applaud the Minister for eloquently and elaborately putting the issues to bear in terms of responding to the recommendations of the Committee. I want to also applaud the Committee for coming up with this report on road carnage, eradication and annihilation of road carnage completely. I will reiterate that the Committee has Members in its team that is, together each achieves more that have experience in transport and management to the tune of about 50 to 60 years. A lot of them that are in transport business are embedded in that Committee.
That as it might be, the Minister has touched again right at the nerve of the causes of road carnage and chief amongst them; we have seen that it is collusion, corruption and nepotism. He has also said how he is addressing such issues. I want to also say, he is on point in terms of computerisation and integration where the driving schools, the VID, the RMT, the CVR and ZINARA who are the licencing port are all integrated and computerised with a view of making sure that all systems are speaking to each other elaborately.
In our recommendations, there was also a recommendation of an establishment of a traffic court and we are hoping that he can now go to the Ministry of Justice, Legal and Parliamentary Affairs together with his counterpart of that Ministry to go and see how they can establish a separate court that only deals with traffic offences because justice delayed is justice denied.
Mr. Speaker Sir, a lot of Hon. Members who are here, I am quite sure that they have children but, I lost two of my children in a road accident. I view that the other vehicle might not have been roadworthy, might not have been driven by somebody who has a licence, the other vehicle might have been driven by a phony, fake or a fraudster. So as I stand here, I effectively debate on the issue, it really touches at the pith of my heart because I have lost a whole generation of children that I could be having today because of road carnage.
Mr. Speaker Sir, I also want to applaud the Minister on the issue of the Traffic Safety Council who has started fencing Bulawayo to Harare highway. It is well applaudable. It was the recommendation of the
Committee that all future projects have roadside fencing in the package. So the Minister has elaborately spoken about that one, in particular that he mentions the Beitbridge-Chirundu highway that is now also going to have that package embedded in it.
Mr. Speaker Sir, he has also touched on the signage on the road. It is also an observation that, the reason why there is plundering and removal of road signage is because the material that is being used is common among rural communities and all road users, it is steel and they want to use it. The Committee also observed that if there are other sources of material used other than steel, there will be longevity and subsistence of the signage. In particular, if fiberglass is utilised for road signage, there will be no vandalism. As we speak, VID is only being used for post-accident interrogation.
As the Hon. Minister has alluded to, with integration and computerisation, it can also be utilised for pre-accident interrogation. It is my fervent view that what he has brought to fore can remove in total, all the fraudsters as I have said, the ‘phonisters’ and ‘fakesters’ in the certificates of competence by computerising the VID. As I have always said, computers do not ask for a bribe. Mr. Speaker Sir, there are about 96 000 certificates of competence that are being issued out each year fraudulently. What the Government is not getting out of that is US$15 million annually. If this money goes to road rehabilitation and also employ the Traffic Safety Council, this can go a long way. So the Hon. Minister is on point. In the other reports that are coming – because this report is as he has alluded to, from 2014. In the reports that are coming, we have requested that 40% be allocated to local contractors starting with the Beitbridge – Chirundu Highway because we have said what obtained on the Plumtree – Mutare Highway should not occur again in any future projects. That is going to make sure that money is circulating.
Mr. Speaker Sir, as I wind up, I want to thank the Hon. Minister for dualising or requesting for finance to dualise further the Harare – Mutare Highway from Ruwa to the Tollgate and the Bulawayo – Harare Highway from Norton to the Tollgate. It is highly applauded. It is also recommended that the monies that are embedded in the US$32 million road maintenance fund be used as a springboard so that the road from
Norton to Kadoma can be dualised. Mr. Speaker Sir – [HON. ZINDI:
Inaudible interjections.] –
THE TEMPORARY SPEAKER: Order please.
HON. NDUNA: Mr. Speaker Sir, once again I want to thank the Hon. Minister. Even though the reports were presented before his appointment, he has taken his time to come here and bear the burden of elaborately, effectively and eloquently responding to them. I therefore move that the motion on the First Report of the Portfolio Committee on Transport and Infrastructural Development on causes of road carnage be adopted.
Motion put and agreed to.
On the motion of THE MINISTER OF TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT (HON. DR. J.M.
GUMBO), the House adjourned at Twenty One Minutes past Four o’clock p.m. until Tuesday, 14th February, 2017.
PARLIAMENT OF ZIMBABWE
Wednesday, 8th February, 2017
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. SPEAKER in the Chair)
ANNOUNCEMENT BY THE HON. SPEAKER
APOLOGIES RECEIVED FROM MINISTERS AND ABSENCE OF
MINISTERS
THE HON. SPEAKER: I have received the following apologies from Hon. Ministers; Hon. Prof. Moyo, Hon. Dr. Mpofu and Hon. Dr. Musiiwa. I have asked the Government Chief Whip to invite the Acting Leader of Government Business to explain the absence of Ministers.
HON. MARIDADI: On a point of order Mr. Speaker. It is now 11 minutes into this sitting and business of Parliament has not started.
You said you had sent the Government Chief Whip to try and extract an explanation from the Acting Leader of the House to explain the absence of Ministers. Mr. Speaker, I think this is becoming a sick joke that every Wednesday, points of order have to be raised by MPs enquiring why Ministers are not available to come to Parliament. The Constitution is so clear on what is expected of Ministers. Section 107 (2) of the
Constitution says; “every Vice President, Minister and Deputy Minister must attend Parliament and Parliamentary Committees in order to answer questions concerning matters for which he or she is collectively or individually responsible” I then go on to Section 2 (2) of the Constitution which talks about the supremacy of the Constitution and says; “the obligations imposed by this Constitution are binding on every person, natural or juristic including the State, all Executive, Legislative, Judicial Institutions and Agencies of Government at every level and must be fulfilled by them.
It is now almost 15 minutes and we should have started business of this Parliament but 15 minutes later, we see Ministers waltzing into
Parliament as they like. Mr. Speaker, why do we not suspend Questions Without Notice segment and go onto other business and ignore
Ministers completely until such time as we feel they are taking this
House seriously, only then can we start to engage them. As it is, Ministers have disengaged Parliament, so I think we must respond in kind. We must also disengage and continue with other business of Parliament until Ministers are serious and then we can start to engage them.
THE HON. SPEAKER: Order, order Hon. Tshuma, please take
your seat quietly. This is a serious point of order. I have asked the officials to register the Ministers who came and when they came in. I shall also be writing to His Excellence, the President R. G. Mugabe on the issue and the violation of the Constitution by the Hon. Ministers. I
think that is the stage we have reached now and we cannot proceed accordingly. The Hon. Ministers, as representatives of the Executive should be in the front line of respecting the Constitution. Hon. Maridadi said we should waiver the question time and proceed –
I am sorry, I was going to talk about Hon. Chinamasa because he is the Acting Leader of Government Business and I am told he was supposed to go to Senate and proceed with the Finance Bill. Let me hear what the Hon. Minister has to say. – [HON. MEMBERS: Inaudible interjections.] - Order! Order. As the Hon. Minister Chinamasa was coming in, he had come to excuse himself because he is dealing with the Finance Bill in the Senate. He tells me that Hon. Ministers were enjoined to make sure that they are present today by the Hon. Vice President Mnangagwa. So, there is some element of defiance there definitely – [HON. MEMBERS: Reshuffle, reshuffle.] –
HON. GONESE: Thank you very much Mr. Speaker Sir. I
would like to thank you for the observations that you have made. I
believe that the Hon. Ministers are not just in contempt of this august
House but they are actually in contemptuous of the whole nation of Zimbabwe; they are not taking the people of Zimbabwe seriously.
I want to suggest Mr. Speaker that you invoke the provisions of
Standing Order 63. In terms of the provisions of that Standing Order,
the Ministers are actually in contempt of Parliament. I believe it is not sufficient just to write to His Excellency but it is now time for this august House to crack the whip, so that we also use the powers which are at our disposal over and above what the Executive might be doing.
It is my respectful submission Mr. Speaker that the time has now come for us as an institution to actually hold these Ministers accountable. I am asking that we have got the registers – let us look at all those Ministers who have been absenting themselves without your leave as provided for in the Standing Orders and let those Hon. Ministers be held accountable. Let them be held in contempt of Parliament. That is what I am seeking Mr. Speaker that with immediate effect, can you please put in motion the necessary steps to get the register of all those Ministers who have been contemptuous of this august House and the nation of Zimbabwe.
HON. CHASI: Thank you Mr. Speaker. I agree that the issue at hand is a very serious one in that on the face of it, it suggests a contravention of the Constitution. However, I would want to suggest that we must not treat this matter hastily as I think we are almost about to do. To treat all the Ministers as being in contempt without giving each Minister an opportunity to explain – [HON. MEMBERS:
Inaudible interjections.] – Yes. Mr. Speaker, I think it is very important that as Parliament, we must display the highest standards in terms of upholding the standards that are displayed in the Constitution. As I speak, we can already see some of the Ministers walking in – [HON. MEMBERS: Inaudible interjections.] – Mr. Speaker, this is precisely my point. We cannot engage in bush …
THE HON. SPEAKER: Order, order!
HON. CHASI: Mr. Speaker, what I am saying is that each Minister is entitled to give an explanation to this House as to why they are not in this House. It is improper to hold all of them en masse to be contemptuous of the House without giving them an opportunity to answer – [HON. MEMBERS: Inaudible interjections.] – Each one of the Ministers must be given an opportunity to explain why they are not in the House at this moment in time. The same standards that we are applying to the Ministers must apply to those MPs that do not come to this House. Ministers are not held to a different standard, compared to those MPs who do not come to the House – [HON. MINISTERS:
Inaudible interjections.] –
THE HON. SPEAKER: Order, order!
HON. CHASI: That is my point Mr. Speaker. I am just cautioning the House that we must not treat the Ministers en masse and say that all of them are in contempt and so we must hold them to be contemptuous. Thank you.
HON. MATUKE: Thank you Mr. Speaker. May I suggest that this issue be referred to the different caucuses so that we deal with that issue at caucus level – [HON. ZWIZWAI: Hatidi zvemacaucus. Inyaya yaSpeaker, Speaker ndiye mukuru. Ndezvavashe izvi.] –
HON. P. D. SIBANDA: Thank you so much Hon. Speaker. I sincerely appreciate what my colleagues from the other side have been saying. However, it is also important for me to state that I have never commented about the attendance or non-attendance of Ministers since I
came into Parliament. I represent the people of this country, I represent tax payers – [HON. MEMBERS: Inaudible interjections.] – I represent people that are paying through their nose to make these Hon. Ministers live a comfortable life.
My colleagues from the other side are encouraging the Speaker to take lightly the issue of people that are consuming tax payers’ money to play delinquency with the duty that they are charged upon to do. Hon. Speaker, we are an institution of Government that is charged with the responsibility to do a particular duty on each and every day as stated in the Constitution.
The Hon. Ministers are aware that every Wednesday, they have got a duty to report to this House so that they answer questions. The fact that they take lightly that responsibility, means that they do not sympathise with the tax payers of this country that are meeting the cost of whatever they are enjoying as Hon. Ministers – [AN HON.
MEMBER: Inaudible interjections.] – I feel you are enjoying and that is why you do not care about coming 30 minutes late to Parliament.
THE HON. SPEAKER: Order, order. Can you address the
Chair.
HON. P. D. SIBANDA: Hon. Speaker, it is my sincere belief that if as Parliament we are going to respect the people of this country, I think action has to be taken against the Hon. Ministers. Thank you.
THE HON. SPEAKER: Order, order! I think I had ruled already and I take cognisance of what Hon. Chasi, Hon Sibanda and Hon.
Gonese have said. We have entered into a register the times when the Ministers here present have come in and we have a register of attendance of Ministers every Wednesday. That will be rationalised and a detailed report with my letter will go to His Excellency accordingly.
Hon. Maridadi had suggested that we waiver the questions. Now there are a handful of Hon. Ministers present here, I want to stand guided. Can we proceed with the questions now that we have some Ministers here?
HON. MARIDADI: Mr. Speaker Sir, yes. Thank you for this
opportunity but I think this is the last time that we are indulging Ministers – [HON. MEMBERS: Inaudible interjections.]- We could proceed and revert to the business as outlined on the Order Paper but it should be made very clear to Ministers that this is the last time that we are indulging them in this manner. We could proceed as it is outlined on the Order Paper.
*HON. CHINOTIMBA: On a point of order. I want to seek clarification on why the Chair requested Hon Maridadi’s opinion on whether the House should proceed with normal business in view of the fact that we now have Ministers in the House. I thought the proper procedure would have been to request and see whether the House agrees or not? Be that as it may, I think we should proceed with business as outlined on today’s Order Paper.
THE HON. SPEAKER: The Chair has discretion. There was no
need for a seconder or objection on that matter. I think the facts were very clear and the matter was put in a very level headed manner. Should the situation arise in future, we shall be guided by your suggestion. I thank you.
ORAL ANSWERS TO QUESTIONS WITHOUT NOTICE
*HON. CHINOTIMBA: My question is directed to the Deputy
Minister of Public Service, Labour and Social Services. The Reserve
Bank of Zimbabwe has allowed civil servants to withdraw a once-off $300 of their salaries to minimise bank charges and transport costs. The situation is different from council workers who are patching up potholes and have to withdraw $50 everyday accumulating bank charges of $5 per every transaction. My question is, is this a fair labour practice and are we not segregating the workers? Why are civil servants more special than the rest of the workers?
*THE DEPUTY MINISTER OF PUBLIC SERVICE,
LABOUR AND SOCIAL SERVICES (HON. ENG
MATANGAIDZE): I want to thank the Hon. Member for this important question. What happened is that when we held a meeting with the Apex Council, a request was made by Government employees that we request the Reserve Bank Governor that they can allow for a once of withdrawal of an amount of $300. We will try to take it up. Thank you.
*HON. CHINOTIMBA: Mr. Speaker, where we came from, we
were leaders of workers unions and I would like the MPs in here to know that. I am asking him as the Minister because he is the leader of workers that when the request was made, did they not recognise that they were now diving civil servants and all the other workers when they agreed to that request? I thank you.
*HE HON. SPEAKER: Order, Hon. Chinotimba. The Hon.
Deputy Minister has admitted. So, let him go and discuss with the Governor about that issue.
HON. HOLDER: Thank you Mr. Speaker. My question is
directed to the Minister of Primary and Secondary Education. What is
Government’s policy regarding schools acquiring state of the art vehicles for personal use by headmasters? For instance, headmasters are now driving 4x4, Ford Rangers and so on, yet that money could be used for other developments at the school. What is the policy regarding schools acquiring state of the art vehicles for headmasters?
THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): Mr. Speaker Sir, I thank the Hon. Member for raising this very important question where they have observed our school heads driving 4x4s that appear to be state of the art vehicles. Whether there is policy on this matter, quite clearly we think that a school should acquire a bus for the use of its pupils and teachers. A school can also acquire a 4x4 vehicle or some two wheeled vehicle and these are matters that facilitate the transaction of school business. This is all that we can say at this point. After all, it must be noted that the School Development Committees are the ones that do the purchasing and then through an act of donation, allow the property to accrue to the school’s assets. Thank you.
THE HON. SPEAKER: Can I warn the House. Please, listen very carefully to the response by the Hon. Minister because some supplementary questions are a waste of time. I will allow one.
HON. MAONDERA: Hon. Minister, in light of the instruction that you gave that all the monies from School Development Committees must be transferred to SSF – will there not be abuse by the headmasters where they will end up buying those luxurious vehicles?
HON. DR. DOKORA: I again stand to thank the Hon. Member
for a pertinent question on the implication that I directed that the School Development Committees credit the SSF Fund with the school development levies. I think it is premature to affirm that. At the moment, we were busy doing the consultation on the Education
Amendment Bill itself to align it to the Constitution. Then below that
Education Amendment Bill, there are two governing Statutory Instruments – one that relates to school development associations and another that relates to School Development Committees. It is those two that will now be unified as an outcome of the process of aligning the Act itself to the Constitution. Only after that unification or harmonisation will we are able to indicate that now it is lawful and this is the direction that we take. Thank you.
HON. KHUPE: Thank you Mr. Speaker. My question is directed to the Minister of Environment, Water and Climate Hon. Muchinguri.
First of all I would like to thank God Almighty for blessing us with a lot of rain because water is our most precious resource. Almost 70% of our bodies consist of water. My question is, what is Government’s policy in regards to harvesting of water as opposed to allowing it to run off. Water can be harvested from roofs of buildings and from rivers and this water is very essential for livestock, irrigation, gardening and for domestic use if properly treated. We do not want to experience what we experienced before the rains came where people were going for five days without water? I thank you.
THE MINISTER OF ENVIRONMENT, WATER AND
CLIMATE (HON. MUCHINGURI): Thank you Mr. Speaker. I
would want to thank Hon. Khupe for that very important question. Government policy is very clear that it is a must for us to harvest all the water by way of damming, building weirs and we harvest all water from roof tops. We are unfortunately not able to do much because of limited resources. It is the responsibility of Government to make sure that each individual enjoys having access to water and where funds permit, we
will be able to harvest as water as possible. However, as we stand right now, we were only given very few dollars on our budget and I cannot promise heaven but appeal to Hon. Members, where possible to mobilise resources to assist communities. Our engineers are more than ready to provide technical assistance. I thank you.
HON. CHAKONA: Thank you very much Mr. Speaker. My supplementary question is that a number of dams and weirs were washed away, what efforts are being made by the Government to repair those dams and weirs?
HON. MUCHINGURI: Thank you Mr. Speaker. Unfortunately, because of excess rains which we received this year, resulting in our rivers flowing, some of it to an extent of causing floods in a number of areas; it is not advisable for my Ministry to embark on any repairs on any weirs and dams. When the river flows become reasonable, we will be able to work with the relevant authorities to make sure that we undertake that responsibility to repair the dams and weirs. I thank you
Mr. Speaker.
HON. MUCHENJE: Thank you Mr. Speaker Sir. What is
Government’s intervention plan or policy on the damaging effects of the heavy rains on the environment and on people?
HON. MUCHINGURI : Thank you Mr. Speaker. I want to thank the Hon. Member for that very important question. Unfortunately, the responsibility to assist those affected by either floods or flooded rivers rest on the Ministry of Local Government, Public Works and National Housing, which houses the department of Civil Protection Unit (CPU) I advise her to redirect the question to the relevant Minister. I thank you.
THE MINISTER OF LOCAL GOVERNMENT, PUBLIC
WORKS AND NATIONAL HOUSING (HON. KASUKUWERE):
Thank you Mr. Speaker Sir. Let me thank the Hon. Member for the question relating to the efforts that my Ministry through the Department of CPU is taking to assist our people who are in distressed situations because of the rains. Clearly, we have been affected almost throughout the country, Tsholotsho, Binga and so on – [HON. MEMBERS:
Inaudible interjections.] –
THE HON. SPEAKER: Order, order. Can the Hon. Minister be heard in silence please?
HON. KASUKUWERE: We have received support from the Air Force of Zimbabwe through rescuing and helping our people trapped or marooned. However, with regards to housing, my Ministry through the Department of CPU gives support to the affected families to the tune of about US$100. In addition, we try and source food and various items like tents so that we can assist the families. I agree that it might not be enough owing to the challenges that we are facing. However, as you are aware, we made a request to the Ministry of Finance and Economic Development for US$5 million, but our budgetary requirements have not been entirely met. Hence, we have that challenge. However, we want to thank the various Non Governmental Organisations (NGOs), our sister Ministry of Public Service, Labour and Social Services, which has been making efforts to support us to try and resettle as well as rescuing those families. I thank you Mr. Speaker.
HON. ZVIDZAI: Thank you Mr. Speaker Sir. My supplementary to the Minister of Local Government is around the same issue of assistance to distressed people as a result of…
THE HON. SPEAKER: We cannot hear you – [HON.
MEMBERS: Inaudible interjections.]
HON. ZVIDZAI: Recently in Binga, more than 12 lives were lost as a result of lightning and it caused a lot of emotional distress, fear and so on in that community. I wonder why the CPU did not come in and assist. Is it Government policy to ignore such disasters?
HON. KASUKUWERE: Mr. Speaker Sir, I want to thank the Hon. Member for the question raised. Binga was one such case that distressed us as a Ministry. To date, if my memory serves me well, over 78 people have lost their lives in the country. We know for a fact that we lost a number of lives in Binga, but we have a localised assistance institution in the form of the local department of the CPU headed by the District Administrator (DA). It also cascades all the way to our councilors. What happens when there is such a disaster, the councillors are called upon to inform the DA who heads our local department of CPU. From the DA it moves on to the province all the way to the national response institution. I am aware that we have been responding very much to the challenge in Binga. However, like I have said, it is a major challenge that we are facing across the country and we sympathise with the challenges that the families have gone through. However, we are trying to support them in the best possible way. Thank you very much.
HON. ZINDI: Thank you Hon. Speaker. My supplementary question is directed to Hon. Muchinguri – [HON. MEMBERS: Inaudible interjections.] – that is the source of the question.
THE HON. SPEAKER: Order. That cannot arise as a supplementary question.
HON. MUDARIKWA: Thank you Mr. Speaker Sir. Good
afternoon to you Mr. Speaker Sir. My question is directed to the
Minister of Primary and Secondary Education. Hon. Minister Sir, what is the national policy of your Ministry regarding schools that have gone for five years – Grade Seven primary schools, with zero percent. Are you going to send these teachers back to the colleges – [Laughter.] – or are we going to see heads roll? Thank you Mr. Speaker Sir. I want to thank the Hon. Member for asking a pertinent question and for his request to say what is the policy of the Ministry with regards to the academic scores that we generally regard as the pass rate. It is common cause that when young people spend a year or two in a school and they gravitate towards their national examinations; the expectation is that they will have some credible evidence that they have gone through that board of experience.
Two things happen, the first of course, we must commend those that do well. In those schools where the kids are performing well, it is an indicator of the teacher’s steadfastness in those circumstances but we must also acknowledge the sterling work being done even in those institutions that may actually yield a zero percent pass rate because we must look at the material conditions. As a Ministry, we then target those schools for special attention in respect of staff development for those teachers, material improvement; it could be learning resources for those kinds of schools. So, if the Hon. Member is conscious of the schools that are affected in their particular constituency and the two things that I have described here have not taken place, then they should alert me to that situation and we can correct. Thank you.
HON. ZIYAMBI: Thank you Hon. Speaker. If I heard Hon.
Mudarikwa well, he said there are schools that persistently produce no pass rate for five years or more and the Minister is saying we must applaud those schools for they are doing something. He is telling us that those schools that are not producing a pass rate have been with those pupils and have done a great job when there is not a single pupil who has passed. At least if there is evidence of some pupils who have passed and then the Minister comes with his innovative ideas that we take those teachers and send them for special training, that would be understood.
However, what he is insinuating is that those communities have pupils or the general population is dull and they need special training. I think the Minister did not answer the question to the effect that when there is a persistent failure, there is a persistent failure. What is the Ministry doing because honestly, we cannot say that if there is a persistent failure, the community is of failure it needs special education.
There must be some pupils who should shine from that community. What is it that is happening to the teachers who are failing to produce a single pass rate? I thank you.
HON. DR. DOKORA: Hon. Speaker, I take great care to listen to
Hon. Members’ questions and I also hope that they in turn raise questions that are following the response that we have given. I did not in any way here, say that failure is to be condoned. I did indicate that there are two things that we can do and I invite the Hon. Member to act in concert with that position that we can do staff development. It does not mean sending them away, it means they can be staff developed within their school and we can also impact on the material conditions resourcing that school so that they are able to work on those materials and improve the outcome.
However, I must now put a rider because the Hon. Member is insinuating these matters. We have diversified the curriculum, precisely to be able to capture the wide latent talent so that we are not forcing kids through a narrow grid of academic work. So, we must be able to vary the curriculum, some that are able to do well in the tech-voc area, some are able to do well in the academic areas. This is the approach. Thank you.
HON. P. D SIBANDA: Hon. Minister, you are talking of varying the curriculum, is the varying of the curriculum including introduction of Islamic studies and are you Moslem yourself?
HON. DR. DOKORA: I want to acknowledge the question that has been raised by the Hon. Member on my right, who asks a useful question but betrays it by imputing a personal angle to the question. I would want, before I respond to this Hon. Members’ second question, to also ask them to declare what faith they are? I hold this Rosary here, so whether I say one thing or another, you are fixated with what you have been reading and that may not necessarily be a fair invitation to a contestation here. Thank you – [HON. MEMBERS: Inaudible
interjections.] -
The enlargement of the curriculum that we have done is to capture the variety of skills and aptitudes that learners do have. The question of religion is not an innovation of the new curriculum. If you take the
1980-1987 curriculums in this country, you will find Judaism, Islam, Christianity, all in play and those syllabuses are available for comparison. So, exactly where this question is coming from, certainly not from the new curriculum, we are not introducing Islam, it has always been there just as Judaism – [HON. MEMBERS: No, no.]- look at the syllabuses. Thank you.
HON. P.D SIBANDA: On a point of order. Hon. Speaker, with all due respect to the Hon. Minister, my question was quite clear and straight forward. Is the expansion of the new curriculum introducing
Islamic studies? I think that is what the nation is waiting to hear from the Hon. Minister. Let him answer that question because there is clear apprehension from the people outside there that the Hon. Minister intends, through expansion of the curriculum, to introduce Islamic studies. Does he intend to introduce Islamic studies into our education?
I thank you.
HON. DR. DOKORA: Hon. Speaker, I do not know how I can
put it. I said, the old curriculum is available and the new curriculum is also available. You will find that we have maintained the themes as carried in the old curriculum to the new curriculum and we can make it available for publication. We are not introducing Islamic studies, they were already there –[HON. MEMBERS: Inaudible interjections] –
*HON. MAHOKA: My question is directed to the Minister of Primary and Secondary Education. What is Government policy regarding…
THE HON. SPEAKER: Order, order! I allowed the questioner
first, Hon. Sibanda to clarify. You cannot start raising points of order. Either you ask your first question or a supplementary, not a point of order.
Hon. P.D. Sibanda having wanted to speak
THE HON. SPEAKER: I have not recognised you. What is your supplementary question?
HON. MUTSEYAMI: My supplementary question to the Hon.
Minister of Primary and Secondary Education is, what is the motivation which is driving you within these past three years, you have been the
Minister responsible for the Ministry, we have had so many changes. What motivates you to have all these changes, bearing in mind that in many ways it is so stressful on the part of teachers and children. What is this motivation which is driving you so much to have this curriculum changed? – [HON. MEMBERS: Inaudible interjections] – [HON.
MEMBERS: Hear, hear.] –
THE HON. SPEAKER: Order, order! I am hesitant to name some
Hon. Members. If I call you to order, please comply. Can we hear the Hon. Minister?
HON. DR. DOKORA: The Hon. Member seeks to understand the
sources of our efforts to implement a new curriculum. Hon. Speaker, this nation will remember that in 1998, His Excellency, the President appointed a Commission of Inquiry into Education and Training. That Commission was headed by Professor Nziramasanga. He reported in 1999 and a battery of changes were proposed in that curriculum. 1999 is some distance from where we are. We have also in 2013, began the process of consultation to update the recommendations in the light of the current global and national context.
Out of that, we were able to zero in on the recommendations that are possible to be implemented within the current – [HON. MEMBERS:
Inaudible interjections] –
THE HON. SPEAKER: Order! Hon. Damasane, please! Hon.
Minister carry on.
HON. DR. DOKORA: So, for the Hon. Members who are
scholarly and wish to draw further ideas and consolidate their understanding with the new curriculum, that 600 page volume is available at the Curriculum Development and Technical Services Office.
It is available and it was presented to Cabinet and acceded to in 1999.
The updating that we did - post 2013, we had the Government’s
Blueprint for development of relevant curriculum for the nation and that is under ZIM ASSET.
My task in the Ministry was to produce that relevant curriculum for our time and that is what we have achieved. That is what we are about going on to implement. Thank you.
HON. MAJOME: on a point of order Mr. Speaker. Thank you
Mr. Speaker for affording me room to make this point of privilege. Mr. Speaker Sir, I want to request through you that the Hon. Minister makes available to Hon. Members, copies of this new curriculum because from what I have gathered, Hon. Members are debating something we have never seen. It is equivalent to the Shona proverb of kuera nyoka negavi iyo isipo. Ngavaunze nyoka yacho tione.
I understand that Hon. Members need this so that they see it, it represents our constituents, so that we can engage from an informed point of view and consult our constituents. May be our fear about the curriculum is not serious. From what I gathered, even the Portfolio
Committee on Education has not seen itand we were not consulted. We also need to consult our constituents. So, it is a point of privilege Mr. Speaker Sir, so that we get copies of the curriculum, see it and engage with the Hon. Minister. – [HON. MEMBERS: Inaudible interjections] –
THE HON. SPEAKER: Order, order! I think Hon. Majome’s
proposal is reasonable. It may not be sufficient just to distribute.
Perhaps if the Hon. Minister can be so indulgent to conduct a workshop
–[ HON. MEMBERS Hear, hear.] – and bring in the Summary of the Nziramasanga report and then the document on the new curriculum so that Members of Parliament can interface with the Hon. Minister. Hopefully we reach some understanding of some of the motivations behind this.
HON. DR. DOKORA: I would like to thank you Hon. Speaker. I
would like to thank Hon. Majome for raising the matter. I think there is no harm from my part to issue a second set to all Hon. Members because these were issued – showing Hon. Members a copy of the document. If I raise this one, some of you may be able to remember this document. I am the happiest Minister to be able to say that we will issue the documents and then we will follow it up with the proposed workshop, just to unpack the substantive issues that are contained therein. I am aware that the Portfolio Committee from the days when it was being chaired by the now Hon. Member for Norton and then another Member who chaired the Portfolio Committee and the current Chair Hon. Kanye are part of a series of engagements that have been made with Parliament. I am happy to oblige and I will provide the materials as well as to engage in a workshop.
THE HON SPEAKER: Order, order Hon. Members. The matter
is closed and I shall not allow any supplementary questions. We shall have the workshop and deal with the matter more decisively.
*HON. MAHOKA: My question is directed to the Minister of Primary and Secondary Education, Dr. Dokora. What is Government policy on the issue of school children travelling 15kms to go and write examinations because satellite schools are no longer allowed to hold Grade Seven examinations? Last year you said we should build a block and strong rooms but now you wrote to those satellite schools that Grade 7 pupils can no longer write their exams there but to walk 15kms to go and write examinations elsewhere, which is a very long distance for pupils to travel to write examinations.
THE MINISTER OF PRIMARY AND SECONDARY EDUCATION (HON. DR. DOKORA): The Hon member seeks
information on whether school children will continue to walk 15kms to 20kms for purposes of writing examinations. Our interest as a Ministry is not to maintain schools as satellites but to be able to develop those schools alongside with the communities, so that they become established and registered. So, this is an early reminder to say that this requirement of the Ministry will give that additional impetus to the communities to work towards developing the necessary requirements for registration. However, all reasonable steps will be taken to ensure that the examination …
THE HON. DEPUTY SPEAKER: Order, order Hon. Minister, I
think I heard the Hon. Member asking her question in Shona.
*HON. DR. DOKORA: For a school to be eligible for registration, it should have adequate blocks and strong rooms to keep the examination papers as well as a house or two to enable the Head and some other member of staff to stay at the school.
THE HON. DEPUTY SPEAKER: Order, order Hon. Members,
please lower your voices. They are no longer whispers. Everyone would like to hear the Minister’s response.
*HON. DR. DOKORA: That is our wish, to have satellite schools to be established and registered. The Hon Member’s question is emanating from the letter received from ZIMSEC which is responsible for ensuring that there are no examination paper leakages. I am actually proud of the standard that ZIMSEC has set which saw us having no leakages at all in the last examinations because of the control measures that they have put in place. So, if these letters have been sent so early in the year, they want to ensure that those satellite schools and their communities work towards ensuring that their schools are registered.
Towards examinations, we then check who has prepared adequately to hold examinations and who has failed to do so. Indications will be given to those who will have acquired the required standards to hold the examinations at their schools.
*HON. MAHOKA: The Minister did not answer my question
fully. Now that they have not yet built those schools, does it mean these children should walk 20kms or they should stop writing examinations?
*HON DR. DOKORA: I did say because the letters have been sent so early in the year, you are being given ample time to ensure you have the required structures. I know MPs have always worked hard to fund raise with their communities – [HON. MEMBERS: Inaudible
interjections] –
*HON. MARIDADI: On a point of order Madam Speaker. Can
Minister Dokora not give simple answers when responding to questions? He is using idiophones but without saying anything. Hon. Dokora, please give us simple answers so that everyone understands. Why do you harden your heart so much? What is it Minister? Please, I implore you Minister.
*HON. DR. DOKORA: I know that our mother language is not easy for everyone. So, if Hon Maridadi is saying he does not understand idiophones - but that is what our children are learning in schools.
However, to answer the supplementary question, you should not see the Ministry as being insensitive to the distances being travelled by the pupils. I said in response to the supplementary question, we should not feel as a Ministry that we do not care about the children. We care for them – [HON. MEMBERS: Inaudible interjections.] - We said that we are going to look for funding to come up with a joint venture. I once explained what that meant and I said that for us to have a joint venture and have schools registered, there should be an alignment of the Education Act to the Constitution. Once we have done that, we can work with the parents and pupils so that we can raise the initial capital from the private sector and be in a position to deliver in these institutions. This is what we should be doing. Treasury has given us …
*HON. CHINOTIMBA: Madam Speaker, I have a point of
order. I think that maybe we should go with the Minister to our communal home so that he can appreciate what is on the ground before he comes here – [laughter.] – By the word communal home, I meant we should take him to the ZANU PF caucus before he comes here to respond to these issues. I thank you.
THE HON. DEPUTY SPEAKER: Order, order Hon. Members!
Can we have order please! I am calling for order Hon. Members!
HON. GONESE: I have a point of order Madam Speaker. In
view of the fact that we started Question Time a bit late, I had consultations with my counterpart, Hon. Matuke and we were of the same mind that if we could have an extension of time. I think we started about 30 minutes late. In that same vein Madam Speaker, I am asking and I thought I was going to have universal from both sides of the House.
THE HON. DEPUTY SPEAKER: Can you come to the point.
HON. GONESE: I am asking for 30 minutes extension Madam
Speaker.
HON. MATUKE: I second.
Motion put and agreed to.
HON. MLISWA: On a point of order Madam Speaker, it is
important for the two sides of the House to recognise that there is an independent candidate, so they were talking, I was not consulted – [HON. MEMBERS: Inaudible interjections.] – While I will allow this to go on, when they are trying to seek the House to consult, it is important for both sides of the House to understand that there is an independent candidate – [HON. MEMBERS: Inaudible interjections.] – I heard the Chief Whip saying he consulted the other side. I could object to that because I do not belong to that side. Can you consult me next time? It is important.
*HON. ZIYAMBI: Thank you Madam Speaker. My
supplementary question is directed to the Minister of Primary and Secondary Education. Section 75 of the Constitution says everyone has the right to basic education. Hon. Mahoka made reference to what is also occurring in my constituency. The Minister came here and said Hon. Members should work hard to ensure that schools should be there. This is in contradiction with the Constitution. The Constitution says basic education is a right to every child and Government should provide that. When the satellite schools are being closed, is the Ministry complying with the Constitution? Thank you.
*HON. DOKORA: The Hon. Member has made reference to the
Constitution. Also, referring to the Constitution, we have basic education at primary and secondary education. However, it is going to be done in a progressive fashion when we have resources that are there to respond to the demand side of education. As a Ministry, we accepted that satellite schools could function as normal schools so as to fulfill that requirement in the Constitution of this country. What has been raised as a question initially is not the closing of the satellite schools but the issue of conducting examinations – [HON. MEMBERS: Inaudible interjections.] - No school can conduct an examination when they do not have material conditions to ensure that examination papers are secured.
When we get to examination times around October, ZIMSEC works with the district offices. The examinations are distributed from the district office to a school on a daily basis. It means that after the examinations have been written, they have no right to keep the scripts at the school. Thank you.
HON. BHEBHE: Thank you Madam Speaker. Can I have it noted that for three consecutive weeks I have always wanted to ask this question and Hon. Minister Chombo comes here for 15 minutes and he is gone. In particular, last week I was asked by the Hon. Speaker to hold my question so that I can ask it this week. I have a national constituency which is the motor industry, where all the motorists are our clients. I am under pressure to have this question answered by the Minister. In that case Madam Speaker I believe that whatever policy that happens in Government is tabled in Cabinet, therefore I will direct this question to whoever is the Leader of the House at this juncture.
Madam Speaker, as I have just said my question should have been directed to the Minister of Home Affairs…
THE HON. DEPUTY SPEAKER: Now the Minister of Home
Affairs is not in the House and the Leader of the House, Hon Chinamasa is in the Senate, are you appointing the new Leader of the House?-
[HON. MEMBERS: Yes]-
HON. BHEBHE: In that case I will ask the question and the Leader of the House should answer. Is it Government’s policy..
THE HON. DEPUTY SPEAKER: There is no Leader of the
House, Hon. Bhebhe. Could you please bear with the House so that we can go ahead and ask other questions?
HON. BHEBHE: Hon. Kasukuwere is offering to answer the
question.
THE HON. DEPUTY SPEAKER: He is the Minister of Local
Government, Public Works and National Housing. Bear with us Hon.
Member.
HON. BHEBHE: I will bear with you Madam Speaker. I would want to be assured by yourself Madam Speaker, that next week Hon. Dr.
Chombo should be in the House and should not run away in 15 minutes because we have pertinent questions that have been postponed for a very long time.
THE HON. DEPUTY SPEAKER: We will make sure.
HON. GONESE: On a point of order. Thank you very much Madam Speaker. I think the point raised by Hon. Bhebhe is very important. We have an Hon. Minister of Government who was in this august House and we all know that Question Time has not ended. I think it is unacceptable and it is not the first time. If you recall I once raised that issue when the very same Hon. Minister performed a disappearing act. It must be noted and that the Chair should bring it to the attention of Hon. Minister Dr. Chombo that when Question Time starts, he must be here until end of Question Time so that we do not have this scenario coming up time and again.
THE HON. DEPUTY SPEAKER: I hear you Hon. Chief Whip. I
think we have got to look into that so that we write him. Once a Minister stands up you will not know where he is going. You cannot hold him back. I think we are going to write to him.
HON. NDEBELE: On a point of order. Madam Speaker please indulge me. I want to weigh in on the same one. I am a junior Member of this House and I am totally surprised why we have a whole school of ministers, why they cannot organise themselves as to come up with a temporary Leader of the House so as to attend to important national business. What is playing out in Education is a clear example of failure by this Government to do anything.
THE HON. DEPUTY SPEAKER: Hon. Member, please take
your seat. The Leader of the House is not elected. He is appointed by the appointing authority. It is not the duty of Ministers to elect each other.
Can we proceed with other questions?
HON. MLISWA: Madam Speaker you made a ruling that there are no more questions. With due respect, you did make a ruling. We must make progress. Not only that, the Members of Parliament can take pleasure in that the Minister of Primary and Secondary Education will be appearing before Portfolio Committee on Education, Sports, Arts and Culture tomorrow. We will be with him. We must make progress. You did rule.
THE HON. DEPUTY SPEAKER: Hon Mupfumi, if we call for
order you go and sit down so that we recognise the one who will be holding the floor.
Hon. Mliswa, I was giving a ruling on supplementary questions on that particular question. Now I think I am advising the Hon. Member that he should not ask same question because on that one we are going to have a workshop where we are going to be given copies of the Nziramasanga Report. Please refrain from repeating what we have been discussing.
*HON. MUPFUMI: There are 16 official languages in Zimbabwe and I see that Shona and Ndebele are the predominant languages. Now that you are saying the same Shona and Ndebele should be taught, why should we not have the 16 languages taught from primary education so that all the teachers know all these languages?
*THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): Thank you for the question
Hon Member. I believe this is a question that we can expatiate and debate over it during the MPs workshop.
HON. P. D. SIBANDA: My Supplementary is in line with the question that the Hon. Member asked, we understand that the Ministry has decided to introduce teaching of Mathematics in Shona and Ndebele.
Is that the current Government’s policy and if it is the current policy, what about those areas where Ndebele and Shona are not taught in the schools? In what languages will Mathematics be taught?
*HON. DR. DOKORA: I believe that there is now a vast
difference of what the questions are like. If you look at the new education policy, it says that a child should be taught in vernacular when they are in the infant class, which is the first class meaning, the ECD up to Grade 2. We have never restricted that to Shona and Ndebele. We are saying whatever language is in the Constitution, the teachers in those areas should be able to speak the mother tongues of that region. That is the basic policy of the Government and this is to ensure that the children benefit from a medium of instruction in their mother tongue for ECD up to Grade 2.
For Grade 3 upwards, it will be different. In the past we used to say, Grade 1 to Grade 3, it will be Ndebele and you would use English here and there. Then from Grade 4 upwards, we then start instructing in English. We have lowered that Grade 2s be instructed in their mother tongue and that only in Grade 3, they should get the instruction in English. In infant classes, such subjects as Maths and other sciences can be taught in their mother tongue. Let me give you a clear example. If we say we have introduced science in the infant grades, that is ECD up to Grade 2. We would say, if you take a feather and put it on the table and tell the children that are in the ECD or Grade 1 and say we want to find out who can blow some air on to this feather so that it moves - you will be instructing the children about energy. I thank you.
HON. P. D. SIBANDA: What is going to happen to those areas where Ndebele and Shona are not taught? Secondly –[HON.
MEMBERS: Inaudible interjections.]-
THE HON. DEPUTY SPEAKER: Order, order Hon. Members.
What is exciting? I do not understand honestly. I think the Minister answered your question from his first part but I think the mistake that was made by the Minister is that you asked in English, and then he answered in Shona. So may be the Hon. Member did not understand the answer.
HON. MLISWA: On a point of order Madam Speaker. In terms
of Section 6 of the Constitution which is under languages, it is very clear where it says; ‘The following languages, namely Chewa, Chibarwe, English, Kalanga, Nambya, Ndau, Ndebele, Shangani, Shona, sign language, Sotho, Tonga, Venda, Tswana, Venda and Xhosa are officially recognised as languages in Zimbabwe.’ It goes on to also say on (3)
‘The State in all institutions and agencies of Government at every level must a) ensure that officially recognised languages are treated equitably;’ It is in the Constitution and you cannot start this one and not start the other and b) taking into account that the language preferences of people affected by governmental measures or communications. 4) ‘The
State must promote and advance the use of all languages used in
Zimbabwe, including sign language,’ which also comes into picture’. I also represent the disabled in my Constituency and how did they benefit from this. We must create conditions for development of those languages. Can we be guided by the Constitution?
THE HON. DEPUTY SPEAKER: I still remember that that question was answered sometime back here in the House but, maybe the Hon. Member was not yet here. If I may be helped by the Minister to give an answer on that one?
THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): The constitutional provisions
are very clear to the Ministry and we have raised this matter to a level of policy. This is why when we talk of the use of indigenous languages in the instruction at infant level; we are making reference to the provisions of the Constitution. So, if a school is in a Nambya area, Tonga area and so on, that is where that language will be used at that level. So surely, we cannot be expected to do much more than that at this stage.
Additionally, I do not train teachers but I staff develop those that have already gone into additional training. So, I will then staff-develop them to ensure that we are talking about an infant level which is ECD to Grade 2. Thank you.
HON. GABBUZA: Thank you Madam Speaker. I believe that my question cannot wait for a workshop because I am worried about examination classes. Minister of Primary and Secondary Education,
Grade 7s are already preparing for examinations and so are Form 4s. My wish for clarification is to know, which curricula are they preparing the examination in?
THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): The old curriculum. Thank
you.
*HON. ZEMURA: Thank you Madam Speaker. My question is
directed to the Minister of Primary and Secondary Education. There is an issue at schools where uniforms are no longer purchased from shops. The schools now produce their own uniforms and with very small badges on jerseys. Their uniforms are exorbitantly priced – at $25 whereas you can buy them from ordinary uniform suppliers for $2. Is that Government policy to make life difficult for the parents? I thank you.
THE HON. DEPUTY SPEAKER: After this question, I would
ask Hon. Members to ask questions to other Ministers who are not in education.
*THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): Government policy is that,
where the uniform is sourced from is not important – whether it is from a shop or from a school. We expect that the procurement procedures are properly done. People are involved in competitive bidding – one says it is $10 and so on and if it is not being done, our audit teams will pick up on that one as they visit the schools. If there is a specific issue, you put it in writing so that we can follow up with that particular institution but uniforms can be purchased from anywhere. I thank you.
*HON. MLISWA: My question is directed to the Minister of
Public Service, Labour and Social Services and in her absence, her Deputy. Whilst I was still in ZANU PF, in our campaign, we promised to create 2.2 million jobs. Of the 2.2 million jobs that we promised to the people, especially youths – in my Constituency, Norton they do not have jobs, how many have been created by the Government? – [HON.
MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: That question was answered.
HON. MLISWA: But I do not remember it being answered – [AN HON. MEMBER: Yapfuura iyo.] – For my benefit because I was not here, can I be told how many. I have a right to know, I represent my constituency, I was not here and this has to do with my constituency. As such, can you respond and tell me the figure; I will be most obliged
Madam Speaker.
Hon. Member, it was
answered last week and it is in the Hansard. Hon. Member, I think you will help the whole House because we cannot keep on answering the same question every week.
HON. MLISWA: Madam Speaker, the Hansard for last week has not yet been published, so what should I do? It is a simple question, I was not here, he must answer.
THE HON. DEPUTY SPEAKER: Hon. Minister, can you please
answer the question.
THE DEPUTY MINISTER OF PUBLIC SERVICE, LABOUR AND SOCIAL SERVICES (HON. ENG. MATANGAIDZE): Thank
you Madam Speaker. I concur that we have gone to lengths to answer this question and clearly, he can go online and pick the answer from the Hansard online.
HON. MLISWA: He must answer my question.
He is answering – [HON. MEMBERS: Inaudible interjections.] – Hon. Minister, if you have the answer to this question, you will have to answer. If you do not have, you can say you will bring the answer to this House so that it becomes clear.
HON. ENG. MATANGAIDZE: Thank you Madam Speaker.
Like I said, we have already covered this issue. If there are specific details, that he requires, by all means, he should put it in writing then we follow up – [HON. MEMBERS: Inaudible interjections.] –
HON. MLISWA: Madam Speaker, the Government offered 2.2 million jobs, he is the Minister of Public Service, Labour and Social
Services. Out of the 2.2 million jobs, how many jobs have been created? There is no need for me to put it in writing. It is the duty of Government and his department to create jobs. Can we be told how many jobs have been created, it does not need a written questions, he must have statistics when he is coming here or else he must be fired and go to his constituency.
Hon. Minister, can we have
statistics on this particular question – [HON. MEMBERS: Inaudible interjections.] – Order, Hon. Members.
HON. ENG. MATANGAIDZE: Madam Speaker, I have been
clear on this. If he requires specific numbers like he is asking for specific figures, surely, he should put that in writing so that I respond –
[HON. MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Order, order. Hon. Mliswa, I
think we require the answer which is well researched and with statistics.
Would the Hon. Minister go and do that and bring it next week.
HON. MLISWA: You said it was answered before I persisted on this, what did he answer? You said it was answered last week, we are a Parliament of record. Madam Speaker, you said it was answered and today you say you must put it in writing. So what answer did you proffer to us – [HON. MEMBERS: Inaudible interjections.] –
HON. GUZAH: Madam Speaker, should the House capitulate only to the whims and caprices of one Hon. Member here – [HON.
MEMBERS: Inaudible interjections.] – I also want an answer from you Madam Speaker. At some point in time, the question that has been raised is a particular question, which regards specific statistics. Why should those statistics be available here at this instance when the Minister has indicated very clearly that he is going to produce those results? Why are we capitulating – [HON. MEMBERS: Inaudible interjections] –
Hon. Guzah having been using unparliamentary language against Hon. Mliswa was sent out by the Deputy Speaker and escorted out by the Sergeant At - Arms.
THE HON. DEPUTY SPEAKER: Can we have order please. I wanted to explain. Hon. Mliswa I am not sending you out because you were seated but you were making a lot of noise. I reprimand you because you have to behave yourself – [HON. MEMBERS: Inaudible interjections.] – Order Hon. Members. If I call for order, you sit down.
I want to explain to Hon. Mliswa.
Hon. Mliswa having continued to talk.
THE HON. DEPUTY SPEAKER: Hon. Mliswa I will send you out – [AN HON. MEMBER: Send him out, send him out.] – [HON.
MEMBERS: Inaudible interjections.] – Can we have order.
Questions Without Notice were interrupted by THE HON.
DEPUTY SPEAKER in terms of Standing Order No. 64.
HON. TOFFA: On a point of order! The Minister of Education was meant to give a Ministerial Statement last week and he has not done so.
THE HON. DEPUTY SPEAKER: Hon. Member, today is a
Wednesday, it is a Private Members day. So, the Minister cannot give a statement and also if he does not bring it, it means he is not ready. If he is ready he brings the statement here.
ORAL ANSWERS TO QUESTIONS WITH NOTICE
POLICY ON COMPENSATION OF PEOPLE DISPLACED FROM
THE ZAMBEZI VALLEY
HON. P. D. SIBANDA asked the Minister of Local Government, Public Works and National Housing to state whether the Ministry has a policy to compensate the people who were displaced from the Zambezi Valley during the period 1955-1958 to pave way for the construction of Kariba Dam.
THE DEPUTY MINISTER OF LOCAL GOVERNMENT, PUBLIC WORKS AND NATIONAL HOUSING
(HON.CHINGOSHO): Thank you Hon. Speaker. I am sorry, I have been supplied with wrong papers.
THE HON. TEMPORARY SPEAKER (HON. DZIVA): Hon.
Deputy Minister does that apply to all your questions?
HON. CHINGOSHO: Yes.
HON. P. D SIBANDA: On a point of order, Order Number 69, I just wanted it to be put on record that last week, the Hon. Minister of
Local Government was in the House, he saw the question but before the
Questions with Notice, he went out. Today, again he has done the same and left his Deputy ill prepared. So, I just wanted to be at least on record that that is how the Minister of Local Government is behaving towards this question.
THE TEMPORARY SPEAKER: The Minister came with wrong
papers and I think it is an error.
MEASURES TO CREATE WILDLIFE SANCTURAY IN RESETLD
FARMS
- HON. CHIMANIKIRE asked the Minister of Environment,
Water and Climate to inform the House on the measures that the Ministry is taking to create wildlife sanctuaries in resettled farms that have been vandalized by poachers in areas such as Mashonaland Central
THE MINISTER OF ENVIRONMENT, WATER AND
CLIMATE (HON. MUCHINGURI): Thank you Madam Speaker. I
would like to thank Hon. Chimanikire. One notable wildlife sanctuary in resettled areas of Mashonaland Central Province with poaching problems is the Manzou Game Park. The Zimbabwe Parks and Wildlife Authority deployed ranchers to Manzou Game in order to deal with poaching. The ranchers have been permanently deployed and are carrying out anti-poaching activities with the aim to create a safe haven for wildlife.
Looking into the near future, Madam Speaker, the Parks and Wildlife Ecologists will be carrying out assessments on resettled farms in order to establish community conservancies particularly for farmers who wish to carry out wildlife farming on their farms and have expressed the interest to do so to our parks authority. I thank you.
BENEFITS TO VILLAGERS FROM THE CAMPFIRE POLICY
- 5. CHIMANIKIRE asked the Minister of Environment, Water and Climate to give a summary of the benefits to villagers from the campfire policy in the first six months of 2016 province by province.
THE MINISTER OF ENVIRONMENT, WATER AND
CLIMATE (HON. MUCHINGURI): Madam Speaker, at present
Campfire benefits are largely generated from the hunting of various species of wildlife. Most of the Communities from provinces that benefit significantly from Campfire are located in districts that are adjacent to National Parks and buffer areas for wildlife management.
Safari hunts are spread across the entire hunting season from April to October but practically stretch into December of each year.
It will therefore be misleading to disaggregate community benefits for the first six months across provinces as that would greatly distort the correct position regarding the extent to which communities are benefiting or are not benefiting from the campfire programme.
I am however, pleased to report that campfire association has just completed a verification exercise of the income received by communities in 10 districts for the period 2010-2015 for 10 major districts with wildlife. These districts are Beitbridge, Binga, Bulilima, Chipinge, Chiredzi, Hurungwe, Hwange, Mbire, Nyaminyami and Tsholotsho. The results show that over the last 6 years, the income generated from trophy fees is approximately US$11 million.
HON. P. D. SIBANDA: On a point order. I notice that a Member who had been ejected out of the House, suddenly came back. I think he has realised and has gone out. Thank you.
HON. MUCHINGURI: The results show that over the last six years, the income generated from trophy fees is approximately US$11 million, while a further US$4 million has come from the sale of hides, concession fees and other sundry income. The agreed split of these funds….
HON. MUTSEYAMI: On a point of order Madam Speaker. My
apology Hon. Minister. I stand guided Hon. Speaker, if a person is ejected from the House, he is entitled to leave the complex. He is not allowed to remain within the periphery of Parliament. How come an
Hon. Member ejected stays outside and is within the periphery of Parliament?
THE TEMPORARY SPEAKER (HON. DZIVA): Your point of
order Hon. Mutseyami has been noted. It is only that there had been miscommunication between the Serjent-at-Arms and the Speaker who was here. According to Standing Order Number 108, “the Chair must order a member whose conduct is grossly disorderly to withdraw immediately from Parliament for the remainder of that day’s sitting.
The Serjent-at-Arms must act on such orders as he/she may receive from the Chair in pursuance of this Standing Order. Members ordered to withdraw in pursuance of this Standing Order or who are suspended in pursuance of Standing Order Number 109, must immediately withdraw from the precincts of the House.” So, he is not allowed to come back to the House. Thank you for that.
HON. MUCHINGURI: The agreed split of these funds is that not less than 55% of the revenue is paid as ward dividends, not more than 35% is allocated to the Rural District Council (RDC) for wildlife management, habitat management, fire control monitoring and hiring of game scouts. Fifteen percent is retained by the RDC as an administrative levy. On average, the campfire district wards received 42%, ranging from 23% to 66% of the combined concessions and trophy fees but the wards received approximately 58%, ranging from 26% to 77% of the trophy fees.
Madam Speaker, the United States of America’s suspension of ivory imports from Zimbabwe in 2014 has had a significant impact on campfire and resulted in the cancellation of 108 out of 109 which is 57% elephant hunt in all major districts initially booked by USA citizens in 2014. The net impact of this was a reduction of campfire income for all areas from US$2.2 million in 2013 to US$1.7 million in 2014. A similar pattern prevailed in 2015 with only US$1.6 million realised and a further decline is anticipated in 2016 where outfitters struggled to sell elephant safaris. Those that did had to heavily discount their prices. Negotiations for the opening of the ivory imports into America are at an advanced stage. I thank you Madam Speaker.
HON. SANSOLE: I would like to find out from the Minister - why is it difficult to identify where the US$11 million accruing from trophy fees, was from which national parks, which Rural District Council benefited and to what extent? Thank you.
HON. MUCHINGURI: I am afraid Madam Speaker that, that
information was not provided. Perhaps, if he could put it again on the
Order Paper, then we can undertake some more research. I thank you.
THE TEMPORARY SPEAKER: Hon. Sansole, your question
needs a more detailed answer, if you may put it in writing so that the Minister will look into the issue.
PLANS TO ASSIST WOMEN IN MINING
- HON. CHITURA asked the Minister of Women’s Affairs, Gender and Community Development, to inform the House whether there are plans to assist women involved in mining who are facing challenges of exorbitant prices in securing those claims.
THE DEPUTY MINISTER OF WOMEN’S AFFAIRS GENDER AND COMMUNITY DEVELOPMENT (HON.
DAMASANE): Madam Speaker Maám, let me wish you the compliments of the season and my Hon. Members for 2017.
An Hon. Member having said something unparliamentary
THE TEMPORARY SPEAKER: Order, Hon. Member, please
withdraw your statement. I want the Hon. Member to behave like an
Hon. Member of Parliament. Can you please withdraw your statement?
Hon. Murai, between the two of you, there is someone who said something. Hon. Mutseyami, can you please withdraw your statement now before I ask the Serjent-at-Arms to escort you out. Hon. Mutseyami, be honourable and withdraw your statement. I will not allow that in the House.
*HON. MUTSEYAMI: Ndamedza.
*THE TEMPORARY SPEAKER: Wamedza chii?
HON. MUTSEYAMI: I cannot remember what I said. I withdraw
everything.
THE DEPUTY MINISTER OF WOMEN’S AFFAIRS, GENDER AND COMMUNITY DEVELOPMENT (HON.
DAMASANE): Madam Speaker, I would like to thank the Hon.
Member for raising the question. Madam Speaker, the mining sector in Zimbabwe has generally been regarded with mystification as a sector for the rich and powerful. This is because mining is associated with high capital investments, big machinery and underground activities. For women, the situation is made worse by occupational segregation and lack of access to capital, even for the most basic tools.
Madam Speaker, as positive discrimination strategy to enhance women’s participation in the mining sector, the Ministry always pursues negotiations with relevant Ministries and departments for them to charge reduced rates to women miners. Madam Speaker, the following proposals have been made to relevant Ministries:
- To extend the payment periods for the charges, that women miners be allowed to mine before full payments of the total charges required then the charges be deducted from the periodic sales of minerals until full payments have been made.
- Government to subsidise charges made to women miners as a way of economic empowering through the mining sector.
- To encourage women to mine in groups so that they share the burden of raising the required initial capital.
A case in point is Kitsiyatota Mining Consortium for Women which has demonstrated that women are able. These women are in Bindura, Mashonaland Central and their activities have caused the
Ministry of Mines and Mining Development and Frederick Rebecca
Mine to allocate claims to women and the youth. Furthermore, in all the
10 provinces, the concept of putting women’s activities in the sectors yields good results. I urge Hon. Members, Madam Speaker, to take seriously these sectors namely, Women in Agriculture, Women in Mining, Women in Trade – the list is endless.
Madam Speaker, the voice of women by sectors is audible other than an individual woman approaching Ministries in legal matters, pricing or securing of claims. Those Hon. Members who follow Questions Without Notice religiously will recall what the Hon. Minister of Mines and Mining Development, Hon. Chidhakwa, said about women in mining. He said that women are good debtors hence, the financial interventions by ZB bank in assisting women. Women are so faithful and Fidelity has it on record that women come to sell the minerals there.
Madam Speaker, some of these proposals are part of the Mines and Minerals Bill which is before the House. I would also want to urge all
Members of Parliament to support the empowerment of women through the mining sector in their constituencies. Furthermore, the challenges of exorbitant prices for the claims vary from constituency to constituency. For instance, Hon. Members are able to negotiate with big mining companies to give tributaries to women, that is to say they give part of their claims to allow women to carry out mining activities. For instance, it is taking place at Patchway Mine in Kadoma. I thank you Madam Speaker.
HON. GABBUZA: Thank you Madam Chair and thank you to
the Deputy Minister for a very elaborate response and for the efforts that they are doing to assist the women miners. What I wish to enquire on, Madam Speaker, is the issue of extension of payment for the claims. Unfortunately, the Ministry of Mines and Mining Development has not done so. Could the Ministry be in a position to assist further because most women miners, their claims have been forfeited for failure to pay, especially in Matabeleland South regions of the Umzingwane District? Could the Ministry be in a position to further engage with the Ministry of Mines and Mining Development and perhaps waiver, particularly for women, on that particular issue?
HON. DAMASANE: Madam Speaker, I would like to thank the Hon. Member. I think in the last paragraph, I said this varies from constituency to constituency. So, I will urge the Hon. Member, so that I give him a befitting answer, by supplying me with those exact areas. I have given an example of Patchway in Kadoma. That is happening - thanks to that Hon. Member who did. So, he can supply me so that next Wednesday, we can respond to his supplementary question meaningfully.
HON. NDUNA: Madam Speaker, are we cognisant of the fact that the Deputy Minister of Women’s Affairs, Gender and Community Development will not dwell deep into the Mines and Minerals Act. My follow up question or clarification would be to the effect of how she is going to contribute towards the occupation of the claims by women and the subsistence of those claims in total, in that women get to be evicted as soon as they get on to the claims by their male counterparts as the fairer or weaker sex.
Also, aware Madam Speaker, that Section3 of the Gold Act criminalises possession. What is it that the Ministry is going to do to expeditiously get the Minister of Mines and Minerals Development to bring the Act for repealing in this House in order to protect the women and also aware that Section 3 (68) of the Mines and Minerals Act outlaws prospecting without a licence in the advent of 2000 Agrarian Reform Programme. These women are the ones that are being disenfranchised because of this archaic, moribund, historic and antiquated piece of legislation. What is it that the Ministry is doing in order to just encourage the Minister of Mines to bring that piece of legislation so that the House can repeal it? I thank you.
HON. DAMASANE: Thank you Madam Speaker. I will also thank the Hon. Member for his questions. First and foremost, the question raised with notice was so specific to basic operations with how the women are assisted and the like. Now, if we go to the Act, it is now for my counterparts in the Ministry of Mines and Mining Development because the Act is not embodied in the Ministry of Women’s Affairs, Gender and Community Development. That is why I said the Ministry is working hand in hand with the Ministry of Mines and Mining Development to put across proposals that will appear in the Mining Bill that will favour women and the youth. That is my basic answer for the question which comes after the one with notice.
Then secondly, what happens in my alluding to sectors within the
Women’s Affairs, Gender and Community Development Ministry and within the women’s community is that we have women in mining and these bodies are legal and have presidents. When we meet, as a Ministry, the presidents of women in mining, women in agriculture, feed into the three departments of women affairs, the gender department and the community development as to the actual position in the grass roots of what is taking place.
So, we can take along on board his sentiments and how we can curb the issue of women being evicted from claims, but I would say off the cuff, we are making inroads because of the mood of the Ministry of Mines and the mood of the women in mining and their groups.
Everybody is sensitive to a mother or a youth who is into mining. We are not thinking of the bigger aspect of how Unki, ZIMASCO or Gold Medallion is doing. Let me end there Madam Speaker.
MEASURES TO CURB THE PROLIFERATION OF THE BLACK
MARKET
- HON. MAHIYA asked the Minister of Finance and Economic
Development to explain the measures in place to curb the proliferation of the black market which is likely to emerge as a result of the introduction of the Bond notes.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA: My response Madam
Speaker is that the black market for foreign exchange the world over is caused by the scarcity of foreign exchange, that is when the demand for foreign exchange is higher than supply. Black market for foreign exchange in Zimbabwe, if it exists, is therefore not caused by bond notes. Black market for foreign exchange is prevented by increasing the supply of foreign exchange which means increasing exports and any other receipt of forex such as diaspora remittances.
Madam Speaker, bond notes are trading at parity with the US$ as is evidenced by the parity prices in all major retail outlets. If the black market exists, then it means that those who are participating on the black market are doing so for nefarious purposes that include externalisation.
It is also imperative to note that the Reserve Bank’s strategy to use small denominations of $2 and $5 bond notes is designed to mitigate against black market practices. I thank you.
HON. MUTSEYAMI: Thank you Madam Speaker. I am very
grateful for the pronounced response from the Hon. Minister.
However, my supplementary question purely on the aspect of the black market rates happening with regards to the bond money; there is a situation which is happening as we speak now which is going towards the issue of black market. If you manage to have time Minister, may you move out of the office and move around town on foot and not in your Mercedes Benz. We have informal shops around town, especially the electrical shops and hardware, they have price tags for products in the shop in US$, bond money, Eco-cash transfer and swipe. These are varied prices for the same product. This is happening here in Harare in most informal shops.
HON. CHINAMASA: I have taken note of that and it will be investigated and it is reflecting that someone owning that informal shop wants to externalise US$. The problem that we encountered last year through the drying up of the foreign exchange market was caused by especially foreign businesses coming to mop up our US$ which is why we introduced the bond notes in order to stem and stop capital flight of the US$.
I want to say that in the long term, the measures that have been taken by the Reserve Bank will certainly dry up availability of that foreign exchange to those who want to practice black market activities. I say so because and I pointed out this in this august House before – since May last year, we are moving away from an over-liberalised foreign exchange market to one which is managed. What this means is that we know which players or companies export out of the country.
Almost 80-90% of exports are managed through the central bank. The central bank has now introduced a system whereby for each export, it retains 50% foreign exchange for use for importation of fuel and also for use by those economic players who are into import substitution who may want to import raw materials. The other 50% goes to the exporters, for itself and also for purchase of spares and raw materials. We think that over the future and as we start the tobacco auction system, we should be able to know what foreign exchange is coming in through the traditional structured channels and we are going to manage it for the entire economy and not for individuals.
There will be very little foreign exchange available outside that market which can be traded on the black market.
HON. MISIHAIRABWI-MUSHONGA: Thank you Madam
Speaker. My question to the Hon. Minister is, in the event that one has gone into a shop and what Hon. Mutseyami has said is happening, what does one do?
Yesterday, I walked into a pharmacy and not an informal shop. I wanted to buy drugs. They now have specific drugs which are cash drugs and they want US$. If they say cash, they want US$. There are drugs which you can buy by swiping and those that you can buy using bond notes. You cannot buy specialised drugs using bond notes or through swiping.
As I speak, Zuva Service Station at Groombridge is saying you can only swipe for 20 litres, anything else has to be paid in cash. If you are saying this is illegal, what do I do if I encounter such a situation? Is there a number where I can phone? Do I report them to the police?
What is the current policy of Government?
HON. CHINAMASA: Thank you very much for bringing these developments to my attention. These are matters that I am going to discuss with the Governor. Infact, we were discussing precisely these developments especially the incident you mentioned about Zuva – all fuel importers are not using their own foreign currency. They are using foreign currency that they are given by the central bank so they have the least excuse to demand payment in foreign exchange. These are issues that clearly we are going to follow up. If there is any loop-hole in the law, we will certainly seek to close it.
I can understand those because at the moment we are going through a patch of problems of availability of foreign exchange to import raw materials. So, if something like this is happening, I can understand where they are coming from in order for them not to collapse their industries. However, we are giving priority to importation of fuel and they are given foreign exchange directly. They are not using their own foreign currency, they neither create foreign currency nor export fuel. So it is an issue that we will look into and we will come up with an answer soon. – [HON. MEMBERS: Inaudible interjections]. -
THE TEMPORARY SPEAKER: I think the Hon Minister is
clear that they are going to look into the issue and come with a response on the measures that they will take on that issue.
HON. GABBUZA: The Minister talks of people that are banking money in the formal system, they can apply for it but we have our friends, the Asian community along Chinhoyi street and the Nigerians, all of them are not banking money. I am sorry to mention the nationalities and countries but that is what is happening. They do not accept swipes, they will take the cash and throw the bond notes back into the streets to buy the higher denomination at $107 for a single $100 note. What do we do about those? Is there a policy to make it obligatory for people, especially businesses to bank money into the formal system so that the cash is available?
HON. CHINAMASA: I must say that the policy with respect to banking is in place and what might be lacking is enforcement, which is why it is important that these reports are made directly to the Central bank, who can enforce the Banking Use Promotion. It is against the rules of anti-money laundering for businesses to receive cash and put under the pillow. The law requires them to bank all the proceeds. What we need to put in place are enforcement measures to ensure that those you are reporting to us are basically supervised. Clearly, if Zuva is accepting foreign currency as cash payment, I doubt that they are banking it. You should report such issues to the Central Bank because there is a department that deals with issues to do with anti-money laundering activities or you can phone the police. It is also essential to identify those who are breaching the law so that they can be brought to account.
STRATEGIES FOR ATTRACTING DEPOSITS IN THE FINANCIAL
SECTOR
- HON. MAHIYA asked the Minister of Finance and Economic
Development to explain to the House, the contingent strategies for attracting deposits in the financial sector to encourage banking of money by the informal sector.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Government has put in
place a national financial inclusion strategy to promote banking by those who are currently unbanked. The strategy involves putting in place a number of initiatives which target the priority groups that include SMEs, Women, Small Holder Farmers and Youths. In addition to the national financial inclusion strategy the RBZ is also putting in place measures to promote deposits from the informal sector through various schemes. I might also take the opportunity to say, in the last season, we honoured all our commitments on maize deliveries to GMB. We insisted that those should be paid through the commercial banks. So, anyone who delivered maize to GMB was obliged to open a bank account and all payments were done through the commercials banks. We did the same with respect to tobacco auctioning. All those 90,000 tobacco farmers, the majority of whom had never had a bank account were obliged to open a bank account through which all receipts were made.
We are going to insist with respect to cotton growers that they should also be able to open bank accounts. We have done that with respect to artisanal miners – makorokoza and when we pay through Fidelity Refiners and Printers, we are insisting that they open bank accounts. I do not think you can think of any skill in terms of financial inclusion, encouraging savings and banking more than what we have already achieved so far. That is in the agricultural and mining sector.
Thank you Madam Speaker.
HON. WATSON: Could the Minister say that those people, who in his explanation have been encouraged to open bank accounts, were required to conform to having an ITF 263 which is a tax clearance certificate. In creating a situation, we will take our informal sector into the formal sector. Currently, those of us who are in the formal sector are having immense problems in terms of conforming to ZIMRA’s requirements. Will those people – artisanal miners for example, be in a position in fact, to comply? Will they want to, because at the moment it feels like a war zone for those of us who have been compliant for years, who followed what we were required to follow and have tried but are yet to fully succeed? It has become so incredibly difficult and there seems to be little or no leeway for businesses that have been formalized for many years, including export businesses in terms of the requirements, in order to have gained this year’s RTF 263.
HON. CHINAMASA: I am not aware so far of any difficulties that have been encountered by the 90,000 tobacco farmers to open bank accounts. In fact, we went out of our way to simplify the requirements because we were challenged, specifically with respect to tobacco farmers. I am not also aware with respect to those farmers who delivered maize to GMB of any challenges that they had with ZIMRA with respect to opening bank accounts. If there are any specific challenges, please bring them to my attention so that I can engage ZIMRA, to understand the rationale behind their requirements. This is with a view to simplifying so that we do not have this problem cropping again and again. Under the exercise that Government is undertaking under the programme, ease and cost of doing business, those are issues that we are looking at but we cannot just talk about ease and cost of doing business in general terms. We have to zero in specifically for instance on the problems affecting the sector that you are talking about. It is them who should tell us what the challenges are because we make the laws but we do not know how it affects you. We make rules, forms and we do not know how it affects you. It is up to you to engage us so that we have a clear understanding and whether we agree with you or with ZIMRA. We have the power certainly to simplify things. I would want to invite the Hon. Member to engage us so that we understand the challenges that she is mentioning.
HON. SANSOLE: Supplementary. The Minister’s response makes
no mention of interest offered by financial institutions. Is it possible that the Minister, through the Central Bank, can get the financial institutions to pay out interest rates that are higher than they are currently doing at the moment in relation to bank charges because the question is about deposits and keeping deposits in the banks longer. At the moment, there is no incentive to keep money in the bank for long periods because it does not earn interest. In fact, the longer you keep it, the more you lose in terms of bank charges. It would be more of an incentive to get the banks to pay out interest rates on deposits which far exceed the interest charged for loans and maintaining bank accounts.
HON. CHINAMASA: I thank the Hon. Member for his question. He is raising an issue which we are also grappling with in relationship with our discussion with the commercial banks. We have been asking them the same questions why they are not paying interest on deposits. Their response and I think it has some merit. They say 90% of bank deposits are what they call demand deposits. A demand deposit means a depositor can come any day to withdraw it. It is no good to the bank. The bank prefers to have medium to long term deposits which they lock in order to lend to borrowers.
The bank’s role is to lend money but they do not lend their money, they lend the depositors’ money. If the depositor puts in money today and says I may come tomorrow to withdraw it, that money is useless to the bank. So, they argue that they cannot pay interest on demand deposits. I have come up in my two previous Budgets to give incentives and to try to get a resuscitation of those who are of my age of what they used to call paid-up-permanent shares which were with the Building Societies. You would go and invest your money for 6 months, 1 year, 2 years and 3 three years and they will pay you interest because they can use that money for mortgage lending and lending to the commercial sector. The discussion we have basically with the commercial banks is that they should pay interests on deposits but their answer is already what I have given you. A lot of those banks have instruments where you can put your money for three months, four months, six months and one year. If you do, you will get interest.
The other discussion we also have with commercial banks is that they should cap their interest charges and bank charges. That I think the Central Bank has in a way succeeded through consensus to reduce to whatever levels they used to be; 20%, 25%, 30% to 15%. The interest rates now in the market are ranging from 6% to 15% depending on the customer. If you come across cases where the interest rates are above 15%, let us know so that we can pursue it with the bank charging such exorbitant interest rates.
HON. GONESE: I want to thank the Minister for his response but my concern is from the first response to the question. The Minister was not clear on what measures, he simply made reference to measures which they are putting in place to try to encourage the informal sector to bank money. In the same vein, we have the challenge, and this is a follow up to the response to the second supplementary question – I am in agreement with the Minister, l am also not of the same age with the Minister but I also recall having these paid-up-permanent shares. In addition, in the past, you had a situation where savings accounts even on demand deposits would attract small rates of interests. It was only current accounts where you would use your cheque book which did not
attract interest.
I remember Barclays Bank even had what they used to call a barsave account where you would have a limited number of cheques you could write and from that same account, you could actually get interest.
My question to the Minister is, why as the person responsible for the financial policy in conjunction with the Reserve Bank which is responsible for monetary policy, why cannot they put their heads together to get to a situation where there is some encouragement because there is some incentives for people to put their money in the bank, instead of a situation where when you put your money in the bank it slowly but surely disappears as a result of which you do not have any inclination to put the money in an institution where at the end of the day your money will be disappearing?
HON. CHINAMASA: I thank Hon. Gonese for the supplementary questions. I must say I agree with you almost all the way. With respect to the informal sector banking, you cannot force people to save. You cannot force people to open bank accounts. What we have been doing in that direction is that where we are paying ourselves, maize, wheat, gold and where we have influence on the tobacco floors, we are insisting that you must open a bank account. The discussion we have with the banks is that, even when they argue that these funds are demand deposits, the truth of the matter is that they have got a rule which says, you must keep some money in the bank.
The totality of those little monies in various accounts adds up to a lot of what you would consider permanent money. So, they should pay some interest basically in recognition of the fact that they have got those monies which remain in their bank accounts. We need to have a market friendly approach. I have not been in the mood at all to force things on the economic players. I would rather we negotiate, argue and we agree. Once you become arbitrary, that model does not work. That is one of the explanations that some of the monies that they are getting to on lend especially external money; they get it at higher interest rates. I have cases where it has been demonstrated to me that some of the money, they get it at 8 to 10% and they have to put their own mark up when they on lend. So, that obviously affects the overall interest rate. So, those are issues which we are grappling through engagement with the multilateral institutions so that we can be in a position to reduce our country risk premium so that we can access the capital markets directly and be able to access these funds at reasonable interest rates.
I still want to come back to the paid up permanent shares – that is the route to go and I have given incentives to encourage depositors who deposit in these instruments that the income that they derive from such investments is exempt from tax and I can to consider any other additional incentives put on the table so that we encourage savings by our people.
The issue that you raise again is correct that the banks again on the Current Account that in the past, only the Current Account would not attract interest and only the Current Account. In fact, would attract bank charges. That is no longer so. I do not think that there is still anything called a Current Account because everything now has been almost sort of standardised and is like the same account and so on. But, it is an issue that we will continue to look at. Overally Madam Speaker, I want to say, we have to encourage savings. It is savings that we can build this economy on. Currently, we are a consumption society. We eat what we make every day and there is nothing that we save for the future. As a result, the international best practice is that, a country should have at least 25% savings but we are wallowing around 23%. That is as bad as we are as a country. We are basically a consumption society and that is not a good basis for economic development. I thank you Madam Speaker.
HON. MARIDADI: Madam Speaker, I think that the banking sector is not reciprocating to the measures that the Hon. Minister is trying to put in place because the Hon. Minister comes up with very good measures, he gives incentives to depositors but the banks are not reciprocating. Hon. Minister, paid up permanent shares are no longer attractive because I for one lost a lot of money through paid up permanent shares which were at Founders. I deposited money for my daughter when she was one month old and when she turned 16, I went to Founders and the money had been wiped out. So, it is not attractive at
all.
Also, banks are not being entirely honesty Hon. Minister when they say, demand depositors are not useful. The reason banks would put a table outside on the pavement and approach anybody who walks across trying to open a bank account – it means that that depositor is very useful. When money sleeps in a bank overnight, the bank will use that money to close their positions with their treasury department. So, say all Hon. Members of Parliament receive their salaries and it is put in a bank account and they withdraw all of it the following morning, overnight that money is used to close bank positions – money that they have borrowed at a premium or that they have borrowed that they are lending out. The question here Hon. Minister is that, also banks are not being entirely honesty. Where they get money for on lending especially offshore funds, there is hardly any money that banks get that has an interest of more than 5%, but when they lend that money in this country to their depositors, they lend at a interest of about 18%. There is not a business and it does not really matter where it is – whether it is in the United States or in Zimbabwe that can survive when you borrow money and you want to pay back at an interest rate of 18% unless you are
selling corpses. Unless you are going to the graveyard and you are digging up corpses and you are selling them because you are getting them for free. Interest rates at more than 15% does nothing but kills business. Business in Zimbabwe Madam Speaker..
THE TEMPORARY SPEAKER: Conclude your question Hon.
Maridadi.
HON. MARIDADI: It is a suggestion to the Minister that banks are not being entirely honesty to you Hon. Minister. The measures that you are putting in place – banks are not reciprocating. Please, ask banks to reciprocate and this nation will move forward. Thank you.
THE TEMPORARY SPEAKER: Thank you for being honesty
that it was not a question but you were just giving your side of the story.
Which is not allowed during Question Time.
PROGRESS ON THE REHABILITATION OF THE ROAD TO
CAPOTA SCHOOL FOR THE BLIND
22 HON. CHIGUDU asked the Minister of Transport and
Infrastructural Development to inform the House on the progress that has been made regarding the rehabilitation of the road to Capota School for the blind considering that the road is winding and difficult to manoeuvre making it virtually impossible for use by the visually impaired persons.
THE MINISTER OF TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT (HON. DR. GUMBO):
Madam Speaker, Capota Road construction project was suspended in 2005 during the hyper-inflation period. A total of 8 km was completed up to tarmac level and 5.5 km was left at various stages of construction.
Currently the road is characterised by severe corrugations and the motoring public is not opting to use the winding earth track which runs along the permanent road. Efforts are being made by the Department of Roads to carry out maintenance grading at least two times every year in order to improve the riding quality of service on the road.
The project has also been allocated some funds in the 2017 Annual
Budget which is adequate to complete the remaining 5.5 km. Madam Speaker, I want to inform the House that the Hon. Member, who has asked the question, knows very well that we have even given her the figures in Masvingo when we visited Masvingo Province. So, she is quite aware of what is happening on that road and the amount of money that we have promised to give her for the construction of that road; herself and the Hon. Member of Parliament, the Deputy Minister Mharapira. I want to thank.
WRITTEN SUBMISSIONS TO QUESTIONS WITH NOTICE
DISTRIBUTION OF FOOD TO THE VULNERABLE GROUPS IN
GLEN-NORAH CONSTITUENCY
21 HON. MAONDERA asked the Minister of Public Service, Labour and Social Welfare when the Ministry would distribute food to the vulnerable groups in Glen-Norah Constituency.
THE DEPUTY MINISTER OF PUBLIC SERVICE, LABOUR
AND SOCIAL WELFARE (HON. ENG. MATANGAIDZE): Allow me Hon. Members to inform the august House that the food distribution under the peri-urban programme targeting vulnerable households commenced in Glen-Norah on 10 august 2016. This programme is coordinated through the Provincial Drought Relief Committee chaired by the Provincial Administrator. Since commencement of the programme, the Glen-Norah beneficiaries have received food assistance on a monthly basis. The last distribution was on Wednesday, 1 February, 2017 where 446 households received 22.3 mt of maize grain at the ward distribution point situated at Glen-Norah B Community Hall.
The Hon. Member is advised to work hand in hand with the provincial structures in order to ensure that the needy are accessing food assistance. The House is also informed that the programme will be extended to other vulnerable groups once the results of the ZimVac Urban Livelihoods assessments are approved by the Cabinet. I thank you.
MONEY COLLECTED BY ZINARA IN 2016
- HON. G. SITHOLE asked the Minister of Transport and Infrastructural Development to inform he House how much ZINARA collected during the year 2016, province by province and to state how much was disbursed to local authorities.
THE MINISTER OF TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT (HON. DR. J.M.
GUMBO): Mr. Speaker Sir, for the twelve months ended 31 December, 2016, ZINARA collected total revenue amounting to $173 552 491.
From this total, is then deducted commitments related to the Plumtree to Mutare highway, grader maintenance, toll gate construction, outstanding obligations especially on the Airport Road and administration costs. The total amount disbursed to road authorities in 2016 is $41 031 2020. I have tabled a document detailing the breakdown of disbursements to individual local authorities in the different provinces.
REPAIR WORK OF THE JOTSHOLO-MZOLA-DANDANDA
ELECTRICITY SUB-STATION
- HON. M. KHUMALO asked the Minister of Energy and Power Development to:
- inform the House whether Jotsholo-Mzola-Dandanda electricity substation would be repaired to enable the electrification of more than 400 schools and surrounding business centres;
- to inform the House when Chief Gumede’s homestead would be electrified considering that the electricity line was installed five years ago.
THE MINISTER OF ENERGY AND POWER
DEVELOPMENT (HON. DR. UNDENGE): Madam Speaker, with
regards to when Chief Gumede’s homestead will be electrified, I would like to point out that the Chief’s homestead is not yet ready for connection. The houses have no internal wiring that is required in order for power to be connected. It should be noted that it is the responsibility of the chief to carry out wiring of the houses before ZETDC installs the meter and connects electricity.
MOTION
BUSINESS OF THE HOUSE
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Madam Speaker, may I
move that Orders of the Day, Numbers 1 and 2 be stood over until Order of the Day, No. 3 has been disposed of.
Motion put and agreed to.
MOTION
RESTORATION OF THE MOTION ON THE CRITERIA FOR
CONFERMENT OF HEROES’ STATUS ON DESERVING
ZIMBABWEANS ON THE ORDER PAPER
HON. MISIHAIRABWI-MUSHONGA: Thank you Madam
Speaker. Thank you Leader of the House. I move that the motion on the criteria for the conferment of heroes’ status on deserving Zimbabweans which was superseded by the end of the First Session of the Eighth Parliament, be restored on the Order Paper in terms of Standing Order No. 73. I thank you Madam Speaker.
HON. GONESE: I second.
Motion put and agreed to.
On the motion of THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA), the House
adjourned at Twenty One Minutes to Six o’clock p.m.
PARLIAMENT OF ZIMBABWE
Tuesday, 7th February, 2017
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. SPEAKER in the Chair)
ANNOUNCEMENT BY THE HON. SPEAKER
INVITATION TO A NETWORKING DINNER FOR COTTON
GROWERS
THE HON. SPEAKER: I wish to inform the House that
Members of Parliament from cotton growing areas are invited by the Cotton Company of Zimbabwe to a networking dinner on Wednesday 15th February, 2017, at 1800 hours at the Rainbow Towers Hotel. Members interested in attending the dinner should confirm attendance with Mr. M. Godzongere, from the Public Relations Department, Office 516, Fifth Floor, South Wing at Pax House, not later than end of the day on Thursday 10th February, 2017.
MOTION
BUSINESS OF THE HOUSE
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I crave the indulgence of
the House to move that Order Number 1 of the day be stood over until Order Numbers 38, 2 and 3 have been disposed of in that order.
MOTION
THIRD REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON
THE FINDINGS BY THE AUDITOR GENERAL ON THE 2014
APPROPRIATION ACCOUNTS FOR THE MINISTRY OF FINANCE
AND ECONOMIC DEVELOPMENT
Thirty-eighth Order read: Adjourned debate on motion the Third
Report of the Public Accounts Committee on the findings by the Auditor General on the 2014 Appropriation Accounts for the Ministry of Finance and Economic Development and other Statements under its purview.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker, you have
raised directly with me and other line Ministries your concerns that we are not responding to reports submitted in this House by different Portfolio Committees. I want to assure you that during the first quarter of this year, I should have complied with all the reports that I have to respond to, raised concerning my Ministry. Administratively, we have been able to put our act together and we think that we can comply with that request.
I am standing to respond to the report by the Public Accounts Committee which was raised concerning my Ministry. I have done my response in a tabular form showing the concerns and recommendations of the Committee and the response I gave to that recommendation. The first concern raised is that:
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Issue of concern to the Committee’ concern |
Committee Recommendation |
Response |
1 |
The Public Finance Management System (PFMS) Audit Module not enabled |
Treasury should purchase the additional servers to allow the activation of the Audit Module within the system by |
The Treasury has purchased additional servers and the equipment was received on 28th January, 2017. The processing |
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in the new version of the SAP system (EHP7) |
30th September, 2016. |
capacity will be enhanced as soon as the new servers are functional. Government will have a parallel processing capacity installed in Bulawayo, which will ensure that we will have an effective Disaster Recovery Plan. Should the Harare servers fail, we will be able to switch immediately to the Bulawayo based server. As soon as the new servers are installed, i.e. by mid-February, 2017, the Audit Module will be enabled on the system |
2 |
Upload of expenditure by Ministry of Foreign Affairs in the SAP System after the 13th period of one month after the end of a financial year. |
Enforce the cut-off period in line with best practices. In this regard, the Ministry of Foreign Affairs should observe the 13th period cutoff deadline and close its books of accounts for the current year by 31st January, 2017. |
The Accountant General and the Director of Finance in the Ministry of Foreign Affairs are working on this and they are confident that this issue will have been resolved by 31st December, 2017. Once that has been done, the Accountant General expects to produce a Treasury Minute that will be submitted to the House. |
3 |
Failure by the PFMS System to display asset register for the Ministries of Finance and Economic Development, Information Communication Technology, Postal and Courier Services and Foreign Affairs. |
1. Training on maintenance of asset registers across Ministries by 30 September, 2016. 2. Accounting Officers should closely monitor this area and ensure asset registers are checked for completeness and accuracy by 31st January every year. |
The installation of new servers and the related increased processing capacity will allow for a complete set of Asset Registers to be installed and maintained in the 2017 Financial year. The system has been designed so as to ensure that there is: a. A composite Government Assets Register maintained by the Treasury and b. Individual Assets Registers maintained by each Ministry c. In addition once the system is fully functional, the Accountant General’s team will provide training support to all line |
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Ministries. The training will cover a. Assets requisition and procurement b. Upload of existing assets c. Depreciation policies and processes d. An understanding of the circumstances that should lead to Board of Survey Procedures. |
4. |
Variance observed between the 2013 returns submitted by line Ministries and those by Treasury as well as balances in the SAP system |
Training should be undertaken by the first half of 2016 to avoid recurrences in the next round of audits. |
Treasury has provided training on the production of annual returns and the incidence of inaccurate returns produced by the Ministry has declined. This training, however, remains an ongoing exercise as new problems are identified and new officers are recruited to the relevant grades. The training will therefore be ongoing but there has been noticeable improvement in the quality of returns produced for the 2015 financial year. |
5. |
Direct payments to service providers |
Treasury must formulate procedures for handling direct payments to facilitate proper and systematic capturing of such transactions and curb recurrences of the audit observation in future. This should be done by 30th September, 2016. |
Formal instructions have now been issued under Treasury Circular Number 3 of 2016 covering the issue of direct payments. The Circular was issued on 15th April, 2016. |
6. |
Misappropriation of funds |
i. Treasury to come up with a risk management framework by 30th September, 2016, which will allow close monitoring of high risk areas |
Treasury managed to carry out training of staff in the identification, assessment and prioritization of risks. Treasury is now in the process of engaging a |
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and curb losses through fraudulent activities.
ii. Given the central role played by the Accountant General’s office, the Civil Service Commission should by 30th September, 2016, fill in the critical vacancies occasioned by this incident. The staff is critical in ensuring that audit recommendations across line Ministries, parastatals and local authorities are acted upon. |
consultant to help in coming up with a draft risk management framework. The consultant will be engaged by the end of April, 2017 as funding has been secured for that purpose.
Ten additional positions in the Accountant General’s office were exempted from the Public Service freeze during the fourth quarter of 2016. Interviews have been carried out and the 10 officers are expected to be in post on 1st February, 2017. The positions are expected to be filled by 1st March, 2017.
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7. |
Failure to review Treasury Instructions after the introduction of the multi-currency system. |
New regulations should be operational by 30th June, 2016 as the Ministry indicated. |
A draft set of Public Finance Management Regulations and Treasury Instructions will be submitted to the Auditor General in February, 2017. Both documents could not be finalised by 30th June, 2016 for different reasons. On Treasury instructions, when the Accountant General reviewed the draft, he established that there was a gap in the provisions, with respect to guidance on dealing with epayments. As we moved as a country towards payments, it became clear that we needed to develop a new set of rules and controls. On the Public Finance Management Regulations, the World Bank kindly offered the |
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Government of Zimbabwe technical support in the form of a senior Finance Advisor. Unfortunately, the advisor was only available in November, 2016. |
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8. |
Failure to revalue Government assets from the Zimbabwean dollar to the United States dollar. |
Treasury should by 30th September, 2016, provide guidance to fund managers to enable them to revalue noncurrent assets that were in Zimbabwe dollar currency. |
While the Committee recommends that these assets be revalued, I have taken a different approach. As an accurate record of each asset is available and these assets have been in operation for eight or more years, I have retained these assets in the assets registers at a nominal value of one dollar. As these assets are disposed of, a Board of Survey is established. Included among the responsibilities of Boards of Survey is the determination of current market value and the most appropriate disposal method. I have taken this view given the high cost of asset valuation. In some instances, assets valuation costs would exceed the respective asset value. |
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9. |
Non-disclosure of and incomplete accounting records for Public Financial Assets |
The PFMS should be configured to capture all payments made for equity and lending by 30th September, 2016. The PFMS should be configured by 30th September, 2016, to capture take-on balances, loans, investments, recoveries and adjustments to ensure proper accountability of public financial assets. |
The PFMS has been configured to take-on all Public Financial Assets records and I am confident that the 2016 audit will confirm this position. A new consolidated Public Financial Assets Register is now available and is maintained up to date. All equity and lending payments are now made through the system as recommended by the Committee. We are working on ensuring that, for 2017, all reconciliations will be effected on a monthly basis. |
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11 |
Opening take on balances which did not agree with closing balances. |
1. All payments for equity and lending must, with immediate effect, be made through the system and line Ministries should be advised of payments done through |
A public finance assets register has been established and will be maintained up to date. Payments made on behalf of any Ministry are |
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IDBZ to enable them to record such loans.
2. Ministry of Finance and Economic Development should speed up the process of compiling a new consolidated register for public financial assets and ensure that its available by the end of 2016 and going forward, ensure that reconciliations by line Ministries are timeously carried out. |
communicated to the line Ministries so that the line Ministries records are accurate. |
12 |
Variances between the balances reflected on the returns from line Ministries and those from Treasury rendering Statement on Public Financial Assets unreliable. |
Ministry of Finance should instruct line Ministries to ensure that all State enterprises provide up to date returns to their parent Ministries by 31st January, 2017. |
Considerable work has gone into ensuring that State enterprises bring their accounting records up to date. Unfortunately, some State enterprises are still lagging behind and have failed to produce timely returns as well as audited financial statements. At this moment, some State enterprises are still playing catch up in bringing their records up to date. Attached is a list of SEPs which have submitted the 2015 audited financial statements. |
13 |
Revenue Collection and Debt Recovery: Farmers’ World debt worth $11 833 433. |
Government must institute measures to recover the debt from either Farmers’ World or from beneficiaries of farm machinery and implements. Treasury should by 30 September, 2016, explain fully to the Committee why Farmers’ World was advanced the latter loan reported in 2014 when it was failing to pay back the initial loan and also report on progress made towards recovery of the debt. |
I agree with the Committee’s recommendation that “public resources cannot be used to meet obligations of a private nature”. Considerable effort has gone into tracing the debtor, Farmers’World and I am advised that the debtor has not only been located but that it has been established that Farmers’ World is recovering money from those to whom they provided equipment. Treasury has written to the Ministry of Agriculture., |
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Mechanisation and Irrigation Development in order to institute debt recovery arrangements. This remains work in progress but is something that I keep in view.
Farmers’ World has two separate loans as follows:- • A loan that was granted by the Treasury under the National Development Fund; and • A loan that the Treasury inherited from the Reserve Bank. When it became clear that we would not be able to access additional Chinese funding, we paid off this loan and thus Farmers’ World became our debtor. |
14 |
Variances in National Development Fund 2013 Accounts receivable figures. |
The Ministry, by 30 September, 2016, should put in place measures to avoid the co-mingling of the NDF and PSIP funds. |
Treasury has put in place measures to ensure that there will be no co-mingling of NDF and PSIP funds. |
15 |
Non-recovery of outstanding project loans disbursed through IBDZ. |
1. Treasury should by 30 September, 2016 provide an explanation to the Committee why it was maintaining IDBZ given its perennial financial woes.
2. Government should with immediate effect, stop lending funds to non-performing entities. |
Government has no intention of dissolving IDBZ and has in fact recapitalised the Bank. The bank’s financial performance is expected to improve significantly in 2017 and should be in a position to report a profit in 2017. The House needs to know that we hired a former Deputy President of the African Development Bank to head this bank and there are discernable improvements in the manner and in the way that it is now performing.
The recommendations have been noted and Government will in future carry out due |
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3. Government should with immediate effect institute recoveries from entities such as ZINARA since it was collecting a lot of revenue.
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diligence on the institutions to be supported. However, some of these entities are Government linked and strategic in nature. Under the Public Sector Reform Initiative, we are working on improving the performance of State enterprises, parastatals and local authorities. Among the improvements, is a draft Governance Bill that will be presented to this House soon.
Recommendation noted, Government will schedule meetings with the institutions that have prospects of repaying the funds and request for payment plans with a view to clear the outstanding support extended. |
16 |
Non provision of information on the Zimbabwe Economic Trade Revival Facility (ZETREF) |
Minister of Finance should provide a full report on the status of the facility to the Committee by 30 September, 2016. |
When the Zimbabwe Economic Trade Revival Facility was established by Government, the proper documentation procedures may not have been followed. My officers have engaged the relevant bank to try and obtain the original agreement with limited success. We look to resolve this issue by March 31, 2017. |
17 |
Outstanding Farmers’ World debt |
Government should with immediate effect, institute recoveries of the debt from either Farmers’ World or the agricultural machinery |
See 13 above |
18. |
The Committee with concern that the Fund like other funds in line Ministries, had been prone to abuse, hence there was need for better control and supervision |
Going forward, all those found to violate Fund resources should be penalized in terms of Section 91 of the Public Finance Management Act. |
As indicated in my Budget speech, Fund Accounts shall only be used for the purposes specified in the Blue Book and there shall be no variations without Treasury Authority. Failure to comply |
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by accounting officers. |
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will be dealt with in terms of Section 91 of the Public Finance Management Act. |
19. |
Inadequate security for housing loans disbursed to senior officers. |
Ministry of Finance should examine the functions of the Fund from a governance point of view in that the Committee noted that it was inappropriate for the fund to be administered by potential beneficiaries. The Ministry should provide an explanation by 30 September, 2016. |
The Committee’s comments have been noted and a set of Accounting Officers’ Instructions have been issued that direct the Fund Manager to adhere to proper Governance Procedures including ensuring that: - All loans are supported by adequate security; - No single officer shall be issued more than one loan; and - All loans will be issued with on the prescribed limits. |
20. |
SERA failure to renew contract of employment |
The Ministry should fully justify the continued existence of SERA by 30 September, 2016. |
I note that the Committee questions the relevance of SERA. For the record, SERA has been supportive of the reform process as a technical advisor and cannot, in all fairness be blamed for lack of progress in the implementation of Government decisions. You may be aware that we are working on a Governance Bill that will soon be submitted to the House for consideration. In addition to work carried out by SERA in the crafting of the Bill, I am satisfied that their inputs on Turnaround Strategies and Developing Performance Measure have been invaluable to Government. |
In conclusion, I want to thank the work that the Public Accounts Committee has put into this matter. I think that it is very clear; they raised very pertinent issues and I think that I have done my best to respond to each of those pertinent issues. As I pointed out earlier, I think that I will be in a position to fulfill all the requests for replies and responses by end of March this year.
HON. MPARIWA: Thank you Hon. Speaker. Through you Mr.
Speaker Sir, let me begin by thanking the Hon. Minister of Finance and Economic Development, Hon. Chinamasa for the response. Indeed, I am humbled that at least some movements are being done as reflected in the response by the Minister. I hope and trust that as we do our oversight role, we will be able to be getting responses from the Executive because it is our responsibility to carry out oversight over the actions of the Executive. Hon. Speaker, may I also appeal that the
Ministers that are not here who also have received reports from the
Public Accounts Committee, do the same like the Hon. Minister who is responsible for national purse of the country has done. He allocates resources to the various departments of Government and really I want to thank him. Indeed, this actually promotes parliamentary democracy and good governance and team work will never fail.
Let me end by a quote from the Bible Hon. Speaker…
HON. CHAMISA: On a point of order Hon. Speaker. This is a very important development in the processes of Parliament and I was going to seek your indulgence. You may know that in terms of the rules, once the Chairperson of the Committee articulates the response that closes the avenue for other members just to add views. So, I was going to seek that through your indulgence Hon. Speaker, if you may allow Members who may want to just sink their teeth in this very important response from the Minister; then we have the Chairperson to conclude, that will help us. If that is okay with you, we would really appreciate. I for one do not want to debate, but I just feel that there are others who may want to just respond to this one, because there is nothing that stops us from appreciating…
Hon. Chamisa was asked to approach the Chair.
HON. CHAMISA: I have since heard what you have said Hon.
Speaker; you make a lot of sense that we delayed a bit.
THE HON. SPEAKER: What I have said makes some sense. I
make a lot of sense. There is a big difference.
HON. CHAMISA: Thank you Hon. Speaker. In fact I was
hesitant to give you all the due credit.
THE HON. SPEAKER: No, no.
HON. CHAMISA: Thank you. What you said makes sense and we oblige Hon. Speaker. I hear you and I think I will not persist. – [AN
HON. MEMBER: Inaudible interjections.] -
HON. ZINDI: On a point of order Hon. Speaker. We are not privy to what Hon. Chamisa is referring as what you have said makes a lot of sense and you also responded Hon. Speaker – I have made a lot of sense – [Laughter.] – What is it that I have made a lot of sense out of that, we want to know.
THE HON. SPEAKER: Order, order. Hon. Zindi, I hear you. I think Hon. Chamisa was going to explain the sense. Allow him to wind up.
HON. CHAMISA: Thank you Hon. Speaker. Let me share with the House the sense that we got from our esteemed Hon. Speaker. As you know, we had requested that we would have Hon. Members also making commendation and appreciating the good work by the Minister of Finance because it is not often that we have Ministers making their diligent effort to come to Parliament to appreciate the role of
Parliamentarians and Portfolio Committees – [HON. MEMBERS: Hear, hear.] – so we wanted to appreciate that. However, the Speaker indicated that the problem is that we were a bit late in responding before the Chairperson of the Portfolio Committee took the stand. The problem now is that if we were to have Hon. Members of Parliament debating, the Hon. Minister will not be able to respond to our input unless if we have made prior arrangements. I think it does make good sense. That is what was explained. On that score, we ask our Chairperson to make the necessary submissions.
HON. MPARIWA: Thank you Hon. Speaker. Let me just appeal to the other Ministers who have not responded to Committee reports and recommendations to do the same like what the Hon. Minister of Finance and Economic Development has done. I think that will also address the concern from my colleague Hon. Zindi. It is very relevant and pertinent that Ministers should come and respond to questions and reports recommendations.
Finally, let me end by quoting the Bible Hon. Speaker, which is
James 2:17, “Faith without action is dead.” Hon. Speaker, I mean that the Hon. Minister has made a lot of commitments in other areas in terms of responses, but without implementation, we will remain with the same problems as observed in the report of the Auditor- General.
With these remarks Hon. Speaker, I move that the report be adopted.
Motion that the Third Report of the Public Accounts Committee on the findings by the Auditor General on the 2014 Appropriation Accounts for the Ministry of Finance and Economic Development and other Statements under its purview, put and agreed to.
SECOND READING
PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS
BILL [H.B. 5, 2016]
Second Order read: Adjourned debate on motion on the Second Reading of the Public Procurement and Disposal of Public Assets Bill, (H.B.5, 2016).
HON. CHAPFIKA: Thank you Mr. Speaker Sir. I rise to present the report of the Portfolio on Finance and Economic Development on Public Procurement and Disposal of Public Assets Bill.
1.1 Introduction
The Public Procurement and Disposal of Public Assets Bill, (H. B.
5, 2016) was gazetted on 17 November 2016. This Bill repeals the Procurement Act [Chapter 22: 14]. The Bill is a welcome development given the challenges the country continuously face with the existing Act under which the State Procurement Board conducted procurement on behalf of government entities. Some of the challenges relate to delayed procurement of goods and services owing to the centralised nature of procurement, the alleged corruption which could have had a huge cost effect to the economy and consequently loss of faith in the process by both procuring entities and suppliers of goods and services.
1.1 The Committee believes that the Bill when implemented to the letter and spirit of its objectives, fairness, transparency and honesty will be achieved. The proposed changes are in line with global trends where equivalents of the State Procurement Board have been transformed into regulatory bodies while the procurement function has been decentralised to procuring entities.
1.2 The Committee commends the Office of the President and Cabinet for the extensive consultations conducted on the Bill with relevant stakeholders. Six Committees from the National Assembly and one from the Senate were consulted on two occasions in February and October 2016. These consultations afforded Parliamentarians an opportunity to input into the draft Bill before its gazetting. The Committee on Finance and Economic Development is, therefore, generally in support of the Bill save for few issues that require fine tuning before approval by Parliament.
1.3 The Committee in compliance with Section 141 of the Constitution relating to consultations with the public on Bills being considered by Parliament conducted public hearings from 29 November to 3rd
December 2016, in Gweru, Bulawayo, Gwanda, Lupane, Masvingo, Mutare, Marondera, Harare, Chinhoyi and Bindura. The majority of the people who were consulted and those who sent their inputs via email welcomed the Bill and suggested a few improvements which will be highlighted below.
2.0 Submissions Received from the Public
2.1 Application of the Act
2.1.1Members of the public commended the Bill for containing provisions that promote transparency and fairness. Whilst acknowledging that some procurement by Security departments needed to be kept secret, they recommended that strong mechanisms for oversight be put in place to ensure that nontransparent procurement is not open to abuse.
2.2 Statutory Tariffs
2.2.1Stakeholders raised concerns on Section 3 (4) relating to the application of the Act in relation to the provision of professional services and Part VIII relating to the procurement of consultancy services. They argued that the quality and cost based selection method would be detrimental to project delivery and proposed that the current method of gazetted scale of fees which is based on the value of works and is on a sliding scale be retained. They submitted that the quality and cost based selection method needs highly skilled clients and that the influence of price could be detrimental to quality of the service.
2.3Objectives of the Bill
- 1Members of the public welcomed the Bill and indicated that the proposal should be approved as it will address the challenges that were being faced associated with current procurement processes particularly, the perceived corrupt activities. The Bill was hailed as a piece of legislation that was comparable to world best practice especially with the procurement law in Tanzania.
2.4 Establishment of the Procurement Regulatory Authority of
Zimbabwe
2.4.1The proposed abolition of the State Procurement Board and the decentralisation of the procurement function to ministries, parastatals and local authorities under the supervision of the Procurement Regulatory Authority of Zimbabwe was well received by stakeholders. Members of the public noted that by decentralising procurement, procurement processes were likely to be conducted much faster than before. However, Government was called upon to ensure that the proposed Procurement Regulatory Authority has sufficient powers, independence and financial and human resources to effectively perform its role.
2.5Board of Authority
2.5.1Some members of the public proposed that the Board should consist of either eleven or thirteen Members as opposed to seven of
nine in the Bill. The rationale was for each of the country’s provinces to be represented thus ensuring consistency with section 18 of the Constitution relating to the principle of fair regional representation. They also proposed a reasonable percentage in terms of youth representation on the Board.
2.6Procurement Preparation
2.6.1Members of the public submitted that the requirement in Section 20 that procuring entities have adequate funds for the proposed works is laudable as it will ensure the sustainability of the construction industry in Zimbabwe. It was submitted that most of the consultants and contractors were being crippled by doing work for clients that do not pay for work done.
2.7Domestic Preference
2.7.1Some stakeholders welcomed the provisions of Section 29 which allow for a preference to Zimbabwean local suppliers and manufacturers in accordance with the Indigenisation and Economic Empowerment Act. They, however, argued that the provision was discriminatory against Zimbabweans who do not fall under the
definition of Indigenous and is open to constitutional challenge. They proposed an amendment that would reflect domestic preference to Zimbabwe citizens instead, as is the case with the
Tanzanian Public Procurement Act.
3.0 Committee’s Observations and Recommendations
3.1 To ensure regional representation on the Board, the Committee recommends that the number of Board Members be revised to eleven in order to cater for a representative from each province and the eleventh Member being the Chairperson of the Board.
3.2 Treasury should ensure that the Authority is adequately resourced to enable it to execute its mandate effectively.
4.0Conclusion
4.1 The Committee was pleased with the Bill and recommends it to the
House for adoption with those few recommendations.
HON. CROSS: Thank you Mr. Speaker Sir. I want to endorse the views of the Committee and just emphasise one or two points which the Committee raised for the benefit of the Minister. The first is the question of the provision of services of a professional nature by engineers, architects and accountants when they are providing services to clients. At the moment, the Bill provides for these to be tendered in the same way as other goods and services. Your Committee had representation from the professions saying that they do not think that this was a good idea. The present practice of each individual professional association publishing their fees and then seeking to win jobs on the basis of the quality of the services they can provide is in fact a better solution and the Committee strongly agreed with this recommendation. So, we would like to see that particular element attended to…
THE HON. SPEAKER: Hon. Matambanadzo and the other two
there, please listen. Thank you.
HON. CROSS: The second thing I want to emphasis for the
Minister’s consideration is the issue of the number of board members and the need to have representation from each province in the country. When the board sits to consider its oversight function of procurement activities within provinces, local knowledge and information is going to be critical. I believe that by having one representative from each province on the board will enable those members to in fact represent their provinces and report back to the board the information they are receiving regarding procurement activity by local authorities and other state enterprises within their provinces. I think this is going to be critical to the efficient function of the oversight responsibilities of the board.
Thank you.
HON. NDUNA: Thank you Mr. Speaker for giving me the opportunity to add my voice – [HON. MEMBERS: Inaudible
interjections.]-
THE HON. SPEAKER: Order, order! The chorus for the diesel is over now – [Laughter.]-
HON. MARIDADI: On a point of order! When Hon. Mkupe
walked in, I heard the murmurs of diesel, fuel and water. Well, I do not know what that means but I would like to welcome him and wish him well for the reminder of the day – [Laughter.] - Thank you.
HON. NDUNA: Thank you Mr. Speaker for allowing me to add
my voice. I want to applaud the Minister for bringing this Bill of Public Procurement and Disposal of Public Assets. Mr. Speaker Sir, it actually gets me elated in that it brings a sense of independence and also a board that can oversee on a procurement or entity or Committee.
Now, therefore, Mr. Speaker, one would want to now look at and interrogate the credentials of the procurement Committee and compositions of all those that are disintegrated. For instance in councils, where I come from, where you would want a Committee to be composed of people who in themselves have no history of land misappropriation; who themselves have no history of disposing of houses for the citizenry in a manner that is not formal or that is not mainstream. In the same way that I would also call for representation to also come from all the provinces, up from nine members to what the Committee Chair alludes and accedes to of 11 members; I strongly feel that those credentials should be interrogated and the members found wanting and those that are a delinquent modus operandi and those that have a history that is checkered with misappropriating land and houses should not be involved in procurement Committees at council levels.
I also want to add my voice as has been alluded to by Hon. Cross in that we have Engineers Council Zimbabwe and Zimbabwe Institute of Engineers, which two bodies are established by an Act of Parliament, separately. They require about 5% of any infrastructure development monies so that they can have clear and good oversight in the operations of any infrastructure development in Zimbabwe. You will see that we have had the plant to Mutare highway, where our Zimbabwe Institute of Engineers and Engineers Council of Zimbabwe had little or no participation whatsoever because they were hamstrung in that they 5% that is supposed to accrue to them never got to them for them to effectively and efficiently carry their oversight and mandate. I call and I make a clarion call that this 5% starts accruing to them as enunciated in the Act that establishes them, so that they carry effectively their oversight role beginning with the Beitbridge-Chirundu highway, where I believe 5% of US$984 million on the Beitbridge-Harare highway would be about US$10 million. Then they can effectively carryout their oversight role, if they are capacitated in that manner. With those few words, I want to thank you for giving me this opportunity. I support this Bill in its entirety. I wish and hope that it has a good lifespan.
HON. MISIHAIRABWI-MUSHONGA: Thank you Mr.
Speaker. I stand to also add my voice to the report by the Committee. I think it raises fundamental issues around the issue of procurement.
Firstly, I would like to thank the Minister for bringing that whole aspect. Particularly, as we begin to look at our economy and considering the things that we can do in trying to save money. The area around procurement….
Hon. Ministers Made and Chinamasa making noise.
It will be nice Hon. Minister Made and Minister Chinamasa to listen a bit. Thank you. I am sorry, Mr. Speaker, it was not meant to be like that. My apologies before you reprimand me.
Mr. Speaker Sir, the area around procurement is one area in which leakages take place. Those people that have done analysis around issues of procurement will find that even as Government procures things like pens, you lose a lot of money if you calculate the number of pens that you buy for a Government Ministry, if you are not able to save 2 cents from it. This is where most of the corruption takes place and I am not sure how the Bill is going to address this.
One of the biggest problems that we have had with procurement in this country has to do with the issue around the State Procurement Board then, which was asking for vendor numbers. What it meant is that it did not matter that if you did an analysis in your Ministry and found that you could buy a ballpoint pen at 10 cents, if you do not have somebody who is going to supply you, who has a vendor number, you are forced to buy the same ballpoint pen at 15 cents.
Also, the issue of allocating vendor numbers had itself become an area of corruption because you needed to know somebody in this State
Procurement Board who would then provide you with a vendor number – [HON. MEMBERS: Hear, hear.] – Unfortunately, the vendor number means absolutely nothing. When you get a vendor number, no one has done due diligence to say we are giving Priscilla a vendor number for purposes of her providing sanitary wear, for example, my favourite subject.
You were basically given a vendor number for anything. So, the moment you have a vendor number, you have a vendor number of providing from vehicles to an aircraft down to a ballpoint pen. That in itself becomes an area that is problematic, particularly if we are beginning to live in an area where we are dealing with the latest methods around ICT. Most of the countries, to be able deal with issues of corruption, have now moved into what they call E-procurement.
What happens is you do not have to see the face of the individual. There is no negotiation. You flight a tender, somebody goes on and puts in the things that they are able to provide. So, the basis is made on the selection. You do not even need somebody who now sits and says what has come in. You set up a system that in itself automatically selects the particular person who is the best supplier. So, I view the issues about having board members to provide oversight but in terms of where we have moved in terms of technology, you actually do not need human beings, to be able to do that because they have noticed that in the area of procurement, the moment you put it in the hands of human beings, they can be subjective and are open to issues of corruption.
I am bringing this so that as we begin to debate the issues around procurement, we are discussing it in the context where the world has gone to. It is only here where you are told this road cannot be fixed because we are still waiting for the board to meet, so that they can discuss and they can then give a tender to someone. In other countries, it is a matter of 24 hours, it is put out there, people feed in and the system produces for you who the best person is.
I am however, not necessarily saying the issue that is being suggested about making sure that you have provincial representation is wrong. As you know Mr. Speaker, one of my favourite subject is the issue around devolution and the issues around representation. So, I agree but I do not want us to then address it in a manner where we are saying this particular individual who is representing the province will be able to deal with the issues that are to do with whether local people get preference. I am going to be bringing a motion in the next week or two. I have had problems trying to get information around it but to explain to you what this is all about; we have a major problem around issues of procurement. When people decide on whom to give a tender or to give a job, there is no local preference at all.
Let me give you one example, the Gwanda solar thing that happened was given to Wicknell Chivhayo. What was even worse around that particular tender is that he did not pay any particular deposit. There was nothing, he did not come with anything from the bank. So, any group in Gwanda could have gone to the Ministry of Energy and Power Development and said we want to be part of this solar programme because if it did not have to come up with specific funds, it did not matter who had money or not. However, my first problem is that when you are going to do something in a community, common sense says you want to find out whether the people in that community are able to provide that service or not. It makes absolutely no sense and I speak as somebody who represents the other side of the country. Most of the big tenders we have in this country, you are unable to find one tender which you can point at that has been given to someone from the Southern region. I do not understand whether that is because somebody is saying, all the people that are coming from Matabeleland are so daft that they are unable to get into the economic business of this country. There is something that is fundamentally wrong. It is so bad Mr. Speaker that you can even find local authorities in Matabeleland coming to give business to people who are in Harare. In most of those instances, they are cheated because no one knows where this person is coming from and they can lie that they have an office in here …
HON. MUPFUMI: On a point of order Mr. Speaker. She is trying to bring division between the people from Matabeleland and the Shona people. Let her discuss issues which are pertinent to what we are discussing.
HON. MISIHAIRABWI-MUSHONGA: I will just breathe and
decide that I do not engage in mediocrity, so I will leave it as it is.
THE HON. SPEAKER: Order, I have not ruled on the point of order. I want to draw the attention of the Hon. Member who talked about division between Shonas and Ndebeles. Your attention is drawn to Article 13 of the Constitution which is very clear. It says “bring about balanced development of different areas of Zimbabwe, in particular” –
[HON. MEMBERS: Hear, hear.]- “a proper balance in the development of rural and urban areas.” There is no mention of tribes here. In any case, you find Shonas in Matabeleland in as much as you find Ndebele speaking people in Matabeleland. So, there is no issue of division here.
It is a constitutional right.
HON. MISIHAIRABWI-MUSHONGA: Thank you Mr.
Speaker, I feel like jumping on top of the table but I will not do that. What I am coming back to, is that whole issue. First and foremost, I am glad that the report of the Committee did speak to the issues around domestic preference. So, I know I am buttressing the point that they raised. So, probably we may need within the Act, to create a proper and clear provision that there will be a particular preference. I am sure it would not be new to the way we do things. The whole basis of indigenous and gender preference is that you are acknowledging that you want to empower a particular group. So, if you say you will do a local preference to allow that if there are particular tenders that are in a particular area, you will call upon those that are in that community to do so. I am sure we can find a proviso that can clearly define that. Usually, if something is not put down clearly, people usually avoid doing these things because there is no legal framework for them to enforce implementation. So, I would be calling upon the Minister to look at how best that issue around local domestic preference can be dealt with, in particular around issues of tenders.
In the same light, I want to bring in the issue of gender preference. Again, in the same light, given the state of our economy right now, most of the resources and business that people are engaged are centred within Government and Government tenders. However, what we are finding is that you do not necessarily see women being given preference. I will give you an example of Kenya, which came up with a statutory instrument that gave gender preference to women. For every tender, 30% should be given to women. This has increased the level of economic empowerment for women in a manner that they tried to do in so many things. Let me give you an example; you want to create materials for hospital bed sheets in Bulawayo. What Mpilo is called upon to do is, if they are going to be buying bed sheets that cost $100,000, 30% of those bed sheets should be given to women coming from that particular community. The amount of resources that would come from Government and fall on women within those communities is amazing.
In conclusion Mr. Speaker, the one area I hope procurement will be able to look at is where people are making a lot of money, which is in the area of debt collection. You will notice that particularly with those that run legal firms. A person will be given the right to be the debt collector of a whole Ministry. I have one such person and I will bring it to the House when I bring my motion. This particular law firm covers the entire Zimbabwe. So, they got a tender to be the debt collector for the entire Ministry of Health. This particular lawyer does not have to do any work anymore. He does not have to go to court but can literally live on debt collection. They have a small office at Harare hospital, Parirenyatwa and Mpilo hospital. For every amount that they collect, they are given a particular percentage ranging between 5%-10%. All they are doing is simply to write letters to the debtors. What really upsets me – and this is true of ZESA which also has one particular lawyer who is doing that. I am still trying to find out what is happening with Wellcash in Harare because they are unable to give me the specific person whom they have given to do Harare City Council. However, what disappoints me Mr. Speaker is, why do you think that there are no lawyers in Bulawayo to do debt collection for Mpilo Hospital. Why do you have to get a lawyer who is coming from Harare to go and do debt collection at Mpilo? – [HON. MEMBERS: Hear, hear.] – Why do you think there are no lawyers in Masvingo who can be given the job to do debt collection for the hospitals in Masvingo? Why does that person have to be coming from Harare?
I think the whole issue around procurement Mr. Speaker, forces us to look at the whole issue around devolution; the whole issue of making sure that communities participate. We do not want to lie to each other. The issue around procurement is where money is made. Anything else can fall apart but Government will always need something. So, those that had found themselves in a Government space are the ones that are now making money. If you are not in that area which becomes a cabal controlled by a few, you will remain poor when everybody is paying tax. This is because procurement that we are doing is out of the tax that everyone of us are paying but benefits a small cabal who have buses in every other area. I thank you Mr. Speaker Sir.
HON. CHAKONA: Thank you very much Mr. Speaker. I also
want to add my voice to the subject matter of discussion. First of all, I want to highlight that the current status quo was very good at delaying projects. I would like to say that the process of just procurement would take no less than a year in State enterprises. Also, it was subject to legal challenges and so on. I hope and trust that the current Bill is going to address the issue of challenges around the person who would have been awarded the tender.
Mr. Speaker, there is need to also protect State enterprises that were incorporated for specific and special mandates. Let me give you an example. There is a company called ZESA Enterprises, which was incorporated by ZESA Holdings. That organisation was incorporated specifically to manufacture transformers, switch gears and other consumables that ZETDC uses. It is disturbing that whilst this organisation is there and manufacturing these components on behalf of these State enterprises, still the State Procurement Board would require ZESA and its sister companies to go to tender. Ninety five percent of the cases, they would actually buy from other private companies, suffocating ZESA Enterprises.
This is synonymous with even the ICT industry, where we have got PowerTel and Zarnet. These organisations were incorporated to offer specific and specialized services to Government and its State enterprises but that is not happening. Government and these other State enterprises are buying their services from non-State enterprises and I think this again is suffocating Government. We want to see money circulating within Government coffers.
Mr. Speaker, there are technological changes worldwide and I think the new Bill is going to look at issues to do with timelines by which procurement has to be done. I want to give you an example. NetOne went to tender in 2011 for the upgrade of their network. That tender was only concluded in 2014. In 2011, in the ICT or telecommunications industry, there was 3G. By 2014, technology had already evolved to LTE. What it means is, by the time the tender is concluded, the organisation is buying old equipment and technology and it does not make sense. So, there is need to have a timeline or a turnaround for buying, especially technology related equipment and services.
Mr. Speaker, there are issues to do with requirements for organisations that tender. There is this new requirement of tax clearance certificate and I am glad the Minister of Finance and Economic Development is here. Any organisation would obtain a tax clearance certificate, irrespective of the fact that it complies or it does not. There are very minimal requirements for an organisation to qualify for a tax clearance certificate. This tax clearance has become meaningless. All the organisations that are participating, especially in State procurement tenders do not pay any tax to the Government. If they do, they just pay minimum for them to comply with tax requirements. I think it is imperative that tax audits be done on these organisations that are actually getting large tenders because Government is losing money. It is being charged tax and that tax is not coming back to Government.
Mr. Speaker, I want to emphasise the issue of e-Government as my colleague has debated. We have become a nation that is technologically averse. We do not want to embrace technology. I do not know why we are not computerizing Government departments and procurement systems in this nation. I want to give you an example. The Department of Immigration right now has got a computerized visa system. However, if you go to the department, each time they receive a computerized application, they go on to open a manual file, over and above a computerized system. They are duplicating efforts, so it is rather they revert to the manual system. This is synonymous with everywhere. Even if you go to the Ministry of Lands and Rural Resettlement, there are files almost everywhere. Why cannot we computerize? Why are we not doing that? It expedites application and whatever work that we are doing. It simplifies and shortens the time that we do work in this nation.
Mr. Speaker, I will not overemphasise the point that my colleague also made that we need to empower locals whenever there is a tender. Right now, there is the Beitbridge – Harare road and we need to empower the people of Matabeleland South, Masvingo and
Mashonaland East to participate in these tenders. Mr. Speaker, I want to thank you for this opportunity.
HON. SANSOLE: Thank you Mr. Speaker. I would just want to
add my voice to the debate in support of this Bill. I think a lot of emphasis has been placed on procurement. There is another aspect of the Bill which relates to disposal. The pitfalls associated with procurement, the delays associated with central procurement and the corruption that has been associated with the State Procurement Board have been adequately dealt with.
However, if we look at the disposal side of it, there are also benefits that accrue to local communities as far as disposal of assets is concerned. I know the previous speakers have spoken about empowerment as far as tenders are concerned but there is also empowerment that accrues to locals in the form of having access to assets that are disposed of by State enterprises, Government departments and local authorities. For instance, sometimes you have motor vehicles sold by local authorities and Government departments – even small things like tyres sold by CMED, these were sold through some central department in Harare. If disposal is done at local level, the locals also have an opportunity to be able to bid and purchase those assets. So, I would like to support the Bill in that respect. I thank you.
HON. MUDARIKWA: I need approach this debate from a
different dimension. Our procurement must be categorised in such a way that for example, we have manufacturing procurement. If we want say for example, trucks, that tender must indicate that it is only people who are registered with the Ministry of Industry and Trade who are known manufacturers of trucks who can then tender. We have a situation where vehicles are being procured outside Zimbabwe and yet we have the facilities in Zimbabwe for assembling the vehicles. We have some companies that have got employees who are waiting to do the work.
Most of the work pertaining to vehicles comes completed from outside Zimbabwe. On manufacturing procurement, there is no one who will sell coca cola less than Coca Cola itself. Why then do you want to get a third person to say there is a tender for doing this when we know that it is Schweppes that manufactures Mazoe? Those things must not be tendered for. It is known we want to support our local industry; we must just go and buy there.
We have a situation where people are calling themselves businessmen because they just go and facilitate, get a tender and then bring vehicles outside Zimbabwe. Some of the vehicles are not even suitable for Zimbabwean terrain. That creates a situation where we have massive unemployment in Zimbabwe because there are no spare parts for those vehicles. There are no garages with equipment to give a back up arrangement.
Turning to e-procurement, that is only possible when you have people who are willing to use the system because these days when banks do not want to give you money, they just say our systems are down. The same thing will happen when you introduce e-procurement, the Tender Board will say our systems our down, let us go manual. It is the element of people who want to steal, they always look for ways to move away from things that are transparent.
There is this issue of sealed envelopes. I remember tendering to a certain organisation and then they said bring in your documents in sealed envelopes. Under the cover of darkness someone can simply put your envelope over hot steam, opens it to see your amount and put the lowest figure and gets the tender. It is so simple and this is how Government departments are buying very expensive goods. Even if we are to ask
now, what is the cost of a shoe or jacket? Suits here in town cost $15 but suits for Government messengers go for $180. You can just see how things are and all this at the end of the day does not benefit out economy because those suits are even imported from other countries.
Another issue is community procurement, like what has been mentioned, how do you get people digging trenches from Harare to
Gweru. There are some local youth there who can dig. They are there. Digging to us is nothing new because we have got the hoes and shovels, so what is so special about getting one company coming all the way from Harare to dig trenches of data cables? In other situations cutting of grass…
Interruption of microphones due to systems failure.
THE TEMPORARY SPEAKER: What is happening? What is your problem Hon. Member?
HON. MUDARIKWA: Even as I am debating Mr. Speaker Sir,
the tender for this equipment was not designed for tall people like us.
This was meant for someone with a Chinese height. It was approved and now we struggle. I saw Hon. Dr. Made, when he was negotiating the other day, he was talking as if he was trying to fly. These microphones are not built for the needs of our people.
We must have tenders that are clear and meant for indigenous Zimbabweans. Local banks must support that tender. We can have a nation of economic spectators where people from other countries come in to make money whilst we are looking. That is unheard of. We are economic spectators day-in and day-out. With all the level of intelligence in this country, the education we have got, the STEM that has been initiated by Hon. Prof Moyo, we cannot fail to have people to manage these projects. It is important that certain tenders must indicate that this tender is for an indigenous Zimbabwean.
On economic empowerment, we must just say this tender is for women. There is no need to say 30%. It is a tender for women who constitute 52% of the population. They have a right to be looked after. They have a right to be given preference because they are 52% of the population. We also have the youth; they must be given the same facility. How do you have a tender for supplying vegetables given to me, a man when there are women who have tendered? Any tender for supplying vegetables should be given to women because they are good at that. Our economic development will be nothing when we only have rich men and poor women. It is unacceptable in this day and age. We must have women who are masters of their own destiny, who can say I have won this tender, it is my responsibility and I am able to support it and then we can support them.
Lastly, if you check the amount of money that is spent on tenders per year and the amount of money that is coming to local Zimbabweans, it is less than 10%. 90% is going to foreigners. Even in other situations where our people have the capacity to do it, that thing is not being possible. It is also important that one way or the other, our people must be protected. For example, when Zimbabwe was supplying beef to the EU, we were given a quota for EU and not a quota for Britain. There are certain things that we must say these things are for Zimbabweans. It is us here who make these laws and it is the same of our officers who implement these laws.
I want to thank you Mr. Speaker Sir for allowing me to contribute. As for the oversight role, the Committee chaired by Hon Chapfika must continuously interface with the Tender Board on how they doing, not to just wait for them; and after they have awarded a tender, we come here and start complaining when somebody is already dead and when all our youths are gone as most of them are now drug addicts because they have nothing to do. We have to do things that benefit our people. I want to thank you.
HON. D. SIBANDA: Thank you very much Hon. Speaker for
affording me this opportunity to also air my views on this interesting debate. Hon. Speaker, I expect that the Procurement Board should be independent – work independently from the three arms of the State. Also, when the board is being put in place, it should be approved by Parliament and there is need that on that board, if there are 10 members there should be 50/50 representation that is, five women and five men because that is what gender balance means. That is what we expect. When appointing the board, there is need for professionalism. Let us have people who are professionals, those who have the know-how of procurement so that there is less corruption on that board.
Mr. Speaker, on the issue of corruption, the Government should also put systems in place to try and cover up the loopholes in order to avoid corruption completely. Back home there, people expect that whatever is being sold at local level, 30% should be given to Government and 70% should go back to the locals – that is decentralisation of the resources. There is also a tendency of the Committee members of the Tender Board to be also bidding. When vehicles are being sold, they are also there bidding for those vehicles.
Mr. Speaker; we do not expect any one of them to be part of the bidding because that is corruption. Then, there is also need for adverts; they should be put well on time and people back home were also concerned and said sometimes we would not even be aware of what is happening – we just hear when the tender of the vehicles or whatever have been already sold. So when adverts are being done, there is need for them to also be done in vernacular so that everyone understands.
If the procurement is being done in Victoria Falls, it should also be advertised in Chitonga, Nambya or whatever language that is spoken there. If it is done in Bulawayo, we expect it to be done in Ndebele so that everybody, including the ordinary man on the street can understand that such a thing is happening. Thank you very much Mr. Speaker.
*HON. MAPIKI: Thank you Mr. Speaker. I thought I would just add my voice to the debate. I would want to believe that the manner in which the Bills crafted should benefit even the small to medium enterprises because the informal sector is now the backbone of the Zimbabwean economy. Glen View for instance, is now manufacturing chairs and so sofas. People even go to buy these products at a lower cost. They will have secured these tenders and then they come and put a mark-up which is four times. They would have passed the Standards Association test. We do not encourage the people that are in the small to medium enterprises who were supposed to receive 25% of
Government’s business. When you observe the people that are in that particular sector and what is in circulation, the study conducted by
FISCO says that $8 billion is in circulation in that sector of the industry. So, in light of that, Government whenever it thinks of floating tenders, it should encourage Zimbabwean companies to supply.
We even have parking meter attendants from South Africa – they are the ones that won the tender and when we do not give them such tenders, we mourn that they are not paying taxes. How will they be able to pay taxes when they are not receiving such lucrative tenders? I urge Hon. Chinamasa to look into the small to medium enterprises sector – they sell their door frames or doors at a low price and when they supply to someone who has won a tender, they are making a killing out of that. We should be working towards ensuring that our own companies get these tenders so that we benefit from the low costs.
I was looking at Mtshabezi Hospital in Matabeleland South; they came to procure a tender in Harare for the sale of wood for their ceiling but, there are expects in Matabeleland who can put up very good ceilings. They came here to look for Harare briefcase cases and the money that was paid for such tenders is misused when trying to track them. They fail to understand them because they do not even have phones.
The other culprits are local authorities – in the manner in which they win their tender. Why would someone want a tender for the supply of vegetables which normally cost 25 cents but, they give tenders to one who buys at $1. Why not simply benefit from this because a lot of corruption would then be involved. We should look at our upcoming business that are in the small to medium enterprises in conjunction with the Indian Government, there is a company called Indo-Zimbabwe and it shows that a lot of businesses do not have the same competence and they cannot supply the same goods as those that are being supplied by this particular company. More often than not, their good work is looked down upon or frowned upon. We should be encouraging it and not only the large corporates. We should at a paradigm shift like other countries are doing so that we should not have tar macadamised roads but have concrete roads. In this country we have engineers. We should have engineers who are doing their work and not those that are merely introduced in title only at rallies. Let us promote the local engineers in Zimbabwe rather than have expatriates.
I was looking at another job where tenders were being flighted for riverbed mining and a lot of foreigners landed these contracts whereas, it would have been easier for us to employ our own local indigenous people to do riverbed mining. We have experts in that particular field and they should be benefiting. Those that we give that come from outside the country come here and loot our mineral resource and run away. It is easy to remonstrate with a local person than would be the case with a foreigner.
I will come to motor vehicles that need to be supplied for instance, to Parliament. You will see that the tender would be awarded to someone who manufactures motor vehicles, but, why is my motor vehicle now being imported from Durban? Why should Zimbabwean people not be given a tender to supply motor vehicles from knocked down kits. If that were to be looked, it would assist us as a country and it will develop our economy. I thank you Mr. Speaker Sir.
*HON. MATAMBANADZO: Thank you Mr. Speaker Sir for
affording me this opportunity to add my views on to this debate. That is in line with the Bill on the Procurement Board. My opinion is that as we look into this legislation, we must put in place measures that ensure that Government does not suffer any losses. Once the Government suffers losses, all of us will be blamed for having failed. I want to believe that whenever there will be a tender, there will be a budget. Once the budget is done on what needs to be procured, for example, ZESA, a certain amount will be put aside for the purchase of transformers. For instance, if it is US$200 million, there should be a law in place to say that the supplier of the tender should not exceed US$200 million mark.
Secondly, the company that is awarded the tender should complete its work and paid a stipulated amount. We should not have a situation where a company with the lowest bid is awarded the tender and then they undercharge. For example, for a job worth US$200 million, the tender will be at US$100 million and then ways are crafted to defraud the Government. Upon using up the US$100, they will then request for US$50 million, subsequently followed by US80 million. By so doing, it will exceed the limit of the tender pegged at US$200 million.
Hon. Minister, it is your job because it is you who will be blamed and we are also indirectly blamed. I am saying that contractors should give a timeframe and they should not undercharge. Once there is undercharging and failure to complete the project at the stipulated time, the two parties to this contract, the contractor and the one who won the tender, should both be fired or measures should be taken to ensure that they are brought to book. We should come up with stringent measures and we should not continually mourn that a lot of money is being defrauded. We need to come up with stringent measures in the form of legislation.
If the tender is from Kwekwe, local people should be given first preference to the tender in question because they are not going to enjoy the benefits alone. If I am given a tender to repair roads in Kwekwe – if a local person is given that contract, they may have a bulldozer and a tipper and they may get other equipment from Harare. We are saying that there should be coordination in terms of equipment between a local person and an outsider so that they collaborate on the work given such tenders. This should be the law. I believe that is all I intend to contribute on that Bill. I thank you.
HON. J. TSHUMA: Thank you very much Mr. Speaker Sir. May I also add my voice on this very important matter. I will start by giving you a narration of what I saw happening in front of my eyes. In my
Constituency, Pelandaba Mpopoma, there is a big stadium called White City. That stadium was renovated, I think sometime in 2014. When it was being renovated, guess what happened, a contractor from Harare was given that job. When they came to Harare, what saddened me most was that, simple jobs were taken up by people from Harare at the expense of the youths who are in my Constituency, in Pelandaba, Minyela and Mpopoma. They could not find employment there. When the contractor came and did everything, which was substandard, he fled after our intervention and the few people who were contracted to go and work there, were not paid their money.
The problem is that for us to start following up on that person became difficult because he did not come from Bulawayo, he came from Harare. That was a very painful and saddening issue which is still pending to this day. I have got youths in Bulawayo who were not paid but worked for a contractor from Harare for a project in Bulawayo. That is where the problem is.
So, Mr. Speaker Sir, the reason why I am saying this Bill is very important is to make sure that we lock down these things, sonke sifuna ukukapula. Let the people in Bulawayo also kapula because they are also as human as anybody else. Once we go into this thing, let it be made clear that we shall not compromise on that because we end up looking like we do not – that is where even the question of marginalisation, this and that comes in. We will not be able to handle it in a proper manner because of simple things like this.
Mr. Speaker Sir, I want to say that, definitely, let us support this Bill and make sure that from now onwards, let the person who stay there enjoy the benefits of staying there by being given the opportunity from there. I will give you another typical example. I was also saddened when a tender came out at Mpilo Central Hospital and someone from Harare was given that tender. I was saying to myself, really, do they think that we are so abnormal or useless that we do not deserve to eat or partake this national cake? I hope that all these issues – [HON.
MEMBERS: Inaudible interjections] –
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Order, order. Hon. Members lower your whispers please, you are making a lot of noise. We cannot hear what the Hon. Member is trying to put across.
HON. J. TSHUMA: I think there are some people with that mentality, who think that if you start speaking about Matebeleland, you are being tribal, which is not the case. We are not being tribal, we are being factual. It is a fact that things have not been going well and need to be corrected. I am glad that this Bill speaks to all these truths and facts. Mr. Speaker Sir, all I am advocating for is that whilst we are here in this House, let us get things clear and straightened. This is not politics, it is business and when we talk of business, we are talking about survival. Talking of survival means the generation down the line stream. I hope that we will take this seriously, knowing that we are above politics. We are in an august House representing people. My people in Pelandaba Mpopoma Constituency suffered because of negligence of giving a tender to somebody from Harare which could have been done by someone in Bulawayo. I must say it, we will not take it lightly. I am glad that there is a Bill that seeks to address that kind of anomaly so that we all operate at the same level and sharing the national cake and everything is alright.
Mr. Speaker Sir, allow me to also bring your attention to the issue of the public asset disposal. I speak of this because I am aware that Government has properties like houses which were built a long time ago, even in the Rhodesian era, which are being used by teachers and others.
I hope that this Bill will also address that so that the people who have been living in those houses become the beneficiaries of these houses. Let us not have other people like Ministry Officials coming in to try and take away these houses from these people. I speak of this because I have an example of one teachers’ cottage in Pelandaba which has been there time immemorial. Now, because disposals are about to happen, other people are now eying to disperse the people who have been dwelling in those houses from time immemorial – that should not happen. Let us have the people that are in those houses being the first people offered to get those houses and when they get them, please I hope that the Bill will address the issue of how much they should be paying rentals. They have already been paying rentals for these houses for over 30 years now, so I hope that this Bill is going to also look into that issue so that we play fair with everybody feeling that they are part of this system because we are a Government of everyone. I hope that this Bill will address that.
With these few words Mr. Speaker Sir, I want to thank you for giving me this opportunity to air my view especially about Matabeleland but not in a tribal manner. We are not being tribal – in Matabeleland, we have got our fellow brothers who are from Mashonaland but now they are part of us. I can tell you about people like the Vurombos, vana Vera, vana Madzimbadondo, they are now part of us. When I say
Matabeleland, I am not saying Ndebeles but everybody who has interest in Matabeleland whether they are Shona, Kalanga, Tonga or Venda but we are from Matabeleland. I thank you.
HON. GABUZZA: I just want to raise a few points. Firstly, traditionally procurement has been always under the Office of the President and Cabinet. I think Mr. Speaker; let me hasten to warn that I think it is not a good idea if the Bill still wants the procurement to be still under OPC. Procurement itself has a lot of problems, abnormalities, a lot of favoritism, a lot of complaints. If we keep on continuously putting it under the Office of the President, in my respective view, I think it reduces the credibility of the office of the President, when we continuously see a lot of court cases, challenges, overhaul, what could have transpired and a lot of corruption. So, it is my respective view that in the next Bill we must consider finding a different home for this Procurement Board.
Secondly, Mr. Speaker, in Botswana you cannot employ anybody who is not a Mutswana. If you do that, you have to prove beyond reasonable doubt that you advertised three times for that particular job and you could not find a Mustwana. I think if we look at what is being proposed in the Bill, there is the issue of domestic. Domestic must mean domestic and not mean Zimbabwe, it think it must mean domestic. Charity begins at home as they say. When we do our procurement advertisement and processes, we must be able to categorise that whatever company is tendering or is about to procure some services, they must prove beyond reasonable doubt that within the district there was no company or companies that were able to tender and capable to supply a service. If there is that proof that they could not get, then we must move to a regional level within that province; then we open it up to the nation. By so doing, I think that question of equitable distribution can be fairly realised. If we just leave it to say domestic means Zimbabwean, it will be the same people and usually same criminals getting jobs and benefiting the same people and usually those who are highly connected and those who are able to pay a better bribe than the other smaller guys and those who have access to information.
I think the Bill must have stages or categories to say we start at district level, if we cannot get anyone, then we move on. Failure of which, maybe I would suggest our system categorises procurement in such a way that we say beyond a certain amount these are open to national tenders. Below a certain value, we do not open it to everyone but it is restricted to local areas. If we do that, I think there will be a mechanism of trying to benefit everyone especially at local level.
The other issue Mr. Speaker is the issue of the Procurement Board. I think from experience, if you put a static board, it normally faces challenges because tenders come in various forms, technicalities, one time you are tendering for the services of cricket carpets, the other time you are tendering for a motorized grader, the other time you are tendering for an aeroplane. I think within the board, there must be a leeway. That board must be flexible enough to say we have certain permanent members but once in a while they must be able to bring in certain skills which are not available when they are dealing with a particular matter. It is very important because in most cases you get people presiding over an issue that they do not have any knowledge or understanding about and eventually give the wrong person because the specifications were beyond their imaginations.
The issue about E-procurement, I think it is something that we must proud ourselves given that we are one of the most educated nations. Why should we still be using paper work? A good example is that we have a very brand new airport at Victoria Falls. I went there over the weekend, two aeroplanes came in, B.A and South African Airways at about 1200 hours but tourists started coming out after about 3 hours at 1500 hours because all the system was manual. To get a visa, the immigration had to write it physically, put an amount, no receipt given and clearly you could see it was meant for abusing the funds. Why would it take, when we need tourists so much and we need to do business so well, we have to take three hours to clear tourists? This is because we do things manually and everyone I think from those developed countries, really got shocked and asked why we have to struggle to write a visa by hand. It is the same thing with procurement. Let us go e-procurement – that is the modern and fast way of doing things. I think this cannot be over-emphasised. If it is possible, the Bill must clearly reflect that we must be moving towards achieving that. Having said that Mr. Speaker, I think I would wish to support the Bill and possibly propose amendments at the appropriate time.
HON. ZINDI: Thank you Hon. Speaker. I am just going to highlight a few areas because most of the things have already been said. I just want to mention that this is a State purse or State resources and everybody is looking at the State purse. When we are looking at the State purse, State is the highest spender and everybody is looking at that and internationally.
Therefore, when it is like that, I would like to emphasise the point that we need to make sure that the local people benefit as a result that most of this money have been raised within the state as well through taxes. It is our own money but it is money now being taken, which would end up benefiting foreigners. If we do not revisit the issue of having to support local people; for example, I always want to point this road, the Plumtree- Mutare resurfacing that is a South African company. Of course, I understand local people were part to that deal but it was not that easy for the local people to be part of that deal, Group Five. There was quite a fight in order for them to be recognised, though of course they also did a mediocre job but at least there were local people who got part of that deal.
Now what it means is, if we focus on foreigners, without also bringing the component of the local people, the money is then taken out of Zimbabwe, hence the situation we are facing to say that we no longer have enough money in circulation, in particular US$. United States dollar is a sought after currency world over. This is what we are using to transact business. Therefore, we are an attractive market internationally and everybody would like to come to Zimbabwe because they know they get the US$. Therefore, I am proposing Mr. Speaker and it may sound like repetition but I think it is important. Sometimes repetition is emphasis of an idea, that we go e-procurement, we categorise what should be local tenders for local people and that should not go international.
I am saying as well, when we get to the point of saying this is a tender to be flighted nationally or internationally, we have to look at the aspect of saying you do not have the local expertise in order to execute that kind of a job or a deal. That way, I think that will encourage circulation of money. It will also motivate our local people even to pay tax. As the Minister of Finance and Economic Development, last week he was complaining that Blacks have a culture of not wanting to pay tax. If they know that they have access to State procurement, State purse, they will be encouraged to be part and parcel of having to remit their taxes but if it is money that is taken by foreigners, sometimes they end up asking, why then should I contribute to the State purse?
I also want to give an example Mr. Speaker. The Black Economic Empowerment Policy in South Africa, was created particularly to support the local people. Therefore, pachivanhu tinoti gugara nhaka huona dzevamwe. If the South Africans are doing it and it has brought positive results, of course there is no system which does not have merits and demerits. It has its own merits and demerits but we need to look more on the issue of saying how many and how effective has that system been in South Africa. To a larger extent, it has been effective.
Therefore, there is nothing that can stop us as we amend this
Procurement Bill, to look into the aspect of considering the aspect of the
Black Economic Empowerment Policy that had been adopted in South
Africa; looking at the past, how we have been performing through the State Procurement Board.
Hon. Mudarikwa gave us an example of saying, tall people like us have to bend in order to reach this microphone because the tender perhaps was given to the Chinese and Chinese being short people, this is their good height. So, we have to adjust ourselves and sometimes end up with back pain because we need to adjust to the height of the Chinese which does not fit us. Really Mr. Speaker, I think when we have the Bill amended, it has to look into that aspect.
The other aspect I also want to raise is the fee that is demanded in order for a company or for one to participate in a flighted tender when you are to bid. Sometimes they raise it so high to the extent that the local people will not be able to participate. I think last time it was US$100. You pay that US$100, you access the papers, you are given that vendor number but no job will ever come through to you simply because you are not well connected but this is already US$100 that has gone. So, I think a revisit as well when we categorise international and local tenders, is to come up with a fee structure that suits the local people.
Finally, decentralisation, I think we need to emphasise on that. When this Bill is amended, it has to look on the aspect of saying whatever tender, let us look at that district, in that province and let us also look at the aspect of women and youths. It is important – yes Hon.
Mudarikwa said it but I think we need to emphasise it as well from the women’s point of view, me speaking here, that women we need to actually have a say. We need to have a participation in the State procurement because as I said earlier on, these are all monies that have been contributed to through taxes, levies et cetera in order for us to come up with that State purse and let the women also have a say in that because most of them you find they are companies dominated nevarume so we are saying madzimai nemayouth let them be part of it. With those few observations, I thank you Mr. Speaker.
HON. MUSANHU: Thank you Mr. Speaker Sir. I rise to point out some few remarks on this debate. Mr. Speaker, if all Zimbabweans were patriotic, I do not think the Minister of Finance and Economic Development was going to have any problem with having deficit on the budget. What it means is, every Zimbabwean who was going to benefit would actually employ and the people who are employed would pay tax so that the Government can have some funds.
On this issue, if you look at my Hon. there, the Vice President of MDC, if you look at the label of his suit, it is not a local suit. It is an import and if you look at all the other Hon. Members around, the clothes that we are putting on are actually imported. That shows that the mind of people has a mentality or we also have an inferior complex that if you buy the local material, you are degrading yourself. Given that even the Minister of Agriculture, Mechanisation and Irrigation Development here has actually said that genetic cotton is not permissible, most clothes that are worn in this Parliament are made out of genetic cotton which shows that we sometimes refuse to do some things but at the same time we are doing the opposite thing on the other side.
I just stood up to point out those few sentiments. I do not want to repeat what has been said already. With these few remarks I have made, it would go a long way and it would help our Minister of Finance and
Economic Development if we become patriotic and help our
Government to collect as much revenue as they require. I thank you.
HON. ENG. MUDZURI: I just want to add my voice to the
Procurement Bill. I would want tomorrow to bring written comments to the Minister from the Zimbabwe Association of Consulting Engineers which they have presented asking you to look clause by clause in terms of their concerns. It is just unfortunate that I did not bring them. I will try to bring a copy to you.
On procurement, it is important to recognise that it is best practice to have the best procurement standards. It is unfortunate that sometimes our institutions are not very much prepared to do best practice. I think the Minister’s effort, if it is complimented by the appointment of a board of people who are truthful and nationalistic who really want to see this nation moving forward, we are likely to have decent results on the decentralised form of procurement.
What I want to put across is that procurement must be complimented by people who are competent. If you look at the bridges which are not properly constructed, once rain comes they are washed away because there is no complimentary work in terms of a design to DDF. While we say the work is good, the community has done its work we are also not looking at the quality of work we are doing.
I remember the other day we were also speaking to the quality of engineers we are recruiting in Government. I was looking at a pothole which was filled the other day along Masvingo road. We were sitting inside it and this pothole was filled while I was watching. We insisted on quality of work. There are certain standards that are kept in terms of just doing pothole patching. We have spent a lot of money patching but within no days the whole pothole will be gone. So, we will have put money but it will not last. There is always a need to have a balance between the quality and the quantity of work done. We are always so expedient on the quantity and probably over indigenising.
Indigenisation is very important but we must create our international markets. We must create economic destinations for our products. When the Minister comes and says let us try to have areas where we have value addition, we must be prepared to build industries that are competitive internationally. When you value add and something is not going to be marketed externally, we are still not doing much to our economy. While we want to be very local and want to use our people, we must always balance our Standards Association of Zimbabwe with what happens internationally. If we think that our standards are superior we can always use the standards of Zimbabwe outside the standards of external agencies but we must ensure that the standards are competitive when we try to export the product.
I must hasten to say we have talked about buying local suits according to Hon Musanhi but what we should do is to ensure that the standards of the clothing we make is competitive for the market we are destining it for. We are such a small population of 14 million people and when we are 14 million, we must be exporting our goods to larger markets. If we can make things cheaper than in China, the population of China will be able to buy from us. If we can make our product cheaper for the market in South Africa, then we will be able to do our marketing in South Africa. A combination of those factors will bring our industry to the fore. If we do not work towards a common good, we are going nowhere because we end up with a product that is not marketable and we end up trying to sell it locally by force and still will not get a market.
With these few contributions and the document which I will bring to the Minister tomorrow, I want to thank you.
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Thank you Mr. Speaker
Sir and I want to acknowledge the contributions made by all the Hon.
Members. I will just mention them by name; the Portfolio Committee
Chairman, Hon. Chapfika, Hon. Nduna, Hon. Misihairabwi-Mushonga,
Hon. Chakona, Hon. Mudarikwa, Hon. Sibanda, Hon. Mapiki, Hon.
Matambanadzo, Hon. Tshuma, Hon. Gabbuza, Hon. Zindi, Hon. Musanhi and lastly Hon. Eng. Mudzuri. I thank all of you for your contribituions and more importantly, for the support that you are giving to the Bill.
I just want to underscore that this Bill is about decentralisation to procurement authorities. Currently, the State Procurement Board is procuring for all procurement entities and these include local authorities of whatever size, parastatals and line Ministries. With the enactment of this Bill procurement is going to devolve to these procurement authorities which means that, each line Ministry will have a procurement unit. Bulawayo City Council will have a procurement unit so is Harare Municipality and so are parastatals. But, they will not be given that responsibility until they have been trained on standards and norms of procurement and procedures. Obviously, municipalities like Bulawayo and Harare could get that function quickly, compared to other municipalities and town boards. That is what this Bill is about to do – to devolve that procurement function from the Central Government so to speak, to the procurement authorities. The State Procurement Board is going to remain but with a different function; that of regulatory. It will regulate and monitor all the activities of the procurement entities. So when you are talking about who should be on the board and so on, it is no longer quite relevant because each procurement authority will set up its procurement unit at a local level, and then discharge its function.
So I want to say that, the contributions which were made, I want to go and reflect on some of the proposed amendments that were suggested. In particular I want to reflect more deeply on what Hon. Eddy Cross said about procurement of professional services - for architects and engineers. I think that there is merit in his argument, that when you are procuring engineering services, clearly the fee structure is as determined by their institute and it is applicable to every engineer. What is an issue is the quality of the service. So, we want to look deeply into that to see what can be excluded from the tendering and what can be included. I will need more time to reflect on that.
Hon. Misihairabwi-Mushonga, just for the record, I think we need to understand that yes, when we are procuring from Gweru, Kwekwe and Gwanda, we need to look at what expertise is available. But if that expertise is not available, we should look nationally. I also want to say this Hon. Misihairabwi-Mushonga, you need to know that while the road from Mutare to Plumtree was given to Group Five, the actual contractor was a Bulawayo company. I am just talking about the issue raised about discrimination and so on. The company that did the Mutare to Bulawayo was a Bulawayo company. So, you need to know that. But, I think it was also because it had capacity. I know the company has the capacity and I do not think that we should shy away from employing a company which has capacity because we think that it does not come from the area where the contract is to be performed.
We have contracts here which some of them are of a sophisticated nature. Bulawayo Power Station; of course you do not expect that the expertise would be resident in Bulawayo. Anyway, in the case of the Bulawayo Power Station, because of the nature of loans conditionalities, the contractor is an Indian company because we got the loan from IndiEximbank but, we do negotiate with them to see that they also incorporate procurement of local materials where that is possible. But clearly, the machinery would have come from India in this case.
So, again you raised the issue of procurement of lawyer services and so on. Again but to think about it, I should not be forced to hire a
lawyer whom I do not like - [HON. MISIHAIRABWI-MUSHONGA:
Inaudible interjections.]- no, I should get a lawyer whom I am comfortable with, who can advance and defend my interests. So, it should not be a surprise and generally clients Mr. Speaker Sir, follow their clients. If a Bulawayo lawyer located to Harare, you will find that clients from Bulawayo will follow him even to Harare because they are used to expecting a certain quality of service from him. The Hon.
Member (Hon. Gonese) who has just sat near you, he gets clients from
Harare, yet he is located in Mutare –[HON. MISIHAIRABWI-
MUSHONGA: Inaudible innterjections]-
I do not know about that but clearly I know that there are lawyers in Mutare who get clients from Harare. There are lawyers in Harare who get clients from Kwekwe; lawyers in Kwekwe who get clients from Harare and I do not think that it is an issue that we should worry much about, where you procure your lawyers.
Hon. Chakona, thank you very much – I am also going to look into the issue about what these vendor numbers are about and whether in the past there has been an abuse of vendor numbers. I am also going to look into the issue of tax clearance certificates – in what circumstances they are issued in order for entities to qualify to participate in public tenders. Another issue that I am also going to look into is the procurement of technological and engineering solutions. We also need to look at and see whether this can be incorporated as a requirement in most of what we do if there is local capacity for supplying these services.
Hon. Mudarikwa, I got you and Hon. Sansole thank you for your support. The point that I got from Hon. Mudarikwa is basically that which is not quite to do with procurement – where you have five or so telecommunications companies digging parallel trenches and each trench containing a fibre optic which has capacity for all the five. That is a different problem which in the area of telecommunications, is being handled through the Ministry of ICT.
Hon. Gabbuza, I thank you and I think I have also understood the contribution by Hon. Matambanadzo for localisation and also Hon.
Tshuma for localisation. Hon. Mudzuri, I am waiting for the submission of the proposals from the Zimbabwe Association of Engineers so that we can see whether we can take any of their suggestions on board.
With those remarks Mr. Speaker Sir, I now move that the Public Procurement and Disposal of Public Assets Bill (H.B. 5, 2016), be now read a second time.
Motion put and agreed to.
Bill read a second time.
Committee Stage: Wednesday, 8th February, 2017.
ANNOUNCEMENT BY THE TEMPORARY SPEAKER
REPORT RECEIVED FROM THE PARLIAMENTARY LEGAL
COMMITTEE
THE TEMPORARY SPEAKER: I have received a non-adverse report from the Parliamentary Legal Committee on the Appropriation Bill, (2017) (H.B. 14, 2016).
Second Reading: With leave, forthwith.
SECOND READING
APPROPRIATION BILL, (2017) (H.B. 14, 2016)
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, the
purpose of the Appropriation Bill is to give effect to the main Estimates of Expenditure for the year ending 31 December, 2017, which I tabled in this august House on 8th December, 2016.
Section 3 of the Appropriation Bill, charges the Consolidated Revenue Fund with a sum of US$3,426,289,000, which relates to the 2017 Vote Appropriations.
The Vote appropriations seek to ensure realization of the overall objectives of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZIM ASSET), 2013 – 2018 programs and projects under implementation by the Government.
The 2017 Budget policy measures include, among others;
- Enhancing production across all sectors of the economy through giving greater and more urgent attention towards the supply side interventions;
- Strengthening of social safety nets in support of vulnerable groups in line with the objectives of our Interim Poverty Reduction
Strategy Paper (IPRSP) for 2016 – 2018;
- Containment of expenditures, particularly employment costs in order to re-orient the thrust of fiscal expenditures towards service delivery and infrastructure development, particularly in the Energy, Water, Transport and ICTs subsectors.
Mr. Speaker Sir, Section 5(1) of the Bill empowers the Minister of Finance and Economic Development to transfer funds already approved by Parliament between Votes in respect of a function or responsibility transferred between Ministries and Departments during the course of the
Fiscal Year.
Section 5(2) of the Bill allows discretion by the Minister of Finance and Economic Development to transfer funds from the Unallocated Reserve, which appears on the Ministry of Finance and Economic Development Vote to any other Vote as and when the need arises in order to meet inescapable expenditures.
In addition, and if necessary, the Minister of Finance and Economic Development can vary the amounts transferred by taking back any surplus for reallocation to other Ministries to meet demands that may arise. Mr. Speaker Sir, I accordingly move that the Appropriation Bill, (2017) [H.B. 14, 2016] be now read a second time.
Motion put and agreed to.
Bill read a second time.
Committee Stage: With leave, forthwith.
COMMITTEE STAGE
APPROPRIATION (2017) BILL, [H.B. 14, 2016]
House in Committee.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT: Madam Chair, I put the amendments to the schedule standing in my name. These are the amendments that I have already explained during the debate last week that;
On page 2 of the Bill, in Section 4 (schedule), paragraph 2 (Parliament of Zimbabwe), under Sub-Vote II replace “26, 245, 000” with “35, 245, 000” and adjust the Vote Total appropriately to reflect “39, 713, 000”.
On page 3 of the Bill, in Section 4 (schedule), paragraph 5 (Finance and Economic Development), replace “281, 191, 000” with “206, 374,000”.
On page 4 of the Bill, in Section 4 (Schedule), paragraph 16 (Higher and Tertiary Education, Science and Technology Development),
- Under “Programme 1”: delete the words “Administration and
General” and replace them with “Policy and Management”.
- Under “Programme II”: delete the words “Teacher Education” and replace them with “Human Capital Development”.
- Under the renamed “Human Capital Development” programme, replace “193, 272, 270” with “259, 089, 270”.
- Under “Programme III”: delete the words “Technical Education and Training”, and replace them with “Science and Technology
Development”.
- Under “Vote Total” replace “200, 886, 000” with “266, 703, 000”.
On page 5 of the Bill, in Section 4 (schedule), paragraph 17
(Youth, Indigenization and Economic Empowerment), under
Programme V: Human Capital Development, replace “4, 901, 279” with
“4, 271, 279”, and adjust the Vote Total appropriately to reflect “17, 192, 000”.
On page 5 of the Bill, in Section 4 (schedule), paragraph 23
(Women’s Affairs, Gender and Community Development), under Programme I: Policy and Administration, replace “637, 890” with “747,
890” and adjust the Vote Total appropriately to reflect “8, 434, 000”.
Amendments to the schedule put and agreed to.
Bill reported with amendments.
Bill referred to the Parliamentary Legal Committee.
MINISTERIAL STATEMENT
CURRENT STATUS OF VAT ON BASIC GOODS
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir I crave the
indulgence of the House to issue a Ministerial Statement. The Ministerial Statement is concerning the current status of the VAT on basic goods.
Mr. Speaker Sir, you will recall that in the 2017 National Budget, I propose to introduce VAT at a standard rate of 15% on products which include rice, margarine, cereals, maheu, potatoes, meat (pork, beef, fish and chicken). The basis for standard rating the products is mainly due to the need to rationalise the schedule of zero rated and exempt goods in order to broaden the tax base and minimise the cost of tax administration.
Mr. Speaker Sir, Zimbabwe, together with other SADC Member States, has ratified the SADC Protocol on Finance and Investment. Under the Protocol, Member States are mandated to harmonise taxation matters and coordinate tax regimes.
In an endeavor to harmonise taxation matters, the SADC region has developed VAT guidelines which enable Member States to sustain and enhance tax revenues on an equitable and efficient basis.
Member States have, thus, agreed that the list of zero rated and exempt products should be streamlined in order to achieve the following objectives:
- Broaden the tax base;
- Enhance revenue generation;
- Promote administrative efficiency;
- Minimise corruption
- Ensure similarity among Member States; and Enhance equity and fairness among others.
Mr. Speaker Sir, in the SADC region, Zimbabwe has one of the longest list of zero rated and exempt products. The list of zero rated and exempt products include, but not limited to the following:
- Grains such as maize and wheat;
- Mealie meal;
- Bread;
- Cooking oil;
- Salt;
- Milk;
- Fruits;
- Vegetables;
- Eggs;
- Inputs for manufacture of cooking oil;
- Soya beans;
- Protective clothing;
- Animal feeds and remedies;
- Pesticides;
- Fertilizers;
- Medical services;
- Selected pharmaceutical products;
- Domestic supply of electricity;
- Domestic supply of water; and
- Supply of goods such as books, typewriters and maps for use by physically challenged persons, among others.
Countries such as Namibia, Lesotho, Malawi, and Zambia have a minimum list of zero rated and exempt products. Such countries charge VAT on products such as rice, fresh milk, fruits, eggs and meat products among others.
However, in our circumstances, following the debate that took place here and stakeholder representations, wherein concerns have been raised regarding potential informalisation due to perceived price increase, I propose to shelve the implementation of Statutory Instrument 20 of 2017 –[HON. MEMBERS: Hear, hear.]- Which levies VAT on potatoes, rice, margarine, maheu and meat products. This will allow for further consultation with relevant stakeholders and those consultations, I will start them with this august House. I need the august House to give me guidance. I must tax something to raise money to pay for service delivery, allowances, and wages. So, we need to have guidance so that we understand and agree on which items to tax. So, the consultations will start with this august House. I thank you – [HON. MEMBERS:
Hear, hear.]
HON. P.D. SIBANDA: Thank you so much Hon. Speaker. I think I was talking to a colleague of mine saying this Hon. Minister is so good that he is the only ZANU PF Minister who does not have a ZANU PF DNA –[HON. MEMBERS: Inaudible interjections.]- The importance of the step that has been taken by Hon. Minister is that these goods that we are talking about are basic necessities for Zimbabweans. The impact of taxing them is huge in terms of the cost of living of this nation. The impact that this would have especially on the small scale to medium enterprises would be huge which are the backbone of our economy currently.
However, I just want to seek clarification from the Hon. Minister, whether on meat and meat products, he includes also such products as kapenta fish. I come from Binga where our major source of income is fishing of kapenta so we want him to clarify whether kapenta is also within the bracket of those goods whose VAT has been set aside. Thank you.
HON. ENG. MUDZURI: Thank you Mr. Speaker Sir. I just want
to thank the Minister for his attitude. Honestly, if you listen to the people’s voices, then you are in a national leadership. Sometimes we do not listen and I just pray that the Minister keeps that spirit of listening to the concerns of the people.
Unfortunately for him, the economy is not improving. He wants to increase his tax base but the economy is not improving. Actually, if you look around Hon. Speaker, you will discover that there is a trend of people failing to pay rentals, even everything, they are failing to pay. So, I am not sure how we are going to jump start the economy and probably have some other sources of income. What we should try to do is to close anything that encourages corruption…
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Order, order, Hon. Vice President of the MDC, what I have said here was clarification not the debate but seeking clarification to what the Minister had said.
HON. ENG. MUDZURI: The Minister said if he can get other means of getting revenue and I am just saying the best means…..
THE TEMPORARY SPEAKER: He said he was going to
consult everyone, including this House. He did not mean now.
HON. ENG. MUDZURI: My final clarification is on meat and beef which type of beef or meat are we going to have concessions because there is tinned beef, raw beef and game meat.
HON. NDUNA: Thank you Mr. Speaker. I believe on the day he proposed that there be 15% to be added onto meat products, in particular because I am an owner of an abattoir, it happened immediately. Today, he has given this Ministerial Statement, it is my clarion call that this also happens immediately in terms of repealing that 15% VAT by retailers. Over and above that Hon. Minister, you have mentioned on issues to do with clutches and wheelchairs for people living with disabilities, it is also my clarion call that you also add on the zero rating those that were not there before, in particular Braille, equipment and some other model of clutches for people living with disabilities aware and cognisant of the fact that the budget increase did not occur for these people who are marginalised because of disabilities.
*HON. A. MNANGAGWA: Thank you Mr. Speaker. I thank the Minister of Finance and Economic Development for removing such taxes. We were failing to provide for our children and some children were now under nourished because we could not afford to buy nutritional foods. I thank you.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA) Thank you very much for
the contributions and for the clarifications sought. Hon. Sibanda, if the Statutory Instrument imposed VAT on fish and carpenter is fish, I am shelving it as per my statement. Hon. Mudzuri, thank you very much, this covers all types of beef. I cannot say off hand whether tinned beef is part of that. I doubt it, I think tinned beef should be different but all we are looking at is what did the instrument cover. Anything that was covered which was to take effect from 1st February, 2017 will now be shelved.
Hon. Nduna, I think I have to explain this VAT. As you know,
VAT is a transactional tax. It is charged at every level of value addition. In other words, if we take the example of a manufacturer, when the manufacturer sells to the wholesaler, he charges VAT. When the wholesaler sells to the retailer, the wholesaler charges VAT and when the retailer sells to the consumer, he charges VAT. This is why VAT is now the largest source of our revenue in terms of support to the budget revenues. It accounts for a very huge contribution to our revenue collection. Seconded, I think by Pay As you Earn. So, when we are looking for how to raise money, we are basically identifying those areas where there is a lot of economic activity.
A supermarket will fix its price, in the prices they do not include tax. You only know the tax when you get to the till. So, this issue about prices being increased, it is not seen in the shops but when you get to the till because of the VAT. If a retailer includes a VAT tax in the price, you can be sure that money is not coming to ZIMRA. It is getting into the coffers of the supermarket and that is not desirable.
I want to thank all of you who have contributed. Hon.
Mnangagwa, kwashiorkor had not come yet. It was only introduced on 1st February, 2017 and I think if you have not been buying meat, you cannot blame the tax. Mr. Speaker Sir, I thank Hon. Members and I hope that I have done justice to the clarification sought.
ANNOUNCEMENT BY THE TEMPORARY SPEAKER
NON-ADVERSE REPORT RECEIVED FROM THE PARLIAMENTARY LEGAL COMMITTEE.
THE TEMPORARY SPEAKER: I have to inform the House that
I have received a Non-Adverse Report from the Parliamentary Legal Committee on the Appropriation, (2017) Bill [H.B. 14,2016].
CONSIDERATION STAGE
APPROPRIATION BILL [H.B.14, 2016]
Schedule as amended, put and agreed to.
Bill, as amended, adopted.
Third Reading: With leave, forthwith.
Motion put and agreed to.
THIRD READING
APPROPRIATION BILL [H.B.14, 2016]
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker, I now move
that the Bill be now read a third time.
Motion put and agreed to.
Bill read the third time.
SECOND READING
ZEP – RE (MEMBERSHIP OF ZIMBABWE AND BRANCH OFFICE
AGREEMENT) BILL [H.B. 9, 2016]
Third Order read: Second Reading: ZEP – RE (Membership of Zimbabwe and Branch Office Agreement) Bill [H.B. 9, 2016].
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, it is my singular honour to move that the ZEP-RE (Membership of Zimbabwe and Branch Office Agreement) [H.B. 9. 2016] be read for a second time.
Mr. Speaker Sir, Honourable Members will recall that Zimbabwe is a shareholder of the PTA Reinsurance Company (ZEP-RE), an intergovernmental reinsurance company with a local branch office in Harare.
The Government, through my Ministry signed a Host Agreement with the PTA Reinsurance Company in June 2013 and that Host Agreement provides, among other things, that the Government of Zimbabwe shall grant certain privileges and immunities to the company, which privileges and immunities is a standard feature of such Host Agreements. Conferment of these privileges and immunities are consistent with the provisions of Article 40 of the Agreement establishing the Common Market for Eastern and Southern Africa.
It is upon that basis and in terms of Section 327 of the Constitution of Zimbabwe that the ZEP-RE Bill before you seeks to confer legal status to the PTA Reinsurance Company.
Benefits of ZEP-RE operations in Zimbabwe
The operations of ZEP-RE bring economic benefits that include, writing insurance business from the insurance market, improving the capacity of the local reinsurance business by bringing on the board strong shareholders as well as downstream economic benefits associated with insurance business.
A robust insurance sector for Zimbabwe will contribute to sustained economic growth and improved financial sector performance.
Growth and development of the insurance industry will in turn create more business for the ancillary service providers.
The operations of the reinsurance company in the country benefit the Government of Zimbabwe through a wider capital base for the subscription of prescribed assets.
Provisions of the Bill
Clause 4 of the Bill provides for the Minister’s powers in relation to the conferment of privileges and immunities upon the company, with Clause 4 (2) of the Bill allowing the Minister responsible for Finance to temporarily suspend the immunities and privileges conferred upon the employees of the company where it is in the public interest that such suspension be effected. Under the same provision, it is recognised that certain of the privileges and immunities cannot be conferred upon the company on a permanent basis and may therefore be granted for only a specified time period.
Article 2 of the First Schedule provides for the definition of the terms used in the Bill. Under this Article, “Host Agreement” means the Agreement between the Government of Zimbabwe and ZEP-RE (PTA)
Reinsurance ompany, and “Treaty” means the Treaty establishing the Common Market for Eastern and Southern Africa (COMESA).
Article 4 of the First Schedule provides for the treatment which will be extended to the offices and accommodation of members of the company. The Government has a duty to ensure that there are no unnecessary interruptions or intrusions which could have an adverse effect on the operations of the company nor the dignity of its employees.
Article 6 of the First Schedule provides that the company shall be entitled to operate foreign bank accounts pursuant to their business activities, provided that they acquire the required authorisations under the Exchange Control Regulations.
Article 8 of the First Schedule provides for the status to be accorded to the directors of the company as that of non-resident members of diplomatic missions and Article 9 further expounds on the privileges and immunities extended to other members of the company and the family members of those employees.
In terms of Article 10 (5) of the First Schedule, the interpretation of the privileges and immunities conferred upon members of the company are not to be construed to allow its employees to derive any personal benefit of any nature upon them. The privileges and immunities must be read within the broader context of achieving the objectives of the company.
Further, Article 10 (6) also provides that the Managing Director of the company may suspend the privileges and immunities entitled to an employee where it is in the interests of justice that this be done.
Finally Mr. Speaker Sir, in terms of Article 14, the Agreement, along with any entitlements arising there - from, shall terminate where the company relocates outside of Zimbabwe, or where both parties agree to terminate the Agreement. Mr. Speaker Sir, I now move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 8th February, 2017.
On the motion of the MNISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA), the House
adjourned at Seventeen Minutes to Six o’clock p.m.
PARLIAMENT OF ZIMBABWE
Tuesday, 7th February, 2017
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. SPEAKER in the Chair)
ANNOUNCEMENT BY THE HON. SPEAKER
INVITATION TO A NETWORKING DINNER FOR COTTON
GROWERS
THE HON. SPEAKER: I wish to inform the House that
Members of Parliament from cotton growing areas are invited by the Cotton Company of Zimbabwe to a networking dinner on Wednesday 15th February, 2017, at 1800 hours at the Rainbow Towers Hotel. Members interested in attending the dinner should confirm attendance with Mr. M. Godzongere, from the Public Relations Department, Office 516, Fifth Floor, South Wing at Pax House, not later than end of the day on Thursday 10th February, 2017.
MOTION
BUSINESS OF THE HOUSE
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I crave the indulgence of
the House to move that Order Number 1 of the day be stood over until Order Numbers 38, 2 and 3 have been disposed of in that order.
MOTION
THIRD REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON
THE FINDINGS BY THE AUDITOR GENERAL ON THE 2014
APPROPRIATION ACCOUNTS FOR THE MINISTRY OF FINANCE
AND ECONOMIC DEVELOPMENT
Thirty-eighth Order read: Adjourned debate on motion the Third
Report of the Public Accounts Committee on the findings by the Auditor General on the 2014 Appropriation Accounts for the Ministry of Finance and Economic Development and other Statements under its purview.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker, you have
raised directly with me and other line Ministries your concerns that we are not responding to reports submitted in this House by different Portfolio Committees. I want to assure you that during the first quarter of this year, I should have complied with all the reports that I have to respond to, raised concerning my Ministry. Administratively, we have been able to put our act together and we think that we can comply with that request.
I am standing to respond to the report by the Public Accounts Committee which was raised concerning my Ministry. I have done my response in a tabular form showing the concerns and recommendations of the Committee and the response I gave to that recommendation. The first concern raised is that:
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Issue of concern to the Committee’ concern |
Committee Recommendation |
Response |
1 |
The Public Finance Management System (PFMS) Audit Module not enabled |
Treasury should purchase the additional servers to allow the activation of the Audit Module within the system by |
The Treasury has purchased additional servers and the equipment was received on 28th January, 2017. The processing |
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in the new version of the SAP system (EHP7) |
30th September, 2016. |
capacity will be enhanced as soon as the new servers are functional. Government will have a parallel processing capacity installed in Bulawayo, which will ensure that we will have an effective Disaster Recovery Plan. Should the Harare servers fail, we will be able to switch immediately to the Bulawayo based server. As soon as the new servers are installed, i.e. by mid-February, 2017, the Audit Module will be enabled on the system |
2 |
Upload of expenditure by Ministry of Foreign Affairs in the SAP System after the 13th period of one month after the end of a financial year. |
Enforce the cut-off period in line with best practices. In this regard, the Ministry of Foreign Affairs should observe the 13th period cutoff deadline and close its books of accounts for the current year by 31st January, 2017. |
The Accountant General and the Director of Finance in the Ministry of Foreign Affairs are working on this and they are confident that this issue will have been resolved by 31st December, 2017. Once that has been done, the Accountant General expects to produce a Treasury Minute that will be submitted to the House. |
3 |
Failure by the PFMS System to display asset register for the Ministries of Finance and Economic Development, Information Communication Technology, Postal and Courier Services and Foreign Affairs. |
1. Training on maintenance of asset registers across Ministries by 30 September, 2016. 2. Accounting Officers should closely monitor this area and ensure asset registers are checked for completeness and accuracy by 31st January every year. |
The installation of new servers and the related increased processing capacity will allow for a complete set of Asset Registers to be installed and maintained in the 2017 Financial year. The system has been designed so as to ensure that there is: a. A composite Government Assets Register maintained by the Treasury and b. Individual Assets Registers maintained by each Ministry c. In addition once the system is fully functional, the Accountant General’s team will provide training support to all line |
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Ministries. The training will cover a. Assets requisition and procurement b. Upload of existing assets c. Depreciation policies and processes d. An understanding of the circumstances that should lead to Board of Survey Procedures. |
4. |
Variance observed between the 2013 returns submitted by line Ministries and those by Treasury as well as balances in the SAP system |
Training should be undertaken by the first half of 2016 to avoid recurrences in the next round of audits. |
Treasury has provided training on the production of annual returns and the incidence of inaccurate returns produced by the Ministry has declined. This training, however, remains an ongoing exercise as new problems are identified and new officers are recruited to the relevant grades. The training will therefore be ongoing but there has been noticeable improvement in the quality of returns produced for the 2015 financial year. |
5. |
Direct payments to service providers |
Treasury must formulate procedures for handling direct payments to facilitate proper and systematic capturing of such transactions and curb recurrences of the audit observation in future. This should be done by 30th September, 2016. |
Formal instructions have now been issued under Treasury Circular Number 3 of 2016 covering the issue of direct payments. The Circular was issued on 15th April, 2016. |
6. |
Misappropriation of funds |
i. Treasury to come up with a risk management framework by 30th September, 2016, which will allow close monitoring of high risk areas |
Treasury managed to carry out training of staff in the identification, assessment and prioritization of risks. Treasury is now in the process of engaging a |
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and curb losses through fraudulent activities.
ii. Given the central role played by the Accountant General’s office, the Civil Service Commission should by 30th September, 2016, fill in the critical vacancies occasioned by this incident. The staff is critical in ensuring that audit recommendations across line Ministries, parastatals and local authorities are acted upon. |
consultant to help in coming up with a draft risk management framework. The consultant will be engaged by the end of April, 2017 as funding has been secured for that purpose.
Ten additional positions in the Accountant General’s office were exempted from the Public Service freeze during the fourth quarter of 2016. Interviews have been carried out and the 10 officers are expected to be in post on 1st February, 2017. The positions are expected to be filled by 1st March, 2017.
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7. |
Failure to review Treasury Instructions after the introduction of the multi-currency system. |
New regulations should be operational by 30th June, 2016 as the Ministry indicated. |
A draft set of Public Finance Management Regulations and Treasury Instructions will be submitted to the Auditor General in February, 2017. Both documents could not be finalised by 30th June, 2016 for different reasons. On Treasury instructions, when the Accountant General reviewed the draft, he established that there was a gap in the provisions, with respect to guidance on dealing with epayments. As we moved as a country towards payments, it became clear that we needed to develop a new set of rules and controls. On the Public Finance Management Regulations, the World Bank kindly offered the |
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Government of Zimbabwe technical support in the form of a senior Finance Advisor. Unfortunately, the advisor was only available in November, 2016. |
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8. |
Failure to revalue Government assets from the Zimbabwean dollar to the United States dollar. |
Treasury should by 30th September, 2016, provide guidance to fund managers to enable them to revalue noncurrent assets that were in Zimbabwe dollar currency. |
While the Committee recommends that these assets be revalued, I have taken a different approach. As an accurate record of each asset is available and these assets have been in operation for eight or more years, I have retained these assets in the assets registers at a nominal value of one dollar. As these assets are disposed of, a Board of Survey is established. Included among the responsibilities of Boards of Survey is the determination of current market value and the most appropriate disposal method. I have taken this view given the high cost of asset valuation. In some instances, assets valuation costs would exceed the respective asset value. |
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9. |
Non-disclosure of and incomplete accounting records for Public Financial Assets |
The PFMS should be configured to capture all payments made for equity and lending by 30th September, 2016. The PFMS should be configured by 30th September, 2016, to capture take-on balances, loans, investments, recoveries and adjustments to ensure proper accountability of public financial assets. |
The PFMS has been configured to take-on all Public Financial Assets records and I am confident that the 2016 audit will confirm this position. A new consolidated Public Financial Assets Register is now available and is maintained up to date. All equity and lending payments are now made through the system as recommended by the Committee. We are working on ensuring that, for 2017, all reconciliations will be effected on a monthly basis. |
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11 |
Opening take on balances which did not agree with closing balances. |
1. All payments for equity and lending must, with immediate effect, be made through the system and line Ministries should be advised of payments done through |
A public finance assets register has been established and will be maintained up to date. Payments made on behalf of any Ministry are |
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IDBZ to enable them to record such loans.
2. Ministry of Finance and Economic Development should speed up the process of compiling a new consolidated register for public financial assets and ensure that its available by the end of 2016 and going forward, ensure that reconciliations by line Ministries are timeously carried out. |
communicated to the line Ministries so that the line Ministries records are accurate. |
12 |
Variances between the balances reflected on the returns from line Ministries and those from Treasury rendering Statement on Public Financial Assets unreliable. |
Ministry of Finance should instruct line Ministries to ensure that all State enterprises provide up to date returns to their parent Ministries by 31st January, 2017. |
Considerable work has gone into ensuring that State enterprises bring their accounting records up to date. Unfortunately, some State enterprises are still lagging behind and have failed to produce timely returns as well as audited financial statements. At this moment, some State enterprises are still playing catch up in bringing their records up to date. Attached is a list of SEPs which have submitted the 2015 audited financial statements. |
13 |
Revenue Collection and Debt Recovery: Farmers’ World debt worth $11 833 433. |
Government must institute measures to recover the debt from either Farmers’ World or from beneficiaries of farm machinery and implements. Treasury should by 30 September, 2016, explain fully to the Committee why Farmers’ World was advanced the latter loan reported in 2014 when it was failing to pay back the initial loan and also report on progress made towards recovery of the debt. |
I agree with the Committee’s recommendation that “public resources cannot be used to meet obligations of a private nature”. Considerable effort has gone into tracing the debtor, Farmers’World and I am advised that the debtor has not only been located but that it has been established that Farmers’ World is recovering money from those to whom they provided equipment. Treasury has written to the Ministry of Agriculture., |
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Mechanisation and Irrigation Development in order to institute debt recovery arrangements. This remains work in progress but is something that I keep in view.
Farmers’ World has two separate loans as follows:- • A loan that was granted by the Treasury under the National Development Fund; and • A loan that the Treasury inherited from the Reserve Bank. When it became clear that we would not be able to access additional Chinese funding, we paid off this loan and thus Farmers’ World became our debtor. |
14 |
Variances in National Development Fund 2013 Accounts receivable figures. |
The Ministry, by 30 September, 2016, should put in place measures to avoid the co-mingling of the NDF and PSIP funds. |
Treasury has put in place measures to ensure that there will be no co-mingling of NDF and PSIP funds. |
15 |
Non-recovery of outstanding project loans disbursed through IBDZ. |
1. Treasury should by 30 September, 2016 provide an explanation to the Committee why it was maintaining IDBZ given its perennial financial woes.
2. Government should with immediate effect, stop lending funds to non-performing entities. |
Government has no intention of dissolving IDBZ and has in fact recapitalised the Bank. The bank’s financial performance is expected to improve significantly in 2017 and should be in a position to report a profit in 2017. The House needs to know that we hired a former Deputy President of the African Development Bank to head this bank and there are discernable improvements in the manner and in the way that it is now performing.
The recommendations have been noted and Government will in future carry out due |
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3. Government should with immediate effect institute recoveries from entities such as ZINARA since it was collecting a lot of revenue.
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diligence on the institutions to be supported. However, some of these entities are Government linked and strategic in nature. Under the Public Sector Reform Initiative, we are working on improving the performance of State enterprises, parastatals and local authorities. Among the improvements, is a draft Governance Bill that will be presented to this House soon.
Recommendation noted, Government will schedule meetings with the institutions that have prospects of repaying the funds and request for payment plans with a view to clear the outstanding support extended. |
16 |
Non provision of information on the Zimbabwe Economic Trade Revival Facility (ZETREF) |
Minister of Finance should provide a full report on the status of the facility to the Committee by 30 September, 2016. |
When the Zimbabwe Economic Trade Revival Facility was established by Government, the proper documentation procedures may not have been followed. My officers have engaged the relevant bank to try and obtain the original agreement with limited success. We look to resolve this issue by March 31, 2017. |
17 |
Outstanding Farmers’ World debt |
Government should with immediate effect, institute recoveries of the debt from either Farmers’ World or the agricultural machinery |
See 13 above |
18. |
The Committee with concern that the Fund like other funds in line Ministries, had been prone to abuse, hence there was need for better control and supervision |
Going forward, all those found to violate Fund resources should be penalized in terms of Section 91 of the Public Finance Management Act. |
As indicated in my Budget speech, Fund Accounts shall only be used for the purposes specified in the Blue Book and there shall be no variations without Treasury Authority. Failure to comply |
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by accounting officers. |
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will be dealt with in terms of Section 91 of the Public Finance Management Act. |
19. |
Inadequate security for housing loans disbursed to senior officers. |
Ministry of Finance should examine the functions of the Fund from a governance point of view in that the Committee noted that it was inappropriate for the fund to be administered by potential beneficiaries. The Ministry should provide an explanation by 30 September, 2016. |
The Committee’s comments have been noted and a set of Accounting Officers’ Instructions have been issued that direct the Fund Manager to adhere to proper Governance Procedures including ensuring that: - All loans are supported by adequate security; - No single officer shall be issued more than one loan; and - All loans will be issued with on the prescribed limits. |
20. |
SERA failure to renew contract of employment |
The Ministry should fully justify the continued existence of SERA by 30 September, 2016. |
I note that the Committee questions the relevance of SERA. For the record, SERA has been supportive of the reform process as a technical advisor and cannot, in all fairness be blamed for lack of progress in the implementation of Government decisions. You may be aware that we are working on a Governance Bill that will soon be submitted to the House for consideration. In addition to work carried out by SERA in the crafting of the Bill, I am satisfied that their inputs on Turnaround Strategies and Developing Performance Measure have been invaluable to Government. |
In conclusion, I want to thank the work that the Public Accounts Committee has put into this matter. I think that it is very clear; they raised very pertinent issues and I think that I have done my best to respond to each of those pertinent issues. As I pointed out earlier, I think that I will be in a position to fulfill all the requests for replies and responses by end of March this year.
HON. MPARIWA: Thank you Hon. Speaker. Through you Mr.
Speaker Sir, let me begin by thanking the Hon. Minister of Finance and Economic Development, Hon. Chinamasa for the response. Indeed, I am humbled that at least some movements are being done as reflected in the response by the Minister. I hope and trust that as we do our oversight role, we will be able to be getting responses from the Executive because it is our responsibility to carry out oversight over the actions of the Executive. Hon. Speaker, may I also appeal that the
Ministers that are not here who also have received reports from the
Public Accounts Committee, do the same like the Hon. Minister who is responsible for national purse of the country has done. He allocates resources to the various departments of Government and really I want to thank him. Indeed, this actually promotes parliamentary democracy and good governance and team work will never fail.
Let me end by a quote from the Bible Hon. Speaker…
HON. CHAMISA: On a point of order Hon. Speaker. This is a very important development in the processes of Parliament and I was going to seek your indulgence. You may know that in terms of the rules, once the Chairperson of the Committee articulates the response that closes the avenue for other members just to add views. So, I was going to seek that through your indulgence Hon. Speaker, if you may allow Members who may want to just sink their teeth in this very important response from the Minister; then we have the Chairperson to conclude, that will help us. If that is okay with you, we would really appreciate. I for one do not want to debate, but I just feel that there are others who may want to just respond to this one, because there is nothing that stops us from appreciating…
Hon. Chamisa was asked to approach the Chair.
HON. CHAMISA: I have since heard what you have said Hon.
Speaker; you make a lot of sense that we delayed a bit.
THE HON. SPEAKER: What I have said makes some sense. I
make a lot of sense. There is a big difference.
HON. CHAMISA: Thank you Hon. Speaker. In fact I was
hesitant to give you all the due credit.
THE HON. SPEAKER: No, no.
HON. CHAMISA: Thank you. What you said makes sense and we oblige Hon. Speaker. I hear you and I think I will not persist. – [AN
HON. MEMBER: Inaudible interjections.] -
HON. ZINDI: On a point of order Hon. Speaker. We are not privy to what Hon. Chamisa is referring as what you have said makes a lot of sense and you also responded Hon. Speaker – I have made a lot of sense – [Laughter.] – What is it that I have made a lot of sense out of that, we want to know.
THE HON. SPEAKER: Order, order. Hon. Zindi, I hear you. I think Hon. Chamisa was going to explain the sense. Allow him to wind up.
HON. CHAMISA: Thank you Hon. Speaker. Let me share with the House the sense that we got from our esteemed Hon. Speaker. As you know, we had requested that we would have Hon. Members also making commendation and appreciating the good work by the Minister of Finance because it is not often that we have Ministers making their diligent effort to come to Parliament to appreciate the role of
Parliamentarians and Portfolio Committees – [HON. MEMBERS: Hear, hear.] – so we wanted to appreciate that. However, the Speaker indicated that the problem is that we were a bit late in responding before the Chairperson of the Portfolio Committee took the stand. The problem now is that if we were to have Hon. Members of Parliament debating, the Hon. Minister will not be able to respond to our input unless if we have made prior arrangements. I think it does make good sense. That is what was explained. On that score, we ask our Chairperson to make the necessary submissions.
HON. MPARIWA: Thank you Hon. Speaker. Let me just appeal to the other Ministers who have not responded to Committee reports and recommendations to do the same like what the Hon. Minister of Finance and Economic Development has done. I think that will also address the concern from my colleague Hon. Zindi. It is very relevant and pertinent that Ministers should come and respond to questions and reports recommendations.
Finally, let me end by quoting the Bible Hon. Speaker, which is
James 2:17, “Faith without action is dead.” Hon. Speaker, I mean that the Hon. Minister has made a lot of commitments in other areas in terms of responses, but without implementation, we will remain with the same problems as observed in the report of the Auditor- General.
With these remarks Hon. Speaker, I move that the report be adopted.
Motion that the Third Report of the Public Accounts Committee on the findings by the Auditor General on the 2014 Appropriation Accounts for the Ministry of Finance and Economic Development and other Statements under its purview, put and agreed to.
SECOND READING
PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS
BILL [H.B. 5, 2016]
Second Order read: Adjourned debate on motion on the Second Reading of the Public Procurement and Disposal of Public Assets Bill, (H.B.5, 2016).
HON. CHAPFIKA: Thank you Mr. Speaker Sir. I rise to present the report of the Portfolio on Finance and Economic Development on Public Procurement and Disposal of Public Assets Bill.
1.1 Introduction
The Public Procurement and Disposal of Public Assets Bill, (H. B.
5, 2016) was gazetted on 17 November 2016. This Bill repeals the Procurement Act [Chapter 22: 14]. The Bill is a welcome development given the challenges the country continuously face with the existing Act under which the State Procurement Board conducted procurement on behalf of government entities. Some of the challenges relate to delayed procurement of goods and services owing to the centralised nature of procurement, the alleged corruption which could have had a huge cost effect to the economy and consequently loss of faith in the process by both procuring entities and suppliers of goods and services.
1.1 The Committee believes that the Bill when implemented to the letter and spirit of its objectives, fairness, transparency and honesty will be achieved. The proposed changes are in line with global trends where equivalents of the State Procurement Board have been transformed into regulatory bodies while the procurement function has been decentralised to procuring entities.
1.2 The Committee commends the Office of the President and Cabinet for the extensive consultations conducted on the Bill with relevant stakeholders. Six Committees from the National Assembly and one from the Senate were consulted on two occasions in February and October 2016. These consultations afforded Parliamentarians an opportunity to input into the draft Bill before its gazetting. The Committee on Finance and Economic Development is, therefore, generally in support of the Bill save for few issues that require fine tuning before approval by Parliament.
1.3 The Committee in compliance with Section 141 of the Constitution relating to consultations with the public on Bills being considered by Parliament conducted public hearings from 29 November to 3rd
December 2016, in Gweru, Bulawayo, Gwanda, Lupane, Masvingo, Mutare, Marondera, Harare, Chinhoyi and Bindura. The majority of the people who were consulted and those who sent their inputs via email welcomed the Bill and suggested a few improvements which will be highlighted below.
2.0 Submissions Received from the Public
2.1 Application of the Act
2.1.1Members of the public commended the Bill for containing provisions that promote transparency and fairness. Whilst acknowledging that some procurement by Security departments needed to be kept secret, they recommended that strong mechanisms for oversight be put in place to ensure that nontransparent procurement is not open to abuse.
2.2 Statutory Tariffs
2.2.1Stakeholders raised concerns on Section 3 (4) relating to the application of the Act in relation to the provision of professional services and Part VIII relating to the procurement of consultancy services. They argued that the quality and cost based selection method would be detrimental to project delivery and proposed that the current method of gazetted scale of fees which is based on the value of works and is on a sliding scale be retained. They submitted that the quality and cost based selection method needs highly skilled clients and that the influence of price could be detrimental to quality of the service.
2.3Objectives of the Bill
- 1Members of the public welcomed the Bill and indicated that the proposal should be approved as it will address the challenges that were being faced associated with current procurement processes particularly, the perceived corrupt activities. The Bill was hailed as a piece of legislation that was comparable to world best practice especially with the procurement law in Tanzania.
2.4 Establishment of the Procurement Regulatory Authority of
Zimbabwe
2.4.1The proposed abolition of the State Procurement Board and the decentralisation of the procurement function to ministries, parastatals and local authorities under the supervision of the Procurement Regulatory Authority of Zimbabwe was well received by stakeholders. Members of the public noted that by decentralising procurement, procurement processes were likely to be conducted much faster than before. However, Government was called upon to ensure that the proposed Procurement Regulatory Authority has sufficient powers, independence and financial and human resources to effectively perform its role.
2.5Board of Authority
2.5.1Some members of the public proposed that the Board should consist of either eleven or thirteen Members as opposed to seven of
nine in the Bill. The rationale was for each of the country’s provinces to be represented thus ensuring consistency with section 18 of the Constitution relating to the principle of fair regional representation. They also proposed a reasonable percentage in terms of youth representation on the Board.
2.6Procurement Preparation
2.6.1Members of the public submitted that the requirement in Section 20 that procuring entities have adequate funds for the proposed works is laudable as it will ensure the sustainability of the construction industry in Zimbabwe. It was submitted that most of the consultants and contractors were being crippled by doing work for clients that do not pay for work done.
2.7Domestic Preference
2.7.1Some stakeholders welcomed the provisions of Section 29 which allow for a preference to Zimbabwean local suppliers and manufacturers in accordance with the Indigenisation and Economic Empowerment Act. They, however, argued that the provision was discriminatory against Zimbabweans who do not fall under the
definition of Indigenous and is open to constitutional challenge. They proposed an amendment that would reflect domestic preference to Zimbabwe citizens instead, as is the case with the
Tanzanian Public Procurement Act.
3.0 Committee’s Observations and Recommendations
3.1 To ensure regional representation on the Board, the Committee recommends that the number of Board Members be revised to eleven in order to cater for a representative from each province and the eleventh Member being the Chairperson of the Board.
3.2 Treasury should ensure that the Authority is adequately resourced to enable it to execute its mandate effectively.
4.0Conclusion
4.1 The Committee was pleased with the Bill and recommends it to the
House for adoption with those few recommendations.
HON. CROSS: Thank you Mr. Speaker Sir. I want to endorse the views of the Committee and just emphasise one or two points which the Committee raised for the benefit of the Minister. The first is the question of the provision of services of a professional nature by engineers, architects and accountants when they are providing services to clients. At the moment, the Bill provides for these to be tendered in the same way as other goods and services. Your Committee had representation from the professions saying that they do not think that this was a good idea. The present practice of each individual professional association publishing their fees and then seeking to win jobs on the basis of the quality of the services they can provide is in fact a better solution and the Committee strongly agreed with this recommendation. So, we would like to see that particular element attended to…
THE HON. SPEAKER: Hon. Matambanadzo and the other two
there, please listen. Thank you.
HON. CROSS: The second thing I want to emphasis for the
Minister’s consideration is the issue of the number of board members and the need to have representation from each province in the country. When the board sits to consider its oversight function of procurement activities within provinces, local knowledge and information is going to be critical. I believe that by having one representative from each province on the board will enable those members to in fact represent their provinces and report back to the board the information they are receiving regarding procurement activity by local authorities and other state enterprises within their provinces. I think this is going to be critical to the efficient function of the oversight responsibilities of the board.
Thank you.
HON. NDUNA: Thank you Mr. Speaker for giving me the opportunity to add my voice – [HON. MEMBERS: Inaudible
interjections.]-
THE HON. SPEAKER: Order, order! The chorus for the diesel is over now – [Laughter.]-
HON. MARIDADI: On a point of order! When Hon. Mkupe
walked in, I heard the murmurs of diesel, fuel and water. Well, I do not know what that means but I would like to welcome him and wish him well for the reminder of the day – [Laughter.] - Thank you.
HON. NDUNA: Thank you Mr. Speaker for allowing me to add
my voice. I want to applaud the Minister for bringing this Bill of Public Procurement and Disposal of Public Assets. Mr. Speaker Sir, it actually gets me elated in that it brings a sense of independence and also a board that can oversee on a procurement or entity or Committee.
Now, therefore, Mr. Speaker, one would want to now look at and interrogate the credentials of the procurement Committee and compositions of all those that are disintegrated. For instance in councils, where I come from, where you would want a Committee to be composed of people who in themselves have no history of land misappropriation; who themselves have no history of disposing of houses for the citizenry in a manner that is not formal or that is not mainstream. In the same way that I would also call for representation to also come from all the provinces, up from nine members to what the Committee Chair alludes and accedes to of 11 members; I strongly feel that those credentials should be interrogated and the members found wanting and those that are a delinquent modus operandi and those that have a history that is checkered with misappropriating land and houses should not be involved in procurement Committees at council levels.
I also want to add my voice as has been alluded to by Hon. Cross in that we have Engineers Council Zimbabwe and Zimbabwe Institute of Engineers, which two bodies are established by an Act of Parliament, separately. They require about 5% of any infrastructure development monies so that they can have clear and good oversight in the operations of any infrastructure development in Zimbabwe. You will see that we have had the plant to Mutare highway, where our Zimbabwe Institute of Engineers and Engineers Council of Zimbabwe had little or no participation whatsoever because they were hamstrung in that they 5% that is supposed to accrue to them never got to them for them to effectively and efficiently carry their oversight and mandate. I call and I make a clarion call that this 5% starts accruing to them as enunciated in the Act that establishes them, so that they carry effectively their oversight role beginning with the Beitbridge-Chirundu highway, where I believe 5% of US$984 million on the Beitbridge-Harare highway would be about US$10 million. Then they can effectively carryout their oversight role, if they are capacitated in that manner. With those few words, I want to thank you for giving me this opportunity. I support this Bill in its entirety. I wish and hope that it has a good lifespan.
HON. MISIHAIRABWI-MUSHONGA: Thank you Mr.
Speaker. I stand to also add my voice to the report by the Committee. I think it raises fundamental issues around the issue of procurement.
Firstly, I would like to thank the Minister for bringing that whole aspect. Particularly, as we begin to look at our economy and considering the things that we can do in trying to save money. The area around procurement….
Hon. Ministers Made and Chinamasa making noise.
It will be nice Hon. Minister Made and Minister Chinamasa to listen a bit. Thank you. I am sorry, Mr. Speaker, it was not meant to be like that. My apologies before you reprimand me.
Mr. Speaker Sir, the area around procurement is one area in which leakages take place. Those people that have done analysis around issues of procurement will find that even as Government procures things like pens, you lose a lot of money if you calculate the number of pens that you buy for a Government Ministry, if you are not able to save 2 cents from it. This is where most of the corruption takes place and I am not sure how the Bill is going to address this.
One of the biggest problems that we have had with procurement in this country has to do with the issue around the State Procurement Board then, which was asking for vendor numbers. What it meant is that it did not matter that if you did an analysis in your Ministry and found that you could buy a ballpoint pen at 10 cents, if you do not have somebody who is going to supply you, who has a vendor number, you are forced to buy the same ballpoint pen at 15 cents.
Also, the issue of allocating vendor numbers had itself become an area of corruption because you needed to know somebody in this State
Procurement Board who would then provide you with a vendor number – [HON. MEMBERS: Hear, hear.] – Unfortunately, the vendor number means absolutely nothing. When you get a vendor number, no one has done due diligence to say we are giving Priscilla a vendor number for purposes of her providing sanitary wear, for example, my favourite subject.
You were basically given a vendor number for anything. So, the moment you have a vendor number, you have a vendor number of providing from vehicles to an aircraft down to a ballpoint pen. That in itself becomes an area that is problematic, particularly if we are beginning to live in an area where we are dealing with the latest methods around ICT. Most of the countries, to be able deal with issues of corruption, have now moved into what they call E-procurement.
What happens is you do not have to see the face of the individual. There is no negotiation. You flight a tender, somebody goes on and puts in the things that they are able to provide. So, the basis is made on the selection. You do not even need somebody who now sits and says what has come in. You set up a system that in itself automatically selects the particular person who is the best supplier. So, I view the issues about having board members to provide oversight but in terms of where we have moved in terms of technology, you actually do not need human beings, to be able to do that because they have noticed that in the area of procurement, the moment you put it in the hands of human beings, they can be subjective and are open to issues of corruption.
I am bringing this so that as we begin to debate the issues around procurement, we are discussing it in the context where the world has gone to. It is only here where you are told this road cannot be fixed because we are still waiting for the board to meet, so that they can discuss and they can then give a tender to someone. In other countries, it is a matter of 24 hours, it is put out there, people feed in and the system produces for you who the best person is.
I am however, not necessarily saying the issue that is being suggested about making sure that you have provincial representation is wrong. As you know Mr. Speaker, one of my favourite subject is the issue around devolution and the issues around representation. So, I agree but I do not want us to then address it in a manner where we are saying this particular individual who is representing the province will be able to deal with the issues that are to do with whether local people get preference. I am going to be bringing a motion in the next week or two. I have had problems trying to get information around it but to explain to you what this is all about; we have a major problem around issues of procurement. When people decide on whom to give a tender or to give a job, there is no local preference at all.
Let me give you one example, the Gwanda solar thing that happened was given to Wicknell Chivhayo. What was even worse around that particular tender is that he did not pay any particular deposit. There was nothing, he did not come with anything from the bank. So, any group in Gwanda could have gone to the Ministry of Energy and Power Development and said we want to be part of this solar programme because if it did not have to come up with specific funds, it did not matter who had money or not. However, my first problem is that when you are going to do something in a community, common sense says you want to find out whether the people in that community are able to provide that service or not. It makes absolutely no sense and I speak as somebody who represents the other side of the country. Most of the big tenders we have in this country, you are unable to find one tender which you can point at that has been given to someone from the Southern region. I do not understand whether that is because somebody is saying, all the people that are coming from Matabeleland are so daft that they are unable to get into the economic business of this country. There is something that is fundamentally wrong. It is so bad Mr. Speaker that you can even find local authorities in Matabeleland coming to give business to people who are in Harare. In most of those instances, they are cheated because no one knows where this person is coming from and they can lie that they have an office in here …
HON. MUPFUMI: On a point of order Mr. Speaker. She is trying to bring division between the people from Matabeleland and the Shona people. Let her discuss issues which are pertinent to what we are discussing.
HON. MISIHAIRABWI-MUSHONGA: I will just breathe and
decide that I do not engage in mediocrity, so I will leave it as it is.
THE HON. SPEAKER: Order, I have not ruled on the point of order. I want to draw the attention of the Hon. Member who talked about division between Shonas and Ndebeles. Your attention is drawn to Article 13 of the Constitution which is very clear. It says “bring about balanced development of different areas of Zimbabwe, in particular” –
[HON. MEMBERS: Hear, hear.]- “a proper balance in the development of rural and urban areas.” There is no mention of tribes here. In any case, you find Shonas in Matabeleland in as much as you find Ndebele speaking people in Matabeleland. So, there is no issue of division here.
It is a constitutional right.
HON. MISIHAIRABWI-MUSHONGA: Thank you Mr.
Speaker, I feel like jumping on top of the table but I will not do that. What I am coming back to, is that whole issue. First and foremost, I am glad that the report of the Committee did speak to the issues around domestic preference. So, I know I am buttressing the point that they raised. So, probably we may need within the Act, to create a proper and clear provision that there will be a particular preference. I am sure it would not be new to the way we do things. The whole basis of indigenous and gender preference is that you are acknowledging that you want to empower a particular group. So, if you say you will do a local preference to allow that if there are particular tenders that are in a particular area, you will call upon those that are in that community to do so. I am sure we can find a proviso that can clearly define that. Usually, if something is not put down clearly, people usually avoid doing these things because there is no legal framework for them to enforce implementation. So, I would be calling upon the Minister to look at how best that issue around local domestic preference can be dealt with, in particular around issues of tenders.
In the same light, I want to bring in the issue of gender preference. Again, in the same light, given the state of our economy right now, most of the resources and business that people are engaged are centred within Government and Government tenders. However, what we are finding is that you do not necessarily see women being given preference. I will give you an example of Kenya, which came up with a statutory instrument that gave gender preference to women. For every tender, 30% should be given to women. This has increased the level of economic empowerment for women in a manner that they tried to do in so many things. Let me give you an example; you want to create materials for hospital bed sheets in Bulawayo. What Mpilo is called upon to do is, if they are going to be buying bed sheets that cost $100,000, 30% of those bed sheets should be given to women coming from that particular community. The amount of resources that would come from Government and fall on women within those communities is amazing.
In conclusion Mr. Speaker, the one area I hope procurement will be able to look at is where people are making a lot of money, which is in the area of debt collection. You will notice that particularly with those that run legal firms. A person will be given the right to be the debt collector of a whole Ministry. I have one such person and I will bring it to the House when I bring my motion. This particular law firm covers the entire Zimbabwe. So, they got a tender to be the debt collector for the entire Ministry of Health. This particular lawyer does not have to do any work anymore. He does not have to go to court but can literally live on debt collection. They have a small office at Harare hospital, Parirenyatwa and Mpilo hospital. For every amount that they collect, they are given a particular percentage ranging between 5%-10%. All they are doing is simply to write letters to the debtors. What really upsets me – and this is true of ZESA which also has one particular lawyer who is doing that. I am still trying to find out what is happening with Wellcash in Harare because they are unable to give me the specific person whom they have given to do Harare City Council. However, what disappoints me Mr. Speaker is, why do you think that there are no lawyers in Bulawayo to do debt collection for Mpilo Hospital. Why do you have to get a lawyer who is coming from Harare to go and do debt collection at Mpilo? – [HON. MEMBERS: Hear, hear.] – Why do you think there are no lawyers in Masvingo who can be given the job to do debt collection for the hospitals in Masvingo? Why does that person have to be coming from Harare?
I think the whole issue around procurement Mr. Speaker, forces us to look at the whole issue around devolution; the whole issue of making sure that communities participate. We do not want to lie to each other. The issue around procurement is where money is made. Anything else can fall apart but Government will always need something. So, those that had found themselves in a Government space are the ones that are now making money. If you are not in that area which becomes a cabal controlled by a few, you will remain poor when everybody is paying tax. This is because procurement that we are doing is out of the tax that everyone of us are paying but benefits a small cabal who have buses in every other area. I thank you Mr. Speaker Sir.
HON. CHAKONA: Thank you very much Mr. Speaker. I also
want to add my voice to the subject matter of discussion. First of all, I want to highlight that the current status quo was very good at delaying projects. I would like to say that the process of just procurement would take no less than a year in State enterprises. Also, it was subject to legal challenges and so on. I hope and trust that the current Bill is going to address the issue of challenges around the person who would have been awarded the tender.
Mr. Speaker, there is need to also protect State enterprises that were incorporated for specific and special mandates. Let me give you an example. There is a company called ZESA Enterprises, which was incorporated by ZESA Holdings. That organisation was incorporated specifically to manufacture transformers, switch gears and other consumables that ZETDC uses. It is disturbing that whilst this organisation is there and manufacturing these components on behalf of these State enterprises, still the State Procurement Board would require ZESA and its sister companies to go to tender. Ninety five percent of the cases, they would actually buy from other private companies, suffocating ZESA Enterprises.
This is synonymous with even the ICT industry, where we have got PowerTel and Zarnet. These organisations were incorporated to offer specific and specialized services to Government and its State enterprises but that is not happening. Government and these other State enterprises are buying their services from non-State enterprises and I think this again is suffocating Government. We want to see money circulating within Government coffers.
Mr. Speaker, there are technological changes worldwide and I think the new Bill is going to look at issues to do with timelines by which procurement has to be done. I want to give you an example. NetOne went to tender in 2011 for the upgrade of their network. That tender was only concluded in 2014. In 2011, in the ICT or telecommunications industry, there was 3G. By 2014, technology had already evolved to LTE. What it means is, by the time the tender is concluded, the organisation is buying old equipment and technology and it does not make sense. So, there is need to have a timeline or a turnaround for buying, especially technology related equipment and services.
Mr. Speaker, there are issues to do with requirements for organisations that tender. There is this new requirement of tax clearance certificate and I am glad the Minister of Finance and Economic Development is here. Any organisation would obtain a tax clearance certificate, irrespective of the fact that it complies or it does not. There are very minimal requirements for an organisation to qualify for a tax clearance certificate. This tax clearance has become meaningless. All the organisations that are participating, especially in State procurement tenders do not pay any tax to the Government. If they do, they just pay minimum for them to comply with tax requirements. I think it is imperative that tax audits be done on these organisations that are actually getting large tenders because Government is losing money. It is being charged tax and that tax is not coming back to Government.
Mr. Speaker, I want to emphasise the issue of e-Government as my colleague has debated. We have become a nation that is technologically averse. We do not want to embrace technology. I do not know why we are not computerizing Government departments and procurement systems in this nation. I want to give you an example. The Department of Immigration right now has got a computerized visa system. However, if you go to the department, each time they receive a computerized application, they go on to open a manual file, over and above a computerized system. They are duplicating efforts, so it is rather they revert to the manual system. This is synonymous with everywhere. Even if you go to the Ministry of Lands and Rural Resettlement, there are files almost everywhere. Why cannot we computerize? Why are we not doing that? It expedites application and whatever work that we are doing. It simplifies and shortens the time that we do work in this nation.
Mr. Speaker, I will not overemphasise the point that my colleague also made that we need to empower locals whenever there is a tender. Right now, there is the Beitbridge – Harare road and we need to empower the people of Matabeleland South, Masvingo and
Mashonaland East to participate in these tenders. Mr. Speaker, I want to thank you for this opportunity.
HON. SANSOLE: Thank you Mr. Speaker. I would just want to
add my voice to the debate in support of this Bill. I think a lot of emphasis has been placed on procurement. There is another aspect of the Bill which relates to disposal. The pitfalls associated with procurement, the delays associated with central procurement and the corruption that has been associated with the State Procurement Board have been adequately dealt with.
However, if we look at the disposal side of it, there are also benefits that accrue to local communities as far as disposal of assets is concerned. I know the previous speakers have spoken about empowerment as far as tenders are concerned but there is also empowerment that accrues to locals in the form of having access to assets that are disposed of by State enterprises, Government departments and local authorities. For instance, sometimes you have motor vehicles sold by local authorities and Government departments – even small things like tyres sold by CMED, these were sold through some central department in Harare. If disposal is done at local level, the locals also have an opportunity to be able to bid and purchase those assets. So, I would like to support the Bill in that respect. I thank you.
HON. MUDARIKWA: I need approach this debate from a
different dimension. Our procurement must be categorised in such a way that for example, we have manufacturing procurement. If we want say for example, trucks, that tender must indicate that it is only people who are registered with the Ministry of Industry and Trade who are known manufacturers of trucks who can then tender. We have a situation where vehicles are being procured outside Zimbabwe and yet we have the facilities in Zimbabwe for assembling the vehicles. We have some companies that have got employees who are waiting to do the work.
Most of the work pertaining to vehicles comes completed from outside Zimbabwe. On manufacturing procurement, there is no one who will sell coca cola less than Coca Cola itself. Why then do you want to get a third person to say there is a tender for doing this when we know that it is Schweppes that manufactures Mazoe? Those things must not be tendered for. It is known we want to support our local industry; we must just go and buy there.
We have a situation where people are calling themselves businessmen because they just go and facilitate, get a tender and then bring vehicles outside Zimbabwe. Some of the vehicles are not even suitable for Zimbabwean terrain. That creates a situation where we have massive unemployment in Zimbabwe because there are no spare parts for those vehicles. There are no garages with equipment to give a back up arrangement.
Turning to e-procurement, that is only possible when you have people who are willing to use the system because these days when banks do not want to give you money, they just say our systems are down. The same thing will happen when you introduce e-procurement, the Tender Board will say our systems our down, let us go manual. It is the element of people who want to steal, they always look for ways to move away from things that are transparent.
There is this issue of sealed envelopes. I remember tendering to a certain organisation and then they said bring in your documents in sealed envelopes. Under the cover of darkness someone can simply put your envelope over hot steam, opens it to see your amount and put the lowest figure and gets the tender. It is so simple and this is how Government departments are buying very expensive goods. Even if we are to ask
now, what is the cost of a shoe or jacket? Suits here in town cost $15 but suits for Government messengers go for $180. You can just see how things are and all this at the end of the day does not benefit out economy because those suits are even imported from other countries.
Another issue is community procurement, like what has been mentioned, how do you get people digging trenches from Harare to
Gweru. There are some local youth there who can dig. They are there. Digging to us is nothing new because we have got the hoes and shovels, so what is so special about getting one company coming all the way from Harare to dig trenches of data cables? In other situations cutting of grass…
Interruption of microphones due to systems failure.
THE TEMPORARY SPEAKER: What is happening? What is your problem Hon. Member?
HON. MUDARIKWA: Even as I am debating Mr. Speaker Sir,
the tender for this equipment was not designed for tall people like us.
This was meant for someone with a Chinese height. It was approved and now we struggle. I saw Hon. Dr. Made, when he was negotiating the other day, he was talking as if he was trying to fly. These microphones are not built for the needs of our people.
We must have tenders that are clear and meant for indigenous Zimbabweans. Local banks must support that tender. We can have a nation of economic spectators where people from other countries come in to make money whilst we are looking. That is unheard of. We are economic spectators day-in and day-out. With all the level of intelligence in this country, the education we have got, the STEM that has been initiated by Hon. Prof Moyo, we cannot fail to have people to manage these projects. It is important that certain tenders must indicate that this tender is for an indigenous Zimbabwean.
On economic empowerment, we must just say this tender is for women. There is no need to say 30%. It is a tender for women who constitute 52% of the population. They have a right to be looked after. They have a right to be given preference because they are 52% of the population. We also have the youth; they must be given the same facility. How do you have a tender for supplying vegetables given to me, a man when there are women who have tendered? Any tender for supplying vegetables should be given to women because they are good at that. Our economic development will be nothing when we only have rich men and poor women. It is unacceptable in this day and age. We must have women who are masters of their own destiny, who can say I have won this tender, it is my responsibility and I am able to support it and then we can support them.
Lastly, if you check the amount of money that is spent on tenders per year and the amount of money that is coming to local Zimbabweans, it is less than 10%. 90% is going to foreigners. Even in other situations where our people have the capacity to do it, that thing is not being possible. It is also important that one way or the other, our people must be protected. For example, when Zimbabwe was supplying beef to the EU, we were given a quota for EU and not a quota for Britain. There are certain things that we must say these things are for Zimbabweans. It is us here who make these laws and it is the same of our officers who implement these laws.
I want to thank you Mr. Speaker Sir for allowing me to contribute. As for the oversight role, the Committee chaired by Hon Chapfika must continuously interface with the Tender Board on how they doing, not to just wait for them; and after they have awarded a tender, we come here and start complaining when somebody is already dead and when all our youths are gone as most of them are now drug addicts because they have nothing to do. We have to do things that benefit our people. I want to thank you.
HON. D. SIBANDA: Thank you very much Hon. Speaker for
affording me this opportunity to also air my views on this interesting debate. Hon. Speaker, I expect that the Procurement Board should be independent – work independently from the three arms of the State. Also, when the board is being put in place, it should be approved by Parliament and there is need that on that board, if there are 10 members there should be 50/50 representation that is, five women and five men because that is what gender balance means. That is what we expect. When appointing the board, there is need for professionalism. Let us have people who are professionals, those who have the know-how of procurement so that there is less corruption on that board.
Mr. Speaker, on the issue of corruption, the Government should also put systems in place to try and cover up the loopholes in order to avoid corruption completely. Back home there, people expect that whatever is being sold at local level, 30% should be given to Government and 70% should go back to the locals – that is decentralisation of the resources. There is also a tendency of the Committee members of the Tender Board to be also bidding. When vehicles are being sold, they are also there bidding for those vehicles.
Mr. Speaker; we do not expect any one of them to be part of the bidding because that is corruption. Then, there is also need for adverts; they should be put well on time and people back home were also concerned and said sometimes we would not even be aware of what is happening – we just hear when the tender of the vehicles or whatever have been already sold. So when adverts are being done, there is need for them to also be done in vernacular so that everyone understands.
If the procurement is being done in Victoria Falls, it should also be advertised in Chitonga, Nambya or whatever language that is spoken there. If it is done in Bulawayo, we expect it to be done in Ndebele so that everybody, including the ordinary man on the street can understand that such a thing is happening. Thank you very much Mr. Speaker.
*HON. MAPIKI: Thank you Mr. Speaker. I thought I would just add my voice to the debate. I would want to believe that the manner in which the Bills crafted should benefit even the small to medium enterprises because the informal sector is now the backbone of the Zimbabwean economy. Glen View for instance, is now manufacturing chairs and so sofas. People even go to buy these products at a lower cost. They will have secured these tenders and then they come and put a mark-up which is four times. They would have passed the Standards Association test. We do not encourage the people that are in the small to medium enterprises who were supposed to receive 25% of
Government’s business. When you observe the people that are in that particular sector and what is in circulation, the study conducted by
FISCO says that $8 billion is in circulation in that sector of the industry. So, in light of that, Government whenever it thinks of floating tenders, it should encourage Zimbabwean companies to supply.
We even have parking meter attendants from South Africa – they are the ones that won the tender and when we do not give them such tenders, we mourn that they are not paying taxes. How will they be able to pay taxes when they are not receiving such lucrative tenders? I urge Hon. Chinamasa to look into the small to medium enterprises sector – they sell their door frames or doors at a low price and when they supply to someone who has won a tender, they are making a killing out of that. We should be working towards ensuring that our own companies get these tenders so that we benefit from the low costs.
I was looking at Mtshabezi Hospital in Matabeleland South; they came to procure a tender in Harare for the sale of wood for their ceiling but, there are expects in Matabeleland who can put up very good ceilings. They came here to look for Harare briefcase cases and the money that was paid for such tenders is misused when trying to track them. They fail to understand them because they do not even have phones.
The other culprits are local authorities – in the manner in which they win their tender. Why would someone want a tender for the supply of vegetables which normally cost 25 cents but, they give tenders to one who buys at $1. Why not simply benefit from this because a lot of corruption would then be involved. We should look at our upcoming business that are in the small to medium enterprises in conjunction with the Indian Government, there is a company called Indo-Zimbabwe and it shows that a lot of businesses do not have the same competence and they cannot supply the same goods as those that are being supplied by this particular company. More often than not, their good work is looked down upon or frowned upon. We should be encouraging it and not only the large corporates. We should at a paradigm shift like other countries are doing so that we should not have tar macadamised roads but have concrete roads. In this country we have engineers. We should have engineers who are doing their work and not those that are merely introduced in title only at rallies. Let us promote the local engineers in Zimbabwe rather than have expatriates.
I was looking at another job where tenders were being flighted for riverbed mining and a lot of foreigners landed these contracts whereas, it would have been easier for us to employ our own local indigenous people to do riverbed mining. We have experts in that particular field and they should be benefiting. Those that we give that come from outside the country come here and loot our mineral resource and run away. It is easy to remonstrate with a local person than would be the case with a foreigner.
I will come to motor vehicles that need to be supplied for instance, to Parliament. You will see that the tender would be awarded to someone who manufactures motor vehicles, but, why is my motor vehicle now being imported from Durban? Why should Zimbabwean people not be given a tender to supply motor vehicles from knocked down kits. If that were to be looked, it would assist us as a country and it will develop our economy. I thank you Mr. Speaker Sir.
*HON. MATAMBANADZO: Thank you Mr. Speaker Sir for
affording me this opportunity to add my views on to this debate. That is in line with the Bill on the Procurement Board. My opinion is that as we look into this legislation, we must put in place measures that ensure that Government does not suffer any losses. Once the Government suffers losses, all of us will be blamed for having failed. I want to believe that whenever there will be a tender, there will be a budget. Once the budget is done on what needs to be procured, for example, ZESA, a certain amount will be put aside for the purchase of transformers. For instance, if it is US$200 million, there should be a law in place to say that the supplier of the tender should not exceed US$200 million mark.
Secondly, the company that is awarded the tender should complete its work and paid a stipulated amount. We should not have a situation where a company with the lowest bid is awarded the tender and then they undercharge. For example, for a job worth US$200 million, the tender will be at US$100 million and then ways are crafted to defraud the Government. Upon using up the US$100, they will then request for US$50 million, subsequently followed by US80 million. By so doing, it will exceed the limit of the tender pegged at US$200 million.
Hon. Minister, it is your job because it is you who will be blamed and we are also indirectly blamed. I am saying that contractors should give a timeframe and they should not undercharge. Once there is undercharging and failure to complete the project at the stipulated time, the two parties to this contract, the contractor and the one who won the tender, should both be fired or measures should be taken to ensure that they are brought to book. We should come up with stringent measures and we should not continually mourn that a lot of money is being defrauded. We need to come up with stringent measures in the form of legislation.
If the tender is from Kwekwe, local people should be given first preference to the tender in question because they are not going to enjoy the benefits alone. If I am given a tender to repair roads in Kwekwe – if a local person is given that contract, they may have a bulldozer and a tipper and they may get other equipment from Harare. We are saying that there should be coordination in terms of equipment between a local person and an outsider so that they collaborate on the work given such tenders. This should be the law. I believe that is all I intend to contribute on that Bill. I thank you.
HON. J. TSHUMA: Thank you very much Mr. Speaker Sir. May I also add my voice on this very important matter. I will start by giving you a narration of what I saw happening in front of my eyes. In my
Constituency, Pelandaba Mpopoma, there is a big stadium called White City. That stadium was renovated, I think sometime in 2014. When it was being renovated, guess what happened, a contractor from Harare was given that job. When they came to Harare, what saddened me most was that, simple jobs were taken up by people from Harare at the expense of the youths who are in my Constituency, in Pelandaba, Minyela and Mpopoma. They could not find employment there. When the contractor came and did everything, which was substandard, he fled after our intervention and the few people who were contracted to go and work there, were not paid their money.
The problem is that for us to start following up on that person became difficult because he did not come from Bulawayo, he came from Harare. That was a very painful and saddening issue which is still pending to this day. I have got youths in Bulawayo who were not paid but worked for a contractor from Harare for a project in Bulawayo. That is where the problem is.
So, Mr. Speaker Sir, the reason why I am saying this Bill is very important is to make sure that we lock down these things, sonke sifuna ukukapula. Let the people in Bulawayo also kapula because they are also as human as anybody else. Once we go into this thing, let it be made clear that we shall not compromise on that because we end up looking like we do not – that is where even the question of marginalisation, this and that comes in. We will not be able to handle it in a proper manner because of simple things like this.
Mr. Speaker Sir, I want to say that, definitely, let us support this Bill and make sure that from now onwards, let the person who stay there enjoy the benefits of staying there by being given the opportunity from there. I will give you another typical example. I was also saddened when a tender came out at Mpilo Central Hospital and someone from Harare was given that tender. I was saying to myself, really, do they think that we are so abnormal or useless that we do not deserve to eat or partake this national cake? I hope that all these issues – [HON.
MEMBERS: Inaudible interjections] –
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Order, order. Hon. Members lower your whispers please, you are making a lot of noise. We cannot hear what the Hon. Member is trying to put across.
HON. J. TSHUMA: I think there are some people with that mentality, who think that if you start speaking about Matebeleland, you are being tribal, which is not the case. We are not being tribal, we are being factual. It is a fact that things have not been going well and need to be corrected. I am glad that this Bill speaks to all these truths and facts. Mr. Speaker Sir, all I am advocating for is that whilst we are here in this House, let us get things clear and straightened. This is not politics, it is business and when we talk of business, we are talking about survival. Talking of survival means the generation down the line stream. I hope that we will take this seriously, knowing that we are above politics. We are in an august House representing people. My people in Pelandaba Mpopoma Constituency suffered because of negligence of giving a tender to somebody from Harare which could have been done by someone in Bulawayo. I must say it, we will not take it lightly. I am glad that there is a Bill that seeks to address that kind of anomaly so that we all operate at the same level and sharing the national cake and everything is alright.
Mr. Speaker Sir, allow me to also bring your attention to the issue of the public asset disposal. I speak of this because I am aware that Government has properties like houses which were built a long time ago, even in the Rhodesian era, which are being used by teachers and others.
I hope that this Bill will also address that so that the people who have been living in those houses become the beneficiaries of these houses. Let us not have other people like Ministry Officials coming in to try and take away these houses from these people. I speak of this because I have an example of one teachers’ cottage in Pelandaba which has been there time immemorial. Now, because disposals are about to happen, other people are now eying to disperse the people who have been dwelling in those houses from time immemorial – that should not happen. Let us have the people that are in those houses being the first people offered to get those houses and when they get them, please I hope that the Bill will address the issue of how much they should be paying rentals. They have already been paying rentals for these houses for over 30 years now, so I hope that this Bill is going to also look into that issue so that we play fair with everybody feeling that they are part of this system because we are a Government of everyone. I hope that this Bill will address that.
With these few words Mr. Speaker Sir, I want to thank you for giving me this opportunity to air my view especially about Matabeleland but not in a tribal manner. We are not being tribal – in Matabeleland, we have got our fellow brothers who are from Mashonaland but now they are part of us. I can tell you about people like the Vurombos, vana Vera, vana Madzimbadondo, they are now part of us. When I say
Matabeleland, I am not saying Ndebeles but everybody who has interest in Matabeleland whether they are Shona, Kalanga, Tonga or Venda but we are from Matabeleland. I thank you.
HON. GABUZZA: I just want to raise a few points. Firstly, traditionally procurement has been always under the Office of the President and Cabinet. I think Mr. Speaker; let me hasten to warn that I think it is not a good idea if the Bill still wants the procurement to be still under OPC. Procurement itself has a lot of problems, abnormalities, a lot of favoritism, a lot of complaints. If we keep on continuously putting it under the Office of the President, in my respective view, I think it reduces the credibility of the office of the President, when we continuously see a lot of court cases, challenges, overhaul, what could have transpired and a lot of corruption. So, it is my respective view that in the next Bill we must consider finding a different home for this Procurement Board.
Secondly, Mr. Speaker, in Botswana you cannot employ anybody who is not a Mutswana. If you do that, you have to prove beyond reasonable doubt that you advertised three times for that particular job and you could not find a Mustwana. I think if we look at what is being proposed in the Bill, there is the issue of domestic. Domestic must mean domestic and not mean Zimbabwe, it think it must mean domestic. Charity begins at home as they say. When we do our procurement advertisement and processes, we must be able to categorise that whatever company is tendering or is about to procure some services, they must prove beyond reasonable doubt that within the district there was no company or companies that were able to tender and capable to supply a service. If there is that proof that they could not get, then we must move to a regional level within that province; then we open it up to the nation. By so doing, I think that question of equitable distribution can be fairly realised. If we just leave it to say domestic means Zimbabwean, it will be the same people and usually same criminals getting jobs and benefiting the same people and usually those who are highly connected and those who are able to pay a better bribe than the other smaller guys and those who have access to information.
I think the Bill must have stages or categories to say we start at district level, if we cannot get anyone, then we move on. Failure of which, maybe I would suggest our system categorises procurement in such a way that we say beyond a certain amount these are open to national tenders. Below a certain value, we do not open it to everyone but it is restricted to local areas. If we do that, I think there will be a mechanism of trying to benefit everyone especially at local level.
The other issue Mr. Speaker is the issue of the Procurement Board. I think from experience, if you put a static board, it normally faces challenges because tenders come in various forms, technicalities, one time you are tendering for the services of cricket carpets, the other time you are tendering for a motorized grader, the other time you are tendering for an aeroplane. I think within the board, there must be a leeway. That board must be flexible enough to say we have certain permanent members but once in a while they must be able to bring in certain skills which are not available when they are dealing with a particular matter. It is very important because in most cases you get people presiding over an issue that they do not have any knowledge or understanding about and eventually give the wrong person because the specifications were beyond their imaginations.
The issue about E-procurement, I think it is something that we must proud ourselves given that we are one of the most educated nations. Why should we still be using paper work? A good example is that we have a very brand new airport at Victoria Falls. I went there over the weekend, two aeroplanes came in, B.A and South African Airways at about 1200 hours but tourists started coming out after about 3 hours at 1500 hours because all the system was manual. To get a visa, the immigration had to write it physically, put an amount, no receipt given and clearly you could see it was meant for abusing the funds. Why would it take, when we need tourists so much and we need to do business so well, we have to take three hours to clear tourists? This is because we do things manually and everyone I think from those developed countries, really got shocked and asked why we have to struggle to write a visa by hand. It is the same thing with procurement. Let us go e-procurement – that is the modern and fast way of doing things. I think this cannot be over-emphasised. If it is possible, the Bill must clearly reflect that we must be moving towards achieving that. Having said that Mr. Speaker, I think I would wish to support the Bill and possibly propose amendments at the appropriate time.
HON. ZINDI: Thank you Hon. Speaker. I am just going to highlight a few areas because most of the things have already been said. I just want to mention that this is a State purse or State resources and everybody is looking at the State purse. When we are looking at the State purse, State is the highest spender and everybody is looking at that and internationally.
Therefore, when it is like that, I would like to emphasise the point that we need to make sure that the local people benefit as a result that most of this money have been raised within the state as well through taxes. It is our own money but it is money now being taken, which would end up benefiting foreigners. If we do not revisit the issue of having to support local people; for example, I always want to point this road, the Plumtree- Mutare resurfacing that is a South African company. Of course, I understand local people were part to that deal but it was not that easy for the local people to be part of that deal, Group Five. There was quite a fight in order for them to be recognised, though of course they also did a mediocre job but at least there were local people who got part of that deal.
Now what it means is, if we focus on foreigners, without also bringing the component of the local people, the money is then taken out of Zimbabwe, hence the situation we are facing to say that we no longer have enough money in circulation, in particular US$. United States dollar is a sought after currency world over. This is what we are using to transact business. Therefore, we are an attractive market internationally and everybody would like to come to Zimbabwe because they know they get the US$. Therefore, I am proposing Mr. Speaker and it may sound like repetition but I think it is important. Sometimes repetition is emphasis of an idea, that we go e-procurement, we categorise what should be local tenders for local people and that should not go international.
I am saying as well, when we get to the point of saying this is a tender to be flighted nationally or internationally, we have to look at the aspect of saying you do not have the local expertise in order to execute that kind of a job or a deal. That way, I think that will encourage circulation of money. It will also motivate our local people even to pay tax. As the Minister of Finance and Economic Development, last week he was complaining that Blacks have a culture of not wanting to pay tax. If they know that they have access to State procurement, State purse, they will be encouraged to be part and parcel of having to remit their taxes but if it is money that is taken by foreigners, sometimes they end up asking, why then should I contribute to the State purse?
I also want to give an example Mr. Speaker. The Black Economic Empowerment Policy in South Africa, was created particularly to support the local people. Therefore, pachivanhu tinoti gugara nhaka huona dzevamwe. If the South Africans are doing it and it has brought positive results, of course there is no system which does not have merits and demerits. It has its own merits and demerits but we need to look more on the issue of saying how many and how effective has that system been in South Africa. To a larger extent, it has been effective.
Therefore, there is nothing that can stop us as we amend this
Procurement Bill, to look into the aspect of considering the aspect of the
Black Economic Empowerment Policy that had been adopted in South
Africa; looking at the past, how we have been performing through the State Procurement Board.
Hon. Mudarikwa gave us an example of saying, tall people like us have to bend in order to reach this microphone because the tender perhaps was given to the Chinese and Chinese being short people, this is their good height. So, we have to adjust ourselves and sometimes end up with back pain because we need to adjust to the height of the Chinese which does not fit us. Really Mr. Speaker, I think when we have the Bill amended, it has to look into that aspect.
The other aspect I also want to raise is the fee that is demanded in order for a company or for one to participate in a flighted tender when you are to bid. Sometimes they raise it so high to the extent that the local people will not be able to participate. I think last time it was US$100. You pay that US$100, you access the papers, you are given that vendor number but no job will ever come through to you simply because you are not well connected but this is already US$100 that has gone. So, I think a revisit as well when we categorise international and local tenders, is to come up with a fee structure that suits the local people.
Finally, decentralisation, I think we need to emphasise on that. When this Bill is amended, it has to look on the aspect of saying whatever tender, let us look at that district, in that province and let us also look at the aspect of women and youths. It is important – yes Hon.
Mudarikwa said it but I think we need to emphasise it as well from the women’s point of view, me speaking here, that women we need to actually have a say. We need to have a participation in the State procurement because as I said earlier on, these are all monies that have been contributed to through taxes, levies et cetera in order for us to come up with that State purse and let the women also have a say in that because most of them you find they are companies dominated nevarume so we are saying madzimai nemayouth let them be part of it. With those few observations, I thank you Mr. Speaker.
HON. MUSANHU: Thank you Mr. Speaker Sir. I rise to point out some few remarks on this debate. Mr. Speaker, if all Zimbabweans were patriotic, I do not think the Minister of Finance and Economic Development was going to have any problem with having deficit on the budget. What it means is, every Zimbabwean who was going to benefit would actually employ and the people who are employed would pay tax so that the Government can have some funds.
On this issue, if you look at my Hon. there, the Vice President of MDC, if you look at the label of his suit, it is not a local suit. It is an import and if you look at all the other Hon. Members around, the clothes that we are putting on are actually imported. That shows that the mind of people has a mentality or we also have an inferior complex that if you buy the local material, you are degrading yourself. Given that even the Minister of Agriculture, Mechanisation and Irrigation Development here has actually said that genetic cotton is not permissible, most clothes that are worn in this Parliament are made out of genetic cotton which shows that we sometimes refuse to do some things but at the same time we are doing the opposite thing on the other side.
I just stood up to point out those few sentiments. I do not want to repeat what has been said already. With these few remarks I have made, it would go a long way and it would help our Minister of Finance and
Economic Development if we become patriotic and help our
Government to collect as much revenue as they require. I thank you.
HON. ENG. MUDZURI: I just want to add my voice to the
Procurement Bill. I would want tomorrow to bring written comments to the Minister from the Zimbabwe Association of Consulting Engineers which they have presented asking you to look clause by clause in terms of their concerns. It is just unfortunate that I did not bring them. I will try to bring a copy to you.
On procurement, it is important to recognise that it is best practice to have the best procurement standards. It is unfortunate that sometimes our institutions are not very much prepared to do best practice. I think the Minister’s effort, if it is complimented by the appointment of a board of people who are truthful and nationalistic who really want to see this nation moving forward, we are likely to have decent results on the decentralised form of procurement.
What I want to put across is that procurement must be complimented by people who are competent. If you look at the bridges which are not properly constructed, once rain comes they are washed away because there is no complimentary work in terms of a design to DDF. While we say the work is good, the community has done its work we are also not looking at the quality of work we are doing.
I remember the other day we were also speaking to the quality of engineers we are recruiting in Government. I was looking at a pothole which was filled the other day along Masvingo road. We were sitting inside it and this pothole was filled while I was watching. We insisted on quality of work. There are certain standards that are kept in terms of just doing pothole patching. We have spent a lot of money patching but within no days the whole pothole will be gone. So, we will have put money but it will not last. There is always a need to have a balance between the quality and the quantity of work done. We are always so expedient on the quantity and probably over indigenising.
Indigenisation is very important but we must create our international markets. We must create economic destinations for our products. When the Minister comes and says let us try to have areas where we have value addition, we must be prepared to build industries that are competitive internationally. When you value add and something is not going to be marketed externally, we are still not doing much to our economy. While we want to be very local and want to use our people, we must always balance our Standards Association of Zimbabwe with what happens internationally. If we think that our standards are superior we can always use the standards of Zimbabwe outside the standards of external agencies but we must ensure that the standards are competitive when we try to export the product.
I must hasten to say we have talked about buying local suits according to Hon Musanhi but what we should do is to ensure that the standards of the clothing we make is competitive for the market we are destining it for. We are such a small population of 14 million people and when we are 14 million, we must be exporting our goods to larger markets. If we can make things cheaper than in China, the population of China will be able to buy from us. If we can make our product cheaper for the market in South Africa, then we will be able to do our marketing in South Africa. A combination of those factors will bring our industry to the fore. If we do not work towards a common good, we are going nowhere because we end up with a product that is not marketable and we end up trying to sell it locally by force and still will not get a market.
With these few contributions and the document which I will bring to the Minister tomorrow, I want to thank you.
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Thank you Mr. Speaker
Sir and I want to acknowledge the contributions made by all the Hon.
Members. I will just mention them by name; the Portfolio Committee
Chairman, Hon. Chapfika, Hon. Nduna, Hon. Misihairabwi-Mushonga,
Hon. Chakona, Hon. Mudarikwa, Hon. Sibanda, Hon. Mapiki, Hon.
Matambanadzo, Hon. Tshuma, Hon. Gabbuza, Hon. Zindi, Hon. Musanhi and lastly Hon. Eng. Mudzuri. I thank all of you for your contribituions and more importantly, for the support that you are giving to the Bill.
I just want to underscore that this Bill is about decentralisation to procurement authorities. Currently, the State Procurement Board is procuring for all procurement entities and these include local authorities of whatever size, parastatals and line Ministries. With the enactment of this Bill procurement is going to devolve to these procurement authorities which means that, each line Ministry will have a procurement unit. Bulawayo City Council will have a procurement unit so is Harare Municipality and so are parastatals. But, they will not be given that responsibility until they have been trained on standards and norms of procurement and procedures. Obviously, municipalities like Bulawayo and Harare could get that function quickly, compared to other municipalities and town boards. That is what this Bill is about to do – to devolve that procurement function from the Central Government so to speak, to the procurement authorities. The State Procurement Board is going to remain but with a different function; that of regulatory. It will regulate and monitor all the activities of the procurement entities. So when you are talking about who should be on the board and so on, it is no longer quite relevant because each procurement authority will set up its procurement unit at a local level, and then discharge its function.
So I want to say that, the contributions which were made, I want to go and reflect on some of the proposed amendments that were suggested. In particular I want to reflect more deeply on what Hon. Eddy Cross said about procurement of professional services - for architects and engineers. I think that there is merit in his argument, that when you are procuring engineering services, clearly the fee structure is as determined by their institute and it is applicable to every engineer. What is an issue is the quality of the service. So, we want to look deeply into that to see what can be excluded from the tendering and what can be included. I will need more time to reflect on that.
Hon. Misihairabwi-Mushonga, just for the record, I think we need to understand that yes, when we are procuring from Gweru, Kwekwe and Gwanda, we need to look at what expertise is available. But if that expertise is not available, we should look nationally. I also want to say this Hon. Misihairabwi-Mushonga, you need to know that while the road from Mutare to Plumtree was given to Group Five, the actual contractor was a Bulawayo company. I am just talking about the issue raised about discrimination and so on. The company that did the Mutare to Bulawayo was a Bulawayo company. So, you need to know that. But, I think it was also because it had capacity. I know the company has the capacity and I do not think that we should shy away from employing a company which has capacity because we think that it does not come from the area where the contract is to be performed.
We have contracts here which some of them are of a sophisticated nature. Bulawayo Power Station; of course you do not expect that the expertise would be resident in Bulawayo. Anyway, in the case of the Bulawayo Power Station, because of the nature of loans conditionalities, the contractor is an Indian company because we got the loan from IndiEximbank but, we do negotiate with them to see that they also incorporate procurement of local materials where that is possible. But clearly, the machinery would have come from India in this case.
So, again you raised the issue of procurement of lawyer services and so on. Again but to think about it, I should not be forced to hire a
lawyer whom I do not like - [HON. MISIHAIRABWI-MUSHONGA:
Inaudible interjections.]- no, I should get a lawyer whom I am comfortable with, who can advance and defend my interests. So, it should not be a surprise and generally clients Mr. Speaker Sir, follow their clients. If a Bulawayo lawyer located to Harare, you will find that clients from Bulawayo will follow him even to Harare because they are used to expecting a certain quality of service from him. The Hon.
Member (Hon. Gonese) who has just sat near you, he gets clients from
Harare, yet he is located in Mutare –[HON. MISIHAIRABWI-
MUSHONGA: Inaudible innterjections]-
I do not know about that but clearly I know that there are lawyers in Mutare who get clients from Harare. There are lawyers in Harare who get clients from Kwekwe; lawyers in Kwekwe who get clients from Harare and I do not think that it is an issue that we should worry much about, where you procure your lawyers.
Hon. Chakona, thank you very much – I am also going to look into the issue about what these vendor numbers are about and whether in the past there has been an abuse of vendor numbers. I am also going to look into the issue of tax clearance certificates – in what circumstances they are issued in order for entities to qualify to participate in public tenders. Another issue that I am also going to look into is the procurement of technological and engineering solutions. We also need to look at and see whether this can be incorporated as a requirement in most of what we do if there is local capacity for supplying these services.
Hon. Mudarikwa, I got you and Hon. Sansole thank you for your support. The point that I got from Hon. Mudarikwa is basically that which is not quite to do with procurement – where you have five or so telecommunications companies digging parallel trenches and each trench containing a fibre optic which has capacity for all the five. That is a different problem which in the area of telecommunications, is being handled through the Ministry of ICT.
Hon. Gabbuza, I thank you and I think I have also understood the contribution by Hon. Matambanadzo for localisation and also Hon.
Tshuma for localisation. Hon. Mudzuri, I am waiting for the submission of the proposals from the Zimbabwe Association of Engineers so that we can see whether we can take any of their suggestions on board.
With those remarks Mr. Speaker Sir, I now move that the Public Procurement and Disposal of Public Assets Bill (H.B. 5, 2016), be now read a second time.
Motion put and agreed to.
Bill read a second time.
Committee Stage: Wednesday, 8th February, 2017.
ANNOUNCEMENT BY THE TEMPORARY SPEAKER
REPORT RECEIVED FROM THE PARLIAMENTARY LEGAL
COMMITTEE
THE TEMPORARY SPEAKER: I have received a non-adverse report from the Parliamentary Legal Committee on the Appropriation Bill, (2017) (H.B. 14, 2016).
Second Reading: With leave, forthwith.
SECOND READING
APPROPRIATION BILL, (2017) (H.B. 14, 2016)
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, the
purpose of the Appropriation Bill is to give effect to the main Estimates of Expenditure for the year ending 31 December, 2017, which I tabled in this august House on 8th December, 2016.
Section 3 of the Appropriation Bill, charges the Consolidated Revenue Fund with a sum of US$3,426,289,000, which relates to the 2017 Vote Appropriations.
The Vote appropriations seek to ensure realization of the overall objectives of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZIM ASSET), 2013 – 2018 programs and projects under implementation by the Government.
The 2017 Budget policy measures include, among others;
- Enhancing production across all sectors of the economy through giving greater and more urgent attention towards the supply side interventions;
- Strengthening of social safety nets in support of vulnerable groups in line with the objectives of our Interim Poverty Reduction
Strategy Paper (IPRSP) for 2016 – 2018;
- Containment of expenditures, particularly employment costs in order to re-orient the thrust of fiscal expenditures towards service delivery and infrastructure development, particularly in the Energy, Water, Transport and ICTs subsectors.
Mr. Speaker Sir, Section 5(1) of the Bill empowers the Minister of Finance and Economic Development to transfer funds already approved by Parliament between Votes in respect of a function or responsibility transferred between Ministries and Departments during the course of the
Fiscal Year.
Section 5(2) of the Bill allows discretion by the Minister of Finance and Economic Development to transfer funds from the Unallocated Reserve, which appears on the Ministry of Finance and Economic Development Vote to any other Vote as and when the need arises in order to meet inescapable expenditures.
In addition, and if necessary, the Minister of Finance and Economic Development can vary the amounts transferred by taking back any surplus for reallocation to other Ministries to meet demands that may arise. Mr. Speaker Sir, I accordingly move that the Appropriation Bill, (2017) [H.B. 14, 2016] be now read a second time.
Motion put and agreed to.
Bill read a second time.
Committee Stage: With leave, forthwith.
COMMITTEE STAGE
APPROPRIATION (2017) BILL, [H.B. 14, 2016]
House in Committee.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT: Madam Chair, I put the amendments to the schedule standing in my name. These are the amendments that I have already explained during the debate last week that;
On page 2 of the Bill, in Section 4 (schedule), paragraph 2 (Parliament of Zimbabwe), under Sub-Vote II replace “26, 245, 000” with “35, 245, 000” and adjust the Vote Total appropriately to reflect “39, 713, 000”.
On page 3 of the Bill, in Section 4 (schedule), paragraph 5 (Finance and Economic Development), replace “281, 191, 000” with “206, 374,000”.
On page 4 of the Bill, in Section 4 (Schedule), paragraph 16 (Higher and Tertiary Education, Science and Technology Development),
- Under “Programme 1”: delete the words “Administration and
General” and replace them with “Policy and Management”.
- Under “Programme II”: delete the words “Teacher Education” and replace them with “Human Capital Development”.
- Under the renamed “Human Capital Development” programme, replace “193, 272, 270” with “259, 089, 270”.
- Under “Programme III”: delete the words “Technical Education and Training”, and replace them with “Science and Technology
Development”.
- Under “Vote Total” replace “200, 886, 000” with “266, 703, 000”.
On page 5 of the Bill, in Section 4 (schedule), paragraph 17
(Youth, Indigenization and Economic Empowerment), under
Programme V: Human Capital Development, replace “4, 901, 279” with
“4, 271, 279”, and adjust the Vote Total appropriately to reflect “17, 192, 000”.
On page 5 of the Bill, in Section 4 (schedule), paragraph 23
(Women’s Affairs, Gender and Community Development), under Programme I: Policy and Administration, replace “637, 890” with “747,
890” and adjust the Vote Total appropriately to reflect “8, 434, 000”.
Amendments to the schedule put and agreed to.
Bill reported with amendments.
Bill referred to the Parliamentary Legal Committee.
MINISTERIAL STATEMENT
CURRENT STATUS OF VAT ON BASIC GOODS
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir I crave the
indulgence of the House to issue a Ministerial Statement. The Ministerial Statement is concerning the current status of the VAT on basic goods.
Mr. Speaker Sir, you will recall that in the 2017 National Budget, I propose to introduce VAT at a standard rate of 15% on products which include rice, margarine, cereals, maheu, potatoes, meat (pork, beef, fish and chicken). The basis for standard rating the products is mainly due to the need to rationalise the schedule of zero rated and exempt goods in order to broaden the tax base and minimise the cost of tax administration.
Mr. Speaker Sir, Zimbabwe, together with other SADC Member States, has ratified the SADC Protocol on Finance and Investment. Under the Protocol, Member States are mandated to harmonise taxation matters and coordinate tax regimes.
In an endeavor to harmonise taxation matters, the SADC region has developed VAT guidelines which enable Member States to sustain and enhance tax revenues on an equitable and efficient basis.
Member States have, thus, agreed that the list of zero rated and exempt products should be streamlined in order to achieve the following objectives:
- Broaden the tax base;
- Enhance revenue generation;
- Promote administrative efficiency;
- Minimise corruption
- Ensure similarity among Member States; and Enhance equity and fairness among others.
Mr. Speaker Sir, in the SADC region, Zimbabwe has one of the longest list of zero rated and exempt products. The list of zero rated and exempt products include, but not limited to the following:
- Grains such as maize and wheat;
- Mealie meal;
- Bread;
- Cooking oil;
- Salt;
- Milk;
- Fruits;
- Vegetables;
- Eggs;
- Inputs for manufacture of cooking oil;
- Soya beans;
- Protective clothing;
- Animal feeds and remedies;
- Pesticides;
- Fertilizers;
- Medical services;
- Selected pharmaceutical products;
- Domestic supply of electricity;
- Domestic supply of water; and
- Supply of goods such as books, typewriters and maps for use by physically challenged persons, among others.
Countries such as Namibia, Lesotho, Malawi, and Zambia have a minimum list of zero rated and exempt products. Such countries charge VAT on products such as rice, fresh milk, fruits, eggs and meat products among others.
However, in our circumstances, following the debate that took place here and stakeholder representations, wherein concerns have been raised regarding potential informalisation due to perceived price increase, I propose to shelve the implementation of Statutory Instrument 20 of 2017 –[HON. MEMBERS: Hear, hear.]- Which levies VAT on potatoes, rice, margarine, maheu and meat products. This will allow for further consultation with relevant stakeholders and those consultations, I will start them with this august House. I need the august House to give me guidance. I must tax something to raise money to pay for service delivery, allowances, and wages. So, we need to have guidance so that we understand and agree on which items to tax. So, the consultations will start with this august House. I thank you – [HON. MEMBERS:
Hear, hear.]
HON. P.D. SIBANDA: Thank you so much Hon. Speaker. I think I was talking to a colleague of mine saying this Hon. Minister is so good that he is the only ZANU PF Minister who does not have a ZANU PF DNA –[HON. MEMBERS: Inaudible interjections.]- The importance of the step that has been taken by Hon. Minister is that these goods that we are talking about are basic necessities for Zimbabweans. The impact of taxing them is huge in terms of the cost of living of this nation. The impact that this would have especially on the small scale to medium enterprises would be huge which are the backbone of our economy currently.
However, I just want to seek clarification from the Hon. Minister, whether on meat and meat products, he includes also such products as kapenta fish. I come from Binga where our major source of income is fishing of kapenta so we want him to clarify whether kapenta is also within the bracket of those goods whose VAT has been set aside. Thank you.
HON. ENG. MUDZURI: Thank you Mr. Speaker Sir. I just want
to thank the Minister for his attitude. Honestly, if you listen to the people’s voices, then you are in a national leadership. Sometimes we do not listen and I just pray that the Minister keeps that spirit of listening to the concerns of the people.
Unfortunately for him, the economy is not improving. He wants to increase his tax base but the economy is not improving. Actually, if you look around Hon. Speaker, you will discover that there is a trend of people failing to pay rentals, even everything, they are failing to pay. So, I am not sure how we are going to jump start the economy and probably have some other sources of income. What we should try to do is to close anything that encourages corruption…
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Order, order, Hon. Vice President of the MDC, what I have said here was clarification not the debate but seeking clarification to what the Minister had said.
HON. ENG. MUDZURI: The Minister said if he can get other means of getting revenue and I am just saying the best means…..
THE TEMPORARY SPEAKER: He said he was going to
consult everyone, including this House. He did not mean now.
HON. ENG. MUDZURI: My final clarification is on meat and beef which type of beef or meat are we going to have concessions because there is tinned beef, raw beef and game meat.
HON. NDUNA: Thank you Mr. Speaker. I believe on the day he proposed that there be 15% to be added onto meat products, in particular because I am an owner of an abattoir, it happened immediately. Today, he has given this Ministerial Statement, it is my clarion call that this also happens immediately in terms of repealing that 15% VAT by retailers. Over and above that Hon. Minister, you have mentioned on issues to do with clutches and wheelchairs for people living with disabilities, it is also my clarion call that you also add on the zero rating those that were not there before, in particular Braille, equipment and some other model of clutches for people living with disabilities aware and cognisant of the fact that the budget increase did not occur for these people who are marginalised because of disabilities.
*HON. A. MNANGAGWA: Thank you Mr. Speaker. I thank the Minister of Finance and Economic Development for removing such taxes. We were failing to provide for our children and some children were now under nourished because we could not afford to buy nutritional foods. I thank you.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA) Thank you very much for
the contributions and for the clarifications sought. Hon. Sibanda, if the Statutory Instrument imposed VAT on fish and carpenter is fish, I am shelving it as per my statement. Hon. Mudzuri, thank you very much, this covers all types of beef. I cannot say off hand whether tinned beef is part of that. I doubt it, I think tinned beef should be different but all we are looking at is what did the instrument cover. Anything that was covered which was to take effect from 1st February, 2017 will now be shelved.
Hon. Nduna, I think I have to explain this VAT. As you know,
VAT is a transactional tax. It is charged at every level of value addition. In other words, if we take the example of a manufacturer, when the manufacturer sells to the wholesaler, he charges VAT. When the wholesaler sells to the retailer, the wholesaler charges VAT and when the retailer sells to the consumer, he charges VAT. This is why VAT is now the largest source of our revenue in terms of support to the budget revenues. It accounts for a very huge contribution to our revenue collection. Seconded, I think by Pay As you Earn. So, when we are looking for how to raise money, we are basically identifying those areas where there is a lot of economic activity.
A supermarket will fix its price, in the prices they do not include tax. You only know the tax when you get to the till. So, this issue about prices being increased, it is not seen in the shops but when you get to the till because of the VAT. If a retailer includes a VAT tax in the price, you can be sure that money is not coming to ZIMRA. It is getting into the coffers of the supermarket and that is not desirable.
I want to thank all of you who have contributed. Hon.
Mnangagwa, kwashiorkor had not come yet. It was only introduced on 1st February, 2017 and I think if you have not been buying meat, you cannot blame the tax. Mr. Speaker Sir, I thank Hon. Members and I hope that I have done justice to the clarification sought.
ANNOUNCEMENT BY THE TEMPORARY SPEAKER
NON-ADVERSE REPORT RECEIVED FROM THE PARLIAMENTARY LEGAL COMMITTEE.
THE TEMPORARY SPEAKER: I have to inform the House that
I have received a Non-Adverse Report from the Parliamentary Legal Committee on the Appropriation, (2017) Bill [H.B. 14,2016].
CONSIDERATION STAGE
APPROPRIATION BILL [H.B.14, 2016]
Schedule as amended, put and agreed to.
Bill, as amended, adopted.
Third Reading: With leave, forthwith.
Motion put and agreed to.
THIRD READING
APPROPRIATION BILL [H.B.14, 2016]
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker, I now move
that the Bill be now read a third time.
Motion put and agreed to.
Bill read the third time.
SECOND READING
ZEP – RE (MEMBERSHIP OF ZIMBABWE AND BRANCH OFFICE
AGREEMENT) BILL [H.B. 9, 2016]
Third Order read: Second Reading: ZEP – RE (Membership of Zimbabwe and Branch Office Agreement) Bill [H.B. 9, 2016].
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, it is my singular honour to move that the ZEP-RE (Membership of Zimbabwe and Branch Office Agreement) [H.B. 9. 2016] be read for a second time.
Mr. Speaker Sir, Honourable Members will recall that Zimbabwe is a shareholder of the PTA Reinsurance Company (ZEP-RE), an intergovernmental reinsurance company with a local branch office in Harare.
The Government, through my Ministry signed a Host Agreement with the PTA Reinsurance Company in June 2013 and that Host Agreement provides, among other things, that the Government of Zimbabwe shall grant certain privileges and immunities to the company, which privileges and immunities is a standard feature of such Host Agreements. Conferment of these privileges and immunities are consistent with the provisions of Article 40 of the Agreement establishing the Common Market for Eastern and Southern Africa.
It is upon that basis and in terms of Section 327 of the Constitution of Zimbabwe that the ZEP-RE Bill before you seeks to confer legal status to the PTA Reinsurance Company.
Benefits of ZEP-RE operations in Zimbabwe
The operations of ZEP-RE bring economic benefits that include, writing insurance business from the insurance market, improving the capacity of the local reinsurance business by bringing on the board strong shareholders as well as downstream economic benefits associated with insurance business.
A robust insurance sector for Zimbabwe will contribute to sustained economic growth and improved financial sector performance.
Growth and development of the insurance industry will in turn create more business for the ancillary service providers.
The operations of the reinsurance company in the country benefit the Government of Zimbabwe through a wider capital base for the subscription of prescribed assets.
Provisions of the Bill
Clause 4 of the Bill provides for the Minister’s powers in relation to the conferment of privileges and immunities upon the company, with Clause 4 (2) of the Bill allowing the Minister responsible for Finance to temporarily suspend the immunities and privileges conferred upon the employees of the company where it is in the public interest that such suspension be effected. Under the same provision, it is recognised that certain of the privileges and immunities cannot be conferred upon the company on a permanent basis and may therefore be granted for only a specified time period.
Article 2 of the First Schedule provides for the definition of the terms used in the Bill. Under this Article, “Host Agreement” means the Agreement between the Government of Zimbabwe and ZEP-RE (PTA)
Reinsurance ompany, and “Treaty” means the Treaty establishing the Common Market for Eastern and Southern Africa (COMESA).
Article 4 of the First Schedule provides for the treatment which will be extended to the offices and accommodation of members of the company. The Government has a duty to ensure that there are no unnecessary interruptions or intrusions which could have an adverse effect on the operations of the company nor the dignity of its employees.
Article 6 of the First Schedule provides that the company shall be entitled to operate foreign bank accounts pursuant to their business activities, provided that they acquire the required authorisations under the Exchange Control Regulations.
Article 8 of the First Schedule provides for the status to be accorded to the directors of the company as that of non-resident members of diplomatic missions and Article 9 further expounds on the privileges and immunities extended to other members of the company and the family members of those employees.
In terms of Article 10 (5) of the First Schedule, the interpretation of the privileges and immunities conferred upon members of the company are not to be construed to allow its employees to derive any personal benefit of any nature upon them. The privileges and immunities must be read within the broader context of achieving the objectives of the company.
Further, Article 10 (6) also provides that the Managing Director of the company may suspend the privileges and immunities entitled to an employee where it is in the interests of justice that this be done.
Finally Mr. Speaker Sir, in terms of Article 14, the Agreement, along with any entitlements arising there - from, shall terminate where the company relocates outside of Zimbabwe, or where both parties agree to terminate the Agreement. Mr. Speaker Sir, I now move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 8th February, 2017.
On the motion of the MNISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA), the House
adjourned at Seventeen Minutes to Six o’clock p.m.
PARLIAMENT OF ZIMBABWE
Tuesday, 7th February, 2017
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. SPEAKER in the Chair)
ANNOUNCEMENT BY THE HON. SPEAKER
INVITATION TO A NETWORKING DINNER FOR COTTON
GROWERS
THE HON. SPEAKER: I wish to inform the House that
Members of Parliament from cotton growing areas are invited by the Cotton Company of Zimbabwe to a networking dinner on Wednesday 15th February, 2017, at 1800 hours at the Rainbow Towers Hotel. Members interested in attending the dinner should confirm attendance with Mr. M. Godzongere, from the Public Relations Department, Office 516, Fifth Floor, South Wing at Pax House, not later than end of the day on Thursday 10th February, 2017.
MOTION
BUSINESS OF THE HOUSE
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I crave the indulgence of
the House to move that Order Number 1 of the day be stood over until Order Numbers 38, 2 and 3 have been disposed of in that order.
MOTION
THIRD REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON
THE FINDINGS BY THE AUDITOR GENERAL ON THE 2014
APPROPRIATION ACCOUNTS FOR THE MINISTRY OF FINANCE
AND ECONOMIC DEVELOPMENT
Thirty-eighth Order read: Adjourned debate on motion the Third
Report of the Public Accounts Committee on the findings by the Auditor General on the 2014 Appropriation Accounts for the Ministry of Finance and Economic Development and other Statements under its purview.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker, you have
raised directly with me and other line Ministries your concerns that we are not responding to reports submitted in this House by different Portfolio Committees. I want to assure you that during the first quarter of this year, I should have complied with all the reports that I have to respond to, raised concerning my Ministry. Administratively, we have been able to put our act together and we think that we can comply with that request.
I am standing to respond to the report by the Public Accounts Committee which was raised concerning my Ministry. I have done my response in a tabular form showing the concerns and recommendations of the Committee and the response I gave to that recommendation. The first concern raised is that:
|
Issue of concern to the Committee’ concern |
Committee Recommendation |
Response |
1 |
The Public Finance Management System (PFMS) Audit Module not enabled |
Treasury should purchase the additional servers to allow the activation of the Audit Module within the system by |
The Treasury has purchased additional servers and the equipment was received on 28th January, 2017. The processing |
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in the new version of the SAP system (EHP7) |
30th September, 2016. |
capacity will be enhanced as soon as the new servers are functional. Government will have a parallel processing capacity installed in Bulawayo, which will ensure that we will have an effective Disaster Recovery Plan. Should the Harare servers fail, we will be able to switch immediately to the Bulawayo based server. As soon as the new servers are installed, i.e. by mid-February, 2017, the Audit Module will be enabled on the system |
2 |
Upload of expenditure by Ministry of Foreign Affairs in the SAP System after the 13th period of one month after the end of a financial year. |
Enforce the cut-off period in line with best practices. In this regard, the Ministry of Foreign Affairs should observe the 13th period cutoff deadline and close its books of accounts for the current year by 31st January, 2017. |
The Accountant General and the Director of Finance in the Ministry of Foreign Affairs are working on this and they are confident that this issue will have been resolved by 31st December, 2017. Once that has been done, the Accountant General expects to produce a Treasury Minute that will be submitted to the House. |
3 |
Failure by the PFMS System to display asset register for the Ministries of Finance and Economic Development, Information Communication Technology, Postal and Courier Services and Foreign Affairs. |
1. Training on maintenance of asset registers across Ministries by 30 September, 2016. 2. Accounting Officers should closely monitor this area and ensure asset registers are checked for completeness and accuracy by 31st January every year. |
The installation of new servers and the related increased processing capacity will allow for a complete set of Asset Registers to be installed and maintained in the 2017 Financial year. The system has been designed so as to ensure that there is: a. A composite Government Assets Register maintained by the Treasury and b. Individual Assets Registers maintained by each Ministry c. In addition once the system is fully functional, the Accountant General’s team will provide training support to all line |
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Ministries. The training will cover a. Assets requisition and procurement b. Upload of existing assets c. Depreciation policies and processes d. An understanding of the circumstances that should lead to Board of Survey Procedures. |
4. |
Variance observed between the 2013 returns submitted by line Ministries and those by Treasury as well as balances in the SAP system |
Training should be undertaken by the first half of 2016 to avoid recurrences in the next round of audits. |
Treasury has provided training on the production of annual returns and the incidence of inaccurate returns produced by the Ministry has declined. This training, however, remains an ongoing exercise as new problems are identified and new officers are recruited to the relevant grades. The training will therefore be ongoing but there has been noticeable improvement in the quality of returns produced for the 2015 financial year. |
5. |
Direct payments to service providers |
Treasury must formulate procedures for handling direct payments to facilitate proper and systematic capturing of such transactions and curb recurrences of the audit observation in future. This should be done by 30th September, 2016. |
Formal instructions have now been issued under Treasury Circular Number 3 of 2016 covering the issue of direct payments. The Circular was issued on 15th April, 2016. |
6. |
Misappropriation of funds |
i. Treasury to come up with a risk management framework by 30th September, 2016, which will allow close monitoring of high risk areas |
Treasury managed to carry out training of staff in the identification, assessment and prioritization of risks. Treasury is now in the process of engaging a |
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and curb losses through fraudulent activities.
ii. Given the central role played by the Accountant General’s office, the Civil Service Commission should by 30th September, 2016, fill in the critical vacancies occasioned by this incident. The staff is critical in ensuring that audit recommendations across line Ministries, parastatals and local authorities are acted upon. |
consultant to help in coming up with a draft risk management framework. The consultant will be engaged by the end of April, 2017 as funding has been secured for that purpose.
Ten additional positions in the Accountant General’s office were exempted from the Public Service freeze during the fourth quarter of 2016. Interviews have been carried out and the 10 officers are expected to be in post on 1st February, 2017. The positions are expected to be filled by 1st March, 2017.
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7. |
Failure to review Treasury Instructions after the introduction of the multi-currency system. |
New regulations should be operational by 30th June, 2016 as the Ministry indicated. |
A draft set of Public Finance Management Regulations and Treasury Instructions will be submitted to the Auditor General in February, 2017. Both documents could not be finalised by 30th June, 2016 for different reasons. On Treasury instructions, when the Accountant General reviewed the draft, he established that there was a gap in the provisions, with respect to guidance on dealing with epayments. As we moved as a country towards payments, it became clear that we needed to develop a new set of rules and controls. On the Public Finance Management Regulations, the World Bank kindly offered the |
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Government of Zimbabwe technical support in the form of a senior Finance Advisor. Unfortunately, the advisor was only available in November, 2016. |
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8. |
Failure to revalue Government assets from the Zimbabwean dollar to the United States dollar. |
Treasury should by 30th September, 2016, provide guidance to fund managers to enable them to revalue noncurrent assets that were in Zimbabwe dollar currency. |
While the Committee recommends that these assets be revalued, I have taken a different approach. As an accurate record of each asset is available and these assets have been in operation for eight or more years, I have retained these assets in the assets registers at a nominal value of one dollar. As these assets are disposed of, a Board of Survey is established. Included among the responsibilities of Boards of Survey is the determination of current market value and the most appropriate disposal method. I have taken this view given the high cost of asset valuation. In some instances, assets valuation costs would exceed the respective asset value. |
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9. |
Non-disclosure of and incomplete accounting records for Public Financial Assets |
The PFMS should be configured to capture all payments made for equity and lending by 30th September, 2016. The PFMS should be configured by 30th September, 2016, to capture take-on balances, loans, investments, recoveries and adjustments to ensure proper accountability of public financial assets. |
The PFMS has been configured to take-on all Public Financial Assets records and I am confident that the 2016 audit will confirm this position. A new consolidated Public Financial Assets Register is now available and is maintained up to date. All equity and lending payments are now made through the system as recommended by the Committee. We are working on ensuring that, for 2017, all reconciliations will be effected on a monthly basis. |
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11 |
Opening take on balances which did not agree with closing balances. |
1. All payments for equity and lending must, with immediate effect, be made through the system and line Ministries should be advised of payments done through |
A public finance assets register has been established and will be maintained up to date. Payments made on behalf of any Ministry are |
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IDBZ to enable them to record such loans.
2. Ministry of Finance and Economic Development should speed up the process of compiling a new consolidated register for public financial assets and ensure that its available by the end of 2016 and going forward, ensure that reconciliations by line Ministries are timeously carried out. |
communicated to the line Ministries so that the line Ministries records are accurate. |
12 |
Variances between the balances reflected on the returns from line Ministries and those from Treasury rendering Statement on Public Financial Assets unreliable. |
Ministry of Finance should instruct line Ministries to ensure that all State enterprises provide up to date returns to their parent Ministries by 31st January, 2017. |
Considerable work has gone into ensuring that State enterprises bring their accounting records up to date. Unfortunately, some State enterprises are still lagging behind and have failed to produce timely returns as well as audited financial statements. At this moment, some State enterprises are still playing catch up in bringing their records up to date. Attached is a list of SEPs which have submitted the 2015 audited financial statements. |
13 |
Revenue Collection and Debt Recovery: Farmers’ World debt worth $11 833 433. |
Government must institute measures to recover the debt from either Farmers’ World or from beneficiaries of farm machinery and implements. Treasury should by 30 September, 2016, explain fully to the Committee why Farmers’ World was advanced the latter loan reported in 2014 when it was failing to pay back the initial loan and also report on progress made towards recovery of the debt. |
I agree with the Committee’s recommendation that “public resources cannot be used to meet obligations of a private nature”. Considerable effort has gone into tracing the debtor, Farmers’World and I am advised that the debtor has not only been located but that it has been established that Farmers’ World is recovering money from those to whom they provided equipment. Treasury has written to the Ministry of Agriculture., |
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Mechanisation and Irrigation Development in order to institute debt recovery arrangements. This remains work in progress but is something that I keep in view.
Farmers’ World has two separate loans as follows:- • A loan that was granted by the Treasury under the National Development Fund; and • A loan that the Treasury inherited from the Reserve Bank. When it became clear that we would not be able to access additional Chinese funding, we paid off this loan and thus Farmers’ World became our debtor. |
14 |
Variances in National Development Fund 2013 Accounts receivable figures. |
The Ministry, by 30 September, 2016, should put in place measures to avoid the co-mingling of the NDF and PSIP funds. |
Treasury has put in place measures to ensure that there will be no co-mingling of NDF and PSIP funds. |
15 |
Non-recovery of outstanding project loans disbursed through IBDZ. |
1. Treasury should by 30 September, 2016 provide an explanation to the Committee why it was maintaining IDBZ given its perennial financial woes.
2. Government should with immediate effect, stop lending funds to non-performing entities. |
Government has no intention of dissolving IDBZ and has in fact recapitalised the Bank. The bank’s financial performance is expected to improve significantly in 2017 and should be in a position to report a profit in 2017. The House needs to know that we hired a former Deputy President of the African Development Bank to head this bank and there are discernable improvements in the manner and in the way that it is now performing.
The recommendations have been noted and Government will in future carry out due |
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3. Government should with immediate effect institute recoveries from entities such as ZINARA since it was collecting a lot of revenue.
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diligence on the institutions to be supported. However, some of these entities are Government linked and strategic in nature. Under the Public Sector Reform Initiative, we are working on improving the performance of State enterprises, parastatals and local authorities. Among the improvements, is a draft Governance Bill that will be presented to this House soon.
Recommendation noted, Government will schedule meetings with the institutions that have prospects of repaying the funds and request for payment plans with a view to clear the outstanding support extended. |
16 |
Non provision of information on the Zimbabwe Economic Trade Revival Facility (ZETREF) |
Minister of Finance should provide a full report on the status of the facility to the Committee by 30 September, 2016. |
When the Zimbabwe Economic Trade Revival Facility was established by Government, the proper documentation procedures may not have been followed. My officers have engaged the relevant bank to try and obtain the original agreement with limited success. We look to resolve this issue by March 31, 2017. |
17 |
Outstanding Farmers’ World debt |
Government should with immediate effect, institute recoveries of the debt from either Farmers’ World or the agricultural machinery |
See 13 above |
18. |
The Committee with concern that the Fund like other funds in line Ministries, had been prone to abuse, hence there was need for better control and supervision |
Going forward, all those found to violate Fund resources should be penalized in terms of Section 91 of the Public Finance Management Act. |
As indicated in my Budget speech, Fund Accounts shall only be used for the purposes specified in the Blue Book and there shall be no variations without Treasury Authority. Failure to comply |
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by accounting officers. |
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will be dealt with in terms of Section 91 of the Public Finance Management Act. |
19. |
Inadequate security for housing loans disbursed to senior officers. |
Ministry of Finance should examine the functions of the Fund from a governance point of view in that the Committee noted that it was inappropriate for the fund to be administered by potential beneficiaries. The Ministry should provide an explanation by 30 September, 2016. |
The Committee’s comments have been noted and a set of Accounting Officers’ Instructions have been issued that direct the Fund Manager to adhere to proper Governance Procedures including ensuring that: - All loans are supported by adequate security; - No single officer shall be issued more than one loan; and - All loans will be issued with on the prescribed limits. |
20. |
SERA failure to renew contract of employment |
The Ministry should fully justify the continued existence of SERA by 30 September, 2016. |
I note that the Committee questions the relevance of SERA. For the record, SERA has been supportive of the reform process as a technical advisor and cannot, in all fairness be blamed for lack of progress in the implementation of Government decisions. You may be aware that we are working on a Governance Bill that will soon be submitted to the House for consideration. In addition to work carried out by SERA in the crafting of the Bill, I am satisfied that their inputs on Turnaround Strategies and Developing Performance Measure have been invaluable to Government. |
In conclusion, I want to thank the work that the Public Accounts Committee has put into this matter. I think that it is very clear; they raised very pertinent issues and I think that I have done my best to respond to each of those pertinent issues. As I pointed out earlier, I think that I will be in a position to fulfill all the requests for replies and responses by end of March this year.
HON. MPARIWA: Thank you Hon. Speaker. Through you Mr.
Speaker Sir, let me begin by thanking the Hon. Minister of Finance and Economic Development, Hon. Chinamasa for the response. Indeed, I am humbled that at least some movements are being done as reflected in the response by the Minister. I hope and trust that as we do our oversight role, we will be able to be getting responses from the Executive because it is our responsibility to carry out oversight over the actions of the Executive. Hon. Speaker, may I also appeal that the
Ministers that are not here who also have received reports from the
Public Accounts Committee, do the same like the Hon. Minister who is responsible for national purse of the country has done. He allocates resources to the various departments of Government and really I want to thank him. Indeed, this actually promotes parliamentary democracy and good governance and team work will never fail.
Let me end by a quote from the Bible Hon. Speaker…
HON. CHAMISA: On a point of order Hon. Speaker. This is a very important development in the processes of Parliament and I was going to seek your indulgence. You may know that in terms of the rules, once the Chairperson of the Committee articulates the response that closes the avenue for other members just to add views. So, I was going to seek that through your indulgence Hon. Speaker, if you may allow Members who may want to just sink their teeth in this very important response from the Minister; then we have the Chairperson to conclude, that will help us. If that is okay with you, we would really appreciate. I for one do not want to debate, but I just feel that there are others who may want to just respond to this one, because there is nothing that stops us from appreciating…
Hon. Chamisa was asked to approach the Chair.
HON. CHAMISA: I have since heard what you have said Hon.
Speaker; you make a lot of sense that we delayed a bit.
THE HON. SPEAKER: What I have said makes some sense. I
make a lot of sense. There is a big difference.
HON. CHAMISA: Thank you Hon. Speaker. In fact I was
hesitant to give you all the due credit.
THE HON. SPEAKER: No, no.
HON. CHAMISA: Thank you. What you said makes sense and we oblige Hon. Speaker. I hear you and I think I will not persist. – [AN
HON. MEMBER: Inaudible interjections.] -
HON. ZINDI: On a point of order Hon. Speaker. We are not privy to what Hon. Chamisa is referring as what you have said makes a lot of sense and you also responded Hon. Speaker – I have made a lot of sense – [Laughter.] – What is it that I have made a lot of sense out of that, we want to know.
THE HON. SPEAKER: Order, order. Hon. Zindi, I hear you. I think Hon. Chamisa was going to explain the sense. Allow him to wind up.
HON. CHAMISA: Thank you Hon. Speaker. Let me share with the House the sense that we got from our esteemed Hon. Speaker. As you know, we had requested that we would have Hon. Members also making commendation and appreciating the good work by the Minister of Finance because it is not often that we have Ministers making their diligent effort to come to Parliament to appreciate the role of
Parliamentarians and Portfolio Committees – [HON. MEMBERS: Hear, hear.] – so we wanted to appreciate that. However, the Speaker indicated that the problem is that we were a bit late in responding before the Chairperson of the Portfolio Committee took the stand. The problem now is that if we were to have Hon. Members of Parliament debating, the Hon. Minister will not be able to respond to our input unless if we have made prior arrangements. I think it does make good sense. That is what was explained. On that score, we ask our Chairperson to make the necessary submissions.
HON. MPARIWA: Thank you Hon. Speaker. Let me just appeal to the other Ministers who have not responded to Committee reports and recommendations to do the same like what the Hon. Minister of Finance and Economic Development has done. I think that will also address the concern from my colleague Hon. Zindi. It is very relevant and pertinent that Ministers should come and respond to questions and reports recommendations.
Finally, let me end by quoting the Bible Hon. Speaker, which is
James 2:17, “Faith without action is dead.” Hon. Speaker, I mean that the Hon. Minister has made a lot of commitments in other areas in terms of responses, but without implementation, we will remain with the same problems as observed in the report of the Auditor- General.
With these remarks Hon. Speaker, I move that the report be adopted.
Motion that the Third Report of the Public Accounts Committee on the findings by the Auditor General on the 2014 Appropriation Accounts for the Ministry of Finance and Economic Development and other Statements under its purview, put and agreed to.
SECOND READING
PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS
BILL [H.B. 5, 2016]
Second Order read: Adjourned debate on motion on the Second Reading of the Public Procurement and Disposal of Public Assets Bill, (H.B.5, 2016).
HON. CHAPFIKA: Thank you Mr. Speaker Sir. I rise to present the report of the Portfolio on Finance and Economic Development on Public Procurement and Disposal of Public Assets Bill.
1.1 Introduction
The Public Procurement and Disposal of Public Assets Bill, (H. B.
5, 2016) was gazetted on 17 November 2016. This Bill repeals the Procurement Act [Chapter 22: 14]. The Bill is a welcome development given the challenges the country continuously face with the existing Act under which the State Procurement Board conducted procurement on behalf of government entities. Some of the challenges relate to delayed procurement of goods and services owing to the centralised nature of procurement, the alleged corruption which could have had a huge cost effect to the economy and consequently loss of faith in the process by both procuring entities and suppliers of goods and services.
1.1 The Committee believes that the Bill when implemented to the letter and spirit of its objectives, fairness, transparency and honesty will be achieved. The proposed changes are in line with global trends where equivalents of the State Procurement Board have been transformed into regulatory bodies while the procurement function has been decentralised to procuring entities.
1.2 The Committee commends the Office of the President and Cabinet for the extensive consultations conducted on the Bill with relevant stakeholders. Six Committees from the National Assembly and one from the Senate were consulted on two occasions in February and October 2016. These consultations afforded Parliamentarians an opportunity to input into the draft Bill before its gazetting. The Committee on Finance and Economic Development is, therefore, generally in support of the Bill save for few issues that require fine tuning before approval by Parliament.
1.3 The Committee in compliance with Section 141 of the Constitution relating to consultations with the public on Bills being considered by Parliament conducted public hearings from 29 November to 3rd
December 2016, in Gweru, Bulawayo, Gwanda, Lupane, Masvingo, Mutare, Marondera, Harare, Chinhoyi and Bindura. The majority of the people who were consulted and those who sent their inputs via email welcomed the Bill and suggested a few improvements which will be highlighted below.
2.0 Submissions Received from the Public
2.1 Application of the Act
2.1.1Members of the public commended the Bill for containing provisions that promote transparency and fairness. Whilst acknowledging that some procurement by Security departments needed to be kept secret, they recommended that strong mechanisms for oversight be put in place to ensure that nontransparent procurement is not open to abuse.
2.2 Statutory Tariffs
2.2.1Stakeholders raised concerns on Section 3 (4) relating to the application of the Act in relation to the provision of professional services and Part VIII relating to the procurement of consultancy services. They argued that the quality and cost based selection method would be detrimental to project delivery and proposed that the current method of gazetted scale of fees which is based on the value of works and is on a sliding scale be retained. They submitted that the quality and cost based selection method needs highly skilled clients and that the influence of price could be detrimental to quality of the service.
2.3Objectives of the Bill
- 1Members of the public welcomed the Bill and indicated that the proposal should be approved as it will address the challenges that were being faced associated with current procurement processes particularly, the perceived corrupt activities. The Bill was hailed as a piece of legislation that was comparable to world best practice especially with the procurement law in Tanzania.
2.4 Establishment of the Procurement Regulatory Authority of
Zimbabwe
2.4.1The proposed abolition of the State Procurement Board and the decentralisation of the procurement function to ministries, parastatals and local authorities under the supervision of the Procurement Regulatory Authority of Zimbabwe was well received by stakeholders. Members of the public noted that by decentralising procurement, procurement processes were likely to be conducted much faster than before. However, Government was called upon to ensure that the proposed Procurement Regulatory Authority has sufficient powers, independence and financial and human resources to effectively perform its role.
2.5Board of Authority
2.5.1Some members of the public proposed that the Board should consist of either eleven or thirteen Members as opposed to seven of
nine in the Bill. The rationale was for each of the country’s provinces to be represented thus ensuring consistency with section 18 of the Constitution relating to the principle of fair regional representation. They also proposed a reasonable percentage in terms of youth representation on the Board.
2.6Procurement Preparation
2.6.1Members of the public submitted that the requirement in Section 20 that procuring entities have adequate funds for the proposed works is laudable as it will ensure the sustainability of the construction industry in Zimbabwe. It was submitted that most of the consultants and contractors were being crippled by doing work for clients that do not pay for work done.
2.7Domestic Preference
2.7.1Some stakeholders welcomed the provisions of Section 29 which allow for a preference to Zimbabwean local suppliers and manufacturers in accordance with the Indigenisation and Economic Empowerment Act. They, however, argued that the provision was discriminatory against Zimbabweans who do not fall under the
definition of Indigenous and is open to constitutional challenge. They proposed an amendment that would reflect domestic preference to Zimbabwe citizens instead, as is the case with the
Tanzanian Public Procurement Act.
3.0 Committee’s Observations and Recommendations
3.1 To ensure regional representation on the Board, the Committee recommends that the number of Board Members be revised to eleven in order to cater for a representative from each province and the eleventh Member being the Chairperson of the Board.
3.2 Treasury should ensure that the Authority is adequately resourced to enable it to execute its mandate effectively.
4.0Conclusion
4.1 The Committee was pleased with the Bill and recommends it to the
House for adoption with those few recommendations.
HON. CROSS: Thank you Mr. Speaker Sir. I want to endorse the views of the Committee and just emphasise one or two points which the Committee raised for the benefit of the Minister. The first is the question of the provision of services of a professional nature by engineers, architects and accountants when they are providing services to clients. At the moment, the Bill provides for these to be tendered in the same way as other goods and services. Your Committee had representation from the professions saying that they do not think that this was a good idea. The present practice of each individual professional association publishing their fees and then seeking to win jobs on the basis of the quality of the services they can provide is in fact a better solution and the Committee strongly agreed with this recommendation. So, we would like to see that particular element attended to…
THE HON. SPEAKER: Hon. Matambanadzo and the other two
there, please listen. Thank you.
HON. CROSS: The second thing I want to emphasis for the
Minister’s consideration is the issue of the number of board members and the need to have representation from each province in the country. When the board sits to consider its oversight function of procurement activities within provinces, local knowledge and information is going to be critical. I believe that by having one representative from each province on the board will enable those members to in fact represent their provinces and report back to the board the information they are receiving regarding procurement activity by local authorities and other state enterprises within their provinces. I think this is going to be critical to the efficient function of the oversight responsibilities of the board.
Thank you.
HON. NDUNA: Thank you Mr. Speaker for giving me the opportunity to add my voice – [HON. MEMBERS: Inaudible
interjections.]-
THE HON. SPEAKER: Order, order! The chorus for the diesel is over now – [Laughter.]-
HON. MARIDADI: On a point of order! When Hon. Mkupe
walked in, I heard the murmurs of diesel, fuel and water. Well, I do not know what that means but I would like to welcome him and wish him well for the reminder of the day – [Laughter.] - Thank you.
HON. NDUNA: Thank you Mr. Speaker for allowing me to add
my voice. I want to applaud the Minister for bringing this Bill of Public Procurement and Disposal of Public Assets. Mr. Speaker Sir, it actually gets me elated in that it brings a sense of independence and also a board that can oversee on a procurement or entity or Committee.
Now, therefore, Mr. Speaker, one would want to now look at and interrogate the credentials of the procurement Committee and compositions of all those that are disintegrated. For instance in councils, where I come from, where you would want a Committee to be composed of people who in themselves have no history of land misappropriation; who themselves have no history of disposing of houses for the citizenry in a manner that is not formal or that is not mainstream. In the same way that I would also call for representation to also come from all the provinces, up from nine members to what the Committee Chair alludes and accedes to of 11 members; I strongly feel that those credentials should be interrogated and the members found wanting and those that are a delinquent modus operandi and those that have a history that is checkered with misappropriating land and houses should not be involved in procurement Committees at council levels.
I also want to add my voice as has been alluded to by Hon. Cross in that we have Engineers Council Zimbabwe and Zimbabwe Institute of Engineers, which two bodies are established by an Act of Parliament, separately. They require about 5% of any infrastructure development monies so that they can have clear and good oversight in the operations of any infrastructure development in Zimbabwe. You will see that we have had the plant to Mutare highway, where our Zimbabwe Institute of Engineers and Engineers Council of Zimbabwe had little or no participation whatsoever because they were hamstrung in that they 5% that is supposed to accrue to them never got to them for them to effectively and efficiently carry their oversight and mandate. I call and I make a clarion call that this 5% starts accruing to them as enunciated in the Act that establishes them, so that they carry effectively their oversight role beginning with the Beitbridge-Chirundu highway, where I believe 5% of US$984 million on the Beitbridge-Harare highway would be about US$10 million. Then they can effectively carryout their oversight role, if they are capacitated in that manner. With those few words, I want to thank you for giving me this opportunity. I support this Bill in its entirety. I wish and hope that it has a good lifespan.
HON. MISIHAIRABWI-MUSHONGA: Thank you Mr.
Speaker. I stand to also add my voice to the report by the Committee. I think it raises fundamental issues around the issue of procurement.
Firstly, I would like to thank the Minister for bringing that whole aspect. Particularly, as we begin to look at our economy and considering the things that we can do in trying to save money. The area around procurement….
Hon. Ministers Made and Chinamasa making noise.
It will be nice Hon. Minister Made and Minister Chinamasa to listen a bit. Thank you. I am sorry, Mr. Speaker, it was not meant to be like that. My apologies before you reprimand me.
Mr. Speaker Sir, the area around procurement is one area in which leakages take place. Those people that have done analysis around issues of procurement will find that even as Government procures things like pens, you lose a lot of money if you calculate the number of pens that you buy for a Government Ministry, if you are not able to save 2 cents from it. This is where most of the corruption takes place and I am not sure how the Bill is going to address this.
One of the biggest problems that we have had with procurement in this country has to do with the issue around the State Procurement Board then, which was asking for vendor numbers. What it meant is that it did not matter that if you did an analysis in your Ministry and found that you could buy a ballpoint pen at 10 cents, if you do not have somebody who is going to supply you, who has a vendor number, you are forced to buy the same ballpoint pen at 15 cents.
Also, the issue of allocating vendor numbers had itself become an area of corruption because you needed to know somebody in this State
Procurement Board who would then provide you with a vendor number – [HON. MEMBERS: Hear, hear.] – Unfortunately, the vendor number means absolutely nothing. When you get a vendor number, no one has done due diligence to say we are giving Priscilla a vendor number for purposes of her providing sanitary wear, for example, my favourite subject.
You were basically given a vendor number for anything. So, the moment you have a vendor number, you have a vendor number of providing from vehicles to an aircraft down to a ballpoint pen. That in itself becomes an area that is problematic, particularly if we are beginning to live in an area where we are dealing with the latest methods around ICT. Most of the countries, to be able deal with issues of corruption, have now moved into what they call E-procurement.
What happens is you do not have to see the face of the individual. There is no negotiation. You flight a tender, somebody goes on and puts in the things that they are able to provide. So, the basis is made on the selection. You do not even need somebody who now sits and says what has come in. You set up a system that in itself automatically selects the particular person who is the best supplier. So, I view the issues about having board members to provide oversight but in terms of where we have moved in terms of technology, you actually do not need human beings, to be able to do that because they have noticed that in the area of procurement, the moment you put it in the hands of human beings, they can be subjective and are open to issues of corruption.
I am bringing this so that as we begin to debate the issues around procurement, we are discussing it in the context where the world has gone to. It is only here where you are told this road cannot be fixed because we are still waiting for the board to meet, so that they can discuss and they can then give a tender to someone. In other countries, it is a matter of 24 hours, it is put out there, people feed in and the system produces for you who the best person is.
I am however, not necessarily saying the issue that is being suggested about making sure that you have provincial representation is wrong. As you know Mr. Speaker, one of my favourite subject is the issue around devolution and the issues around representation. So, I agree but I do not want us to then address it in a manner where we are saying this particular individual who is representing the province will be able to deal with the issues that are to do with whether local people get preference. I am going to be bringing a motion in the next week or two. I have had problems trying to get information around it but to explain to you what this is all about; we have a major problem around issues of procurement. When people decide on whom to give a tender or to give a job, there is no local preference at all.
Let me give you one example, the Gwanda solar thing that happened was given to Wicknell Chivhayo. What was even worse around that particular tender is that he did not pay any particular deposit. There was nothing, he did not come with anything from the bank. So, any group in Gwanda could have gone to the Ministry of Energy and Power Development and said we want to be part of this solar programme because if it did not have to come up with specific funds, it did not matter who had money or not. However, my first problem is that when you are going to do something in a community, common sense says you want to find out whether the people in that community are able to provide that service or not. It makes absolutely no sense and I speak as somebody who represents the other side of the country. Most of the big tenders we have in this country, you are unable to find one tender which you can point at that has been given to someone from the Southern region. I do not understand whether that is because somebody is saying, all the people that are coming from Matabeleland are so daft that they are unable to get into the economic business of this country. There is something that is fundamentally wrong. It is so bad Mr. Speaker that you can even find local authorities in Matabeleland coming to give business to people who are in Harare. In most of those instances, they are cheated because no one knows where this person is coming from and they can lie that they have an office in here …
HON. MUPFUMI: On a point of order Mr. Speaker. She is trying to bring division between the people from Matabeleland and the Shona people. Let her discuss issues which are pertinent to what we are discussing.
HON. MISIHAIRABWI-MUSHONGA: I will just breathe and
decide that I do not engage in mediocrity, so I will leave it as it is.
THE HON. SPEAKER: Order, I have not ruled on the point of order. I want to draw the attention of the Hon. Member who talked about division between Shonas and Ndebeles. Your attention is drawn to Article 13 of the Constitution which is very clear. It says “bring about balanced development of different areas of Zimbabwe, in particular” –
[HON. MEMBERS: Hear, hear.]- “a proper balance in the development of rural and urban areas.” There is no mention of tribes here. In any case, you find Shonas in Matabeleland in as much as you find Ndebele speaking people in Matabeleland. So, there is no issue of division here.
It is a constitutional right.
HON. MISIHAIRABWI-MUSHONGA: Thank you Mr.
Speaker, I feel like jumping on top of the table but I will not do that. What I am coming back to, is that whole issue. First and foremost, I am glad that the report of the Committee did speak to the issues around domestic preference. So, I know I am buttressing the point that they raised. So, probably we may need within the Act, to create a proper and clear provision that there will be a particular preference. I am sure it would not be new to the way we do things. The whole basis of indigenous and gender preference is that you are acknowledging that you want to empower a particular group. So, if you say you will do a local preference to allow that if there are particular tenders that are in a particular area, you will call upon those that are in that community to do so. I am sure we can find a proviso that can clearly define that. Usually, if something is not put down clearly, people usually avoid doing these things because there is no legal framework for them to enforce implementation. So, I would be calling upon the Minister to look at how best that issue around local domestic preference can be dealt with, in particular around issues of tenders.
In the same light, I want to bring in the issue of gender preference. Again, in the same light, given the state of our economy right now, most of the resources and business that people are engaged are centred within Government and Government tenders. However, what we are finding is that you do not necessarily see women being given preference. I will give you an example of Kenya, which came up with a statutory instrument that gave gender preference to women. For every tender, 30% should be given to women. This has increased the level of economic empowerment for women in a manner that they tried to do in so many things. Let me give you an example; you want to create materials for hospital bed sheets in Bulawayo. What Mpilo is called upon to do is, if they are going to be buying bed sheets that cost $100,000, 30% of those bed sheets should be given to women coming from that particular community. The amount of resources that would come from Government and fall on women within those communities is amazing.
In conclusion Mr. Speaker, the one area I hope procurement will be able to look at is where people are making a lot of money, which is in the area of debt collection. You will notice that particularly with those that run legal firms. A person will be given the right to be the debt collector of a whole Ministry. I have one such person and I will bring it to the House when I bring my motion. This particular law firm covers the entire Zimbabwe. So, they got a tender to be the debt collector for the entire Ministry of Health. This particular lawyer does not have to do any work anymore. He does not have to go to court but can literally live on debt collection. They have a small office at Harare hospital, Parirenyatwa and Mpilo hospital. For every amount that they collect, they are given a particular percentage ranging between 5%-10%. All they are doing is simply to write letters to the debtors. What really upsets me – and this is true of ZESA which also has one particular lawyer who is doing that. I am still trying to find out what is happening with Wellcash in Harare because they are unable to give me the specific person whom they have given to do Harare City Council. However, what disappoints me Mr. Speaker is, why do you think that there are no lawyers in Bulawayo to do debt collection for Mpilo Hospital. Why do you have to get a lawyer who is coming from Harare to go and do debt collection at Mpilo? – [HON. MEMBERS: Hear, hear.] – Why do you think there are no lawyers in Masvingo who can be given the job to do debt collection for the hospitals in Masvingo? Why does that person have to be coming from Harare?
I think the whole issue around procurement Mr. Speaker, forces us to look at the whole issue around devolution; the whole issue of making sure that communities participate. We do not want to lie to each other. The issue around procurement is where money is made. Anything else can fall apart but Government will always need something. So, those that had found themselves in a Government space are the ones that are now making money. If you are not in that area which becomes a cabal controlled by a few, you will remain poor when everybody is paying tax. This is because procurement that we are doing is out of the tax that everyone of us are paying but benefits a small cabal who have buses in every other area. I thank you Mr. Speaker Sir.
HON. CHAKONA: Thank you very much Mr. Speaker. I also
want to add my voice to the subject matter of discussion. First of all, I want to highlight that the current status quo was very good at delaying projects. I would like to say that the process of just procurement would take no less than a year in State enterprises. Also, it was subject to legal challenges and so on. I hope and trust that the current Bill is going to address the issue of challenges around the person who would have been awarded the tender.
Mr. Speaker, there is need to also protect State enterprises that were incorporated for specific and special mandates. Let me give you an example. There is a company called ZESA Enterprises, which was incorporated by ZESA Holdings. That organisation was incorporated specifically to manufacture transformers, switch gears and other consumables that ZETDC uses. It is disturbing that whilst this organisation is there and manufacturing these components on behalf of these State enterprises, still the State Procurement Board would require ZESA and its sister companies to go to tender. Ninety five percent of the cases, they would actually buy from other private companies, suffocating ZESA Enterprises.
This is synonymous with even the ICT industry, where we have got PowerTel and Zarnet. These organisations were incorporated to offer specific and specialized services to Government and its State enterprises but that is not happening. Government and these other State enterprises are buying their services from non-State enterprises and I think this again is suffocating Government. We want to see money circulating within Government coffers.
Mr. Speaker, there are technological changes worldwide and I think the new Bill is going to look at issues to do with timelines by which procurement has to be done. I want to give you an example. NetOne went to tender in 2011 for the upgrade of their network. That tender was only concluded in 2014. In 2011, in the ICT or telecommunications industry, there was 3G. By 2014, technology had already evolved to LTE. What it means is, by the time the tender is concluded, the organisation is buying old equipment and technology and it does not make sense. So, there is need to have a timeline or a turnaround for buying, especially technology related equipment and services.
Mr. Speaker, there are issues to do with requirements for organisations that tender. There is this new requirement of tax clearance certificate and I am glad the Minister of Finance and Economic Development is here. Any organisation would obtain a tax clearance certificate, irrespective of the fact that it complies or it does not. There are very minimal requirements for an organisation to qualify for a tax clearance certificate. This tax clearance has become meaningless. All the organisations that are participating, especially in State procurement tenders do not pay any tax to the Government. If they do, they just pay minimum for them to comply with tax requirements. I think it is imperative that tax audits be done on these organisations that are actually getting large tenders because Government is losing money. It is being charged tax and that tax is not coming back to Government.
Mr. Speaker, I want to emphasise the issue of e-Government as my colleague has debated. We have become a nation that is technologically averse. We do not want to embrace technology. I do not know why we are not computerizing Government departments and procurement systems in this nation. I want to give you an example. The Department of Immigration right now has got a computerized visa system. However, if you go to the department, each time they receive a computerized application, they go on to open a manual file, over and above a computerized system. They are duplicating efforts, so it is rather they revert to the manual system. This is synonymous with everywhere. Even if you go to the Ministry of Lands and Rural Resettlement, there are files almost everywhere. Why cannot we computerize? Why are we not doing that? It expedites application and whatever work that we are doing. It simplifies and shortens the time that we do work in this nation.
Mr. Speaker, I will not overemphasise the point that my colleague also made that we need to empower locals whenever there is a tender. Right now, there is the Beitbridge – Harare road and we need to empower the people of Matabeleland South, Masvingo and
Mashonaland East to participate in these tenders. Mr. Speaker, I want to thank you for this opportunity.
HON. SANSOLE: Thank you Mr. Speaker. I would just want to
add my voice to the debate in support of this Bill. I think a lot of emphasis has been placed on procurement. There is another aspect of the Bill which relates to disposal. The pitfalls associated with procurement, the delays associated with central procurement and the corruption that has been associated with the State Procurement Board have been adequately dealt with.
However, if we look at the disposal side of it, there are also benefits that accrue to local communities as far as disposal of assets is concerned. I know the previous speakers have spoken about empowerment as far as tenders are concerned but there is also empowerment that accrues to locals in the form of having access to assets that are disposed of by State enterprises, Government departments and local authorities. For instance, sometimes you have motor vehicles sold by local authorities and Government departments – even small things like tyres sold by CMED, these were sold through some central department in Harare. If disposal is done at local level, the locals also have an opportunity to be able to bid and purchase those assets. So, I would like to support the Bill in that respect. I thank you.
HON. MUDARIKWA: I need approach this debate from a
different dimension. Our procurement must be categorised in such a way that for example, we have manufacturing procurement. If we want say for example, trucks, that tender must indicate that it is only people who are registered with the Ministry of Industry and Trade who are known manufacturers of trucks who can then tender. We have a situation where vehicles are being procured outside Zimbabwe and yet we have the facilities in Zimbabwe for assembling the vehicles. We have some companies that have got employees who are waiting to do the work.
Most of the work pertaining to vehicles comes completed from outside Zimbabwe. On manufacturing procurement, there is no one who will sell coca cola less than Coca Cola itself. Why then do you want to get a third person to say there is a tender for doing this when we know that it is Schweppes that manufactures Mazoe? Those things must not be tendered for. It is known we want to support our local industry; we must just go and buy there.
We have a situation where people are calling themselves businessmen because they just go and facilitate, get a tender and then bring vehicles outside Zimbabwe. Some of the vehicles are not even suitable for Zimbabwean terrain. That creates a situation where we have massive unemployment in Zimbabwe because there are no spare parts for those vehicles. There are no garages with equipment to give a back up arrangement.
Turning to e-procurement, that is only possible when you have people who are willing to use the system because these days when banks do not want to give you money, they just say our systems are down. The same thing will happen when you introduce e-procurement, the Tender Board will say our systems our down, let us go manual. It is the element of people who want to steal, they always look for ways to move away from things that are transparent.
There is this issue of sealed envelopes. I remember tendering to a certain organisation and then they said bring in your documents in sealed envelopes. Under the cover of darkness someone can simply put your envelope over hot steam, opens it to see your amount and put the lowest figure and gets the tender. It is so simple and this is how Government departments are buying very expensive goods. Even if we are to ask
now, what is the cost of a shoe or jacket? Suits here in town cost $15 but suits for Government messengers go for $180. You can just see how things are and all this at the end of the day does not benefit out economy because those suits are even imported from other countries.
Another issue is community procurement, like what has been mentioned, how do you get people digging trenches from Harare to
Gweru. There are some local youth there who can dig. They are there. Digging to us is nothing new because we have got the hoes and shovels, so what is so special about getting one company coming all the way from Harare to dig trenches of data cables? In other situations cutting of grass…
Interruption of microphones due to systems failure.
THE TEMPORARY SPEAKER: What is happening? What is your problem Hon. Member?
HON. MUDARIKWA: Even as I am debating Mr. Speaker Sir,
the tender for this equipment was not designed for tall people like us.
This was meant for someone with a Chinese height. It was approved and now we struggle. I saw Hon. Dr. Made, when he was negotiating the other day, he was talking as if he was trying to fly. These microphones are not built for the needs of our people.
We must have tenders that are clear and meant for indigenous Zimbabweans. Local banks must support that tender. We can have a nation of economic spectators where people from other countries come in to make money whilst we are looking. That is unheard of. We are economic spectators day-in and day-out. With all the level of intelligence in this country, the education we have got, the STEM that has been initiated by Hon. Prof Moyo, we cannot fail to have people to manage these projects. It is important that certain tenders must indicate that this tender is for an indigenous Zimbabwean.
On economic empowerment, we must just say this tender is for women. There is no need to say 30%. It is a tender for women who constitute 52% of the population. They have a right to be looked after. They have a right to be given preference because they are 52% of the population. We also have the youth; they must be given the same facility. How do you have a tender for supplying vegetables given to me, a man when there are women who have tendered? Any tender for supplying vegetables should be given to women because they are good at that. Our economic development will be nothing when we only have rich men and poor women. It is unacceptable in this day and age. We must have women who are masters of their own destiny, who can say I have won this tender, it is my responsibility and I am able to support it and then we can support them.
Lastly, if you check the amount of money that is spent on tenders per year and the amount of money that is coming to local Zimbabweans, it is less than 10%. 90% is going to foreigners. Even in other situations where our people have the capacity to do it, that thing is not being possible. It is also important that one way or the other, our people must be protected. For example, when Zimbabwe was supplying beef to the EU, we were given a quota for EU and not a quota for Britain. There are certain things that we must say these things are for Zimbabweans. It is us here who make these laws and it is the same of our officers who implement these laws.
I want to thank you Mr. Speaker Sir for allowing me to contribute. As for the oversight role, the Committee chaired by Hon Chapfika must continuously interface with the Tender Board on how they doing, not to just wait for them; and after they have awarded a tender, we come here and start complaining when somebody is already dead and when all our youths are gone as most of them are now drug addicts because they have nothing to do. We have to do things that benefit our people. I want to thank you.
HON. D. SIBANDA: Thank you very much Hon. Speaker for
affording me this opportunity to also air my views on this interesting debate. Hon. Speaker, I expect that the Procurement Board should be independent – work independently from the three arms of the State. Also, when the board is being put in place, it should be approved by Parliament and there is need that on that board, if there are 10 members there should be 50/50 representation that is, five women and five men because that is what gender balance means. That is what we expect. When appointing the board, there is need for professionalism. Let us have people who are professionals, those who have the know-how of procurement so that there is less corruption on that board.
Mr. Speaker, on the issue of corruption, the Government should also put systems in place to try and cover up the loopholes in order to avoid corruption completely. Back home there, people expect that whatever is being sold at local level, 30% should be given to Government and 70% should go back to the locals – that is decentralisation of the resources. There is also a tendency of the Committee members of the Tender Board to be also bidding. When vehicles are being sold, they are also there bidding for those vehicles.
Mr. Speaker; we do not expect any one of them to be part of the bidding because that is corruption. Then, there is also need for adverts; they should be put well on time and people back home were also concerned and said sometimes we would not even be aware of what is happening – we just hear when the tender of the vehicles or whatever have been already sold. So when adverts are being done, there is need for them to also be done in vernacular so that everyone understands.
If the procurement is being done in Victoria Falls, it should also be advertised in Chitonga, Nambya or whatever language that is spoken there. If it is done in Bulawayo, we expect it to be done in Ndebele so that everybody, including the ordinary man on the street can understand that such a thing is happening. Thank you very much Mr. Speaker.
*HON. MAPIKI: Thank you Mr. Speaker. I thought I would just add my voice to the debate. I would want to believe that the manner in which the Bills crafted should benefit even the small to medium enterprises because the informal sector is now the backbone of the Zimbabwean economy. Glen View for instance, is now manufacturing chairs and so sofas. People even go to buy these products at a lower cost. They will have secured these tenders and then they come and put a mark-up which is four times. They would have passed the Standards Association test. We do not encourage the people that are in the small to medium enterprises who were supposed to receive 25% of
Government’s business. When you observe the people that are in that particular sector and what is in circulation, the study conducted by
FISCO says that $8 billion is in circulation in that sector of the industry. So, in light of that, Government whenever it thinks of floating tenders, it should encourage Zimbabwean companies to supply.
We even have parking meter attendants from South Africa – they are the ones that won the tender and when we do not give them such tenders, we mourn that they are not paying taxes. How will they be able to pay taxes when they are not receiving such lucrative tenders? I urge Hon. Chinamasa to look into the small to medium enterprises sector – they sell their door frames or doors at a low price and when they supply to someone who has won a tender, they are making a killing out of that. We should be working towards ensuring that our own companies get these tenders so that we benefit from the low costs.
I was looking at Mtshabezi Hospital in Matabeleland South; they came to procure a tender in Harare for the sale of wood for their ceiling but, there are expects in Matabeleland who can put up very good ceilings. They came here to look for Harare briefcase cases and the money that was paid for such tenders is misused when trying to track them. They fail to understand them because they do not even have phones.
The other culprits are local authorities – in the manner in which they win their tender. Why would someone want a tender for the supply of vegetables which normally cost 25 cents but, they give tenders to one who buys at $1. Why not simply benefit from this because a lot of corruption would then be involved. We should look at our upcoming business that are in the small to medium enterprises in conjunction with the Indian Government, there is a company called Indo-Zimbabwe and it shows that a lot of businesses do not have the same competence and they cannot supply the same goods as those that are being supplied by this particular company. More often than not, their good work is looked down upon or frowned upon. We should be encouraging it and not only the large corporates. We should at a paradigm shift like other countries are doing so that we should not have tar macadamised roads but have concrete roads. In this country we have engineers. We should have engineers who are doing their work and not those that are merely introduced in title only at rallies. Let us promote the local engineers in Zimbabwe rather than have expatriates.
I was looking at another job where tenders were being flighted for riverbed mining and a lot of foreigners landed these contracts whereas, it would have been easier for us to employ our own local indigenous people to do riverbed mining. We have experts in that particular field and they should be benefiting. Those that we give that come from outside the country come here and loot our mineral resource and run away. It is easy to remonstrate with a local person than would be the case with a foreigner.
I will come to motor vehicles that need to be supplied for instance, to Parliament. You will see that the tender would be awarded to someone who manufactures motor vehicles, but, why is my motor vehicle now being imported from Durban? Why should Zimbabwean people not be given a tender to supply motor vehicles from knocked down kits. If that were to be looked, it would assist us as a country and it will develop our economy. I thank you Mr. Speaker Sir.
*HON. MATAMBANADZO: Thank you Mr. Speaker Sir for
affording me this opportunity to add my views on to this debate. That is in line with the Bill on the Procurement Board. My opinion is that as we look into this legislation, we must put in place measures that ensure that Government does not suffer any losses. Once the Government suffers losses, all of us will be blamed for having failed. I want to believe that whenever there will be a tender, there will be a budget. Once the budget is done on what needs to be procured, for example, ZESA, a certain amount will be put aside for the purchase of transformers. For instance, if it is US$200 million, there should be a law in place to say that the supplier of the tender should not exceed US$200 million mark.
Secondly, the company that is awarded the tender should complete its work and paid a stipulated amount. We should not have a situation where a company with the lowest bid is awarded the tender and then they undercharge. For example, for a job worth US$200 million, the tender will be at US$100 million and then ways are crafted to defraud the Government. Upon using up the US$100, they will then request for US$50 million, subsequently followed by US80 million. By so doing, it will exceed the limit of the tender pegged at US$200 million.
Hon. Minister, it is your job because it is you who will be blamed and we are also indirectly blamed. I am saying that contractors should give a timeframe and they should not undercharge. Once there is undercharging and failure to complete the project at the stipulated time, the two parties to this contract, the contractor and the one who won the tender, should both be fired or measures should be taken to ensure that they are brought to book. We should come up with stringent measures and we should not continually mourn that a lot of money is being defrauded. We need to come up with stringent measures in the form of legislation.
If the tender is from Kwekwe, local people should be given first preference to the tender in question because they are not going to enjoy the benefits alone. If I am given a tender to repair roads in Kwekwe – if a local person is given that contract, they may have a bulldozer and a tipper and they may get other equipment from Harare. We are saying that there should be coordination in terms of equipment between a local person and an outsider so that they collaborate on the work given such tenders. This should be the law. I believe that is all I intend to contribute on that Bill. I thank you.
HON. J. TSHUMA: Thank you very much Mr. Speaker Sir. May I also add my voice on this very important matter. I will start by giving you a narration of what I saw happening in front of my eyes. In my
Constituency, Pelandaba Mpopoma, there is a big stadium called White City. That stadium was renovated, I think sometime in 2014. When it was being renovated, guess what happened, a contractor from Harare was given that job. When they came to Harare, what saddened me most was that, simple jobs were taken up by people from Harare at the expense of the youths who are in my Constituency, in Pelandaba, Minyela and Mpopoma. They could not find employment there. When the contractor came and did everything, which was substandard, he fled after our intervention and the few people who were contracted to go and work there, were not paid their money.
The problem is that for us to start following up on that person became difficult because he did not come from Bulawayo, he came from Harare. That was a very painful and saddening issue which is still pending to this day. I have got youths in Bulawayo who were not paid but worked for a contractor from Harare for a project in Bulawayo. That is where the problem is.
So, Mr. Speaker Sir, the reason why I am saying this Bill is very important is to make sure that we lock down these things, sonke sifuna ukukapula. Let the people in Bulawayo also kapula because they are also as human as anybody else. Once we go into this thing, let it be made clear that we shall not compromise on that because we end up looking like we do not – that is where even the question of marginalisation, this and that comes in. We will not be able to handle it in a proper manner because of simple things like this.
Mr. Speaker Sir, I want to say that, definitely, let us support this Bill and make sure that from now onwards, let the person who stay there enjoy the benefits of staying there by being given the opportunity from there. I will give you another typical example. I was also saddened when a tender came out at Mpilo Central Hospital and someone from Harare was given that tender. I was saying to myself, really, do they think that we are so abnormal or useless that we do not deserve to eat or partake this national cake? I hope that all these issues – [HON.
MEMBERS: Inaudible interjections] –
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Order, order. Hon. Members lower your whispers please, you are making a lot of noise. We cannot hear what the Hon. Member is trying to put across.
HON. J. TSHUMA: I think there are some people with that mentality, who think that if you start speaking about Matebeleland, you are being tribal, which is not the case. We are not being tribal, we are being factual. It is a fact that things have not been going well and need to be corrected. I am glad that this Bill speaks to all these truths and facts. Mr. Speaker Sir, all I am advocating for is that whilst we are here in this House, let us get things clear and straightened. This is not politics, it is business and when we talk of business, we are talking about survival. Talking of survival means the generation down the line stream. I hope that we will take this seriously, knowing that we are above politics. We are in an august House representing people. My people in Pelandaba Mpopoma Constituency suffered because of negligence of giving a tender to somebody from Harare which could have been done by someone in Bulawayo. I must say it, we will not take it lightly. I am glad that there is a Bill that seeks to address that kind of anomaly so that we all operate at the same level and sharing the national cake and everything is alright.
Mr. Speaker Sir, allow me to also bring your attention to the issue of the public asset disposal. I speak of this because I am aware that Government has properties like houses which were built a long time ago, even in the Rhodesian era, which are being used by teachers and others.
I hope that this Bill will also address that so that the people who have been living in those houses become the beneficiaries of these houses. Let us not have other people like Ministry Officials coming in to try and take away these houses from these people. I speak of this because I have an example of one teachers’ cottage in Pelandaba which has been there time immemorial. Now, because disposals are about to happen, other people are now eying to disperse the people who have been dwelling in those houses from time immemorial – that should not happen. Let us have the people that are in those houses being the first people offered to get those houses and when they get them, please I hope that the Bill will address the issue of how much they should be paying rentals. They have already been paying rentals for these houses for over 30 years now, so I hope that this Bill is going to also look into that issue so that we play fair with everybody feeling that they are part of this system because we are a Government of everyone. I hope that this Bill will address that.
With these few words Mr. Speaker Sir, I want to thank you for giving me this opportunity to air my view especially about Matabeleland but not in a tribal manner. We are not being tribal – in Matabeleland, we have got our fellow brothers who are from Mashonaland but now they are part of us. I can tell you about people like the Vurombos, vana Vera, vana Madzimbadondo, they are now part of us. When I say
Matabeleland, I am not saying Ndebeles but everybody who has interest in Matabeleland whether they are Shona, Kalanga, Tonga or Venda but we are from Matabeleland. I thank you.
HON. GABUZZA: I just want to raise a few points. Firstly, traditionally procurement has been always under the Office of the President and Cabinet. I think Mr. Speaker; let me hasten to warn that I think it is not a good idea if the Bill still wants the procurement to be still under OPC. Procurement itself has a lot of problems, abnormalities, a lot of favoritism, a lot of complaints. If we keep on continuously putting it under the Office of the President, in my respective view, I think it reduces the credibility of the office of the President, when we continuously see a lot of court cases, challenges, overhaul, what could have transpired and a lot of corruption. So, it is my respective view that in the next Bill we must consider finding a different home for this Procurement Board.
Secondly, Mr. Speaker, in Botswana you cannot employ anybody who is not a Mutswana. If you do that, you have to prove beyond reasonable doubt that you advertised three times for that particular job and you could not find a Mustwana. I think if we look at what is being proposed in the Bill, there is the issue of domestic. Domestic must mean domestic and not mean Zimbabwe, it think it must mean domestic. Charity begins at home as they say. When we do our procurement advertisement and processes, we must be able to categorise that whatever company is tendering or is about to procure some services, they must prove beyond reasonable doubt that within the district there was no company or companies that were able to tender and capable to supply a service. If there is that proof that they could not get, then we must move to a regional level within that province; then we open it up to the nation. By so doing, I think that question of equitable distribution can be fairly realised. If we just leave it to say domestic means Zimbabwean, it will be the same people and usually same criminals getting jobs and benefiting the same people and usually those who are highly connected and those who are able to pay a better bribe than the other smaller guys and those who have access to information.
I think the Bill must have stages or categories to say we start at district level, if we cannot get anyone, then we move on. Failure of which, maybe I would suggest our system categorises procurement in such a way that we say beyond a certain amount these are open to national tenders. Below a certain value, we do not open it to everyone but it is restricted to local areas. If we do that, I think there will be a mechanism of trying to benefit everyone especially at local level.
The other issue Mr. Speaker is the issue of the Procurement Board. I think from experience, if you put a static board, it normally faces challenges because tenders come in various forms, technicalities, one time you are tendering for the services of cricket carpets, the other time you are tendering for a motorized grader, the other time you are tendering for an aeroplane. I think within the board, there must be a leeway. That board must be flexible enough to say we have certain permanent members but once in a while they must be able to bring in certain skills which are not available when they are dealing with a particular matter. It is very important because in most cases you get people presiding over an issue that they do not have any knowledge or understanding about and eventually give the wrong person because the specifications were beyond their imaginations.
The issue about E-procurement, I think it is something that we must proud ourselves given that we are one of the most educated nations. Why should we still be using paper work? A good example is that we have a very brand new airport at Victoria Falls. I went there over the weekend, two aeroplanes came in, B.A and South African Airways at about 1200 hours but tourists started coming out after about 3 hours at 1500 hours because all the system was manual. To get a visa, the immigration had to write it physically, put an amount, no receipt given and clearly you could see it was meant for abusing the funds. Why would it take, when we need tourists so much and we need to do business so well, we have to take three hours to clear tourists? This is because we do things manually and everyone I think from those developed countries, really got shocked and asked why we have to struggle to write a visa by hand. It is the same thing with procurement. Let us go e-procurement – that is the modern and fast way of doing things. I think this cannot be over-emphasised. If it is possible, the Bill must clearly reflect that we must be moving towards achieving that. Having said that Mr. Speaker, I think I would wish to support the Bill and possibly propose amendments at the appropriate time.
HON. ZINDI: Thank you Hon. Speaker. I am just going to highlight a few areas because most of the things have already been said. I just want to mention that this is a State purse or State resources and everybody is looking at the State purse. When we are looking at the State purse, State is the highest spender and everybody is looking at that and internationally.
Therefore, when it is like that, I would like to emphasise the point that we need to make sure that the local people benefit as a result that most of this money have been raised within the state as well through taxes. It is our own money but it is money now being taken, which would end up benefiting foreigners. If we do not revisit the issue of having to support local people; for example, I always want to point this road, the Plumtree- Mutare resurfacing that is a South African company. Of course, I understand local people were part to that deal but it was not that easy for the local people to be part of that deal, Group Five. There was quite a fight in order for them to be recognised, though of course they also did a mediocre job but at least there were local people who got part of that deal.
Now what it means is, if we focus on foreigners, without also bringing the component of the local people, the money is then taken out of Zimbabwe, hence the situation we are facing to say that we no longer have enough money in circulation, in particular US$. United States dollar is a sought after currency world over. This is what we are using to transact business. Therefore, we are an attractive market internationally and everybody would like to come to Zimbabwe because they know they get the US$. Therefore, I am proposing Mr. Speaker and it may sound like repetition but I think it is important. Sometimes repetition is emphasis of an idea, that we go e-procurement, we categorise what should be local tenders for local people and that should not go international.
I am saying as well, when we get to the point of saying this is a tender to be flighted nationally or internationally, we have to look at the aspect of saying you do not have the local expertise in order to execute that kind of a job or a deal. That way, I think that will encourage circulation of money. It will also motivate our local people even to pay tax. As the Minister of Finance and Economic Development, last week he was complaining that Blacks have a culture of not wanting to pay tax. If they know that they have access to State procurement, State purse, they will be encouraged to be part and parcel of having to remit their taxes but if it is money that is taken by foreigners, sometimes they end up asking, why then should I contribute to the State purse?
I also want to give an example Mr. Speaker. The Black Economic Empowerment Policy in South Africa, was created particularly to support the local people. Therefore, pachivanhu tinoti gugara nhaka huona dzevamwe. If the South Africans are doing it and it has brought positive results, of course there is no system which does not have merits and demerits. It has its own merits and demerits but we need to look more on the issue of saying how many and how effective has that system been in South Africa. To a larger extent, it has been effective.
Therefore, there is nothing that can stop us as we amend this
Procurement Bill, to look into the aspect of considering the aspect of the
Black Economic Empowerment Policy that had been adopted in South
Africa; looking at the past, how we have been performing through the State Procurement Board.
Hon. Mudarikwa gave us an example of saying, tall people like us have to bend in order to reach this microphone because the tender perhaps was given to the Chinese and Chinese being short people, this is their good height. So, we have to adjust ourselves and sometimes end up with back pain because we need to adjust to the height of the Chinese which does not fit us. Really Mr. Speaker, I think when we have the Bill amended, it has to look into that aspect.
The other aspect I also want to raise is the fee that is demanded in order for a company or for one to participate in a flighted tender when you are to bid. Sometimes they raise it so high to the extent that the local people will not be able to participate. I think last time it was US$100. You pay that US$100, you access the papers, you are given that vendor number but no job will ever come through to you simply because you are not well connected but this is already US$100 that has gone. So, I think a revisit as well when we categorise international and local tenders, is to come up with a fee structure that suits the local people.
Finally, decentralisation, I think we need to emphasise on that. When this Bill is amended, it has to look on the aspect of saying whatever tender, let us look at that district, in that province and let us also look at the aspect of women and youths. It is important – yes Hon.
Mudarikwa said it but I think we need to emphasise it as well from the women’s point of view, me speaking here, that women we need to actually have a say. We need to have a participation in the State procurement because as I said earlier on, these are all monies that have been contributed to through taxes, levies et cetera in order for us to come up with that State purse and let the women also have a say in that because most of them you find they are companies dominated nevarume so we are saying madzimai nemayouth let them be part of it. With those few observations, I thank you Mr. Speaker.
HON. MUSANHU: Thank you Mr. Speaker Sir. I rise to point out some few remarks on this debate. Mr. Speaker, if all Zimbabweans were patriotic, I do not think the Minister of Finance and Economic Development was going to have any problem with having deficit on the budget. What it means is, every Zimbabwean who was going to benefit would actually employ and the people who are employed would pay tax so that the Government can have some funds.
On this issue, if you look at my Hon. there, the Vice President of MDC, if you look at the label of his suit, it is not a local suit. It is an import and if you look at all the other Hon. Members around, the clothes that we are putting on are actually imported. That shows that the mind of people has a mentality or we also have an inferior complex that if you buy the local material, you are degrading yourself. Given that even the Minister of Agriculture, Mechanisation and Irrigation Development here has actually said that genetic cotton is not permissible, most clothes that are worn in this Parliament are made out of genetic cotton which shows that we sometimes refuse to do some things but at the same time we are doing the opposite thing on the other side.
I just stood up to point out those few sentiments. I do not want to repeat what has been said already. With these few remarks I have made, it would go a long way and it would help our Minister of Finance and
Economic Development if we become patriotic and help our
Government to collect as much revenue as they require. I thank you.
HON. ENG. MUDZURI: I just want to add my voice to the
Procurement Bill. I would want tomorrow to bring written comments to the Minister from the Zimbabwe Association of Consulting Engineers which they have presented asking you to look clause by clause in terms of their concerns. It is just unfortunate that I did not bring them. I will try to bring a copy to you.
On procurement, it is important to recognise that it is best practice to have the best procurement standards. It is unfortunate that sometimes our institutions are not very much prepared to do best practice. I think the Minister’s effort, if it is complimented by the appointment of a board of people who are truthful and nationalistic who really want to see this nation moving forward, we are likely to have decent results on the decentralised form of procurement.
What I want to put across is that procurement must be complimented by people who are competent. If you look at the bridges which are not properly constructed, once rain comes they are washed away because there is no complimentary work in terms of a design to DDF. While we say the work is good, the community has done its work we are also not looking at the quality of work we are doing.
I remember the other day we were also speaking to the quality of engineers we are recruiting in Government. I was looking at a pothole which was filled the other day along Masvingo road. We were sitting inside it and this pothole was filled while I was watching. We insisted on quality of work. There are certain standards that are kept in terms of just doing pothole patching. We have spent a lot of money patching but within no days the whole pothole will be gone. So, we will have put money but it will not last. There is always a need to have a balance between the quality and the quantity of work done. We are always so expedient on the quantity and probably over indigenising.
Indigenisation is very important but we must create our international markets. We must create economic destinations for our products. When the Minister comes and says let us try to have areas where we have value addition, we must be prepared to build industries that are competitive internationally. When you value add and something is not going to be marketed externally, we are still not doing much to our economy. While we want to be very local and want to use our people, we must always balance our Standards Association of Zimbabwe with what happens internationally. If we think that our standards are superior we can always use the standards of Zimbabwe outside the standards of external agencies but we must ensure that the standards are competitive when we try to export the product.
I must hasten to say we have talked about buying local suits according to Hon Musanhi but what we should do is to ensure that the standards of the clothing we make is competitive for the market we are destining it for. We are such a small population of 14 million people and when we are 14 million, we must be exporting our goods to larger markets. If we can make things cheaper than in China, the population of China will be able to buy from us. If we can make our product cheaper for the market in South Africa, then we will be able to do our marketing in South Africa. A combination of those factors will bring our industry to the fore. If we do not work towards a common good, we are going nowhere because we end up with a product that is not marketable and we end up trying to sell it locally by force and still will not get a market.
With these few contributions and the document which I will bring to the Minister tomorrow, I want to thank you.
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Thank you Mr. Speaker
Sir and I want to acknowledge the contributions made by all the Hon.
Members. I will just mention them by name; the Portfolio Committee
Chairman, Hon. Chapfika, Hon. Nduna, Hon. Misihairabwi-Mushonga,
Hon. Chakona, Hon. Mudarikwa, Hon. Sibanda, Hon. Mapiki, Hon.
Matambanadzo, Hon. Tshuma, Hon. Gabbuza, Hon. Zindi, Hon. Musanhi and lastly Hon. Eng. Mudzuri. I thank all of you for your contribituions and more importantly, for the support that you are giving to the Bill.
I just want to underscore that this Bill is about decentralisation to procurement authorities. Currently, the State Procurement Board is procuring for all procurement entities and these include local authorities of whatever size, parastatals and line Ministries. With the enactment of this Bill procurement is going to devolve to these procurement authorities which means that, each line Ministry will have a procurement unit. Bulawayo City Council will have a procurement unit so is Harare Municipality and so are parastatals. But, they will not be given that responsibility until they have been trained on standards and norms of procurement and procedures. Obviously, municipalities like Bulawayo and Harare could get that function quickly, compared to other municipalities and town boards. That is what this Bill is about to do – to devolve that procurement function from the Central Government so to speak, to the procurement authorities. The State Procurement Board is going to remain but with a different function; that of regulatory. It will regulate and monitor all the activities of the procurement entities. So when you are talking about who should be on the board and so on, it is no longer quite relevant because each procurement authority will set up its procurement unit at a local level, and then discharge its function.
So I want to say that, the contributions which were made, I want to go and reflect on some of the proposed amendments that were suggested. In particular I want to reflect more deeply on what Hon. Eddy Cross said about procurement of professional services - for architects and engineers. I think that there is merit in his argument, that when you are procuring engineering services, clearly the fee structure is as determined by their institute and it is applicable to every engineer. What is an issue is the quality of the service. So, we want to look deeply into that to see what can be excluded from the tendering and what can be included. I will need more time to reflect on that.
Hon. Misihairabwi-Mushonga, just for the record, I think we need to understand that yes, when we are procuring from Gweru, Kwekwe and Gwanda, we need to look at what expertise is available. But if that expertise is not available, we should look nationally. I also want to say this Hon. Misihairabwi-Mushonga, you need to know that while the road from Mutare to Plumtree was given to Group Five, the actual contractor was a Bulawayo company. I am just talking about the issue raised about discrimination and so on. The company that did the Mutare to Bulawayo was a Bulawayo company. So, you need to know that. But, I think it was also because it had capacity. I know the company has the capacity and I do not think that we should shy away from employing a company which has capacity because we think that it does not come from the area where the contract is to be performed.
We have contracts here which some of them are of a sophisticated nature. Bulawayo Power Station; of course you do not expect that the expertise would be resident in Bulawayo. Anyway, in the case of the Bulawayo Power Station, because of the nature of loans conditionalities, the contractor is an Indian company because we got the loan from IndiEximbank but, we do negotiate with them to see that they also incorporate procurement of local materials where that is possible. But clearly, the machinery would have come from India in this case.
So, again you raised the issue of procurement of lawyer services and so on. Again but to think about it, I should not be forced to hire a
lawyer whom I do not like - [HON. MISIHAIRABWI-MUSHONGA:
Inaudible interjections.]- no, I should get a lawyer whom I am comfortable with, who can advance and defend my interests. So, it should not be a surprise and generally clients Mr. Speaker Sir, follow their clients. If a Bulawayo lawyer located to Harare, you will find that clients from Bulawayo will follow him even to Harare because they are used to expecting a certain quality of service from him. The Hon.
Member (Hon. Gonese) who has just sat near you, he gets clients from
Harare, yet he is located in Mutare –[HON. MISIHAIRABWI-
MUSHONGA: Inaudible innterjections]-
I do not know about that but clearly I know that there are lawyers in Mutare who get clients from Harare. There are lawyers in Harare who get clients from Kwekwe; lawyers in Kwekwe who get clients from Harare and I do not think that it is an issue that we should worry much about, where you procure your lawyers.
Hon. Chakona, thank you very much – I am also going to look into the issue about what these vendor numbers are about and whether in the past there has been an abuse of vendor numbers. I am also going to look into the issue of tax clearance certificates – in what circumstances they are issued in order for entities to qualify to participate in public tenders. Another issue that I am also going to look into is the procurement of technological and engineering solutions. We also need to look at and see whether this can be incorporated as a requirement in most of what we do if there is local capacity for supplying these services.
Hon. Mudarikwa, I got you and Hon. Sansole thank you for your support. The point that I got from Hon. Mudarikwa is basically that which is not quite to do with procurement – where you have five or so telecommunications companies digging parallel trenches and each trench containing a fibre optic which has capacity for all the five. That is a different problem which in the area of telecommunications, is being handled through the Ministry of ICT.
Hon. Gabbuza, I thank you and I think I have also understood the contribution by Hon. Matambanadzo for localisation and also Hon.
Tshuma for localisation. Hon. Mudzuri, I am waiting for the submission of the proposals from the Zimbabwe Association of Engineers so that we can see whether we can take any of their suggestions on board.
With those remarks Mr. Speaker Sir, I now move that the Public Procurement and Disposal of Public Assets Bill (H.B. 5, 2016), be now read a second time.
Motion put and agreed to.
Bill read a second time.
Committee Stage: Wednesday, 8th February, 2017.
ANNOUNCEMENT BY THE TEMPORARY SPEAKER
REPORT RECEIVED FROM THE PARLIAMENTARY LEGAL
COMMITTEE
THE TEMPORARY SPEAKER: I have received a non-adverse report from the Parliamentary Legal Committee on the Appropriation Bill, (2017) (H.B. 14, 2016).
Second Reading: With leave, forthwith.
SECOND READING
APPROPRIATION BILL, (2017) (H.B. 14, 2016)
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, the
purpose of the Appropriation Bill is to give effect to the main Estimates of Expenditure for the year ending 31 December, 2017, which I tabled in this august House on 8th December, 2016.
Section 3 of the Appropriation Bill, charges the Consolidated Revenue Fund with a sum of US$3,426,289,000, which relates to the 2017 Vote Appropriations.
The Vote appropriations seek to ensure realization of the overall objectives of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZIM ASSET), 2013 – 2018 programs and projects under implementation by the Government.
The 2017 Budget policy measures include, among others;
- Enhancing production across all sectors of the economy through giving greater and more urgent attention towards the supply side interventions;
- Strengthening of social safety nets in support of vulnerable groups in line with the objectives of our Interim Poverty Reduction
Strategy Paper (IPRSP) for 2016 – 2018;
- Containment of expenditures, particularly employment costs in order to re-orient the thrust of fiscal expenditures towards service delivery and infrastructure development, particularly in the Energy, Water, Transport and ICTs subsectors.
Mr. Speaker Sir, Section 5(1) of the Bill empowers the Minister of Finance and Economic Development to transfer funds already approved by Parliament between Votes in respect of a function or responsibility transferred between Ministries and Departments during the course of the
Fiscal Year.
Section 5(2) of the Bill allows discretion by the Minister of Finance and Economic Development to transfer funds from the Unallocated Reserve, which appears on the Ministry of Finance and Economic Development Vote to any other Vote as and when the need arises in order to meet inescapable expenditures.
In addition, and if necessary, the Minister of Finance and Economic Development can vary the amounts transferred by taking back any surplus for reallocation to other Ministries to meet demands that may arise. Mr. Speaker Sir, I accordingly move that the Appropriation Bill, (2017) [H.B. 14, 2016] be now read a second time.
Motion put and agreed to.
Bill read a second time.
Committee Stage: With leave, forthwith.
COMMITTEE STAGE
APPROPRIATION (2017) BILL, [H.B. 14, 2016]
House in Committee.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT: Madam Chair, I put the amendments to the schedule standing in my name. These are the amendments that I have already explained during the debate last week that;
On page 2 of the Bill, in Section 4 (schedule), paragraph 2 (Parliament of Zimbabwe), under Sub-Vote II replace “26, 245, 000” with “35, 245, 000” and adjust the Vote Total appropriately to reflect “39, 713, 000”.
On page 3 of the Bill, in Section 4 (schedule), paragraph 5 (Finance and Economic Development), replace “281, 191, 000” with “206, 374,000”.
On page 4 of the Bill, in Section 4 (Schedule), paragraph 16 (Higher and Tertiary Education, Science and Technology Development),
- Under “Programme 1”: delete the words “Administration and
General” and replace them with “Policy and Management”.
- Under “Programme II”: delete the words “Teacher Education” and replace them with “Human Capital Development”.
- Under the renamed “Human Capital Development” programme, replace “193, 272, 270” with “259, 089, 270”.
- Under “Programme III”: delete the words “Technical Education and Training”, and replace them with “Science and Technology
Development”.
- Under “Vote Total” replace “200, 886, 000” with “266, 703, 000”.
On page 5 of the Bill, in Section 4 (schedule), paragraph 17
(Youth, Indigenization and Economic Empowerment), under
Programme V: Human Capital Development, replace “4, 901, 279” with
“4, 271, 279”, and adjust the Vote Total appropriately to reflect “17, 192, 000”.
On page 5 of the Bill, in Section 4 (schedule), paragraph 23
(Women’s Affairs, Gender and Community Development), under Programme I: Policy and Administration, replace “637, 890” with “747,
890” and adjust the Vote Total appropriately to reflect “8, 434, 000”.
Amendments to the schedule put and agreed to.
Bill reported with amendments.
Bill referred to the Parliamentary Legal Committee.
MINISTERIAL STATEMENT
CURRENT STATUS OF VAT ON BASIC GOODS
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir I crave the
indulgence of the House to issue a Ministerial Statement. The Ministerial Statement is concerning the current status of the VAT on basic goods.
Mr. Speaker Sir, you will recall that in the 2017 National Budget, I propose to introduce VAT at a standard rate of 15% on products which include rice, margarine, cereals, maheu, potatoes, meat (pork, beef, fish and chicken). The basis for standard rating the products is mainly due to the need to rationalise the schedule of zero rated and exempt goods in order to broaden the tax base and minimise the cost of tax administration.
Mr. Speaker Sir, Zimbabwe, together with other SADC Member States, has ratified the SADC Protocol on Finance and Investment. Under the Protocol, Member States are mandated to harmonise taxation matters and coordinate tax regimes.
In an endeavor to harmonise taxation matters, the SADC region has developed VAT guidelines which enable Member States to sustain and enhance tax revenues on an equitable and efficient basis.
Member States have, thus, agreed that the list of zero rated and exempt products should be streamlined in order to achieve the following objectives:
- Broaden the tax base;
- Enhance revenue generation;
- Promote administrative efficiency;
- Minimise corruption
- Ensure similarity among Member States; and Enhance equity and fairness among others.
Mr. Speaker Sir, in the SADC region, Zimbabwe has one of the longest list of zero rated and exempt products. The list of zero rated and exempt products include, but not limited to the following:
- Grains such as maize and wheat;
- Mealie meal;
- Bread;
- Cooking oil;
- Salt;
- Milk;
- Fruits;
- Vegetables;
- Eggs;
- Inputs for manufacture of cooking oil;
- Soya beans;
- Protective clothing;
- Animal feeds and remedies;
- Pesticides;
- Fertilizers;
- Medical services;
- Selected pharmaceutical products;
- Domestic supply of electricity;
- Domestic supply of water; and
- Supply of goods such as books, typewriters and maps for use by physically challenged persons, among others.
Countries such as Namibia, Lesotho, Malawi, and Zambia have a minimum list of zero rated and exempt products. Such countries charge VAT on products such as rice, fresh milk, fruits, eggs and meat products among others.
However, in our circumstances, following the debate that took place here and stakeholder representations, wherein concerns have been raised regarding potential informalisation due to perceived price increase, I propose to shelve the implementation of Statutory Instrument 20 of 2017 –[HON. MEMBERS: Hear, hear.]- Which levies VAT on potatoes, rice, margarine, maheu and meat products. This will allow for further consultation with relevant stakeholders and those consultations, I will start them with this august House. I need the august House to give me guidance. I must tax something to raise money to pay for service delivery, allowances, and wages. So, we need to have guidance so that we understand and agree on which items to tax. So, the consultations will start with this august House. I thank you – [HON. MEMBERS:
Hear, hear.]
HON. P.D. SIBANDA: Thank you so much Hon. Speaker. I think I was talking to a colleague of mine saying this Hon. Minister is so good that he is the only ZANU PF Minister who does not have a ZANU PF DNA –[HON. MEMBERS: Inaudible interjections.]- The importance of the step that has been taken by Hon. Minister is that these goods that we are talking about are basic necessities for Zimbabweans. The impact of taxing them is huge in terms of the cost of living of this nation. The impact that this would have especially on the small scale to medium enterprises would be huge which are the backbone of our economy currently.
However, I just want to seek clarification from the Hon. Minister, whether on meat and meat products, he includes also such products as kapenta fish. I come from Binga where our major source of income is fishing of kapenta so we want him to clarify whether kapenta is also within the bracket of those goods whose VAT has been set aside. Thank you.
HON. ENG. MUDZURI: Thank you Mr. Speaker Sir. I just want
to thank the Minister for his attitude. Honestly, if you listen to the people’s voices, then you are in a national leadership. Sometimes we do not listen and I just pray that the Minister keeps that spirit of listening to the concerns of the people.
Unfortunately for him, the economy is not improving. He wants to increase his tax base but the economy is not improving. Actually, if you look around Hon. Speaker, you will discover that there is a trend of people failing to pay rentals, even everything, they are failing to pay. So, I am not sure how we are going to jump start the economy and probably have some other sources of income. What we should try to do is to close anything that encourages corruption…
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Order, order, Hon. Vice President of the MDC, what I have said here was clarification not the debate but seeking clarification to what the Minister had said.
HON. ENG. MUDZURI: The Minister said if he can get other means of getting revenue and I am just saying the best means…..
THE TEMPORARY SPEAKER: He said he was going to
consult everyone, including this House. He did not mean now.
HON. ENG. MUDZURI: My final clarification is on meat and beef which type of beef or meat are we going to have concessions because there is tinned beef, raw beef and game meat.
HON. NDUNA: Thank you Mr. Speaker. I believe on the day he proposed that there be 15% to be added onto meat products, in particular because I am an owner of an abattoir, it happened immediately. Today, he has given this Ministerial Statement, it is my clarion call that this also happens immediately in terms of repealing that 15% VAT by retailers. Over and above that Hon. Minister, you have mentioned on issues to do with clutches and wheelchairs for people living with disabilities, it is also my clarion call that you also add on the zero rating those that were not there before, in particular Braille, equipment and some other model of clutches for people living with disabilities aware and cognisant of the fact that the budget increase did not occur for these people who are marginalised because of disabilities.
*HON. A. MNANGAGWA: Thank you Mr. Speaker. I thank the Minister of Finance and Economic Development for removing such taxes. We were failing to provide for our children and some children were now under nourished because we could not afford to buy nutritional foods. I thank you.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA) Thank you very much for
the contributions and for the clarifications sought. Hon. Sibanda, if the Statutory Instrument imposed VAT on fish and carpenter is fish, I am shelving it as per my statement. Hon. Mudzuri, thank you very much, this covers all types of beef. I cannot say off hand whether tinned beef is part of that. I doubt it, I think tinned beef should be different but all we are looking at is what did the instrument cover. Anything that was covered which was to take effect from 1st February, 2017 will now be shelved.
Hon. Nduna, I think I have to explain this VAT. As you know,
VAT is a transactional tax. It is charged at every level of value addition. In other words, if we take the example of a manufacturer, when the manufacturer sells to the wholesaler, he charges VAT. When the wholesaler sells to the retailer, the wholesaler charges VAT and when the retailer sells to the consumer, he charges VAT. This is why VAT is now the largest source of our revenue in terms of support to the budget revenues. It accounts for a very huge contribution to our revenue collection. Seconded, I think by Pay As you Earn. So, when we are looking for how to raise money, we are basically identifying those areas where there is a lot of economic activity.
A supermarket will fix its price, in the prices they do not include tax. You only know the tax when you get to the till. So, this issue about prices being increased, it is not seen in the shops but when you get to the till because of the VAT. If a retailer includes a VAT tax in the price, you can be sure that money is not coming to ZIMRA. It is getting into the coffers of the supermarket and that is not desirable.
I want to thank all of you who have contributed. Hon.
Mnangagwa, kwashiorkor had not come yet. It was only introduced on 1st February, 2017 and I think if you have not been buying meat, you cannot blame the tax. Mr. Speaker Sir, I thank Hon. Members and I hope that I have done justice to the clarification sought.
ANNOUNCEMENT BY THE TEMPORARY SPEAKER
NON-ADVERSE REPORT RECEIVED FROM THE PARLIAMENTARY LEGAL COMMITTEE.
THE TEMPORARY SPEAKER: I have to inform the House that
I have received a Non-Adverse Report from the Parliamentary Legal Committee on the Appropriation, (2017) Bill [H.B. 14,2016].
CONSIDERATION STAGE
APPROPRIATION BILL [H.B.14, 2016]
Schedule as amended, put and agreed to.
Bill, as amended, adopted.
Third Reading: With leave, forthwith.
Motion put and agreed to.
THIRD READING
APPROPRIATION BILL [H.B.14, 2016]
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker, I now move
that the Bill be now read a third time.
Motion put and agreed to.
Bill read the third time.
SECOND READING
ZEP – RE (MEMBERSHIP OF ZIMBABWE AND BRANCH OFFICE
AGREEMENT) BILL [H.B. 9, 2016]
Third Order read: Second Reading: ZEP – RE (Membership of Zimbabwe and Branch Office Agreement) Bill [H.B. 9, 2016].
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, it is my singular honour to move that the ZEP-RE (Membership of Zimbabwe and Branch Office Agreement) [H.B. 9. 2016] be read for a second time.
Mr. Speaker Sir, Honourable Members will recall that Zimbabwe is a shareholder of the PTA Reinsurance Company (ZEP-RE), an intergovernmental reinsurance company with a local branch office in Harare.
The Government, through my Ministry signed a Host Agreement with the PTA Reinsurance Company in June 2013 and that Host Agreement provides, among other things, that the Government of Zimbabwe shall grant certain privileges and immunities to the company, which privileges and immunities is a standard feature of such Host Agreements. Conferment of these privileges and immunities are consistent with the provisions of Article 40 of the Agreement establishing the Common Market for Eastern and Southern Africa.
It is upon that basis and in terms of Section 327 of the Constitution of Zimbabwe that the ZEP-RE Bill before you seeks to confer legal status to the PTA Reinsurance Company.
Benefits of ZEP-RE operations in Zimbabwe
The operations of ZEP-RE bring economic benefits that include, writing insurance business from the insurance market, improving the capacity of the local reinsurance business by bringing on the board strong shareholders as well as downstream economic benefits associated with insurance business.
A robust insurance sector for Zimbabwe will contribute to sustained economic growth and improved financial sector performance.
Growth and development of the insurance industry will in turn create more business for the ancillary service providers.
The operations of the reinsurance company in the country benefit the Government of Zimbabwe through a wider capital base for the subscription of prescribed assets.
Provisions of the Bill
Clause 4 of the Bill provides for the Minister’s powers in relation to the conferment of privileges and immunities upon the company, with Clause 4 (2) of the Bill allowing the Minister responsible for Finance to temporarily suspend the immunities and privileges conferred upon the employees of the company where it is in the public interest that such suspension be effected. Under the same provision, it is recognised that certain of the privileges and immunities cannot be conferred upon the company on a permanent basis and may therefore be granted for only a specified time period.
Article 2 of the First Schedule provides for the definition of the terms used in the Bill. Under this Article, “Host Agreement” means the Agreement between the Government of Zimbabwe and ZEP-RE (PTA)
Reinsurance ompany, and “Treaty” means the Treaty establishing the Common Market for Eastern and Southern Africa (COMESA).
Article 4 of the First Schedule provides for the treatment which will be extended to the offices and accommodation of members of the company. The Government has a duty to ensure that there are no unnecessary interruptions or intrusions which could have an adverse effect on the operations of the company nor the dignity of its employees.
Article 6 of the First Schedule provides that the company shall be entitled to operate foreign bank accounts pursuant to their business activities, provided that they acquire the required authorisations under the Exchange Control Regulations.
Article 8 of the First Schedule provides for the status to be accorded to the directors of the company as that of non-resident members of diplomatic missions and Article 9 further expounds on the privileges and immunities extended to other members of the company and the family members of those employees.
In terms of Article 10 (5) of the First Schedule, the interpretation of the privileges and immunities conferred upon members of the company are not to be construed to allow its employees to derive any personal benefit of any nature upon them. The privileges and immunities must be read within the broader context of achieving the objectives of the company.
Further, Article 10 (6) also provides that the Managing Director of the company may suspend the privileges and immunities entitled to an employee where it is in the interests of justice that this be done.
Finally Mr. Speaker Sir, in terms of Article 14, the Agreement, along with any entitlements arising there - from, shall terminate where the company relocates outside of Zimbabwe, or where both parties agree to terminate the Agreement. Mr. Speaker Sir, I now move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 8th February, 2017.
On the motion of the MNISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA), the House
adjourned at Seventeen Minutes to Six o’clock p.m.
PARLIAMENT OF ZIMBABWE
Tuesday, 6th February, 2018
The National Assembly met at a Quarter-past Two o’clock p. m.
PRAYERS
(THE HON. SPEAKER in the Chair)
ANNOUNCEMENTS BY THE HON. SPEAKER
LIAISON AND COORDINATION COMMITTEE MEETING
THE HON. SPEAKER: I would like to inform the House that the first monthly meeting of the Liaison and Coordination Committee meeting will be held tomorrow 7th February, 2018 in the Senate Chamber at 0900 hours. All Chairpersons of Portfolio Committees must attend this meeting. The Chairperson of the Parliamentary Legal
Committee and the Chairperson and Vice-Chairperson of the Women’s Caucus must also attend. All the relevant documents for this meeting have been placed in the pigeon holes of all the members who constitute the Liaison and Coordination Committee.
COLLECTION OF NOTEBOOKS
THE HON. SPEAKER: I wish to inform the House that all Hon. Members should collect their notebooks from the Public Relations officers who will be stationed at the Members’ Dining Hall from 1415 hours today during the sitting days.
HON. MISIHAIRABWI-MUSHONGA: Thank you Mr.
Speaker. I rise to make a point of privilege. I know that many times we have come to this House with complaints and I think when something good has happened, we need to acknowledge. I want to acknowledge, as women in the House, the appointment of the Commissioner-General for
ZIMRA and Judge Priscilla Chigumba, Chairperson of the Zimbabwe Electoral Commission (ZEC) who are women. I think it makes a difference that in those important areas, we are beginning to see women that are chosen on merit. I thank you Mr. Speaker. – [HON.
MEMBERS: Hear, hear.] –
MOTION
RATIFICATION OF THE MARRAKESH AGREEMENT
ESTABLISHING THE WORLD TRADE ORGANISATION
AGREEMENT
First Order read: Adjourned debate on motion on the Marrakesh Agreement establishing the WTO Agreement.
HON. MATUKE: I move that the debate do now adjourn.
HON. MUKWANGWARIWA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 7th February, 2018.
Hon. Mutseyami having risen to give a point of order.
THE HON. SPEAKER: Why did you not do it immediately after Hon. Misihairabwi-Mushonga?
HON. MUTSEYAMI: Sorry, I was giving room for my Hon.
Speaker to conduct the business of the House smoothly.
THE HON. SPEAKER: No, no, we do not want to act in
staccatos.
HON. MUTSEYAMI: My apologies Mr. Speaker Sir.
THE HON. SPEAKER: Thank you.
HON. MUTSEYAMI: Thank you Mr. Speaker Sir. I have a take
note item on behalf of the Parliamentarians, with regards to our Constituency Development Fund (CDF). We need to acknowledge that the CDF is coming through and the Members of Parliament are moving with regard to the Constitution - however, it is more serious Mr. Speaker
Sir, to take note that we have issues that we agreed on behalf of Parliamentarians with regard to the Minister and the Speaker was available, but up to today, some issues have not been resolved regarding what we agreed in Victoria Falls.
It is important that we take note of this item so that these two issues are resolved henceforth, within time. It is also important that you advocate for us to have a solution to these issues before the life of the Eighth Parliament comes to an end. We do not want a situation whereby former Parliamentarians will come to have their issues resolved. It is important and you have to take note that as a result of the situation that we have and the life that we are living, some Members of Parliament are going beyond this life without enjoying their monies as a result of death due to a lot circumstances.
So, it is important Mr. Speaker Sir, to deal with this matter as a matter of urgency. It must be taken note of by the Minister and the Speaker that these two issues are resolved. I will not dwell much on that, but will acknowledge the issue of CDF. Thank you Mr. Speaker
Sir.
THE HON. SPEAKER: Order, order. On the question of CDF,
the ball is in the court of the Hon. Members. Do what is required of by the Constitution and then draw down that money because you have; I am sure about four months to go and you need to really work hard to ensure that you promote those projects that have been identified in the various constituencies. The second part was a bit vague; you simply said all those things that are outstanding. I was not sure what you were talking about.
Hon. Maridadi having approached the Chair.
The Hon. Member has favoured me with the two items which seem to be very administrative and we are going to make sure that his concerns are addressed; which are also the concerns of all Members of
Parliament – [HON. MEMBERS: Hear, hear.] -
HON. MARIDADI: Mr. Speaker Sir, concerning almost the same matter that was raised by Hon. Mutseyami, ease of doing business is a buzz word in this country. I am sure all the Hon. Members here with constituencies that are trying to access CDF would agree with me that opening a bank account in Zimbabwe is the most difficult thing that you could ever imagine – [HON. MEMBERS: Hear, hear.] – It will take you no less than two weeks – at one time I went to the bank and I said I have provided all the documents – [HON. MEMBERS: Inaudible
interjections.] –
THE HON. SPEAKER: Order, order! Can you lend the Hon.
Member an ear?
HON. MARIDADI: After giving all the documents that you think the bank requires to open a bank account, they still require some more.
At one time I was so irritated; I asked the bank manager if he wanted me to give him the birth certificate of my mother’s boyfriend. That was how angry I was. You are required to give everything; your National Identity Card (I. D.), birth certificate and you are trying to open an account with three other signatories; you give them the details of these signatories, passport size photos and a host of other things that you cannot even imagine. Still after giving them those things, they will tell you we still want proof of residence. You bring proof of residence, they will say the surname on this person’s ID and the surname on the utility bill are not corresponding, you need an affidavit.
It will take you no less than two weeks to open a bank account here in Zimbabwe, yet as foreigner, if you go to China today; you walk into a Chinese bank; all they will ask you to provide is some form of identification. You provide your passport; in 10 minutes time, you come out of that bank with a bank account and an ATM card. In Zimbabwe, all the Hon. Members in this House can vouch for me, there is not a single one of these Hon. Members who was able to open a bank account within five working days. It must take more than one month to open a simple bank account in this country, and you talk of ease of doing business?
An investor with $1 million trying to open a bank account at CBZ, if it is going to take him three weeks, he is going to leave with his money and go to Zambia, Mozambique or South Africa. This is one area that the Minister of Finance and Economic Development and those in authority must really look into – [HON. MEMBERS: Inaudible interjections.] -
THE HON. SPEAKER: Order, order! What needs to happen is that, I think our institutions, including the banks, need to be convinced and have a change of mindset. When His Excellency says Zimbabwe is open for business - that is a contradiction; because if Hon. Members by their very title are not honoured and tossed left, right and centre, that shows that the culture of business is still very colonial, I am afraid. I only promise that I will engage the Governor of the Reserve Bank to call upon the President of the Bankers’ Association to straighten up that one because we have no time. We only have four months to go – [HON.
MEMBERS: Hear, hear.] -
MOTION
BUSINESS OF THE HOUSE
HON. MATUKE: Mr. Speaker Sir, I move that Orders of the Day,
Numbers 2 to 9 on today’s Order Paper be stood over until the rest of the Orders of the Day have been disposed of.
HON. MUKWANGWARIWA: I second.
Motion put and agreed to.
MOTION
RESTORATION OF THE MOTION ON THE FIRST REPORT OF
THE PORTFOLIO COMMITTEE ON DEFENCE, HOME AFFAIRS
AND SECURITY SERVICES ON SERVICE DELIVERY BY THE
REGISTRAR GENERAL’S DEPARTMENT ON THE ORDER PAPER
HON. T. DUBE: I am the new Chairperson of the Portfolio
Committee on Defence, Home Affairs and Security Services.
THE HON. SPEAKER: Order, order. May I apologise to you
Hon. Rtd. Col. Dube, the notes should have read your name, rather than the old Chairperson’s. We apologise.
HON. T. DUBE: I rise to move a motion in my name as
Tshinga Dube, that the motion on the Report of the Portfolio Committee on Defence, Home Affairs and Security Services on Service Delivery by the Registrar-General’s Department in Zimbabwe which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order No. 73.
HON. MUTSEYAMI: I second. Motion put and agreed to.
MOTION
RESTORATION OF THE MOTION ON THE FIRST REPORT
OF THE PORTFOLIO COMMITTEE ON LOCAL
GOVERNMENT, PUBLIC WORKS AND URBAN
DEVELOPMENT ON SERVICE DELIVERY BY LOCAL
AUTHORITIES ON THE ORDER PAPER
HON. MADANHA: Mr. Speaker, I move that the motion on the
First Report of the Portfolio Committee on Local Government, Public
Works and Urban Development on Service Delivery by Local Authorities, which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order No. 73.
HON. NDUNA: I second.
Motion put and agreed to.
MOTION
RESTORATION OF THE MOTION ON THE SECOND REPORT OF
THE PORTFOLIO COMMITTEE ON TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT ON THE INQUIRY INTO
THE AVIATION INDUSTRY IN ZIMBABWE ON THE ORDER
PAPER
HON. NDUNA: I want, first and foremost, to say I have got the blessing of the Chairperson of the Committee on Transport and Infrastructural Development to make sure that the motion on the Second
Report of the Portfolio Committee on Transport and Infrastructural Development on the Inquiry into the Aviation Industry in Zimbabwe which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order Number 73.
HON. MAONDERA: I second.
Motion put and agreed to.
MOTION
RESTORATION OF THE MOTION ON THE FIRST REPORT OF
THE PORTFOLIO COMMITTEE ON TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT ON THE
FAMILIARISATION TOUR OF VICTORIA FALLS AND HARARE
AIRPORTS AND THE PLUMTREE-MUTARE ROAD PROJECT ON
THE ORDER PAPER
HON. NDUNA: Mr. Speaker Sir, once again, I want to say I have got the blessing of the Chairperson of the Transport and Infrastructural Development Portfolio Committee, Hon. Chitindi, that the motion on the First Report of the Portfolio Committee on Transport and Infrastructural Development on the familiarisation tour of the Victoria Falls and Harare Airports and the Plumtree-Mutare Road projects which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order Number 73.
HON. MAONDERA. I second.
Motion put and agreed to.
MOTION
RESTORATION OF THE MOTION ON THE WORLD RADIO
DAY ON THE ORDER PAPER
HON. NDUNA: Thank you Mr. Speaker. I move that the motion on the World Radio Day which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order Number 73.
HON. NDORO: I second.
Motion put and agreed to.
MOTION
RESTORATION OF THE MOTION ON MANDATORY SENTENCE
FOR RAPE ON THE ORDER PAPER
HON. MAJOME: Mr. Speaker Sir, I move for the restoration of the motion on Mandatory Stiff Sentences on Rape and Gender Based Violence and other means to combat gender based violence that lapsed because of the end of the previous session.
HON. S. CHIDHAKWA: I second. Motion put and agreed to.
MOTION
RESTORATION OF THE MOTION ON STATE OF URBAN
ROADS ON THE ORDER PAPER
HON. MAJOME: Mr. Speaker Sir, I move the motion standing in my name that the state of Harare and other roads, which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order No. 73.
HON. S. CHIDHAKWA: I second.
Motion put and agreed to.
MOTION
REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON THE
MINISTRY OF HEALTH AND CHILD CARE ON THE 2015
APPROPRIATION AND THE 2011 TO 2014 FUND ACCOUNTS
HON. MPARIWA: Mr. Speaker, I move the motion standing in name that this House adopts the report of the Public Accounts Committee on the Ministry of Health and Child Care on the 2015
Appropriation and the 2011 to 2014 Fund Accounts.
HON. MISIHAIRABWI-MUSHONGA: I second.
HON. MPARIWA: Thank you Hon. Speaker for giving me this
opportunity of presenting the report of the Public Accounts Committee on the Ministry of Health and Child Care. Hon. Speaker, due to the lengthy time that it has taken me to present this report to the House, I will do a supersonic presentation because some of the issues that are here, you will also get to know them in the 2016 audit report of the
Auditor-General.
The Public Accounts Committee examined the Ministry of Health and Child Care for the year December 31, 2015 and the accounts of the two funds administered by the Ministry. The Health Services Fund, 2013 and 2014; and the Medical Research Council of Zimbabwe, 2012 to 2013 - may I appeal to members Hon. Speaker because I see most of them walking out, that this report contains in the middle of it, issues where we have lost women during delivery time and actually children dying after being born because of negligence by the administration in hospital in terms of the nurses and the personnel. So, it is important because this report is a national report, it might actually touch in some of their constituencies, therefore, it is imperative that members pay attention to the presentation of this report in case it is part of their constituencies.
A qualified opinion is expressed when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in aggregate, are material, but not pervasive, to the financial statements. Pervasive misstatements are spread everywhere as to have a wider effect on an organisation’s financial statements. An adverse opinion is the most serious type of modified opinion. The auditor expresses an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that the misstatements, individually or in aggregate, are both material and pervasive to the financial statement. A disclaimer of opinion is expressed when an auditor is unable to obtain sufficient appropriate evidence on which to base the opinion. A table below shows the audit opinions expressed on the Appropriation and Funds Accounts during 2014 and 2015 Annual
Audits.
Table 1: Audit Opinions on Appropriation and Funds
Accounts
Appropriation/Fund Account |
2014 Annual Audit |
2015 Annual Audit |
Ministry of Health and Child Care |
Qualified opinion |
Qualified |
Health Services Fund, 2011 and 2012 |
Qualified and Disclaimer respectively |
- |
Health Services Fund, 2013 and 2014 |
- |
Qualified |
Medical Research Council of Zimbabwe, 2012 and 2013 |
Accounts not submitted for Audit |
Qualified |
As shown in Table 1 above, the audits opinions expressed on the sets of accounts are a cause for concern.
It is also of great concern that the Ministry reported on the two Funds well out of time and this has been the general trend. This is a clear violation of the Public Finance Management Act (PFMA) [Chapter 22:19]. Section 35 (4) of the PFMA requires the Ministry to prepare and submit financial accounts for Funds within three months after the end of a financial year. This is barely a month after the deadline for submission of Appropriation accounts. It is, therefore, the Committee’s considered view, that it is high time Treasury should come up with specific sanctions for such violations.
2.0 OBJECTIVES OF THE ENQUIRY
Section 299 of the Constitution of Zimbabwe Amendment No. 20 of 2013 states as follows:
(1) Parliament must monitor and oversee expenditure by the State and all Commissions and institutions and agencies of Government at every level, including statutory bodies, government controlled entities, provincial and metropolitan councils and local authorities, in order to ensure that-
- all revenue is accounted for;
- all expenditure has been properly incurred; and
- any limits and conditions on appropriations have been observed.
Section 309 (2) (a) of the Constitution provides for the functions of the Auditor-General as follows:
“to audit the accounts, financial systems and financial management of all departments, institutions and agencies of government, all provincial and metropolitan councils and all local authorities”.
National Assembly Standing Order No. 16 mandates PAC to examine the sums granted by Parliament to meet public expenditure and such other accounts laid before the National Assembly.
It is therefore, the duty of the Public Accounts Committee to report whether such public funds have been managed and expended as authorised by Parliament. In this context, the Committee examined the audited Appropriation and Funds Accounts for the Ministry of Health and Child Care as reported by the Auditor-General in her Annual Report for the financial years ended December 31, 2015.
3.0 METHODOLOGY
The Committee held an oral evidence session with Rtd. Brig. Dr.
Gwinji, the Permanent Secretary and Accounting Officer for Ministry of Health and Child Care and other senior officials within the Ministry. It requested written evidence which was then analysed and further formed the basis of the Report.
4.0 FINDINGS, OBSERVATIONS AND
RECOMMENDATIONS BY THE COMMITTEE
4.1 APPROPRIATION ACCOUNTS FOR THE MINISTRY
OF HEALTH AND CHILD CARE FOR THE YEAR ENDED
DECEMBER 31, 2015
4.1.1 Poor maintenance of accounting records
A variance of $5 671 372 was observed between the Sub-
Paymaster General’s Account (Sub PGM) and the Public Finance
Management System (PFMS) figures. There was also a total variance of
$221 996 observed between the returns for Receipts and Disbursements, Gifts, Legacies and Donations and the PFMS figures. Under such circumstances, the accuracy of the total expenditure figure became questionable and in the absence of reconciliations, errors and fraud might not be detected.
During oral evidence, Rtd. Gen. Dr. Gwinji attributed the variance between Sub-PGM’s Account and the PFMS to a technical error which occurred in the PFMS after the Grant Management Module was configured within the System. Thereafter, the Ministry resorted to manual recording of transactions that went through the Sub-PGM’s Account with the Reserve Bank of Zimbabwe as opposed to recording in the System. The Ministry carried out monthly reconciliations and the final reconciliations were availed to the Committee during the oral evidence session. The Permanent Secretary further informed the Committee that the System was configured in 2016 to capture transactions to completion while the 2015 transactions remained unresolved pending measures being taken by Treasury to correct the technical problem in the System.
The Permanent Secretary’s response with regard to the variance relating to the returns for Receipts and Disbursements, Gifts, Legacies and Donations was that the System was not yet configured to capture donations.
The 2016 Auditor-General’s Report showed that the unreconciled balances between the Sub-PMG’s Account and the PFMS had been resolved. The Committee was satisfied with the measures taken by the Permanent Secretary in resolving the variance.
4.1.1.1 The Committee recommends that, Treasury should, by 31 December, 2017, configure the PFMS to capture Receipts and Disbursements, Gifts, Legacies and Donations.
4.1.2 Unsupported Expenditure
The Audit observed that payments amounting to $10 184 727 made by Treasury to service providers on behalf of the Ministry were not supported by either receipts or proof of payment. The same observation was made in 2014, which is an indication that the Ministry was not taking audit issues seriously. When payments are made to service providers without adequate supporting source documents, there is a risk that expenditure might be incurred for unintended purposes and fraudulent payments might also be processed.
The Ministry attributed the absence of supporting documents to delays by Treasury in relaying information on direct payments made to City of Harare and the Zimbabwe Electricity, Supply Authority (ZESA) through set-offs with the Zimbabwe Revenue Authority (ZIMRA). The Permanent Secretary indicated that currently, Treasury requires the Ministry to authorise payments before they could be processed. This enables the Ministry to enforce production of receipts of previous setoffs before new set-offs could be authorised. As a control measure, the
Ministry currently maintains a manual register for set-offs which enables it to identify and follow up on any documentation for outstanding setoffs.
The 2016 Audit observed that the issue had not been fully addressed though it noted great improvement as the figure of unsupported expenditure had significantly decreased. The Committee is of the view that it is a responsibility of the Ministry to obtain receipts or proof of payment for all payments made on its behalf by Treasury as the expenditure is made against its vote.
4.1.2.1 The Committee recommends that, the Ministry should, by 30 September, 2017, avail to the Auditor-General, supporting documentation for all unsupported expenditure.
4.1.3 Outstanding Payments to Suppliers of Goods and
Services
The Audit observed outstanding payments to suppliers of goods and services amounting to $46 254 732 and some of the amounts date as far back as 2012 financial year. The figure shot up to $70 112 498 in
2016 which is an indication that the Ministry was not paying heed to audit recommendations. There is a risk that the Ministry might incur litigation costs in the event suppliers consider legal action. In the event suppliers also consider demanding cash upfront for supplies, there would be serious repercussions considering that the Ministry offers essential services which concern the lives of the people.
The Permanent Secretary admitted that it was failing to meet its obligations with supplies of goods and services due to paltry releases by Treasury. Despite the existence of the Health Services Fund to augment budgetary allocations for the Ministry, Rtd. Gen. Dr. Gwinji reiterated that the current funding sources were not in a position to cover basic hospital operations. He added that its creditors stood at $50 million and the figure increased each year by over $10 million while budget allocations were averaging at $14 million. The ballooning debt will, in the long run, impact negatively on the supply chain.
The Committee noted with concern that the situation in government hospitals was pathetic and was getting worse each day. The Permanent Secretary informed the Committee that they were no longer able to provide some of the essential services. The Committee further noted with concern that the Ministry was providing services to the less privileged sections of the society who are the majority and cannot afford health services by private players. There was, therefore, need for a rethinking in terms of funding the health sector.
4.1.3.1 The Committee recommends that, Treasury should, during the 2018 National Budget, provide funding for the outstanding debt by the Ministry.
4.1.3.2 Treasury should, by 31 December 2017, come up with a comprehensive alternative financing model for the health sector, to ensure quality service delivery to the nation.
4.1.4 Late and Non-Submission of Statutory Returns
The Audit observed that the Ministry failed to submit the
Statement of Revenue Received, Receipts and Disbursements and
Temporary deposits on time in violation of Section 35 (6) (i) of the
Public Finance Management Act and Audit Circular. It was not possible to verify the correctness, accuracy and completeness of figures disclosed in the financial statements thereby delaying the audit process.
The Permanent Secretary attributed the delay in submission of returns to the technical error in the PFMS which caused some transactions not to be fully processed. The technical error was reported to the PFMS Project Office but was not quickly resolved. The technical error was eventually resolved and the Committee was satisfied with the measures taken by the Ministry in addressing the audit observation.
4.1.5 Inadequacies in the Management of Assets under the
Targeted Approach
The Audit observed that the equipment worth $295 553 which was purchased for Ngomahuru Hospital for the mentally challenged had been lying idle since the past three years. A similar observation was made for various pieces of equipment purchased under the $3 million targeted approach for the Mutare Provincial Hospital. Furthermore, the Ministry did not pay suppliers of equipment totalling $3 492 642.
The Permanent Secretary informed the Committee that the equipment at Ngomahuru Hospital, after being purchased, was diverted to Victoria Falls Hospital at the time of delivery, following an urgent need necessitated by the hosting of the United Nations World Tourism Organisation Conference (UNWTO) in 2013. After hosting the event, the equipment got damaged during the transfer to Ngomahuru Hospital. The supplier of the equipment, when approached for repairs, did not respond positively as he was owed money by various hospitals. The equipment has been lying idle since that time.
As for the equipment at Mutare Provincial Hospital, the Ministry indicated that the equipment was procured by funding from the Department for International Development (DFID). The equipment was meant for Masvingo Provincial Hospital but was later redirected to Mutare Provincial Hospital. This was after the realisation that the equipment was steam-driven, yet Masvingo Provincial had no steampowered boilers. On delivery of the equipment at Mutare Provincial
Hospital, the boilers broke down and it was discovered that they needed a complete overhaul. Funds to the tune of $100 000 to resuscitate the two boilers were released but no competent bidder came forth hence the equipment could not be commissioned.
The Committee expressed concern on the failure by the Ministry to take due care of Government assets at the time where most hospitals were critically undercapitalised. There is no doubt that failure by the Ministry to commission equipment on time will result in failure by the health institutions to deliver critical services. As alluded to earlier in this Report, suppliers were withholding services due to non-payment by the Ministry. The equipment lying idle at Mutare Provincial Hospital had exposed serious procurement weaknesses within the Ministry which needed to be addressed. One wonders how one could afford to purchase equipment which was not suitable for the prevailing situation and go unpunished. The Committee also wonders how the Ministry could spent more than a year trying to secure a tender. The Ministry indicated that it would flight another tender for boilers during 2017 and there is a possibility that it will get to next year and the story remained the same.
Basically, the situation remained the same during the 2016 audit.
4.1.5.1 The Ministry should take all the necessary steps and ensure that the equipment at Ngomahuru and Mutare Hospitals is repaired and commissioned by 31 December, 2017.
4.2 HEALTH SERVICES FUND ACCOUNTS FOR 2014
The Fund was established to collect and administer hospital fees to supplement the Health budget. Below were the observations of the audit on the administration of the Fund.
4.2.1 Non-Recovery of Debtors
The Audit observed that for the three years in succession, the debtors’ figure had been accumulating from $15 068 702 in 2013 to $20 174 649 in 2014 and to $23 634 749 in 2015. The figure, as in 2015 represents 99% of the total assets of the Fund. This shows that the Fund is experiencing serious liquidity challenges and as a result, service delivery is seriously compromised.
The Permanent Secretary admitted before the Committee that the increase in the Fund’s debtors was really taking a worrying trend. The biggest challenge was that patients who presented themselves at Government hospitals were the most vulnerable groups in society and cannot afford to pay for services. On the other hand, it was morally bad to turn them away for non-payment. Secondly, there were institutional debtors such as Government funded institutions namely: Social Welfare, the Zimbabwe Republic Police, the Zimbabwe National Army, Prisons and War Veterans who were slow in settling bills for their members.
Medical Aid Societies were also slow in paying for their members.
The Permanent Secretary informed the Committee that the Ministry, in some instances, had engaged debt collectors. However, there was public outcry because of the heavy handedness of the debt collectors. Hospitals also thoroughly screen patients in order to assess the ability to pay. For those who can pay, they demand cash upfront for certain services. Furthermore, they obtain details of next of kin for follow up purposes. In view of the prevailing cash challenges, they utilise point of sale machines and electronic money transfers.
The Committee acknowledged the measures taken by the Ministry to enhance revenue flows into the Fund. Considering that the poorest sections of the nation present themselves at Government hospitals, there is need for a relook at the financing model of the public health sector. If no immediate solution is sought, the Fund will soon be in serious liquidity challenges given that debtors account for 98% of the Funds total assets.
4.2.1.1 The Committee recommends that, the Ministry in liaison with Treasury should, by 31 December, 2017, come up with a viable and sustainable financing model for the public health sector.
4.2 Irregular Expenditure totalling $57 411 at Masvingo
Provincial Hospital
It was observed that Masvingo Provincial Hospital incurred a total expenditure of $57 411 in rented accommodation for doctors without Accounting Officer and Treasury Authority. It was also observed that other Hospitals were not paying such allowances. There is a risk of incurring wasteful expenditure by the Ministry if allowances are not approved by competent authorities. The situation did not improve in 2015 as Mutare Provincial Hospitals also incurred $45 975 for medical doctors accommodation without approval.
The Permanent Secretary indicated that the practice was stopped after the audit observation. He pointed out that in such circumstances where the Hospitals resorted to paying such allowances, they would have struggled to attract doctors. In this case, the Masvingo Provincial Hospital was said to have struggled to attract doctors since 2000 due to accommodation problems.
4.2.2.1 The Committee recommends that, the Ministry should, by 31 December, 2017 come up with a standard policy on housing allowances for medical doctors.
4.2.3 Account Balances amounting to $226 263
Due to poor maintenance of accounting records, it was observed that the 2013 financial statements reflected a total imbalance of $226 263 between Head Office and two Provincial Hospitals namely: Gweru and Chinhoyi Provincial Hospitals.
The Permanent Secretary indicated that Chinhoyi Provincial
Hospital was paying casual workers from both the Appropriation Account and the Health Services Fund. Payments from both the two sources were posted to a single ledger account. During preparation of final accounts for the Fund, payments made from the Appropriation Account were not recognised as expenditure under the Fund resulting in a variance of $7 116. The Ministry indicated that, going forward, the Hospitals are required to maintain separate ledger accounts for the two sources of funding. For Gweru Provincial Hospital, variances were attributed to January 2013 expenditures that were not recorded in the respective ledger account. The correct expenditure figures were however disclosed during the preparation of 2013 final accounts. The Hospital provided a written explanation and the ledger accounts were adjusted to reflect the correct position. The Ministry availed documentary evidence and the matter was resolved to the Committee’s satisfaction.
4.2.3.1 The Committee recommends that, the Government should, by January 2018, provide the Ministry with a special dispensation to recruit accounting personnel for districts and provincial hospitals.
4.2.4 Unexplained Suspense Account Balance of $52 419
The Audit observed a balance of $52 419 in the suspense account which the Ministry did not provide an explanation on. During oral evidence, the Ministry indicated that the balance was investigated. The $51 017 was an omission of the Beitbridge District Hospital fees income for December 2013 in the final accounts which was presented in excel format. The $1 056.78 was attributed to funds transferred to
Matebeleland North Provincial Medical Director’s Office from a district hospital which was not disclosed in the final accounts in error. The
$344.90 was an understated figure for Gwanda Hospital debtors. The Ministry indicated that plans were underway to roll out PFMS to hospital to improve on the management of hospital funds.
4.2.4.1 The Committee recommends that, the Ministry, in collaboration with Ministry of Finance should, by January 2018, roll out SAP to district and provincial hospitals.
4.2.5 Poor Maintenance of Records
The Audit observed that Karoi District Hospital, Chinhoyi and Masvingo Provincial hospitals did not maintain ledger accounts. As a result, the Audit was not able to determine the accuracy of revenue and expenditure disclosed in the financial statements. The Permanent Secretary, during oral evidence, bemoaned lack of adequate accounting personnel to manage the finance sections in the various hospitals as a result of recruitment freeze in Government. He added that the establishment which had been in place since the last 10 years was no longer coping with increased workloads due to increased number of decentralised services to district hospitals and decline in funding by development partners. The Ministry since 2012, had been requesting for accounting personnel but without success. The Ministry was relying on unqualified personnel to handle finances in hospitals.
The Committee noted with concern that in the 2015 Audit Report, Hospitals still had challenges in maintaining accounting records. In addressing the challenge, the Ministry indicated that it was undertaking support visits to districts and provincial hospitals.
4.2.5.1 The Committee recommends that the Health Services Board, in liaison with Treasury, should provide a special dispensation for the Ministry of Health and Child Care to hire accounting personnel for Government hospitals by 31 December 2017.
4.2.6 Unsupported Expenditure amounting to $304 693
The Audit observed that the Fund made payments on behalf of various hospitals amounting to $304 693 without supporting documents such as procurement committee minutes, competitive quotations, requisitions, invoices, receipts and goods received. In 2013, the figure was $77 404. In the absence of supporting documentation, the Fund runs the risk of incurring wasteful expenditure and fraudulent transactions may be occurring without being detected.
The Ministry informed the Committee that in some instances, there was a single supplier and as a result, there were no procurement documents in the form of competitive quotations. Some payments were also made electronically, hence no receipts for suppliers. The Ministry, in its investigations also observed that, in some instances, procurement documents were kept by the Administration departments while payment documents were kept by Accounts departments.
The Ministry now conducts support visits to hospitals as from the beginning of 2016, as part of addressing the observation. It emphasised the need to have all documents relating to transactions kept in the Finance section to avoid unnecessary confusion during audit.
4.2.6.1 Going forward, the Ministry should ensure that all payment vouchers are adequately supported by source documents.
4.2.7 Weak Internal Controls in Management of Fuel
Due to weaknesses in internal control system, the audit observed that some institutions failed to account for fuel totalling 32 280 litres valued at $41 048. The Ministry explained that the fuel in question was related to fuel from cooperating partners. The Head Office used to procure and distribute to various programme managers based on approved workplans. Following the observation, the Ministry stopped the system and decentralised the administration of fuel to various stations. Stations had been instructed to maintain fuel registers. The Committee was satisfied with the measures taken by the Ministry in addressing the observation.
4.2.8 Weak Internal Controls in Management of Medicine
The Audit observed with concern the unavailability and poor management of essential medicines which are critical for service delivery by the Ministry. In some instances, Kwekwe District Hospital failed to account for some medicines while Tsholotsho District and
Gweru Provincial Hospitals were operating without essential medicines.
This was a result of poor prioritisation and weak internal controls on medicines management. Weak controls may also result in medicines pilferages.
The Committee noted with concern that the situation worsened in
- Stock levels at seven institutions visited in 2015 were below 80%. Most of the institutions visited had weaknesses in maintenance of records for medicines.
The Permanent Secretary informed the Committee that hospitals were not in a position to maintain required stock levels of medicines due to inadequate funding. He indicated that the Ministry was working on installing an electronic system of stock management in a phased approach, in order to improve on internal controls. He also indicated that pilot projects were carried out at Chitungwiza, Parirenyatwa and Mpilo Hospitals.
4.2.8.1 The Committee recommends that the Ministry should, in the 2018 National Budget, prioritise the installation of the electronic system of management of drugs by hospitals.
4.2.9 Poor Service Delivery at Karoi, Kariba and Tsholotsho
District hospitals and Bindura and Masvingo Provincial Hospital,
The Audit observed poor service delivery at Karoi, Kariba and Tsholotsho District and Bindura Provincial Hospitals due to obsolete equipment, excessive electricity power cuts, absence of alternative water sources and unavailability of medicines.
During 2013, poor service delivery was observed at Masvingo
Provincial Hospital and was attributed to cases of negligence by staff. The cases resulted in loss of lives. Three Midwives did not attend to a patient in the labour ward, resulting in the death of a newly born baby due to cold. Two registered nurses also neglected a patient who was critically ill. The patient later died under the care of a nurse aide.
The Permanent Secretary acknowledged that health institutions had suffered long periods of deterioration of equipment. He informed the Committee that the Ministry had adopted a systematic approach to reequipping the institutions through cooperating partners. He indicated that Government had secured a loan on behalf of the Ministry which had enabled the Ministry to purchase various equipment for institutions. A national distribution list for various pieces of equipment was unveiled to the Committee. The Ministry had also requested the Zimbabwe Electricity Supply Authority (ZESA) to put hospitals on priority grid. It purchased standby generators for other areas. In partnership with cooperating partners, it drilled boreholes in identified and other institutions. Construction of water reservoirs was said to be at advanced stage at Parirenyatwa and Harare Hospitals.
Concerning the Masvingo incidents, the cases were investigated and disciplinary action was taken against the nurses. The Ministry indicated that it had also embarked on a mentorship programme especially for maternal health care.
The Committee was satisfied with measures taken to address the challenges observed.
4.3 MEDICAL RESEARCH COUNCIL OF ZIMBABWE
2012-2013
The Medical Research Council was established to promote, direct, control and carry out research on health issues.
4.3.1 Unsupported Expenditure
The Audit observed that the Ministry failed to provide supporting documentation for payments amounting to $20 864 in 2013 and in the previous year in 2012 the amount was $207 261. In the absence of supporting documentation the Audit could not ascertain whether the expenditures were a proper charge against the Fund.
The Permanent Secretary admitted that there were weaknesses in the accounting system at the Research Council. In responding to the Audit observation, the Ministry had seconded staff to assist the Council in maintenance of accounting records. The Committee expects some improvements in the next round of audits in this regard.
4.3.2 Violation of Tender Procedures in Procurement of a
Motor Vehicle
The Audit observed that the Research Council purchased an Isuzu KB 300 second hand motor vehicle amounting to $15 000 without going to tender. Procurement outside laid down tender procedures may expose the Fund to misappropriation, underhand deals and uneconomic procurement.
The Ministry indicated that there were challenges on observing tender procedures in the purchase of a second hand vehicle. Going forward, the Ministry indicated that all procurement by the Council should be approved by the Ministry Head Office.
4.3.2.1 The Committee recommends that the Ministry should, by 31 December 2017, train Council staff responsible for procurement.
4.3.2.2 Going forward, all procurement by the Research
Council should be supervised by the Ministry Head Office.
5.0 CONCLUSION
The Committee observed that there was generally some improvements in the management of the appropriation accounts. It however, noted with concern that there was generally poor management of Fund accounts under the Ministry. There was poor record keeping due to a highly manual environment coupled with absence of accounting skills. This had been attributed to the freeze by Government on recruitment. Management of medicines in Government hospitals also leaves a lot to be desired. This is also as a result of manual systems in place. Funding remained a major challenge and service delivery in
Government hospital cannot be guaranteed.
Government should, as a matter of urgency, come up with a viable funding mechanism in the health sector if ever a vibrant health delivery system is to be realised. In this age of digital technology, the Ministry should move with speed and put in place electronic systems in the management of medicines. SAP should, as a matter of urgency, be rolled out to district and provincial hospitals to ensure effective management of funds.
HON. MISIHAIRABWI-MUSHONGA: Thank you Mr. Speaker
Sir. I stand to second and support my Chairperson on that important report. I think she went to detail in terms of the things that we found as a Committee and I share her disappointment on the lack of interest in listening. You remember, it is this House that made a decision to bring Mrs. Chiri back, because this is the work that Mrs. Chiri is doing. So you cannot celebrate an individual and not celebrate the product of what she is bringing to us. I just want to agree with my Chairperson in terms of the disappointment around the lack of listening but also just general interest in one of those things.
Mr. Speaker, I will not spend too much time. I will just underline one thing that seems to be coming up all the time when we come and present reports. I think it is important that the Minister of Finance and Economic Development responds to us at some stage. It is to do with the issue of procurement. The procurement in Government is bad. Every time we are coming back and we are saying tender processes were flouted. What is worse is not just the flouting of tender processes, people are buying nothing. They say we are going to buy an ambulance and the ambulance is not delivered.
In fact, we now have people who are using Government as their place to rob and we are doing nothing about them. They are not being arrested and nothing is happening to them. They are not even being fired, instead, some of them are transferred from the Ministry of Health to another Ministry. I think we have to raise it as a matter of concern, otherwise there is no point in my Chairperson sweating like you saw her sweating, trying to encourage you to listen to her report and raising issues about people who are stealing Government resources, tax payers’ money and day in, day out, we keep giving these reports. If nothing is going to be done, we may have to, as a Public Accounts Committee, make a decision to say we are not going to bother bringing reports here because it does not make a difference. I thank you Chair.
HON. RUNGANI: I move that the debate do now adjourn.
HON. NDUNA: I second.
Motion put and agreed to.
Debate to resume: Wednesday 7th February, 2018.
MOTION
REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT
AND INFRASTRUCTURAL DEVELOPMENT ON THE ENQUIRY
INTO THE REMITTANCES TO THE TRAFFIC SAFETY COUNCIL
FROM THIRD PARTY INSURANCE PAYMENTS
HON. NDUNA: I move the motion standing in my name; that this House takes note of the Report of the Portfolio Committee on Transport and Infrastructural Development on the Enquiry into the remittances to the Traffic Safety Council from Third Party Insurance payments.
HON. MANGWENDE: I second.
HON. NDUNA: Introduction:
In his address at the Zimbabwe Revenue Authority (ZIMRA)
Taxpayer Appreciation Day held on the 22nd of September 2016, the
Minister of Finance and Economic Development, Hon. Patrick Chinamasa, issued what appeared to be a disconcerting and worrisome statement at the time. As Hon. Members may recall, since his appointment, Hon. Minister Chinamasa has been making a valiant and spirited attempt to clear Zimbabwe’s debt with multilateral financial institutions in a bid to regain credibility on the international financial market and open up lines of credit for the country which has been facing crippling liquidity constraints, primarily resulting from lack of external budgetary support. However, on the day in question, which should ironically have been a day of festivities and celebration as Zimbabwe was on a firm path towards clearing arrears owed to the International Monetary Fund (IMF), Hon. Chinamasa informed the nation that the country would have to stand on its own in terms of sourcing critical credit lines. In his own words, he said:
“What this means is that as individual countries, we can no longer rely on development assistance to support our budgets. In the case of Zimbabwe, we have not had any budgetary support from outside for a very long time. In truth, therefore, we are on our own. We now have to seriously look at domestic mobilisation as paramount to our economic development.”(The Standard, September 25, 2016)
It was not lost on us as a Committee that our own leader, the Hon. Speaker himself, has been a strong advocate of domestic resource mobilisation and has been at pains to encourage Committees to assist the Executive with SMART ideas of mobilising resources locally. Look no further than the 2016 Pre-Budget Seminar.
Hon. Speaker, cognisant of the independence and sustainability that a model based on domestic resource mobilisation fosters, your Committee took the initiative to explore ways in which the country could mobilise the critical domestic resources required to contribute to the fiscus and spur the accelerated economic growth envisaged in our economic blueprint ZIM ASSET. The Committee resolved as a first port of call to focus on the remittances that were due to the fiscus from the 12.5% motor levy that ought to be collected by the Traffic Safety Council from every Third Party Insurance Policy payment, of which 5% would accrue to Treasury. This enquiry was spurred by the exponential growth in the last few years, of outdoor motor vehicle insurance sales agents frequenting post offices or anywhere else where motor vehicle insurance was sold.
It was a matter of grave concern to your Committee, Hon. Speaker, whether or not these fly-by-night insurance agents were registered, whether or not they would subsequently remit the 12.5% motor levy due to the Traffic Safety Council and the 5% due to the fiscus, and the potential revenue leakage stemming from the rapid growth of this ‘sector’- for lack of a better word. The Committee was further cajoled into action by the rising reports of insurance fraud or fake insurance sold to unsuspecting members of the public by some of these bogus agents and the loss of revenue thereof. Tragically, 32 of our citizens had perished in a fatal road accident along the Harare-Bulawayo Road on Thursday 3rd March, 2016, and it was discovered that one of the vehicles had a fake insurance policy. So the innocent victims and the remaining families would sadly not receive any form of compensation owing to these unscrupulous agents.
Methodology:
It is an incontrovertible fact that the transport and infrastructure development sector harbours latent potential to raise the much-needed revenue for the country which will galvanise the economic revival of Zimbabwe. To this end, Hon. Speaker, your Committee resolved to comb through the relevant legislation, in particular, the Act governing the operations of the Traffic Safety Council of Zimbabwe, to establish the legal basis for the collection of this revenue. The Committee then invited the Minister of Transport and Infrastructural Development, Hon. Dr. J. M. Gumbo, to issue a Ministerial Statement in the National Assembly covering the issue of the motor levy, before concluding its enquiry by inviting ZINARA to give oral evidence on the same. The Committee would like to put it on record that even prior to the
Minister’s statement, your Committee Hon. Speaker, had engaged ZINARA and given them a deadline of about a month to computerise the collection of the 12.5% statutory fee for third party insurance. Be that as it may, the Committee would like to express its sincere gratitude to Hon. Minister Gumbo for graciously accepting the Committee’s request and presenting a comprehensive and frank statement covering a wide range of critically important issues. Your Committee’s findings and recommendations, Hon. Speaker, are outlined below.
Legal Basis for the Collection of the Motor Levy:
Section 34 (1) of the Traffic Safety Council Act (Chapter 13:17) provides that
34 Imposition of levies
(1) Subject to this Part, the Minister, with the approval of the Minister responsible for finance and after consultation with the board, may by statutory instrument impose a levy on—
(a) Persons who obtain or renew policies of insurance for the purposes of the Road Traffic Act [Chapter 13:11]; and (b) Driving schools.
Subsection 2 states that:
(2) In a Statutory Instrument published in terms of subsection
(1), the Minister may prescribe—
- subject to subsection (3), the amount of the levy;
- the persons responsible for the payment of the levy;
- the persons responsible for the collection and remittal of the levy;
- the manner and times at which the levy shall be paid, collected and remitted; and
- the imposition of interest and additionally, or alternatively, a surcharge if the levy is not paid within the time prescribed.
Statutory Instrument 45 of 2005 was enacted to give effect to Section 34 of the Traffic Safety Council Act and effected 12.5% of the total value of every third party insurance bought as the remittance due to the council while 5% goes to Treasury. However, the Committee noted that the law does not appear to bestow punitive powers on the council for errant insurance companies who do not remit the legally stipulated
fee.
Submissions by the Minister of Transport and Infrastructural
Development:
In his Ministerial Statement, the Minister of Transport and
Infrastructural Development, Hon. Dr. Gumbo, acknowledged that the Traffic Safety Council of Zimbabwe as the lead road safety agency, was supposed to get 12.5% of every Third Party Insurance Policy issued in the country through a motor levy as stipulated in the afore-stated legislation while 5% would accrue to Treasury. At the current cost of
US$30 per term, the amount due to the council from every policy was US$3.60. On a monthly basis, the council was supposed to collect an average of US$224 000 which translated to about US$2.688 million annually. Holding everything else constant, Treasury on the other hand, would collect US$93 340 every month and US$1.120 million annually.
However, regrettably the council was facing challenges in collecting the said levy from insurance companies due to the proliferation of bogus insurance policies as well as the non- compliance with regulatory requirements by some insurance companies. To mitigate this systemic weakness, the Ministry had engaged insurance companies to introduce electronic insurance cover notes linked to the databases of ZINARA and CVR. Once this becomes operational, no vehicle would be issued with a motor vehicle licence without a valid insurance policy. The effect of this would be to curb revenue leakages resulting from the issuance of fake insurance policies. Electronic insurance cover notes would also enable the relevant authorities to keep track of policies that had been paid and thus follow up on those insurance companies that would not have remitted the statutory levies. The Minister appealed to your Committee, Hon. Speaker, to lend its support to the roll out of electronic insurance in order to curb revenue leakages and mobilise domestic resources. This was in line with the Committee’s earlier recommendation to ZINARA to computerise collection of the 12.5% statutory levy for third party insurance.
Submissions by ZINARA:
Armed with this important information relayed by the Minister, the Committee invited the Board Chairperson of ZINARA for the second time to give evidence on the roll out of the computerisation system as recommended by your Committee.
ZINARA acknowledged that they had indeed taken up the recommendation by the Committee to computerise the collection of the 12.5% statutory fee on third party insurance. Pursuant to this, the electronic insurance cover note had gone live on the 1st of May, 2016. This had resulted in an astronomical increase in revenue collection by the Traffic Safety Council from the US$224 000 monthly mentioned by the Hon. Minister to an average US$1 million per month and, by Treasury, from US$93 340 per month to US$416 666. To put it into perspective, computerisation of revenue collection had removed inefficiencies in the system to the extent that where the Traffic Safety Council used to receive US$2.688 million annually, it was now receiving at least 12 million per year, whilst Treasury was now getting at least US$5 million annually from US$1.120 million.
ZINARA further projected that assuming 100% compliance by insurance companies, the revenue generated by both the Traffic Safety Council and Treasury would increase five- fold. Numerically, the implication of this was that revenue for the Traffic Safety Council would increase from US$1 million to US$5 million monthly and, by extension, US$12 million to US$60 million annually. Likewise, revenue for Treasury would increase from US$416 000 to US$2.080 million per month and US$5 million to US$25 million per year.
ZINARA admitted that they would not have expedited the computerisation of the insurance cover note were it not for the insistence and perseverance of your Committee, Hon. Speaker, and this had proven to be a game changer in terms of domestic resource mobilisation. Linking the insurance cover note to the licensing system has literally obliterated the parallel market which was producing fake licences and created a clear audit trail in the collection of the levy. The receipt that is generated upon payment of insurance fees stipulates the type of insurance, the percentage due to the Traffic Safety Council and stamp duty, which is a ZIMRA tax. ZINARA subsequently distributes the money to the relevant authorities.
Committee’s Findings:
The Committee noted the following:
While the Traffic Safety Council Act as read with Statutory Instrument 45 of 2005 provides for the collection of insurance levy for third party insurance cover, there is no mechanism of censure for those insurance companies which default on remittance of the 12.5% levy;
There was a dearth of regular monitoring of the insurance industry to ensure that all the players in the industry are legitimate, registered insurance companies who are fulfilling their statutory obligations;
Computerisation of the collection of the 12.5% motor levy has seen a phenomenal rise in revenue to the Traffic Safety Council and the fiscus and contributed significantly to domestic resource mobilisation through tightening of systemic loopholes in revenue generation;
The insurance companies owe TSCZ millions of dollars in unfulfilled remittances as shown by their delinquent behaviour before the computerisation of the issuance of third party insurance by ZINARA. This gives credence to the notion that ZINARA and ICZ take over this task to enhance revenue collection and its subsequent use.
Recommendations:
The Committee recommends the following:
While the revenue collection system has been computerised and inefficiencies eliminated, compliance is still to reach 100%. Therefore, Statutory Instrument 45 of 2005 should be amended at the earliest possible convenience to include punitive measures for those insurance companies which are not complying with the law;
There is need for regular monitoring of the insurance industry by (ICZ) to ensure that all players in the industry are registered and compliant with national laws. Quarterly monitoring exercises would foster a more vibrant insurance sector;
The entire transport management system needs to be computerised to ensure that Insurance Council of Zimbabwe, ZINARA, CVR, RMT, Police and the Ministry’s processes speak to each other and curb any
revenue loopholes in the system by end of November 2017.
On the evidence of the phenomenal upsurge in revenue collection and accountability for the same, ZINARA and the Insurance Council of Zimbabwe (ICZ) must be given the sole mandate of collection and distribution of the third party insurance for Public Service vehicles as well as the compensation of insured motorists in the event of an accident by November 2017.
In order to enhance domestic resource mobilisation through efficient revenue collection, all other insurances- whether comprehensive, passenger insurance or otherwise- must be paid and remitted electronically through the same arrangement initiated by ZINARA. This will also enhance accountability and increase the chances of compensation for affected parties by November 2017.
The Committee further recommends that all insurance payments made at all ports of entry by foreign vehicles, must be administered by
ZINARA with immediate effect.
Last but not least, of the 12.5% remittances to TSCZ, 4,5% must be immediately ceded to ZINARA for the establishment of accident victims stabilisation centres at all toll gates, in order to save lives and stabilise road accident victims within the first hour after the accident happens. This hour is the critical hour that can determine whether 70% of all injured road traffic accident victims will live or die.
Conclusion:
Hon. Speaker, there are two ways to be fooled. One is to believe what is not true and one is to refuse to believe what is true. The numbers speak for themselves, and your Committee has chosen to believe in what is true. Automation of our processes is the way to go if we are to raise the revenue that our great nation needs through domestic resource mobilisation. The urgency of automation cannot be overemphasised. In doing so, however, we must be wary of the warning sounded by none other than Bill Gates himself who said, “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” Apart from technological aspects, our systems should always have the human value. *HON. MANGWENDE: Thank you Hon. Speaker Sir. I want to
support the motion by saying we encourage all third party insurance companies to pay 12% to the Traffic Safety Council. This is because this money is helpful towards all the accidents that are occurring. The money will be channelled towards awareness campaigns, the Highway Code, road signs and blood transfusion services. Most people are losing blood because a lot of accidents are taking place these days. So if the insurance companies pay these monies to the Traffic Safety Council, that money will be helpful towards blood transfusion because many people fail to access the service.
The 12% third party insurance being paid was not adequately paid, so we are encouraging all those responsible for paying the third party insurance to pay up their subscriptions so that it goes towards a lot of things such as fencing the roads to prevent stray animals from passing through the roads in order to avoid accidents as this is causing a lot of accidents. For example Shangani in Bulawayo, the place is fenced and there are less accidents occurring in that place. I hope many roads could also be fenced like that but this can only be a reality if the 12% third party insurance cover is paid by the insurance companies to the Traffic Safety Council. If this is not done, nothing can be effected. So, we strongly encourage that this be done.
There are sensitisation programmes being done in schools to sensitise children when they are still young, what is called ‘catch them young.’ This will allow the children to have defensive driving so that accidents are limited. We encourage these insurance companies to remit money to the Traffic Safety Council so that it is put to good use. I do not have much to say for now. Thank you Mr. Speaker Sir.
HON. RUNGANI: I move that the debate do now adjourn.
HON. NDUNA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 7th February, 2018.
On the motion of HON. RUNGANI seconded by HON.
KWARAMBA, the House adjourned at Four o’clock p.m.
PARLIAMENT OF ZIMBABWE
Thursday, 2nd February, 2017
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. SPEAKER in the Chair)
HON. MISIHAIRABWI-MUSHONGA: On a point of order in terms of Standing Order Number 69.
THE HON. SPEAKER: What is your point of order?
HON. MISIHAIRABWI-MUSHONGA: I stand on a matter of
privilege as per Standing Order Number 69 and I raise this particular point of order with a very heavy heart Mr. Speaker. I say heavy heart because it is an issue that involves the media with whom I am intimately involved in because of my profession and I have in my years of activism defended their right to exist. Mr. Speaker, the issue that I am asking you to rule on relates to a debate that I had in this House on Wednesday, 1st February, 2016. You will remember Mr. Speaker that in that debate, I presented to the Minister of Finance and Economic Development a bouquet of flowers to which I asked that they be given to a lady Mrs. Mhini. I went into detail about what this woman had done in relation to the issue of sanitary wear. You remember Mr. Speaker that in remonstrating me you said that you were not going to allow this to happen again; you referred this particular issue as an issue of human dignity. You referred that it had been raised in the Westminster House and I understood you to mean that you were going to allow this to happen only because you really felt that it was not a frivolous matter.
Mr. Speaker, a journalist, fortunately I do have his name here because he has his bi-line, by the name Zvamaida Murwira of The Herald proceeded to write an article. Let me for avoidance of any doubt; I am not asking that this particular journalist should have written about my debate. He is under no obligation to do so but I think what he is under obligation to do is to write the facts as they happened.
In that article, he writes about everything else that happened in the
House and all the other debates, and decides that in his last paragraph, he will put this. “Earlier on, proportionate representative Member of
Parliament Mrs. Priscilla Misihairabwi-Mushonga MDC gave Minister
Chinamasa flowers for his sterling work to try and steer the economy”.
Mr. Speaker, this is not only malicious but it is sexist in the highest order. I will tell you why I think it is sexist. If you go into the entire article, this particular journalist makes a point of quoting every other person that he wants to write in his article and quotes them verbatim.
Ironically, all these people that he quotes verbatim are males. He quotes Hon. Chakona, Hon. Maridadi and Hon. Chinotimba. When he comes to the reference about me, he deliberately puts a misrepresentation on what happened.
This cannot be a mistake. It is somebody who deliberately wants to undermine, not only the debate that is here and this is why I am standing up. If this had been any other political debate, in spite of the fact that I would have known that I am in the legal right, I would not have raised it in this manner. This is because I was raising something that some of us really think is fundamental and it is an issue of human dignity to quote yourself. I seriously think that he needs to be taken in for Contempt of Parliament. It is not new for that to happen Mr. Speaker.
In the year November, 2000, the then Speaker of the House, Hon.
- D. Mnangagwa, now the Vice President, ruled that the Financial Gazette publication was in Contempt of Parliament. I am asking not only for the publication to be in contempt of Parliament. I am asking for the individual particular journalist to be in Contempt of Parliament. Section 21 of our Privileges and Immunities Act is very clear, that the offences that are defined in the Schedule of the Privileges and Immunities Act are an offence.
I will refer you to the Schedule Mr. Speaker which you put in our
Standing Rules and Orders. That Schedule has No. 10 as an offence;
“willfully publishing a false or perverted report of any debate or proceedings in Parliament or willfully misrepresenting any speech made by a member.” It is more serious because I also note that last year, in one of your Speaker’s dialogues, you had a dialogue forum with the media practitioners. You took them through the Constitution, the Standing Rules and Orders and you also took them through the Act.
You were very clear that you were going to allow the media to come into the House to cover the proceedings of the House, but you were asking them that they were under obligation to cover those with integrity. Mr. Speaker, my ruling is very clear, my prayer is very clear. I ask that this particular journalist be taken in for Contempt of Parliament. I ask that the publishers be taken in for Contempt of Parliament because they have an obligation to check that those issues that are being raised in the House, are raised with the integrity that it deserves. Mr. Speaker, I am hoping that you will get back to me after you have considered this particular prayer. I thank you.
THE HON. SPEAKER: Order, order. Hon. MisihairabwiMushonga, I will study the publication and if you could favour us with your observations and then we will make a ruling next Tuesday on the matter which is serious in terms of impinging upon the integrity of the
House. Thank you.
HON. HOLDER: Thank you Mr. Speaker. Similar to what Hon. Misihairabwi-Mushonga is mentioning here, there was an article written by Langa saying that Members of Parliament come to Parliament drunk. I was implicated because of one of the Hon. Members who just through his mouth said that Hon. Holder is drunk and nothing was done about that. I ate what we call humble pie and it is hard to swallow. Nothing was done about that, why???
THE HON. SPEAKER: Order, Hon. Matangira, please Order. When the Chair has made a ruling, you cannot debate on a similar matter. If it was a matter that affected the Hon. Member, you should have raised it on a similar manner like what Hon. MisihairabwiMushonga has indicated. So, it cannot arise from her order of privilege today. Thank you.
HON. NDUNA: On a point of order. Thank you and good afternoon Mr. Speaker. I am quite alive to the fact that the other day Hon. Minister Chinamasa stood up and gave an eloquent...
THE HON. SPEAKER: What is your point of order based on?
HON. NDUNA: It arises from that Mr. Speaker. I wanted to give you a brief...
THE HON. SPEAKER: I want the Standing Order.
HON. NDUNA: On a point of privilege Mr. Speaker, it is Order
No. 69 which goes as follows: When he asked for Automatic
Adjournment to be removed from 7.00 o’clock, what also needs to cascade downward is that the administration which also has to sit out and also do the Hansard long after we are gone and to upload it on the Internet two hours after the adjournment be considered. Mr. Speaker Sir, today as I wanted information from Hansard, I got information to the effect that there was no food offered to these people who are working into the wee hours of the evening, who are Administration of Parliament, who are Hansard operatives in particular. It is my request therefore that as the head of Parliament, as we remove the Automatic Adjournment, it also goes down to these administrators who are here to burn the mid-night candles so that the ethos, works and the issues that are debated in Parliament come out on the internet. I thank you.
THE HON. SPEAKER: Order, why was this not raised at the material time?
HON. NDUNA: I went to Hansard today to seek information that
I wanted from some Hansard transcripts, Mr. Speaker.
THE HON. SPEAKER: Order, order. Please take your seats. I would like to thank Hon. Nduna for his point of order and advise that all staff members who work late are given a late allowance for that. So, they are recognised.
MOTION
LEAVE TO MOVE RESTORATION OF THE SECOND READING
OF THE FINANCE BILL [H.B. 3, 2017] ON THE ORDER PAPER
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, since the
beginning of the debate on the Budget, we have had debate aborted on two occasions for lack of quorum. That does not speak very well of us as Parliament. It does not speak well of our obligations as Parliamentarians and I believe that we should always consider the work, especially of the budget debate, in a very serious manner.
So, I am standing today in respect of last night where a debate was aborted due to lack of quorum and I am now seeking leave for the second time in two weeks, to move that the motion on the Second Reading of the Finance Bill [H.B. 3, 2017] which was superseded by lack of quorum be restored on today’s Order Paper as Order Number 1
in terms of Standing Order Number 73.
Motion put and agreed to.
THE HON. SPEAKER: I thank you Minister for your preamble to your request and I am sure Hon. Members have taken note of the dereliction of duty, particularly when we are discussing the National Budget. I hope it does not happen today. If it so happens, I will want the list of those who will have remained behind so that we deal with those who have caused lack of quorum.
MOTION
RESTORATION OF THE SECOND READING OF THE FINANCE
BILL [H.B. 3, 2017] ON THE ORDER PAPER
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I now
move that the motion on the Second Reading of the Finance Bill [H.B. 3,
2017] which was superseded by lack of quorum be restored on today’s
Order Paper as Order Number 1 in terms of Standing Order Number 73.
Motion put and agreed to.
THE HON. SPEAKER: Just a note before I proceed, and this is for the Clerks at the Table. Yes, on the Order Paper, we have the names of all those that were here and we shall compose that list of those who were not present and I will deal with that in the most appropriate manner.
HON. CHAMISA: Well, I have taken note of what you are saying that you intend to deal with those who were not around. I am not so sure whether that is a promise or a threat, but Hon. Speaker Sir, we appreciate the concerns that Parliament has to be in session all the time, but the predicament Members of Parliament are encountering is that we do not know the agenda of Government. So, when we come here as Members of Parliament, you know in terms of the rules, you are supposed to sit until when the business adjourns, but you are aware of the competing interests in terms of time, representation of our constituencies and making sure that we do other work. As you know, Members of Parliament come here literally moonlighting because of their circumstances. It think it will be very difficult, Hon. Speaker Sir, for you to come to the conclusion that absence is on account of truancy, absence is on account of delinquency, absence is on account of indiscipline, absence is on account of mere dereliction of responsibility of duty.
There are many factors which have to be investigated. You may need to investigate into the affairs around the welfare of Members of Parliament. I know you are not an exception, Hon. Speaker Sir. You also leave this Parliament from time to time because you have to find a way of surviving. Your Chair, Hon. Speaker Sir, has not been given the dignity by Government. The dignity that has to give it the comfort and security of that office and we are really worried about that. It extends also to your Members of Parliament across the political divide and it is an issue you may need to take due cognisance of.
So, what do I say and what am I saying? Let us be clear. If the
Minister is to come here to say, this is what we want as Government, let us know in terms of the various time lines and trajectories he is going to take to have this matter debated. If he wants our time, he must actually give us time to say, we want to execute this thing so that the Bill is adopted by that time so that we are available. Now, we are guessing, we do not know what he wants, we are just punching in the air. We cannot just come here in Parliament without the full knowledge of the intentions of the Executive. Once he is clear to us, we will also be able to assist
Hon. Speaker Sir. However, I totally appreciate that we have to be here in Parliament and on this side of the House, we are always punctual and I know that, that side of the House is always punctual, save for the circumstances of survival and also subsistence of our offices. Hon.
Speaker Sir, please let Government also be warned. If you may also commit to deal with the Government before you start dealing with your
Hon. Members of Parliament in terms of their conduct – [HON.
MEMBERS: Hear, hear.] –
You know that Hon. Ministers do not come on time, when they come they take Parliament as something that is just placatory and peripheral. Right now, we are aware that they have issued a Statutory Instrument (S.I) which is going to have an effect on the Budget we were discussing. So, Government must also take us in confidence; respect Parliament so that we respect them. Thank you very much Hon. Speaker
Sir.
THE HON. SPEAKER: Hon. Member, this is not a Chamber to advance populism – [HON. MEMBERS: Aaah.] – Yes, you have to go back to your Constitution, Section 119. Your first calling is to your duty to Parliament and not moonlighting. Read the Constitution, I stand firm on that one. Secondly, comparison with the Executive, two wrongs do not make a right.
If there is something wrong that is being done by the Executive, it should not give licence to Parliament to make another wrong, it is not acceptable. It is illogical. So, our first port of call is our responsibility to Parliament. Thirdly, you cannot ask the Minister to say, this business is going to take two hours. Where has that happened? It was only on Tuesday this week when this Chamber debated for more than six hours and there was no lack of quorum. It can be done. Let us protect the Constitution and create time for other things. If you come to Parliament here, representing the people, represent them fully. That is why I sit in my office and wait until the debate is completed, I do not go out moonlighting – [HON. MEMBERS: Inaudible interjections] – I have made my ruling.
Hon. Mliswa having stood up to speak.
THE HON. SPEAKER: I have not recognised you Hon. Member.
I have made my ruling and I am not going back on that. Please sit down.
Motion put and agreed to.
SECOND READING
FINANCE BILL [H.B. 3, 2017]
First Order read: Second Reading: Finance Bill [H.B 3, 2017].
*HON. MAONDERA: Thank you Mr. Speaker Sir. I would like
to add two points to this Bill. The first notice is that, the Minister would like to increase fines from level 1 to level 9. For example, fines paid to the police are being raised from US$20 to US$30. What I am saying is that, by doing that, the Hon. Minister is creating an atmosphere which is conducive to the perpetuation of corruption because if fines are high, motorists cannot afford and they will negotiate with police officers for bribes instead of paying the fine of US$30. I represent the Glen Norah Constituency and people have a bad feeling concerning the increase on fines. Is the Hon. Minister aware of the economic climate in the country, we cannot afford such increases.
Money is a problem, we are facing a liquidity crunch and already people are talking of the problems they face in paying these spot-fines. They are more of being forced instead of being given some time to pay over a period of time; the money should be paid there and then. We are appealing for point of sale machines to be put on the road blocks or police stations so that people may swipe. I fail to understand the logic of raising these fines to such levels. I am appealing to the Hon. Minister to have a rethink. Minister, the people of Zimbabwe are suffering a lot, please give them a respite. We know as representatives of the people, we are very sympathetic to the people’s cause. We are all aware of the fact that most of our people in Zimbabwe cannot afford a meal and our roads are full of potholes and vehicles are being damaged by these potholes. When a person is arrested for driving a faulty car he is made to pay a fine and yet the damages are caused by our roads.
Therefore, I am appealing to Hon. Chinamasa, please suspend the proposed fines. You also talked about ring-fencing US$0.05 on airtime which will be used in the health sector. What has since happened is that nobody has had any monies paid for their medical bills especially for people who want to go outside the country for medication be it India or South Africa. I am appealing to the Minister that if the money has been collected as a health fund please let us use it for health funding. Let us not plagiarise, let us not misuse this money, if we do that we will be creating a great problem for the country.
As far as you know, we have children who have health problems. What we want to see as Members of Parliament is when these monies are deducted; we will play our oversight role and see how the fund which will have been created is going to be disbursed. We do not want to come to Parliament and start debating on the abuse of funds. At the same time I would like to congratulate the Vice President of the MDC-T Hon. Chamisa who has celebrated his 39th birthday today.
*THE HON. SPEAKER: Is it true that it is your birthday.
HON. CHAMISA: Yes – [MDC-T HON. MEMBERS: Happy
birthday to you.] –
HON. MLISWA: Thank you Mr. Speaker for giving me this
opportunity to debate. There is a book but- I have forgotten the author which says “first things first”. Section 325 of the Constitution is clear about the funding of Parliament, we continue to sit here and go through the necessary processes as legislators yet Parliament is underfunded. In terms of the Budget it is important that the Minister of Finance and Economic Development looks at the priorities. We represent people and they believe that whatever the Minister of Finance and Economic
Development is saying is coming from us after their representation.
Members of Parliament do not have resources to even get to their constituencies they wait for fuel coupons like school kids who are waiting for milk. What concerns me is the amount of time Members of Parliament are spending in doing useless things because Parliament is underfunded and for as long as it is underfunded, in The Herald today, there is a headline of a legislator who is involved in crime allegations because of underfunding. A lot of us will follow; we are now resorting to means which we are not supposed to be what we are supposed to do because we are underfunded. I cannot say much because it is case before the courts but it is just to say that they are more cases coming because we underfunded.
You then expert this nation to come up with a holistic budget without the people’s involvement so, who are we representing? There are certainly not enough resources for us to get to the people, to hear what is affecting them and then feed into the Budget through the various channels which are there. You have a situation where the Executive expenditure is high, “first things first”. When the Budget is being looked at, you have the aspect of production. There is so much money which is spent on having to import what we could be producing here, for example ZISCO Steel. I do not see anything meaningful in the Budget based on importing but not producing industry or agriculture.
In my constituency we have that imports buying steel from South Africa. The amount of money which is being spent is a unjustifiable. A good example is a company that is manufacturing nuts and bolts in Norton Central African Forge. When the companies are buying equipment from South Africa, they are given the total package of the nuts and bolts, it means that we are equally importing that yet we have companies who manufacture that here. I do not see any measure from the Budget which indicates that the local manufacturers would be protected and be capacitated. So, it is equally important that local manufacturers are actually protected in this Bill to ensure that production is high.
We have a situation where in terms of expenditure of the Executive there is no indication whatsoever of cutting down costs. I, in my last tenure in Parliament did not take a car because of the Government emphasis on ZIM ASSET and to support Willowvale Motor Industry which manufactures vehicles has been manufacturing vehicles it has become a warehouse where maize is stocked. From a manufacturing plant to a place that stocks maize, ZIM ASSET which is the Blue Print document for economic recovery is not being addressed. Is it working, is it not working? We cannot have a situation where we have VAT being imposed unilaterally without considering the economic climate in this country. People are suffering; we are being insensitive to the plight of the people without providing a solution at the end of the day. Where are they getting the money?
Government has gone into a mode of waking up have to impose certain methods of getting money from people which clearly not fair, you must ask yourself, where is the money coming from for the people to pay? The levels of corruption are out of this world. Nothing has been done to address the aspect of corruption. There is no political will whatsoever, I keep saying that for as long as there is no discipline from the Executive for the country to be able to address the aspect of corruption, we are still not going anywhere. Those issues are critical even in the foreign direct investments that we need. If a country is not willing to deal with certain issues which have become an impediment on growth from an economic point of view, then we cannot just be used just to be rubber stamping.
The issues that the parliamentarians bring up through your guidance have got to be implemented. They have got to be put into practice. This is the reason why when it is time for there to be a quorum it is not there because for a every time we are speaking to executive who seem to be deaf and dump yet they are not. We cannot continue operating like that and we cannot continue having a situation where we are please bring the Executive to order. I have not seen anything at all in terms of the Constitution if you go through it. The Auditor General’s report critical in us having to pass the Bills as it exposes all the
Government departments. So, what is the role of the Auditor-General? If the Auditor-General is clear in indicating that there is financial indiscipline in the Executive, why do we keep giving money to the very same institutions which have been exposed by the Auditor-General? Are we not undermining the office of the Auditor-General? It is her mandate that she has from the constitutional point of view. This is why I equally agree with Hon. Chamisa than no one is bigger than the other. We all complement each other. A car has six pistons. The six pistons must fire. Unfortunately, there is one piston which is not firing, that is the Executive. If it is not firing, how is the car going to move?
It is very important that we do not just come here to debate. We do not come here to be whipped. Fortunately, for me, I do not belong to a party and I am not whipped by anybody. I pity those who belong to parties. We cannot be whipped into things which we know are not real. We must face reality. Members of Parliament, the Executive must start facing reality. We cannot be a Parliament which will be known for just having sat, passed Bills and not addressed any issues. There is no ad hoc committee since this Parliament sat which has been put together to address issues at that point in time. When we wanted to create one for corruption, it was moved by Hon. Zindi at that time; it was shot down but there is a provision if I am not mistaken for Parliament to set up an ad hoc committee which will deal with the matter. After the matter has been disposed of, the ad hoc committee’s term ends.
Nothing like that has happened. It is like everything is normal in a country where things are not normal. It is like we must come here – sit yet we have people to represent and I agree with you Mr. Speaker Sir. The mandate that we have from the people equally expects us to be with the people. We expect to hear what the people have to say but that is not happening. To me, it becomes very disturbing at the end of the day to say we only got a year or so before this Parliament, we have to ask ourselves what have we done?
The Minister of Finance works hard. At times it is not about working hard but it is about working smart. There are those who work hard but they do not achieve what is achieved by those who work smart.
We have got to understand. Everybody understands that Hon. Chinamasa works hard but it is also about working smart too. Working hard without smart – there is also an issue there. We have got to be clear on that. This is where we need to be very clear. I am not taking away from him but I must be very clear.
I believe that if you are going to be the Minister of Finance, you must understand finance. If you are going to be the Minister of Justice, you must understand law. I am not undermining him but do we not have economists in this country who can be Minister of Finance, present a proper economic blueprint document which is realistic? Now we do not know if there is something that we need. To me it is equally important for us to realise that for progress sake.
The reason why I am saying this at the end of the day is because there are absolutely no results economically. There are absolutely no results in all the things we are doing from an economic point of view and it is important that there is a review of policy. A review is critical and it is incumbent on the person that is responsible in discharging their duty. We cannot be saying people are working when there are no results.
THE HON. SPEAKER: Order, order, order, order! There are certain statements that smust try to make some sense. Any Minister is not self appointed. He or she is appointed by the appointing authority. So, you cannot cast aspersions on the portfolio of the Minister who did not appoint himself. There are a number of examples elsewhere where Ministers of Finance are not accountants or economists.
As a matter of fact, without defending the profession, lawyers are very learned and very expansive in their understanding of issues. You may carry on and please may you wind up.
HON. MLISWA: Mr. Speaker Sir, I remain guided by the Constitution for us having oversight. In my role of oversight, I do not look at how they are appointed. As long as it is within my ambit as a legislator, I think it is equally important from an oversight point of view to be able to also look at how they discharge their duties.
We are talking about an economic situation which is not improving. That then, from an oversight point of view, brings me to question the competence of the person doing the job. That is oversight.
Unless with your guidance you are saying it is not.
THE HON. SPEAKER: Order, order. Hon. Member you cannot argue with the ruling of the Chair. The point you are making could have been made very differently and I am sure the Hon. Minister will address the issue accordingly. Can you proceed with a new area of your contribution?
HON. MLISWA: Mr. Speaker Sir, I am talking what the
Constitution says about the Parliament oversight. It is about the Constitution and it is not about your ruling. Your ruling must be based on the Constitution and if I am wrong in terms of the Constitution, then you can cite the section of the Constitution. I can equally give you the section of the Constitution that empowers me to have oversight over the Executive and Minister Chinamasa is part of the Executive. I stand my ground from the constitutional point of view. If you give me two minutes, I am able to give you the section in the Constitution that allows me to have oversight over the Executive.
THE HON. SPEAKER: Hon. Member, we are not discussing the issue of oversight. I am correcting you on the question of appointment.
If you have nothing else to say you can take your seat.
HON. MLISWA: What is critical Mr. Speaker Sir, is the aspect of the Bill which I think has not got the merit it deserves and in saying, it needs results. We have gone through this before. We have gone through discussing issues in this Parliament. If we can be honest, the discussions have amounted to nothing. This is the reason why passionately, from a patriotic point of view; I am now starting to doubt those given jobs by the President to execute their jobs because we have to get somewhere.
There is no point sitting here and rubber stamping. I am not like that. I am not whipped and that is my point. I must be able to say, Minister, with due respect, we have gone through this Bill; it talks about the same things all the time. There is no money coming through and there is no production at all where money is going into production so that that Budget can be funded. We have fake figures which are presented to us. We sit as Members of Parliament where Minister of Education will be given so much money. At the end of the day, they are not given that amount of money.
This is where I am now saying, why do we not have a situation where we are realistic, honest and we are not known to be a nation which is passionate about writing and does not implement. That is what we are well known for. These are serious issues which I think if the Minister dealing with this Bill and us debating this Bill – there are certain things which are missing which we all know about but there is equally no solution.
It is important for us not to send a wrong signal to the people because as Members of Parliament, we are under pressure in our constituencies to deliver but we deliver because of the Government policy which is there. Our role is not for us to make money. Our role is to implement our programmes in our constituencies through the Budget, through the Treasury at the end of the day. If the Treasury is not functioning, then we have no role. It is equally important Mr. Speaker Sir, that the matter be taken with the seriousness it deserves, not that I am undermining any of the powers that they have before then but I equally have the right to judge the work that they are doing in terms of what they bring before us. It is equally important Mr. Speaker Sir, for you – several times, we have pleaded with you to talk to the Executive at the end of the day. I even said the last time, at the Cresta session that is it not about time that you talk to the President about the performance of the Executive because it has to get to him. I cannot do it. Through you, we are trying to do as much as we can. I think it is important that we meet somewhere so that we serve and move this country forward.
We are all here trying to make sure that the country deals with bread and butter issues and this Bill will never and does not deal with bread and butter issues. From an agriculture point of view, as much as we are talking, we are seeing the crops being green, that is compound but you harvest through ammonium nitrate (AN). There is a shortage of AN in the country. I am under command agriculture, my crop is looking green but it is becoming pale because of the lack of ammonium nitrate. This has a bearing on the GDP of the country. This has a bearing on the very same Bill that he is talking about. Being green means nothing. Those who grow tobacco will tell you that it is great to see a green and a big leaf but it is the curing of the tobacco that ensures that you get the money that you require.
Mr. Speaker Sir, I appeal to your office to ensure that the Executive performs and the message must get to His Excellency who, from your guidance and rightfully so, is mandated to appoint the Executive but they are failing in discharging their duties. These Bills mean nothing at the end of the day. What we are doing amounts to nothing because there is no result. Thank you very much.
*HON. ZINDI: Thank you Mr. Speaker for giving me the opportunity to make my contribution on this debate regarding the 15 percent VAT. This is being put on food products such as other groceries. It pains me because as a result of the 15 percent VAT, most of the families will not be able to have food on their table because it will be too expensive. The problem I have with this Budget is that when Government is sourcing for funds, instead of thinking of other ways that may bring in the money, they are thinking of increasing the prices. If the milk was selling for 10 cents, it is now selling at an increased price. How many people can afford that kind of food, especially with these increases?
I was reading in the newspaper today, we have researchers who are looking at this Budget, they have come to the conclusion that the
Minister is looking forward to increasing funds into the coffers of the State. On the contrary, the 15 percent which has been introduced, there is not going to be any increase in the coffers because he is now promoting backyard stores. They are going to buy from the informal sector where there is no 15 percent VAT. This means that there is going to be a reduction in the revenue for the Government.
When dealing with the informal sector, ZIMRA is not going to be able to trace all the transactions that are done by this sector because meat had no VAT but now VAT has been introduced. There is going to be malnutrition in the State because not many families are going to afford the price of meat. I am appealing to the Minister of Finance to look for other ways of sourcing funds for the Government because the way we are doing it seems to be squeezing tight, especially those at the bottom of the ladder of the economy of the country.
Let me talk about the ZIM ASSET, Value Addition and Beneficiation. My hope was that the Minister of Finance could have crafted a policy that is going to create beneficiation on the agriculture sector. Let me give you an example, in China, they consume over 52 metric tonnes of chickens per year and as Zimbabweans, can we not supply these chickens to China where there is such a big requirement and consumption of chicken. I know, if we start saying we want everybody to benefit, the old people in rural areas all have roadrunners and they will benefit. We will harvest those in the rural areas, put them in containers and sell them to China. The processing equipment is very easy to manufacture and you can easily get that.
Since we have a mega deal arrangement with China, they can easily supply us with the correct equipment for value addition and beneficiation. When we have acquired the state of the art equipment, we put them in different provinces such as Murambinda, Zindi, Zimunya,
Gwanda, Tsholotsho and people will process communally and funds will be deducted for the payment of that. I believe as Zimbabweans, we have a Standards Association which will tell us of the required international standard of selling our products as exports to other countries.
This is one of the ways you can use in creating funds for the State coffers, instead of going back to those people who are earning $200 and keep on burdening them with taxes. Please, let us sympathise with the people. Beneficiations, I appeal to the Minister of Finance to please look at the field of agriculture. We have goats and we have read so many articles which are saying goat meat is a favourite in the international world. When people who have been allocated farms in rural areas will be told how to process goat meat according to the international standards. In that way, we will be practical.
In Zimbabwe, we have said, our economy is agro-based, hence we need to look for ways of developing regarding agriculture. As we go to negotiate with the Chinese, why do we not look at the Zimbabweans, especially those who are beneficiaries of the land redistribution so that they benefit from this equipment. I read some article and it pained me that when we look at countries like Argentina and the United States of America, they are the people pushing products such as maize and other cone. They require cone which can be exported to China, the United States and Argentina to use it as animal feed.
I am appealing to the Minister of Finance to please look at beneficiation and value addition instead of squeezing the people of Zimbabwe who have tightened their belts and they cannot tighten them anymore. We have increases on the fines, on whatever it is and increases on food you wonder how do Zimbabweans survive because, the Government is squeezing them financially.
My last contribution is, we usually talk of Foreign Direct Investments (FDIs). I need to be educated because I thought that when we are talking of FDIs, it means that we have to develop our economy and create jobs so that many people will benefit. But, when looking at what is happening, we are asking foreign business people to come to Zimbabwe to bake bread, for example the Chinese. How can we get somebody to come and bake bread in Zimbabwe? They are a family who bring in their own equipment. So, we wonder how we would be creating employment and economy for the country. Is that Foreign Direct Investment – definitely that boggles the mind.
This morning I went to some studio to be photographed and this shop is owned by the Chinese – a lady and a man and these people renting this shop are Chinese. I ask myself, do we not have any reserved sector for the people of Zimbabwe than letting them being taken over by foreigners such as the Chinese? Where do we expect the Zimbabweans to go? If you go to suburbs like Avondale and Mt Pleasant, the restaurants in those areas are run by the Chinese who have things like
the Shangri-La. You ask yourself if this is what we call employment creation and is it going to lead to the growth of the economy? It really boggles the mind. I have noticed that when they are coming, they will be a family made up of a husband and wife. I am pleading with the Minister of Finance and Economic Development as we have some areas which we were told that they were reserved for Zimbabweans.
Therefore, let us make it a point that whatever happens, we will not have a foreigner who will come and set up a restaurant because it has been set aside for the people of Zimbabwe. Photographing has been set up for the people of Zimbabwe and even the bakery that I talked about. So, when this family is coming to do that, how do they create the money? You also notice that when you swipe on their machines because they use these swipe machines, the amount got is electronically taken to China - Beijing, or whatever town. Therefore, I am appealing to the Minister to see that we have some areas which are reserved for the people of Zimbabwe and we have retail shops which unfortunately some of them have been taken up by the Nigerians. If you go to the shops in the central business district (CBD), we have foreigners who are operating them but this should be set aside for the Zimbabweans. You simply go and buy some goods, put them in a shop and put some markup of 20% and you benefit. Therefore, I am saying, let us reserve the side given to Zimbabweans. I would like to thank you Mr. Speaker Sir for the time you gave me.
Let me conclude by looking at the user fees for example, if you go to the Ministry of Health and Child Care or the Ministry of Higher and Tertiary Education, Science and Technology Development who have universities which they are running and the students pay tuition fees. Our intention is, when you create that Blue Book Minister, you should tell us how much money a university such as NUST has collected so that we see it in the Blue Book because, you could say we have a smaller cake, yet we have some institutions which are harvesting millions of money through fees. Even when they go to health institutions – how much are they collecting? These should be reflected in the Blue Book so that we know how much money is being collected and also know how the funds are going to be used. I may also want to include the fines which are paid to the Zimbabwe Republic Police – how much are they collecting. I know that they have a certain percentage which they have to retain but, we need to be told how much the police have collected and the fee retained. I thank you for giving me the opportunity to make my contribution.
+HON. G.M. MALABA: Thank you Mr. Speaker Sir for giving
me the opportunity to make my contribution on the Finance Bill raised by the Minister of Finance and Economic Development. I have a few contributions which I want to make on this Bill, especially regarding this budget.
When the Minister was making this outline, there are lots of things which I have observed which I think are shortcomings of this Bill. The first one is, Bulawayo was an industrial City which was known throughout Zimbabwe that it had the biggest industry and Zimbabwe is being left out. The people of Bulawayo are crying because they feel that they are being left out in the cold. I remember sometime back when we had the Government of National Unity; we had a fund which was created. It was called DIMAF and it was supposed to be used in assisting in the resuscitation of the industries in Bulawayo. In 2015, the Ministry of Industry and Commerce also gave a Statement saying that they have some ideas and funds put aside for resuscitating the industries of Bulawayo.
Hon. Minister Chinamasa, in his budget speech did not mention the steps taken in developing the Bulawayo industry. The people of Bulawayo are in problems because there are no jobs there and the youths are now drunkards and the girls are now into prostitution because they have no employment. Hence, they have to get money through prostitution and the men are drunkards. We need to look for ways of creating funds.
We know that one of the biggest industries in Bulawayo was the railways and what now remains is that we have the Railways in the country but it is not really being resuscitated. The Minister of Transport and Infrastructural Development informed the nation that they bought 31 wagons from South Africa for use by the Railways. But what I know is that, in Bulawayo we have industries which can manufacture those coaches. We have Morewear and ZECO but we get people who prefer going to import these wagons when they could create jobs and empower these organisations by giving them money so that they can manufacture these locally. It is a pity and it pains me. When I was looking through this budget, I also noticed that the Minister of Transport and
Infrastructural Development has asked for some funds to be used in the resuscitation of the railways which was US$1.4 million. This is going to be used for the recapitalisation and use of the signals which had been vandalised.
We know that when we talk of railways, we are not only talking about signals and wagons, but we have the formal workers of the railways who have not been paid for years yet these people continue working. We have some people who are benefitting from that and yet the workers who continue to come patriotically are not benefitting. We need to see the growth of Bulawayo. The railways was the biggest industry in Bulawayo and it was the biggest employer. What is happening now is that these people simply go to their work stations at the railways just to while up time and go back to their homes.
We have heard the railways saying they are looking for partners which may help them in resuscitating its system. Why are we not clear on what these partners are doing, who they are and their requirements? Why do they not start working so that we see some signs of improvement? The people of Bulawayo and Matabeleland in particular, for the past years have been looking for a development programme such as the Zambezi Waterway. What is happening to the Zambezi Water projects? So much work has been put on this and it was going to create some greenbelt from Hwange to Matabeleland.
The waters passing through these areas will create this greenbelt. We have had the change of Government and these people have not seen any development of this project. The people of Matabeleland are saying,
‘up to when are we going to continue suffering because we should benefit after these waters have been brought from the Zambezi waterways. We are suffering.’ The people of Bulawayo are mourning, grieving, crying and they are saying, please put into fruition and implement the Zambezi Water Project.
Let me turn to the Cold Storage Commission. This is now a pale shadow of itself. It is no longer a meat processing centre. It has been turned into an SME centre. Some people are attending churches, chain smiths and tailors are now in that place and yet in the past, when you were passing through the premises of the Cold Storage Commission, you would get the smell of beef. Now there is nothing of the sort. Where is the problem in resuscitating the Cold Storage? Who destroyed this essential institution and what was his intention?
Hon. Minister, we had a one to one discussion with you and the Head of Matabeleland. We gave each other ideas on how we could revive the Cold Storage. We came to a conclusion that there was a clear path which we could follow. The main part of the resuscitation was the Cold Storage Commission. My question still stands, will always stand and stood even yesterday why we continue talking. When we go to Lupane to a place called Dotsholo, there is a place which has a very promising future and it has lots of deposits of methane gas.
For the past five years, we have been told that we will soon be mining this gas in Lupane. We have heard that some partners have been identified who could go into joint partnership with the Government and mine this gas, but why till now? Are we still waiting for mining? Why are we still suffering? We know that if we start mining this gas, not only will Matabeleland benefit, but the whole country will benefit. I wonder why the Government is dilly dallying on this project. Why are they procrastinating on such a project?
THE HON. DEPUTY SPEAKER: Hon. Member, please address
the Chair.
+HON. G. M. NCUBE: Hon. Chair –[HON. MEMBERS:
Laughter]- Thank you Madam Speaker for the direction. I will follow the right path. What I am putting across is that the Government should create these ideas and they should be put them into fruition. They should be implemented such as this Lupane gas. This is where the country may benefit. We know that Zimbabwe is richly endowed with a lot of riches by God. Zimbabwe is wealthy, rich and it is blessed. But, because we cannot be organised, hence we find ourselves in such problems and because we are failing to implement the plans which we craft, we end up looking poor, and we seek for assistance from other countries when we have the solutions within the country. It pains me.
Madam Speaker, I know we are relying heavily on the Chinese Government. They are giving us a lot of things which some of them are of no value. May be they are using us as a dump site. My question is, why do these Chinese people not come and open up these industries which have been shut down so that the trinkets and the small things that they are importing into our country, they come and manufacture them.
The dolls and the trinkets...
THE HON. DEPUTY SPEAKER: Hon. Members, you are
making a lot of noise. I know that some Hon. Members do not understand what the Hon. Member is saying because of the language, but I think it is better to respect the debate. If you follow up, next time you will understand what he will be saying.
HON. G. M. NCUBE: Thank you Madam President. I know there are some of you who do not understand Ndebele, please come to me and I will explain. I can speak any language in Zimbabwe and I will use my mother language. Where is the problem Madam Speaker? We have people who are using us as the dumping ground and filling up our shores which are even stifling the growth of our industries. I can give you an example. We have Hon. Members who brought some of these goods in this House to show us that these are just things which are not meant to last for a long time, which were once termed zhing zhong. Why do they not come into this country and manufacture these goods?
We have big projects in our country and very soon, we will be talking about the Beitbridge to Chirundu highway. This is going to be floated as a tender. This tender will be awarded to a foreign country like the G5 of South Africa which constructed the road from Bulawayo to Mutare. G5 is not the one which is going to do that job, but it works hand in hand with the companies in Zimbabwe which they subcontract.
At the end of the day, they take the money to South Africa.
The road I am talking about to Chirundu has been won by a foreign country and this foreign company is going to work hand in hand with the companies in Zimbabwe and my question is, why do we use foreign companies? My wish is that we should use local companies and I wish my fellow Parliamentarians would understand what I am saying.
The biggest question still stands – up to what time should the people of Bulawayo keep on mourning, keep on crying for the development of their city and area.
*HON. CHAMISA: Thank you Madam Speaker. I want to add my voice…
THE HON. DEPUTY SPEAKER: Order. Our debate should be
focused on the Finance Bill and general issues relating to the revenues, not everything we are debating because I think we got a chance to do this, but now we have got to be focused.
*HON. CHAMISA: I do not want to waste time. I have got four things to add to this budget which will help our Minister to build the economy of this country. I said I should use my mother language so that I can bring out exactly what is in my heart so that everyone will benefit.
I want to thank you Madam President, that when you read the statement which the Minister brought in, there are a number of things that we should look at. The one thing that is surprising is the money that is allocated to Parliament. If we look at the money that is allocated to Parliament, it is very little. I was in the West African country, Ghana and the Members of Parliament there, each and every one of them has offices. They have a building which houses the office of Members of Parliament and each MP has two assistants who help them to do research. If we do not do that, the debate that will come out of this Parliament will not be in-depth. So, this issue of Parliament funding is very important.
That is not the end. What I also saw in Ghana is that there are houses for MPs. MPs do not stay in hotels, but they stay in houses which are built by the nation. We are wasting a lot of money paying hotel bills. We should build a village where MPs should stay when they are on Parliamentary business. So, Minister, for you not to crack your head with this budget, I think we should look into the money that we allocate to Parliament. We do not want to come back next time and talk about the same thing. Some MPs die in hotels and otherd get their things stolen in hotels. In hotels you come across a lot of things. MPs should have their own security when they are here so that we curb crime which affects them.
The second thing is about education. The money that is being allocated to education is very little. For a country to be strong, more money should be channeled to the primary and secondary education. If it were possible, I think we should say in our budget, from Grade 1 to Grade 7, it should be free education. The Government should pay their fees. What we believe in is that in Government, when they are collecting money, they should make sure that from Grade 1 to Grade 7 the Government pays and then parents would know that from Grade 1 to Grade 7 fees is being paid by the money coming from people who are paying taxes. We have seen parents falling into debt because they are failing to pay school fees for their children. Grade 1 to Grade 7 pupils should be allowed to go to school for free and then the parents would prepare for their secondary education. We can take this money from mining. That money that was stolen, if we had taken it and given it to each and every one of us, all the people would be thanking the Government. It is possible if we go and take the money that is only getting to the rich.
What is very surprising is that when it comes to corruption, we talk a lot about corruption, but there are others who are getting more than others. Our resources are dwindling, but those who are benefiting are still benefiting. What I am saying is that the Ministers who are corrupt, we have never seen anyone being dragged to the courts for corruption, which means that we have a challenge there for money not to get to education.
We know that when Hon. Chinamasa was growing up, I was told by one of my colleagues that he was very intelligent. The white people would really fear him, but they were given grants during that time and it is public knowledge. What we are saying is, we are killing children who are coming from poor families because they cannot get money to send their children to universities. We should help the poor; we should help those from the rural areas so that they go to school and further their education through grants which come from the Government.
When we were student leaders, we were given money and we were expected to return the money after completing school. We were many, but the Government would find ways. I plead that we should look into this so that in schools, they go back into cadetship. I think we should go back to the grants because grants will not work if we have not looked at employment and revamped our industries.
How do we revamp our employment and industries - is that we should look at our Government policy. We should have a consistent policy where there is unity because we have seen disunity between the Ministry of Primary and Secondary Education and the Higher and Tertiary Education, Science and Technology Development Ministry on the implementation of STEM. This only goes to show that Government is marred with problems of disunity and disagreements amongst its own ministries. This will reduce the number of investors coming into the country because no one wants to invest in a country where policies are not consistent yet they would have invested their monies. That is what we should address so that we can begin to earn foreign currency and use it wisely.
Madam Speaker, in the Budget presented by Hon. Chinamasa, I have noted that the issue of elections also needs to be addressed. The budget allocation to ZEC is not adequate to complete the biometric voter registration process which is now being used in other countries. The shortage of this funding will lead take us back to our traditional problem where after the elections there are always contestations. To avoid such problems, it is good to make sure that all the people who are on the citizens’ roll should automatically be registered if they are aged 18 years and above. This will make it easy for citizens since they will only confirm their place of residence. We are computerised and there should be software for automatic entrance onto the voters’ roll so that we cut on the budget of Government in conducting unnecessary processes.
There is no need to stretch the process unnecessarily. ZEC should be allocated money. I do not know what the Minister intends by not allocating money to ZEC when elections are supposed to be conducted in 2018. If these elections are not smoothly conducted and conflict ensues, it will result in our economy being shunned by investors because there will be political turmoil. We want to avoid such things so that there will be a smooth transition of power from one political party to the other. What I am talking about is happening elsewhere in Africa. There are obviously some leaders who cling to power like the Gambian President Jammeh. However, that is the spirit we want to get rid of because it reduces economic growth. The spirit of Jammeh is not welcome in this country…
*THE HON. DEPUTY SPEAKER: Order Hon. Member, you are
debating well but be guided that you may be going off topic. You are now talking about Jammeh when we are debating about our Budget.
*HON. CHAMISA: Thank you Hon. Speaker, let me leave the issue of Jammeh. I was talking about addressing the issue of elections. Allow me to discuss about the remuneration of civil servants. Hon. Minister Chinamasa has a budget which he is bringing, which should be implemented by civil servants, some of whom are helping in the Minister’s office. For example, we heard Hon. Misihairabwi referring to one of the officers, Ms. Mhini. If you observe the work of these officers, they craft the country’s Budget consisting of a lot of money, even if it is not adequate. The officers themselves are not being well remunerated. Civil servants’ bonuses are not addressed in the Budget.
This does not motivate the civil servants as they conduct their duties. The absence of bonuses is problematic as even police officers and soldiers are not inspired to conduct their duties whilst the ordinary civil servants who are responsible for implementation of the budget in ministries are equally not inspired because they are not well remunerated.
Hon. Speaker, I am requesting that all civil servants be wellremunerated despite the shortages currently being experienced. We should make sure that foreign trips by senior Government officials are reduced. I am sure that when they go on these foreign trips, they do not use bond notes in their transactions; they use United States Dollars
(USD). I conducted a research Hon. Speaker and found out that most Ministers went on holiday outside the country and realised that they were all using USD out there. We should therefore restrict the foreign trips by Government Ministers using Government funds so that we use that money for other critical departments like health and education. This can be done. If you take for an example in Tanzania, they have reduced trips by Government Ministers, let us reduce workshops done by
Government departments in hotels and even the expensive cars used by Government Ministers so that we buy low cost vehicles to suit our situation. It is not conducive to use helicopters and expensive cars when there is no money to meet that standard. They are unable to detect the presence of pot-holes on the roads because their vehicles are highly suspended and shock- resistant. Let us address that so that they also use ordinary cars which are easily damaged on pot-hole infested roads. If the Hon. Minister’s car is damaged by pot-holes like any other ordinary citizen’s vehicle, then we would know that we are on the same level with our Ministers. This will enable us to have a common budget.
In conclusion, I want to make recommendations which will lead to the eradication of all these problems. Hon. Speaker, there are two things which we need to do. Firstly, I would want to request from President
Mugabe to pick up his phone and call Mr. Tsvangirai – [AN HON.
MEMBER: Aah.] – Someone is disputing – [HON. MEMBERS:
Inaudible interjections] –
*THE HON. DEPUTY SPEAKER: Order, let us listen to the debate.
*HON. CHAMISA: Hon. Speaker, there is no Government which thrives without getting counsel and this counsel comes in different forms. Let the counsel be heard first before it is rejected. The leadership should gather, join hands with other political parties, churches, traditional leaders, Members of Parliament and industrialists in this country and figure out what can be done in terms of the problems in our midst. It is like a parasite plague has entered our household silo.
We cannot continue to bring shallow budgets like these…
*HON. MUPFUMI: On a point of order Madam Speaker. We are debating the Finance Bill, we are not at a political rally where we want Mr. Tsvangirai and the President to engage in a discussion. Let us debate issues relevant to the debate. Thank you.
*HON. CHAMISA: Thank you Hon. Speaker, you have witnessed it on your own. Hon. Speaker, the way we debated on Tuesday, I wish we can all have that mind set. When a village put their minds together, it is not possible not to come up with solutions to pending problems. I request Hon. Members across the political divide to note that there are some people whose lives come to an end before they have worked for a single salary. Some end up dying whilst sleeping on a reed mat and never experience the comfort of a luxury bed. There are youths who are not employed and have never been employed… Hon. Chamisa having been speaking to the gallery.
*THE HON. DEPUTY SPEAKER: Hon. Chamisa address the
Chair.
*HON. CHAMISA: I am sorry Hon. Speaker. Let me address the Chair, I will not repeat that. I wish we were able to come together and have a shared national vision. We do not have inclusivity in terms of gathering views from all the citizens so that we come up with a shared vision of our economy by 2023, 2025, 2030 or 2040 so that we move together with a national vision not to say that ZIM ASSET has come from one party but it should come from everyone so that people will know that we have a vision as a nation. If we are able to do that our nation will be well.
HON. KHUPE: Thank you very much Madam Speaker. Today I
want to speak as a woman and as a mother. Before I speak as a mother and as a woman I would like to allude to the fact that Government must remove the burden of raising revenue from its citizens. There are other ways of raising revenue. This country requires billions of dollars and I do not think that billions can be raised through fines and so on. We have been talking about a geological survey because Zimbabwe is a very rich country, it is endowed with enormous resources like diamond, gold, platinum, methane gas, and you name it.
The problem that we have is that we do not know how much we have underground. This is why a geological survey is very critical and important. The Minister must look into those issues because that is the only way we can get out of the problems that we are faced with at the moment. Our debt is above US$10b, this country requires more than US$20b to move this country forward and you cannot raise this money through fines.
Madam Speaker, like I said earlier on, I want to talk like a mother today because I want to talk about women. I want to talk about those in the rural areas because they are in the majority. The monies that we are talking about are supposed to satisfy the needs of these women. Without women there is no country to talk about. Half of the food consumed in this country comes from a woman’s hand. Women work 10 times harder than men and I would like to substantiate why I am saying women work 10 times harder than men.
If you go to our villages they wake up as early as 0400hrs, it is either this woman is pregnant or she is carrying a baby on her back or both. They go to the fields to till the land, to plant crops and cultivate using primitive tools in the bear sun of Africa. They come back to the village later in the day, they carry a bucket of water they walk for kilometers to go and look for water. They come back and go back to look for firewood, make the fire and prepare food their children. They sleep late everyday Madam Speaker. Women work for more than 16 hours every day and if this woman is pregnant, she does not have time to go for antenatal care.
This is why our maternal mortality is very high 900 out of every 100 000 live births meaning that more than 15 women die every day in this country whilst giving birth. Giving birth is not a punishment; we are performing a national duty by giving birth to Members of Parliament who are sitting in this House, to Hon. Ministers who are sitting in this House, to our Hon. Speakers of Parliament, people who are supposed to do things which are supposed to move this country forward. Madam Speaker..
HON. MATANGIRA: On a point of order Madam Speaker.
THE HON. DEPUTY SPEAKER: What is your point of order?
*HON. MATANGIRA: My point of order is that she is out of topic. We want something to do with the Budget and she is out of order.
HON. KHUPE: Madam Speaker, the issues that we are raising have everything to do with the Budget because without money you cannot do these kinds of things. The reason why I am raising these kinds of things is because I want this Budget to address these issues. I want this Budget to make sure that the burden is removed from the women in the villages. I want this Budget to make sure that they introduce modern agricultural technologies like drip irrigation because you use a small piece of land little water but the yield is very high.
If women were to do drip irrigation they will not spend most of the time going to till the land, waking up at 0400hrs. I want the women in the villages to open water from a tape and cook using stoves. There is bio-gas where you just use cow dung to generate gas and you can cook using that gas. You can have electricity using that gas and do all sorts of things. This Budget is supposed to be addressing these kinds of issues. They are not difficult to do, they are simply things. This is why it is said development is not rocket science. Development is about discovery and copying from other people.
We went to Bangladesh and saw how biogas is very effective. This is the reason why I am talking about biogas. I want this Budget to make sure that every ward has got a clinic so that when women are pregnant they can go for antenatal care, so that women can be checked whether they have cancer because early detection of cancer saves lives. These are the issues that this Budget is supposed to be addressing. The other issue is that I want this Budget to make sure that schools are built so that children do not talk for more than a kilometer going to school.
Schools must have laboratories and everything else so that they are able to graduate in universities, they can go to any universities. If you look at Matabeleland, some of the schools do not have laboratories so, children cannot do science subjects. They only do the other subjects and this is not right.
I want this Budget to make sure that it address all these issues so that at the end of the day the burden is removed from us mothers and our children because they is no country to talk about without mothers and our children. So, I am appealing to the Minister like I said earlier on to say you cannot raise enough revenue through fines. Let us do the geological survey that we have been talking about from time immemorial. This will allow this country to generate billions of dollars.
I thank you.
*HON. MUDARIKWA: Thank you Madam Speaker. The issue
that we are debating today is very important it is for the betterment of our country as Zimbabweans. Looking on how Zimbabwe can go forward, we should look at the history, what used to happen in Zimbabwe. Our country Zimbabwe has Chiefs called Munhumutapa. His wealth and his power were endowed in gold and this gold is still in our country. Our panners are saying that gold is now on the surface, we are going to harvest from the fields and from gold as well. What we are saying is how we can easy on harnessing gold. There is no way a country can go forward if people are ideal, we should mine that gold.
When we were growing up, if a beautiful girl comes at our school, we would wait for our brothers who were working in Harare to come so that they will talk to that girl. We want to wait for foreigners to come and harness our gold. We should go into the rivers and harness that gold. For example, when people were mining diamonds, the City of Mutare had changed but when we brought in big companies, the situation changed. The City of Mutare is now in a sorry state.
When it comes to the economy, native people work very hard. It is not a difficult thing. We have about three million people who are ready to go into gold panning. What is only needed is for the Government to go and buy gold from designated points. The gold that we have is our inheritance. We should move in that direction. This issue of prosecuting people because they possess gold should not be allowed to happen. It is our gold. Our Governor, Dr. Mangudya said if you see a person with gold, he or she is carrying the wealth of the country for the betterment of the people of Zimbabwe. With gold, we can do a lot of things. We can go and get loans.
When it comes to mining, the ease of doing business – we should not include a lot of beauracracy. During the war, some men failed to marry because of beauracracy. When it comes to the economy of the country, we should do away with a lot of beauracracy. If possible, we should give the powers and matters relating to gold and gold mining to the Minister of Finance and Economic Development. People would then deliver gold to the Ministry and be given their money.
Chrome is now US$150 from US$60. This shows some positiveness since there has been a rise on the price. We should not ban chrome mining like what happened in the past. We have a lot of people who have the knowledge and skills of mining chrome. Whether they have licences or not, people should mine chrome. The minerals in Zimbabwe are for the people in Zimbabwe and everyone should have primary rights to minerals and not to say minerals are for foreigners.
Gold can realise US$5 billion and chrome if mined, can help us a lot. Chrome will resuscitate our railway line because our trains are now grounded. If we start mining chrome, all our railway lines will start operating. Chrome mining needs only a hoe and shovel for someone to go into the mountain and start digging chrome. Everyone should be involved in matters of the economy because our main issue is to fight poverty. Many people in the country have been affected by the requirements that qualifies one to mine. People are told that if they want to mine, they should have EIS which takes about four months to acquire. The customer who needs the chrome will be gone before one gets the EIS. We are at a cross road. We should move very fast on things that are at our disposal.
We have many platinum mines in this country. Government only marks the size and whatever size is left is sold. We can raise US$20 billion per night because Government is the one that should just supervise on how the things are being mined but we want to do everything. We want to be referees and judges at the same time in mining of platinum.
This year, we have a bumper harvest of maize and tobacco. We should start introducing command agriculture to the wheat and tomato growing so that our house is always in order. We should help our people when they are working. We have the authority to do everything.
We have solar energy and we should look into that as well because people look good because of the sun. Solar energy can boost our economy. We should also engage into renewable energy so that people will see using the sun and we revamp our economy. We should work together to ease our burden.
There are some Hon. Members who spoke about education. Government is supposed to build schools and pay teachers but as parents, we should be at the forefront to build schools. The power that we used in bearing children should also be used in building schools and hospitals for the betterment of our country.
Looking at the welfare of Members of Parliament; a person who is not poor but is poor in the mind when they see people crying they will also go and cry even if they are crying over nothing – they will just cry. They will just join in because they will think that they will benefit from there. It is because of the poverty that is imbedded in people. Our poverty is being caused by us legislators because we do not know the law. There is no Labour Relations Act that sitting allowances should go and pay a debt. It is an allowance that we were given to cushion us.
If you look very closely, you might not be aware of it – many times you find that Members of Parliament are not able to take their suits to the dry cleaners especially during mid months. That issue should be looked into closely. Still on that, Hon. Members are now known on the high-ways because they are now using their cars to ferry people. Their cars are always overloaded because they want to make ends meet. I have a picture on my phone but it is unfortunate that I do not have it
now. I would have shown you an Hon. Member’s Ford Ranger that was overloaded. His mind is now full of poverty. Whenever he sees people, he wants to carry them.
The issue of Constituency Development Fund should be expedited so that our Members of Parliament should go into the rural areas and work for the country of Zimbabwe. When we are debating like this, there are some who are looking at you. Some are saying that what you are debating is bad. Some are saying it is good. Please do not look at me with that eye, you can have a chance to debate as well. I want to thank Hon. Members for being resilient on the challenges that you are facing. In our Shona culture we say that, chipoko chinomukira pachakafira. Saka chamukira muno muParliament ndomatakaurayiwa nenzara. So, there is need for improvement. I thank you – [HON.
MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Order Hon. Members.
*HON. CHIPATO: Thank you Madam Speaker for giving me the opportunity to make my contribution on this debate. Let me start by thanking the Minister of Finance for crafting such a Budget under difficult economic conditions. Some of the problems which we are facing in the country and may lead to problems are that we have projects we are undertaking in the country that are incomplete. Let us see them through for instance, in a construction project, we must see it through. I am giving an example of the police and the army. I sympathise a lot with the personnel because some of the monies that goes into the State coffers comes from the roadblocks and at times from the fines paid in courts.
I know there is a CID office in the country and I am pleading with you that this office that is under construction should be completed so that these members of the CID would work in a conducive environment. I understand that the amount that is needed for the completion of the building is $2 million and I am saying part of the fines that are collected by police at the roadblocks be used for the completion of that project because they will be working comfortably in offices which make them think properly.
Let me turn to the Army. We also need to have an Army that is well taken care of by the State. When we look at the accommodation for soldiers, there are times whereby the soldiers or police officers are renting a one-roomed cottage and that is where all his property is. How can such a person perform to his utmost when he is coming from such a background. Let us take care of the welfare of our military and police.
I will go on to my second point .....
*HON. SITHOLE: On a point of order Madam Speaker. According to Standing Order Number 106, it forbids us from tautology and rhetoric because what she is saying has already been debated by previous speakers. Please stop her from repeating.
*THE HON. DEPUTY SPEAKER: There is no point of order.
*HON. CHIPATO: Thank you Madam Speaker for protecting me because most of these Members were repeating what has been said by other Members. I was on my second point regarding the Budget. I am looking at the climate that we have and God blessed Zimbabwe with plenty of rains so that when we embark on our agricultural projects, we will develop and we know that our economy is agro-based. I am saying the Minister of Finance should give the GMB enough money so that farmers benefit from the sale of maize.
I talked about the projects, I visited some place in Kadoma and there is an office and noticed that at times we waste a lot of money that is budgeted for in this House to construct something. When we start projects, we do not complete them. I am pleading with Government to please put enough money, for example, the Offices of the Registrar General, it was initiated with a lot of money to launch the project but to date the offices are still incomplete.
I will now look at the roads, they help us in sourcing funds for the development of our economy.
*THE HON. DEPUTY SPEAKER: I think we should not
generalise. This is what you should have done in the initial stage of this Bill. What we want now are the ways and means of gathering funds so that the Minister knows where to get funds for financing the State
Budget.
*HON. CHIPATO: Yes, you cut me short when I was talking of the state of the roads in the country. The roads are responsible for driving the state of the country but these roads are in a poor state. When we look at the Beitbridge Road, it is one of the cash cows of the country because of all the road traffic such as lorries from South Africa to Malawi and Zambia use this road. We need to refurbish and rehabilitate them so that we get more money into our state coffers. We also have lots of fruits in the country and we can value-add these fruits. I remember we had Sandton which was in Mutare which used to manufacture beans, peanut butter and other food stuffs. We need to resuscitate these companies and Zimbabwe is known as a cattle country. At the moment, the Cold Storage is not functioning at all, as a result, cattle is being taken by people from other countries. These people are not creating jobs for the people of Zimbabwe.
I am appealing to the Minister, when crafting your Budget, please put more money for the resuscitation of the Cold Storage Commission and you would have done the nation a great service in the revenue collection. I thank you.
*HON. MUPFUMI: Thank you Madam Speaker. The Minister talked about increasing money so that we have so much in our coffers. Let us look at the currency that we are using as Zimbabweans. We are using the United States Dollar and it does not bring profit to any economy. I am calling for the adoption of the Rand because it may bring profit to us. When we look at the US$ and you are running a business, you have a profit of two cents. When you are getting profit of such small margin, how are you going to get the money to pay your managers and other workers? As long as we do not change our currency which we are circulating, we will not benefit much because we need to talk about the retention. The Minister of Finance and Economic Development has money which is coming from all those other people who are feeding into the Government coffers yet we realise that these companies which are supposed to bring money are retaining that money for their own use. And, when the Government is paying salaries, it also pays salaries for those organisations which are retaining the monies which they are collecting from the public. This should be done so that we have a Consolidated Revenue Fund and pay for all the services.
The Constitution says people should be protected including the vulnerable, the poor and the disabled and the businesses, but this is contrary to what is happening in Zimbabwe. People are now taking care of the Government instead of the Government taking care of them.
When somebody is staying in Zimbabwe, we notice that life in
Zimbabwe is very expensive. For instance, if you want to drive your car to any journey, you are given so many taxes which you have to pay. If you go to a roadblock, they ask about breakdown triangle, spare wheel, spanner and all those things which have nothing to do with the creation of wealth for the country. Some will even ask you about a fireextinguisher in your car and I am saying, Government should invest its money on the project of resuscitating companies. We know that many organisations closed down and I bet you, we will not be able to reopen these companies as long as we are using the US dollar. These countries which come into this country and pretend to be assisting us, when they have made enough money, they repatriate that money illegally.
When I was growing up, I used to think that maybe there was a problem with this country. I am saying, most of the companies which you are protecting in Zimbabwe are of no benefit, not only to the
Government, but to the people of Zimbabwe. I urge the Minister of Finance and Economic Development to please, look at supporting the mining companies and let me just take a good example of the diamonds which we have in Marange. We should be having enough money to take care of all the expenses of the State such as salaries. Unfortunately, some of these companies are illegally exporting the moneys which they get through their business transactions. Please, let us do our things in time and that can only happen if we have the Parliament of Zimbabwe which is quite independent, create laws and follow some of the ideas which I am putting across.
I know that if we continue sitting, we will soon have no quorum but the problem which happens is that, it is not that we are deliberately doing that to run away but MPs come to Parliament on Sunday and tomorrow will be Friday. They are supposed to be going back to their constituencies. Unfortunately, they do not get any allowances or coupons. Some female MPs here cannot drive, they either have a driver or drivers. What happens is, the female MP has a husband and the law says it is only the MP who should feed. The driver or the husbands are not supposed to feed. How can we create good ideas when we are not looking after the welfare of the legislator -HON. MEMBERS: Inaudible interjections]-
*THE HON. DEPUTY SPEAKER: Order, order Hon. Members.
Please when we are heckling, let us do it on time and give the Hon.
Member on the floor the time to make a contribution.
*HON. MUPFUMI: I am calling on the Minister of Finance and Economic Development to say please, let us look at the welfare of legislators. They should get remuneration and allowances which will entice them to sit in the House until we are through with the business of the day. But as of the moment, these MPs just come here to be marked as present and then they have to go and moonlight or carry out their businesses so that they have a decent life. I am pleading with the
Minister to say please, the welfare of the legislator is very important.
I will now look at the ordinary person. We are overtaxing the people of Zimbabwe. All these reporters we see are pained because of the high taxes which we are facing. I represent Mutare and when I travel from Harare to Mutare, I pass through about 24 police roadblocks on the way and at every roadblock I have to pay some money. I think this is too much and we cannot afford that. Let us look at the welfare of the civil servant, the police and pay them handsomely so that they do not indulge in corrupt activities. I thank you.
*THE HON. DEPUTY SPEAKER: Hon. Members, I plead with
you to stop debating. Let us call the Minister to come and respond.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): I want to thank all Hon.
Members who have contributed to this debate but I want to observe that it is a repeat of the debate on the Budget Statement. So, as I was listening, I could see speakers basically repeating what they said when they contributed and this is an issue that I think we need to be wary of next time around so that we do not waste time.
Madam Speaker, let me just make some general remarks. I think I need Hon. Members to understand me clearly. The reality of our situation is that out of every $100 revenue that I receive, 90% to 97% is going to wages. This means that I have $3 which I have to devote to service delivery and all the things that we are talking about here – roads, schools and clinics. That is the focus that we must give as this Parliament – to change that structure and we cannot change it by speaking in tongues.
When I say by speaking in tongues, it is that people come here and recognise what I have said but all the contributions are basically to say, spend more on that and on that and no appreciation that there is very little from which to spend on all those things. I think I know more about the state of the economy than anybody here because I have to superintendent over all the sectors. So, I know what the situation is in the health sector. The fact that in the health sector I am unable to find money to hire doctors and nurses, I know that. The fact that there are no drugs and equipment in hospitals, I know that. If you go to education, it is the same thing – there are no teachers or there is a shortage of teachers.
Infrastructure is in a dilapidated state and these are problems that have accumulated over many years. If we look at the railways, there was Hon. G.M. Ncube speaking about the railways. Some of our problems, especially with respect to the cost of doing business, are arising from the fact that the railways collapsed. They should be carrying all the heavy loads and leaving our roads only to light loads, then the damage will be less. As long as we have not resuscitated the railways, it does not matter in what we do by way of rehabilitation, they will soon be damaged because the loads are quite heavy.
I do not want us in future to spend much more time talking about the situation. I am more conversant about the situation right across the board. What I would want us to do Madam Speaker, is to dwell more on what we can do to recover our economy, earn more money and revenue. Those ideas are not available. That is my primary mandate, but I would want us to spend more time dwelling on issues to do with what we can do to create businesses which pay taxes.
Another point Madam Speaker is that there does not seem to be a link from the contributions between taxes and service delivery. You cannot have your cake and eat it. If you do not want to be taxed, please do not shout and expect better service delivery. The problem we are encountering is that because of the informalisation of our economy, a lot of our people are in the informal sector. They do not want to pay taxes. Even those who are in the informal sector, rikanzi business ratorwa nemunhu mutema, totoziva kuti harichabhadhara tax.
We do not have that culture to link taxes to service delivery. If we want better education, health, roads and everything, we need to have the culture of paying taxes. When we all come here, everybody want the conditions to go up, allowances and everything and you tell me not to tax this and that, and not to touch this and that. Yet, you want all these good things. We need to understand. We cannot have all the things we want and then protect sources of taxes from being taxed. There was a statement that we should not tax citizens. The citizens’ first obligation is to pay tax so that you can sustain your Government and Government is to sustain your service delivery in education, health, roads, etc.
So if you say citizens should not be taxed, who is going to be taxed? I cannot tax foreigners. I have to tax nationals and whoever has income and wherever I see is a source of income, I zero in to tax and raise the money. I think we need to understand that. Let me now respond to the contributions which were made by Hon. Members. I will just touch on those contributions which I believe were not a repetition.
Hon. Nduna who spoke yesterday urging integrating computerisation. I support him fully. This is an exercise that we have mandated the Ministry of Home Affairs to undertake so that the police, ZINARA, ZIMRA and CVR are integrated so that when you get to a police road block, that computer at the police road block should tell the policeman that in the past, you infringed and you did not pay the fine. It should tell that you have previous convictions of negligence. That is the direction that we are going. To do that, it is a process. I want to say to Hon. Nduna that it is an issue that we are looking at and it will also help to stop leakages in revenue collection. It will also go a long way to fight corruption because everything will be computerised.
Hon. Majome only stood up to make a point of order which she then said to me that she was mistaken, that I did not have power to change the levels of fines. Wherever money is being paid, it is paid into the Consolidated Revenue Fund and the Minister of Finance has a right to reduce or to increase. If you deny the Minister of Finance that power, then he has no basis to be the Minister of Finance. So I want to make that clear.
Hon. Maondera, you did not understand the schedule in the Criminal Code, we are only changing three levels. He rightly pointed out to us that we are changing $20 to $30 and so on. When we stand here, these are the people who are breaching the law. To the extent possible, you should be on my side, not on the side of those who are breaching the law. You are law makers and you put this law into effect. Now you come here and stand on the side of those who are breaching the law and you say no, do not touch them etc, and you are legislators. I want us to clearly understand. We need to support each other in this regard.
When I look at the state of our roads, we are looking at billions and not small money to get them repaired. We should be putting our heads together as to where we are going to get that money from. People talk about us being richly endowed, yes we are. Platinum, gold, diamonds and so on, but for as long as it is underground, it is of no value to the Minister of Finance. It needs to be taken out of the ground and to do that, you need money and whose money? This is where people think it can be a one day wonder. It is not. We engage in lengthy meetings with investors, some of them who do not even pursue it beyond first meetings.
Some drop out when you think you are near to clinching a deal. These are the realities. When people talk, they talk carelessly or confidently saying we have money and so on. You do not understand how many investors have come into my office saying they have billions of dollars. When I pursue it, they cannot put even US$1 000 on the table.
So, we need to be careful about these things.
Hon. Maondera, I thought on the health levy, it is a matter that I have been thinking very much about. I do not want the health levy to be eaten up by any bureaucracy. So, I am going to create a special account into which this money will go and the next issue is, Treasury will just disburse it to the Minister of Health for the purposes for which this levy is intended. No boards of directors, nothing of the sort and no cars at all. I treasure very much debate and talking about debate and I keep an open mind. It does not matter where good ideas are coming from; I always take them on board.
I think we should never degenerate into abuses. When you abuse other people, even some of the good ideas you mention, I close my ears and I thought that Hon. Mliswa got very much to the border of abuse. It is not good. I know he could have been brought up to abuse other people without any problem so far, but if he is to be taken seriously by me, I think he needs to confine himself to the realm of ideas.
The issue about Willowvale Motors - it is not just Willowvale
Motors, but AVM and Quest Motors. We have been working so far with Quest Motors and AVM to insist that the cars that they manufacture should be sold locally. In other words that we stop importation and that they should produce quality cars which match those which are imported and I think we are going quite far on that route. So far, we have started it with purchases of buses by schools. We have put a ban on importation of buses so that they are sourced locally in order to create local employment and we will extend that understanding to other sectors in the motor trade.
I also thought that I should make this point, Mr. Speaker Sir, I think we should never justify corruption on the basis that we are underfunded. Parliamentarians are the salt of the earth. If we justify corruption because we are not funded, who are we going to oversee and will we be taken seriously? So, the contribution by the Hon. Member and others basically to say, we can skip Parliament. We just come here, collect our coupons and go wherever and at the end of the day, the truth of the matter, Mr. Speaker Sir, if we follow them, they are not even going to do businesses.
So, I want us to remain on track. Yes, there is underfunding, but we understand why we are in that situation and we will work hard to improve those conditions. We should not carry very easy comparisons like comparisons which were made here with Ghana. Ghana has no level of education that we do here. We are supporting thousands of university students in this country, which is what Ghana is not doing. All the university students, we are supporting. So, we need not do comparisons which are not quite helpful. We have a situation, we have a problem. Let us work at it and not in a miraculous way because miracles do not happen. Step by step, we must work to get us out of the situation that we are finding ourselves in.
I have already started a process to deal with auditor’s reports. My handicap was that I did not have the staff to comb through the voluminous auditor’s reports. We had to negotiate with the Public Service Commission so that we create an establishment solely dedicated to reading auditor’s reports and responding to those reports and I believe we are almost getting there. You cannot respond to all those auditor’s reports unless there is some team dedicated to ploughing through all those reports and disseminating or rather discriminating what may not be quite true and what is true and correcting the mistakes which are pointed out in those reports.
He was of course not right, Mr. Speaker, unless one is expecting dramatic things. He says the economy is not improving. From where I stand I know where I stood in 2013, whether we are talking about the gold sector, whether we are talking about the tobacco sector, whether we are talking about any sector and I can show, when time permits, how we have moved. In terms of gold we have moved from 12,5 metric tonnes to 23 metric tonnes last December. That clearly is an improvement. We can talk about tobacco, how we have moved even under very difficult circumstances.
So, we need to acknowledge those steps. Let us not say all the negative things which basically kill the spirit of those who are trying to make things work. We must try to encourage each other basically, to turn around the fortunes of this economy and it can be done. You talk about chrome. It went down. It collapsed, because the price was so low. Now is the moment to get it back to production. We are talking about nickel. We have seen, although the prices were down, they made up for it in quantitative production and so was the case with platinum. All those are achievements we need to talk about.
We talk about agriculture. We have never spent, Mr. Speaker Sir, as much money on agriculture, that we have done this season. We have never done so in the past and God willing, with the rains which came, I hope things will never be the same again. More particularly, we have already stopped the importation of maize. The cotton crop - I had photographs which were shown to me from Chiredzi, Karoi, Guruve, Gokwe and Rushinga. The crop is looking good, notwithstanding the problems of lack of chemicals and fertilizer and so on. So, we need to build on the positive developments that are taking place and not to shower negative statements that basically discourage those who are attempting to do good work.
Hon. Zindi, I have replied you. I need to tax something. I hear you, but I need to tax something. Link taxes to the demands for more expenditure and ask yourself, where am I going to get the money. The response is, yes, we are rich and so on, but to get a response on the supply side takes ages and a lot of hard work. It is not a miracle and I want us to understand that. So, when we identify, because already we have identified the volumes of money that is transacted in all those areas and we think that if we restore this 15%, it will make a change for the better and in any case, we are targeting those items which are bought by rich people.
So, the mega deals with China – let me say something about the mega deals. They are all to do with infrastructure – Kariba South, Hwange 7 and 8 and some from independent power producers. The requirements of Chinese Financial institutions are that when they lend us money, the contractor must be Chinese and the equipment must be sourced from China. We then remain with a little which we can use to source local materials. When you look at the cost benefit analysis, we want power and the sooner we can start on those projects, the better and it is the only country where we can borrow from right now. So, we decided we take the loan, notwithstanding the restriction on where to source equipment and where to source the contractor. I must say, this is also the practice of most countries. They do not give you money to pay to companies from other countries.
With respect to some of the dualisation, we have to negotiate like what we have done with the dualisation from Beitbridge to Harare. We have negotiated a local content of not less than 40%. The FDI, which she mentioned, that is what Special Economic Zones (SEZ) are going to be all about. I do not want Bulawayo to be left behind in this regard. You should feel free to talk to any investor who may want to come to Bulawayo to resuscitate the industry there and you should also come to me with any investors. Ask them what incentives they want in order to operate there and I will certainly consider granting them. So, let us be helpful and collaborative in this matter.
There are obviously complaints over Chinese nationals who come to set up businesses in reserved sectors. It is a matter that the Hon.
Minister of Youth, Indigenisation and Economic Empowerment has to work on. The law and the reserved sectors are set clearly. What is problematic though is that there were already people in those sectors before we were strict on enforcement.
However, that can be sorted out easily. I agree with you though on reserved sectors for Zimbabwean but you can ask where were you when the Chinese were setting up a bakery in Mutare? Why did you not know that Mutare eats bread? The bakery equipment does not cost much, we are probably talking about US$5 000 and Hon. Minister Nyoni is spearheading that. Where were you? Do you want us as Government to tell you what to do? It must come from you, not from Government. We do not create entrepreneurs; it is not the responsibility of Government to create entrepreneurs. What these contributions basically mean is that we lack an entrepreneurial class in our country who show their own initiatives and take the first step. As said earlier on, to set up a bakery needs US$5 000 to US$10 000. You can also buy the machinery from China at a cheap price, may be US$2 000, but why are we not doing that? You want the Government to operate bakeries? No please, it is us who should do that Mr. Speaker Sir.
On user fees Mr. Speaker Sir, there are user fees which are collected at universities and other institutions. We all stand here to say medical treatment, drugs and everything must be for free even when we know that Government has no capacity to do all those things – [HON.
MEMBERS: Inaudible interjections.] –
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Hon. Members can you lower your voices.
HON. CHINAMASA: I heard someone saying education must
also be free. We should work out the equation, if we say it is for free, who is going to pay for it. Why do we not ask ourselves such simple and straight forward questions? If you are asking for free things, someone must pay and who is that? As a result of psyching our people that they must get everything free, there is no contribution. We tell school children that you do not pay, parents do not pay and as a result pupils go to school without text books, benches, desks or other items. We, therefore need to change our mindset and say, if we are saying free things someone must pay for it and please identify that person who can pay for all those free things, in education, health, railways and so on. We need to be very sensible about the contributions, there is nothing for nothing.
Hon. Malaba, I think I have already answered you. Bulawayo was the industrial hub of our country. I always narrate the story that when we were growing up, people did not recognise Salisbury as a town, all our people, with some who never came back, flocked to Bulawayo because it was the town. It was anchored on industry and the railway.
Now, we need to bring it back, but it will not happen through a miracle. We have to do it step by step. We have to identify investors and we find out what the investors want in terms of incentives in order for them to come back. So, be nice to them, do not shout at them, they bring you jobs, money and skills.
However, the issue that arises, especially from the railways and any other parastatal or whether we are talking about ZISCO; those companies closed a long time ago but the people remain employed and the unpaid salary bill continue escalating, even though they are playing tsoro. They have been playing tsoro for ten years now and yet it is still being accepted that they remain on the pay roll. When we say let us restructure, Hon. Members here stand up and say, do not retrench anyone. You mean that it is good business to remunerate someone who has not been working for 12 years, not one person, no production but remunerate them for playing tsoro. This is for the reason that we lack the courage to take decisions which are business-like. Any person who is running a business knows that if they are not making money, they close the business. Hon. Speaker Sir, I want us to understand that.
The stories about buying in South Africa and so on, especially about the wagons, from my understanding, the wagons came from China. I may be mistaken. There was an order which was placed in China a long time ago, of something else which is not even wagons, for which the goods were not delivered. We then re-negotiated so that we get it through wagons and not what was originally ordered.
All the projects that have been mentioned, Zambezi Water Project, it is a matter that we have been handling. It was disrupted because of the threat. We had already pumped US$35 million into Gwai-Shangani, and a tender was awarded and work was done. However, when there was a threat on the Tokwe-Mukorsi Dam, we diverted those resources to finish the Tokwe-Mukorsi. We are now going to be more focused on it so that it is finished. I have been to the site and some work was done.
The Cold Storage Commission Company is something that Hon. Minister Made is clearly looking into and we hope that we can come up with a resolution on this matter soon, so is the Lupane Gas. All this require an investor who brings money to exploit the gas, coal and all these issues.
Mr. Speaker Sir, a point was made about Group Five. What I think I need to Hon. Members to understand is that I think the sub-contractors ended up being Zimbabweans and one of the big sub-contractor was from Bulawayo for the Plumtree to Mutare Road. However, when we go out looking for money, it comes with conditionalities, which is why it is important to generate our resources so that we can take the decisions that we want. If they come with conditionalities, we have to choose whether to forgo the project or to take it. Invariably, we end up accepting the conditionalities so that the project can go on. As it is, the only road which is in a respectable condition is Mutare-Plumtree. Outside that, it is a disaster. If there are any investors who want to rehabilitate those roads and bring in their own money, bring them to us and we will talk.
Hon. Chamisa, again he means the point again that you cannot have your cake and eat it. If you are not taxing anybody, do not expect good things or service delivery. Do not expect to receive any salary because the salary comes from taxes. We need to understand that very clearly.
With respect to Foreign Direct Investment, we are doing whatever we can to create the necessary environment to make things happen. I am confident that things will start happening. He mentioned voter registration; I want to say that through the Vote of Credit and other initiatives that I am talking about, I am sure that I will be able to raise the necessary funding for the bio-metric voter registration which should take place this year. Infact, already I have had three or four meetings since last week to finalise this arrangement. In the 2018 budget, we will now put a vote on the cost of conducting the elections.
A lot of what Hon. Chamisa was saying is very populist. Pay everything, increase everything; Hon. Speaker, I also want to be a populist. I also want people to praise me for making promises but the difference between them and me is that if I make a promise, I must fulfill it and I do not want to make promises which I cannot fulfill. I tell the nation clearly what is and what is not in the coffers and what measures we need to take to move us out of that situation. That I will promise to do always but I would want to say to colleagues, please, I know the election season is near. Do not make promises to people. Our people are no longer as foolish as we think. They now distinguish people who tell lies and who tell the truth. Let us not hoodwink them by making stories that we know cannot happen.
Hon. Khupe, thank you very much for your contribution. Your address was more appropriate at a rally. I am aware that the Hon. Vice
President of MDC-T is very passionate on women’s issues but we have done our best to address women’s issues. The issues we are addressing are on health and I hope it raises the resources that I am looking forward to raise. It is basically to ameliorate the situation of women because they are the most affected when we come to health; whether it is mothers or individuals – all the cancers that we talk about affect more the women perhaps more than the men. I do not know what the scientific explanation is.
You are also aware that I have capitalised the Women’s Bank, the macro-finance bank in order to support micro businesses by women. The 2012 FinScope Survey showed that the informal sector was generating 5.7 million jobs and there were three million employers - the majority of them being women. We need to build on that, both women and youth. If we do, I am very anxious that we support the informal sector because it is from the informal sector that we will identify those companies which have potential to grow. We can then grow them into bigger companies where they can openly pay taxes. That is basically the direction that we are moving.
Hon. Mudarikwa, thank you very much for your contribution. I support everything that you said especially with respect to ease of doing business, especially with the need to resuscitate the diamond sector. Hon. Members will recall that in my 2014 Budget, I had projected 13 million carats of diamonds. As I stand, year to year, I have hardly got anything more than three million - when you know the structure of our diamonds from Chiadzwa are basically 10% gem. From 10-25% near gem, the rest 75% is industrial. Industrial, you are looking at something like US$8-10 per carat. If it is gem, you are looking at something maybe US$80 and above per carat. Anything with a near gem, we are talking about a range of US$10-50. We need to basically understand
that.
Hon. Chipato, thank you very much. Sometimes we should not mix and become hostile to taxes because of the many road blocks. I think there is sometimes confusion about that. Let us separate taxes from whatever complaints we may have about the many road blocks. I hope that this will be done.
Hon. Mupfumi, let me make it very clear on the currency issue and I will also take the opportunity of a bit of the road map. We are not going to adopt the rand for the reasons that we are not involved in the decision making of its value – whether it is depreciated or devalued or it appreciates, we have no say because we are not the South African
Government. In the same way that we got into trouble with the United
States dollar here, we have no say over its appreciation which is what puts us in the condition that we are in. As it appreciates like it has, we become the most expensive country and we are not competitive. We are not going that route.
The route that we are taking is already clearly chartered. I have said so on many occasions. We are working on the macro-economic fundamentals to get our economy back on its fit in terms of higher production, reducing the fiscal deficit, taking care of the current account deficit, increasing more exports when building reserves at least three months cover for our imports. When we are near there, then we can talk about introducing our own currency. I want to make this clear. We are not introducing our own currency now until those macro-economic fundamentals are fulfilled.
Mr. Speaker, I want to conclude by thanking all Hon. Members for their support and excellent contributions that they have made. It is now my pleasure to move that the Finance Bill [H.B.3, 2017] should now be read a second time.
Motion put and agreed to.
Bill read a second time.
Committee Stage: With leave, forthwith.
COMMITTEE STAGE
FINANCE BILL [H. B. 3, 2017]
House in Committee.
Clauses 1 to 36, put and agreed to.
House resumed.
Bill reported without amendment.
Third Reading: With leave, forthwith.
THIRD READING
FINANCE BILL (H.B. 3, 2017)
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): I move that the Finance
Bill (H.B. 3, 2017) be read the third time.
Motion put and agreed to.
Bill read the third time.
COMMITTEE OF SUPPLY
MAIN ESTIMATES OF EXPENDITURE
Second Order read: Committee of Supply: Main Estimates of Expenditure.
House in Committee.
Vote 1 – Office of the President and Cabinet – US$175 643 000 put and agreed to.
On Vote 2 – Parliament of Zimbabwe – US$30 713 000:
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Madam Chair, as promised
in my response, I am adding US$9 000 000.00 to the Vote and so, the amendment should reflect an addition of US$9 000 000.00. I have already said the Constituency Development Fund which is catered for elsewhere will be US$10 000 000.00, that is US$50 000.00 per constituency.
Amendment to Vote 2 put and agreed to.
Vote 2, as amended, put and agreed to.
Vote 3 – Ministry of Public Service, Labour and Social Welfare – US$193 789 000 put and agreed to.
Vote 4 – Defence – US$340 522 000 put and agreed to.
On Vote 5 – Finance and Economic Development – US$281 191 000:
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): There is an adjustment
where I am deducting from the Vote of the Ministry of Finance and Economic Development, US$74 817 000, which was in the Vote of Credit and which we are now deploying to other Votes as in response to the sentiments made by the Hon. Members.
Amendment to Vote 5 put and agreed to.
Vote 5, as amended, put and agreed to.
Vote 6 – Office of the Auditor General – US$3 262 000 put and agreed to.
Vote 7 – Industry and Commerce – US$18 547 000 put and agreed
to.
Vote 8 – Agriculture, Mechanisation and Irrigation Development – US$292 696 000 put and agreed to.
Vote 9 – Mines and Mining Development – US$5 395 000 put and
agreed to.
Vote 10 – Environment, Water and Climate – US$40 100 000 put and agreed to.
Vote 11 – Transport, Infrastructural Development – US$55 838 000 put and agreed to.
Vote 12 – Foreign Affairs – US$32 473 000 put and agreed to.
Vote 13 – Local Government, Public Works and National Housing
– US$49 707 000 put and agreed to.
Vote 14 – Health and Child Care – US$281 976 000 put and
agreed to.
Vote 15 – Primary and Secondary Education – US$803 771 000 put and agreed to.
On Vote 16 – Higher and Tertiary Education, Science and Technology Development – US$200 886 000:
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): I move the amendments in
my name to increase Vote 16 by US$65 817 000.
Amendment to Vote 16 put and agreed to.
Vote 16, as amended, put and agreed to.
On Vote 17 – Youth, Indigenisation and Economic Development –
US$17 192 000:
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I move the amendment in
my name to reduce that Vote by US$630 000.
Amendment to Vote 17 put and agreed to.
Vote 17, as amended, put and agreed to.
Vote 18 – Home Affairs – US$364 308 000 put and agreed to.
Vote 19 – Justice, Legal and Parliamentary Affairs – US$91 379 000 put and agreed to.
Vote 20 – Information, Media and Broadcasting Services – US$3 329 000 put and agreed to.
Vote 21 – Small and Medium Enterprises and Cooperative Development – US$6 131 000 put and agreed to.
Vote 22 – Energy and Power Development – US$6 288 000 put
and agreed to.
On Vote 23 – Women’s Affairs, Gender and Community
Development – US$8 324 000:
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): I move the amendment
standing in my name by increasing that Vote by US$110 000.
Amendment to Vote 23 put and agreed to.
Vote 23, as amended, put and agreed to.
Vote 24 – Tourism and Hospitality Industry – US$2 674 000 put and agreed to.
Vote 25 – Information Communication Technology, Postal and Courier Services – US$6 355 000 put and agreed to.
Vote 26 – Lands and Rural Resettlement – US$7 642 000 put and agreed to.
Vote 27 – Judicial Services Commission – US$14 099 000 put and
agreed to.
Vote 28 – Public Service Commission – US$18 744 000 put and agreed to.
Vote 29 – Sports and Recreation Commission– US$ 4 319 000 put and agreed to.
Vote 30 – Macro-Economic Planning and Investment Promotion – US$5 927 000 put and agreed to.
Vote 31 – Welfare Services for War Veterans, Former Political Detainees and Restrictees – US$ 22 080 000 put and agreed to.
Vote 32 – Rural Development, Promotion and Preservation of Culture and Heritage – US$15 751 000 put and agreed to.
Vote 33 – Council of Chiefs – US$3 130 000 put and agreed to.
Vote 34 – Zimbabwe Human Rights Commission - $1 951 000 put
and agreed to.
Vote 35 – National Peace and Reconciliation Commission - $1 149
000 put and agreed to.
Vote 36 – National Prosecuting Authority - $3 636 000 put and agreed to.
Vote 37 – Zimbabwe Anti-Corruption Commission - $2 180 000
put and agreed to.
Vote 38 – Zimbabwe Electoral Commission - $9 761 000 put and
agreed to.
Vote 39 – Zimbabwe Gender Commission - $1 105 000 put and
agreed to.
Vote 40 – Zimbabwe Land Commission - $1 546 000 put and
agreed to.
Vote 41 – Zimbabwe Media Commission - $670 000 put and
agreed to.
House resumed.
Main Estimates of Expenditure reported with amendments.
Report adopted.
Bill ordered to be brought in by the Minister of Finance and Economic Development in accordance with the Main Estimates of Expenditure adopted by the House.
FIRST READING
APPROPRIATION (2017) BILL
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA) presented the
Appropriation (2017) Bill.
Bill read the first time.
Bill referred to the Parliamentary Legal Committee.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I think we have done a good day’s work and we deserve our allowances. –
[HON. MEMBERS: Hear, hear]-
On the motion of the MINISTER OF FINANCE AND
ECONOMIC DEVELOPMENT (HON. CHINAMASA), the House adjourned at Fourteen Minutes past Six o’clock p.m. until Tuesday, 7th February, 2017.
PARLIAMENT OF ZIMBABWE
Thursday, 26th January, 2017
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. SPEAKER in the Chair)
ANNOUNCEMENTS BY THE HON. SPEAKER
SWEARING IN OF A NEW MEMBER
THE HON. SPEAKER: On 25th January, 2017, Parliament of
Zimbabwe received communication from the Zimbabwe Electoral
Commission (ZEC) on the election of the following member of ZANU
PF party as Member of the National Assembly with effect from 21st January, 2017 and this is Hon. Beauty Chabaya representing Bikita West Constituency.
Section 128(1) of the Constitution of Zimbabwe provides that before a Member of Parliament takes his or her seat in Parliament, the member must take the Oath of a Member of Parliament in the form set out in the 3rd Schedule. Section 128(2) states that the oath must be taken before the Clerk of Parliament.
I therefore call upon the Clerk of Parliament to administer the oath of a Member of Parliament to Hon. Beauty Chabaya. – [HON. Members:
Hear, hear.] -
NEW MEMBER SWORN
HON. BEAUTY CHABAYA subscribed to the Oath of Loyalty as required by the Law and took her seat – [HON. MEMBERS: Hear,
hear.] –
VISITORS IN THE SPEAKER’S GALLERY
THE HON. SPEAKER: I wish to recognise the presence in the
Speaker’s Gallery of pupils and teachers from Chiedza Primary School in Mashonaland West Province. You are most welcome – [HON.
MEMBERS: Hear, hear.] -
MOTION
LEAVE TO MOVE SUSPENSION OF STANDING ORDER NO. 124
(3)
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I seek
leave of the House to move that the provisions of Standing Order No. 124 (3), regarding the period allotted to debate on the motion to bring in one or more Finance Bills be suspended for the series of sittings in respect of the debate on the 2017 National Budget.
THE HON. SPEAKER: Hon. Minister, you were expected to
give your reasons for seeking leave.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Thank you Mr. Speaker
for reminding me that I should give reasons. Yesterday, a quorum was called and the House was unable to constitute a quorum. Therefore, in terms of the Rules, the Budget Debate was removed from the Order Paper. So, this motion is to restore it back onto the Order Paper.
Motion put and agreed to.
MOTION
SUSPENSION OF STANDING ORDER NUMBER 124 (3)
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I now
move that the provisions of Standing Order Number 124 (3) regarding the period allotted to debate on the motion to bring in one or more Finance Bills be suspended for the series of sittings in respect of the debate on the 2017 National Budget.
Motion put and agreed to.
MOTION
LEAVE TO MOVE RESTORATION OF THE MOTION ON THE
FINANCE BILL ON THE ORDER PAPER
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I now
seek leave of the House to move that the motion on leave to bring in a Finance Bill which was superseded by lack of quorum be restored on the
Order Paper as Order Number 2 in terms of Standing Order Number 73.
Motion put and agreed to.
MOTION
RESTORATION OF THE MOTION ON THE FINANCE BILL ON
THE ORDER PAPER
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Speaker, I
accordingly move that the motion on leave to bring in a Finance Bill which was superseded by lack of quorum be restored on the Order Paper as Order Number 2 in terms of Standing Order Number 73.
Motion put and agreed to.
CONSIDERATION STAGE
LAND COMMISSION BILL [H.B. 2A. 2016]
First Order read: Consideration: Land Commission Bill [H.B. 2A, 2016].
Amendments to Clauses 7, 14, 61 and 62 put and agreed to.
Bill, as amended, adopted.
Third Reading: With leave, forthwith.
THIRD READING
LAND COMMISSION BILL [H.B. 2A. 2016]
THE MINISTER OF LANDS AND RURAL
RESETTLEMENT (HON. DR. MOMBESHORA): Mr. Speaker Sir, I
now move that the Bill be read the third time.
Motion put and agreed to.
Bill read the third time.
MOTION
FINANCE BILL: BUDGET DEBATE
Second Order read: Adjourned debate on motion that leave
be granted to bring in a Finance Bill to make further provisions for the revenues and public funds of Zimbabwe and to make provisions for matters connected therewith or incidental thereto.
Question again proposed.
HON. HOLDER: 1.0 Introduction
The Parliamentary Portfolio Committee on Media, Information and
Broadcasting Services has an oversight role over the Ministry of
Information, Media and Broadcasting Services. The Ministry’s mandate is to build a good image of the country, promote public communication and information dissemination. The Ministry has six parastatals under its watch namely: Ziana, Transmedia, Zimbabwe Broadcasting Holdings,
Zimbabwe Film and Television School for Southern Africa, Broadcasting Authority of Zimbabwe and Kingstons.
1.1 The Ministry’s Key Result Areas
The Ministry’s key result areas are:
- Oversight of information, media and broadcasting services;
- Policy development for the information and communication
Sector;
- Development of information and media infrastructure and Information dissemination.
1.2 Major achievements during the 2016 fiscal year
During the 2016 fiscal year, the Ministry registered the following achievements:
- Embarked on the digitalisation project which is now 35% complete;
- Upgrading the ZBC studios (WIP);
- Five new local commercial radio stations now on board as of
September 2016;
- Produced 125 graduates in 2016 in film making and television production; and
- Trained 33 graduate engineers for the broadcasting industry
1.3 Policy Priorities 2017-2019
The Ministry has the following Policy Priorities for 2017-2019:
- Completion of the digitalisation project to achieve universal coverage for both radio and television;
- Creation of well-equipped content production centre for content generation;
- Develop new legal and institutional framework for the information and communication sector in line with the Constitution;
- Redressing the urban –rural information divide; and
- Development of information and media infrastructure and undertaking research on emerging technologies.
2.0 The National Budget
The Ministry of Media, Information and Broadcasting Services was allocated $3 329 000 and this represents a 0.08 % of the total National Budget. The allocation has been reduced by 8.32% compared to the 2016 Vote.
2.1Vote Allocations for the Ministry
Administration and General
Table 1: Distribution of the Sub Vote
1. Administration and General | 2016 | 2017 | %change |
Current Expenditure | |||
Employment costs | 1 177 000 | 1135000 | -3.57 |
Goods and Services | 612 000 | 603000 | -1.47 |
Maintenance | 143 000 | 117000 | -18.18 |
Current transfers | 1 369 000 | 1074000 | -21.54 |
Programmes | 100000 | 100000 | 0 |
Capital Expenditure | |||
Acquisition of fixed capital assets | 150000 | 150000 | 0 |
Capital transfers | 80 000 | 150 000 | 87.5 |
Total | 3 631 000 | 3 329 000 | -8.32 |
From Table 1, allocation on employment costs will decrease by 3.57% while current transfers will decrease by 21.54%. Capital transfers will increase by 87.5%, expenditure on goods and services will also decrease marginally by 1.47%, maintenance will decrease by 18.18% while there will be no changes on programmes and acquisition of fixed assets. Employment costs expenditure will consume 34.1% of the sub vote allocation. The overall sub-vote allocation declined by 8.32% and this significantly affects the operations of the Ministry and will make it difficult to achieve the set objectives for the fiscal year. Capital transfers were allocated as follows:
Broadcasting Authority of Zimbabwe $38 000
New Ziana $30 000
Transmedia $54 000
Zimbabwe Film Training School $28 000
Table 2: Economic Classification of the Ministry Vote
2016 | 2017 | %change | |
Current Expenditure | 2 032 000 | 1 955 000 | -3.79 |
Employment costs | 1 177 000 | 1 135 000 | -3.57 |
Goods and Services | 612 000 | 603 000 | -1.47 |
Maintenance | 143 000 | 117 000 | -18.18 |
Programmes | 100 000 | 100 000 | 0 |
Current Transfers | 1 369 000 | 1 074 000 | -21.54 |
Capital Expenditure | 230 000 | 300 000 | 23.33 |
Acquisition of fixed capital assets | 150 000 | 150 000 | 0 |
Capital transfers | 80 000 | 150 000 |
87.5 |
TOTAL | 3 631 000 | 3 329 000 | -8.32 |
Current expenditure for the Ministry was reduced by 3.79% and capital expenditures and capital transfers were increased by 23.33% and 87.5% respectively. The allocation for the acquisition of assets remained the same as for the previous year.
Zimbabwe Media Commission
Table 3: Allocations to the Zimbabwe Media Commission
2016 | 2017 | % change | |
Current Expenditure | |||
Employment costs | 231 000 | 200 000 | -13.41 |
Goods and Services | 62 700 | 325 000 | 418.34 |
Maintenance | 37 300 | 105 000 | 181.50 |
Capital Expenditure | |||
Acquisition of fixed assets | 20 000 | 40 000 | 100 |
Total | 351 000 | 670 000 | 90.88 |
From Table 3, there was a significant increase of 90.88% of the overall budget allocation where expenditure on goods and services increased by 418.34%. There was a decline of 13.41% on employment costs. The Commission had bid for about $400 000 so this is above what they had asked for.
Table 4: Economic Classification of the Vote for the Media
Commission
Item | 2016 | 2017 | % change |
Current
Expenditure |
331 000 | 630 000 | 90.33 |
Employment
costs |
231 000 | 200 000 | -13.41 |
Goods and Services | 62 700 | 325 000 | 418.34 |
Maintenance | 37 300 | 105 000 | 181.50 |
Capital
Expenditure |
20 000 | 40 000 | 100 |
Acquisition of fixed assets | 20 000 | 40 000 | 100 |
Total | 351 000 | 670 000 | 90.88 |
Table 4 shows that overall current expenditure increased by 90.33% and employment costs decreased by 13.41%. Expenditure on goods and services increased by 418.34%% while that on maintenance costs increased by181.5%. About 90.33% of the Media Commission budget allocation goes to recurrent expenditure and 29.85% goes towards employment costs. Capital expenditure is only 5.97% of the budget.
3.0: Observations by the Committee
The Committee made the following observations;
- The migration from analogue to digital broadcasting is still behind schedule as the country failed to meet the 17th June, 2015
International Communications Union (ITU) digitalisation deadline. The programme is only 35% complete and there is no specific allocation or timelines for the completion of this programme.
- The Zimbabwe Broadcasting Corporation has not yet appointed a substantive Chief Executive Officer and this has implications on decision making.
- New Ziana is not moving at pace with the changing technology and is therefore lagging behind in terms of news delivery.
- The Zimbabwe Media Commission is now a standalone entity but has not yet realigned its laws such as AIPPA with the new
Constitution.
- The Zimbabwe Film Training School is not operationally effective to train competitive media practitioners.
- Disbursement of allocated funds is either delayed or the funds are not disbursed at all.
- That the Committee does not have an input in the appointment of Commissioners in Commissions under their Ministry.
- That the Report by the Information, Media Panel of Inquiry (IMPI) has not yet been made public.
- That the funds released for the digitalization programme was used to pay the local contractors only and nothing has been done to pay off the foreign contractors who are now holding on to the equipment that is to be used for the programme.
4.0: Recommendations
In view of the above observations, the Committee therefore recommends that:
- Adequate funding should be made available so that the Ministry can completely migrate from analogue to digital transmission. The implementation of this programme is behind schedule and this does not only put the Ministry on the spotlight but the entire country by the end of the first quarter of 2017.
- The Zimbabwe Broadcasting Corporation should appoint a substantive Chief Executive Officer as a matter of urgency for timeous and progressive decisions to be made by the end of February 2017.
- Transmedia Corporation should retain some percentage of the revenue that it generates for self-financing so that it can capacitate
itself.
- The Zimbabwe Film Training School can consolidate its operations by partnering institutions of higher learning like the Midlands State University that offers media studies for effective training of media practitioners.
- Laws governing the operations of the Ministry should be aligned with the dictates of the new Constitution of Zimbabwe by the second quarter of 2017.
- The Report by IMPI should be made public by the end of March 2017.
- The Curriculum Vitae for the Commissioners be availed to the Committee for scrutiny and input by the Committee and the appointment of the Zimbabwe Media Commissioners should be done as a matter of urgency, preferably by the end of the second quarter of 2017.
- Funds allocated to the Ministry should be disbursed timeously so that the Ministry can effectively execute its mandate.
5.0 Conclusion
The Ministry of Information, Media and Broadcasting Services plays a critical role in the dissemination of information; promotion of public communication and image building for the country. For the Ministry to achieve these objectives there is need for adequate provision of funding from Treasury. The Committee noted with concern that the funding provided by Treasury is inadequate for the Ministry to achieve its set objectives for the fiscal year.
HON. MARIDADI: On a point of order. Mr. Speaker Sir, I realise that all Committees are going to be presenting reports. Each Committee would take up to 20 or 25 minutes to present a report and there are 19 Committees in this House. It is going to take us a lot of time, yet next week on Tuesday, this Budget must go through.
I was going to suggest that all those Committees Chairpersons could just give us an executive report for five minutes, then table the report. Those who are interested in seeing the report would be given it in the pigeon holes, so that we kill time. – [HON. MEMBERS: Hear, hear.] –
THE HON. SPEAKER: Order, order! It would appear there was
some consensus by acclamation. I think the most critical part of the report should be centered on recommendations. Thank you.
Having agreed to summarise, I am appealing to Hon. Members that we should not have lack of quorum. You cannot have the cake, and then eat it. So, I am appealing to Hon. Members so that we can complete the task and we are not disturbed by lack of quorum. Please stay on until all the reports are completed.
HON. NYAMUPINGA:
1.0 INTRODUCTION
Mr. Speaker, our Constitution is the foundation that cements the priority we place on gender equality and women’s empowerment in Zimbabwe. This is reinforced in blue prints that guide the development agenda of Zimbabwe, including the National Gender Policy (2013), the ZIM ASSET (2013), and now the Sustainable Development Goals (SDGs), amongst others. In line with the theme of the 2017 Budget of promoting productivity across all sectors of the economy it is critical that women and men play an equal and meaningful role as contributors to the economy in the various sectors aimed at driving economic growth and development. Unfortunately, as borne out by undisputed evidence, including the recent Interim Poverty Reduction Strategy Paper (IPRSP, 2016 - 2018), women still remain at the margins of the economy, and indeed are the poorest of the poor, with very limited or no means of production. The implication is that women can do little currently to contribute to economic growth and development, unless we invest in building their capacity to do so. May I remind the House, Mr. Speaker, that it is now an indisputable fact, through analysis undertaken by the United Nations and others, that there is a direct co-relationship between gender inequality and deficits in economic growth. On the other hand it has been shown that increasing the economic participation of women has a multiplier effect, on productivity, efficiency and sustained economic growth; we know that when women earn an income it is spent on their families, and communities, and they can also contribute significantly to the fiscus. In fact this is the reason the recently launched National
Financial Inclusion Strategy (2016) recognises women as a distinct category that requires specific support to become viable players in the finance sector. Mr. Speaker, for the reasons cited it is imperative that we budget for gender equality and women empowerment in a way that will have a positive impact on women’s lives and the nation at large. Mr. Speaker, as pointed out previously, gender budgeting is a policy priority and also falls within principles of public finance management in Chapter 17 of our Constitution. The Ministry of Finance and Economic Planning since 2007 has been issuing annual Budget Call Circulars that include an instruction to Government line ministries to mainstream and integrate gender issues into their budgets. The Ministry of Women Affairs, Gender and Community Development, with its cross cutting mandate to promote gender mainstreaming across all sectors is central in driving the economic recovery agenda, through coordinating strategies and actions that are core in promoting development and mobilising 52% of the population to play its role. Together with the recently established Zimbabwe Gender Commission, the Ministry is at the centre of ensuring women take the front line to push production frontiers and accelerate economic growth and development in the country.
2.0 BUDGET ALLOCATION FOR THE 2017 FISCAL YEAR
The Ministry’s key result areas focus on the achievement of women empowerment, gender mainstreaming and community development. The work of the Ministry is supported by 3 departments, and a decentralised structure including ward level officers. This is key in ensuring effective outreach work and mobilising women to be proactive in developing themselves, their communities and the nation. Unfortunately, Mr. Speaker, the work at ward level is constrained by limited staff and thus not all 1958 wards are currently being serviced.
Resources are required to address this gap. Further, Mr. Speaker, Your
Portfolio Committee on Women Affairs, Gender and Community
Development is alarmed at the trend of underfunding in the Ministry.
Allow me to elaborate with recent data. The budget of the
Ministry has remained under 1% of the total Budget for the past 5 years. In fact the allocations have fallen sharply between 2016 and 2017, with the 2017 allocation at a mere 0.19% of the total Budget, representing a decline of 37.82% from 2016. To compare this allocation with other Ministries, it is indeed one of the lowest; yet it is meant to support the implementation of a major cross cutting mandate.
Mr. Speaker, allow me to further point out that of the negligible funding that has been allocated to the Ministry, only about 50% of the allocated funding has been disbursed in any given year, further compromising the operations of the Ministry. No rationale is provided for not disbursing the funds in full, and very little is released on a monthly basis (approximately $30 000), when the Ministry requires at least $100 000 a month to function minimally. Mr. Speaker, the ratio of recurrent expenditure in relation to the development budget is 80:20 respectively in relation to the 2017 budget. It is not conceivable that the Ministry can be effective in its mandate to play the front and centre role to promote empowerment that contributes to economic growth and development; the key result areas will not be achieved with this level of funding.
Allow me, Mr. Speaker, to highlight specific empowerment
initiatives undertaken by the Ministry with the goal of promoting women’s contribution to economic growth and development. It is important to note the impact the Ministry is having even in the face of scarce resources. In 2016 the Ministry, through its capacity building and networking interventions in the key economic sectors of agriculture, mining, and trade, resulted in a cumulative total of 39 268 women being empowered. In 2017 the plan is to exponentially increase this number by at least 25%.
With regard to specific interventions let me highlight some key ones that require resourcing:-
3.0 WOMEN’S DEVELOPMENT FUND
Mr. Speaker, with the National Financial Inclusion Strategy
(2016) now in place, and its emphasis on women’s access to finance, it is more critical than ever that this unique financial vehicle established in 2010 is functional. This fund offers specially designed financial products for women and can potentially provide an excellent investment vehicle for strengthening women’s enterprise development. It is thus a concern that the $300 000 that had been allocated in 2016 was not disbursed. In 2017 the allocation has been reduced to $200 000 and remains inadequate. The Committee proposes that the funds that were not disbursed in 2016 be availed in order to promote ease of access by women to affordable finance.
It’s an important step in catalyzing women’s potential to boost productive activities and contribute to the growth of the economy.
4.0 WOMEN MICRO FINANCE BANK
Mr. Speaker, the establishment of the Women Microfinance
Bank remains a very important step towards facilitating women’s financial inclusion and a catalyst to increase productivity by women. This bank can provide leverage for the Ministry to make a meaningful contribution to the implementation of the National Financial Inclusion Strategy (2016). The uniqueness of this initiative also lies in the fact that the vision includes decentralised structures that will reach women in all corners of Zimbabwe, with women centered financial products that can boost their development. Since 2015 when the first allocation of $5 million was made to the Ministry in the budget, no disbursements, including in the last fiscal year, have been made.
Mr. Speaker, Hon Minister of Finance and Economic
Development, stated in his Budget Statement presented on 8 December,
2016 that the allocation for the Women’s Bank has been increased by
100% to $10 million. This is a commendable development. However,
this amount is not reflected in the Blue Book, and clarity is required on this matter. The funds must be released at the earliest opportunity for the
Women’s Bank to be launched and open its doors, as it is long overdue.
5.0 GENDER MAINSTREAMING
The Ministry’s work to mainstream gender in Government structures, processes and mechanisms, encompasses gender policy implementation, capacity strengthening of the public and private sector, awareness campaigns on gender issues particularly gender based violence (GBV), capacity building of the Anti Domestic Violence Council, ending child marriages, and mainstreaming gender in the realignment process. Mr.
Speaker, it is important to note that this dimension of the Ministry’s mandate is significant since it contributes to a good and effective gender management system without which gender mainstreaming is an ad hoc and ineffective process.
The Committee must also draw attention of the House to the fact that there is credible research that shows a direct relationship between GBV and costs that impact on the fiscus. In 2009 a study commissioned by Swedish Development Agency (SIDA) highlighted that the estimated aggregate cost of GBV in Zimbabwe was US$2 Billion (cost of services including legal, medical, transport and opportunity cost including absenteeism from school, productive activities). The area of gender mainstreaming must therefore be adequately financed, so that the plans that the Ministry has to contribute towards reduction of this scourge, including establishment of more one stop centres in respective districts, are realised.
Mr. Speaker, given the importance of the gender mainstreaming
dimension of the Ministry’s work, it is a serious concern that the 2017
Budget has been reduced by 85% from $100 000 in the 2016 Budget to $15 000. There is no room whatsoever to make an impact with such a negligible budget. Further, it is of paramount importance that all line ministries, in line with the Budget Call Circular requiring them to budget for gender related programmes and projects, provide concrete evidence of the resources they have allocated towards promoting gender equality and women empowerment in 2017. Line Ministries cannot shun their responsibility to mainstream gender. The gap created by failure to do so has a direct impact on the ability of the country to progress in achieving economic growth and development.
6.0 COMMUNITY DEVELOPMENT
Mr. Speaker, allow me to point out that investing in community
empowerment processes, particularly those that ensure women are skilled and have access to the means of production, should be a key national investment priority as it is “ low hanging fruit” with respect to pushing productive activities in the country. The Community development portfolio of the Ministry recorded very significant results in terms of empowering women and men in that there were 136 581 supported with value addition of agro products, bee keeping and honey production, community gardens, and internal savings and lending skills (ISAL). In 2017 the Ministry intends to increase the impact of its work by 30%.
7.0 ZIMBABWE COMMUNITY DEVELOPMENT FUND
Mr. Speaker, the Ministry administers a Community Development Fund in order to provide finance aimed at supporting economic empowerment initiatives that promote household food security, reduce poverty, and strengthen financial security including ways of sustaining this through savings skills. In 2016 the allocation to the Community Development Fund stood at a mere $200 000 and none of this amount was disbursed. In 2017 the budget has increased by 300% to $600 000, which is commendable. However, given the likely positive impact community development initiatives can have on both direct and indirect beneficiaries, the Ministry budget should increase to $3 000 000 and the full amount should be disbursed.
8.0 ZIMBABWE GENDER COMMISSION
Mr. Speaker, the Committee cannot overemphasise the importance of this statutory body for the advancement of gender equality and women empowerment in Zimbabwe. As you are aware the Commission has a far reaching mandate, which includes monitoring compliance by various bodies responsible for implementing gender equality and women empowerment commitments, investigating possible violations of human rights in relation to gender, conducting research into issues related to gender and social justice, and secure appropriate redress where human rights related to gender have been violated.
The Commission has three technical departments, namely Public
Education and Information, Research and Programming, Legal and Investigation, as well as Regional Coordinators in nine (9) provinces, with various supporting departments.
Mr. Speaker, it is worth noting that in 2016 the Commission, in
spite of its very limited resources, produced its strategic plan, a tool to guide the handling of complaints, capacity building of Commissioners, and secured the necessary space to resume operations. No funds were released from Treasury for these activities, which were supported by development partners. It is thus critical, Mr Speaker, that Treasury plays its part in ensuring the Commission becomes fully functional.
The Commission, has faced challenges in its operations, principally in relation to personnel as well as transportation to begin outreach work. The projected establishment for the Commission is 52, however, currently there are 4 officers, 3 of who are seconded from other Ministries and one funded by a development partner. The Commission requires a minimum of 20 staff, with the requisite qualifications to undertake the technical and other work in the institution. The Commission must also have the latitude to recruit from a wide range of sources, instead of being constrained to recruiting from retired civil servants. Currently the transportation for the Commission is confined to a donated vehicle and one from ZIMRA, whereas a minimum of six (6) vehicles are required for the
Commission to begin outreach activities.
Mr. Speaker, the Committee considers resourcing the
Commission a critical strategy for promoting the various development blue prints in the country, including supporting women’s contribution to economic growth. In this regard Treasury must be commended for increasing the Commission budget in 2017 by 347% from $100 000 to $1105, 000.00. However, it must be noted that the Commission had budgeted $1300 000.00 for operations as opposed to $670 000 allocated (50%). The budget is inadequate to finance the planned 2017 activities that include public education and awareness, investigating possible violations of human rights related to gender, research, monitoring compliance with gender equality commitments, and institutional strengthening.
9.0 RECOMMENDATIONS
The Minister should increase the budget allocation to the
Ministry to a minimum of 2.5% of the total budget, or retain the 2016 budget cap. In the absence of these increases, all the funds allocated in the 2017 budget to the Ministry must be disbursed by the end of the first quarter.
The Ministry of Finance should ensure that all line
Ministries reflect gender mainstreaming in their budgets, through gender specific budget lines that are adequately funded. In this regard it is imperative that the Ministry of Finance reject any line Ministry budget that does not comply with the policy requirements.
The Gender Commission must be allocated $1 300 000.00 for operations, and, at a minimum, there must be Treasury concurrence for the recruitment of the urgently required 20 members of staff with the requisite qualifications and experience, and funds to be availed for the 6 vehicles required for operations support.
The Gender Mainstreaming & Community Development
budget allocations in particular must significantly increase as they are drivers of women empowerment initiatives that can significantly impact the economic recovery agenda, and economic growth.
Funds allocated to the Women’s Bank and the Women
Development Fund must be released in the first quarter of 2017 to enable both institutions to be fully functional to promote women’s financial inclusion.
10.0 CONCLUSION
In conclusion Mr. Speaker, it is clear that there is no gender equity in the manner in which the 2017 Budget was formulated. Ministries that have the mandate to address gender equality and women empowerment issues have some of the lowest budgets. The Ministry of Women Affairs,
Gender and Community Development, and the Ministry of Small and
Medium Enterprises and Cooperative Development are a case in point. Further, disbursements of funds allocated must be released in the first quarter for smooth operations. Finally, the responsibility to budget from a gender perspective does not lie with the Gender Ministry alone; it is high time serious measures are taken to call to account Ministries that are not complying with this requirement. I thank you.
*HON. CHINOTIMBA: Mr. Speaker Sir, on a point of order. I would like to inform this House that I asked a very serious question yesterday and the question has been acted upon by the Reserve Bank
Governor, Dr. Mangudya. I am happy that the Governor of the Reserve Bank has acted promptly on the request which was put in this House yesterday. A swift reaction has been taken. That is welcome and we are very grateful for such a stance. If such action is taken, there will be no corruption and laziness in the country. I thank you.
HON. PARADZA: Mr. Speaker Sir, Hon. Members of
Parliament, it is my pleasure and privilege to present to you the post budget analysis report for the fiscal year 2017 for the Ministry of Foreign Affairs Vote 12.
Before I present our report, as a preamble, I feel compelled to narrate some incidences which help sum up the current state of the Ministry.
The first incident involved our Ambassador in Paris whose official car could not start when she had visited the Namibian Ambassador and was forced, under humiliating circumstances, to use the Namibian
Ambassador’s car. This is because the car she is using has already outlived its life span.
Another embarrassing story involves one of our top diplomats who was being driven in an official car with the national flag and was stopped by the police and asked to identify himself as the car he was driving was not fit to be a diplomatic car.
In yet another embarrassing episode, this one involves our ambassador who is currently the Dean of the Diplomatic Corps in West Africa. Courtesy requires that as Dean, when they have official meetings and gatherings, our diplomat is supposed to leave the event first but because of the dilapidated car, a Peugeot 504, which has seen better days, our diplomat, in most cases, is the last one to leave the venue as a way of avoiding embarrassment.
Mr. Speaker, these are just a few real incidences which our Ambassadors are subjected to daily during the course of their work in these foreign capitals.
The other issue, Mr. Speaker, I wish to highlight is to do with rental arrears at our Diplomatic Missions.
According to the Permanent Secretary, Ambassador Joey Bimha, the Ministry is in a quandary because all missions, without exception, have received eviction notices. As we speak, the Ministry has an outstanding rental bill of $7 million, a carry over from 2016. Besides eviction notices, some of our diplomats have also been sued for their failure to pay rentals.
These are some of the harrowing stories that as a Committee, policy makers and above all as Zimbabweans, we find profoundly dispiriting and disenchanting. We think we can do better than this as a nation. Our image is at stake and we should do all that it takes to spruce up our image by allocating resources to this strategic Ministry which is the face of the country.
1. INTRODUCTION
Mr. Speaker, your Committee in consultation with the officials from the Ministry of Foreign Affairs has since undertaken a comprehensive analysis and assessed the provisions for the Ministry contained in Budget 2017 Vote 12. The findings are presented in this report. This analysis asks key questions about the budget that we believe should be of interest to both Parliament and the public.
Our analysis is mainly based on two documents available to the public as of the time of the analysis: Budget Estimates for the Year Ending December 31, 2017 and the 2017 National Budget Statement as presented to Parliament by the Honourable Minister of Finance, P.
Chinamasa
2. PURPOSE
The overall purpose being to analyse and provide disaggregated information on the 2017 budget allocation for the Ministry of Foreign Affairs. In addition to this, the report aims to provide the Zimbabwean public with a synthesis of the main features of the budget allocation to the Ministry making comparisons with allocations in previous years and assessing the impact of the allocation on the Ministry and ultimately on our men and women who represent our interests around the globe. We then conclude by proposing some recommendations to both Government and the Ministry.
3. THE MINISTRY OF FOREIGN AFFAIRS
Mr. Speaker, Zimbabwe cannot bend the world to its will, therefore, a paradigm shift towards international focus is both necessary and useful.
Through international focus, we can exploit the vast opportunities the changing world offers for advancing our prosperity and well-being and for meeting the challenges that we face today. It is the responsibility of our Government through the Ministry of Foreign Affairs to create global conditions that favour Zimbabwean interests, promote and safeguard the reputation and influence of the Republic in the region and within the international community and to protect nationals living and working in foreign lands. Its focus is mainly outside the state where it operates in a complex and changing international environment liable to sudden transformation by unexpected events constantly shaped by factors beyond national Government control.
3.1 Major Achievements During 2016
It is indisputable that 2016 was a difficult year for Zimbabwe. Despite these challenges, fiscal year 2016 has been a year of many notable achievements for this Ministry in its on-going work to establish a stronger and more productive presence for Zimbabwe and Zimbabweans at large.
Major results during 2016:
- Active involvement in the SADC mediation in Lesotho.
- Participated at the SADC Council of Ministers held in March 2016 in Gaborone, Botswana where the Ministry successfully lobbied for the endorsement of the candidature of Dr Walter Mzembi for the post of Secretary General of the United Nations World Tourism Organisation (UNWTO).
- Participated in several meetings of the SADC ministerial task force charged with finalisation of the Costed Action Plan for the SADC
Industrialisation Strategy and Road Map.
- Participated in the exercise to finalise the budget for the SADC Revised Regional Indicative Strategic Development Plan (RISDP)
2015-2020.
- Played an active role in shaping the work on the review of the SADC Secretariat Organisational Structure which is being done to align the organisation to the new priorities contained in the Revised RISDP and the SADC Industrialisation Strategy and Road Map.
- Facilitated the sending of an observer team to be part of the SADC Electoral Observer Mission to the Republic of Zambia in July 2016.
- Coordinated Zimbabwe’s participation in the 19th COMESA Summit of Heads of State and Government held in October 2016 in Madagascar.
- Led a team of officials from various ministries to develop the
Regional Integration Strategy Framework for Zimbabwe (RISF).
- Successfully handed over the AU Chairmanship during the 26th session of the Assembly held on 30-31 January 2016 in Addis Ababa, Ethiopia.
- Played a part when the Government of Zimbabwe successfully launched the 2016-2017 Drought Disaster Domestic and
International Appeal for Assistance.
- Played a key role in the Government constituted grain importation and distribution task force which was responsible for the importation, transportation and distribution of drought relief.
- Hosted the Zimbabwe-Russia Inter Government Commission in
April 2016.
- Hosted the inaugural Zimbabwe-South Africa Bi-National
Commission in November 2016.
- Participated at key international meetings notably:
- UN signing ceremony for the Paris Climate Change
Agreement in New York in April 2016.
- Meeting of the African Caribbean and Pacific countries in
Papua New Guinea in May 2016.
- Forum on China-Africa Cooperation (FOCAC) in July 2016.
- 6th Tokyo International Conference on African Development
(TICAD) in August 2016.
- 17th Non Aligned Summit of Heads of State and Government in Venezuela in September 2016. vi. United Nations General Assembly and its associate meetings from September to December 2016.
- Took over the 72nd Presidency of the United Nations Economic and Social Council (ECOSOC).
- Coordinated the repatriation of 151 Zimbabwean Nationals trafficked to work as maids in Kuwait and Saudi Arabia.
3.2 National Polices, goals, priorities and outcomes for 2017 in the
Ministry
The policy priorities for the Ministry in 2017 in many ways represent continuity of the policies in 2016. The following are the priority areas:
- Continued re-engagement with the West and other groups of countries.
- Enhancing the style and depth of diplomatic interactions with a view to promoting economic diplomacy.
- Intensifying diplomatic engagements with multilateral agencies, institutions and international organisations.
- Capacity building (through training) to enhance the quality and efficiency of the Ministry’s staff both at head office and diplomatic missions abroad, the focus now being economic diplomacy as opposed to the usual political diplomacy.
- Resourcing head office and diplomatic missions to ensure delivery of excellent services.
The crux of these priorities is to enhance and improve economic, political, technical and scientific relations with the outside world for improved cooperation and to improve the perception of Zimbabwe which will help increase FDI and trade inflows which inevitably will help in the realisation of this year’s National Budget theme whose thrust is“Pushing Production Frontiers across all Sectors of the Economy”.
3.4 Challenges facing the Ministry of Foreign Affairs.
The Ministry is facing a number of formidable challenges and the following are some of them:
- Globalisation, including technological advancement, present both opportunities and threats for Zimbabwe. As part of a global village
Zimbabwe can benefit from the global economic opportunities. However, the nation needs to be conscious that it is equally susceptible to the global dynamics like international business trends and competition. Therefore, as a country, we need to think outside the box.
- The Ministry lacks trade and investment experts in its diplomatic missions which makes it hard for the missions to be used to promote FDI and trade. The world has since moved in this direction and as a country, we are way behind. As I said earlier, we need a paradigm shift within the Ministry, complete change of the mindset, so that our diplomats focus on attracting investments to
Zimbabwe and also marketing Zimbabwe as a tourist destination.
- As exposed by the analysis below, the Ministry has been underfunded for a number of years now and this has had an incrementally detrimental effect to the operations and infrastructure of the Ministry.
- Furthermore, the Ministry operates in a global environment where:
- Many developments are beyond its direct control and can have a significant impact on its operations and budget. ii. The running of Diplomatic Missions is done on a contractual basis as the operations are in foreign lands. To this end, the Ministry has to abide by the laws of the host countries and obligations have to be met on time.
Given that the Ministry is the face of Zimbabwe and the challenges and international responsibilities, which are presumably unique to the Ministry of Foreign Affairs, it is fit and proper that the Ministry is adequately funded to avoid irreparable reputational damage on the country.
- What are the opportunities available to Zimbabwe through the
Ministry
- Zimbabwe’s unique range of membership in a wide number of multilateral organisations provides the ideal opportunity to advance our interests and values across a number of issues on the international community.
- Economic Diplomacy in tandem with other reforms could help unlock FDI flows into Zimbabwe and promote trade.
- The country could use the Ministry to fully harness and exploit the potential benefits of having an effective diaspora policy.
- COMPREHENSIVE ANALYSIS OF THE 2016 BUDGET
ALLOCATION
In this section, we examine the allocations of the budget for 2017 compared with budget allocations in previous years. Except where stated, figures in this section refer to planned budget/allocations rather than actual spending.
5.1 Overview of the Ministry Budget
In the fiscal year 2017, a total of $32, 4 million has been allocated to the Ministry of Foreign Affairs under Vote 12, which represents about 0.8% of the total National Budget. Figure 1 below shows the 2017 budget allocation to the Ministry as a percentage of the total National Budget.
This provision is well below the optimistic financing scenario of $74, 4 million as outlined in the budget request by the Ministry. This represents about 43.6% of the amount requested for by the Ministry. Compared to 2016, the Ministry by and large has received the same allocation in percentage terms, i.e. 0.8% of the National Budget. However, in absolute terms, the allocation this year represents a reduction of $4,5 million as compared to the allocation of $36,9 million under the 2016 National Budget, reflecting a drop of 12.22%.
The Committee is extremely disheartened and dissatisfied by this reduction as the allocation for 2016 was by no means adequate. Given the state of affairs in the Ministry, the allocation is not enough to cover critical funding areas. This reduction will further damage the operations of the Ministry.
The Ministry is split between Head Office and Diplomatic Missions.
The 2017 allocations are as follows:
- Sub Vote I $8 405 000 has been targeted at Administration and
General representing 25.8% of the total budget (Head Office)
- Sub Vote II $24 068 000 has been targeted at Diplomatic Missions which is 74.2% of the total budget.
Of these two sub vote II, the Diplomatic Missions are facing the biggest cut backs.
Compared to the 2016’s vote allocation of $29,6 million, the diplomatic missions in 2017 received $24 million which is a reduction of $5,6 million (18.9%). This is being done at a time when our diplomatic missions are in dire need of funding. The Committee is deeply disillusioned by this reduction as it will inevitably affect further the operations of our Diplomatic Missions and also the envisaged new focus – that of promoting economic diplomacy.
Table 1 below lays bare the inadequacy of the 2017 National Budget provisions, as it highlights the major, contractual non-salary and unavoidable operational expenditure items for diplomatic missions.
ITEM | AMOUNT |
Diplomatic Missions Annual Rentals | $13 200 000 |
Diplomatic Missions Medical subscriptions | $ 1 500 000 |
Subscriptions to International
Organisations |
$ 4 035 000 |
Head Office Rentals –UNDP Offices | $ 97 000 |
TOTAL | $18 832 000.00 |
The total figure for the inevitable contractual items exposes the inadequacy of the budget provisions as the total operations budget allocation of $14, 9 million will be totally wiped out by the diplomatic missions annual rentals of $13, 2million leaving $5, 6 million unfunded. This situation is worsened by the fact that there are rental arrears of $7 million from 2016.
As a Committee, we are acutely aware of the fact that since 2013 the national economy has been facing headwinds and as a result, it has not grown as we would all want. As a matter of fact, it has been static and consequently the National Budget has been static as well, stuck around $4billion. That said, we note with deep concern that the allocation to the Ministry of Foreign Affairs has had a steep downward trend which started unabated in fiscal year 2015. In the light of the very significant role that the Ministry will have to play in the re-engagement efforts and helping attracting FDI into the country, the cuts and failure to award more resources to the Ministry is very discouraging as it defeats this thrust.
5.2 Trends in Foreign Affairs Allocations
Mr. Speaker Sir, your Committee also notes with regret that budget allocations for the Ministry as a percentage of the National Budget has progressively decreased in the past 4 years when Hon. Minister Chinamasa was appointed to head Treasury. In keeping with this trend, the 2017 Budget continues a longer term trend evident of allocating progressively less of public national resources to Foreign Affairs Ministry. Table 2 below clearly backs my claim.
Table 2: Foreign Affairs Budget as a Share of National Budget for financial years 2010-2016.
Fiscal Year | Total National Budget | Ministry Budget
Total Allocation |
Share of National
Budget % |
2010 | $2 250 000 000 | $42 427 000 | 1.89% |
2011 | $2 746 000 000 | $77 060 000 | 2.8% |
2012 | $4 000 000 000 | $73 672 000 | 1.84% |
2013 | $5 245 000 000 | $63 204 000 | 1.2% |
2014 | $4 120 000 000 | $63 884 000 | 1.5% |
2015 | $5 439 348 431 | $48 126 000 | 0.88% |
2016 | $4 645 417 000 | $36 995 000 | 0.8% |
2017 | $4 100 000 000 | $32 473 000 | 0.79% |
The table explicitly shows that over the past eight years (post dollarization), the best the Ministry got in budget allocation as a percentage of the National Budget was 2.8% in 2011 and the lowest being in the last 3 years was about 0.8%. The share by any standard is grossly low as the Ministry is a key department of this administration and going forward will play an important role in the economic development of the country through helping in attracting FDI and international trade facilitation for local companies.
The Committee finds this disappointing and disheartening as the
Ministry needs to be well funded to deliver on its all-important mandate. A share of between 2% and 3% of the National Budget would be reasonable.
5.3 Ministry allocation dropping faster than the National Budget
In the last 4 years, in real terms the National Budget has by and large remained unchanged yet the Ministry’s allocation as a percentage of the National Budget has gone down significantly. This suggests that the Government of Zimbabwe has not maintained the priority given to the Ministry of Foreign Affairs in the face of limited public resources and competing interests.
5.4 Employment costs
Employment costs are statutory and have to be adequately funded. The allocation for employment costs for the Head Office of $1,5 million is adequate. The Committee notes that the bulk of the Ministry’s budget goes towards employment costs and this has been the trend for a number of years now. The employment costs for Administration and General (Head Office) plus Employment costs for Diplomatic Missions consume about $17, 5 million which constitutes 53.96% of the total Ministry’s budget.
By international standards this proportion is quite high as it should be around 30%. This means that the Ministry effectively becomes hamstrung with no room to develop, grow and better its services as most of its budget is for consumption purposes.
5.5 Current Expenditure and Capital Expenditure
The Committee notes with disappointment that over the last 8 years on average, current expenditure consumes about 92% of the total budget allocation to the Ministry. In 2017, a total of $29, 9 million was allocated for current expenditure which represents 92.15% of the budget. On the other hand, capital expenditure was allocated a total of $2, 5 million which is 7.85% of the budget, with the Administration getting $100 000 and the diplomatic Mission getting $2, 4 million. Compared to last year, the increase of $420 000 is welcome but it is still below the optimum requirements of the Ministry. The Committee is extremely disappointed by the lack of provision for adequate funding for development. Ostensibly, this means there is little in the form of resources that could be used for the development of the infrastructure and other development related activities which would help improve service delivery and the image of the country.
Table 3 below expressly shows underfunding of capital expenditure over the last 8years.
Table 3: Allocation for Current Expenditure and Capital Expenditure for the Ministry Budget(2010-2016).
Fiscal
Year |
Total
Budget
|
Current
Expenditure |
Capital
Expenditure
|
Share %
Current Capital Expenditure Expenditure |
2010 | $42427000 | $37 467 000 | $4 960 000 | 88.31% 11.69% |
2011 | $77 060 000 | $72 710 000 | $4 350 000 | 94.36% 5.64% |
2012 | $73 672 000 | $66 282 000 | $7 390 000 | 90% 10.00% |
2013 | $63 204 000 | $58 874 000 | $4 330 000 | 93.15% 6.85% |
2014 | $63 884 000 | $59 454 000 | $4 430 000 | 93.07% 6.93% |
2015 | $48 126 000 | $46 196 000 | $1 930 000 | 95.99% 4.01% |
2016 | $36 995 000 | $34 865 000 | $2 130 000 | 94.24% 5.76% |
2017 | $32 473 000 | $29 923 000 | $2 550 000 | 92.15% 7.85% |
Table 3 above and figure 2 below show that the bulk of the budget for the Ministry goes to recurrent expenditure. This is simply unsustainable as there is little if any allocation for development.
Figure 2. below is a graphic presentation of the share of Recurrent and Development Expenditure in the Ministry of Foreign Affairs 2010-2017.
From the table and the graph, it is clear that for the past 5 years, capital expenditure has been side-lined with profound impact on the Ministry.
5.6 Goods and Services
Given that the lion’s share of the budget of the Ministry goes towards employment costs, it is no surprise that a paltry $7, 6 million has been allocated towards Goods and Services with the bulk of it ($5
053 000) for the Diplomatic Missions and ($2 611 400) for
Administration and general. Based on the actual requirements, Diplomatic missions on their own require $24,7 million. For instance, the total annual rentals abroad stand at$13, 2 million. The allocated amount of $3 million will just cover a mere 3months of rentals. It is against this background that all the missions without exception have received eviction notices as we have outstanding arrears of $7 million. It then goes without saying that the allocation to the Ministry is patently insufficient. As I mentioned earlier Mr. Speaker, in addition to several threats of evictions, some of our embassies have been sued, thereby exposing our Ambassadors as this nullifies their diplomatic immunity status within the host country.
5.7 Maintenance
The Committee also finds that the Ministry was allocated $570 000 for maintenance for foreign missions while $130 000 is for the head office here in Harare. Compared to 2016 where the Ministry was allocated $999 000 this represents a decrease of $299 000. Again, the Committee is saddened and discontented with this as the provision is way below Ministry’s requirements of $510 000 for the head office and $3, 4 million for the Diplomatic missions. The Ministry’s movable and immovable assets at head office and at missions have suffered years of neglect due to inadequate funding. As noted in my preamble, the vehicle fleet at most missions is old and needs urgent replacement. The Committee notes that the allocation does not address the needs of the Ministry.
5.8 Current Transfers
This allocation is earmarked for mandatory contributions to regional and international organisations. Zimbabwe’s unique range of membership in a wide number of multilateral organisations provides the opportunity to advance Zimbabwean interest and values and it is absolutely imperative that membership subscriptions are paid up.
An allocation of $4 million towards this represents an increase of
$235 000 that is 6.1% from the 2016 allocation of $3,8 million. The Committee acknowledges and welcomes the increase as it will help cater for increased subscriptions for 2017 but this is by no means adequate. For instance, the Ministry has just received 2017 AU assessment of $2 million, which is $500 000 (32.7%) more than 2016 contributions of $1, 5 million.
6. COMMITTEE RECOMMENDATIONS
7.1 Committee Recommendations to the Executive.
Government should:
- Increase the budget provisions to the Ministry as it is a strategic department. As a Committee, we explored the unenviable option of closing some of our embassies but we came to the correct realisation that it would cost the country more in the short term and long run as there is need to normalise the situation at the embassies by clearing arrears and be able to transfer or re-assign personnel, most of whom have overstayed their mandate. In addition to this, we realised that at a time when Zimbabwe needs the Diaspora more than ever, we should not give in to easy options which would
be detrimental to the needs of the country. Countries like Kenya which are of similar international profile and ambition are actually broadening their geographic footprint.
- Instead of shutting down some of these missions, Government should help them to downsize their offices around the world and ask our embassies to cut down in spending in a surgical manner rather than with a wholesale approach. Zimbabwe needs representation globally and should be able to serve its citizens wherever they are, without asking them to make a trip to another country or fly for hours for a simple service. This is a chance for the country to carry out a total reform of Zimbabwe’s Diplomatic offices around the world and we should seize it.
For example, these could be in the form of satellite offices that could serve Zimbabweans abroad.
- Give the Ministry the right to offer visa services and for passport renewal where the embassies can charge commission which they will keep. Zimbabweans in the diaspora would prefer to pay a relatively higher fee for their passport renewal, or other services than flying back home just to renew a passport.
- Do all it can to attract Foreign Direct Investment (FDI) by enacting policies that are investor friendly and improving the ease of doing business in the country. The theme for this fiscal year’s budget is“Pushing Production Frontiers across all Sectors of the Economy”. This inevitably requires international capital. Foreign investment will help Zimbabwe achieve this and realise its economic potential by providing capital to finance the industries and enhance existing industries, boosting infrastructure, productivity, and employment opportunities in the process. This will result in higher growth supported by foreign investment which will pay dividends for Zimbabweans by increasing tax revenues thereby increasing the funds available to spend on hospitals, schools, roads and other essential services.
- By extension, the Government should invest in economic diplomacy and equip our embassies and consulates for them to be able to promote Zimbabwe’s economic interests.
- Considering that we operate in a dynamic world characterised by shifting interests that often lead to both political and economic realignments, the Government should, therefore, continue to reorient our foreign policy and trade interests and inject enough resources towards this thrust.
- Allow the Ministry to employ trade and investment experts and deploy these at our foreign missions so that economic diplomacy can be fostered for the betterment of the country.
- To achieve the above, the Government should redefine its foreign policy in order to establish the country’s global trade priorities and pursue a robust, reciprocal bilateral and multilateral trade, taxation and investment relations through regional and international trade agreements.
- In light of the above, the Ministry’s mandate should be expanded to include international trade as the two are interconnected. This will allow the Ministry to better handle matters of international trade, unlike the current situation where the mandate is with another Ministry.
- Government should promote Harare as a hub for economic and multilateral diplomacy.
- Establish a semi-autonomous Government Foreign Service academy and a centre of excellence offering cutting edge training to diplomats in the country and the region.
- Create and implement the Zimbabwe diaspora policy and establish a national diaspora council of Zimbabwe to facilitate effective engagement with Zimbabweans in the diaspora.
- Last but not least, the Committee implores the Government, to do all that it takes to make sure that the economy starts to grow again. It is imperative to grow the economy by enacting pro-business policies improving the how to do business environment and dealing with the concerns of investors so that Foreign Direct Investment inflows increase.
- As the economy grows, the revenue base will grow and the National Budget will grow and Ministries will get bigger allocations, and this will translate into a virtuous circle.
6.2 Committee Recommendations to the Ministry The Ministry should:
- Move offices to smaller and less expensive locations as a costcutting measure.
- Remove or downgrade ambassadors where they are not necessary.
While high ranking diplomats such as ambassadors are vital for Zimbabwe to promote its foreign policy, in many cases having such high ranking officials in every diplomatic mission may not be necessary. A lower ranking diplomat assisted by local staff may be adequate to save on costs such as rentals which is the biggest expense at our missions.
- Keep minimal diplomatic personnel and convert some consulates into smaller offices could then report to another bigger neighbouring consulate, embassy, or directly to head office in Harare.
- Spend less on big villas for high ranking officials as these huge houses are not a necessity at this time of economic crisis.
- The Ministry should direct its limited resources specifically to countries that are of economic value or benefit to Zimbabwe.
- The Ministry should embark on a systematic restructuring and streamlining of personnel at our embassies.
- Develop and implement diaspora communication strategy with the view to enhance participation of Zimbabweans living abroad in national development by developing structures of engagement, database of Zimbabwean living broad and their skills, development of a dedicated web portal to enhance interaction and communication on the national opportunities as well as effective provision of consular services.
- The Ministry should develop a strategic plan to build bridges with the west, with a commitment to work with others to fulfil our nation’s collective aspiration of transforming Zimbabwe back to its original form.
- It should come up with a strategic plan which would define the strategic areas around which the Ministry’s objectives and strategies can be derived.
- The strategic plan will be a performance management tool to enable the Ministry to focus its work strategically and to enhance efficiency and accountability in the use of public resources. Like in other countries, this could be in the form of a score-card to assess the performance of our ambassadors either on a weekly or monthly
basis.
8. CONCLUSION
A comprehensive network of missions abroad is a central instrument in the implementation of foreign policy and development of a nation, and the budget proposal should always aim to secure
Zimbabwe’s external representation. A flexible and appropriate presence abroad functions as a source of information and power of influence which increases Zimbabwe’s security and welfare. The budget allocation for 2017 is deeply unhelpful to achieving this.
In the words of Elon Musk, “If something is important enough, even if the odds are against you, you should just do it”. To this end, we implore, entreat and importune the Honourable Minister of Finance to grant more funding to this strategic Ministry which carries the face of Zimbabwe. We are conscious of the challenges that we are facing as a nation, but this department cannot continue in its present form.
Mr. Speaker, we need to do something about this deteriorating situation in order to save our diplomats as well as our nation from further embarrassing situations and to enable the Ministry to meet its inevitable operational requirements abroad which have not been catered for in the current budget. I thank you.
HON. MANGAMI: Thank you Mr. Speaker Sir. I am going to a Report on the Ministry of SMEs and Co-operative Development. Mr. Speaker Sir, the amount allocated by Treasury to the Ministry of Small and Medium Enterprises and Co-operative Development...
THE TEMPORARY SPEAKER: Sorry Hon Member, go
straight to your recommendations. The House has agreed that you must go to the recommendations only.
HON. MANGAMI: It is okay, Hon. Speaker Sir. I am reading the recommendations, only that we combined them and they come immediately after the observations but anyway, I am going to do that.
THE TEMPORARY SPEAKER: Please!
HON. MANGAMI: The National Budget statement correctly identified that the economy is suffering mostly from production challenges hence the theme of the budget “Pushing Production Frontiers across All Sectors of the Economy” was ideal and relevant to the current economic quagmire. The production challenges have resulted in the fiscal space challenge as the economy continues to lose potential sources of revenue (workers retrenched and corporate taxes as companies close). Given the changing economic structure where big corporates are closing down and SMEs are driving production frontiers, there is need for the realisation that the Ministry of Small and Medium Enterprises and Cooperative Development has become the pillar of economic development in as much as it is contributing immensely to employment creation, revenue generation and supporting the big formal corporates.
In 2016, the Ministry of Small and Medium Enterprises and Cooperative Development managed to achieve the following using little budgetary allocations and the support from the Development Partners who assisted to the tune of US$ 12.6 million:
- Establishment of the observatory unit and acquisition of computer hardware.
- Production of the second formalization strategy draft document.
- Training of 23 825 micro, small and medium enterprises (MSMES) comprising 13508 females and 10317 males.
- Relocation to decent infrastructure of 1771 MSMEs countrywide.
- Registration of 868 co-operatives in all various sectors.
- Refurbishment of the SME Incubation Centre in Waterfalls under the India/Africa Incubation Centre partnership.
In light of such achievements, there is scope for increasing the budget allocation so that more can be done. This is buttressed by the fact that Development Partner support is not predictable hence the
Government should shoulder the greater part of the financing.
The above successes were also achieved against the background of a number of challenges, among them liquidity challenges, erratic funds, lack of mobility, inadequate computers and the lack of financial resources for onward lending to SMEs players. The liquidity challenges that affected the Ministry also impacted on the SMEs players. Most MSMEs operate on a cash basis, hence the shortage of cash which prevailed during the greater part of the year affected MSME operations and slowed down critical job creation in the sector. The introduction of Bond Notes by the Reserve Bank should be applauded as it has eased liquidity and cash shortage challenges for the players.
Table 1: Comparative Vote allocation and analysis for the Ministry of Small and Medium Enterprises and Cooperative
Development between 2016 and 2017.
Budget Item | 2016 Vote (US$) | 2017 Vote (US$) | Change from Previous Year |
Employment
costs |
2,693,000 | 2, 261,000 | (432,000) |
Goods and
services |
919,000 | 978,000 | 69,000 |
Maintenance | 138,000 | 122,000 | (16,000) |
Programmes | 83,000 | 620,000 | 537,000 |
Fixed Assets | 130,000 | 150,000 | 20,000 |
SMEDCO
Lending |
2, 400,000 | 2,000,000 | (400,000) |
Total | 6, 363,000 | 6,131,000 | (180,000) |
Table 1 above shows the following:-
- The total Vote allocation to the Ministry for the fiscal year 2017 is US$ 6, 131, 000, which is US$ 180 000 less than the $6,363,000 which the Ministry of SMEs and Cooperative Development was allocated in the previous budgetary year.
- The amount that was allocated to the Ministry is only 19 percent of the initial bid to Treasury, which was US$ 32,428,564.
- Most importantly, the amount that has been allocated to the Ministry of SMEs is only 0.15 percent of the total National Budget allocation of US$ 4.1 billion. This small share of the National Budget is not consistent with the fact that this Ministry now looks after a very important and large economic sector in the economy.
- Across all budget line items, there has not been any budget item that was equal or above the initial bid by the Ministry of Small and Medium Enterprises and Cooperative Development.
- A number of programmes that the Ministry of SMEs has planned to undertake in the forthcoming year did not receive any funding and have therefore been put on hold.
- The Small and Medium Enterprises Development Corporation (SMEDCO) loan revolving fund remains underfunded having received only US$ 2, 000, 000 against the initial bid of US$ 5,000, 000. This is going to make it difficult for the majority of MSMEs
to access funding in 2017.The allocation is not reflective of the importance of the SMEs in the economy which has become largely informalised.
Table 2: Analysis of the Vote for the Ministry of SMEs and Cooperative Development in relation to the Total National Budget.
Employment | Operations | Capital expenditure | Total | |
Vote Allocation to
Ministry of SMEs |
$ 2,261,000.00 |
$1,720,000.00 |
$2,150,000.00 |
$6,131,000.00 |
Total National Budget | $2,506,289,000.00 |
$400,000,000.00 |
$520,000,000.00 |
$3,426,289,000.0 0 |
Proportion of Min of
SMEs Vote to total National budget |
0.09% | 0.43% | 0.41% | 0.18% |
Table 2 above shows that the total Vote allocation for the Ministry of Small and Medium Enterprises ($6,131,000) as a share of the total Government Budget excluding statutory and Constitutional Votes ($3,426,389,000) is only 0.18%.
Breaking it down shows that the Ministry of SMEs operations will consume 0.43 percent of the total amount earmarked for operations by the Government in 2017. Capital expenditure will take 0.41 percent of the total Government capital expenditure.
Implications of the Vote Allocation
- The amount allocated by Treasury to the Ministry of SMEs and Cooperative Development falls significantly short of the programming requirements of the Ministry. The budget seriously handicaps the Ministry of SMEs, which has set out to achieve a number goals as enunciated in their strategic plan.
- The Budget fails to reflect the importance of the MSMEs in the current economic set up where the sector is a pillar of production in the country generating employment, contributing to production processes and tax revenue.
- The Ministry’s vehicle fleet is now very old and they have few vehicles to enable mobility but the allocation to the Ministry is not adequate to purchase the required motor vehicles and motor cycles for provinces to reach out to all the potential sector players.
- No financial resources were allocated for the formalization of SMEs when current discourse in and outside Government is centering on how to formalise the informal sector to enable increased participation of the SMEs in the economy which will enhance their contribution to fiscal revenues.
- The Ministry has accrued rental arrears to the tune of $400,000 and is on the verge of being thrown out of the rented premises. The Ministry is currently being charged rentals of $43,000 per month for its offices across the country. In the long term, the Government will be better off incurring a once off capital expenditure either buying or building offices so that it ceases paying rentals.
- With the MSMEs facing challenges accessing bank loans, the amount that was allocated to SMEDCO of $2 million is insufficient to cover the ever increasing players who require funding. There is need for this allocation to be disbursed earlier in the year.
- Whilst the release of the US$ 10 Million to SMEDCO in the form of Treasury Bills by the Government is appreciated, the move did not achieve the intended objective of availing liquidity to SMEDCO. It should be understood that the market is currently not very liquid hence attempting to liquidate the Treasury Bills at the moment calls for a huge discount. This implies that the resources will remain locked in TBs making it difficult for SMEDCO to onlend the resources to the SME Sector.
- SMEDCO was also not allocated any funds for infrastructure, hence all ongoing infrastructural projects will be put on hold. The implication is that the cost of those projects will continue to increase, which would further increase their risk of the projects not being completed.
- The Government has proposed that the presumptive tax be ringfenced for the capitalisation of SMEDCO which is a positive development. However, it is imperative for Treasury to give clarity as to what percentage of this tax income is going to be ring-fenced and how the disbursement is going to be done.
- At the heart of every programming process is the need for monitoring and evaluation of programs, however, the budget failed to live with this reality. Not a single cent was allocated for this important cause. It will be difficult for the Ministry of SMEs and Cooperative Development to measure the impact of the ongoing programmes hence difficult to understand if there is success or not.
RECOMMENDATIONS
The following recommendations flow from the analysis of the 2017 Budget Vote for the Ministry of Small and Medium Enterprises and Cooperative Development:-
- Government should give greater priority to the Ministry of
Small and Medium Enterprises and Cooperative Development considering the increased importance of the SME and Informal sectors to the overall well-being of the economy.
- Government should immediately release the $2,000,000 allocated for the capitalization of SMEDCO in the first quarter of the year to enable the entity to provide loans to the SME sector.
- Treasury should restore the $180,000 shortfall on the 2017 Budget Vote so that the 2017 Vote is at least equal to the Vote for last year.
- Government should consider acquiring or constructing its own buildings so that it stops leasing properties because in the long run this is a very expensive option.
- Treasury should ensure timely disbursement of allocated funds and the funds should be disbursed in full to avoid jeopardizing programmes underway.
- The Ministry of Finance should conduct wider stakeholder consultation when they review presumptive tax.
Conclusion
The budget allocation is very small in relation to the programme requirements of the Ministry of SMEs and Cooperative Development. It is important that the Ministry’s allocation be increased by US$180, 000 so that it at least tallies with the 2016 allocation which was not also adequate. The formalisation of the informal sector is the new narrative, hence there is need for an allocation towards this important cause to allow the Ministry to engage SME players and train them with the support of other line Ministries. There is need to 'walk the talk' in as far as disbursements of the resources is concerned given the allocations are already less than the required appropriations. Any further reductions and any failure to actually disburse allocated amounts will worsen the situation for the Ministry of SMEs which has a number of important goals to achieve. I thank you.
HON. MUNOCHINZWA: Thank you Mr. Speaker Sir. I rise to
present a Report of the Portfolio Committee on Higher and Tertiary
Education Science and Technology Development.
1. Mandate and Priorities of the Ministry in 2017
The Ministry is responsible for the oversight, formulation and implementation of policies related to planning, training and development of human capital and the promotion of science, technology and innovation. The operations of the Ministry are governed by the provisions of the Manpower Planning and Development Act, the 2nd Science, Technology and Innovation Policy and Statutory Instrument 1 of 2000 as amended. The Ministry also facilitates cooperation in research and development, higher and tertiary education as well as science and technology at local, regional and international levels. The
Ministry falls under the Social Services and Poverty Eradication and Value Addition and Beneficiation clusters of the ZIM ASSET policy.
The Ministry will prioritize the following areas in 2017.
Human capital development: The Ministry continues to prioritise the improved supply of skilled and competent human capital through universities, polytechnics, teacher’s colleges and industrial training colleges. The Ministry will also prioritise lobbying the international community for financial, material and other support in addition to ensuring quality of all programmes and services in all tertiary institutions as well as providing scholarships to the needy and deserving scholars.
Science and technology development: The Ministry will advance the science and technology development agenda through research, development and innovation; technology transfer for science, socioeconomic development, promotion and advocacy on science activities countrywide. The Ministry will continue to promote the teaching and learning of STEM subjects.
2. Key achievements for 2016
The achievements for 2016 can be viewed from the ZIM ASSET perspective under two clusters namely;
- i) Social Services and Poverty Eradication and ii) ii)Value Addition and Beneficiation.
2.1 Social Services and Poverty Eradication
Establishment of new universities: Three more universities were established in the remaining three provinces, which did not have universities, making higher education more accessible to deserving students throughout the country.
Increased number of graduates (as at 30 September 2016): 8526 students graduated from 8 polytechnics and 3 industrial training colleges; 7471 students graduated from 14 Teachers colleges; 4682 students graduated from 2 universities.
Bilateral scholarships: 156 bilateral scholarships processed in the engineering field.
STEM programme: 5132 students were enrolled to study A ‘level
Mathematics and any 2 science subjects on full scholarship.
HPC computer centre: The connection of the HPC to universities and private organization is 80% complete.
Construction and refurbishment works: The female hostel and 2 warden houses completed at Lupane State University. Phase 1 relocation of students and staff from Bulawayo city to the campus effected with 145 students and 95 staff members accommodated. Thirty blocks at Madziwa Teachers College were refurbished while student hostels were also refurbished at Great Zimbabwe University and Gwanda State University.
2.2 Value addition and Beneficiation
Centre of excellence in mineral processing and beneficiation (CEMPB): The National task force team for the development of a document on draft modalities and statutes for CEMPB is already in place.
Coal to fuel production: Verify Engineering has commenced the production of liquid gas from coal and the expected production per day is 65 000 liters of liquid gases (oxygen and nitrogen).
Water purification and bottling: The Harare polytechnic and Harare Institute of Technology have completed the development of water purification and bottling plants.
Pharmaceutical and herbal medicine production: The construction of infrastructure, manufacture and production of pharmaceutical and herbal medicine is at 30% completion stage at HIT.
Tobacco Grader production: The design, production and commercialization of mechatronic tobacco grading system are at 10% completion stage at HIT.
Biodiesel production: The production of biodiesel from jatropha by Finealt Engineering is ongoing.
3. Overview of the Ministry’s Budget
The Ministry’s budget constitutes 4.9% of the total National Budget allocations for 2017 down from 9.1% in 2016. This indicates a decrease in priority accorded to the Ministry in 2017. The overall allocation of the Ministry will decrease by 35% in 2017 having decreased by 2.9% in 2016 and decreased by 10.7% in 2015. The major decrease is witnessed in the Current Transfers budget which will decrease by 43.5% in 2017.
This situation will cripple service delivery in grant aided institutions.
The situation also reflects a scenario of expenditure switching given an almost stagnant national budget at $4 billion. Figure 1 shows the Ministry’s budget allocations since 2012. Figure1: Ministry allocations from 2012 to 2017
Source: Budget Estimates (2012-2017)
3.1 Economic classification of the Vote allocation
The Higher Education budget is highly recurrent with 88.4% of the total budget going towards current expenditures in 2017 leaving 11.6% for capital expenses. This reflects a highly consumptive budget. Current transfers take the bulk of the Ministry’s current expenditure budget absorbing 62.3% in 2017 compared to 72% in 2016 and 66.7% in 2015. This remains the key expenditure priority area of the Ministry. Current
Transfers supports grant aided State enterprises and agencies under the Ministry. As of end of October 2016, 74.4% of the total budget resources had been disbursed to the Ministry with significant disbursements going towards current expenditure (80.7%), with current transfers getting 77.8%. However, the resources were not always available on time. On the other extreme, only paltry resources were disbursed towards capital expenditure (5.2%), goods and services (18.6%) and maintenance (44.1%). This will impact negatively on the day to day running of the ministry. Table 1 shows the economic classification of the ministry’s expenditure in 2017 compared to 2016.
Table 1: Economic classification of the Ministry’s Vote for 2017 compared to 2016
Economic
classification of the vote |
2016
Appropriation |
Exp to
Oct |
2017
Appropriation |
% expt to
Oct 2016 |
Proportion of 2017 budget | %
change |
Current expenditures | 282060620.0 | 227726097.0 | 177666000.0 | 80.7 | 88.4 | -37.0 |
Employment costs | 58925000.0 | 54908159.0 | 50000000.0 | 93.2 | 24.9 | -15.1 |
Goods and services | 1165000.0 | 217081.0 | 1858000.0 | 18.6 | 0.9 | 59.5 |
Maintenance costs | 281000.0 | 124043.0 | 630000.0 | 44.1 | 0.3 | 124.2 |
Current transfers | 221685620.0 | 172476814.0 | 125178000.0 | 77.8 | 62.3 | -43.5 |
Targeted initiatives | 4000.0 | 0.0 | 0.0 | -100.0 | ||
Capital expenditures | 25660000.0 | 1340843.0 | 23220000.0 | 5.2 | 11.6 | -9.5 |
Acquisition of fixed assets | 65000.0 | 119500.0 | 4617000.0 | 183.8 | 2.3 | 7003.1 |
Capital transfers | 25595000.0 | 1221343.0 | 18603000.0 | 4.8 | 9.3 | -27.3 |
Total 307720620.0 229066940.0 200886000.0 74.4 100.0 -34.7
3.2 Programmes of the Ministry
Three main programmes of the Ministry have been identified as
Policy and Management, Human Capital Development and Science and Technology Development. The bulk of resources of the Ministry go towards human capital development (96.2%). This is in line with the core mandate of the Ministry of improving the supply of skilled and competent human capital. The resources to the areas for 2017 have been apportioned as in figure 2.
Figure 2: Resources to the Ministry by main Programme
3.3 Analysis of the Sub Votes of The Ministry
The Ministry has 3 sub votes namely, Administration and general,
Teachers’ Education and Technical and Vocational Education and
Training (TVET). The Teacher Education budget covers ten Teacher’s colleges while TVET covers 8 polytechnics, 385 independent TVET institutions and 2 industrial training centres. The budget for TVET is supplemented by the Zimbabwe Manpower Development Fund (ZIMDEF). The Administration and general supports 15 grant-aided State enterprises and agencies which are10 State universities in each province, the National Biotechnology Authority, the Zimbabwe Council for Higher Education (ZIMCHE), Verify Engineering (Coal to Fuel), Finealt Engineering (Bio-Diesel) and the National Nano-technology.
As a proportion of the total Ministry budget, the Administration and General budget takes 74.7% in 2017 compared to 82% of the budget in 2016 and 77% in 2015. The Teacher Education budget takes 18.8% of the Ministry’s budget in 2017 and the remainder (6.6%) goes to Technical and Training Education. Figure 3 shows the distribution of the
Ministry’s Vote in 2017.
- Figure 3: Distribution of the Ministry’s Vote in 2017.
Administration and general budget
The Administration and General budget will decrease by 40.3% in 2017 against an increase of 3.3% in 2016. The major sub component of the Admin and General budget are Current Transfers which support grant aided institutions under the Ministry. The Current Transfers Vote will decrease by 43.5% in 2017. As a proportion of the total Admin budget, Current Transfers take away 83.4% in 2017 compared to 88.1% in 2016 and 86.9% in 2015. A decrease in the Current Transfers’ budget of this magnitude will cripple institutions of higher learning in delivering their core mandates. The budget will not sustain the institutions for more than 6 months going forward. Table 2 shows the distribution of the Administration and General Budget.
Table 2: Distribution of the Administration and General
Budget
Administration and general | 2016 | Exp to
Oct 2016 |
2017 | %
disbursed |
%change | prop
2017 |
Current expenditure | ||||||
Employment
costs |
5270000 | 4061686 | 4685000 | 77.1 | -11.1 | 3.12 |
Goods and
services |
558000 | 217081 | 623000 | 38.9 | 11.6 | 0.42 |
Maintenance
costs |
281000 | 54044 | 315000 | 19.2 | 12.1 | 0.21 |
Current transfers | 221601000 | 172476814 | 125178000 | 77.8 | -43.5 | 83.44 |
Programmes | 611000 | 70000 | 590000 | 11.5 | -3.4 | 0.39 |
Capital expenditure | 0.00 | |||||
Acquisition of fixed assets | 65000 | 20000 | 0.0 | -69.2 | 0.01 | |
Capital transfers | 23063000 | 1221343 | 18603000 | 5.3 | -19.3 | 12.40 |
Total 251449000 178100968 150014000 70.8 -40.3 100.00
3.3.1 Analysis of the Teacher Education Budget
The Teacher Education Budget will decrease by 15% in 2017 having decreased by 27.3% in 2016. Employment costs which chews 98% of the Teacher Education Budget, will decrease by 16% in 2017 and is not clear which policy will be instituted to support this new development. The operations budget remains constant while the poor levels of disbursement of 11.9% by October, further cripples the department’s operations. The situation in teacher’s colleges will get into a sorry state if the Treasury fails to improve resource allocations.
By October 2016, 98% of resources had been disbursed towards the Teacher Education Vote with the major disbursement going towards employment costs (99.5%). Only 11.9% was disbursed for operational expenses while nothing was disbursed for current transfers. Also no allocation was made for acquisition of fixed assets in 2016.
This situation obviously will affect the Ministry’s achievement of its key result areas which includes quality human capital development, science and technology development, research and development, quality assurance and standards, technology transfer and knowledge generation and application. Table 3 shows the Teacher Education budget status.
Table 3: Teacher Education budget status
Teacher education | 2016 | Exp to Oct | 2017 | % disbursed | %change | prop 2017 |
Employment
costs |
43934000 | 43701566 | 36963000 | 99.5 | -15.9 | 97.9 |
Operational expenses | 500000 | 59500 | 500000 | 11.9 | 0.0 | 1.3 |
Current transfers | 9000 | 0.0 | -100.0 | 0.0 | ||
Acquisition of
fixed assets |
300000 | 0.8 | ||||
Total 44443000 43761066 37763000 98.5 -15.0 100.0 |
3.3.2 Analysis of the Technical and Vocational Education and
Training (TVET) Budget
The budget towards TVET will increase by 11.5% in 2017 having decreased by 4.4% in 2016 and decreased by 7.2% in 2015. The increase probably reflects the inclusion of vocational training centres who previously were housed under the Ministry of Youth, Indigenisation and Economic Empowerment. Employment costs will decrease by 14.1% in 2017. Although there is a significant increase in the acquisitions of fixed assets budget by 187.2%, the major question is on disbursements since this item has not received anything since 2014. The operational expenses budget will also decrease by 9.1% in 2017.This scenario as in the previous budget, depicts a retrogressive approach towards entrepreneurship considering the fact that the department impact skills necessary for students to start own projects against background of high unemployment and a growing informal sector. As a proportion of the total TVET budget, employment costs constitute 63.7% in 2017 compared to 76.7% in 2016. Acquisition of fixed assets will consume 32.5% in 2017 from 12.6% in 2016. Although the budget is supplemented by ZIMDEF, the situation is becoming worse given the financial management problems of ZIMDEF funds as unearthed by the
Zimbabwe Anti Corruption Commission (ZACC) in the last quarter of 2016.
By October 2016, 61.3% compared to 62.1% in2015 of the Vote appropriation has been disbursed towards TVET. The major disbursement goes towards employment costs (73.5%) while 10.9% is for operational expenses. No funds were disbursed towards acquisition of fixed assets as in the 2015 and 2014 budgets. This is despite the rise in funds allocated in the 2017 Budget which increased by 187.2%. Table
4 shows the TVET Budget status.
Table 4: TVET Budget status
Technical education and training | 2016 | exp to Oct | 2017 | % disbursed | % change | prop 2017 |
Employment
costs |
9721000 | 7144907 | 8352000 | 73.5 | -14.1 | 63.7 |
Operational expenses | 550000 | 60000 | 500000 | 10.9 | -9.1 | 3.8 |
Acquisition of fixed assets | 1482000 | 4257000 | 0.0 | 187.2 | 32.5 |
Total 11753000 7204907 13109000 61.3 11.5 100.0
3.4 Analysis of the Current Transfers budget
Current transfers consume 62.3% of the total budget of the
Ministry. This Vote decreased by 43.5% in the 2017 Budget. This is mainly driven by an average reduction of 45% of resources going to universities. This is a major blow to universities who solely depend on Government funding. The budget for universities mainly caters for employment costs of staff members. The reduction of this line item’s budget allocation by almost 50% will inevitably impact negatively on service delivery and ultimately result in brain drain and potential student demonstrations and industrial actions.
The levels of disbursements at an average of 77.8% are also worrisome. Some key and critical staff members have already resigned from universities due to unpredictable salary disbursements on a monthly basis. This was further compounded by work overload given the current recruitments freeze on all vacant posts.
The continued reduction in budget allocations towards the ministry’s specialised projects, with potential to raise revenue, shows lack of commitment on the part of Treasury. These projects include those initiated by the National Biotechnology Authority, Finealt and
Verify Engineering, which have remained underfunded for many years with erratic disbursements making the institutions literally dysfunctional.
The Treasury has also failed to disburse funds towards capacitating the HPC and Innovation and Commercialisation Fund despite having made some provisions in the previous budget. While these are potential revenue generators, they remain infant institutions that depend on
Government resources year in year out.
The scholarship fund remains largely inadequate given outstanding obligations to host countries. While the disbursement rate towards this budget item is commendable, there is need to grow the fund so that we owner our part with regards to bilateral agreements with host countries.
Table 5 shows the breakdown of the Current Transfers budget.
Table 5: Breakdown of the Current Transfers budget
Current transfers | 2016 | exp to oct | 2017 | %
disburse d |
%chang
e |
prop
2017 |
Bindura Univesity of Science
Education |
15143000 | 11722105 | 8311000 | 77.4 | -45.1 | 6.6 |
Chinhoyi University of 19057000 14679142 10349000 77.0 -45.7 8.3
Technology | ||||||
Great Zimbabwe University | 22023000 | 17377834 | 12649000 | 78.9 | -42.6 | 10.1 |
Gwanda state university | 35000 | 45000 | 0.0 | 28.6 | 0.0 | |
Harare Institute of Technology | 10535000 | 8223864 | 5869000 | 78.1 | -44.3 | 4.7 |
Lupane State University | 7868000 | 5907433 | 4320000 | 75.1 | -45.1 | 3.5 |
Midlands State University | 30315000 | 24181946 | 17322000 | 79.8 | -42.9 | 13.8 |
Manicaland state university | 40000 | 35000 | 0.0 | -12.5 | 0.0 | |
Mashonaland State university | 40000 | 35000 | 0.0 | -12.5 | 0.0 | |
National Education and
Training Fund |
1000000 | 500000 | 1000000 | 50.0 | 0.0 | 0.8 |
National University of Science and Technology | 28364000 | 22173468 | 15876000 | 78.2 | -44.0 | 12.7 |
University of Zimbabwe | 60494000 | 46868596 | 33161000 | 77.5 | -45.2 | 26.5 |
Zimbabwe Council of Higher
Education |
1065000 | 714845 | 825000 | 67.1 | -22.5 | 0.7 |
Zimbabwe Open University | 20527000 | 15771242 | 11153000 | 76.8 | -45.7 | 8.9 |
Scholarships-foreign students | 1000000 | 1420000 | 1000000 | 142.0 | 0.0 | 0.8 |
Zimbabwe Manpower
Development Fund |
0.0 | |||||
Biotechnology Authority | 277000 | 137136 | 175000 | 49.5 | -36.8 | 0.1 |
Finealt | 1703000 | 1293790 | 1349000 | 76.0 | -20.8 | 1.1 |
High performance computor | 40000 | 10000 | 0.0 | -75.0 | 0.0 | |
Innovation and
Commecialisation Fund |
100000 | 20000 | 0.0 | -80.0 | 0.0 | |
Verify Engineering | 1937000 | 1477918 | 1636000 | 76.3 | -15.5 | 1.3 |
ZIMDEF Science and
Technology grants |
0.0 | |||||
Subscription to various 38000 | 27495 38000 72.4 0.0 0.0 | |||||
organisations |
Total 221601000 17247681 125178000 77.8 -43.5 100.0
4
4. Implications of the budget
- The overall budget allocated to the Ministry constitutes 4.5% of the total budget and will decrease by 34.7%. This will negatively impact on service delivery particularly towards employment costs for tertiary institutions. The largest percentage of the budget 62.3% goes towards current transfers (mainly state universities) which is a reduction from the previous year’s allocation towards current transfers of 72%.
- Disbursement to October 2016 accounted for 74.4% of the resources allocated. Although this is an improvement from 62% disbursed in 2016, it is still low given that the funds will be needed monthly for operational expenses and meeting employment costs.
- The budget remains highly recurrent as it leaves only 11.6% for capital expenses. This budget is very consumptive and lacks developmental drive.
- The cadetship funds under the National Education training fund are insufficient to restore the cadetship programme. The funds are also going towards meeting an insignificant part of previous obligations standing at $37 000 000.
- The budget of $1 000 000 towards scholarships to foreign students will imply reduced stipends to foreign students who are already on stream against an arrear of $340 000. This will make students vulnerable and creates a bad image for the country. There is also an outstanding arrear for 2016 of $500 000 for the Equatorial
Guinea Programme of which the same amount was allocated in 2017. This implies that the country will fail to fulfil the requirements of foreign students in the two countries.
- The operational budget for Teachers’ colleges and Technical and Vocational Training colleges are never released year in year out.
This adversely affects operations at the institutions.
- Despites the funds allocated to programmes being insufficient, the
Treasury always fails to disburse the funds making it difficult to derive benefits from such programmes. Important to note is that these are STEM programmes with a potential to turn around the economy.
- A small budget for STEM disciplines ($200 000) will result in reduced enrolment for STEM based courses.
- The outgoing education attaché in Paris has outstanding salary arrears and the new attaché is not able to depart for France due to resource constraints.
- The reduction in the Current Transfers budget which largely meets employment costs for grant aided institutions coupled with delayed releases of salaries, kill staff morale and eventually results in destructive demonstrations, industrial actions and massive brain drain.
- The fees generated by institutions under the Ministry have been proved beyond doubt to be insufficient to run the institutions and thus have been used for operational expenses and supplementing research and development. This is mainly because the fees are pegged low and in line with affordability and also that payments are intermittent. Thus, shifting the burden to institutions to be selfreliant and sufficiency, which is counterproductive.
- The budget towards the HPC of $10 000, which is far short of the basic requirement of $1 307 600 covering areas such as internet, operational and software licences, forensic HPC live demonstrations, HPC marketing and publicity, electricity, human capital development and HPC user training. It is important to note that once fully operational, the HPC has potential to recover costs through billing users.
- The overall implication of the budget allocated to the ministry is to reduce the volume and extent of its activities to fit the budgetary resources.
5. Recommendations
- The timeous disbursement of funds allocated to all budget items remains critical. This is in light of low levels of disbursements towards operational expenses, maintenance, programmes and
fixed assets acquisition as well as unpredictable disbursements towards grant aided institutions’ salaries.
- The resources towards current transfers should be increased by 44% to at least restore grant aided institutions, in particular universities.to the situation obtaining in 2016. Otherwise, resources will be depleted within the first 6 months of the year.
- There is also urgent need to clear outstanding arrears to the Ministry such as $48 080 591 liabilities on goods and services, the August 2015, 50% salary arrears ($7 963 320) and the $7 658 779 on outstanding certificates for work done but not paid for in grant aided institutions. While the Ministry’s activities are ongoing concerns, such arrears will continue to militate against service delivery since the current budget does not reflect these.
- The Government should rationalise tertiary institutions establishment in line with SADC standards, lecturer/student ratios and STEM thrust. This is in light of the freeze on recruitments which has resulted in an overall Ministry’s staff deficit of 2 498.[1] The Government should seriously consider lifting the ban on recruitment, in light of brain drain affecting some universities’ programmes that are STEM related.
- The Treasury should increase funding towards scholarships in order to enable the country to meet its bilateral agreements with host countries as well as avert the potential of putting the country’s image at stake when Zimbabwean students abroad demonstrate against poor conditions. The Government should also avail resources towards the Equatorial Guinea students studying in Zimbabwe in fulfillment of the fuel agreement signed between the two countries.
- In light of dwindling fiscal support towards the Ministry’s specialised projects with potential to generate revenue such as National Biotechnology Authority, Verify Engineering and
NanoTechnology, the Government should consider the option of privatising the entities to make them operational and viable. The Government should also avail resources for patenting products produced by such companies so as to enjoy long term benefits.
- The Treasury should review upwards the budgets to new state universities which have become a burden to other universities with a supervision role on them.
- The Government through the Treasury and RBZ, should accelerate the infrastructure bond funding option so that it becomes operational. While some universities have PSIP work in progress, the progress is very slow due to lack of funding while other new universities are still to commence on infrastructure development work.
- In light of massive unemployment in the country, the Government should consider providing refresher courses to graduates before they finally get absorbed. In addition, the Government can also consider exporting graduates to countries in need of them and benefit through remittances which feeds into the fiscus.
- In order to sustain new programmes in tertiary institutions that have an impact on the economy(in light of the current freeze on recruitment of staff) such as the training of
Optometrists and Aircraft Engineers, the Treasury can virement resources from directly related entities.
HON. KWARAMBA: This 2017 Budget Analysis Report pertains
to the Vote Allocations made to the Ministry of Public Service, Labour and Social Welfare; the Ministry of Welfare Services for War Veterans,
War Collaborators, Ex-Political Detainees, Restrictees and; and the Public Service Commission.
- ANALYSIS OF THE 2017 BUDGET VOTE FOR THE
MINISTRY OF PUBLIC SERVICE, LABOUR AND
SOCIAL WELFARE
The Ministry of Public Service, Labour and Social Welfare’s core mandate involves promoting a conducive labour market environment, fair labour standards, labour productivity and efficient employment placement services and includes; capacity building to ensure efficiency
in the delivery of public goods and services; enhancing self-reliance through the provision of social protection services to vulnerable and disadvantaged groups in society; providing an interface with the International Labour Organisation and ensuring the maintenance of labour standards. The Ministry is also tasked with initiating reforms aimed at strengthening public service management and administration and mobilising resources for the Ministry, the National Social Security Authority (NSSA), Premier Service Medical Aid Society (PSMAS) and the Zimbabwe Institute of Public Administration And Management
(ZIPAM). In order for the Ministry to play its central role in the achievement of ZIM ASSET goals and to deliver on the key ZIM ASSET pillar of Social Service and Poverty Alleviation through the attainment of important social and economic objectives, as well as the attainment of the Sustainable Development Goals, it is critical for the Ministry of Public Service, Labour and Social Welfare to be adequately resourced. Because of this central role, the MPSLSW is one of the four Government Ministries that have been piloted on the Programme Based |
Budgeting framework. Under this framework, the Ministry has four programmes and the budget vote of $193,789,000 for 2017 has been appropriated in full cognisance of these programmes, namely:
- Policy and Management; ii. Public Sector Human Capital Development; iii. Labour and Social Services Administration; iv. Social Welfare.
The total allocated vote of $193, 789,000 for the Ministry of Public
Service, Labour and Social Welfare is significantly lower than the its bid
($291,000,000) and this will significantly affect the performance of the Ministry and derail attainment of its set objectives for 2017.
Table 1: ANALYSIS OF THE 2017 BUDGET VOTE FOR THE
MINISTRY OF PUBLIC SERVICE, LABOUR AND SOCIAL
WELFARE
Employment | Operations | Capital expenditure | Total | |
Ministry allocation | $165,019,000.00 | $27,750,000.00 | $1,020,000.00 | $193,789,000.00 |
National Budget Total | $2,506,289,000.00 | $400,000,000.0 0 | $520,000,000.00 | $3,426,289,000.00 |
Proportion of the MPSLSW vote to
total budget line |
6.58% | 6.94% | 0.20% | 5.66% |
Prop of vote to the total Ministry
allocation |
85.15% | 14.32% | 0.01% | 100.00% |
- The total vote for the Ministry of Public Service, Labour and Social Welfare constitutes 5.66 percent of the total vote allocations for 2017 ( excluding statutory and constitutional allocations)
- The major component of the vote allocation is employment costs which will consume 85 percent of the total amount allocated to the Ministry. This high level of expenditure going to employment costs (85%) is not a healthy scenario and points to the need for
Government to continue with efforts to rationalise the Civil Service.
- Though operational costs will consume 14 percent of the
Ministry’s budget, this is a higher proportion relative to the total operations costs of the Government at 6.94% of total Government operations costs.
- The vote allocation signifies that the budget is a recurrent expenditure budget with very little set aside for capital expenditure.
- This implies that if the proposed revenue inflows dwindle during the year, the capital allocations will suffer the most.
- It should be understood that international best practice requires that capital expenditure should be at least 25 percent of the budget allocations.
Challenges of the allocations and their implication
National Social Security Authority Contributions
Government has been unable to remit NSSA Employer
Contributions with arrears now approaching $180 million. The situation spells doom for NSSA since it is paying Government Pensioners, whilst contributions are not coming in. In view of the fact that the NSSA minimum pensions are being reviewed to $100 per month with a further upward review to $150 per month planned for 2017, it is critical for Government to avail sufficient resources to NSSA to avert its possible collapse in the very near future. Only $34,800,000 has been set aside for NSSA in the 2017 Budget. This amount falls significantly short of what would be required to resolve the arrears problem.
Premier Medical Aid Society (PSMAS)
The Government has been failing to remit its contributions to the PSMAS hence has fallen into arrears. These arrears are affecting the smooth provision of health services to members who are frequently turned away from health institutions or are required to pay cash upfront for services.
Goods and Service Providers
The Ministry of Public Service has incurred significant arrears for goods and services across all its programs. The arrears are for Rentals, Utilities, Allowances, Communication expenses (Fixed and Mobile
Telephone expenses, Internet, advertising, newspapers and transportMotor Vehicle Hire and Vehicle maintenance). The Ministry currently faces a real risk of being taken to court and possible cancellation of leases and eviction if arrears for these services and rentals are not cleared.
Current Transfers
The Ministry has accumulated unpaid subscriptions to
International bodies where the country is a member. These are: - Eastern and Southern African Management Institute (ESAMI), African
Regional Labour Administration Centre (ARLAC), African Training and
Research Centre In Administration for Development (CAFRAD), International Labour Organisation (ILO) and International Organisation for Migration (IOM). Zimbabwe is current chair of some of these bodies and plays host to the ARLAC in 2017. Arrears are proving to be embarrassing for the image of the country.
Basic Education Assistance Module (BEAM)
Cumulative arrears for the Basic Education Assistance Module for 2014, 2015 and 2016 now stand at $72 million The Ministry has been allocated only $10million (10%) from a requirement of $105 million
This amount will result in only 161,102 children being assisted in 2017, from an estimated need of over 500,000 children. As many as 338,000 children risk dropping out of school in 2017. Major donors DFID and
USAID have stopped supporting BEAM hence the need for the Government to support the programme.
In addition to this constraint, Children in difficult circumstances have been availed only $200,000 compared to the ideal requirement of $1,500,000.00 and this will adversely affect that social programme.
Health Assistance Fund
Cumulative arrears stand at $5,800,000 and of the $6,800,000 the budget requirement for 2017; only $1,000,000 has been set aside for the Health Assistance of vulnerable households.
Food Mitigation Strategy
Only $500,000.00(9%) out of a requirement of $5,400,000.00 has been provided. This will be sufficient to provide food to vulnerable people for only one month.
Harmonized Social Cash Transfers (HSCT)
Donors have effectively pulled out of the HSCT programme owing to Government’s inability to fund their share of the $1 for $1 contribution. Poverty and vulnerability is therefore likely to increase in
- The $2,000,000 provided for in the budget represents 18% of the $13,600,000 required to sustain the programme.
Capital Transfers
Zimbabwe Institute of Public Administration (ZIPAM) and the Zimbabwe National League for the Blind require Capital Grants for improving infrastructure but have been provided only $100,000 and $84,000, out of a requirement each of $1,000,000 and $200,000 respectively implying that capital projects will not be completed this coming year.
Other Critical Services
Critical Boards and councils under the Ministry continuously fail to meet and discharge their duties due to resource constraints as the Ministry is unable to pay arrears of outstanding allowances and current expenses. These boards are the Retrenchments Board, the Older Persons Board, the Disability Board, The National Productivity Centre and
National Productivity Institute Board, National Joint Negotiating Council. In addition, critical functions in the Ministry such as the registration and Monitoring of NGOs (PVOs) and conducting Social Dialogue are not being sustained. One of the major effects of this has been the inability by the Ministry to conclude implementation of the
Kadoma Declaration agreed to by labour, government and business in 2001, with an objective to foster understanding amongst the social partners and reduce the country's risk factor.
Shortage of Equipment and Vehicles
Shortage of Motor vehicles, furniture and office equipment has impacted service delivery. Such important activities as labour Inspections and investigations and in office services are woefully inadequate as some offices have no chairs, desks and essential basic office equipment. Vehicle hire is proving to be very expensive and unsustainable and Government may need to allow the Ministry some room to purchase its own vehicles.
- ANALYSIS OF THE 2017 BUDGET VOTE FOR THE
MINISTRY OF WELFARE SERVICES FOR WAR
VETERANS, WAR COLLABORATORS, EX-DETAINEES
AND RESTRICTEES
This is a new Government Ministry and is still under-resourced in terms of human resources. Most of the staff in this Ministry has been seconded from the Armed Forces and this is creating issues of accountability and inefficiency in the Ministry.
The Ministry of Welfare Services for War Veterans is looking after the interests of 34,000 War veterans and their dependents, 9,000 War
Victims (Disabled), 5,400 Ex Political Prisoners, Detainees and Restrictees.
A massive exercise to vet War Collaborators still needs to be carried out and this has not been provided for in the budget. The Ministry is also tasked with looking after the burial of National Heroes and the upkeep of dependants and widows of National Heroes.
Table 2: Allocations to the Ministry of Welfare Services for War
Veterans, Former Detainees, Restrictees and war Collaborators
Employment | Operations | Capital expenditure | Total | |
Allocation to the
Ministry |
$830,000.00 | $21,000,000.00 | $250,000.00 | $22,080,000.00 |
National Budget Total | $2,506,289,000.00 | $400,000,000.00 | $520,000,000.00 |
$3,426,289,000.00 |
Ministry allocation as a proportion to total line allocation | 0.03% | 5.25% | 0.05% | 0.64% |
Proportion to Ministry allocation | 3.76% | 95.11% | 0.01% | 100.00% |
The total Ministry allocation remains meager given it is less than 1 percent of the total vote allocations.
The major component of the vote allocation is operations (reflecting the nature of the Ministry which is solely responsible for catering for health, fees of war veterans and their dependents).
The total allocation for operations constitutes 95 percent of the total vote allocation to the Ministry. The Ministry budget allocation is basically dominated by operational expenses as compared to employment costs.
The allocations to employment costs and capital expenditure remain very low at 0.03 and 0.05 percent of the total employment and capital expenditure votes respectively. This translates to 3.76 percent and 0.01 of total government expenditure for those votes respectively.
Of concern in the Budget is the very low capital expenditure, which should be progressively increased to 25 percent of the total vote allocation in the future, once fiscal space increases.
Challenges and Implications of the Budget Vote
- The budget vote of $22,080,000 against a requirement of $83,000,000 is grossly inadequate.
- In view of all the above the vote allocation by the Honorable Minister of Finance did not take into cognisance the expanded mandate of the Ministry of Welfare for War Veterans and as such this Ministry is currently faced with a dilemma.
- The budget fails to adequately cater for the school fees of war veterans dependants , medical bills and funeral grants. Medical bills are now soaring as War Veterans now need increased medical care due to their advanced age.
iii. ANALYSIS OF THE 2017 BUDGET VOTE FOR THE
PUBLIC SERVICE COMMISSION
The Public Service Commission’s (PSC) core mandate in terms of the
Constitution of Zimbabwe is to define operational structures for line Ministries, appoint relevant and qualified personnel and to fix and regulate conditions of service in the Civil Service. In addition, the Commission is tasked to implement all necessary measures to ensure efficient performance and the general well being of Civil Service employees. The Key Result areas of the Public Service Commission are: Social Service Delivery; Policy Formulation Advocacy and
Coordination, Implementation and Evaluation; Capacity Building and
HR Development and Management; Public Service and Civil service
Reforms and ensuring public sector accountability and Transparency.
Priority Ares of the Public Service Commission for 2017, which the budget is supposed to support are:
- Rationalization of the Public Service;
- Alignment of the Public Services Act and statutes to the new Constitution;
- Implementation of the Results Based Personnel Performance
System and Computerized Human Resources Management
Information System and payroll systems; and
- Upgrading PSC member’s skills and strengthening PSC structures.
TABLE 3: ANALYSIS OF THE BUDGET VOTE FOR THE PUBLIC SERVICE COMMISSION
Employment | Operations | Capital expenditure | Total | |
Allocation to the Commission | $12,854,000.00 | $4,500,000.00 | $1,390,000.00 | $18,744,000.00 |
Total National
Budget |
$2,506,289,000.00 | $400,000,000.00 | $520,000,000.00 | $3,426,289,000.00 |
Prop to Total Budget allocation | 0.51% | 1.13% | 0.27% | 0.55% |
Prop to Ministry
allocation |
68.58% | 24.01% | 7.42% | 100.00% |
The total allocation to the commission as a proportion of the total budget allocation was 0.55 percent (which is less than 1 percent).
The major share of the budget was allocated to operations, which will consume 1.13 percent of the total Government operations costs. Relatively this was higher than employment costs which are going to consume 0.51 percent of the total national budget.
Capital expenditure remains the smallest beneficiary from the budget at 0.27 percent and has the highest risk of not being honored in case of revenue slippages.
In terms of the allocation to the Public Service Commission, the major component is to employment costs (68.58 percent), followed by operations (24 percent) and lastly capital expenditure (7.42 percent).
The major challenge with the budget allocation remains the huge employment allocation at the expense of operations and capital expenditure
Challenges with the budget allocation to the Public Service
Commission
- The ideal budget appropriation for the PSC for 2017 was proposed at $33,359,122.00.
- This amount would have been adequate to cover the operational mandate of the Commission for 2017.
- However, a vote of $6,290,000 has been proposed by the Hon Minister of Finance and this is inadequate. The Commission has accumulated arrears of approximately $3,000,000 representing 50% of the 2017 Vote.
- Under this scenario it will be a challenge for the Commission to meet its commitments and sustain its programmes for the 2017 fiscal year.
RECOMMENDATIONS
The Committee strongly recommends that:-
- Rationalisation of the Civil Service be expedited in order to reduce the wage bill which currently takes up 97 percent of the National
Budget.
- Allocated financial resources must be disbursed timeously and in full to avoid situations of Government Departments going into arrears for critical goods and services.
- Government should urgently provide resources to clear all outstanding Employer contributions to NSSA currently at $180 million.
- Government should urgently provide resources to clear all outstanding medical aid contributions to PSMAS to enable civil servants to access medical services.
- The Ministry of Public Service, Labour and Social Welfare and other Government departments should embrace e-technology and stop buying items like newspapers.
- Government must allocate resources for the purchase of motor vehicles. Hiring vehicles is not cost efficient and it is strongly recommended that the resources being channeled for vehicle hire be instead used to finance Hire Purchase of vehicles. For the
Ministry of Public Service, Labour and Social Welfare.
- Resources must be availed to the Ministry of Public Service, Labour and Social Welfare to clear outstanding arrears with international bodies where the country is a member to avoid the current embarrassing situation.
- Adequate financial resources should be allocated towards the Basic Education Assistance Module (BEAM), to enable vulnerable children, who are our future to access basic education. In addition, Government should speedily identify other funding partners for the programme.
- Given the weaknesses of the Health Assistance Fund, Government must speedily conclude the establishment of the National Health Insurance Fund.
- The Vote for the Food Mitigation Strategy must be increased so that it covers the up to the end of March 2017 when the harvest season begins.
- The Ministry of Public Service, Labour and Social Welfare should enact a statutory instrument compelling Government departments and Ministries to use ZIPAM conference facilities.
- Boards should be self financing and some Boards under the Ministry of Public Service, Labour and Social Welfare should be merged to avoid duplication and save on financial resources.
- Government is urged to immediately move some of the beneficiaries of the Harmonised Social Cash Transfers to other
Social Protection Programmes.
- The Ministry of Welfare Services for War Veterans, Collaborators, Ex-Detainees and Restrictees should immediately recruit competent key staff and reduce reliance on seconded employees from the army as this compromises accountability and transparency.
- An audit should be conducted to establish the number of genuine War Veterans and their dependents to avert and eradicate leakages to non bona-fide beneficiaries.
- Adequate oversight must be exercised by Treasury and Parliament on the operations of the commercial businesses that have been set up by the Ministry of Welfare of War Veterans and Ministry of Public Service, Labour and Social Welfare to avoid leakage of funds.
Overall Conclusion
The Budget Votes allocated to the Ministry of Public Service, Labour and Social Welfare and the Public Service Commission are inadequate for their needs given the high levels of accumulated arrears for past services. This points to the lack of fiscal headroom and the fact that annual vote allocations are not translating into actual release of funds due to resource constraints. The Ministry of Welfare of War Veterans, Ex-Political Detainees, Restrictees and War Collaborators is hamstrung as a new ministry, but has taken initiatives to assist central government by engaging in revenue generating projects that are expected to provide additional resources. This should be highly commended.
HON. MASHANGE:
1. Introduction
The Ministry is responsible for promoting sound environment practices and sustainable development, utilisation of natural and water resources. Zimbabwe’s economy is largely dependent on environment and natural resources which makes the country highly vulnerable to the adverse impacts of climate change. Since negative climate change is threatening livelihoods of most citizens in the country, the Ministry remained one of the most strategic ministries. The Ministry is implementing mitigation interventions such as climate smart agriculture practices like rainwater harvesting and supplementary irrigation.
2. The major achievements in 2016
In 2016, the Ministry managed to achieve the following among others, with limited budget allocation of $34,242,000;
- The construction of Tokwe-MukoRsi 98% complete and to start impounding water during the 2016-2017 rain season;
- Upgrading of Harare, Chitungwiza , Kwekwe and Chegutu water supply and wastewater treatment plants under the ZIMFUND project;
- With financial support from development partners including DfiD and SDC, the Ministry drilled 240 boreholes to complete the project target of 1500 boreholes;
- An additional 145 boreholes were drilled under China Aid against a target of 300;
- 41 boreholes were drilled under the Water Fund programme.
- The water treatment plant for Lupane is now complete and supplying water to all parts of Lupane including the Lupane State
University;
- Upgrading of Beitbridge water supply and waste water is at 99% completion;
- Following the drying of the dam supplying Kotwa an emergency pipeline was constructed from Dendera farm, 7.5 km to the North
East of the Growth Point;
- Ministry received and installed meteorological equipment worth US$1.5 billion under China Aid to Africa Programmes.
- Anti-poaching system upgraded to include sniffer dogs, GPS radio tracking and drones;
- Successfully defended Zimbabwe’s sustainable utilisation principle at CITIES CoP 17;
- Establishment of green villages to scale up adaptation in Buhera,
Chiredzi and Chimanimani.
3. The major challenges faced in 2016;
In 2016 the Ministry faced the following challenges among others;
- Increased poaching targeting high value species such as elephants and rhinos throughout the country using sophisticated methods.
- Non-compliance to environment policy and legislation by institutions such as local authorities, small scale miners, mining companies etc;
- Inability to unlock resources due to CITIES restrictions on ivory trade;
- Poor solid waste management in urban centres, growth points and service centres in Zimbabwe;
- Uncontrolled veld fires resulted in the loss of 7 lives in 2016 (16 lives lost in 2015).The 2016 fire season recorded a total of 1652 incidences resulting in 1 197 335 .52 ha of land being burnt by fire while 1881 incidences and 1 336 746 .77 ha was burnt in the 2015 fire season. This translates to 10.4% reduction in the area burnt by veld fire and a 12% reduction in fire incidences;
- Foreign policies by western countries have led to a decline in proceeds from hunting in Zimbabwe;
- Tight fiscal space affected implementation of major Public
Service Investment Programme (PSIP) projects;
- Non releases of PSIP Funds resulting in delay of completion of projects identified as priority under the ZIMASSET;
- Non-payment of water levies by beneficiaries;
- Low uptake of water from some dams by farmers resulted in decline in revenue.
4. 2017 policy priorities for 2017-2019
The priorities include the following:
- Climate financing (adaptation and mitigation)
- Cloud seeding;
- Dam safety and desiltation of dams;
- Completion of on-going projects Marovanyati and Mutange dams;
- Completion of rural and urban water supply projects (Beitbridge,
Victoria falls and Binga);
- Procurement of Meteorological equipment;
- Aviation equipment – automatic weather observing systems for
Kariba, Buffalo Range, Masvingo and Hwange airports.
5. 2017 Budget Analysis
In 2017, the Ministry was allocated $ 40,100,000 against a bid of
$66,480,000. The allocation constitute only 60.32% of total requirements. However in comparison to 2016, the allocation increased by 17.3%. The implication is that the fiscal problems faced in 2016 will persist in 2017. The economic classification of the allocation is broken down as follows;
Table 1: Economic classification of the budget allocation
Budget Area | Budget Allocation | % Allocation |
Employment costs | 2,167,000 | 5.4 |
Recurrent Expenditure | 600,000 | 1.5 |
Current transfers | 43,000 | 0.1 |
programmes | 500,000 | 1.2 |
capital expenditure | 5,510,000 | 13.7 |
capital transfers | 31,280,000 | 78.0 |
Total | 40,100,000 | 100.0 |
From Table 2, 91.7% of the budget allocation is capital expenditure and 8.3% is current expenditure. 78% of the funds is allocated to capital transfers which shows that the budget is developmental in nature. The amount is for water development projects.
The budget allocation is divided into three sub-votes as follows:
2017 Vote analysis for sub-vote I: Administration and General
The total proposed funding level for 2017 is $855,700 which represent a significant decreased of 74.4% over prior years. Table 2 present the breakdown of the allocations.
Table 2: Percentage Change in Budgetary Allocations from
2016 to 2017 for administration
|
2016 | 2017 | ||
REVISED
ESTIMAT E |
EXPENDITU
RE TO OCTOBER |
APROPRIATI ON | %
change |
|
Amount | Amount | Amount | ||
CURRENT
EXPENDITURES Employment costs |
463,000 |
437,070 |
536,000 |
15.8 |
Goods and services | 287,000 | 80,866 | 198,700 | -30.8 |
Maintenance | 30,000 | 63,538 | 61,000 | 103.3 |
Current transfers | 1,015,000 | 1,018,919 | -100.0 | |
Programme | 50,000 | 100.0 | ||
CAPITAL
EXPENDITURES Acquisition of fixed capital assets |
10,000 |
1,713 |
10,000 |
0.0 |
Sub head not repeated(Capital
transfers) TOTAL |
1,543,000 | -100.0 | ||
3,348,000 | 1,602,106 | 855,700 | -74.4 |
From Table 2, budget proposed expenditure decrease mostly on current and capital transfers. For 2017 fiscal year, parastatals (EMA, Zimbabwe Parks and Wildlife Management Authority and Forestry Commission) have been weaned off in line with Government’s policy of expenditure streaming and promotion of income generation among ministries. The operations and maintenance budget (current expenditures less employment costs) decreased from $317,000 in 2016 to $309,700 in 2017 by proposing a decrease of 30.8% in goods and services and a 103.3% increase in maintenance. The implication is that the department will end up accumulating arrears and selective payment to specific service providers. In 2016, the Ministry had an outstanding debt of $442,271.41. The general operations is grossly underfunded.
Capital expenditure was allocated $10,000 in 2017 for furniture and equipment but there is no provision for vehicles as the Ministry had an aged fleet that needs urgent replacement.
5.1 Vote analysis for sub-vote ii: Meteorological Services
The department was allocated $465,500 which represent a decrease of 80% compared to 2016. Table 3 summarises the budgetary allocations.
Table 3: percentage change in budgetary allocations from 2016 to 2017 for meteorological services
|
2016 | 2017 | ||
REVISED ESTIMATE | EXPENDITURE TO OCTOBER | APROPRIATION | % change | |
Amount | Amount | Amount | ||
CURRENT EXPENDITURES
Employment costs |
1,378,000 |
1,158,100 |
1,363,000 |
-1.1 |
Goods and services | 223,000 | 54,055 | 143,800 | -35.5 |
Maintenance | 18,000 | 16,194 | 11,300 | -37.2 |
Current transfers | 14,000 | 35,000 | -100.0 | |
Programmes | 500,000 | 300,000 | 450,000 | -10.0 |
CAPITAL EXPENDITURES
Acquisition of fixed capital assets TOTAL |
197,000 |
|
5,500,000 |
128.4 |
2,330,000 1,563,349 465,500 -80.0 |
From table 3, there is a proposed expenditure decrease on current expenditures, 35.5% on goods and services, 37.2% on maintenance and 10% on programmes (cloud seeding). The proposed expenditure decrease will negatively affect the general operations of the department.
The marginal decrease in allocation to cloud seeding will ensure continued implementation of the programme in 2017.
Capital expenditure was allocated $5,500,000 which is significant increase from $197,000. The amount will fund construction works at MET office ($100,000) and procurement of weather radars for Harare and Bulawayo ($5,000,000) and hydrogen generator for Vic Falls Airport ($400,000). The proposed allocation will equip MET department with modern real-time weather casting tools necessary for disaster mitigation and preparedness.
5.2 Vote analysis for sub-vote iii: water resource management and development
The total proposed funding level for 2017 is $31,776,000 to spearhead water development projects which represent an increase of 11.2% from 2016. Table 4 present the economic classification of the allocation.
Table 4: percentage change in budgetary allocations 2016-
2017 for water resources
|
2016 | 2017 | ||
REVISED ESTIMATE | EXPENDITURE TO OCTOBER | APROPRIATION | %
change |
|
Amount | Amount | Amount | ||
CURRENT EXPENDITURES
Employment |
290,000 |
236,878 |
268,000 |
-7.6 |
Goods and services | 105,000 | 1,817,878 | 164,000 | 56.2 |
Maintenance | 25,000 | 20,417 | 21,000 | -16.0 |
Current transfers
CAPITAL EXPENDITURES |
69,000
|
39,786
|
43,000
|
-37.7
|
capital transfer
TOTAL |
28,075,000 | 26,297,787 | 31,280,000 | 11.4 |
28,564,000 | 28,412,746 | 31,776,000 | 11.2 |
From table 4, the budget proposed a decrease in expenditure on maintenance (16%) and current transfer (37.7%). The operations and maintenance budget increased by 42.3% from $130,000 in 2016 to $185,000 in 2017. The implication is that general operations of the department is set to improve in 2017 compared to previous year. No allocations for current transfer to parastatal (ZINWA).
Capital transfer proposed to increase by 11.4% from $28,075,000 in 2016 to 31,776,000. The implication is that water infrastructure development will persist in 2017. The Ministry’s priorities on water infrastructure development are as follows;
For Dams Construction
Dam safety – desiltation and repair of critical dams and rivers-
$2,000,000; Marovanyati Dam– $8,550,000, Mutange-
$2,000,000.Causeway Dam $5,000,000, Gwayi-Tshangani -$3,700,000.
Tokwe Mukorsi Dam-$4,500,000 for upgrading 12KM road access.
Water infrastructure projects development will persist as the country continue to respond to climate change needs.
Water supply and Sanitation projects:
The Budget has proposed to continue funding projects started in 2016 as follows; Binga rural water supply – $700,000 and Beitbridge water supply – $1,000,000, Victoria Falls water supply- $250,000.
These funds are expected to bring these projects to completion in 2017. The Budget also proposed to fund Borehole drilling, $3,500,000 was allocated for drilling equipment in 2017.
6. Observations
The committee observed the following in the 2017 Budget;
- The Budget prioritised capital expenditure as in the previous years.
$31,280,000 is allocated for water infrastructure projects and the
Committee noted that new projects will resume (Mutange, Causeway and Gwayi-Tshangani). Therefore the budget is developmental though the funds remain inadequate;
The Budget proposed to persist funding dam construction and water supply and sanitation programmes started in 2016 to completion. Resumption of funding for Gwayi-Tshangani ($3,700,000) was noted and the Committee view this as underfunding as an urgent maintenance is required to avoid high future costs. Moreover the Gwayi-Tshangani project has been outstanding for vear 10 years.
- The Committee observed that Kunzvi dam has neither been mentioned in the Budget Statement nor in the presentation made by the Ministry but it’s a critical dam that supplies water to Harare.
- Budget prioritised key water projects however other capital projects were not funded such as Connemara/Tuli-Moswa, Dande Dam and Tunnel. Works at Dande Dam should resume to avoid high future costs. The Committee observed that the tunnel mentioned by ZINWA as a new project is work in progress. Dande dam is also a critical dam that services Guruve and Mbire districts.
The Committee observed that the Ministry had outstanding certificates for work already done of $58,274,000 and 1,138,000 euros which need to be cleared.
- The Committee noted that $3,500,000 was allocated to borehole drilling. Although this is appreciated, the fund is insufficient as the amount can only drill 1000 boreholes. the country require more boreholes and should implement one borehole per ward policy as opposed to the current situation of 43 boreholes per district
- Automatic weather observing systems were not funded for Kariba, Buffalo Range, Masvingo and Hwange Airports; Seismic stations in Gokwe, Mt Darwin, Zaka and Nyanga.
- Increased role of development partners in financing water and sanitation infrastructure. 45% appropriation and 55% development partners. This diversity in financing mix is greatly appreciated as work on existing projects will persist. It will also help Government to redirect funds to other projects.
The Committee is deeply concerned on persistent reduction in operation and maintenance budget for most departments, while they are accumulating arrears ($442,271.41 as at 31 December).
- Continued financing of cloud seeding programme ($450,000) was noted.
- No current transfers to the Ministry’s agencies (EMA, Forest
Commission, Zimbabwe Parks and Wildlife Management
Authority) as the Ministry of Finance has started implementing self-sufficiency policies on parastatals and release pressure on Central Government funds in line with expenditure streaming and revenue mobilisation programme.
- The Committee noted the emphasis on parastatals to generate their own revenue, however Forest Commission might face challenges in generating revenue given the nature and scope of its revenue generation projects. Most of the projects are long term.
The late disbursement of funds is resulting in accumulation of arrears
- In view of the fact that Treasury disbursements are made timeously, the Committee observed that the budget allocation for the Ministry could be adequate to cover all priority projects under the Ministry.
7. Conclusion and Recommendations
In conclusion, the Budget proposed a decrease in operational budget in 2017 in line with the Government’s expenditure streaming programme. Given this revenue challenges, ministries must be innovative and create revenue generation projects. However, this has resulted in gross underfunding leading to arrears accumulation. The Committee resolve to ask for additional funding for operational budget and also encourage the Ministry to look for more development partners in key projects.
The Committee also strongly recommends that Forest commission be awarded a grant in order to keep key personnel as its activities are largely regulatory in nature. The Committee strongly advocates for the Government to fund the research and also the release of 5% tobacco levy that the Forest Commission is entitled to.
The Committee further recommends that a critical dam like Kunzvi dam should be prioritised for funding as it provides water to the generality of Harare residents.
2017 POST BUDGET ANALYSIS FOR THE MINISTRY OF
TOURISM AND HOSPITALITY INDUSTRY - VOTE 24
1. Introduction
The Ministry of Tourism and Hospitality Industry is responsible for development and implementation of tourism policies, tourism development and promotion among others. The Ministry has one parastatal Zimbabwe Tourism Authority (ZTA) which spearhead tourism promotion and development. Destination marketing is the key functional role of ZTA. The Zimbabwe Agenda for Sustainable SocioEconomic Transformation (ZIM-ASSET) has identified tourism as the quick enabler to the speed recovery of the economy. If more tourists are attracted multiple benefits are realised not only in foreign currency inflows but employment creation.
2. Key achievements for 2016
In 2016, the Ministry achieved the following;
- Completed the national tourism master plan;
- Completed visitor exit survey report;
- Hosted the inaugural joint tourism technical committee (JTTC) meeting with South Africa in Bulawayo;
- Implemented the UNWTO legacy project in Victoria Falls where the Chinotimba community swimming pool was rehabilitated;
- Developed a community based tourism enterprises (CBTEs) strategy which seek to empower communities and 4 pilot CBTE
Committee members underwent training;
Key Priority areas based on 2017 Budget allocations
- Tourism marketing and promotion;
- Domestic tourism development;
- Tourism product development and diversification;
- Tourism satellite account development;
- Community based tourism enterprises development;
- Implementation of tourism special economic zone;
- Promotion of international year of sustainable tourism for development
2017 Budget Analysis
The Ministry was allocated $2 674 000 for 2017 compared to $2 892 000 allocation of 2016. The budget allocation decreased by 7.5% and the Ministry’s funding challenges will be worsened. The Ministry remain least in budget priority ranking. The economic classification of the budget allocation is presented in table 1.
Table 1: Percentage Change in Budgetary Allocations from 2016 to 2017
|
2016 | 2017 | ||
REVISED ESTIMATE | EXPEND TO OCT | APROPRIATIO
N |
% chang
e |
|
Amount | Amount | Amount | ||
CURRENT
EXPENDITURES Employment |
1,147,000 |
808,217 |
834,000 |
-27.3 |
Goods and services | 1,483,000 | 1,263,423 | 269,000 | -81.9 |
Maintenance | 73,000 | 56,636 | 71,000 | -2.7 |
Current transfers (ZTA and subscript) | 754,776 | 1,046,047 | 460,000 | -39.1 |
Programme-tourism | 1,115,000 | 693,303 | 900,000 | -19.3 |
CAPITAL
EXPENDITURES Acquisition of fixed capital assets |
35,000 |
|
50,000 |
42.9 |
capital transfers (ZTA) TOTAL | 70,000 | 90,000 | 28.6 | |
4,677,776 | 3,867,626 | 2,674,000 | -42.8 |
From table 1, operation and maintenance budget decreased by 53.6% from $2,671,000 in 2016 to $1,240,000 for 2017 due to proposed significant decrease in goods and services by 81.9% and tourism programme by 19.3%. The implication is that the Ministry’s daily operations will be severely compromised given that the Ministry had accumulated $684,453.61 as arrears to various creditors since 2013.
Whilst the decrease in tourism programmes is due to proposed decrease in tourism promotion from $827,000 to $600,000 for 2017. Tourism marketing and promotion activities will be minimum, for instance;
- International tourism department was allocated $118,370 which would partially fund bilateral tourism relations and participation at regional and international tourism programmes. Other programmes are not funded that include promotion of women in tourism; SADC trade in Services; UNWTO regional training workshop and language training. The Ministry will not implement community based enterprise projects and not attend regional workshops in 2017 despite being a priority.
- Policy, research, planning and development was allocated $133,481 which would partially fund domestic tourism survey and strategic plan 2017-2021.
- Domestic tourism was allocated $88,000 meant for UNWTO STEP programme and JICA programmes. However, community based tourism roll out and activities to commemorate 2017 as the year of sustainable tourism for development programmes were not funded.
- Nation branding was allocated $50,000 to fund nation branding research for 3 provinces only, benchmarking exercise in one country and a nation brand website.
- These programmes are important for trade promotion.
Analysis of Current and Capital transfer to ZTA 2017
ZTA was allocated $490,000 of which $400,000 is for recurrent expenditure and $90,000 for capital expenditure. The amount allocated to recurrent expenditure is 44.7% of the amount released as at October 2016. This clearly shows that destination marketing is severely underfunded as ZTA would only fund three travel shows (2 in January and 1 in March). The Minister is expected to lauch a campaign later this year in Spain. These three shows would exhaust the 2017 budget allocation. 33 travel shows are required in order to fully market the country. Major tourist promotion programmes will be negatively affected, that is, Sanganai Hlanganani World Tourism Expo and Harare internatiomnal carnival. These two events require a minimum of $1 million. Therefore several tourism marketing and promotion activities are at risk. The consequential effect on tourist attraction will be worse compared to last year where the Government funded five travel shows. Zimbabwe recorded 1,538,905 international tourists’ arrivals during the first nine months of 2016. This figure is a 4% up from 1,483,626 during the same period in 2015. However, ZTA is facing stiff regional competition in market penetration, for instance from European markets, South Africa recorded a 16% increase in tourist arrivals from 794,073 in 2015 to 920,706 in
2016, while arrivals for Zimbabwe from the same market fell by 9% from 107,108 in 2015 to 97,383 in 2016. This disparity in market growth is unwarranted if ever tourism is to propel economic growth. ZTA has arrears to clear amounting to
$147,000 owed to suppliers in Bulawayo. Capital transfer increased from $70,000 to $90,000 in 2017, the fund is not enough to re-equip and retool as well as keep up with technology.
3. Observations
The Committee observed the following from the 2017 budget; for the Ministry;
- Severely reduced operational and maintenance budget by 53.6%
- The Ministry has accumulated $684,453.61 as arrears to various creditors since 2013.
- No funding for women tourism, UNWTO regional training workshops, programmes and activities to commemorate 2017 as the year of sustainable tourism for development; community based tourism projects roll out.
- Gross underfunding of the Tourism destination promotion programmes only $400,000 was allocated.
- Tourism Masterplan will not be implemented , however the Ministry will be able to fund –
- Nation brand website for easy navigation of tourist sites.
- The Ministry is exploring other sources of revenue by engaging Development partners.
- for ZTA
- Proposed reduced Government funding to ZTA;
- 3 international travel shows will be funded by Government in 2017 against a target of 33 shows. Travel shows are important for attracting tourist for instance tourist arrival from Nordic Countries increased from 9000 to 20000 after the Netherland travel show with estimated foreign currency inflow of $42
million.
- ZTA still owes service providers in Bulawayo for the
Sanganai/Hlanganani World travel Expo which was held in
Bulawayo June 2016 an amount of $147,000 which the Ministry of Finance and Economic Development had promised to pay;
- Major tourism marketing and promotion programmes are at
risk;
- Sanganai/Hlanganani World Tourism Expo and Harare International Carnival would not be held this year. The previous carnival had attracted over 50,000 visitors;
- Total tourist arrivals for 2016 up by 4% from 1,483,626 in 2015 to 1,538,905 in 2016. The marginal increment recorded against a actual release budget of $1,046,047 as at 31 October 2016;
- Africa is the major source market of tourist arrivals for 2016 which constitute 86.9% of total tourist arrivals;
- Declining of tourist arrivals from key European markets by 9% while arrivals from Africa fell by 3%. Therefore the source market is dwindling instead of growing;
- ZTA is being outcompeted in destination market penetration by regional competitors especially South Africa which attracted 794,073 European arrivals against a figure of 107,108 for
Zimbabwe in 2015. The gap widened for 2016 where South
Africa recorded 920,706 arrivals against 97,383 for Zimbabwe.
4. Conclusion and Recommendation
In conclusion, there is gross underfunding of core activities especially tourism promotion. The growth target of 0.8% of the sector remain uncertain. Tourism has been identified as the most strategic in economic development, however, the Ministry received the least allocation for 2017. The growth forecast of 1.7% for 2017 is attributed to the success of agriculture (that has already been fully funded), and tourism (which is grossly underfunded) among others service sectors. There is need for paradigm shift in funding development programmes, the Government must allocate more resources to sectors that are driving economic growth. Funding of tourism must rise in line with other Sub
Sahara African countries as it is not a capital intensive sector and therefore require less funds relative to capital intensive sectors. Funding tourism should be increasing rather than decreasing if ever tourism is considered as one of the key contributors to economic development. The benefits of tourism are quick compared to heavy manufacturing industries. In SADC, tourism contributes an average of 4 percent to GDP and average growth rate of the sector is 2 percent. By 2025 these figures will be 8 and 5 respectively. The country must be seen moving towards these regional targets.
Therefore, the committee strongly recommends the following;
For the Ministry
- Additional funds should be allocated for operation and maintenance budget as the allocation of $1,240,000 is inadequate as the Ministry has to clear an outstanding arrear of $684,453.61. Key priority programmes for the Ministry should be funded that include promotion of Women in Tourism, community based tourism projects roll out, regional workshops, programmes and activities to commemorate 2017 as the year of sustainable tourism
for development. The Committee requests an additional fund of $2,000,000 for the Ministry.
- Conducting an awareness campaign to all line ministries so that everyone is involved in nation branding.
For ZTA
- The allocation of $400, 000 for tourism promotion is inadequate as ZTA has to clear an outstanding arrear of $147,000 for UNWTO service providers at Victoria Falls in 2013. Travel shows and other tourism marketing and promotion programmes should be funded. If there is no aggressive marketing, less tourists will be expected and tourism contribution to growth will be low. The ZTA had approved a target budget of $11,906,000 which has a deficit of $5,000,000 as opposed to the shortfall of $10,268,000 on the ideal budget. The committee resolve to request an additional $5,000,000 for ZTA in order to reverse the decrease in growth of destination markets and outcompete regional competitors.
- The Ministry of Finance must fully resource all the must attend travel shows and fairs
- The Ministry of Finance must ensure that resources are availed for the establishment of a fully furnished Zimbabwe stand at crucial shows to increase the country’s image branding, destination marketing and promotion. The country has been outcompeted in the past years by countries like Swaziland, Lesotho, Zambia and Kenya both in China and Berlin travel shows.
I thank you Mr. Speaker.
THE HON. SPEAKER: Can the owner of the following Ford
Ranger ADI 8920 go and remove your car, it is blocking other vehicles.
HON. CHAMISA. Thank you Mr. Speaker, I am going to present
a very brief version of the report on the allocation made to the Ministry of ICT, Postal and Courier Services. In line with the traditional I was actually going to do a Power Point presentation but I realise that I might not be necessary particularly considering the fact that we are just going to focus on recommendations and observations.
POST-BUDGET ANALYSIS FOR THE MINISTRY OF
INFORMATION COMMUNICATION TECHNOLOGY, POSTAL
AND COURIER SERVICES (VOTE 25)
1. INTRODUCTION
There is global consensus that Information Communication Technology (ICT) is a powerful mechanism for social and economic development. Studies have shown that internet access and penetration have positive impacts on companies’ productivity across world regions and across different stages of development. As a huge positive, Zimbabwe will be the regional internet exchange hub which in itself is a major boost for provision of affordable internet services and socioeconomic development. The Ministry of Information Communication Technology, Postal and Courier Services has a mandate to develop a knowledge based society with ubiquitous connectivity by exploiting the potential of ICTs for sustainable socio-economic development. It has oversight over NetOne, POTRAZ, TelOne, ZARNet and Zimpost. Some of the ministerial objectives for the period 2017 include:
- Formulation of ICT sector policies.
- Maintenance of National Systems.
- E-government and setting up of Community Information Centres.
- Setting up ICT laboratories in schools.
- Establishment of Data Centre and International Internet Gateway.
- ICT literacy and capacity building for civil servants and citizens.
In the 2016 fiscal year, some of the major achievements of the Ministry include:
- Approval of National ICT policy by Cabinet.
- I. 11 of 2001 amended – Contribution by telecommunications operators to USF increased from 0.5 percent to 1.5 percent with effect from 1 January 2016.
- Completion of Community Information Centres in Gokwe,
Muzarabani, Rushinga, Glendale and Chikato.
- Infrastructure sharing regulations gazetted.
- Connected 55 District Hospitals (PFMS – Last Mile Connectivity).
- Maintained up time of PFMS system at 98%.
- Ease of doing business – connected One Stop Investment shop on fibre optic.
- Training 533 civil servants in ICTs (185 males and 348 females).
2.0 INFORMATION COMMUNICATION TECHNOLOGY,
POSTAL AND COURIER SERVICES VOTE ANALYSIS
2.1 Overall Ministry Analysis
The Ministry had drawn up an initial bid of $19,211,032. This bid was not at all considered as Treasury imposed an expenditure target of $6,355,000 on the Ministry. In the 2016 Budget, net of employment costs, the Ministry was allocated $5,192,205 of which only $3,663,751 (70.56%) was disbursed. Table 1 shows the disbursement rate by subvote.
Table 1: Disbursement to Ministry as at 31 December 2016
From Table 1, the Capital Expenditure (11.70%) component was hardest hit by delayed disbursement with Capital Transfers suffering the fate on zero disbursement. The $244,000 released was used for only one project, the National Data Centre[2]. Other projects could not be undertaken due to minimal disbursement of funds. Acquisition of Fixed Capital Assets had a disbursement rate of 12.05 percent. On the other hand, the Current Expenditure component had an impressive rate of disbursement averaging 110.06 percent. This was hugely influenced by Maintenance (378.56%) as a result of a Treasury directive to virement
$930,000 from unreleased Capital Expenditure for the settlement of a
Dexel debt for maintenance of the Public Finance Management System (PFMS). Goods and Services had a disbursement rate of 33.93 percent which had an adverse effect on operations as minimal sporadic disbursements made planning difficult. Goods and Services and Current Transfers had disbursement rates of 33.93 and 95.13 percent, respectively. Table 2 and Table 3 show the Top 10 and Bottom 17 rankings, respectively, for the vote appropriations in 2016 and 2017.
Table 2: Bottom 17 Vote Appropriations for 2016 and 2017
Table 3: Bottom 17 Vote Appropriations for 2016 and 2017
From Table 2, we can infer that Government priority is towards Primary and Secondary Education, Home Affairs and Defence in that order. Going to Table 3, the ranking of the Ministry rose from 26th in 2016 to 25th in 2017. However, in terms of vote allocation as a percentage of vote appropriations, the figure remains unchanged at 0.19%. Analysis of the percentage change in the major components of the budget allocation to the Ministry is shown in Table 4.
Table 4: Percentage Change in Budgetary Allocations from
2016 to 2017
From Table 4, there is a negligible decline in the overall vote appropriation of 1.51 percent from $6,452,205 in 2016 to $6,355,000 in
- Current Expenditure recorded a decline of 2.80 percent from the
2016 allocation. The biggest increase recorded, under Current Expenditure sub-items, is 17.04 percent for Maintenance. This perhaps shows an appreciation of the importance of maintaining key systems such as the PFMS. Appropriation of funds to Employment Costs declined by 14.52 percent and this has been attributed to the downscaling of staff establishment from 193 to 132. The Ministry highlighted a huge financial obligation of $5,496,526 for services rendered. Of this debt, $3,369,290 is owed to TelOne for phone bills and systems connectivity; $904,893 owed to Dexel and Africom for PFMS Maintenance and $713,836 for outstanding office rentals. Non-payment of rentals limits the ability of the landlord to service the premises thus seriously affecting the day to day operations of the Ministry. The allocation of funds under Current Transfers (solely attributed to ZARNet) decreased by 46.61 percent, perhaps as a progressive move to eventually wean off this state-owned enterprise once it becomes commercially viable.
Capital Expenditure registered a marginal increase of 1.20 percent from $2.085 million in 2016 to $2.110 million in 2017. There slight increase is a welcome development which could see meaningful work being undertaken provided the allocation is released in full, as opposed to the 2016 situation where a mere 11.70 percent of the CAPEX allocation was released. Table 5 shows the breakdown of bids and corresponding allocations for Programmes sub-components.
Table 5: Bids and Allocation for Capital Expenditure Subcomponents
From Table 5, a bid of $2,500,000 was placed for the National Systems Maintenance and Treasury only allocated $700,000, an underallocation of 72 percent. This allocation, while below expectation, will facilitate the continuous upgrading and modernisation of the system.
For E-Government, $300,000 (60%) is allocated against a bid of $500,000. The Ministry will not be able to achieve much given this allocation. This is against a background of non-disbursement of funds to this line item in the 2016 Budget. It is ironic to note an allocation of
$2,250,000 for E-Government under the Office of the President and Cabinet. This shows lack of harmonisation in Government projects.
From a bid of $1,300,000 Treasury was only able to allocate
$300,000 (23.08%) towards Community Information Centres. With this allocation, the Ministry cannot meet its targets. However, through the
Universal Services Fund, the setting up of 70 Community Information Centres in rural areas can be made possible through accessing part of an $11.7 million fund for ICT development.
$1,700,000 was bid for the National Data Centre and only $650,000 (38.24%) was allocated. While inadequate, the allocation is commendable as the Ministry will make some progress towards the completion of the National Data Centre project. However, there is an allocation of $6,250,000 towards establishment of a National Data Centre, but appropriation is via Office of the President and Cabinet. This may mean that significant progress can be made towards completion of this very important national project.
A bid of $150,000 was placed for ICT training but Treasury was only able to allocate $50,000 (33.33%). This allocation is deemed to be too low to make meaningful progress. The problem is compounded by the fact that no funds were released towards this line item in the 2016
Budget.
Only $50,000 (2%) was allocated from a bid of $2,500,000 towards ICT Labs in Schools. As such, no progress can be made given this under-allocation of resources. However, computerisation and Elearning facilities to 1,300 schools will be made possible via the USF $11.7 million ICT development fund. In addition, there will be introduction of tele-medicine facilities in 20 rural health centres financed from same.
2.2 PARASTATALS
TelOne is making significant progress in upgrading and updating their infrastructure. This has been made possible by a $98 million loan facility from China, where Phase 13 of the project ($25 million) has been completed as at end of December 2016. With respect to debtors and creditors, TelOne owes Government entities $37 million (ZIMRA, POTRAZ) while it is owed $88.9 million by same (Central Government, Parastatals, Local Authorities).
NetOne appears to be on a growth trajectory as seen by the ever improving subscriber base. This growth will favour the State-Owned Enterprise as there is a related decrease in interconnection fees against its competitors. Investment in infrastructural projects seems to be paying dividends. NetOne has outstanding debtors of $12.1 million (GoZ $9.1 million, NRZ $3 million) while having creditors of about $7 million (Econet $6.7 million4, Telecel $13,0005).
Zimpost is still grappling with a property dispute between itself and GoZ on the status of ownership. This has had adverse implications on Zimpost’s potential revenue that could have otherwise been earned if the dispute is resolved in Zimpost’s favour. As such, Zimpost has no claim on GoZ for unpaid rentals.
ZARNet is a potentially profitable entity that is still being sustained by an over-burdened Treasury. The state of affairs at this entity, are not pleasing to the eye. ZARNet is owed $212,000 (GoZ and Parastatals) whilst it owes $552,000 in unpaid obligations (ZIMRA, Powertel and Telone.
POTRAZ: There are currently no outstanding licence fees by mobile service providers save for minute amount owing from small private ICT companies.
3. CHALLENGES AND OBSERVATIONS
- The Ministry raised three key challenges to their operations namely; o Duplication6 of roles and absence of consolidation. o Inadequate financial resources.
- Limited skills depth due to lack of appropriate targeted training.
- Lack of cooperation and collaboration from some stakeholders.
- The Committee noted the serious potential in ICTs and raised concern with respect to duplicity in terms a project being administered from two different ministries (ICT & OPC, ICT &
Energy).
- The Committee noted with concern absence of a legislative financing framework in the budget for the tabling of important ICT Bills to Parliament. The Computer Crime and Cyber Crime Bill and the Data Protection Bill are set to be tabled in Parliament before end of the first quarter of 2017.
- The Committee noted that the Ministry was not the focal point for
ICT expertise as suggested by their core mandate.
- There is reason to believe that the annual licence fees being charged by service providers such as Africom and Dexel are inflated.
- Some ministries are not paying for ICT services rendered by stateowned entities yet they settle bills from private service providers.
- There was no information in the Budget Statement relating to the acquisition of Telecel through SOE ZARNet.
4. RECOMMENDATIONS AND WAY FORWARD
After careful consideration of submissions by the Ministry of Information Communication Technology, Postal and Courier Services, the Committee strongly recommends the following;
- Functional harmonisation and consolidation of ICT infrastructure projects and service provision ought to be done to eliminate duplication of effort and expenditure.
- Clarification must be made on Ministry of ICT, Postal and Courier Services and OPC Data Centre.
- In light of possible over-charging, the Committee should be favoured with agreements between the Ministry and service providers in-order to devise best approach towards domestic resource mobilisation.
- Treasury must revisit bidding-allocation-disbursement framework. In addition, carryover of unutilised financial resources into the next fiscal year should be permitted.
- Government must utilise ICT services that are rendered by SOEs rather than seeking same from private companies.
- Government ministries must pay for services rendered by SOEs, in full and on time, as they do with private service providers. In light of TelOne having two underutilized data centres, the Committee recommended that a feasibility study be undertaken to see whether these facilities can be converted into the much sought National Data Centre.
- The Ministry must procure all ICT equipment on behalf of
Government agencies. I thank you.
HON. NDUNA:
Introduction
The 2017 Budget comes at a time when Government fiscal space continues to shrink as evidenced by the failure of Treasury to disburse the ever declining budget allocations to Ministries. This is against a background of Government’s heavy, if not total, reliance on tax revenues to finance expenditure. Be that as it may, the tax collector is also missing revenue targets due to a diminishing tax base as the economic slowdown; which has seen many companies closing and the ‘non-taxable’ informal sector increasing its dominance in the economy continues unabated.
Mr. Speaker Sir, it is with this realisation that your Committee, in line with the domestic resource mobilisation theme of this budget, is proposing a raft of measures that can see the departments and parastatals under the Ministry of Transport and Infrastructural Development increasing their revenue base and reducing dependency on the fiscus if adopted and implemented with expediency. However, it is the hope of your Committee that the Ministry will be allowed to retain a large portion of these expected revenues in order for it to be able to discharge on its mandate of providing and managing transport infrastructure networks, logistics and services.
2016 Budget Performance Review for the Ministry
In the previous financial year, the Ministry was initially allocated
US$39.9 million of which only 27% had been disbursed by October. These resources, augmented by other funds administered by the Ministry led to the following achievements:
- Completion and commissioning of the Victoria Falls
International Airport; ii. Procurement of 31 new wagons for the National Railways of
Zimbabwe; iii. Completion of
- 1km of the Bindura-Matepatepa road;
- 5km of the Chivhu-Nyazura road widening; iv. Completion of the construction of the Mabvuku road-overrail bridge;
- Completion of the rehabilitation of 1.5km of the Bulawayo-
Victoria Falls road; vi. Completion and commissioning of the VID Bindura office block.
Overview of the 2017 Budget
The Ministry was allocated US$55.838 comprising US$45 million (81%) for capital expenditures; US$8.9 million (16%) for employment costs and operations and maintenance accounting for US$1.9 million (3%). Of the US$45 million, US$28.45 (51%) goes to road construction; other projects US$2.7 million (5%); capital transfer to CMED US$5 million (9%) and lending and equity to parastatals US$8.9 million
(16%). It is the Ministry’s hope that the allocated funds will be disbursed as outlined above though precedence does not foster much hope in that regard.
Other funds administered by the Ministry will be utilized as follows:
- Traffic and Legislation Fund – VID office block construction for Rusape, Chivhu, Norton, Gokwe and Chegutu; and procurement of boats for inland waters.
- Roads fund, road and bridge construction, and routine and periodic maintenance.
- New Limpopo Bridge Fund–Bulawayo Turn Off-Beitbridge Border Dualisation, Beitbridge-Bulawayo-Vic Falls reseal and the VID Depot Project.
- Road Access Fund–Sangano Drift, feasibility studies, purchase of vehicles and furniture and equipment.
- Number Plate Fund – works at the Transport Management Centre – security fence, leveling of ground and designs for office block.
Post Budget Analysis Meeting Output
Your Committee duly held a post budget analysis meeting with
Ministry officials and departmental heads led by the Permanent Secretary on Tuesday 17th January 2017 with a view to assessing the adequacy and relevance of submissions for the 2017 National Budget. The following issues were observed:
Your Committee noted with concern the lack of integration of the transport management systems of the Ministry’s departments and parastatals resulting in variations, inefficiencies and incessant revenue leakages.
Your Committee also observed that bulk goods continue to be wholly transported by road side-lining the NRZ despite existence of some capacity. This implies loss of potential revenue by NRZ as well as reduced shelf life of the rehabilitated roads. The NRZ can tremendously benefit from the transportation of the 30 million metric tonnes of chrome and the 700 000 metric tonnes of maize. If the NRZ was to transport these quantities in whole, it would get potential revenue of US$2.1 billion from chrome and US$210 million from maize, respectively.
However, given its existing capacity, if the NRZ is guaranteed at least
10% of local bulk contracts, its revenues would significantly improve.
In 2014, Treasury introduced 40% duty on bus imports with a view to protect local assemblers. However, this policy resulted in local operators of luxury buses not assembled in Zimbabwe resorting to registering their buses in neighbouring countries. While Treasury has proposed to ring fence the import of 30 luxury buses at the reduced import duty of 5% for 2017, the Zimbabwe Passenger Transport Organisation (ZPTO) hinted that the country needs an estimated 3,000 coaches with only 1,500 coaches available at present. In light of this, they are seeking an upward adjustment from 30 to 100 buses for 2017. However, local bus manufacturers would like the 40% duty to remain in force as it allows them to remain competitive against relatively cheap imports. After deliberations, an understanding was reached that local manufacturers can grow their capacity if government, schools and ZUPCO buy from them.
Furthermore, local bus assemblers indicated that they feel shortchanged by their suppliers who are financing local operators and allowing them to bypass local agents and buses buy direct thus prejudicing them of potential revenue and rendering their distributorship ineffective and unnecessary. Your Committee advised the local manufacturers of the need to put in place watertight contracts with their suppliers.
The Zimbabwe Building Contractors Association (ZBCA) raised concern over the limited participation by local professional contractors in PPPs and BOTs, a case in point being the Plumtree-Mutare highway widening. Furthermore, even local institutions such as universities are using building brigades instead of qualified personnel resulting in substandard work of questionable quality. This is negatively affecting capacity utilisationin the construction sector which currently stands at a paltry 2%. The ZBCA is calling upon Government to award them contracts to complete specific outstanding Public Sector Investment Programme (PSIP) projects whose progress has been stalled by lack of finance. They advised your Committee that the association has engaged a consultant, Dr. Nigel Chanakira, a finance expert, who is facilitating the structuring of joint venture deals worth US$1 billion meant for the financing those projects. The contractors will then recover their money through tolling before handing over the projects to Government.
Your Committee observed that despite other parastatals charging Government for services such as car hire (CMED), water (ZINWA), electricity (ZESA) and telecommunication (Telone and Netone); the Ministry is not collecting road user fees from Government vehicles. The officials advised the Committee that statutory provisions to that effect are already in place. However, they have a clause which gives the Government respite until it has sufficient resources. Nevertheless, it is the strong feeling of your Committee that Ministries provide for road user fees in their budget submissions like any other expenditures such as water and power.
It was also brought to the attention of your Committee that despite the Government directive that Government officials use Air Zimbabwe for external travel; the measure would not derive the intended benefit since the airline is not registered with IATA due to an outstanding US$3.5 million in fees. Consequently, the national airline is hamstrung in the number of routes that it plies. Furthermore, the non-registration with IATA also works against the open skies policy being pursued by the airline. Opening the airline to competition whilst it is hamstrung will only drive it to extinction.
Your Committee also enquired on the status of the rehabilitation of the airport radar systems. The officials informed your Committee that progress had been delayed by legal processes that nullified the previous tender award. The Committee was assured that a call for tenders for both financing and rehabilitation of the radar systems will be made this year.
Your Committee raised concern over the fact that all the 8 provincial road engineers (PREs) are in acting capacities despite the multi-billion dollar projects and tender processes that they preside over. The Ministry clarified that the incumbents do not have the required number of years of service in order to be made substantive and it had also failed to attract qualified candidates, locally and from abroad, owing to uncompetitive remuneration packages. The committee responded by imploring the Ministry to approach the Public Service Commission (PSC) with a view to making them substantive under a special dispensation as they cannot continue administering huge projects of national importance while in acting capacities. The situation is unacceptable.
Concern was also raised on the potholes along the BulawayoVictoria Falls road. Your Committee was advised that Treasury had allowed the Ministry to use US$2 million from the New Limpopo
Bridge Fund to reseal the Beitbridge–Bulawayo–Victoria Falls road.
Nevertheless, it is the general observation of your committee that the country’s national roads are in a deplorable state as they are riddled with potholes, the situation being exacerbated by the incessant rains. Urgent rehabilitation works are needed to prevent unnecessary loss of
lives.
Summary of Recommendations
Your Committee recommends that the Ministry should ensure the full computerisation and integration of its transport management systems linking driving schools, VID, ZINARA, RMT, TSCZ, CVR, ZIMRA and the ZRP to root out variations, plug revenue leakages and increase efficiency. This alone can improve the revenue collection of these departments more than threefold as was the case with ZINARA on toll gates and TSCZ on the 12.5% of third party vehicle insurance.
Furthermore, your Committee also recommends that ZINARA and the Insurance Council of Zimbabwe (ICZ) take over the collection and administration of Third Party Vehicle Insurance. This will greatly improve revenue collection and plug leakages in this multimillion-dollar sector.
Your Committee proposes the commercialisation of the VID in the future through introducing the inspection of private motor vehicles. This is in line with regional best practices (Zambia, Namibia, and South Africa).
Currently, inspection is limited to public service vehicles (PSVs) only with US$18 million is being realised from fees charged at US$25 and US$20 per heavy and light vehicles, respectively, in line with SI 134 of 1998. If introduced, inspection of at least 1 million private vehicles at the 2014 approved rates of $40 per light and $50 per heavy vehicles, which had not been effected yet, will raise an estimated US$90 million.
This figure combined with US$5 million from Learners Licence Tests, US$6 million Drivers Licence Tests and US$25 million from PSV inspections will raise the revenue by 600% to US$126 million.
Furthermore, your Committee proposes the merger of ZINARA and VID, as the two organisations can leverage on synergies with quick wins in activities such as enforcement of laws regarding overloading, unlicenced vehicles, road-user-pay principle, transit coupons, fuel levy, unroadworthy vehicles, unlicenced drivers, garage inspections etc. It is important to note that the two entities are already collaborating on some of these activities.
However, such linkages need to be harnessed to remove duplication thus enhancing operational efficiency and creating a robust organisation capable of generating more revenue to support infrastructure and road network preservation and rehabilitation. The strategy does not require a bill but political will and a Statutory Instrument, if need be, for ZINARA to absorb the Inspectorate staff of VID.
Your Committee also recommends that road access fees be increased from the current US$10 to the SADC standard rate of US$20 for all foreign vehicles and vehicles entering the country.
In light of the failure to access the US$147 million from
Development Bank of Southern Africa (DBSA) meant for the NortonKadoma dualisation project (which was to be repaid through a fuel levy on petrol and diesel, charged at US1 cent and US2 cents, respectively); Your Committee proposes that we unlock value in money held in the Maintenance Reserve Account for the Plumtree-Mutare highway by using it as collateral in sourcing finance for the aforementioned dualisation project. Currently, the fund has accumulated to the tune of
US$32 million and keeps growing as its use will only begin after 2027.
The Committee recommends the promulgation of a Statutory Instrument directing mine houses and other companies to move at least 10% of their goods by rail.
Your Committee recommends that ZUPCO, Government Ministries and schools buy buses from local manufacturers. Local manufacturers are advised to negotiate better deals with their partners so that there are no direct sales to Zimbabwean operators like is the case with local agents for Scania South Africa. The local bus manufacturers should also be included in the special economic zones (SEZ) to enhance their business which should take advantage of the tax incentives offered in those geographical areas.
Furthermore, given the gap between required and available coaches, the Committee proposes that the 30 bus cap on import of luxury coaches be removed and an import duty of 5% be extended to all other buses not assembled in Zimbabwe. This ensures that the practice of registering buses in South Africa, resulting in loss of potential revenue to Zimbabwe, will come to a halt. Your Committee also recommends that the 5% export incentive be extended to cross border buses where documented records of banked money derived from the business of imported passengers exist.
Your Committee recommends Government quantifies outstanding PSIP projects to the tune of US$1 billion and award them to local contractors under the Zimbabwe Building Contractors Association (ZBCA). The Association, through joint ventures with foreign partners, will finance and complete the project then recover their money through tolling before handover to Government.
The Zimbabwe Institution of Engineers (ZIE) and the Engineering Council of Zimbabwe (ECZ) must be involved in all national projects for quality assurance and the 5% due to the ECZ should be remitted so that they carry out proper monitoring and evaluation of national projects beginning with the Beitbridge–Chirundu highway project.
In line with Government’s thrust towards indigenisation and empowerment of local entrepreneurs, it is imperative for the Ministry to ensure that locals participate fully in any infrastructure development projects, beginning with the dualisation of the Beitbridge- Chirundu highway. Failure to do so, as prevailed during the rehabilitation of the Plumtree-Mutare highway, will not only disempower indigenous business people and result in capital flight through foreign-owned companies, but will ultimately impoverish the country. Furthermore, your committee recommends that in the Beitbridge–Harare highway project, 40% be reserved for local contractors as 80% of all raw materials used in road construction are locally available. For all projects with national status, the Committee also proposes that there be tax/duty exemption for local contractors and suppliers. This was seen as the reason for local suppliers being more expensive than the main contractor for the Victoria Falls Airport rehabilitation.
Government vehicles should be made to pay road user fees, with immediate effect, in the same manner that Ministries pay for all other
utilities.
Your Committee recommends that a 15% tax be levied on the value of gross extracted resources for the rehabilitation of roads leading to mines and around mining communities. Furthermore, 15% of the land tax should be reserved for road rehabilitation. This is against the background of roads being destroyed by bulk transportation of mining and agricultural products with no compensation at all. A few cases in point are:
- The depletion of the US$206 million DBSA loan-financed
821 km Plumtree-Mutare Highway at the 134 km peg, by
RioZim, before it has even been commissioned;
- An estimated 100 km of the Lupane-Nkayi road destroyed by
Hwange Colliery; iii. An estimated 100 km of the Tanganda-Chiredzi highway destroyed by Green Fuel resulting in a 30-minute journey taking 4 hours; iv. Open cast mining by Break Ridge (formerly ACR) at the 40km peg of the Kadoma-Mamina road has completely cut off the road and people have to find alternative roads.
- Zimplats inherited 85km of road from BHP but further than that, they have depleted all the roads which culminated in a family of 7 perishing in a low-lying bridge in the Zimplats mining area. The mining company could have raised that bridge.
Proceeds from parking fees and roadside billboard advertising should also be used for road rehabilitation.
While the filling of potholes is applauded, there is need for quality control to ensure that resources are not lost in constant refilling and rehabilitation.
Given the unnecessary loss of lives due to road carnage at a rate of 5 deaths and 38 injuries per day, Your Committee is also proposing the establishment of Accident Victims Stabilisation Centres (AVSCs) at toll gates. This is necessitated by the fact that road traffic accidents (RTAs) are having an estimated 70% mortality due to lack of proper pre-hospital emergency care, and almost 30% of those being transported from the accident scene die before reaching a place of definitive care. In most cases, it takes more than 2 hours in general yet the first hour after the accident is the most critical for stabilising victims.
Furthermore, the central hospitals are overwhelmed emergency cases. For example, Mpilo Hospital attends to an average of 150 road traffic accident (RTA) victims per month in addition to nearly 3000 other emergency cases. In light of this, pre-hospital care at the proposed
Accident Victims Stabilisation Centres will go a long way in saving lives. Standardized Emergency Care reduces the severity and length of required rehabilitation from 18 months to 3 months, thereby being very cost effective. Your Committee proposes that the initiative be financed by the Traffic Safety Council of Zimbabwe by allocating 4.5% of the
12.5% collected from third party insurance.
Road Traffic Accidents Statistics (Zimbabwe)
2010
TOTAL |
2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
CRASHES 26841
TOTAL |
30985 | 30911 | 37619 | 41016 | 41494 | 38606 |
KILLED 1796
TOTAL |
2001 | 2094 | 1787 | 1692 | 1762 | 1700 |
14336 15305 14965 14131 14010 12822 11392 INJURED
Your Committee recommends that Air Zimbabwe and the National Railways of Zimbabwe also benefit from the 5% export incentive on external revenues repatriated and banked in Zimbabwe.
Your Committee recommends that PPPs be adopted for toll gate and weigh bridge construction since they do not entail any government financial outlay.
The Committee proposes that the money allocated towards the liquidation of outstanding certificates for work done by local contractors be disbursed in full.
Above all these, your Committee strongly feels that since all these recommendations are for the 2017 financial year, it is critical that they be implemented expeditiously and not encroach too much into the year. In light of this, your Committee recommends that implementation should be in effect by end February 2017.
Furthermore, if all the measures proposed by your Committee are adopted, it is estimated that the parastatals and departments under the Ministry can raise an estimated US500 million. In this regard, your Committee requests that a large portion of these funds be ploughed back for the recapitalisation of these departments.
Conclusion
From the aforementioned submissions, it is clear and irrevocable that the transport and infrastructure sector provides a latent source of domestic revenue, employment creation and sustainable development for the Government and people of Zimbabwe. However, this low hanging fruit can only be plucked and harvested for the greater good of the Zimbabwean citizenry, if the gaping holes through which the muchneeded revenue continues to leak like a sieve are well and truly plugged.
The huge strides made in the development of information and communication technologies have provided a unique opportunity for the parent Ministry to harness ICTs, automate all transport management systems and ensure that all revenue is properly accounted for. The dark, laborious days of manual processes and dependence on the integrity of an individual, have given way to the beaming light of incorruptible computer-aided revenue collection. The onus is on us, therefore, to take advantage of the opportunities that technology provides to spur the economic revival of this great country. We owe to it to the electorate, we owe it to posterity and we owe it to ourselves.
Integration Diagram 1
Integration Diagram 2
HON. MANDIPAKA: Thank you Hon. Speaker. I am going to be dealing with four Ministries that are: - Ministry of Defence and Home
Affairs; Ministry of Sports and Recreations, Ministry of Primary and
Secondary Education.
THE TEMPORARY SPEAKER: Order, Order! ADI9064 is
blocking the bus of those students who in here. Could you please go and remove the vehicle.
HON. MANDIPAKA: Thank you Mr. Speaker.
Introduction
- 1.1 The Committee on Defence and Home Affairs has an oversight role over the Ministries of Defence and Home Affairs. During the 2016 post-budget review, your Committee analysed the budget allocations for the Ministries of Defence and Home Affairs and also received oral submissions from the Ministries’ officials.
Several observations were made from the budget allocations about the
Ministries’ funding needs and gaps, and the subsequent performance implications of the budget allocations. These observations culminated into some recommendations to improve the operational efficiency of the Ministries so that they meet their Constitutional and Statutory obligations. Below is the economic analysis of the allocations to each
Ministry.
MINISTRY OF HOME AFFAIRS VOTE 18 ($364,308,000)
1.0 Mandate of the Ministry
1.1 The Ministry of Home Affairs is responsible for a number of core duties which are:
- Promoting a secure and conducive environment through maintenance of law and order,
- Combating corruption,
- Managing migration,
- Ensuring timely registration and issuance of secure registration documents,
- Regulation of gaming and entertainment activities and Ø Provision of forensic science services.
1.2 The Ministry is made up of one support department (Administration and General) and technical departments namely:
- Zimbabwe Republic Police (ZRP).
- Registrar General,
- Immigration Control and
- Forensic Science.
2.0 The Ministry’s achievements during 2016
Major achievements during the 2016 financial year were as follows: Commissioning of self sufficient passport production centre.
- Cascaded e-visa platform to 14 stations on wide area network.
- Reducing short term permit processing and issuance time from 2 weeks to within five days.
- Installation of Queue Management System at 3 provincial offices.
- Installation of bio-environment capturing booths at 10 registration offices.
- Successful coordination of National Heroes Commemoration.
- Successful hosting of Joint Permanent Commission.
- Maintenance of law and order.
3.0 Policy Priorities for 2017-2019
The Ministry’s major policy priorities for the period are:
- Debt clearance for the Ministry,
- Fully equip and operationalise the new offices for the Registrar
General and Immigration Control departments,
- Acquire CDMA communication service for ZRP,
- Computerise and link all border posts,
- Operationalising the Automated Fingerprint Identification System
(AFIS),
- Fully utilise and maximise production on ZRP farms in each province,
- Equipping the Forensic Science laboratory.
- Completing the following prioritised projects namely:
- Central Registry Office sand
- CID Headquarters.
4.0 Global Overview and Analysis of the Ministry’s 2017
Budget
4.1 The Ministry was allocated $364,308,000 and is ranked second in the order of national priority allocation. However, this allocation is $39,417,619 lower than the 2016 budget allocation. Thus, outstanding expenditure items from 2016 financial year may not be covered in 2017 thereby paralysing the Ministry’s operations.
The reductions in allocation are represented in a table as follows:
Expenditure item | 2016
Allocation |
2017
Allocation |
Percentage decrease |
Recurrent | 0. $19,020,000 | 1. $16,400,000 | - 14% |
Priority
Programmes |
3. $6,400,000 | 4. $4,000,000 | - 37.5% |
Operations | 6. $900,000 | 7. $600,000 | - 33% |
2.
5.
This clearly shows that the 2017 Budget is grossly inadequate to at least sustain the basic requirements and inescapable expenditure items for the Ministry.
4.2 From the global allocation of $364,308,000 a huge sum amounting to $339,118,000 (translating to 93.1% of the total allocation) caters for employment costs in the whole Ministry leaving a paltry balance of $25,190,000 for operations (this is only 6.9% of the
Ministry’s total allocation for 2017). The balance left for operations and programmes is thus by far inadequate to fund the Ministry’s priority expenditure items, implying that more operational challenges will be faced in 2017 than the 2016 financial year.
4.3 Also important to note is that the Ministry has outstanding payments for both recurrent and capital expenditure and these are waiting for cash releases from Treasury amounting to $1,213,289.53. From this total amount ZRP has outstanding payments amounting to
$429,968 required to settle bills for Zimbabwe International Trade Fair ($60,000), Heroes Commemoration ($20,000) and procurement of uniform material ($349,968).
Moreover, the ZRP alone has another outstanding debt amounting to $63,000,000 owed to service providers like ZESA, ZINWA and TELONE and it dates back to the year 2009. The debt has since tarnished the image of the Ministry and working relations between the Ministry and service providers. This has negatively affected the capacity of the Ministry to acquire other goods and services on credit and will grossly paralyse the Ministry’s operations in 2017 hence requires
attention.
4.4 The Ministry has two high priority projects which were not completed during the first half of 2016 due to non-release of funds and unavailability of the right materials for their completion. These projects include the CID headquarters and Central Registry building. Central Registry building is yet to be occupied because there are some outstanding works yet to be done such as network cabling for the Public Finance Management System (PFMS). The 2017 allocation has no provision for these important expenditure items.
4.5 In addition ZRP has targeted to purchase and install a search engine for an Automated Fingerprint Identification System (AFIS) so that the force can move away from the less inefficient manual system. A total of $9,600,000 is needed for that but Treasury allocated a paltry $4,200,000 which is inadequate hence the search engine will not be purchased, and the AFIS cannot be operationalised.
4.6 Following violent protests and abuse of social media networks ZRP initiated CDMA Trunked radio project in 2014 to avoid interrupted communication and to lower the cost of communication service rendered by private sector players. This needs to be completed before 2018 General Elections. However, your Committee noted that this project was not prioritised in the 2017 budget allocation despite the long lag time required to implement it.
4.7 The Forensic Science laboratory which is housed in the CID headquarters needs to be fully equipped with modest technical equipment and chemicals, all of which are very expensive. Out of a bid of $3,200,000 needed to cover initial capital equipment Treasury allocated only $400,000 which is grossly inadequate. The capitalization of the Forensic Science laboratory is important since it helps to bring tangible evidence in cases which require forensic science investigations. This is also important to clear the backlog of such cases like murder and rape filed in ZRP and the courts of law. The costs of outsourcing services for DNA tests will also be reduced.
4.8 Similarly, the Immigration Department needs to install iris scanner at all major ports and fully computerise the ports to reduce revenue leakages. However, such expenditure items cannot be financed given that immigration is still under the $100,000 retention fund allocation which is inadequate.
4.9 It was disturbing to note that Treasury proposed to exclude expenditure items such as purchase of motor vehicles as well as travel and subsistence from items financed by retained revenue. However, these expenditure items are very important to the Ministry especially in ZRP and Immigration Departments which are very mobile but were grossly underfunded for several years. Furthermore, given the dilapidated state of the fleet of vehicles in the Ministry, their mobility still remains a challenge given that the country will prepare for the 2018
General Elections.
4.10 In order to finance other welfare items, the Ministry prioritised to fully utilise all its farms but requires adequate farm implements. ZRP had bidded for these farm implements but were not allocated anything despite being promised to get them from the
Ministry of Agriculture, Mechanisation and Irrigation Development.
4.11 Your Committee was disturbed to learn that 527 new ZRP graduates went without pay since June 2016 despite the fact that they were recruited within the approved establishment. This situation has resulted in the Ministry looking for funds from amenities to pay the ZRP graduates – a situation which is not sustainable.
4.12 Your Committee noted that travelling and subsistence are very critical expenditure items to the Ministry but were not included in the Vote and no allocation was made to that effect.This is despite the importance of this expenditure item especially given that Zimbabwe is a signatory to international conventions that have to do with money laundering and suppression of terrorism (like the Eastern and Southern
Africa Anti-Money Laundering Group (ESAMLAG), Electronic Funds Transfer (EFT)meetings and Joint permanent meetings which the country has to attend. To this end, travel and subsistence become inescapable especially with the ever-increasing security threats internally and externally.
4.13 The ZRP had proposed a proactive crime prevention programme which had a total bid amounting to $72,900,000 but Treasury allocated only $12,000,000 to cater for that programme. Thus the Police Services are likely to be reactive to matters instead of being proactive.
4.14 It was learnt that the Ministry is expected to raise a total of $87,591,300 as retention fund to finance part of its operations. Although the idea is rational, this target can be missed resulting in further operational challenges. The limited financial envelope is exacerbated by the non-release of allocated funds by Treasury which has been the norm for years.
5.0 Recommendations
In view of the above observations, your Committee made the following recommendations:
- All funds allocated should be timeously released to facilitate timely planning and smooth operations of the Ministry. ii. Treasury should take over the debt and arrears owed to service providers like NETONE, ZINWA, TELONE and ZESA.
Furthermore all outstanding payments should be prioritised and processed.
iii. Special attention should be given to Forensic Science laboratory which require specialist equipment. The laboratory should be fully equipped since it will help to cut costs of outsourcing its services. iv. High impact PSIP projects which are earmarked for 2017 should be prioritised and fully funded. These projects and programmes are:
- Installing network cables for PFMS system at Central
Registry Offices,
- Secure and installation of the search engine for the Automated Fingerprint Identification System so that it can be operationalised,
- Implement the CDMA Trunk radio to ensure uninterrupted communication by the security forces,
- Fully automate and computerize all the ports of entry and exit with computers and iris scanners for accurate identification and to reduce criminal activities such as illegal migration, money laundering and revenue leakages.
- Treasury should reconsider its decision to exclude the purchase of vehicles as well as travel and subsistence from being financed by retained funds. Instead, these expenditure items should be prioritised and should be adequately funded since they are inescapable.
- Treasury should consult the Ministry and find a strategy to operationalise the proposed proactive crime prevention programme since it is an important security measure.
- Treasury should not expect the Ministry to cover its inescapable items using retained funds since these funds may not be fully raised as expected.
- Farm implements and other required inputs should be availed to the Ministry so that production is maximised and the income and output generated from the farm would cater for other welfare issues in the Ministry.
- New Police graduates in the Ministry who went without salaries should be included on the payroll and get paid all their outstanding salaries.
MINISTRY OF DEFENCE – VOTE 4 ($340,522,000)
2.1 The Mandate of the Ministry of Defence
The Ministry is mandated to:
- Ensure the country's territorial integrity and sovereignty over the land and air space against both internal and external aggression.
- Provide rescue assistance to civilians in times of disasters.
- Promotes international peace and security through participation in peace-keeping missions.
2.2 Major achievements during 2016 The Ministry managed to:
- Utilise the resources disbursed effectively and within time thereby improving on internal capacities and efficiencies.
- Achieve its constitutional mandate and statutory obligations.
2.3 Policy Priorities 2017-2019
The Ministry’s major policy priorities are:
- Meeting the constitutional and statutory obligations which cover rations, uniforms, medical care and accommodation,
- Maintaining existing Defence Forces equipment and facilities,
- Re-equipping, refurbishing and upgrading Defence Forces’ equipment and facilities,
- Training of military personnel,
- Research and development,
- Transforming the National Defence College into a University, and Ø Implementing the risk management policy.
3.0 Global Overview of the Ministry’s Budget
3.1 The Ministry is made up of Civil Service personnel and the Defence Forces Headquarters. The Defence Forces Headquarters consists of the Army (ZNA) and Air Force services (AFZ).
3.2 The Ministry was allocated a total amount of $340,522,000 of which $292,492,000 cover employment costs leaving only
$48,030,000 for other programmes. This allocation of
$48,030,000is only 15% of the ideal requirement of $320,000,000 which was bided for to cater for the critical prioritised expenditure items of the Ministry. This is gross underfunding considering that 85% of these critical expenditure items were not allocated any funds during the 2017 financial year.
3.3 The Ministry’s total requirements and allocation are broken down as follows:
Department | Total Bid | Allocation | Variance |
Administration and General | $25,000,000 | $9,800,000 | $15,200,000 |
Zimbabwe National Army (ZNA) | $115,000,000 | $27,400,000 | $87,600,000 |
Air Force of Zimbabwe (AFZ) | $180,000,000 | $10,800,000 | $169,000,000 |
TOTAL | $320,000,000 | $48,000,000 | $272,000,000 |
This allocation is giving the Ministry a serious challenge since its priorities cannot be half-funded because of the complementary nature of the activities.
3.4 Your Committee noted with concern that the Ministry accessed only $38,450,000 out of the total allocation of $48,830,000 in 2016. This resulted in the Ministry incurring carryovers amounting to $51,650,000.
3.5 The Ministry has constitutional and statutory obligations to cover rations, uniforms, medical care and institutional accommodation. Under this expenditure item, Administration and General
Department was allocated only $3,000,000 which is just 50% of its total requirement. ZNA was allocated only $6,200,000 from its actual bid of $95,000,000 to cover rations only. With this $6,200,000 it means that each soldier has to use $0.40 per day which is far below the ideal ration scale stipulated in the Quarter Master General Standing Order (QMGSO) of $17.00 per soldier per day. The Ministry incurred a domestic debt of $1,840,000 on rations in 2016 in order to avoid starving the Forces, but it is clear that the 2017 allocation cannot service the debt.
3.6 The Air Force of Zimbabwe failed to fully meet some of its statutory and constitutional obligations due to underfunding and non-release of funds and hence accumulated a total debt amounting to $61,524,902.97 in previous years. This debt includes the carryovers amounting to $143,251.61 incurred by Air Force of Zimbabwe to provide uniforms which were and are in a deplorable state thereby tarnishing the image of the organisation. In addition
the AFZ failed to pay for medical services for its members – a situation which reduces the productivity, motivation and efficiency of the Forces. Your Committee was disturbed to learn that the $10,788,000 allocated for operations cannot fully cover the debt, thus compromising the planning and execution of duties by the Ministry.
3.7 Military procurement is one expenditure item which forms the backbone of the Ministry. There is an urgent need for serviceable military equipment, combat vehicles, self-propelled artillery weapons, arms and ammunition to improve internal capacity and efficiency of the Forces. However, your Committee noted with concern that the total capital expenditure funds released have never exceeded 10% of the allocated funds for the past three years. The $1,570,000 allocated for military procurement is just 5.4% of the total requirement of $29,000,000.
3.8 The Ministry is relying on its old stock of assets and equipment (both movable and immovable) to carry out its operations. Given that these assets are very old, their maintenance costs are very high. In case of vehicles the fuels, oils and lubricants form an essential component of maintenance. However, it was disturbing to note that the allocation to this expenditure item has continued to decline in the past three years. The ideal requirement is at least $800,000 per month but it was allocated $1,700,000 for the entire
- The Ministry has been relying on few selected service providers who agreed to supply services on credit but this cannot be guaranteed in 2017.
3.9 AFZ has not been supported on maintenance and capital acquisition for the past three years- a situation which has seen most assets and equipment depreciating beyond repair. Currently, AFZ is operating with aircraft which has limited life span due to infrequent service and this affects duties such as fly pasts, search and rescue operations and training. Most of the aircraft require total engine overhaul and this is very costly. Ideally the AFZ requires $16,000,000 for aircraft maintenance and $23,700,000 for the overhaul of AFZ platform but only $2,020,578 was allocated. This allocation cannot adequately fund the technical maintenance and engine overhaul of aircraft.
3.10 ZNA has high impact projects which have remained incomplete for the past three years, and some of them are at risk of collapse before completion. These projects are:
- The Zimbabwe Military Academy Cadet accommodation,
- Dzivarasekwa Housing Units,
- 52 Infantry Battalion houses, iv. 42 Infantry Battalion sewer system.
A total of $3,530,000 was allocated for selected ten projects against a requirement of $13,450,000 for fifteen PSIP projects which were prioritised for 2017. Similarly, AFZ has eleven activities on Manyame Air Base, Field Air Force Base and Thornhill Airbase which have to be executed in 2017. Despite the insufficient funds amounting to $1,172,000 allocated for these projects, it will be appreciated if the allocated funds to various projects are fully released in time.
- Training and human capital development is one of the critical components and a priority item for the Ministry especially during time of peace. Thus it is important to adequately fund teaching, training material, upkeep of training facilities and maintenance of ranges. AFZ was allocated $715,000 against the requirement of $7,300,000 and ZNA was allocated $155,000 against the required amount of $317,264. This inadequate funding poses a risk to the organization.
- The Ministry has operations which form part of its constitutional mandate. These include search and rescue operations in times of floods, fly pasts for Zimbabwe International Trade Fair, Independence celebrations, Heroes and Defence Forces Day celebrations, Harare Agricultural Show, VVIP and VIP tasks. The allocation of $10,788,000 is far below the department’s carryovers of $61,524,902.29 giving a negative variance of $50, 735,902.27.
- The Ministry has outstanding programmes that include completing the demining exercise which has missed several deadlines and extensions prescribed in the Ottawa Convention. Your Committee noted that the Ministry has been relying on donor funds to undertake this exercise.
5.0 Recommendations
After an analysis of the Ministry of Defence’s budget by your Committee, the following recommendations were made:
5.1 Treasury should prioritize adequately funding major expenditure items such as institutional provisions which include uniforms, rations, medical services, accommodation, training and development expenses.
5.2 Expenditure items that result in increased internal capacities and efficiency of the Ministry must be fully funded. These are:
- Servicing the Defence Force’s vehicles and other mobile equipment,
- Maintenance and servicing of the Force’s aircraft,
- Engine overhaul for the aircraft.
- Having failed to meet the January 2015 Ottawa Convention Third Extension Deadline, Treasury should fully and urgently support the completion of the demining programme. These land mines are
causing serious injuries and deaths to people, livestock and wild animals in the affected areas. The land could be used for other economic and social activities like agriculture and mining had it that there are no land mines. Other programmes that require adequate funding include search and rescue operations in times of floods, fly pasts for Zimbabwe International Trade Fair, independence celebrations, Heroes and Defence Forces Day celebrations, Harare Agricultural Show, VVIP and VIP tasks
- Treasury should target fully funding the completion of housing and other PSIP projects which have high impact for the Ministry in the long run. These projects are: Ø Dzivarasekwa Housing Project,
- Zimbabwe Military Academy Cadet Accommodation in Gweru, and
- Procurement of new state of the art security equipment.
In that same vain other high impact projects must be targeted for 2017 and a special Fund should be created so that there is accelerated progress towards their completion. These are:
- 52 Infantry Battalion Housing project,
- Rehabilitation of Sewer Systems at 42 Infantry Battalion,
- Construction of R31 Flats at Field Air Force Base,
- Repair of hangers, hard stand and taxiway,
- The Manyame Air Base.
- There is need to urgently and fully avail targets to facilitate smooth operations of the Ministry. This should also involve consulting with the Ministry’s officials about the targeting of expenditure and timing of releases to cover such prioritised expenditure items to avoid carryovers.
- Treasury should take over the Ministry’s outstanding debt so that operations earmarked for 2017 are better funded.
- A Projects Fund must be created so that the Ministry becomes selfsustained and reduce continued dependence on the fiscus for expenditure items such as rations and other projects where low cost and high impact alternatives are available. In this regard, Treasury should fully support the Defence Force’s agricultural activities and other income generating projects.
6. Conclusion
The Committee implores the need for the Ministry of Finance and Economic Development to identify inescapable and high impact expenditure targets so that these can be fully funded. This calls for the need for close cooperation and consultation between Treasury and the respective Ministries to identify the funding needs, gaps and special priority areas. It is imperative that when Treasury adopts such innovative measures to cut costs, respective Ministries should also implement cost efficient strategies and find revenue generating activities with the support of Government.
Primary and Secondary Education, here are the recommendations:-
- The Ministry must present monthly and quarterly budget reports to the Portfolio Committee as is required by the Constitution.
- Budget allocations to Ministries must exclude employment costs as this clouds judgment in terms of allocation towards the operational budget
- All employment costs to be channeled through the employer that is the Ministry of Public Service, Labour and Social Welfare.
- Meaningful funding is required for primary and secondary education as it is the foundation stage of human capital development and social molding.
- Progressive building of offices will in future eliminate the rental expense given the large amount budgeted for rentals which is US$1 774 000
- Exploration of joint ventures and partnerships in school construction to ease pressure on the treasury
- The BEAM facility should be administered in our view through the Ministry of Primary and Secondary Education to ensure resources are channeled where they are needed most.
Recommendations on the Ministry of the Sports and recreation are as follows Mr. Speaker Sir:-
- Treasury must finance all national teams and not leave the responsibility to well-wishers.
- Ministry of Sports and Recreation must liaise with Ministry of Home Affairs on the issue of lottery fees as these funds are more suited to sport and recreation.
- The Ministry of Sport and Recreation should liaise with the local authorities on possible collaboration on use and maintenance seemingly idle community facilities for advancement of the Sport and Recreation agenda.
- There is need to preserve open spaces in light of land uptake for construction purposes to allow for sport and recreation activities to take place in various communities in the country
- The Ministry of Gender and Women’s Affairs can be approached by the Ministry of Sports and Recreation so that some ward based sport and recreation coordinators can be done through gender offices.
Hon. Speaker, those were the recommendations for the Ministries, I thank you.
THE TEMPORARY SPEAKER: Thank you very much Hon.
Mandipaka, you have done very well on time management.
HON. MUKUPE: Thank you Mr. Speaker for giving me the opportunity of showing the less learned how to make recommendations.
So my report is on the Portfolio Committee on Industry and Commerce Vote 7 of the 2017 Post budget analysis.
Introduction
The Ministry of Industry and Commerce's major mandate is to provide a conducive environment for economic growth and development through sustainable industrialisation and trade. The State Enterprises under the Ministry’s purview are: Industrial Development Corporation,
Zimbabwe Iron and Steel Company, Zimbabwe International Trade Fair
Company, as well as, grant aided institutions which include: Consumer Council of Zimbabwe, Competition and Tariff Commission, National Incomes and Pricing Commission, Standards Association of Zimbabwe and ZimTrade.
In the Zimbabwe Agenda for Sustainable Social and Economic Transformation (ZIM ASSET), the Ministry has the task of making industry and commerce the engine for national economic growth and development. The Ministry therefore, focuses on implementing the Industrial Development and National Trade Policies which are aimed at reviving the manufacturing sector and accelerated industrialisation through value addition and beneficiation which are fundamental to Zimbabwe’s economic transformation.
2.0 Overview of the Ministry’s Budget
The Ministry of Industry and Commerce was allocated US$18,547,000, against a total bid of US$21 563 622 which translates to 86% of the total bid. The overall allocation to the Ministry increased from US$17 465 000 to US$18 547 000. Out of the US$17 465 00 Treasury had disbursed by October 2016, only US$7 433 876. Given the huge investment needed to revamp our industries, the allocation to the Ministry is not adequate to fund the important reforms, which are critical for reviving our industries which are the engine for growth and development.
3.0 Analysis of the economic classification of the Ministry’s Budget
Table 1: Economic classification of the vote
Budget Item | 2016 revised | 2017 | %change | proportion
2016 |
proportion
2017 |
Change in proportion |
Current expenditures | 5941000 | 5392000 | -0.09 | 34.01 | 29.07 | -0.15 |
Employment
costs |
2148000 | 2158000 | 0.004 | 12.29 | 11.64 | -0.05 |
Goods and services | 999000 | 945000 | -0.05 | 5.72 | 5.10 | -0.11 |
Maintenance | 115000 | 135000 | 0.17 | 0.66 | 0.73 | 0.11 |
Programmes | 675000 | 820000 | 0.21 | 3.86 | 4.42 | 0.14 |
Current transfers | 2004000 | 1334000 | -0.33 | 11.47 | 7.19 | -0.37 |
Capital | 11524000 | 13155000 | 0.14 | 65.98 | 70.92 | 0.07 |
expenditures | ||||||
Acquisition of fixed capital assets | 255000 | 355000 | 0.39 | 1.46 | 1.91 | 0.31 |
Lending and equity participation | 11269000 | 12800000 | 0.14 | 64.52 | 69.01 | 0.069 |
Capital transfers | - | - | ||||
Total | 17465000 | 18547000 | 0.06 | 100 | 100 |
According to the 2017 National Budget allocation the Ministry of Industry and Commerce budget for recurrent expenditure marginally decreased by 0.09% and capital expenditures marginally increased by
0.14%. The total budget to the Ministry also marginally increased by
0.06%. Recurrent expenditures constitute 29.07% of the total budget. Within the recurrent expenditures employment costs constitute the bigger proportion of total budget registering a proportion of 11.6% to total budget. Capital expenditure constitutes the bigger proportion of the total budget to the Ministry as it takes 70.1% of the total budget, leaving the remainder for recurrent expenditure. This shows that the budget is inclined to developmental issues. Capital expenditure allocation and disbursements are critical for the revival of the industries.
Lending and equity participation takes up 69.01% of the total budget allocated the Ministry and it constitutes 97% of the capital expenditures. This allocation, although inadequate will enhance the operations of the Industrial Development Corporation assuming the funds are released on time. No allocations were made for capital transfers in 2017 and this is not a welcome development to the Ministry because it is going to negatively affect its infrastructural development and capacity building. The following budget lines witnessed marginal increases in allocation
Employment costs 0.004%, Maintenance (0.17%), and Programmes
(0.21%). All the other budget items witnessed a decrease in allocation as follows; Goods and services (0.05%), current transfers declined by -
0.33%.
4.0 An Analysis of the Sub Budget Items
4.1 Goods and Services
The Ministry received US$ 945 000 for goods and services which include communication, foreign and domestic travel, institutional provisions, office supplies and other operational expenses against a total bid of US$ 2 425 565. The amount allocated for goods and services represent 39% of what the Ministry had proposed to Treasury. This entails that there is a shortfall of about 61% at allocation level before looking at disbursements. The financing gap will thus affect foreign travel requirement as the Ministry is involved in extensive international travel to participate in various core, unavoidable and non-optional meetings such as the SADC Trade Ministers’ meeting, SADC Council of
Ministers, ACP Trade Ministers, ACP-EU Joint Council of Ministers,
WTO Ministerial meetings, ESA Council of Ministers, SADCCOMESA-EAC Tripartite FTA meetings etc. Thus, the amount allocated to the Ministry for foreign travel will affect the effective participation of the Ministry at various meetings which are important for the growth of trade and creating a conducive environment for the private sector to do trade and investment initiatives.
4.2 Maintenance
The Ministry got 42% of the total bid which was made to the Treasury, and this translates to a variance of 58% allocation. Given the state of machinery and vehicles it means that the Ministry will find it difficult to maintain and repair vehicles, equipment and physical; infrastructure. However, the funds allocated are more than the ones allocated last year as the budget line registered a 0.17% increase for the
2016-2017 budget allocations.
4.3 Current Transfers
The Ministry of Industry and Commerce’s budget requirement for subscriptions including arrears to international organisations in 2017 is US$5 111 270 and Treasury allocated only US$ 1 354 000 which leaves a financing gap of US$ 3 757 270. The amount allocated is just 26% of the Ministry’s requirement for subscriptions to international organisations. In addition, the Ministry requested US$982 319 for the NIPC and NCC but was allocated US$ 161 000 for NIPC and for NCC there was no allocation made. The bid for subscription to organisations such as WTO, COMESA and SADC was US$3 863 251 and the
Ministry got a 23% allocation of the total amount bided for. As a result of the underfunding, the country will continue to accumulate arrears in respect of its obligations to international organisations.
4.4 Support to Grant Aided Institutions
There are some institutions under the Ministry purview for instance the Standard Association of Zimbabwe who were not allocated anything by the 2017 National Budget. Lack of funding to the State
Enterprises will greatly affect their operations.
4.5 Programmes
The Ministry received funding for programs in line with the budget which they had submitted. However, the resources are not enough to cover the budget requirements for the programs given that there was no room for the Ministry to determine the budget which they wanted to be supported for the programs. Treasury had given them the ceiling for programs cost which was not informed by the demands of the Ministry.
18. 4.6 Challenges
Generally the economy is going through phases which are negatively impacting on the ability of the economy to generate revenue to support the critical drivers of the economy such as industry and commerce. Some of the issues affecting the economy include: liquidity constraints, continued company closure, constrained fiscal space, mounting job losses amongst others.
5.0 Observations
Treasury is not timeously disbursing the allocated funds to the
Ministry and this has the effect of affecting the operations of the
Ministry in fulfilling its mandate;
The level of disbursements to the Ministry is not sufficient to meet the annual obligations for the Ministry to achieve its planned targets and goals;
There is need to ensure that the promises which was made of availing US$50 million by the Minister of Finance and Economic
Development is fulfilled in order to revive ZISCO;
Reviving ZISCO is a key priority for the country as it has lateral linkages with other industries and also it’s potential to create more employment to address the development challenges facing the country; The allocations to IDC which is in line with the call circular ceiling provided by the Ministry of Finance and Economic Development limits the Ministry in proposing developmental budgets which are ideal to support the revival and operations of these institutions;
The Ministry is accruing arrears of subscriptions to international organisations and this will limit the country's benefits from services provided by various trade organisations as some benefits are linked to subscriptions;
By allocating inadequate funds to IDC for lending to ailing industries, Treasury is indirectly allowing industries to collapse. If industry falls, revenue base falls and there is loss of employment. It is also important to note that shut down companies are difficulty to resuscitate. The Ministry is focusing more on value addition and beneficiation yet the industries are struggling with capacity utilisation;
6.0 Recommendations
- There is need to create an enabling environment for sustainable enterprises through addressing bottlenecks around investment, energy and power supply, and access to international markets and lines of credit;
- There is need to raise the US$50 million resources which are important for the revival of ZISCO;
- There is need to expedite the resuscitation of operations at ZISCO
Steel, a strategic entity for the country's economic recovery;
- There is need to ensure that Treasury should disburse resources in accordance with the budget which has been cut considerably against the budget bid which was presented by the Ministry;
- There is need for Government to come up with policies that promote foreign direct investment which is what the country requires at the moment to help resuscitate our ailing industry in light of liquidity challenges in the country;
- The industry needs to be restructured following years of economic decline and companies are using out-dated infrastructure. Even if more money is injected for capitalisation without the
infrastructure, domestic industry will not be competitive due to technical inefficiency;
- There is need for mobilisation of finance for industrial development in the country through tapping of new sources of funding such as pension funds;
- There is need to address the bottlenecks which are causing companies to close in Zimbabwe and even engage experts to document these reasons in view to proffer evidence based policy reforms to address the current challenges industries are facing for instance some of the issues are:
- Corruption
- High cost of doing business;
- Inefficiencies of key enablers;
- lack of affordable long term financing;
- labour reforms
HON. CHITINDI: Thank you Mr. Speaker Sir.
Introduction
The 2017 National Budget is anchored on the theme “Pushing
Production Frontiers Across all Sectors of the Economy.” The economy is expected to grow by 1.7% driven by agriculture which is also expected to grow by 12%. The Parliamentary Portfolio Committee on Lands, Agriculture Mechanisation and Irrigation Development has an oversight role over the Ministry of Lands and Rural Resettlement and the Ministry of Agriculture, Mechanisation and Irrigation Development.
The Ministry of Agriculture has ten key Sub Votes. The Ministry’s Vote is thus subdivided into these ten Sub Votes. The Ministry of Lands and Rural Resettlement has three Sub Votes. The Ministry of Agriculture has a mandate to facilitate a sustainable and viable agricultural sector by creating an enabling environment for food production to ensure food security in the country and provide raw materials for industry and the manufacturing sector. The Ministry plays a key role in the economic development of the country because of its backward and forward linkages with industry.
MINISTRY OF AGRICULTURE, MECHANISATION AND
IRRIGATION DEVELOPMENT.
1.1 Key Result Areas of the Ministry
The Ministry of Agriculture, Mechanisation and Irrigation Development has laid down its priority objectives for the 2017 Financial Year and these are:
- Crop and livestock production and diversification;
- Human Resource Developmen;t
- Agricultural mechanisation and irrigation development;
- Market access;
- Institutional Capacity Development;
- Coordination of the agricultural sector and;
- Policy, legal and regulatory framework;
- Crop and Livestock research and development;
1.2 Major achievements during 2016
During the 2016 Fiscal Year, The Ministry made the following achievements among others:
- Produced 400 Diploma and 500 Certificate holders from 8
Agricultural Colleges;
- Trained 50 young commercial farmers at Kushinga Phikelela and National Farmer Training College and 1000 in short courses at various colleges;
- Constructed 50 metal silos in Masvingo, Matabeleland North
Mashonaland East and West;
- 50 artisans, 120 technicians and 5600 extension workers were trained;
- Introduced four new maize varieties;
- Established 8 cotton varieties.
1.3 Ministry’s Policy Priorities for 2017-2019 The major policy priorities for the Ministry are;
- To increase crop and livestock productivity, production and development;
- To develop, rehabilitate and modernize irrigation research and development infrastructure;
- Market access;
- Coordination of the agricultural sector;
- Institutional capacity development.
2.0 The National Budget
The overall Budget Estimate for 2017 is projected at US$4 100 000
000, which has not shown any change from the 2016 National Budget. The Ministry of Agriculture, Mechanisation and Irrigation Development received an allocation of US$ 292 696 000, an increase of 101.73% from the previous allocation.. The top ten ranked beneficiaries of the National
Budget are shown in Table 1 below: Table 1: Ranking of the National
Budget according to Ministries
VOTE | GOVERNMENT ARM | US$ | PRIORITY/RANK |
15 | PRIMARY AND SECONDARY EDUCATION | 803 771 000 | 1 |
19 | HOME AFFAIRS | 364 308 000 | 2 |
4 | DEFENCE | 340 522 00 | 3 |
8 | AGRICULTURE, MECHANIZATION AND
IRRIGATION DEVELOPMENT |
292 696 000 | 4 |
14 | HEALTH AND CHILD CARE | 281 976 000 | 5 |
5 | FINANCE AND ECONOMIC DEVELOPMENT | 281 191 000 | 6 |
From Table 1 above, the Ministry of Agriculture, Mechanisation and Irrigation Development is ranked fourth in the overall budget allocations. This is comparable to the previous fiscal year where it was ranked the same. The Ministry’s overall allocation is 7.1% of the
National Budget which is a decline from the previous allocation of 8.3%. This is below the internationally accepted allocation levels for agriculture. This therefore means that in terms of real allocations the Ministry was given less preference in allocations. It will be difficult for the Ministry to achieve its set objectives for the fiscal year because of the inadequate funding allocated. The fact that the Ministry is ranked among the highest ten recipients in the budget shows its economic and social importance but due to the paltry allocation, the ranking will do little to impact positively on the role of the Ministry on food security and economic development. The Ministry has 6 key programmes whose allocations are shown in the Table 2 below.
Table 2. Programme Allocations for the Ministry
Programme | 2016 allocation
US$ |
2017 allocation
US$ |
Percentage change | ||
1.Policy and Administration | 83 081
450 |
231
450 |
641 | 178.8 | |
2.Agricultural Education | 2 038 550 | 1 550 | 431 | -29.78 | |
3.Crop and Livestock Research and
Technology Development |
8 683 | 000 | 8
000 |
582 | -1.16 |
4.Crop Production, Extension and
Advisory services |
19
000 |
599 | 21
000 |
142 | 8.09 |
5.Agricultural Engineering and farm
Infrastructure Development |
10
000 |
678 | 8
000 |
609 | -19.38 |
6.Animal Production, Health,
Extension and Advisory Services |
21
000 |
011 | 20
000 |
250 | -3.62 |
Total | 145
000 |
091 | 292
000 |
696 | 101.73 |
2.1 Vote allocations for the Ministry
The Ministry has ten major Sub-Votes and these are summarised in
Table 2 below and shows the changes of the Ministry’s allocations within its sub votes.
Table 3: Changes of allocations according to sub-votes.
2016 | 2017 | %change | |
Sub-Vote | Allocation | Allocation | |
Administration and General | 85 117 000 | 234 944
000 |
176 |
Division of crop research | 2 985 000 | 2 976 000 | -0.3 |
Division of Livestock Research | 2 208 000 | 2 209 000 | 0.05 |
AGRITEX | 19 599 000 | 21 142 000 | 7.87 |
Veterinary Services | 12 850 000 | 12 618 000 | -1.81 |
Tsetse Control Services | 2 603 000 | 2 538 000 | -2.49 |
Research services division | 3 490 000 | 3 397 000 | -2.66 |
Agricultural Engineering & Mechanization | 3 531 0000 | 3 200 000 | -
9.27 |
Irrigation development | 7 147 000 | 6 409 000 | -10.33 |
Livestock production and development |
5 558 000 |
5 134 000 |
-7.63 |
There was generally a decrease in the allocations for all the Subvotes. The Sub Vote on Administration and General increased by 176%, by AGRITEX by 7.87% while the Research Services Division’s allocation decreased by 2.66%.It is noteworthy that irrigation development had its allocation decreased by 10.33% and this is worrying since more irrigation schemes should actually be introduced and rehabilitate those that are already in existence to mitigate incidences of adverse weather conditions such as droughts. Tsetse control,
Agricultural Engineering and the Division on Livestock Research and Crop Research also had their share of the allocations decreased. The biggest mover on the sub-vote allocations was Administration and
General Farmers’ world was allocated US$ 10.7 and Command Agriculture was allocated US$67.5 million. This will go a long way in improving agricultural output and hence food security.
Table 4: Economic Classification of the Vote
Item | 2016 | 2017 | % change |
Current
Expenditure |
99 021 000 | 89 783 000 | -9.32 |
Employment costs | 74 832 000 | 80 723 000 | 7.89 |
Goods and Services | 11 728 000 | 5 156 000 | -56 |
Agricultural colleges | 2 525 000 | 881 000 | -65.1 |
Maintenance | 3 486 000 | 508 000 | -85.4 |
Programs | 6 450 000 | 2 515 000 | -19.1 |
Current transfers | 1 317 000 | 782 000 | -40.6 |
Capital
Expenditure |
291 553 000 | 83 580 000 | -71.3 |
Acquisition of fixed assets | 14 387 000 | 10 885 000 | -24.3 |
Capital transfers | 265 609 000 | 61 095 000 | -76.99 |
Lending and equity participation | 11 566 000 | 11 600 000 | 0.002 |
Total | 391 891 000 | 174 145 900 | -55.4 |
Table 4 shows that overall current expenditure decreased by 9.32 percentage points and employment costs will also increase by 7.89 percentage points. Expenditure on Agricultural Colleges will decrease by 65.1 percentage points while that on maintenance costs and programmes will also decrease by 85.4 and 19.1 percentage points respectively. Expenditure on goods and services current transfers and capital will decrease. 51.6% of the Ministry budget allocation goes to recurrent expenditure and of this 89.9% goes towards employment costs.
Capital expenditure is only 47.99% of the Ministry budget. That’s
89.9% of the budget goes towards recurrent expenditure and only 47.99% is allocated for capital expenditure shows that the budget allocation is more consumptive than developmental.
The importance of the Ministry of Agriculture, Mechanisation and Irrigation Development cannot be over emphasised. Agriculture plays a central role in the Zimbabwean economy and has the potential to alleviate extreme poverty, enhance economic growth and entrench economic stability. The sector provides employment and income to over 70% of the population and supplies about 60% of raw materials to industry. The sector also contributes about 40% of total exports.
Agriculture contributes about 20% of the Gross Domestic Product
(GDP). The success of the country’s economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset) hinges on the success of agriculture since food security and nutrition is one of the pillars of the blueprint. It should be emphasised that most of the industries are reliant on agriculture for their raw materials so the success of agriculture is the success of the whole economy since there is a linkage between agriculture and other sectors of the economy.
The Ministry is parent to such parastatals as Agribank, GMB, AMA, ARDA and CSC which can be productive and self-sustaining if given sufficient initial funding. The CSC used to be the biggest foreign currency earner in the country due to its strategic role as exporter of beef to European countries and the region. The parastatal needs to be recapitalised for it to start operations. Arda has the potential to alleviate food shortages in the country if it is adequately recapitalised. Its farms are located in regions which received normal to above normal rainfall.
From the budget allocations, nothing was allocated to Agribank, the
Agricultural Commodity Exchange, Farmers’ Development Trust and the Agricultural Marketing Authority. It will therefore be difficult for farmers to access loans for the farming season if Agribank is not capacitated.
The Grain Marketing Board (GMB) has to perform its core functions and for the parastatal to do so it has to be adequately funded.
2.2 Conclusion and Recommendations
The Ministry of Agriculture, Mechanisation and Irrigation Development was allocated $292 696 000 which is a significant improvement from the previous allocation. The allocation translates to 7.14% of the total budget. Although this allocation falls below the 10% allocation agreed at the 2003 Maputo Declaration, this is offset by some agriculture related allocations incurred in 2016. The Committee noted that the National Budget prioritizes agriculture as evidenced by allocations related to the following:
- Strategic grain reserve;
- Input schemes;
- Supportive personnel/employment costs;
- Operations;
- Irrigation development; Extension services; and
- Veterinary services.
The Committee commends the support to agriculture by Government in the following activities:
- Prioritisation of maize production through the Special Maize Production Programme;
- Supporting cotton producers as evidenced by $42 million worth of cotton inputs through the Vulnerable Households Input Scheme to
400 000 communal cotton farmers;
- Rebuilding the National Cattle Herd;
- Efforts to revive the Horticulture sector through engaging players in the sector;
- Investing in irrigation infrastructure where a number of irrigation schemes are targeted; and
- Promoting agricultural mechanisation;
Observations
- The Committee also notes with concern that funds that are allocated to the Ministry for these activities are inadequate and are either not timeously disbursed or are not disbursed at all and this affects the operations of the Ministry;
- The Committee also observed that there was little allocation for Research, Irrigation Development and Veterinary Services. These activities by the Ministry play a critical role to the success of agriculture and therefore need to be adequately funded. ;
- The expectations are high that, the country may experience a bumper harvest for the current season, however, the GMB storage capacity has been reduced due to poor maintenance of silos;
- Research and training institutions are an indefensible elements in the agricultural sector, contributing to agricultural body of knowledge, however agricultural colleges’ allocation was inadequate;
- There is also the outbreak of the army worm which needs to be controlled if harvests are no to be negatively affected.
- Current summer cropping season has received above normal rainfall throughout the country, this has resulted in shortages of fertilizers especially the Ammonium Nitrate (AN).
- Employment costs are high but activities are not adequately funded
- Irrigation and mechanization, received insignificant funding to realize any meaningful development.
The Committee therefore recommends that:
- In an effort to attract investment in agriculture, the Ministry of Agriculture, Mechanisation and irrigation Development should finalize and launch its agricultural comprehensive policy, contract farming frameworks, ensure operationalisation of the stop order system to other agricultural products as well as the warehouse receipt system;
- The allocated funds to the Ministry have to be timeously disbursed for the smooth operation of the Ministry;
- Agritex needs to be fully capacitated so as be very visible in assisting farmers;
- Entities like Agribank must be capacitated through budgetary allocation whilst ARDA and CSC should be encouraged to identify and enter into joint ventures;
- Adequate funding should be allocated to agricultural colleges for training of more agricultural experts;
- There should be adequate allocation for the Department of
Veterinary Services to enable it to combat animal diseases;
- As a matter of urgent, Treasury should release enough funding to enable local companies to produce AN fertilizer in case of incapacity, allow them to import;
- Treasury should assist the Ministry with decent accommodation for
its officers;
- Treasury should release adequate funding for the rehabilitation of grain silos before the harvesting period commences;
- In light of insufficient funding to irrigation and mechanisation, the Government should provide sovereign guarantees for the irrigation equipment from willing partners like Belarus and India.
Ministry of Lands and Rural Resettlement
1.0 Introduction
The Ministry of Lands and Rural Resettlement has two Sub Votes,
Administration and General and the Surveyor General. There is also the
Zimbabwe Land Commission within the Ministry. The Ministry of Lands and Rural Resettlement has a mandate to promote equitable distribution of land and provide security of tenure.
1.1 Key Result Areas of the Ministry
The Ministry of Lands and Rural Resettlement has laid down its priority objectives for the 2015 Financial Year and these are the:
Land acquisition and rural resettlement Land administration and management.
1.2 Major achievements during 2016
During the 2016 Fiscal Year, The Ministry has the following as some (among others) of its achievements:
- 51 205.33 hectares of land were acquired;
- Twelve farmers were fully compensated;
- Five 99 year leases were registered;
- One hundred and thirty five (135) farm survey diagrams produced;
- 138 A1 settlement permits were produced and issued;
- Reaffirmation of the140 km Zimbabwe/Botswana boundary;
- Ninety eight (98) user specific maps were produced.
1.3 Ministry’s Policy Priorities for 2017
The major policy priorities for the Ministry are;
- To provide security of tenure;
- Management of land information;
- Valuation and compensation of all acquired farms;
- Commissioning and maintaining of Zimbabwe’s international boundaries;
- Policy reviews, formulation and pronouncements;
- Land acquisition and distribution;
- Reorganizing, training, performance monitoring and welfare;
- Management, maintenance, acquisition and audit of assets.
2.0 The National Budget
The Ministry of Lands and Rural Resettlement is ranked very lowly in the overall budget allocations. This is comparable to the previous fiscal year where it was also lowly ranked and his is consistent with its overall staff establishment as employment costs get the biggest share in most ministries. The Ministry’s overall allocation is 0.19% of the National Budget and was reduced by 20.08% from the previous year’s allocation. It will be difficult for the Ministry to achieve its set objectives for the fiscal year because of the inadequate funding allocated. The fact that the Ministry is ranked among the lowest ten recipients in the budget betrays its economic and social importance.
2.1 Vote allocations for the Ministry
Table 1
2016 | 2017 | %change | |
Sub-Vote | Allocation | Allocation | |
Administration and General | 7 794 000 | 6 095 000 | -21.8 |
Surveyor General | 1 768 000 | 1 547 000 | -12.5 |
From Table 1 above, it can be seen that there was a general decline in the Sub Votes allocation as reflected by the overall decline for the whole Ministry.
Table 2: Administration and General
Item | 2016 | 2017 | %change |
Current Expenditure | 7 794 000 | 6 095 000 | -21.8 |
Employment costs | 3089000 | 2966000 | -3.04 |
Goods and Services | 1070000 | 867000 | -18.97 |
Maintenance | 102000 | 70000 | -31.37 |
Current transfers | 26000 | 132000 | 407.69 |
Programmes | 2000000 | 2000000 | 0 |
Capital Expenditure | |||
Acquisition of fixed assets | 1507000 | 60000 | -96.02 |
Total | 9 562 000 | 7 642 000 | -20.08 |
The table shows that employment costs marginally increased by about 6.5% while all the other expenditures are decreasing.
Table 3: Surveyor General
Item | 2016 | 2017 | %change |
Current Expenditure | |||
Employment costs | 699 000 | 926 000 | 38.41 |
Goods and Services | 697 000 | 551 000 | -20.95 |
Maintenance | 84000 | 30 000 | -64.29 |
Capital Expenditure | |||
Acquisition of fixed assets | 88 000 | 40 000 | -54.55 |
Total | 1 768 000 | 1 547 000 | -12.5 |
Table 3 shows an increase in employments costs by 38.41% while all other expenditures are declining. This means that the office of the Surveyor General will not be able to execute its mandate fully with such a budget allocation which is way below what was expected. The budget is in fact less than the allocation that was done in the previous fiscal year.
3.0 Zimbabwe Land Commission
The transfer on the Zimbabwe Land Commission was $200 000.
The Commission is still to be established.
Table 4: Economic Classification of the Vote
Item | 2014 | 2015 | % change |
Current Expenditure | 8 265 000 | 7912000 | -0.4 |
Employment costs | 3465000 | 3722000 | 7.4 |
Goods and Services | 2290000 | 1899000 | -17.1 |
Maintenance | 598000 | 291000 | -51.3 |
Programmes | 191200 | 2000000 | 946 |
Current transfers | 200000 | 160000 | -20 |
Capital Expenditure | 5650000 | 2570000 | -54.5 |
Acquisition of fixed assets | 5350000 | 2370000 | -55.7 |
Capital transfers | 300000 | 200000 | -33.3 |
Total | 14 115 000 | 10 642 000 | -24.6 |
Table 4 above shows that the overall allocation to the Ministry of Lands and Rural resettlement declined by 24.6%. This decline affected all the other allocations which are in the negative. Only employment costs show a positive increase of about 7.4%.
The first key priority of the Ministry is to provide security of tenure to A2 beneficiaries in the form of 99-year leases, provide settlement permits to A1 farm beneficiaries, provide title deeds to small scale farmers and commercial farmers holding leases with option to purchase before the land reform programme and provide short term leases to homesteads and trading sites.
The other priorities for the Ministry are: to manage land information, which involves e-governance training, networking and connectivity, master data collection from provinces routine farm inspections and production of base maps and resuscitation of photogrammetric operations. The other priority of the Ministry is to commission and maintain Zimbabwe’s international boundaries.to redress historical land imbalances; the Ministry is re-gazetting land for agricultural purposes. The Ministry also evaluates and compensates for immovable farm improvements. The Ministry also intends to establish the Zimbabwe Land Commission.
The Committee notes that the Ministry faces the following challenges in trying to meet these objectives:
- Inadequate manpower;
- Inadequate or non- release of the allocated funds for operations;
- Obsolete equipment;
- Staff immobility because of inadequate motor vehicles;
- Lack of modern survey equipment;
- Legal and Technical challenges in registering 99 year leases;
- Resistance from the Rural District Councils over the collection of Rural Development Levy; Observations: Ministry of Lands and Rural Settlement and
Zimbabwe Land Commission
- The Committee noted that there is duplication of related work between the Zimbabwe Land Commission and the Ministry of
Lands.
- There is slow process in the issuance of 99 years leases to farmers
- The Land Commission Bill is still under parliament consideration, however the Commission has submitted its budget and the Ministry of Finance has allocated them. The Committee raised concerns that the Land Commission should only receive funding from Treasury after the enactment of the law.
- There is no clear mechanism regarding how the Land Development
Levy, should be shared between the Ministry and the Commission.
Recommendations
- The Committee recommends that the Ministry of Lands should be disbanded and placed as a department under Ministry of
Agriculture and the rural component under the Ministry of Local Government, this should be effected ones the Land Commission is legally constituted;
- Treasury should release adequate funding to modernize Surveyor
General’s Department;
- In the meantime, land redistribution should be halt, until the Land
Commission is well established and conducts land audits;
- There be clarity between the RDC and the Ministry on who should collect the Rural Development Levy. I thank you.
HON. MAJOME: I thank you Hon. Speaker for allowing me this
opportunity to table the report of the Portfolio Committee on Justice, Legal and Parliamentary Affairs as my swan song as it will be the last act that I perform as the Chairperson of this Parliamentary Portfolio Committee as the Committee is moving to ZANU PF. I want to just take this opportunity to thank this august House for giving me this privilege and honour of leading in this particular way in this august House and serving my nation in this particular way. I treasure it.
I will now proceed to present the report. Thank you Hon. Members and through you Mr. Speaker Sir, I understand that I have only five minutes to present the report of the Portfolio Committee. So, I am going to just give highlights and indicate that…
INTRODUCTION
The Portfolio is concerned with the Ministry and five independent constitutional Commissions, namely the Zimbabwe Anti-Corruption Commission (ZACC), the Judicial Service Commission (JSC), the
Zimbabwe Human Rights Commission (ZHRC), the Zimbabwe
Electoral Commission (ZEC), and National Peace and Reconciliation
Commission (NPRC), as well as the National Prosecuting Authority and Parliament. The National Prosecuting Authority did not avail itself of the opportunity the Committee is compelled by Section 325 (2) of the Constitution to avail to it as a constitutional commission or institution, to make ‘representations as to the funds to be allocated to it in each financial year’.
The Committee’s analysis was also informed by anomalies identified by the Public Accounts Committee’s report on Auditor general’s report of the Ministry’s 2013 accounts.
MINISTRY OF JUSTICE, LEGAL AND PARLIAMENTARY
AFFAIRS
The Ministry also has oversight over the Zimbabwe Prisons and
Correctional Services and the Attorney General’s Office. Its key result areas are:
- Justice delivery.
- Incarceration and rehabilitation of offenders.
- Public Sector accountability and transparency laws.
2.1. MAJOR ACHIEVEMENTS IN 2016
The following are some of the Ministry’s major achievements in 2016:
Decentralisation of Legal Aid Directorate Offices to Matabeleland South, North and Mashonaland West provinces.
- Actively spearheaded the Ease of Doing Business Reform Agenda.
- Submitted to Cabinet
- The Zimbabwe National Intellectual Property Policy and Strategy.
- Key communications regarding o The International Covenant on Civil and Political Rights.
o International |Covenant on Economic, Social and Cultural Rights. o African Charter on the Human and People’s Rights and its Protocol.
Represented Government and completed 323 civil cases.
- Gave legal assistance to 2 099 indigents.
- Drafted 30 Bills and statutory instruments.
- Summarised 995 High Court judgments as well as 242 Supreme Court judgments.
- Produced 2015 Zimbabwe Law reports.
- Prepared an electronic version of updated 2016 statutes and judgments.
- Prepared the Cyber Crime and Computer Draft Bill, Data Protection Draft Bill, Electronic and Commerce Transactions Bill.
2.2. MAJOR CHALLENGES IN 2016
Notwithstanding the above achievements, the Ministry also faced the following challenges in 2014:
Erratic and non-release of funds coupled with inadequate funding for service delivery, projects and programmes.
- Freezing of vacant posts.
- Lack of vehicles to do work outside stations.
- Debt carry over from 2013 accumulated to more than $13, 300,000.
- Delays in obtaining approval for State Party reports.
- Non cooperating stakeholders.
2.3. POLICY PRIORITIES FOR 2017
- Alignment of outstanding legislation to the Constitution.
- Decentralisation of the Legal Aid Directorate and Civil Division to facilitate equal access to justice for all Zimbabweans.
- Resourcing prison farms with inputs, implements and machinery to improve production.
Channelling resources towards rehabilitation programmes.
- Renovation of prison infrastructure.
- Capacitating the Community Service Programme.
- Decentralisation of the Pre-Trial Diversion Programme for juvenile offenders.
- Capacitating the Civil Division Bulawayo offices.
- Finalising the DNA Evidence, Copyright Law and Electronic Evidence Act.
- Drafting and presentation of State Party reports on human rights treaties.
- Launching the Zimbabwe National Intellectual Property Policy and Strategy.
2.3.1.1. MINISTRY’S BUDGET TRENDS 2010-2017
An analysis of the Ministry’s Budget trend shows that on average
70% of allocated amounts are disbursed as of 30 September of the
financial year. The capital budget allocation, relative to the total budget, has generally been low over the period 2010-2017. The share of capital expenditure was at its highest (14.7%) in 2012 after which it sharply declined to 8% in 2013 and to 3.8% in 2014. In 2017, only 2.6% of the Ministry’s budget was allocated towards capital expenditure. Most of the allocated funds are therefore going towards recurrent expenditure in the form of employment costs, goods and services, and maintenance. This trend is worrisome given the dilapidated state of infrastructure in prisons and its dire security implications. Figure 1 shows allocated amounts vs disbursements, and the ratio of capital allocation for the period 2010-2017.
Figure 1: Trends in Ministry’s Budget
2.4. 2017 BUDGET ALLOCATION FOR THE MINISTRY
About 2.2% of the 2017 National Budget of $4 100 000 000 was allocated to the Ministry of Justice, Legal and Parliamentary Affair. This allocation places the Ministry’s Vote on position 10 of the
Government’s priority list (see Figure 2).
Figure 2: Top 10, 2017 Allocations
There was a 15.98% reduction in the Ministry’s budget from $108 762 000 in 2016 to $91 379 000 in 2017. The Ministry’s allocation reduces to only $24 555 000. This figure is against the Ministry’s bid of $100 742 160, and thus creates a deficit of $76 187 160 constituting a variance of -310.3%. Table 1 shows the Ministry’s bids versus allocated amounts for 2017.
Table 1: Ministry’s bids versus Allocations for 2017
DEPARTMENT | 2017
ALLOCATION (US$) |
2017 BID
(US$) |
VARIANCE
(US$) |
%VARIANCE |
Administration and
General |
10 323 000 | 14 500 000 | -4 177 000 | -40.5 |
Zimbabwe Prisons and
Correctional Services |
13 911 000 | 84 700 000 | -70 789 000 | -508.9 |
Attorney General's
Office |
321 000 | 1 542 160 | -1 221 160 | -380.4 |
TOTAL | 24 555 000 | 100 742 160 | -76 187 160 | -310.3 |
Zimbabwe Prisons and Correctional Services had the worst variance of -508.9% followed by the Attorney General’s Office 380.4%.
Ministry’s Budget Analysis by Programme
The Ministry has four major programmes namely (1) Policy and
Administration, (2) Access to Legal Services, (3) Incarceration and
Rehabilitation of Offenders, and (4) Registration of Proprietary Rights.
The Ministry’s Vote allocation of $91 379 000 was distributed across the four programmes as shown in Figure 3 below.
Figure 3: Expenditure Allocation by Programme (US$)
Incarceration and Rehabilitation of offenders received the bulk of the allocation ($80.5m) followed by Policy and Administration
($8.05m). $716 097 was allocated towards the registration of proprietary rights and $2 055 963 towards access to legal services.
By economic classification, 76.2% of the Ministry’s budget allocation is consumed in employment costs, while the remainder goes towards goods and services (11.8%), maintenance (2.5%), current transfers (7%) and acquisition of fixed assets (2.6%). (see Figure 4)
Figure 4: Economic classification of the Vote
2.6. DEEDS, COMPANIES AND INTELLECTUAL
PROPERTY REGISTRY
Deeds, Companies and Intellectual Property collected $15 138 869 as at 30 September 2016, of which only $756 943 (5%) was retained. There is scope for greater revenue collection if the department is adequately resourced with the necessary infrastructure and equipment. In 2017, a meager $1 191 000 was allocated and this amount is grossly inadequate to fund critical projects that would enhance further revenue collection and curb corrupt activities. The Ministry had placed a bid of $
6 036 460.90 to undertake the following projects:
- Computerisation and scanning of the current manual processing system.
- File audit to examine the extent to which lodged and registered documents have been paid for.
- Renovations of
2.7. OUTSTANDING DEBTS
2.7.1. Administration and General
Administration and General have outstanding payments to service providers that date back to 2013 inclusive of COPAC debts handed over to the Ministry. Table 2 shows these outstanding debts. Of concern is that no allocation was provided to repay these debts in the 2016 and 2017 budgets.
Table 2: Debts owed to Service Providers
SERVICE
PROVIDER |
OUTSTANDING
DEBT ($) |
AMOUNT PAID IN
2016 ($) |
BALANCE
($) |
ZBH | 250 473.69 | 0.00 | 250 473.69 |
CMED | 284 102.74 | 0.00 | 284 102.74 |
VICKSTROM | 117 000.00 | 3 000.00 | 114 000.00 |
TOTAL | 651 576.43 | 3 000.00 | 648576.43 |
The Ministry also owes services providers for maintenance of vehicles and subscriptions as shown in Table 3. Only $354 966 in respect of subscriptions has been budgeted for to cover subscription arrears and nothing for service providers.
Table 3: Debts with respect to motor vehicles
SERVICE PROVIDER | AMOUNT OWED ($) |
Puzey and Payne | 15 317 |
Amtec | 13 604 |
Autoworld | 19 202 |
Nissan Clover Leaf | 9 263 |
Subscriptions to International
Organisations |
354 966 |
TOTAL | 412 352 |
2.7.2. Zimbabwe Prisons and Correctional Services
The Zimbabwe Prisons and Correctional Services owes various service providers for provisions, rates, water, electricity and vehicle hire to the tune of $11 741 880. The Commissioner of Prisons has been served with law suits from the City of Harare in respect of unpaid rates. The debts have ballooned way beyond the budget provision and are approaching $12 million as shown in Table 4.
Table 4: Money owed to service providers
2017 BUDGET
ALLOCATION ($) |
AMOUNT OWING
($) |
|
Rates and Water | 2 328 000 | 4 250 518 |
Electricity | 900 000 | 800 000 |
Telephones -Fixed and mobile | 517 200 | 580 000 |
Vehicle hire | 879 000 | 6 111 362 |
TOTAL | 4 624 200 | 11 741 880 |
2.7.3. Attorney General’s Office
The following are amounts of money owed to service providers by the Attorney General’s office. The office was allocated only $410 000 in 2017 and yet it owes service providers more than $1 000 000.
Figure 5 demonstrates the distribution and levels of indebtedness.
Figure 5: Distribution and level of indebtedness
Puzey and Payne Autoworld Foreign Travel Domestic Travel Easy Go CMED Africon NetOne Telone Amount ($) |
3. INDEPENDENT COMMISSIONS
Section 323 obligates Parliament to ‘ensure sufficient funds are appropriated to Commissions to enable them to exercise their functions effectively’ All the Commissions are gravely concerned about underfunding in the 2017 budget allocations. This is adversely compromising effective service delivery across the board and is unconstitutional.
3.1. ZIMBABWE ANTI-CORRUPTION COMMISSION
(ZACC)
1.1 The Zimbabwe Anti-Corruption Commission’s (ZACC) mandate is to combat corruption, theft, abuse of power and other improprieties in Zimbabwe through investigation, public education, prevention and cause prosecution after thorough investigation. This obligation requires that the Commission be adequately funded if it is to achieve its constitutional mandate. Underfunding in the previous and current year has resulted in cases of corruption rising to unprecedented levels, a situation which has become worrisome
1.2 The 2016 Budget support was marred by insufficient budget releases and inadequate cash releases from Treasury. As a result, the base line survey, which is one of the Commission’s objectives, was not satisfactorily achieved. Additionally, litigation against the Commission resulted from failure to service debts. Underfunding continues to be a perennial challenge facing the Commission. Policy priorities for the Commission in 2017 include:
- Decentralization to provinces.
- Public outreach, education & integrity assessment.
- Constitution -Review legislation : Anti – corruption Act, new Whistle Blower & Witness Protection Acts.
- National baseline survey.
- UN Convention Against Corruption (UNCAC) compliance.
- Evaluating corporate governance systems.
- Start retention fund.
1.3 In terms of the 2017 Budget allocation, the Commission submitted an overall operations bid of $8 640 085 but only received $1 100 000. This represents a shortfall of $7 540 085 or -87% variance. Items under goods and services include communication and information supplies, rental and hire expenses, travel expenses, and utilities. These expenditure items are the “lifeblood” of the Commission as they make possible the day to day operations of the Commission. However, goods and services have been severely underfunded in 2017, having been allocated $394 000 against a bid of $1 664 940. Maintenance and
Programmes were also underfunded with funding variances of -27% and
-85% respectively. Figure 6 highlights the Commission’s bids versus allocated amounts for 2017.
Figure 6: ZACC 2017 Bids vs Allocations
3.2. JUDICIAL SERVICE COMMISSION (JSC)
3.2.1 The 2017 top priorities for the JSC include the following:
- Resourcing the Commission.
- Institutional capacity growing.
- Infrastructural development.
- High Court decentralisation, and
- Improving the justice delivery system & access to justice.
3.2.2 In 2017, the JSC placed a bid of $40.6 million but was allocated only $3 million, leaving a variance of $37.6 million. In 2016, only $1.2 million was disbursed against an allocation of $3.3 million. This reflects the serious funding challenges that the Commission is facing. Table 5 below shows these statistics.
Table 5: JSC 2017 BUDGET
2016 Allocated
$3.3 million |
2016 Disbursed
$1.2 million |
Variance
($2.1 million) |
2017 Bid
$40.6 million |
2017 Allocation
$3 million |
Variance
($37.6 million) |
Critical funding needs for 2017 include capital expenditure for the conditions of service of the new Chief Justice and the completion and renovation of court buildings as well as judicial officers which are all in jeopardy as the major funder of the Commission DANIDA pulled out in 2016. Treasury was so spoilt that its meager allocation to the JSC amounted to in the words of the Commission itself virtually ‘back pocket change’. The almost total foreign funding of an arm of Government that should be independent is disconcerting regarding sovereignty.
3.3. ZIMBABWE HUMAN RIGHTS COMMISSION
(ZHRC)
3.3.1 The ZHRC has a Constitutional mandate to support and entrench human rights and democracy in the country as well as examining cases of maladministration by state institutions and their agents. It administers the Zimbabwe Human Rights Commission Act (Chapter 10:30) and the Administrative Justice Act (Chapter 10:28).
3.3.2 The Commission is facing several challenges ranging from a shortage of staff, poor working conditions, lack of office equipment, inaccessibility in most parts of the country, and inadequate budgetary allocations. The Commission is also burdened by a debt in excess of $147 000 which it owes to various service providers and suppliers including security companies, utilities and the former Executive
Secretary’s dues. Some of these creditors have started litigation to recover their money.
3.3.3 With regards to the 2017 Budget, the Commission submitted a bid of $969 154 for effective service delivery, but only received $597
- The 2017 allocated amount is 38% short of the Commission’s financial requirement. A capital budget allocation of $200 000 is inadequate for a Commission that is setting up operations. The Commission is also concerned by the meager resource allocation towards direct programme activities which are its core mandate areas.
Functions like Complaints Handling and Investigations, monitoring and inspections, as well as education, promotion and research are not adequately resourced for 2017. The same applies to Thematic Working Groups that provide specialised attention to particular human rights themes. This will seriously compromise the responsiveness and effectiveness of the Commission whose service delivery is demand driven. The transfer of the public Protector’s functions remains underfunded thereby depriving the nation of protection from graft as in neighbouring states.
3.4. ZIMBABWE ELECTORAL COMMISSION (ZEC)
3.4.1 The ZEC ‘s mandate includes the conduct and supervision of elections; delimitation of constituencies, wards and other electoral boundaries; conduct and supervision of voter education; development of expertise in the use of technology that regard electoral processes; promotion of cooperation between the Government, political parties and civil society during election periods; and accreditation of observers of elections and referendums.
3.4.2 The Commission’s key result areas are:
- voter registration
- voter education
- conduct of elections and referendums
- stakeholder engagements
- delimitation of electoral boundaries
3.4.4. The Commission is facing several challenges including the late release of resources for by-elections, lack of appropriate office accommodation, poor conditions of service, debts amounting to $3.093 million July 2013 harmonised elections, among others.
3.4.5. Policy priorities for 2017 include:
- capacitating ZEC with vehicles for the conduct of electoral activities.
- Procure Biometric Voter Registration kits.
- Upgrade ICT connectivity and data storage and processing.
- Finalise the mapping and demarcation of polling station boundaries in preparation for polling station specific voter registration.
- Conduct nationwide voter registration.
- Procure election materials for 2018 harmonised elections.
3.4.6. With respect to the 2017 Budget, the following are the
Commission’s bids vs allocations (Figure 7)
Figure 7: ZEC’s 2017 Bids versus Allocation
3.4.7. The allocation for employment costs is inadequate in meeting the proposed expansion of the ZEC establishment. The allocation for goods and services does not cater for the necessary preparations for the 2018 harmonised general elections. In addition, the allocation of $335 000 for maintenance is not adequate for the maintenance of the old fleet of vehicles and election materials and equipment whose book value is more than $25 million.
3.4.7. The Committee commends Treasury’s heeding the
Committee’s pre-budget recommendation that it separates programmes from administration. However under Programmes, only about $1.5 was allocated for by-elections against a bid of $8.5 million. The bid of $29 million was for biometric voter registration and the supporting voter education in preparation for the 2018 elections. No allocation was provided for this. This is alarming given the Committee’s reports of previous years to the effect that if this gross underfunding is not stopped ZEC will not be ready conduct free, fair and credible general elections for 2018. The national security and sovereignty consequences are too ghastly to contemplate.
3.5. NATIONAL PEACE AND RECONCILIATION
COMMISSION (NPRC)
3.5.1 The NPRC is an independent full time body corporate established according to Chapter 12 Part VI, Section 251-253 of the Constitution of Zimbabwe as amended in 2013. The Commission was established to promote sustainable peace, equality, reconciliation, national healing, cohesion, unity and the peaceful resolution of disputes and conflicts in Zimbabwe. The NPRC has a life span of ten years.
3.5.2 The Commission is made up of nine Commissioners with one of them being the Chairperson. Its main key result area is sustainable positive peace, stability and development in Zimbabwe.
3.5.3 The Commission has faced challenges particularly with regards to the operationalisation of the NPRC Act.
3.5.4 Key priorities for the NPRC for 2017 are as follows:
- Setting up of the NPRC. The Commission needs to establish itself so that it can operate.
- Organisational development. With 2017 being the first year that the NPRC is in office, it is important that staff undergo capacity development.
- Stakeholder mapping and engagement.
- Conflict mapping.
- Designing and implementing Conflict Prevention, Management and Resolution and Transformation (CPMRT) programmes.
- Communication through exhibitions and commemorations.
3.5.5 With regards to the 2017 Budget allocation, Figure 8 shows the
Commission’s bids versus allocated amount. The first column shows the capital bid and the second column indicates operations and maintenance bid.
Figure 8: NPRC Bids versus Allocation
3.5.6 Employment costs were allocated $699 000, and this amount is only adequate to cover the salaries of Commissioners. This means the Commission will not be able to recruit staff that will assist it to implement its programmes.
3.5.7 The Commission made a request of $467 000 for office rental, furniture and equipment and vehicle purchase but was allocated $220 000. The allocated amount falls short of the Commission’s requirement by 53%, a situation that will adversely affect the setting up of the
Commission.
3.5.8 From a bid of $314 000, the Commission was allocated $230 000. This represents a variance of -27% ($84 000), which will directly affect the Commission’s 2017 operations. It is important to note that the NPRC will be in existence for only ten years in which it has to implement its functions as lain out in the Constitution. There is therefore need to prioritise resource allocation towards the Commission well on time so that work commences.
The Committee rejected outright the excuse that the Commission can only be funded if a statute is enacted as the provisions of Part 6
Chapter 12 of the Constitution do not provide that.
4. OBSERVATIONS AND RECOMMENDATIONS
4.1. THE MINISTRY
- The Administration and General expenditure target is grossly inadequate given that the Ministry should pay outstanding COPAC debts that have remained outstanding for the past three years. In addition, more than $5 000 000 is owed to ZINWA, Local Authorities and ZESA due to inadequate funding for the past four years. Some stations had their water supplies disconnected by ZINWA for non-payment, thereby posing a very serious health hazard. Travel and Subsistence is also consuming a lot of resources and some of the money extended as advance payments has not being recovered as reported by the Public Accounts Committee from the Auditor
General’s Report. We therefore recommend that expenditure allocation be increased under Administration and General and that a stringent debt recovery strategy be put in place so as to resolve the matter.
- The Zimbabwe Prisons and Correctional Services is grossly underfunded to feed and clothe about 18000 prisoners. The
Services requires $1 600 000 per month for a dietary scale of $3 per prisoner per day. It has been allocated only $3 042 000 for inmates rations for the whole year against a target of $28 631 658 thereby threatening inhuman and degrading conditions that in turn threaten security.
- Medical expenses for inmates have been allocated $501 000 against a target of $3 592 156. This hinders the procurement of drugs yet prisons are prone to communicable diseases. The Services is failing to pay major hospitals for health services accorded to inmates.
- The current prison infrastructure was established in the colonial era, therefore there is need to complete rehabilitation so that security is enhanced. The target for maintenance is $8
399 640 against an allocation of $1 996 000.
- The Zimbabwe Prisons and Correctional Services has 27 farms with 3 482 hectares of arable land most of which lies idle due to inadequate or late funding for inputs and equipment. The Services has the capacity to produce and feed all inmates if 637 hectares are provided with irrigation infrastructure. An amount of $784 000 was allocated in 2017 against a bid of $2 871 576.
- The Zimbabwe Prisons and Correctional Services has a transport system that is totally dysfunctional though it has a statutory obligation to service the High Court and all Magistrates Courts throughout the country. The department owes CMED and several private garages huge sums of money. These service providers are now refusing to provide service thereby leaving the department with no choice other than to extend hiring services which have also accumulated debts in excess of $6 000 000. We therefore recommend officials to travel in the economy class and to freeze the purchase of luxury vehicles up and until the operations fleet is acquired.
- The Legal Aid Directorate requires at least $200 000 for its decentralisation programme as outlined in ZIM ASSET. It is prioritising the acquisition of office accommodation in one remaining provincial town (Marondera-Mashonaland East) and in at least three selected district offices as well as procurement of office furniture for the said offices. The Legal Aid Directorate head office at corner Samora Machel needs refurbishment and a quote from Local Government amounts to $58 890.73 but only $23 000 has been allocated for maintenance of physical infrastructure.
- The Community Service Department rehabilitates probationers outside prison thereby saving Government from an increasing prison population. The department requires funding to supervise probationers as well as sensitise stakeholders to reduce the rate of default and therefore require a budget of $200 000, which has not been availed.
- Increase the retention rate to 100% to the Deeds office until, the goose that lays the golden egg, is fully capitalised. This will enable further revenue collection.
- The Government is signatory to the United Nations African Institute for the Prevention of Crime and the Treatment of Offenders. This is an inter-governmental organisation which aims at promoting an active cooperation of governments, academic institutions, non-governmental organisations and experts in the area of crime prevention and criminal justice. The Ministry, in its submission, indicated a need to weigh the costs and benefits of membership especially in light of the ballooning dues in membership subscriptions. In light of the fact that the Government has not been participating in the organisation, we recommend that we disengage from the organization, are remove the costs
associated with such membership and avoid the staggering $300 000 arrears.
4.2. INDEPENDENT COMMISSIONS
- Fund the AG’s department sufficiently for the alignment of laws to the Constitution.
- Fund prison farms & workshops enough to wean them off the fiscus, including systems to end theft. Also act on the Auditor
General’s report.
- Adequately fund independent Commissions to safeguard independence & avoid unconstitutional budget. Comply with section 325 of the Constitution.
- Fund vehicle purchases progressively to save on car hire costs for the Ministry, ZHRC, ZACC, NPRC, JSC.
- Allocate to Constituency Development Fund.
- Fund adequately ZHRC’s and NPA’s staff costs.
- Fund ZEC’s voter registration and by elections.
- Fund NPA,’s and JSC’s furniture and equipment, Deeds registries computerisation.
- Provide prisoner’s dietary, health and court transport & prison security needs. Augment clothing and bedding with secure personal supplies.
- Fund community service programme to decongest prisons
- Fund pre-trial diversion.
- Fund witness expenses, pro deo counsel fees from retention.
- Fund damages against the State and improve legal advice.
Mr. Speaker Sir, I want to end by emphasising on the Budget of
Parliament and urging Hon. Members to resolve to have the Budget of Parliament referred to the Portfolio Committee so that it can be debated in this House. As we sit here, I was laughing with the Hon. Minister that even the seat that the Minister of Finance himself is sitting is sunk. It is sinking and it is broken. Even as we were listening to submissions from Committees, Hon. Members did not even have notepads to write on, no pen, no water that this Parliament is just too poor to meet the basic needs and basic administrative costs of Members of Parliament. Mr. Speaker Sir, I do urge the Hon. Minister that he does fund Parliament but if the Standing Rules and Orders Committee does not also bring the Budget to the Portfolio Committee, that will continue. It is not an exercise in territory and it is not making the Standing Rules and Orders Committee answerable to the Committee. It is in fact, to allow the voice of all these Hon. Members of Parliament to rise in chorus to put pressure on the Hon. Minister of Finance to hear for himself that Parliament must be funded for all the work that we do in the House and in our constituencies. I thank you Mr. Speaker Sir.
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Tuesday, 31st January, 2017.
On the motion of THE MINISTER OF FINANCE AND
ECONOMIC DEVELOPMENT (HON. CHINAMASA), the House
adjourned at a Half-past Four O’clock p.m. until Tuesday, 31st January, 2017.
[1] The ministry’s staff establishment is 6 793 and currently 4 295 are in post.
[2] Released funds were utilised for fence erection and infrastructure modifications
PARLIAMENT OF ZIMBABWE
Wednesday, 25th January, 2017
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. SPEAKER in the Chair)
ANNOUNCEMENTS BY THE HON. SPEAKER
ERROR ON THE ORDER PAPER
THE HON. SPEAKER: I wish to draw your attention to an error on today’s Order Paper where Order of the Day No. 31, relating to the
Reserve Bank of Zimbabwe Amendment Bill has not been numbered.
The subsequent Orders are therefore renumbered accordingly.
INVESTIGATIONS ON THE ALLEGED THREATENING
MESSAGES TO MDC-T MEMBERS
THE HON. SPEAKER: The Chair would like to inform the
House that the Privileges Committee appointed to investigate allegedly threatening messages sent to some members of the MDC-T party is continuing with its inquiry. In this regard, all Members of Parliament who received the allegedly threatening messages must approach the Assistant Clerk of Parliament, Mr. J. Gandiwa with any information or evidence which may assist the investigations - [HON. MEMBERS: Inaudible interjections.] – Order; so that we can conclude the investigations accordingly.
Hon. Majome having moved a Notice of Motion.
THE HON. SPEAKER: Hon. Majome, all motions must have
the nomenclature of the Speaker. I do not recall seeing that motion before me because there are certain issues that needed clarification so that the motion stands corrected accordingly. So, the motion therefore should be withdrawn until I have seen it properly.
HON. MAJOME: I stand guided Mr. Speaker Sir. I filed this notice on Monday to the Journals Office and this afternoon, I was following it up and was of the belief that it has since been seen by the
Speaker.
THE HON. SPEAKER: Hon. Member, the Journals Office is not
the Speaker’s Office. Please can you withdraw that motion until I have seen it?
HON. MAJOME: I withdraw the motion Mr. Speaker Sir and
request your assistance in the motion coming to your office.
THE HON. SPEAKER: Thank you.
HON. PHIRI: On a point of order Mr. Speaker. Thank you Mr. Speaker Sir. Now that you have asked the mover of that motion to sit down, my question was, what happens in a situation where a Member is a Member of a Committee and smuggles issues before the Committee’s report? Mr. Speaker Sir, the issue is in our report in the Local
Government, Rural and Urban Development Committee. So what happens? That is my question Mr. Speaker Sir.
THE HON. SPEAKER: Order, order. Hon. Phiri, I do not think
it was necessary for you to raise a point of order after my ruling. In future, be guided accordingly.
+HON. NDEBELE: On a point of order. Good afternoon Hon. Speaker. It has been four months after I requested Hon. Mupfumira to give a Ministerial Statement on the distribution of food in the country. A year has lapsed since she has done that. Maybe she is just disrespectful to me but I am seeing that she is actually in contempt of the House and the people. I do not know what really we can make on that one because, that work of food distribution along partisan lines is continuing all over – in Magwegwe, Luveve and all over the country. Why is it that she is not able to make a Ministerial Statement on that?
THE HON. SPEAKER: Hon. Mupfumira, please approach the
Chair.
+THE HON. SPEAKER: Hon. Ndebele, I have talked with the Minister and she has said she will bring the Ministerial Statement tomorrow.
ORAL ANSWERS TO QUESTIONS WITHOUT NOTICE
*HON. CHINOTIMBA: Thank you Mr. Speaker Sir for giving me this opportunity to direct my question to the Minister of Finance. I asked him yesterday but I want this put on record. Minister, people are being robbed of their money especially the old women who want to live in peace; they are being robbed because we are using plastic money and swipe machines. You will realise that when you buy a loaf of bread using swipe machine for just a $1, the bank charges you $5 for that transaction. That means the cost of bread is $6. If a customer buys a shirt for $20 from a shop...
*THE HON. SPEAKER: Order, order, Hon. Chinotimba. May
you please go straight to your point? Do not give narratives, please ask your question.
*HON. CHINOTIMBA: My question Mr. Speaker Sir is that good practice or it is daylight robbery that when you swipe, the bank charges are so high. When you buy bread for a $1, the bank charges are $5. If you make an RTGS transaction, an amount of $5 is deducted as bank charges, if you withdraw cash, you will also have some deductions made on your account but if you are using cash, there are no deductions. Now does it mean that we are being encouraged to use plastic money so that we may enrich financial institutions? May we please have an explanation to this daylight robbery that is going on to people who use swipe and yet receive such high bank charges?
*HON. CHINAMASA: Mr. Speaker Sir, I would like to thank Hon. Chinotimba for asking such a pertinent question regarding financial transactions using swipe machines, whereby an individual who buys a loaf of bread for $1 and the bank charges are $5. This means the cost of bread is now $6. My response is, if that is happening in the banks, this is daylight robbery. I will hold discussions with the Reserve Bank Governor, Dr. Mangudya so that this anomaly is rectified.
My request to Hon. Chinotimba and other affected victims of this daylight robbery, I would like them to submit proof that they bought something for such an amount such as bread and the transaction cost is $5. On this particular day, I withdrew a certain amount and $10 was deducted. I am appealing to the people of Zimbabwe, the business people of Zimbabwe and individuals to submit proof to the RBZ
Governor and this problem will be resolved.
*HON. CHINOTIMBA: Mr. Speaker Sir, my supplementary question is, he is the Minister of Finance under whose his ambit the RBZ falls. Why should he advise me to hold talks with the RBZ Governor yet my plea is that we have told him of the problem and it is up to him to solve this problem instead of advising me to go to the RBZ Governor.
He, as the Minister of Finance should go and hold meetings with the RBZ Governor to solve this problem.
*HON. CHINAMASA: Mr. Speaker Sir, I completely agree with the sentiments raised by Hon. Chinotimba. Before I hold talks with the RBZ Governor, he would have heard this question because this is live broadcast but why I am advising him to approach the Governor is that the Governor will ask for proof because we cannot debate on something that has no proof. Hence, we need to give him tangible evidence that he can operate on so that we are aware of the particular bank that is conducting this daylight robbery. We will take remedial measures but if this is generalised, we will not be able to take punitive measures against the bank.
*THE HON. SPEAKER: Order. Hon. Chinotimba, you asked a question and when the Minister was responding you were holding your own talks with Hon. Zindi. You must pay attention.
*HON. ZINDI: Thank you Mr. Speaker Sir. My supplementary question is that, we are grateful with the response by the Minister but we have heard information from members of the public who try to seek a meeting with the RBZ Governor. The protocol is very tedious; hence, we want the Minister to be aware of the fact that it is not easy to hold meetings with the RBZ Governor. The road you have to follow is very long.
THE HON. SPEAKER: What is the supplementary question?
*HON. ZINDI: My supplementary question is that the Reserve Bank of Zimbabwe Governor should be aware of the fact that it is not easy to meet with him because there are a lot of protocols which have to be followed before you meet with him. Therefore, we are asking the
Minister of Finance and Economic Development to go and talk to the RBZ Governor to reduce some of these hard conditions to hold meetings with him.
HON. CHINAMASA: Mr. Speaker Sir, I will try and intervene in order to create an enabling environment that is easier for people to meet with the RBZ Governor. My request to the House is that they should bring evidence that this is the bank which is the culprit and promoting daylight robbery. When the bank is named and shamed, the solution is going to be found. I would like to know some of the people who would like to meet with the RBZ Governor and I will arrange for the meeting to be held.
*THE HON. SPEAKER: Hon. Minister may you please give
further explanation in reducing the route which is needed to meet with the RBZ Governor because when people try to meet with him they have to go through a hilly and rugged terrain to hold the meeting.
*HON. CHINAMASA: Hon. Speaker, I think you did not
understand me properly when I gave the explanation. I said I will hold a meeting with the RBZ Governor and try to solve this problem. I thank you.
*THE HON. SPEAKER: Order, order! Hon. Minister, maybe I
did not express myself well in Shona. May you please clarify, we have a lot of people who want to hold meetings with him and it may be difficult to hold meetings with different people at different times. Would you make an arrangement so that it can be easy for the meetings to be held?
*HON. CHINAMASA: I understand you. What I know about the RBZ Governor is that he is somebody who is not rigid. You can meet him whenever you make an appointment with him. I have known that he had held various meetings with many groups who wanted to meet with him. Mr. Speaker Sir, you will discover that some of these people who say they cannot hold meetings with RBZ Governor, have no evidence that they made an effort and failed to meet with him. The Governor operates on an open door policy. If you want to have a meeting with him it is easy.
*THE HON. SPEAKER: I think the bottom line of the matter is that the Hon. Minister will hold a meeting with the Governor to straighten this protocol.
*HON. MAZIWISA: On a point of order. Thank you Mr. Speaker Sir. The point raised by Hon. Zindi is that we have been informed that it is difficult to hold a meeting with the RBZ Governor. As a legal practitioner, what people are saying is just hearsay. As an individual, I have evidence that it is easy to meet with the RBZ Governor. Otherwise, what we are doing here is wasting precious time talking about hearsay. – [HON. MEMBERS: Inaudible interjections.] –
THE HON. SPEAKER: Order, order! Hon. Members, do not
invite the Chair to send one of you out. When I call you to order, you must listen. Your point of order is out of order.
*HON. MUNENGAMI: Thank you Mr. Speaker Sir. Still on the question raised by Hon. Chinotimba, my supplementary question is, may the Minister of Finance and Economic Development explain on the three tier price which we find in the shops, where the same goods are sold at different price depending on how you pay. A product can cost $100 when you are swiping, if you are using cash it will cost US$90 and if you want to buy in bond notes, that same product is sold at $120. So, we have a three tier system of cost of goods in our shops. Why should that be happening when we are assured by the Government that the value of the bond note is equal to the US dollar? Why should we have this anomaly? – [HON. MEMBERS: Inaudible interjections.] – THE HON. SPEAKER: Order, order!
HON. CHINAMASA: I thank the Hon. Member for his question
and I take note of the concerns that he has raised. The Reserve Bank Amendment Bill which is before this House, is addressing those concerns. It is coming up with a law to penalise and criminalise that kind of conduct.
*HON. MUNENGAMI: On that same note Hon. Speaker….
THE HON. SPEAKER: I did not recognise you. Hon. Members,
that issue of bond notes, I think it is being debated under the Reserve Bank Amendment Bill. So, can you raise your concerns there? Can we go to new questions?
HON. GONESE: Mr. Speaker, my point of order is that we have
not done justice to this issue of bank charges because the real issue is; they are obscene bank charges in this country and what the Minister is
…
THE HON. SPEAKER: Order, order, order. I think the Hon.
Minister has responded to that. Investigations will be made. We cannot belabour the point.
HON. CHAKONA: My question is directed to the Minister of Finance and Economic Development. My constituency is in the rural areas and there are no point of sale machines that are available for shop owners. What is Government doing to ensure that point of sale machines are available to operators especially in the rural areas because they do not have access to these machines?
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I thank the Hon. Member
for his question – [HON. MUTSEYAMI: Inaudible interjections.] -
THE HON. SPEAKER: Hon. Mutseyami, can you leave the
House?
HON. MUTSEYAMI: Thank you Mr. Speaker Sir.
HON. CHINAMASA: I thank the Hon. Member for…
THE HON. SPEAKER: Order, order, order. When a question has been asked by an Hon. Member and the Hon. Minister has to respond, you have to listen to the response and no interjections should be made. If you have to ask a supplementary question, you will have to wait until the Hon. Minister has finished.
HON. CHINAMASA: Mr. Speaker Sir, I thank the Hon. Member for his question and I agree with him that as of now, we do not have sufficient point of sale machines to distribute countrywide. These machines have to be imported. Resources are being mobilised on a daily basis to ensure that we import more point of sale machines which eventually should be able to reach every shop where there is connectivity.
HON. J. TSHUMA: My supplementary question is on the issue of the same point of sales. I have discovered that most of the time, it is difficult to transact. What is the Ministry doing to try and improve the efficiency of the connectivity of transactions so that they are user friendly? At times one has to wait for more than ten minutes before a transaction is concluded and this becomes an inconvenience to the users.
HON. CHINAMASA: My understanding is that where it is difficult to transact, it is a problem with the network or interconnectivity. We have referred this issue to the Ministry responsible. Clearly, it is a network issue. If there is no network, there is no transaction. It is a matter that will be addressed more appropriately by the relevant Ministry.
*HON. MAJAYA: My question is directed to the Minister of
Transport and Infrastructural Development, Hon. Dr. Gumbo. It has come to my attention that the bad state of roads in Harare has been declared a national disaster. Are you also going to include rural roads in this programme of declaring them a national disaster so that people may travel comfortably and safely?
*THE MINISTER OF TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT (HON. DR. GUMBO):
Thank you Mr. Speaker Sir for giving me the opportunity to respond to this important question.
The disaster on road conditions was declared by the Minister of Local Government, Public Works and National Housing yesterday who is responsible for urban areas and transport. I am responsible for disbursement of the money which is used on the repair of these roads in the four categories. One of the categories is RDC in rural areas, who also work hand in hand with DDF. We also have the Ministry of Transport and Infrastructural Development who also operate in those areas maintaining the roads through the Department of Roads.
I understand your concern. From 09 to 22 January 2017, I was moving around the country examining the state of the roads. During this expedition, we held discussions with local road authorities in your areas. We got first hand information that in some places, there were no roads left to talk about. The tarred roads are now full of potholes. Some of the roads are no longer usable. We had meetings with the road authorities and promised to give them money for repairing and constructing those roads. I urge you to be patient because when they get the money, it may take time to work through all the projects.
*HON. MANDIPAKA: My question goes to the Hon Minister of Sport and Recreation, Hon. Hlongwane. Hon. Minister, you are aware that Zimbabwe is a soccer loving nation. Given that background, what is Government policy that ensures that we have high performance and better results achieved when our national team goes out to play in international soccer competitions given what happened in Gabon; that frustrated a lot of our citizens? I thank you.
THE MINISTER OF SPORT AND RECREATION (HON.
HLONGWANE): I would like to thank the Hon. Member for a very important question which is current and is contemporary in respect of the performance of the Warriors in Gabon. As Minister of Sport and Recreation, on behalf of the sports sector, I apologise to the nation for the performance that was shown by the Warriors in Gabon. I acknowledge that the whole country, to a larger extent is a cemetery of dead emotional bodies owing to that performance which was under expectation.
Going forward, in respect of the particular question around high performance or the setting up of high performance centres in the country, that is a matter that Government was seized with. One of the priority areas in the National Sports and Recreation Policy is around the development of the academy in so far as it speaks to two critical issues. The first is that the academy situates around the development of selected talents within the provinces, districts as well as at the national level. We are working in collaboration with institutions of higher learning most of which are endowed with well equipped sports facilities to accredit them to become centres of sporting excellence which, in other words leads to a high performance sector feeds into the high performance programme that we think will go a long way in terms of assisting the incubation of talent by institutions of higher learning at the levels of colleges as well as universities across the country.
The second is that we are working with the Ministry of Lands in indentifying country clubs across the country. We have since concluded that process; we have indentified 105 of those. Most of the country clubs are endowed with multi sport court facilities to train cricket, soccer, netball, rugby, swimming, et cetera. It is our view as Government that we must engage in a process that will get the Ministry of Sport and Recreation involved in so far as turning those clubs into academies across the country so that the incubation of talent from all over the country is realised in those areas. I thank you Hon. Speaker Sir.
*HON. MATUKE: Thank you Mr. Speaker Sir. I am directing my
question to the Minister of Transport and Infrastructural Development and Infrastructure. My question is with regards to the toll gates and pertains to the MPs.
THE HON. SPEAKER: The issue is on supplementary question.
*HON. MUKUPE: My question is directed to the Hon. Minister Hlongwane. We have noticed that the press is telling us that each individual in the Warriors Team was given an amount of US$85 000.00. The question is - do we have a policy whereby these players can be taken to a national service centre so that they work for the money they were given. It is such a large amount yet they produced nothing.
THE HON. SPEAKER: Order, order, order, Hon. Member in a
checkered jacket, can you leave the House. Hon. Mukupe, your last part of the question is not quite clear. Can you clarify it?
*HON. MUKUPE: The last part of my question is - these players were given lots of money and they courted the send off. We expected that having paid them handsomely they should perform as per expectation. As a bitter nation, we are saying as Government, can we not punish these players because it was done in some other African countries that players who performed dismally despite the support were taken to army barracks and worked hard for the money.
*HON. HLONGWANE: Thank you Mr. Speaker Sir. I thank the
Hon. Member for such a question. What I can confirm is that we gave ZIFA the money which they requested for. We are working hand in hand with the Sports and Recreation Council and at the group stages where they participated, they were paid before they even played the games. As Government, we did our best to financially support our boys in order to motivate them and to have a better welfare. As Zimbabwe, we do not have a policy of detaining our players in military barracks. May be for 2019, we need to be working towards creating a team which may lead us to the finals of the AFCON instead of taking such punitive measures against our players.
HON. GONESE: Thank you Mr. Speaker Sir. I think we take note of the assistance which was given to the Warriors by the Government. However, my supplementary question to the Hon. Minister is whether
Government has got a policy of discrimination because we had the Mighty Warriors who went to the Rio Olympics, – [HON. MEMBERS:
Hear, hear.]- Who also went to the continental championships here in Africa? They were not given anything and as far as I recall, when they returned from the Rio Olympics, those from Harare were given US$5.00 to return home and those from outside Harare were given US$15.00 only. – [AN. HON. MEMBER: Ahh.]-We have a situation where the Warriors were given up to US$15 000.00 just for appearance fees alone.
Does the Government want to discriminate? – [HON. MEMBERS: Hear, hear.]- Why Government cannot assist the Mighty Warriors who actually represented Zimbabwe at a higher level than that where the Warriors went to the Africa Cup of Nations? If, the Minister can respond to that. – [AN. HON. MEMBER: Thank you.] -
HON. HLONGWANE: Thank you Hon. Speaker Sir. Let me state
categorically that Government does not have a policy of discrimination on the basis of gender. If anything, a multiplicity of policies in various Ministries do speak to the very important need of realising gender parity, gender equality across most of the work that we do. In respect of the particular matter that the Hon. Member raises, he gives an example to do with the Olympics. Now, there are structures that manage different competitions. In respect of the Olympics, we have the ZOC which is an appendage of the International Olympic Committee. It is that organisation that runs all Olympic activities including budgeting and financing.
They did request I must make this point Hon. Member, they did request for funding from Government we requested for that kind of assistance from the Minister of Finance who is here. I must express my most sincere thanks to the Minister of Finance that he did extend a hand and we did fund the Olympic delegation to the tune of US$120 000.00 as Government - that we did. Now, the management processes, the administrative processes around how much an individual athlete is paid et cetera do no not situate within Government structures. Those are done by the responsible authority and in this particular case, the ZOC. It is regrettable that there was serious miscalculation on the part of ZOC to the extent that they paid out a mean transport allowance to the Mighty Warriors. The untold story around that is that their full participation allowance was actually paid whilst they were participating in Rio by the ZOC.
The payment of US$5, et cetera to the Mighty Warriors was not supposed to have happened especially given that they had a travelled a long trip coming into Zimbabwe. Ordinarily, the way we arrange our things is that they would have been provided for an overnight accommodation for them to be able to rest and then proceed to their various destinations the following morning. That did not happen and corrective action is being taken in respect of that. I thank you.
HON. GONESE: On a point of order Mr. Speaker, there were two aspects to my question. The Mighty Warriors participated in two major tournaments, one was the Rio Olympics and the other was the African Cup of Nations for the ladies here in Africa. His response was related to the Olympic Committee but I want to believe that the same principles which applied to the Warriors’ participation at AFCON would also be the same principles which should apply to the Mighty Warriors participation at the female version of AFCON. They were not given similar treatment like the Warriors who were given over a million dollars resulting in each player pocketing up to $85,000.
HON. HLONGWANI: Let me just restate that Government does
not have a policy of discrimination on the basis of gender or other basis. In respect of the AFCON, it is true that the Mighty Warriors were not paid as much as the Warriors were paid. They were not paid $5 but it was certainly not as much as their male counterparts. The way Government operates is on the basis of the National Sport and Recreation Association submitting a budget to the SRC for onward transmission to Government. This becomes the basis on which processes then begin to be engaged. The requests around the Mighty Warriors campaign for AFCON did not get anywhere near a million dollars as was the case for the Warriors. I do not have the specific figures right now but I am prepared to bring those figures next week to clarify that particular matter. However, the matter around the funding of the Mighty Warriors, I did as the Minister put together a committee
made up of corporate members to come in and try to mobilize resources. This was after it had proven to be very difficult for us to extract funding from Treasury in respect of that particular trip. I also want to report that even as we put together a committee of members of the corporate sector, it was not easy for a meaningful mobilisation of resources to be realised. This speaks to the general attitude and national psyche around women sport in the country. This is a matter that all of us have to deal with head on. I thank you.
HON. MLISWA: Mr. Speaker Sir, I stand here as a holder of a
degree in sport. I want to be very clear in the debate on sport in this country. The Minister did apologise to the nation but I do not know why he was apologising over a loss. The issue that has to be addressed is what is Government’s policy pertaining to the success of sport in this country. There has got to be preparedness. He admits that there were not enough resources so the team was not going to win. Therefore, he cannot then say that from a policy point of view the issue is not about the players or establish academies in the country. We have the players but what we do not have is Government’s involvement in sport. I sit on the Sports Committee...
THE HON. SPEAKER: What is the supplementary question?
HON. MLISWA: The supplementary question is; what amount of money has the Minister put forward for his plans to be supported from a policy point of view. He cannot stand here and talk about the academies he intends to set up without us as a committee having had cite of the amount of money he requires. What it means is that he is not telling the truth because the budget does not involve the academies he is talking about. What is critical is the Government’s involvement. The Zambian Government funds the national coach and all the national teams so that they do not have any problems. So what is Government’s policy in ensuring that we do not experience losses because Government comes in as the biggest stakeholder and not the corporate world? That is what he must respond to in terms of their involvement as a department. I thank you.
HON. HLONGWANI: Thank you for that important question. I am happy that he has a degree in sport. Hon. Speaker, success by any national team is not a function of financing alone. Success in any sporting activity - podium performance is realised as a function of a comprehensive package of activities being put together. I am surprised that he dismisses the whole question of academies as feeding into the performance process. That is an agreed principle in sport across the world that as part of your structures you do need an academy system in place to process talent. It comes in as a laboratory to process talent so that at the end you are then dealing with elite athletes that come out of that process. That is what we are doing as part of feeding into the process of realising podium performance results.
In respect of funding, the sport and recreation sector is an integral and intravenous part of the rest of the economy. It does not operate in isolation. The challenges in respect of resource mobilisation that Treasury is faced with are well documented and we all know that. We know that there are instances when we request funding and we get the funding but there are instances when we do not get that funding. We are all quite clear about that. Let me just demonstrate our intention as a Ministry in terms of funding of sport. In 2016, we put up a bid of $35 million to Treasury to fund our activities. What we got was about $2.5 million. This year we put a bid of $15 million and we got something like $4 million. That was the vote that was appropriated to the Ministry of Sport and Recreation. So, I would want the Hon Member to understand and appreciate that there are things that we are able to do and some that we may not be able to do. Right now we have finished working on a proposal on funding sport that I am not at liberty to disclose until Cabinet has disposed of that process. It is my hope as the Minister of Sport that if we have a meeting of minds in respect of that particular document, then we should be able to realise a new dispensation visiting us from a funding point of view, as far as sport and recreation is concerned.
*HON. CHINOTIMBA: My supplementary question is that when you gave money to the Warriors what was your target? You targeted one month but they were only there for four games and did not complete a month. Where is the money, they should return it because the money that you gave them was for accommodation but they did not use all the money. So, this House is saying they should bring back the change since they did not stay a full month. Where is the money, they should return it.
*HON. HLONGWANI: The money that was paid to the Warriors was for the three games that they played. It included appearance fees and bonuses. Even if it was not on the contract, ZIFA chipped in to pay the bonuses for the draw because they were saying if they did not receive that money they would not play the next match. So, we went out of our way to encourage them to forge ahead knowing how important soccer is and how the people of Zimbabwe love soccer. So there is no change which should be returned Hon. Chinotimba. I understand what he is saying that the people where going there to perform and they were supposed to deliver but they did not deliver. So, they should look at
their remuneration. The reason why we paid them before they played is that there should be trust between the players and ZIFA.
THE HON. SPEAKER: Hon. Minister, the question is, were the players paid for one month.
HON. HLONGWANE: No.
THE HON. SPEAKER: If they were paid for one month then
they must bring back the change. That is the question.
HON. HLONGWANE: Hon. Speaker Sir, I did clarify that they
were paid for the three matches that constituted the group stages of the tournament.
THE HON. SPEAKER: Not one month?
HON. HLONGWANE: Yes, everything to do with that.
*HON. MATUKE: Thank you Mr. Speaker. I direct my question to the Minister of Transport and Infrastructural Development concerning the Members of Parliament. They are supposed to pay toll gates when they are doing their duties in their constituencies. Most of the Members of Parliament when travelling are representing the Government and they will be helping the constituents so we want the Minister to explain if what came out in the papers is true?
*THE MINISTER OF TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT (HON. DR. GUMBO):
Thank you Mr. Speaker for the question asked by Hon. Matuke. Hon. Speaker we did not mention that Members of Parliament should pay toll gates. They have an exemption which is effected by ZINARA. If there is any information pertaining to that, it is not true they do not pay at toll gates – [HON. MEMBERS: Inaudible interjections.] –
THE HON. SPEAKER: Order, Hon. Mliswa and Hon. Ziyambi.
You cannot ask a supplementary question on manyepo. Thank you.
*HON. SARUWAKA: Thank you Mr. Speaker. My question is
directed to the Minister of Lands and Rural Resettlement Hon. Dr. Mombeshora. I want you to clarify the Government policy concerning people who have been resettled whether they can change the land use from farming and subdivide the farm into residential stands pocketing the monies in the process. What is the Government policy in such circumstances?
*THE MINISTER OF LANDS AND RURAL
RESETTLEMENT (HON. DR. MOMBESHORA): Thank you Mr.
Speaker Sir. I want to thank the Hon. Member for his question because it is very pertinent. Our Ministry of Lands and Rural Resettlement is there to allocate land for agriculture. So, the land that we give to people, whether it is model A1 or A2 is for farming, it can be animal farming, crop farming or ranch farming. That is what we look at when we give out land. At times we can allow the change of use of land if it does not exceed 10% of that land. We come across people who want to build factories or shops on the land that we give them. We look in that area to see whether the thing they want to erect is useful in that area. If there are no shops or grinding mills we can allow that.
If it is for residential stands we do not allocate land for that use.
What happens is that the people who engage us is the Ministry of Local
Government, Public Works and National Housing because it is under their prerogative to do that. If they do not have any land, if they are any farms which are near towns, the Minister will approach the Minister of Lands and Rural Resettlement asking for that land. We go and look at that land and see what you would have put there, if you have settled people there we will ask them for lenience before we relocate those people.
So, when we give that land to Ministry of Local Government,
Public Works and National Housing we do not give it to individuals.
Now it is up to the Minister of Local Government, Public Works and National Housing to allocate that land for residential stands. We do not encourage them to engage our farmers to be developers because we have seen that most of them were running along those lines and most farmers where now speculating around that area. So, we do not allocate land for residential stands. I thank you.
*HON. PARADZA: Thank you Mr. Speaker. My question is directed to the Minister of Finance and Economic Development Hon.
Chinamasa. Mr. Speaker, cotton growers throughout the country want to know when they will also benefit from the current 5% export incentive scheme for exporters which is enjoyed by tobacco farmers. This is because cotton is also exported as lint. Can the Minister please clarify the Government position on this issue? I thank you.
*THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Thank you Mr. Speaker. I
thank the Hon. Member for the question. What I want to say is that I am taking it up and we will look into it then I will bring the answer back. I thank you.
HON. CHINANZVAVANA: Thank you Hon. Speaker. My
question goes to the Minister of Primary and Secondary Education Hon. Dr. Dokora. I would like to hear from the Minister to ascertain the feasibility of the implementation of the new primary and secondary school curriculum given that by the beginning of term we had no new syllabi to commend the curriculum on the ground in the schools and as well we still do not have new text books to commend this new curriculum. What publishers, if any, are there that are publishing books on mass displays as well the concentration span of the junior scholars, ECD to Grade 3 of 7 hours per day could be too much psychologically on the scholar. Has he ascertained the feasibility of the curriculum? I thank you Hon. Speaker.
THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): Thank you Mr. Speaker Sir. I am happy to be able to respond to the Hon. Member who raised questions relating to the mainstreaming under Phase 2 of the new curriculum. In the first instance, the reference to the existence of the syllabi, which in common language is the group of activities and learning targets designed for a particular grade or form level, she makes the reference that this does not exist in the system…
THE HON. SPEAKER: The Hon. Member makes a reference.
HON. DR. DOKORA: Yes, the Hon. Member makes a reference.
THE HON. SPEAKER: Not she.
HON. DR. DOKORA: I take guidance from the Chair. I wish to
state therefore in categorical terms as follows; that the soft copies of the syllabi were distributed to all school institutions in the period, last week of September and the beginning of October. That distribution earmarked each of our Better Schools Programme (BSP) centres and these exist in every one of the 72 administrative districts of this country. Those BSP outfits are kitted with some of the latest printers and photocopiers and other equipment. Teachers and school heads ordinarily congregate at those centres in order to receive, get educated, instructed and oriented in terms of the new syllabi. That was the first instance.
The second instance was the distribution of the physical copies of the same by the beginning of the term. In other words, once the soft copies are available and teachers and heads are able to use them and the facilities for printing and reproduction at the BSP, the pressure for the actual hard copies was lessened. That is the first part. I take particular interest in the orientation of the second part to say that, ‘where are the books?’ A process of working with the book publishers has been under way since we begin the reform consultation process. Indeed, in the beginning of 2016, located at ZIPAM, the Ministry devoted weeks on end with support from the education partners, UNICEF and others.
In looking at the material that is in existence and in use at the moment and say in each of these materials, what group of chapters are still relevant as they speak to the shift that we are making in the new curriculum, there is that bit. There are entirely new disciplines, which include one that the Hon. Member had spoken about. Guidance and Counseling at Form One going forward to Form Six, which everyone would agree is an important area of learning for all our kids. That already has material which is available on the market. Before I came here, I was in a meeting where we were deliberating on how to supply by providing some budgetary support to schools to be able to acquire some of these materials. So the existing material has been evaluated to ensure that it is aligned.
Further, the new materials are on the market, designed for support to the new curriculum. The specific instance of mass displays – let me say this Hon. Speaker; in 2012, way ahead of the curriculum reform, the Ministry dispatched some under 35 by age, teachers drawn from all the provinces to China. They spent a good seven to eight months there oriented towards the acquisition of skills in mass displays. Those of you who watched the displays at the last independence celebrations last year will appreciate the degree of finesse that was achieved at that display. That is the recognition of the skills that these teachers acquired on their sojourn in China. They also decentralised that training to their provinces and districts. It is not as if we are starting at zero; there is a basis therefore to mix that skill from the Chinese specialised training and what our colleges in this country have been producing in terms of physical education and sport teachers. I would like to think that I have done justice to the questions that have been raised. Thank you.
HON. CHINANZVAVANA: Thank you Hon. Speaker. Given
that the array of issues that are coming up and need answers seem to be momentous, may we ask for a Ministerial Statement from the Hon.
Minister so that we clear all the issues and if need be, we go back to the people and ask.
HON. DR. DOKORA: I would like to defer to the Portfolio Committee because they had already made some indication. We could engage at that level and then perhaps subsequently make the Ministerial Statement. However, I am quite happy to engage here. The Portfolio Committee had indicated that they have engaged my officials and they will be happy to engage with me as well.
THE HON. SPEAKER: Hon. Minister, are you suggesting that
we get the report first from the Committee and at that stage, you can give a comprehensive response?
HON. DR. DOKORA: Yes.
Hon. Members having stood up to ask questions.
THE HON. SPEAKER: I am looking at the watch.
HON. K. SIBANDA: Mr. Speaker Sir, I propose to extend the time by 30 minutes.
THE HON. SPEAKER: Pardon!
HON. K. SIBANDA: Can I propose to extend the time?
THE HON. SPEAKER: Is that what you wanted to say?
HON. K. SIBANDA: Yes, that is what I wanted to say.
THE HON. SPEAKER: Clerk, clerk. Is the Clerk sleeping? Is there any objection?
HON. MUSVAIRE: I object Mr. Speaker Sir.
THE HON. SPEAKER: Order, order! Sit down. Order Chief
Whip. Order please! Because there was an objection, we cannot extend the time. I do not want us to waste time.
HON. CHAMISA: I am sure that the Hon. Member is not
objecting Hon. Speaker. I am very sure because he did not quite get you.
THE HON. SPEAKER: Okay, order, order! Hon. Member, did
you object or not.
HON. MUSVAIRE: Thank you Mr. Speaker Sir, I am objecting.
Questions Without Notice were interrupted by THE HON.
SPEAKER in terms of Standing Order Number 64.
ORAL ANSWERS TO QUESTIONS WITH NOTICE
THE HON. SPEAKER: Order, order! Chief Whip, you are the
first one to listen to the Chair.
HON. GONESE: Mr. Speaker, before Question Number 2 is
deferred, I have a point of order. You will note that these questions relating to the Minister of Health and Child Care have been on the Order Paper, the first question was on the Order Paper from the 23rd of November, 2016 and the second question was on the Order Paper from the 30th of November, 2016. This particular Minister has now become a stranger in this House. I do not recall the last time I saw Hon. Minister Parirenyatwa. I believe that he is not taking the business of this House seriously. I will request that the Minister of Finance and Economic Development, who normally acts on behalf of the Leader of the House, advises the Minister of Health that this House is seriously concerned by the disdain being shown by the Minister of Health on answering questions because he does not have to attend personally. His Ministry officials can prepare a response and another Minister can come and read out the response. Thank you.
THE HON. SPEAKER: Order, Hon. Minister Chinamasa. I
believe you are the Acting Leader of the House and you have heard the concerns, the request that you have a tete-a-tete with your colleague
Hon. Minister of Health and Child Care to kindly respond next week.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): I will do so Mr. Speaker
Sir, but I must observe that all these questions were there at the end of November. We had the festive season and yesterday was the first day that we met. Most Government offices would have been closed or half closed during this festive season, but I will bring this to the attention of the Hon. Ministers. Most of the questions on the Order Paper are end of
November preceding the festive season.
THE HON. SPEAKER: Hon. Minister, are you suggesting that
Parliament should have waited until these officials came back from holiday or whatever?
HON. CHINAMASA: No, I am saying that for the greater part of this period, Parliament was not in session and a lot of Hon. Ministers have been on leave and are still on leave. I am not proffering excuses but just an explanation so that we understand that the default is not intentional.
THE HON. SPEAKER: Hon. Gonese, I am sure you have heard
what the Hon. Acting Leader of the House has said and hopefully next week, we should have some responses accordingly. Hon. Maridadi, did you want to say something?
HON. MARIDADI: Yes Sir.
THE HON. SPEAKER: I hope you are not against the ruling.
HON. MARIDADI: No, I am not against the ruling Mr. Speaker
but quite honestly, for a Minister to come here and give an excuse that Ministers are on holiday and are on leave when we know that every Ministry has a Deputy Minister. The Minister does not research for the answers. Those answers are researched by officials that are at work and that is a lame excuse by a Minister and it is not acceptable. It is an insult to this nation. People are waiting for answers and the Minister has the audacity to say they are on leave. Thank you.
THE HON. SPEAKER: Order, Order! When the Chair has ruled,
I asked you very clearly whether you were going to contest my ruling and you said no, and you do the opposite. I do not think that is honourable. I said let us wait for the Ministers to respond next week. Is there an Acting Minister of Local Government if the Minister of Local Government is away?
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): I am not aware. I think the
Minister of Local Government is at work. He is at work because I have had occasions when I have had joint events with him and he was coming from his office. So, I want to assume that he is at work and only yesterday he had a joint event with the Minister of Transport and Infrastructural Development. He also has a deputy.
I have no explanation why he is not here and accordingly, with your indulgence Mr. Speaker Sir, I want to move that all questions pertaining to the Minister of Local Government, Public Works and
National Housing be deferred to next week and these will be questions 3,
6, 7, 8, 9, 10, 11, 12 and 13. The Hon. Minister of Mines and Mining Development is here and he has got his answers. So, if all these questions from 3 to 17 be stood over until questions 18, 19 and 20 have been disposed of.
THE HON. SPEAKER: Hon. Minister of Finance and Economic Development and Acting Leader of the House, by your own admission the Minister is around and not on leave. I think that is the issue Hon. Maridadi wanted to raise and I think the House takes serious objection to non attendance by the Hon. Minister because he has not written to Parliament to say he will be on some other engagements. I have got a list of Ministers here who have written to Parliament to say they will not be around because of other commitments and those that are on leave. So, I think the House will request the Acting Leader of the House to convey the message that we are not happy at all.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): I take note and I will raise
the issues with the relevant Minister or relevant Ministers.
THE HON. SPEAKER: Appreciated Hon. Minister.
CEDING OF CLAIMS NOT BEING MINED TO SMALL SCALE
MINERS BY LARGE SCALE MINES
- HON. M. M. MPOFU asked the Minister of Mines and Mining Development to explain to the House in detail the Cabinet decision that large scale mines should cede claims that are not being mined to small scale miners and if this policy also applies to
Government owned mines, for example Jena and Sabi Mines which are owned by the Government.
THE MINISTER OF MINES AND MINING
DEVELOPMENT (HON. CHIDHAKWA): Thank you Mr. Speaker
Sir and thank you to the Hon. Member for the question. The Minister of Mines and Mining Development encourages efficient utilisation of mining concessions. In that regard, large scale miners are encouraged to cede mining claims which they are not currently operating to small scale miners in an effort to empower the indigenous people and to enable new investors to participate in the mining sector.
With regards to the chrome sector, Cabinet made a decision that ZIMASCO and Zim Alloys which owned 80% of chrome claims in the country, release 50% of their claims to Government so as to open up opportunities for other players in the sector including small scale miners.
The ceding of the claims is in line with Government’s use it or lose it policy which seeks to ensure that mining claims are utilised and not held for speculative purposes.
In the previous years ZIMPLANTS was also requested to release some of its ground to pave way for investment in the platinum sector.
However, it is imperative for Hon. Members to understand that Government mining concessions such as Jena and Sabi are strategic economic planning and development projects of Government and for the country therefore, Government would seek strategic partners to implement projects where necessary for the benefit of the nation.
Mr. Speaker Sir, let me just add and say that I keep referring to Government policy. The real solution to dealing with speculative holding of mining claims is in fact the passing of the Mines and
Minerals Act which sits before you. One of the clauses in the Mines and
Minerals Act calls for a ‘use it or lose it’ so that we convert that policy position into a legal position. What then happens is that it becomes incumbent upon the Minister to look at who is holding too much ground and cannot use it.
What I am doing at the moment is to go to companies and beg them to release ground for the purposes of reallocations, but once the Mines and Minerals Act is passed by this House, it will empower us to reduce the large tracts of ground that are held by some companies and encourage other mining companies to also start their activities. Thank you Mr. Speaker Sir.
HON. MARIDADI: I think the question here then relates specifically to Jena Mine and Sabi Mine which are owned by
Government according to Hon. Mpofu. Those mines are owned by Government and the Hon. Member of Parliament is saying those mines are not in use, which means Government is not mining them or if they are, they are not mining them efficiently. So, the question is, are you holding on to those mines for speculative reasons until the Mines and Minerals Act has passed through Parliament? What is the position in respect to these two mines?
HON. CHIDHAKWA: Thank you Mr. Speaker Sir and thank you for that supplementary question. I think the Hon. Member refers to Jena, Sabi and I add Elvington and others. One of the things that we have been accosted on by Parliament is the failure by us to resuscitate the operations of these Government companies and so it is upper most for us this year to ensure that Jena begins to operate. We will be providing equipment to Jena, Sabi and Elvington from a gold mining perspective and for us therefore, to release the gold concessions to the private sector when in fact we are trying to rebuild these companies to come up would be to defeat the original idea of having ZMDC being
rebuilt.
So, I want to accept that as it is, the fact that the concessions are redundant does not speak to our policy of ensuring efficient utilisation, but to the extent that we want to resuscitate the companies on the back of these concessions and I want to assure this Parliament that we are close to finalising a deal for equipment for the purposes of resuscitating the said mines. I thank you.
HON. NDUNA: Thank you Mr. Speaker and thank you Hon.
Minister for your eloquent answer, but my question to you is…
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Order, order Hon. Members. Order please. Please try to lower your whispers. They are getting louder and we cannot hear what the Hon.
Member is saying.
HON. NDUNA: My question to you relates to where you are saying there is going to be a ‘use it or lose it’. Where does the concept
‘abuse it and lose it’ come into place where I speak of depleting the road infrastructure in those areas where your mines that fall under your ambit or multinationals have actually gone on to the road and road servitude and excavated the road in form of open pits or open cast mining in particular areas in their locality with impunity and not rehabilitated or provided any other options. So, in my view this is abusing their mine and mineral rights. Is there a way that there can be ‘an abuse it and lose it’ concept in the same way you are going to employ the ‘use it or lose it’ concept; in particular where they are going into mining areas depleting the road infrastructure, excavating and putting open pits or open casts mining on the existing road, depleting it, eradicating and removing it from the face of Zimbabwe.
HON. CHIDHAKWA: Thank you Mr. Speaker Sir. The
provisions relating to servitudes are very clear even in the current Mines and Minerals Act. You cannot mine several metres on either sides of a road, a rail, a power line. You cannot mine several from even a residential house, and you cannot go 450 metres from a residential house.
Therefore, if there are any miners who are doing that, they are actually doing it in violation of the Mines and Minerals Act. We have been discussing with the Portfolio Committee – we will be tightening those because we have also noticed that people have done so with impunity, not just the large scale but even some of our small scale have gone into schools without due regard to the service that those institutions such as schools, hospitals are giving to our country. So, if there is any such activity that is taking place, Hon. Nduna, I would want to sit down with you, I was in your constituency yesterday and I had a beautiful time but I want to assure you that we will take action if anybody is doing that.
HON. HOLDER: Thank you Mr. Speaker. I just want to find out from the Minister of Mines and Mining Development. He spoke about Sabi and Jena mines, now that there is the ZCDC consolidation of the diamond mines, does ZMDC have the capacity to resuscitate those mines without triple P?
HON. CHIDHAKWA: Yes, we have built capacity. We have
been negotiating capacity for the purposes of resuscitating those mines. We have for a long time been looking for partners and all the proposals that if we had signed any of the proposals that we received from prospective investors, I think this House would really take us to task. A lot of the proposals were merely taking over the Government companies without anything they were prepared to put into the businesses. I want to assure you that as we speak, we have finalised a facility for equipment, I was in Jena and Sabi and we have now finalised a facility for the provision of equipment to all these institutions. I thank you.
NUMBER OF GOVERNMENT PROJECTS CONDUCTED BY
ZMDC
- HON. CHIMANIKIRE asked the Minister of Mines and
Mineral Development to inform the House the number of Government projects conducted by ZMDC and to explain the contribution they have made to the FISCUS in 2016.
THE MINISTER OF MINES AND MINING
DEVELOPMENT (HON. CHIDHAKWA): Thank you Mr. Speaker
Sir. ZMDC has a wide array of investment projects covering gold, chrome, graphite, copper, emeralds, tantalite, asbestos, tin and various exploration projects for platinum and energy minerals such as coal, coal- beth methane-gas and uranium.
However in 2016, the company has been targeting the revival of four operations, these include the Kamativi Tin Mine, Alaska Smelter and Refinery, Elvington Mine, Sandawana, Shabani and Mashaba. Suffice to mention that with regards to Mashaba Mines, the corporation has diversified to chrome mining in view of the spirited efforts by lobby groups and international community to ban the use of asbestos. A joint venture agreement was signed between Beijing Pinchang to resuscitate
Kamativi Tin Mine and the necessary due diligence carried out by
ZMDC.
Progress at Alaska Smelter and Refinery for copper extraction and refinery residues recovery continue. Refinery Arnold’s slag has been sent out overseas to potential buyers for assessment and offers since there is no capacity to extract locally. The Ministry of Mines and Mining Development plans to revive Elvington by raising funds through the sale of Elvington group dumps but as I said we also have a facility for equipment that is going to be provided to Elvington among the other two gold mines.
Furthermore, ZMDC engaged well side shaft sinkers intending to re-open Stalin shaft which collapsed leading to closure of Elvington mine, drafting of joint venture agreement is underway. The mine will open opportunities for resuscitation and future expansion of Elvington. Just by way of explanation, when Elvington collapsed, it became difficult for us to use the same shaft that had collapsed so for you to resuscitate Elvington, you have to sink another shaft and that is basically what is being referred to here.
The joint venture Sandawana Mine Project between Poly Mining and Sandawana mine and Trans Minerals for the mining of Adrian section was signed in mid- September 2016.
THE TEMPORARY SPEAKER: Order, Hon. Members, I do not
need to remind you again that you have turned this Chamber to be like beehive, lower your voices. I can hardly hear what the Minister is trying to put across.
HON. CHIDHAKWA: The JV Sandawana Mine project between
Poly Mining Pvt. Ltd and Sandawana Mine and Trans minerals for the mining of Adrian section was signed in Mid September 2016. The joint venture operationalisation plan was drafted and is now being implemented.
ZMDC is experiencing a revenue deficit; therefore no dividend has been paid to Government since 2016. Hon. Members ZMDC, from an asset point of view is probably the largest company in Zimbabwe but when you look at how those assets have been utilised or underutilised over the years, you can see – you have a good example of how we have not taken advantage of the asset as a country. I think that it is important for us to spend a lot of time on ZMDC, it is important for us to target the more lucrative aspects of ZMDC which are the gold side of things, we will be also pushing the platinum companies which are in joint venture with ZMDC which have not done anything over the last 18 months. We are now in a position to withdraw the concessions if those companies are not ready able and willing to progress with the projects as they were approved. There are about three or four new platinum concessions that were issued out and where not much work has happened.
Therefore, we have been writing to them to say we are now ready to withdraw those concessions if they are not willing to progress with them. So, I do hope that the effort that we are putting into ZMDC, this year 2017, will enable ZMDC and its subsidiary companies to come back on stream. I thank you.
THE TEMPORARY SPEAKER: Hon. Chimanikire, Hon.
Mpofu has a supplementary question; we give him first preference.
HON. CHIMANIKIRE: Mr. Speaker Sir, I just want to make a
correction as a point of order. He answered my question in place of
Hon. Mpofu’s question. He answered question No. 20 instead of question No. 19. So we can go on my supplementary question, then
Hon. Mpofu’s will come in.
THE TEMPORARY SPEAKER: In that case then, we may give
you the opportunity to answer your supplementary question and then we will revert to question No. 19.
HON. CHIMANIKIRE: I just want to ask the Hon. Minister that in view of the fact that Government took over the operations of Mashaba-Shabani Mine but has done nothing ever since then up to 2016 from 2010, should we not be looking at Kamativi, Elvington Mine and Mashaba? Mashaba was involved in what I would call a legal wrangle between Government and Mr. Mawere. Should we not hand-over some of these assets back to Mawere so that he can operate? As far as
Elvington and Kamativi are concerned, should we not be looking towards privatisation rather than biting more than what we can chew?
That is my opinion.
HON. CHIDHAKWA: Thank you Mr. Speaker Sir. It is not
Government policy at this point in time to privatise any of the mines. Government policy as of now is to look for strategic partners who will work with us as partners in the joint ventures. The reason behind it being that, I know that it is a difficult proposition – if we operate them and operate them well, Government will be able to get a dividend. If Government gets a dividend, and a lot of these companies have done so before - Hwange Colliery and all these companies were making money and they were declaring dividends to Government. We believe that we can bring them to that status and be able to operate them on that basis. So, I do hope that I have answered your question but at the moment, it is not Government policy to privatise any of the institutions but to look for strategic partners. Thank you Mr. Speaker Sir.
HON. HOLDER: Thank you Mr. Speaker. I am going back to what was being said by the Minister regarding Shabani-Mashaba Mines.
Shabani-Mashaba Mines have gold claims, chrome claims and lime claims. Why are we not utilising those because we are only relying on investors? Why do we not start mining that and then try and sort out from there?
HON. CHIDHAKWA: I am sorry I did not quite hear but the part that I heard was that Shabani-Mashaba Mines have gold and chrome claims and why are we not utilising those claims? The issue is capitalisation. Do the companies have the equipment, because a lot of the equipment are actually broken down and what we are doing now on both the earth moving equipment and the plant is to actually refurbish the plant particularly when you talk about Shabani-Mashaba, you have to refurbish the plant at an estimated cost of about $7 million and then you will have to bring in earth moving vehicles (EMVs). They do not have operating earth moving vehicles. So, that is where the problem is and that is what we are working on now. This is why I kept referring you to the fact that we now have a facility that is going to buy equipment for the purposes of resuscitating the said Government companies. Thank you.
HON. NDUNA: Thank you Hon. Minister. We are quite aware
that artisanal miners are forming a large constituency in terms of deliveries of gold to Fidelity or to Treasury. I am quite alive to the fact that you were in my constituency yesterday and you saw some of them. These miners are engaged and indulged in resource extraction in some of those claims that you are not holding for speculative purposes but you are still to engage in resource extraction yourselves. Would it be prudent therefore, to partner them seeing that they have no overheads whatsoever? They are individualistic in their nature – excavating as and when they can willy nilly. Would it not be prudent for you to group them, partner them and get a share from what you are not getting presently, because they are on the ground in your claims and they are excavating and delivering to Fidelity but without you getting anything.
Would it not be prudent to formalise a partnership with them? Tributary would be one of them but, a partnership would also give you dividends in the present status quo. Would it not be prudent to go that route?
HON. CHIDHAKWA: Thank you Mr. Speaker and I want to
thank the Hon. Member for the question. There are many ways of looking at different projects and different structures for progressing the projects. What you are recommending is a proposal that as Government, we can think about but, let me just say that even as you do that, the small scale companies do not do mining the way large scale companies do.
They go mostly for the high grade ores because that is where it matters. They can simply follow a belt and go for the high grade ores but when you do large scale mining, because of your economies of scale, you are able to do even the low grade ores and blend them with the high grade ores. Therefore, you do not sterilise resources.
One of the things that worry us right now is that in all the areas where the small scale miners are mining, all the low grade ores are being left out and they are mining the high grade ores. When you then get somebody to come and do the low grade ores, they have nothing to
blend the low grade ores with. Therefore, that resource then becomes useless unless you improve the technological capacity to extract the low grade ores. But I hear you, there is the business side which I think you are speaking to – that why are you leaving a resource idle? There is the technical side which you would also have to consider as you look at your proposal and I want to say we will think about it as we go through the various proposals and various companies and see how we can best deal with them. Thank you.
POLICY ON CLOSED MINES WHICH USED TO PRODUCE GOOD
QUALITY GOLD
- HON. M. M. MPOFU asked the Minister of Mines and Mining Development what the Government policy is on closed mines which used to produce good quality gold during their operations, for example Mali green which used to produce 45 to 50kg of Gold per month and Dundrum Mine which produced 80kg of gold in three days.
THE MINISTER OF MINES AND MINING
DEVELOPMENT (HON. CHIDHAKWA): Thank you Mr. Speaker Sir, and thank you Hon. Mpofu for the question. Closed mines are in various situations – either the resource is exhausted and the mine has reached its lifespan or the mine has closed due to various other challenges, particularly when the prices of commodities go down. Most mines will go into care and maintenance and if the prices do not recover, the companies will close down. Many of our companies closed down when prices were very low. Some of them are trying to resuscitate under the new pricing regime. If you look at copper, for instance, its price is sitting at about $5 700, therefore companies are finding it very difficult to sustain themselves. When Kamativi Tin Mine closed, the price of tin was not possible to run the operations; but the price of tin today sits at between $22 and $23 thousand a tonne. Therefore, there is reason to resuscitate such mines.
The decentralisation of the Ministry to all provinces in the country, excluding Harare and Bulawayo enables each mining province to take an inventory of all mining concessions under its jurisdiction, inclusive of productive, idle and closed mines. This is a report Mr. Speaker Sir, which as soon as we finish, we will present to Parliament so that Parliament gets to know what the status of our industry is. The Ministry will therefore, inquire on the status of closed and idle mines and establish information, including but not limited to the following, registered owner of the mining location, size of the mining concessions, historical production and reasons for closure.
The Ministry will ensure that claims will are not held for speculative purposes. Furthermore, the Ministry is clear that in the future, no one should maintain mining title by simply paying annual fees but must use the claims for mining exploration or production purposes. This is a phenomena which is quite prevalent where you have, particularly the large mines, they simply go to the office at the end of every year and make their payments. Once they make their payments, they hold the concession and they are not doing anything with it. This is why I keep saying to you and my Chairperson of the Parliamentary
Committee, that we need to finalise the Mines and Minerals Act so that we can stop those practices of holding concessions merely by paying.
You should hold a concession by using it, not merely by paying.
The Ministry tries to expedite resolution of mining disputes to enable mines to resume operations where mining activities would have been suspended due to disputes of ownership. Let me clarify this Hon. Members. I know that people say the Ministry of Mines is not resolving the disputes, therefore, mining is not taking place. What happens is that, when we take a decision on a dispute, the other party that is unhappy with our decision simply goes to the High Court. When they go to the High Court, the matter is sub judice, therefore both miners cannot go onto the ground. Sometimes they do it with impunity, to go to the High Court knowing that they do not have a case but simply to punish the other one who has received the positive order and delay them from mining.
It then becomes difficult for us from an executive point to interfere when a matter is under the judicial processes. There are quite a number of mines like that sitting idle because the dispute continues and they become very bitter disputes because there is a lot of money in some cases that is involved in the disputes. We have a Dispute Resolution Committee and we keep trying to resolve the disputes. I thank you Mr. Speaker.
HON. M. MPOFU: Thank you Mr. Speaker Sir. Hon. Minister, there is no dispute at Mali Green Mine. It was closed almost fourteen years ago and by the time of its closure, it was producing almost 45 to 50 kgs of gold per month. It was closed for no reason. Did you ever investigate to find out why it is still closed?
HON. CHIDHAKWA: Mr. Speaker, I did not quite hear him but
I assume he is talking about Mali Green. Mali Green is a mine in Midlands Province. Again, it is an issue of where the owners are and what they are doing with the mine. It is possible for us to declare a mining location as abandoned. When you declare it as abandoned, you then send a letter to the owner of the mine to say, show us cause why we should not repossess the mining location. When you do that, if the mine owner gives you a programme that gives you confidence that they are going to resuscitate the mine, you can allow them to continue; but if they do not give you the kind of confidence that you are looking for, you can repossess the mining location.
We have done so with a number, but I need you to understand that the legal processes do have their own way and time period that it takes.
Sometimes, we have to wait for long periods of time for us to get the
Gazette. It refers to a number of mining locations that we have gazetted. I am not so sure whether Mali Green is one of those that we gazetted because we perceived it as an abandoned mining location. I will check and advise the Hon. Member of the status of Mali Green so that we can work together to ensure that we resuscitate it. Thank you.
HON. ZINDI: Thank you Mr. Speaker Sir. My supplementary question arises from the mention of Kamativi Mine by the Hon. Minister in his response. Would the Minister substantiate that Kamativi Mine should have been revived by now, but the investors who were supposed to have been reviving that mine or who have since paid the required fees to have Kamativi Mine revived, are somehow being constrained to undertake their job at the mine by the Hon. Minister’s Ministry. Is it the Ministry officials or the Minister himself in his capacity who are saying they are in a position to revive Kamativi Mine? Can the Minister substantiate that?
HON. CHIDHAKWA: Thank you Hon. Zindi for the question. When we signed an agreement with a company called Beijing Pingchang which was at that time a subsidiary of China Railway, they had disputes between themselves and Beijing Pingchang separated from China Railway. We were now not sure whether they would have the financial resources to be able to progress with the project because we had received confidence from the fact that they were underwritten by China Railway. So, it took a bit of sometime to establish the fact that they indeed had resources to be able to progress. In line with the agreement that was signed, it is 41:51 percent ownership with the Government of Zimbabwe, through the ZMDC owning 51% of the shares. There was a requirement to release US$1 million, which would be used to do the preliminary work; geological work to establish the ground and what it has. That money was released. It took a bit of sometime but it was released and a team of eight geologists; four Zimbabwean geologists and another four another four from China, spend I think six months at Kamative working on the geology. Their report came out at the end of December, 2016.
We will be receiving the report now, so that they will tell us how they are going to proceed with the mining. Once you have established the geological position, you can now size the project, do development plan, you now know for how long you are going to be mining and so forth. For now we are not stifling it, we have an agreement which we have signed. They are living by the agreement, so far so good and we will continue to push that the project is revived. Thank you.
*HON. PHIRI: Thank you Mr. Speaker Sir. The Minister said it well in terms for
the concessions for the big mines. My question relates to former farm owners who had claims or concessions that have not been used for long periods. If ever they are using them, the small scale miners who are mining on these claims are receiving very little in the form of percentage for their efforts. You have not touched on those former farm owners, what is the position? You have suggested that mines of the big companies who are not operating you will be given a list of them, what about such miners? In terms of the policy of ease of doing business, how long should it take for one’s papers to be processed in your offices?
HON. CHIDHAKWA: Thank you Mr. Speaker Sir. I would like
to thank the Hon. Member for the question. By the Act of Land Reform, we did not also take over mining claims. Mining claims remained in the hands of those that had them. This is why I keep saying if this House gives me the law – these are the issues that we were discussing and we resolved, because they do not only refer – “use it or lose it” does not only refer to big mines who are holding ground for speculative purposes. It also refers to those who sit in their houses, have claims and are not using them. In that case, those also will be affected. It is very difficult to do it when you do not have the law. When you are simply using policy, the law is much more important; much stronger and a solid basis for us to do what we want to do. So, even the farmers who were there, who are still holding concessions, legally I cannot take them away from them as long as they are keeping them current. If we change the law and say you cannot hold it unless you are using it. That will give us the power to take those claims back and give them to others that are willing and able to do the work.
Finally, the issue of how long it takes to process mining certificates. Our Provincial Mining Directors when it comes to claims you are supposed to get your prospecting licence over the counter. That should be easy. When you then make a discovery and come back to apply for the actual mining certificate, to tell you the truth I do not know how long they are taking now. Now that you have raised it I want to find out from all the provinces how long it takes them to process a mining certificate. I also want to say that when our officers issue a certificate to someone, they also must go to the people who are on the ground and advise them that so and so has applied for a mining certificate. We are allocating this mining certificate to the person, so that somebody just does not see a person who comes and say I am now mining here and the farmer does not know anything.
We have said to our Mining Directors, their people must go on the ground and alert the farmers that somebody is coming to do the mining so that the two, the mining activity and the farming activity can co-exist and give us the benefits that we are looking for. I thank you very much for drawing my attention to that item on ease of doing business as it relates to the time it takes our people to process the mining certificates.
I will deal with that.
HON. NDUNA: Thank you Mr. Speaker. Hon. Minister, thank you for your answer but you seem to be addressing the issue of mines that have gone from a production to recession. The issue that I want you to address is for those that have gone from recession to production. In particular, ACR who are now called Brackridge, who are now producing 100 kg per month. Also RioZim, who are now producing 100 kg per month and Zimplats who are the second largest producer of platinum in Africa, who are not giving back to the infrastructure, in particular to road development in their areas?
ZIMPLATS have seven people of the same family die in a lowlying bridge in a road within their locality; where RioZim are depleting the 821 km Plumtree-Mutare Highway, without giving back any resources to rehabilitate it and where they have gone into a strip road and killing beasts from the farming community. Where Brakeridge have depleted Kadoma- Mamina road completely and all the areas and infrastructure within their locality, what is it that you are doing to those miners, not only the resurgent ones but all those that are getting what they can and canning what they get without ploughing back to infrastructural development so that we take it back to where it was before independence.
HON. CHIDHAKWA: Thank you Mr. Speaker Sir. I hear the
Member. He is putting a much wider issue but if I go to Zimplats and say yes, you want - you will always want more. Zimplats puts in place a US$10 million facility for the Community Share Trust, which has been used by the communities in Zvimba and Mhondoro-Ngezi. Whether the monies were directed to that which you would have wanted it to be directed to, it is another matter. I think that it is also important to acknowledge that when it comes to roads, I have always said to the companies they move their ore and final products on the roads, it makes economic sense for them to have good roads in the area so that they are more efficient, faster and so forth.
I agree with you, but you can only do it to a certain point because the will also be saying we are also tax payers and our tax goes to the Minister of Finance and Economic Development. The expectation is that the taxation must also contribute towards infrastructural development.
I agree with you and I have raised this matter with all companies that I visited. Yesterday I met ZIMPLATS and they were briefing me about their 2016 programme and giving me a programme for 2017. One of the things that I said to them was that they needed to look after their infrastructure. They need to contribute towards infrastructural development even if it means they will help us to underwrite loans so that the Minister of Finance and Economic Development can borrow money to put a power station which will benefit you and you will be repaid in the process – I have raised all these proposals with them and we are looking at some of them.
It can never be perfect. We keep going and we keep raising what we can and putting pressure so that we get more benefits from the companies that are operating in the country.
Questions Without Notice were interrupted by THE
TEMPORARY SPEAKER in terms of Standing Order No. 64.
MOTION
BUSINESS OF THE HOUSE
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I move that all the Orders on today’s Order Paper be stood over until Order Number 31 and 33 have been disposed of.
Motion put and agreed to.
COMMITTEE STAGE
RESERVE BANK OF ZIMBABWE AMENDMENT BILL
(H.B.12, 2016)
Thirty first Order read: Committee Stage: Reserve Bank of
Zimbabwe Amendment Bill (H.B.12, 2016)
House in Committee.
Clause 1 put and agreed to.
HON. MUNENGAMI: On a point of order Hon. Speaker. I think we are now less than what we are supposed to be in terms of our quorum.
Bells rung.
Quorum formed.
THE TEMPORARY SPEAKER: Order Hon. Members. In
compliance with the standing Order 171, I have ascertained that we have
84 Members present meaning that we more than the required threshold.
So, we will proceed with the Committee.
Clauses 2 to 4 put and agreed to.
House resumed.
Bill reported without amendments.
Third Reading: With leave, forthwith.
THIRD READING
RESERVE BANK OF ZIMBABWE AMENDMENT BILL [H.B.
12, 2016]
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I move that the Bill be
read the third time.
Motion put and agreed to.
Bill read the third time.
MOTION
FINANCE BILL: BUDGET DEBATE
Thirty-Second Order read: Adjourned debate on motion that leave be granted to bring in a Finance Bill to make further provision for the revenues and public funds of Zimbabwe and to make provision for matters connected therewith or incidental thereto.
Question again proposed.
HON. CHAPFIKA:
INTRODUCTION
The Finance and Economic Development Portfolio Committee met with stakeholders who included Bankers Association of Zimbabwe (BAZ), Confederation of Zimbabwe Industries (CZI), Zimbabwe National Chamber of Commerce (ZNCC), Chamber of Mines (COM) and the Ministry of Macro Economic Planning and Investment
Promotion on 17 January 2017 to solicit their reactions regarding the
2017 Budget. Their input was synthesized with the budget analysis done by the Parliament Budget Office and this report summarises the
Committee’s analysis.
The Committee emphasizes the need to focus on efficiency and effectiveness in the implementation of this budget in order to ensure value for money. This entails timely exchequer releases to enhance predictability of resource availability and focusing on a few strategic capital projects until complete, otherwise the budget will not achieve its intended objectives if its final outturn does not lead to improvement in service delivery as well as timely completion of projects. The results based budgeting framework adopted must be actualized by linking resource allocation and results. Inherent weakness in the implementation of the previous budgets including delayed disbursement of funds and current year expenditure pressures that necessitate budget revision above the approved levels should be guarded against.
2.0 ANALYSIS OF THE 2017 BUDGET
2.1 Overview
The theme of the 2017 National Budget ‘Pushing Production
Frontiers to Potential Levels Across all Sectors of the Economy’ captures Zimbabwe’s aspirations in order to take the economy forward. Without production, the economy will not be able to solve the liquidity crisis, fiscal deficit and debt trap among other challenges. The Committee commends the Minister of Finance and Economic Development for incorporating several measures proposed by Parliament and other stakeholders in the 2017 Budget.
The Budget Statement, however, summarizes some of the key challenges facing the country but does not comprehensively seek to address the identified challenges. There is mention of efforts to stimulate the productive sectors, reengagement, enhancing competitiveness, undertaking structural reforms, rebuilding confidence in the financial sector and re-orienting fiscal resources towards ZIM ASSET, among other measures, without specific intervention strategies which bring tangible results. This is despite the acknowledgment by the Hon.
Minister in the budget statement that, “In the absence of a robust fiscal adjustment and structural reforms, the persistent deterioration in the macro-economic environment will continue to affect the country’s ability to honour its obligations to all its creditors and to move forward”.
The statement has not taken into account the global economic outlook and outlook of key trading partners and how these will affect
Zimbabwe’s exports.
2.2 Compliance with broader Macroeconomic goals
The Budget statement complies with Section 305 of the Constitution of Zimbabwe which provides that:
“(1) Every year the Minister responsible for finance must present to the National Assembly a statement of the estimated revenues and expenditures of the Government in the next financial year.
(2) The estimates of revenue and expenditure must be presented to the National Assembly in terms of subsection (1) on a day on which the Assembly sits before or not later than thirty days after the start of each financial year.”
It is also in compliance with Section 28(1) of the Public Finance
Management Act (PFMA) which provides that:
“The Minister shall lay before the National Assembly the annual budget for the forthcoming financial year, not earlier than thirty days before or not later than thirty days after the start of the forthcoming financial year, stating—
- estimates of the revenues, expenditure and financing requirements for the Government of Zimbabwe for that year;
- for each vote of expenditure, a statement of the classes of outputs expected to be provided from that vote during the year and the performance criteria to be met in providing those outputs.
The statement is in line with the broader macroeconomic objectives enshrined in ZIM ASSET. The budget, however could have made provisions to support the monitoring and evaluation processes of ZIM ASSET which is in its penultimate implementation year so that the outcome will inform future national economic blue prints. The budget could have made reference to the specific efforts towards implementation of the prioritised Sustainable Development Goals (SDGs) which Zimbabwe, among other 200 family of nations, adopted at the 70th session of the United Nations General Assembly. It is also pertinent to point out, right from the onset, the need for the budget to provide the framework for development of a long term vision, a successor to vision 2020 from which economic blueprints like ZIM
ASSET will be drawn.
Summary of Vote Appropriations to Ministries and Statutory Bodies
Expenditure area | 2017
Proposed Vote US$ |
%
budget |
of | 2016
% |
vote |
Primary and secondary education | 803 771 000 | 19.6 | 20.26 | ||
Home Affairs | 364 308 000 | 8.89 | 9.90 | ||
Defence | 340 522 000 | 8.3 | 8.94 | ||
Agriculture, Mechanisation and Irrigation Development | 292 696 000 | 7.14 | 3.63 | ||
Health and Child Care | 281 976 000 | 6.88 | 8.27 | ||
Finance and Economic Development | 281 191 000 | 6.86 | 3.86 | ||
Higher and Tertiary Education, Science and Technology Development | 200,886 000 | 4.9 | 7.61 | ||
Public Service, Labour and Social Services | 193 789 000 | 4.73 | 4.35 | ||
OPC | 175 643 000 | 4.29 | 4.37 | ||
Justice Legal and Parliamentary Affairs | 91 379 000 | 2.23 | 2.97 | ||
Transport and Infrastructural Development | 55 838 000 | 1.36 | 0.97 | ||
Local Government, Public Works and National Housing | 49 707 000 | 1.21 | 1.14 | ||
Environment, Water and Climate | 40 100 000 | 0.98 | 0.83 | ||
Foreign Affairs | 32 473 000 | 0.79 | 0.92 | ||
Parliament of Zimbabwe | 30 713 000 | 0.75 | 0.51 |
Welfare Services for War Veterans, Detainees,
Restrictees and War Collaborators |
22 080 000 | 0.54 | 0.52 | |
Public Service Commission | 18 744 000 | 0.46 | 0.48 | |
Industry and Commerce | 18 547 000 | 0.45 | 0.44 | |
Youth, Indigenisation & Economic Empowerment | 17 192 000 | 0.42 | 0.44 | |
Rural Development and Preservation of Cultural Heritage | 15 751 000 | 0.38 | 0.36 | |
Judicial Services Commission | 14 099 000 | 0.34 | 0.39 | |
Zimbabwe Electoral Commission | 9 761 000 | 0.24 | ||
Women Affairs, Gender & Community Development | 8 434 000 | 0.21 | 0.33 | |
Information Communication Technology, Postal and Courier Services | 6 355 000 | 0.16 | 0.16 | |
Small and Medium Enterprises and Cooperative Development | 6 131 000 | 0.15 | 0.13 | |
Energy and Power Development | 6 288 000 | 0.15 | 0.17 | |
Macro-Economic Planning & Investment Promotion | 5 927 000 | 0.14 | 0.15 | |
Mines and Mining Development | 5 395 000 | 0.13 | 0.15 | |
Sports , Arts and Culture | 4 319 000 | 0.11 | 0.11 | |
National Prosecuting Authority | 3 636 000 | 0.09 | ||
Auditor General | 3 262 000 | 0.08 | 0.10 | |
Media, Information and Broadcasting Services | 3 329 000 | 0.08 | 0.10 | |
Council of Chiefs | 3 130 000 | 0.08 | ||
Tourism & Hospitality Industry | 2 674 000 | 0.07 | 0.07 | |
Human Rights Commission | 1 951 000 | 0.05 | ||
Zimbabwe Anti-Corruption Commission | 2 180 000 | 0.05 | ||
Zimbabwe Land Commission | 1 546 000 | 0.04 | ||
National Peace and Reconciliation Commission | 1 149 000 | 0.03 | ||
Zimbabwe Gender Commission | 1 105 000 | 0.03 | ||
Zimbabwe Media Commission | 670 000 | 0.02 | ||
SUB-TOTAL 3 426 289 000 | 3 426 289 000 | 83.86 | ||
Debt Service: Interest Bill | 180 000 000 | 4.39 | 2.75 | |
Pension | 477 600 000 | 11.65 | 11.94 | |
Other Constitutional and Statutory Appropriations | 16 111 000 | 0.39 | 0.36 | |
TOTAL Expenditure & Net Lending | 4,100 000 | 100% |
The Committee notes with concern that Ministries that drive sectors which are key to economic growth (Agriculture, Mechanisation and Irrigation Development, Industry and Commerce; Mines and Mining Development as well as Small and Medium Enterprises and Cooperative Development) did not receive adequate funding reflective of the thrust of pushing production frontiers. The Committee is of the view that allocations to these Ministries should be reviewed in line with the focus of the 2017 budget of supporting productive sectors. The specific programmes will be explained later in this report under the specific sectors.
The sharp rise of unallocated reserves in the Ministry of Finance and Economic Development vote from US$5437 in 2016 to US$106 million (2.59% of the budget) in 2017 requires an explanation.
For the purposes of sustainability, the allocation to the Ministry of Health needs revision in light of the fact that health is a basic and fundamental human right. Approximately 79% of the Ministry’s budget will go towards salaries, a clear indication that the country has entrusted development partners to fund procurement of drugs and medical equipment, among others. Moreover, the allocation falls short of the Abuja declaration threshold of 15% of total budget and the WHO per capita Health expenditure of US$34 as indicated on annex 1.
It is the Committee’s view that during peace and tranquillity periods, some of the Defence Forces should be deployed in infrastructure development as well as technical assistance in government departments which will have a positive impact on the high Defence allocation thereby creating room for the Hon. Minister to virement any subsequent releases to other departments such as Parliament whose allocation must be increased.
The allocation to Parliament of US$30.7 million is a far cry from the requirements. Parliament needs at least US$48 Million broken down as US$10.5 million CDF, arrears to MPs of over US$9 million, US$ 10.3 million salaries over and above programmes and other recurrent expenditure requirements. This is consistent with Section325 (b) of the
Constitution of Zimbabwe which provides that:
“The Government must ensure that adequate funds are provided to Parliament, to enable it and its committees to meet whenever necessary”.
In other countries, Parliament’s budget bid is not subject to review.
It is therefore the Committee’s view that Parliament as one of the three arms of the State must manage its own funds. In view of the above observations, the Committee seriously urges the Hon. Minister to effect the above recommended adjustments on Parliament’s Vote to enable the institution to effectively carry out its mandate as provided in the
Constitution.
2.3 Macroeconomic Projections
A credible budget requires a credible macro-fiscal framework. Coming up with a credible macro fiscal framework remains the most crucial constraint to achieving the country’s envisaged growth.However, analysis of previous budgets indicates that this has not been the case. The original projected macro-economic growth of 4.8% in the
Hon. Minister’s Budget Strategy paper was revised to 1.7% on presentation of the 2017 Budget.
2.3.1 Credibility of the Economic Growth forecast
The Committee is of the opinion that the projected growth of 1.7% is feasible given a good rainfall season, anticipated moderate improvements in international commodity prices and the impact of current Government efforts on the ease of doing business reforms.
However even if the country is to meet the 1.7% growth target, this is still too low given that the government targets an average growth of 7.9% (ZIM ASSET) as ideal for poverty reduction and that it falls below the population growth rate of 3%. It is however important to note that a favourable weather season does not guarantee increased agricultural production as there are other underlying factors that affect agricultural production such as productivity, finance, mechanization, land tenure, efficiency in processing and marketing of agricultural products as well as timeous inputs availability. For us to achieve the envisaged growth of
1.7%, these underlying factors need to be addressed.
Over the years, the Budget Policy Statements have had optimistic targets for economic growth which are based on various assumptions. Consequently, this has led to higher projections of revenues giving more space for increases in expenditure. However, the trend has been that most of the economic growth targets have not been achieved forcing revision of revenue targets downwards resulting in Government borrowing on the domestic market to fund the budget deficit.
The Committee is concerned about Zimbabwe’s growth trend as it implies that earlier periods of high growth rate were not anchored on sustainable policy framework. The growth was largely driven by mining and agriculture and any shock on global commodity prices or inadequacy in rainfall on which Zimbabwe’s agriculture is fed, then the economy will negatively respond. It is imperative that the economy anchors its growth on a sustainable growth engine. China has an export driven model which has served it well for years and is slowly shifting towards a consumption driven growth path as the volatility of exports and investment has contributed to economic imbalances. The focus therefore should be on shifting resources to highly productive sectors like manufacturing and services as well as enhancing total factor productivity growth. Higher total factor productivity entails improving labour productivity (Zimbabwe wages very high) and capital productivity which can be enhanced through revamped business investment, research and innovation to increase capital output. Improving the ease of doing business environment can also act as an investment pull factor particularly FDI where capital productivity will be higher. To guarantee sustainable development, the Committee strongly recommends that adequate resources be deployed towards Research and
Development (R & D).
2.3.2 Credibility of the Inflation Forecast
The annual average inflation for 2017, projected to be 1.1%, up from -2.4 % anticipated in 2016 is credible on the back of assumptions for price increases pushed up by increases in fuel prices after OPEC decided to cut on supply.SI 64 restricting the importation of some goods may also lead to a slight increase in inflation. However, the weakening of the rand, poor demand due to low income levels and liquidity challenges are likely to ensure that inflation, though positive remains subdued. Deflation however is not desirable as it is an indication of low investment and spending.
2.4 Public Finance
2.4.1 Revenue
A careful review of the successive budget revenue estimates and end of year actual revenue points to systematic overestimation of revenue. Ambitious revenue targets tend to fuel more spending requests and indirectly appear to drive overall deficit and consequent borrowing. The 2017 revenue projection of US$ 3.7 billion is realistic provided measures to plug revenue leakages are implemented.
2.4.2 Expenditure
Expenditure has largely remained skewed towards recurrent expenses. The high share (91%) of employment costs to total expenditures remains a cause for concern, crowding out capital and social spending, and other productive sectors which are critical to the revival of the economy. Although Government acknowledges the need to reign in the high wage bill, indications of discord in Cabinet with regards to proposals to achieve that is a cause for concern. Short term solutions to the plight of civil servants without enough weight on longer- term benefits and costs of such decisions will create policy and fiscal problems in the immediate future. The Committee is of the opinion that it is high time the Executive takes a paradigm shift aimed at downsizing the size of government by streamlining government Ministries and departments to make it leaner and more efficient thereby avoiding duplication of effort and resources.
It is also anticipated that implementation of the Public Service Wage Bill rationalisation measures will result in financial savings of an estimated US$140 million, which is 0.99% of GDP. This shows that the approved cost cutting measures are not adequate. It is imperative that Cabinet reconsiders some of the measures proposed by the Hon.
Minister of Finance in his Mid-Term Fiscal Policy Review Statement in September 2016 such as review of the maximum wage bill and the rationalisation of some of the benefits. Treasury should also consider promulgation of a statutory instrument to limit parastatals, state enterprises and municipal wages.
Reforms must include strict monitoring and evaluation on the public service to justify the high wage bill. During the Mid-Year Fiscal Policy Review Statement, the Hon. Minister had indicated that these savings could result in combined saving of $453 million (3.2% of GDP). Although it is inadequate in the context of rising budget deficit, it is a good starting point while further measures are being explored. For this intention to be a reality there is need for all stakeholders to generate a social contract and make painful sacrifices for the good of the economy. It is therefore high time to resuscitate the Tripartite Negotiating Forum, including all critical stakeholders.
The proposal for capital expenditure of US$520 million, which is 3.6% of GDP, in 2017 is a laudable attempt by the Minister in a tight fiscal situation. It has been observed however that government capital expenditure in the last 10 years has not led to an increase in national assets due to the following reasons:
- Large number of uncompleted projects competing for scarce resources; ii.Weak project appraisal and prioritisation processes; and iii.Inherent weak project management, monitoring and evaluation systems.
As such, project completion rate has been slow e.g. CID Headquarters, New Makombe Building and Kunzvi dam but to mention a few. The Committee therefore recommends that uncompleted projects be given priority to realise value for money from such investments.
2.5 Fiscal deficit
Anticipated expenditures of US$4.1billion against projected revenue collections ofUS$3.7billion presents a financing gap of about US$400 million, which is 2.7% of GDP. This undesirable situation is exposing the country to a number of risks, which include domestic debt trap and accumulation of arrears to salaries and service providers, among others. The high recurrent expenditures inclusive of employment costs renders the country highly consumptive and, hence anti-developmental. The mismatch between revenues and expenditures therefore requires that the thrust of Government for the 2017 Budget be expenditure rationalisation in line with sustainable financing capacity and minimise continued treasury bill issuance for the reasons already stated above.
Accordingly, the 2017 National Budget proposal of gradually reverting back to the cash budgeting framework tenets, through ensuring that all line Ministries adhere to allocations and spend as and when resources are available is therefore a welcome development and should be implemented as soon as possible. This will be complemented by restrictions on hiring, continuous monitoring and audits for flushing out ghost workers, as well as the restructuring of the Public Service. Of concern however is the lack of adherence to this policy discourse as evidenced by continued growth in employment figures despite the freeze on recruitment.
The budget has no clear indication on how fiscal prudence will be achieved, apart from proposing reverting to cash budgeting. There is need for clear strategies of expenditure rationalization to identify and remove expenditure overlaps and wastage.
2.6 Budget Deficit Financing
The acknowledgement by the Hon. Minister that Treasury bill issuances pose challenges of capacity for Government to repay such obligations is welcome. In 2014 the supplementary budget was US$492 million against revenue collection ofUS$3.7 billion. In 2015 and 2016 the Minister introduced supplementary budgets of US$154 million and US$253 million respectively. Continued funding of budget deficits through Treasury bills pose serious challenges on the ability of Government to honour such obligations on maturity. Given the above challenge, the Committee urges Government to seriously consider securitisation of the country’s vast mineral resources to unlock the much needed liquidity
2.7 Revenue Measures
The Budget proposes measures to enhance the support that has already been availed to industry through tax relief and modest protection as well as enhancing revenue and efficiency in tax administration. The majority of these measures are of a protectionist nature meant to promote local production and preserve jobs in the wake of sanctions imposed on the country. They should thus take a short to medium term approach until the economy stabilises. The Committee is concerned that despite the numerous trade protection measures instituted the local companies remain uncompetitive. The manufacturing companies must consider other measures to improve their competitiveness including looking for technical partners to improve the quality and productivity in their relevant industries. Business needs a paradigm shift and implement serious cost cutting measures contrary to pursuing the hyperinflationary pricing models with high margins of between 50% and 100% in most cases.
Revenue collection can be enhanced by taxing betting activity industry which is on the growth path in spite of a shrinking economy.
The effective date for most of the proposed measures (1 January 2017) must be adjusted to 1 February 2017 in light of the challenges associated with applying the law in retrospect.
2.8 Revenue Collection Measures
The suggested revenue collection measures are more of an administrative nature which may lead to small revenue gains. These measures are good in so far as improving the efficiency of VAT collections and enhancing tax administration. In the long run the improvement of revenue hinges on stimulating production and thus growing the tax base and improving the tax-to-GDP ratio.
The Committee recommends the tax rationalisation and transparency in the mining sector with a focus on increasing non-tax revenue from mineral resources. Transparency must go beyond the consolidation of the diamond mines and the amendment to the Minerals
Act. It should include other transparency initiatives such as the Africa
Mining Vision (AMV) adopted by African Heads of State and Government in February 2009 to create a transparent, equitable and optimal exploitation of mineral resources; the World Bank’s Extractives Transparency Initiatives (EITI) which is a global standard to promote the open and accountable management of extractive resources as well as the Southern Africa Resource Watch Barometer which is a set of clear principles that empower parliaments to measure transparency, accountability and equity in the exploitation of the region’s vast natural resources that was developed by the SADC-PF and the Southern Africa
Resource Watch (SARW).
The Committee recommends that all revenues be paid to the consolidated revenue fund, without exception save for special cases, in accordance Section 302 (b) of the Constitution This guarantees transparency and equity in resource allocation in line with Section 307 of the Constitution of Zimbabwe and also addresses the challenges raised by Auditor General of rampant abuse of these retained revenues.
2.9 Tax Relief
For the individual consumer and worker, and even for corporates, the 2017 budget statement offers few tax relief measures, perhaps a reflection of the tight rope treasury is walking on. Nevertheless, it can be noted that the Hon. Minister made efforts to streamline the country’s taxation by removing some burdens on the taxpayer. There are notable instances where the Hon. Minister removed double taxation, while at the same time there are instances where the Hon. Minister saw opportunities for expanding the tax base. The effort to incorporate the SMEs into the mainstream tax system is a major highlight which should be embraced.
The Committee note with appreciation the introduction of tax incentives on Special Economic Zones. The Hon. Minister should however put in place mechanisms to guard against unscrupulous investors who abuse these concessions.
Cases of tax evasion other malpractices must be addressed decisively to ensure tax loopholes are permanently sealed. There is therefore need for a revenue generation-tax law with high penalties.
There is also need to consider the original intention on zero rated or exempt goods. If the intention was to cushion consumers, then a change on these policies will adversely affect aggregate demand and standards of living.
Zimbabwe’s tax collection as a share of GDP is high by subSaharan African standards. Therefore attention must be directed on improving tax administration efficiency. Moreover, in light of the fact that personal and corporate income taxes are the most distortive taxes as they have sizable adverse effects on employment, productivity and capital accumulation. Government needs to adopt a more growthfriendly tax system and any increase should be on indirect taxes. This can be achieved by shifting the tax burden away from direct income toward consumption, immovable property and the environment.
2.10 Remittances
Diaspora remittances which account for 30% of the country’s
Foreign exchange earnings are anticipated to have declined 17% from US$935 million recorded in 2015 to US$780 million, in 2016. More needs to be done to incentivise the diaspora community, to complement the 3% incentive scheme on diaspora remittances. There is need to establish the Diaspora Directorate in the Ministry of Macroeconomic Planning and Investment Promotion to deal with issues affecting the Diaspora and facilitate their investment, remittances and philanthropic work. Government must continue to offer incentives to the diaspora community to ensure sustainable flow of funds from this community. There is also need to put in place strict measures to guard against the Abuse of the 3% incentive on diaspora remittances to mitigate against possible recycling of the same money.
2.11 Banking Sector
The high lending rates continue to constrain private sector growth and lenders blame it on high customer risk profile and high country risk profile which implies a high rate at which they obtain the funds. The
Zimbabwe National Competitiveness Report 2015 notes that at 18% per Annum which is the maximum prescribed interest rate in Zimbabwe, the cost in real terms is high compared to other regional countries using their local currencies with higher exchange risk exposure. The report also notes that in addition to the 18%, banks also charge establishment fees (3-5% of loan amount), administration charge (3% of the loan amount, despite the client having credit balances with the bank where administration and maintenance charges are also deducted every month). Other banks also charge credit insurance which depends on the tenure (averages of 2.03% for 12 months), and 3.10% for 24 months etc. Treasury must guard against the Hyper Inflationary environment mentality of profiteering which Industry and Commerce still maintain in the current stable multicurrency environment. The current deflationary conditions dictate the need for very low interest rates. Moreover, the introduction of bond notes should result in direct interest rate reduction. Bond notes were printed on the back of an Afrexim bank loan obtained at very low interest rate which should translate to dilution of lending rates to encourage production. The Hon. Minister must expedite the promulgation of the RBZ Amendment Bill to curb illegal open market operations.
The nature of deposits which largely remain short term and transient in nature, and not ideal for long-term credit creation is a cause for concern. A higher deposit to GDP ratio implies that more resources will be available to be channelled towards productive sectors. The limited ability of banks to mobilize deposits is partly associated with lack of confidence in the banking system, perceived high bank charges, liquidity challenges, restrictive account opening requirements, and high concentration of banking infrastructure in urban areas, among other factors. Stakeholders reiterated their support for bond notes, which however are not a panacea for liquidity constraints but an export incentive, on the basis of their use as an export incentive and issuance within the Afrexim Bank facility limit. The Committee therefore recommends policy consistency, further review of bank charges, enhancing efficiency of electronic money by improving availability and connectivity of POS machines. Moreover, consistent with increase in the use of plastic money, banks should realign their manpower to cut costs.
3.0 Analysis of Interventions to Stimulate Production
3.1 Agriculture
The command agriculture scheme is a good initiative with the potential of reviving the whole agribusiness spectrum. The Committee observes that there is need to improve the timeliness in distribution of inputs with reports suggesting that some farmers have not received some inputs. The Government must provide the right institutional and legal framework that supports agricultural marketing and investments in irrigation. To mitigate against effects of relying on rain fed agriculture in the wake of climate change, Treasury should seriously consider supporting rainwater harvesting and irrigation development. The Hon. Minister must put in place mechanisms to ensure that command agriculture farmers, whose payment will require approximately US$1 billion, are paid in time to build confidence in the programme
3.2 Mining
The sector is currently contributing above 10% to GDP, more than 50% to national exports, around 13% of fiscal revenue, more than 50% to foreign direct investment and creates more than 45 000 formal jobs. Mining sector should be contributing much more than the current status quo. It is therefore critical to plug leakages and comprehensively support small scale miners. Supportive interventions measures are required in order to promote the growth of the sector by reviewing and standardising Rural District Council fees as well as charges such by Environmental Management Agency. There is also need for Government together with all stakeholders to come up with a beneficiation strategy to ensure that the companies are given adequate and appropriate time to move towards value addition.
3.3 Manufacturing
The manufacturing sector could be the key to Zimbabwe’s future economic growth given its forward and backward linkages to both the agricultural sector and the retail and wholesale sectors of the economy. The implementation of SI 64 is reported to have contributed to capacity gains across several sub-sectors, with overall capacity utilisation increasing from 34.3% in 2015 to 47.4 % in 2016 according to CZI. The sector’s projected marginal growth of 0.3% in 2017is not in sync with the theme of the budget. However, the budget offers very little by way of specific funding arrangements for the manufacturing sector outside of the existing lines of credit and the intention to pursue external lines of credit. Current reengagement efforts therefore are a step in the right direction.
3.4 Tourism
Tourism has the potential to contribute significantly to the country’s growth in the short term. A decision has to be made to reduce the number of non-security/crime roadblocks on the roads.
Insistence on multiplicity of roadblocks without regard to the ease of doing business environment can damage the country’s image in the wake of stiff competition regionally from countries with similar tourism products.
3.5 Competitiveness
The country must work towards long term solutions to its competitiveness to avoid relying on protectionist measures every time manufacturers are under pressure. The recent 2016 World
Bank Doing Business Index Report ranked Zimbabwe at 161 out of 191 countries from 157 in 2015 due to a number of weaknesses which include unreliable supply of utilities, limited access to affordable financing, delays at ports of entry, as well as multiplicity of licences and fees, among other business and investment constraints that raise the cost of doing business. It is also crucial that Government walks the talk with regards to improving the business environment as in many cases what is reported is different from the situation on the ground.
3.6 Investment
Negative domestic savings of -11 % imply a huge savings investment gap which can only be filled by foreign capital mainly FDI.
Operationalisation of the One Stop Investment Shop is long overdue.
There is need for Government to set up multi-stakeholder Committee to Operationalize this dream in the same way ease of doing business thematic Committees were set up.
The Budget statement must indicate efforts to address other determinants of investments including aggregate demand, interest rate, uncertainty/policy credibility and property rights among other issues.
4.0 Social, Pro-Poor and Gender issues
4.1 Overview
The 2017 budget is a survivalist budget in which these issues are scarcely addressed directly. Its focus is on macroeconomic issues not specific segments of society such as the poor and gender issues, besides suspension of duty on sanitary wear which came as a huge relief to most women. There seems to be an overreliance on development partners for social service provision. The government must do more to create the necessary fiscal space for it to provide the basic services especially to the marginalised groups of society such as women, children and the disabled.
Support to the already existing and new women and youth initiatives notably the Women’s Bank and youth development funds (strengthening the monitoring and evaluation of the same) among other initiatives is noted but the appropriated figures are inadequate.
4.2 Health
It is worrisome to note that 79% of the health budget goes towards salaries. A significant chunk of health provision support over the past years came from development partners thus the country is over-relying on partners for the provision of this critical service. Government should also seriously consider converting some of the public wards in public hospitals into private wards to enhance viability. Chitungwiza Central
Hospital is one success case in mind.
4.3 Education
As is the case with health, over 97% of the education budget goes towards salaries. It is imperative to reintroduce student loan schemes and bursaries where students will be bonded to repay the loan over a stipulated time after graduation. There is also need to prioritise timeous funding of the Basic Education Assistance Module (BEAM) so that more orphans and vulnerable children have access to education. The Committee is concerned on the very substantial reduction in Higher Education allocation from US$270.6 million in 2016 to US$201 million in 2017 despite the increase in the number of Universities.
4.4 Water and Sanitation
Urgent disbursement of the US$16.4 million budgeted towards water and sanitation programmes is required in the wake of heavy rains and cases of typhoid outbreaks that have been reported. Availability of water must be high priority given the burden it places on mainly women and children.
4.5 Small and Medium Enterprises (SMEs)
The Budget Statement does acknowledge that the Zimbabwean economy has largely gone informal, and SMEs are increasingly becoming a major driver of economic growth and development. Strategies to tap into this new economy in order to boost Government revenue and to ensure growth and formalization of this sector should be vigorously pursued given that over 80% of the population sustain their livelihoods from this sector. More needs to be done, however, with regards to creation of a conducive legal and regulatory framework that encourages formalization. The proposed establishment of a credit reference bureau is a noble initiative in a normal operating environment. However, implementing this initiative under the current economic situation would be a disincentive to the SMEs who are already struggling to survive under the current harsh economic environment. The Reserve Bank of Zimbabwe failed to honour its debts hence the introduction of the RBZ Debt Assumption Bill. Government failed to honour its obligations with multilateral financiers hence the current efforts to reengage. Banks too, could not survive with large nonperforming loan portfolios hence introduction of ZAMCO. It is only SMEs and individual borrowers who were left exposed. There is therefore need for the RBZ to introduce a moratorium for this sector to renegotiate an agreed repayment plan.
5.0 Policy Inconsistency
2016 has witnessed several cases of policy discord within Government relating to bonus payments, civil service wage bill rationalisation measures and interpretation of the Indigenisation and Economic Empowerment regulations. These policy inconsistencies have far reaching consequences for the economy including undermining the current reform process and reengagement with creditors as well as dampening efforts to attract investment. Policy shifts are interpreted as signs of a dysfunctional government, lack of political will or appetite for reform which are both damaging to the economy. The Committee welcomes the decision to have all policy pronouncements coordinated from the Office of the President and Cabinet. There should be political will for an inevitable paradigm shift on bold decisions needed to move the country forward.
6.0 Debt Clearance Strategy
Zimbabwe has been unable to access external financial support resulting in a tight liquidity situation due to debt overhang. Zimbabwe adopted the “Strategy for Clearing External Debt Arrears and the Supportive Economic Reform Agenda”, better known as the Lima
strategy in 2015after the realisation that it does not qualify for Highly
Indebted Poor Countries (HIPC) and the Multilateral Debt Relief Initiative (MDRI).
It is equally imperative for the citizens of Zimbabwe, at all levels, to uphold a culture honouring their obligations, both Government and private sector. This applies to personal loans, contract farming obligations, municipal rates, utility charges as well as agricultural support under the More food for Africa programme from Brazil, among others.
7.0 Corruption
It is crucial that Government strengthens institutions which are involved in fighting corruption to curb this scourge in both public and private sectors. This also calls for adherence to the corporate Governance framework, public transparency, honesty, integrity and accountability in both the public and private sectors, which are key to lure investment and achieve fiscal prudence. There is need to implement the recommendations from the Auditor General reports which exposed rampant corruptions in Government institutions.
8.0 Other Considerations
Inherent weaknesses in the implementation of the previous budgets including delayed disbursement of funds and in-year expenditure pressures that necessitate budget revision above the approved levels are a cause for concern. There is need for institutionalisation of budgetary reforms after the country adopted a Programme Based Budgeting approach. There is also need for all Government departments to adhere to PFMA reporting guidelines. In order to ensure there is adequate information on budget performance in real time, Treasury should issue exchequer releases by vote and programme and the same should be published on a monthly basis in a Government Gazette. This will not only enable Parliament to take appropriate actions but the general public will be adequately informed hence enhancement of budget transparency...
[Time Limit]
HON. MUKWANGWARIWA: Thank you Mr. Speaker Sir, I
move that the Chairman continue with the report by five minutes.
Motion put and agreed to.
HON. CHAPFIKA: Thank you. Let me go straight into recommendations, Mr. Speaker Sir.
9.0 CONCLUSIONS AND RECOMMENDATIONS
The 2017 Budget Statement is couched around fiscal adjustment, structural reforms, stimulating productivity across all sectors and poverty eradication designed to put Zimbabwe on a growth trajectory.
There is need for unity of purpose by all stakeholders from the
politicians, business, labour, civic society and citizens if the country is to move forward. A genuine social contract is needed where all stakeholders negotiate in good faith for a common good. As such, the Tripartite Negotiating Forum legislation must be finalised and become fully operational.
There is no doubt that the country is facing serious challenges. In order to solve these challenges, there is need to take a new paradigm shift and move away from the business as usual approach that it is currently in. There is therefore need for economic reforms including austerity measures to cut the wage bill so as to free some resources for capital expenditure. The Government needs to walk the talk with regards to economic reforms and fighting corruption. Reforms must not only be seen as a way of meeting the IMF-SMP but in the context of creating the much needed fiscal space for the government. There is the real danger of service delivery collapsing and the government failing to pay salaries altogether in the near future if this is not urgently addressed. The emphasis of the statement must be policy consistency and implementation so as to restore confidence in the economy.
On the other hand, interventions in the key sectors of the economy like agriculture and mining must be attended to as a matter of urgency.
Policy coherence and consistency is crucial in solving the country’s challenges. At the same time implementation of agreed policies must be done timeously.
The Committee therefore recommends the following:
- All revenues from all sources should be consolidated into the CRF and then allocated through the main budget as previously recommended in the last few years. This would raise revenues by approximately $700 million and bring all expenditure under the control of Treasury;
- The Hon. Minister should consider upward review of allocations to the Ministries of Agriculture, Industry and
Commerce, Health, SME’s, Women Affairs, Higher and Tertiary education as well as Tourism through virementing savings from the Ministry of Defence deployments in infrastructure development and technical assistance resulting in release of revenues for this purpose;
- Treasury should review upwards the allocation to Parliament to US$48 million to enable it to carry out its mandate as already emphasised in this report;
- Government must undertake to adopt and make structural reforms to rationalise the civil service in order to adjust recurrent expenditure to at most 70 % of the budget within the first quarter of 2017 thereby releasing addition US$700 million to fund other critical areas of the budget;
- Treasury must consider adopting the following measures which have the potential to grow the cake
- A complete review of the fuel trading arrangements via the pipeline and adjustments to levies and duties to increase revenue to the State and to halt illegal and corrupt activities. This could yield another US$400 million a year ii.A complete review of all border charges and duties and setting a target to double these revenues from $380 to
$800 million a year
iii. A review of excise duties to raise the costs of liquor and cigarettes to regional levels to discourage smuggling;
- Government must strictly adhere to the cash budgeting system as proposed by the Minister of Finance;
- To accommodate changes in tax regimes, the effective date for the budget must be moved to the 1st of February 2017;
- Government must continuously support vulnerable members of the community with inputs to ensure food security;
- Government must expedite operationalisation of a private sector driven Commodity Exchange, subordinate to the
Agricultural Marketing Authority before June 2017;
- The Government must ensure policy consistency through effective policy coordination and harmonisation across different ministries and departments;
- Government must ensure transparency and accountability in the Mining sector through adoption and implementation of such measure such as Africa Mining Vision (AMV),
Extractives Transparency Initiatives (EITI), Southern Africa Resource Watch Barometer and the SADC mining protocol to curb leakages and spur development in the mining sector;
- Government must make deliberate efforts to support, promote and regularise operations of small scale and artisanal miners;
- Government must expedite the implementation of the Ease of Doing Business Reforms through provision of requisite infrastructure, addressing cost and availability of utilities reforming the regulatory framework and removing all impediments to exports except for critical commodities like maize;
- There is need for supporting local production through adherence to minimum local content rules;
- The government must put in place robust mechanisms to plug revenue leakages and corruption including implementing measures to curb smuggling;
- The Ministry of Macro-Economic Planning and Investment
Promotion must ensure speedy implementation of Special Economic Zones (SEZs) by establishing a Board to oversee the implementation and applicable incentives;
- There is need urgent need to provide temporary protection of SMEs and other private companies under reconstruction through a legal instrument with a moratorium of about 6 to 12 months to facilitate for renegotiation of acceptable loan repayment period;
- Government must adequately resource the Small and Medium Enterprises Development Corporation (SMEDCO) and the proposed Women’s Bank in order empower women who were formerly marginalised;
- There is need for all stakeholders to adopt internal devaluation. This should see a reduction in interest rates and consequent reduction in utility charges and other costs of doing business which are way above regional best practises; and
- Government must attempt to honour its regional and international obligations with respect to budgetary allocations
to specific Ministries details of which are highlighted on the attached schedule (Annex 1).
Zimbabwe has the highest resources per capita in the world even ahead of Saudi Arabia yet it is the fifth poorest country[1] in the World in terms of GDP per capita. We are not a poor country, neither are we poor of brains, the poverty we have is where most politicians put politics ahead of economics yet economics drive
politics.
Annex 1: Adherence to international conventions and protocols
YEAR | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | Min
Threshold |
SUB
Saharan Average |
|
Health budget as a % of total budget | 8.58 | 9.33 | 8.64 | 9.9 | 8.2 | 7.3 | 8.3 | 6.88 | 15 (Abuja
declaration) |
11.3 | |
Health budget as a % of GDP | 1.8 | 2.3 | 2.8 | 2.8 | 2.4 | 2.4 | 2.3 | 1.99 | …………… | 3 | |
Per capita
health expenditure USD |
15.07 | 20.79 | 27.78 | 28.33 | 23.2 | 24.64 | 20.97 | 34 (WHO) | $146.29 SADC average | ||
Education Budget as a % of total budget | 22 | 23 | 25 | 27 | 18.5 | 22.7 | 20.3 | 24 | 12(Dakar
Framework) |
||
Agriculture,
Lands, water & Environment |
14 | 8 | 8 | 4 | 8.3 | 7.8 | 4.6 | 8.26 | 10(Maputo Declaration) |
HON. ZINDI: 2017 Ministry of Local Government, Public Works and National Housing Post Budget Analysis Report Vote 13 – US$49,707,000.
1. Introduction
The mandate of the Ministry is to ensure that functional human settlements are promoted and sustained in all urban local authorities backstopped by sound local governance and provision of quality, wellmaintained Government infrastructure.
2. Budget Allocations for 2016 and 2017
- In the 2016 financial year, the Ministry was allocated a revised estimate of US$50.7 million of which only US$37.2 million (70%) was disbursed. For the 2017 financial year, the Ministry was allocated US$49,707 million which is marginally lower than the previous year; with 30% going towards capital expenditure and the bigger chunk (70%) channeled towards recurrent. If only 70% is disbursed like in the previous year, the Ministry can expect to get about US$34 million. This is way below the Ministry’s requirements and will certainly retard service delivery.
Budget Analysis Meeting Observations
On the 17th of January 2017, your Committee held a meeting with Ministry officials and the following observations were made:
Your Committee observed that for the fourth year running, Treasury continues to be in breach of the Constitution by not making the constitutional 5% allocations to provinces and local authorities in line with Section 301(3) of the Constitution. While it is Treasury’s excuse that the allocation requires an Act of Parliament, your Committee is well aware that Section 301 (3) is self executing. Instead an Act of
Parliament is required for Section 301 (1) for the equitable allocation of capital grants between provincial and metropolitan counsels and local authorities. The Ministry of Local Government should ensure that the required Act of Parliament needed for Section 301(1) is put in place to facilitate capital grants allocation.
It was also noted that there seemed to be no effort being put in the alignment of laws with the Constitution. A case in point is the Local
Authorities Bill which continues to go back and forth with no progress. The officials advised the Ministry that given the long alignment process, they had resorted to the route of amendments for progress sake.
Concerns were also raised on why well known land barons continue to invade and profit from State land, prejudicing local authorities who should service and allocate stands legally. Your Committee was advised that some arrests have been made and the phenomenon is now decreasing.
Your Committee also noted that civil servants are paying high rentals for Government houses despite their low salaries and the dilapidated nature of most of the houses. In response, the officials said that the marginal rental increases had allowed Treasury to remit some funds for refurbishment and also pointed out that people should rent houses which tally with their pay grade. Nevertheless, it is this Committee’s thinking that the rental rates should tally with the housing allowances.
Officials were also asked on the extent to which the 30/70 of salaries service delivery and top management salary caps were being adhered to by local authorities. They highlighted that they were facing resistance and regarded as interference but compliance was slowly improving.
Some authorities still find ways of circumventing this directive.
Your Committee also observed that Government is the biggest debtor to local authorities. Government non-payment of these debts is depriving local authorities of the much needed revenue thereby negatively affecting service delivery.
On revenue generation Madam Speaker, the officials said that liquor licencing was one of their major cash cows and efforts on improving its administration and enforcement are in progress. However, nothing was coming from ZUPCO and UDCORP as they are struggling to find their feet. Revenue from roadside advertising space has decreased due to PPP agreements which provide for the companies installing street lights to recoup their costs through advertising for a specified period.
Your Committee notes with concern the fact that the condition of our roads has deteriorated ever since ZINARA took over collection of vehicle licencing. The little disbursements made by ZINARA are not enough. Furthermore, ZINARA is double dipping given that it is both a regulator and also a collector. Your Committee strongly feels that vehicle licence fee collection should be brought back under local authorities. Once collected, local authorities can retain 20% which will be ring-fenced for roads while 80% is remitted to central government for redistribution as per need country wide.
It was also noted that the now defunct council beer halls were a source of revenue. The resuscitation would need to be preceded by putting in place regulations that restrict the issuance of liquor licences to private players.
The officials also advised your Committee that prepayment of water, though unpopular, was a great revenue mobilisation strategy which would be very attractive to investors needed for projects such as the relaying of old water pipes. They are advocating for the upholding of the user-pay principle especially against the background of non-payment of bills by both public and private entities which continues to hamper local authorities’ operations.
Your Committee was also concerned why illegal rank marshals were collecting money at the expense of local authorities which in view of your Committee is another potential revenue source.
Summary of Recommendations
Your Committee recommends that:-
- The Ministry of Finance to comply with the Constitution and effect the 5% allocation to local authorities in accordance with Section 301(3). It is a very clear section from the Constitution that the provision does not need an Act of Parliament for it to be effected.
- Provincial councils should be appointed and stop being used as a scape goat for the non-allocation of the 5% to local authorities.
(c ) Full alignment of laws with the Constitution should proceed with expediency. Amendments will not suffice as what is obtaining. The Ministry should also ensure that an Act of Parliament.
Hon. Mhlanga having passed between the Chair and the Hon.
Member speaking
THE TEMPORARY SPEAKER: Order. Hon. Mhlanga, you
are not allowed to cross in front of the Chair and the Hon. Member speaking. You will have to come back through this way.
HON. ZINDI: The Ministry should also ensure that an Act of Parliament required for allocation of capital grants between provincial and metropolitan councils and local authorities are according to Section 301 (1) should be put in place.
- Local authorities should decisively deal with land barons and take over the servicing and allocation of stands
- The Ministry should revisit and evaluate the 30/70 principle to see whether it is applicable to our under-mechanised councils that rely on labour intensive technologies for service delivery.
- The Ministry should continue to monitor local authorities ensuring that they adhere to the top management salary caps.
- Urban local authorities should collect liquor licence fees in the urban areas while the rural local authorities collect in the rural areas. Furthermore, while the move towards e-governance through online liquor licence applications, the rest of the process is still centralised in Harare. The Committee recommends that the whole process be centralised to enhance convenience and efficiency.
- Government should settle its outstanding bills with local authorities.
- Local authorities should root out rank marshals and take-over the activity for revenue generation.
In conclusion Madam Speaker, the Committee remains seized with the continued violation of the Constitution by Treasury with regards to Constitutional provisions relating to Section 301:3 on the 5% allocation to local authorities and Section 301:1 for the capital grants. This is severely constraining service delivery by local authorities. Your Committees continues to categorically make it clear that Section 301:1 is self-executing and need not be preceded by an Act of Parliament. As such, the Ministry of Finance should make the allocations in compliance with the Constitution. Furthermore, the alignment of Bills with the new Constitution needs to be expedited. However, the Ministry needs to come up with more innovative ways in resource mobilisation and monitoring of the operations of local authorities.
This brings me to the end of the Local Government, Public Works and National Housing Ministry. Madam Speaker, I need to just remind you that my Committee oversights two Ministries. Now, I am going to the Ministry of Rural Development, Promotion and Preservation of
National Culture.
1. Introduction
1.1 The Ministry of Rural Development, Promotion and Preservation of Culture and Heritage is mandated with improving the livelihoods of rural Zimbabwean communities through an inclusive participatory approach that leverages on the preservation and promotion of unique culture and heritage to attain sustainable development.
1.2 The Ministry has structural challenges arising from its formation Madam Speaker which need to be addressed. The first one relates to resource sharing with the Ministries of Local Government, Public Works and National Housing and the Ministry of Sport and Recreation which has seen it not having decent offices and furniture for its officials up-todate. In addition, there are other areas such as Community Share
Ownership Trusts (CSOTs) which could rightfully come under the Rural Development Ministry for smoother monitoring given existing reporting structures. Furthermore, there are issues that relate to internal disharmony in the operations of the Ministry, especially with regards to handling of the Council of Chiefs and other traditional leaders.
2. Budget Allocations for 2016 and 2017
2.1 The Ministry was allocated US$13.652 million of which only US$8.08 million was actually disbursed. For the 2017 financial year, the Ministry was allocated US$15.75 million. This is less than their bid of US$32 million. To augment these resources, the Ministry has entered into an agreement with the UNDP for a three year US$5 million funding for capacity building of rural local authorities in computer, finance and management training. It is also working with the Association of Rural District Councils in training local authorities in the setting up of PPPs and promotion of business ventures.
3. 2016 Ministry Achievements
In the previous year, the Ministry achieved the following:
- drafting rural development strategy which was developed.
- systems audit tool for monitoring of Rural Local Authorities revised and adopted; iii) facilitated the appointment of 17 chiefs, 20 headmen, and more than 300 heads;
- three provincial councils and one chief’s council meeting held.
- successful staging of State occasions at national and provincial level;
- submitted three Statutory Instruments (SIs) to the AG’s office in preparation for gazetting; among many others.
.4.0 Post Budget Analysis Meeting Output
Your Committee held a post budget analysis meeting with Ministry officials and departmental heads led by the Permanent Secretary on Tuesday 17 December 2017. The following was observed:
4.1 Your Committee observed that this Ministry has serious structural problems with regards to resource sharing between itself and the Ministries of Local Government and Ministry Sport, Arts and Culture from where it was formed. The Rural Development Ministry got very little equipment such that it does not even have decent offices right from the Minister’s Office. This matter needs to be attended to with urgency in light of the fact that allocations for the rehabilitation of their new Mukwati offices and acquisition of office furniture were way less than their bids. The situation is so desperate that officials have had to take furniture from the scrap yard, which has to be supported with bricks.
4.2 Of greater concern, your Committee observed that, for the fourth year running, Treasury continues to be in breach of the Constitution by not making the constitutional 5% allocations to provinces and local authorities in line with Section 301 (3) of the
Constitution. While it is Treasury’s excuse that the allocation requires an Act of Parliament, your Committee is well aware that Section 301 (3) is self-executing.
4.3 Furthermore, even in terms of revenue streams, they are not receiving anything from the land tax collected by the Ministry of Lands; ZINARA disbursements are grossly insufficient and also nothing is coming from liquor licencing administered by the Ministry of Local Government yet a lot of liquor stores are found in the rural areas.
4.4 With regards to the $2 rural development levy which should come from $5 collected by the Ministry of Lands and Rural
Resettlement, nothing significant is remitted to RDCs since only 3% of the potential revenue is being collected due to the Lands Ministry being thin on the ground. It is the view of the Ministry of Rural Development, Promotion and Preservation of National Culture as opposed to the Ministry of Youth Development, Indigenisation and Empowerment by virtue of their core mandate of rural development. Under the current set up, Rural District Councils do not even report to the Ministry of Youth Development, Indigenisation and Empowerment; thus the new arrangement will ensure proper monitoring and evaluation.
4.6 Concern was also raised on the anomaly that the Ministry is administering the funds for the Council of Chiefs, yet it is not disbursing resources meant for the training and installation of traditional leaders. Furthermore, there are areas where chiefs and acting headmen have not been officially installed, resulting in them not receiving allowances thus breeding inequality. In some areas, lack of gazetting of land to demarcate between communal and resettlement areas has been cited as the reason for delays.
4.7 Your Committee also noted that little progress is being made with regards to the vehicle loan scheme and houses for chiefs. No disbursement were made on the 2016 allocation of US$3 million and this year the allocation has been revised downwards to US$2.5 million. If disbursed, this will only allow the acquisition of 70 out of a requirement of 219 vehicles. The current state of affairs makes it very difficult for chiefs to discharge their duties.
4.8 Concern was raised by your Committee on the fragmented nature of artist’s organisations which demand subscriptions. There is need for monitoring. Asked on whether the Ministry gets something from something from artists, the officials highlighted the fact that its parastatals, such as the National Arts Council of Zimbabwe; National Art Gallery and National Museums and Monuments do collect funds which they retain and use for their programmes and development.
4.9 Another issue of great concern is the encroachment of urban local authorities into rural district land which has caused much disharmony to the disadvantage of rural society. Cases in point are those of Zvimba, Goromonzi, Umguza and Mazowe; where land is being taken and allocated to land barons who then benefit while prejudicing RDC of potential revenue. The Ministry would like to be involved in meetings and processes that lead to the transfer of this land so that they protect the interests of rural district councils.
5.0. Summary of Recommendations Your Committee recommends that:
5.1 The Ministry of Finance to comply with the Constitution and effect the 5% allocation to local authorities in accordance with 301 (3).
It is very clear from the Constitution that the provision does not need an Act of Parliament for it to be effected.
5.2 Enough resources be allocated towards the refurbishment and furnishing of the Ministry head office. This office needs to be given the respect that it deserves.
5.3 Liquor licence collection be split between Local Government and Rural Development with the former collecting from urban areas and
latter, rural areas.
5.4 The RDCs be allowed to collect the $2 rural development levy on their own.
5.5 The Community Share Ownership Trusts should be administered by the Ministry of Rural Development Trusts where the beneficiary RDCs have existing reporting structures.
5.6 More resources need to be allocated towards the chiefs’ vehicle loan scheme to reduce backlog taking note that no disbursements were made in the previous year.
5.7 The three Ministries responsible for Local Government, Rural Development and Lands should be involved in negotiations to do with urban expansion to ensure that no party is disadvantaged thereby lessening conflict.
6.0 Conclusion
Your Committee is very concerned with the structural challenges bedevilling the Ministry of Rural Development and calls for the urgent allocation of resources for setting up a decent head office. Furthermore, the implementation of Section 301 (3) with regards to the 5 percent allocation to provinces and local authorities needs to be expedited so as to release much needed resources. Moreover, harmonisation with its former partners in Local Government and Sports; together with putting the Community Share Ownership Trusts under its administration will go a long way in proving operational efficiency. The Ministry also still needs to harmonise internal operations to remove discord and enhance efficiency.
HON. MUNENGAMI: The Ministry of Health and Child Care (MoHCC) is mandated to provide health care services to all
Zimbabweans in line with the Primary Health Care approach as set out in the National Health Strategy. In line with the country’s economic plan –ZIM ASSET (2013-2018), the Ministry’s main targets are to reduce morbidity and mortality due to priority diseases and conditions with special emphasis on HIV, TB, Malaria and NCDs. Under the ZIM
ASSET programme, the Ministry falls under the Food Security and Nutrition Cluster as well as the Social Services and Poverty Eradication Cluster.
2.0 KEY CHALLENGES FACING THE HEALTH
SECTOR
The following are some of the key challenges facing the Ministry:
2.1 The country’s health sector is facing numerous challenges, ranging from the shortage of skilled professionals and health-care staff; an eroded infrastructure with ill-equipped hospitals, many lacking functional laundry machines, kitchen equipment and boilers; and a lack of essential medicines and commodities. Most of the country’s hospitals and clinics do not have enough linen, electronic equipment as well as enough beds to cater for patients.
2.2 The country continues to experience a heavy burden of disease dominated by preventable diseases such as HIV infection and AIDS, malaria, tuberculosis and other vaccine-preventable diseases, diarrhoeal diseases and health issues affecting pregnant women and neonates. Every year, one in every 11 children in Zimbabwe dies before his or her fifth birthday. In other words, 35,500 Zimbabwean children under the age of five die every year.
2.3 The health sector challenges are currently being exacerbated by an imminent humanitarian crisis in the form of typhoid and cholera outbreaks, with some cases of typhoid symptoms being reported in Harare and in some other parts of the country.
2.4 Government occasionally clash with doctors over their remuneration while the ratio of doctor to patient has remained high. In line with this, Zimbabwe has suffered immensely from a brain drain of doctors. Recent statistics show that there are now 1.6 doctors for every 10 000 people. Most Government rural health centers are manned by two doctors who have to perform multiple tasks. Linked to this, there are just seven nurses and trained midwives for every 10 000 people in the country, and yet some trained nurses lie idle selling tomatoes in the streets because Government has frozen their posts and the staff establishment has not been reviewed in line with the current demands in the sector.
2.5 In September 2016 Harare Central Hospital suspended all elective surgeries because of a critical shortage of medical supplies. Mpilo hospital once closed while Gwanda hospital is facing acute water shortages
2.6 Due to poor funding of the health sector, 98% of drugs used in public health centers are funded by donors (UNICEF, 2016).
2.7 Some Zimbabweans travel long distances to access health care in clinics and hospitals despite constitutional provisions compelling the Government to provide this basic right to its citizens.
3.0 MINISTRY’S BUDGET ANALYSIS
3.1 The overall National Budget was reduced by 17.14% from
$4.9 billion in 2016 to $4.1 billion in 2017. Similarly, the Ministry’s allocation was also reduced by 14.76% from $331 million in 2016 to $282 million in 2017. The 2017 allocation is distributed among three major programmes, namely Policy and Administration ($16 308 000),
Public Health ($19 120 000), and Primary Health Care and Hospital Care ($246 548 000).
3.2 The 2017 National Budget allocated $281.98 million, representing 6.7% of the total budget to the MoHCC, making it the fifth highest vote. Other Ministries such as Primary and Secondary Education (19.6%), Home Affairs (8.9%), Defense (8.3%) and Agriculture,
Mechanisation and Irrigation Development (7.1%) complete the top five allocations.
3.3 Ministry Budget Trend
3.3.1 The Ministry’s budget allocation is on a downward trend since 2012 when it surpassed $360 million. The allocation declined from $337million in 2014 to $330m in 2016 and to just $282million in 2017. As a share of the total budget, the 2017 allocation is 1.6 percent lower than the 8.8% in 2016 (Figure 3).The Ministry’s share of 6.7% in the
National Budget falls far short of the 15% threshold stipulated under the
Abuja Declaration target and the Sub Saharan Africa average of 11.3% (UNICEF, 2016). The declining trend in health allocation partly reflects a weakening fiscal environment constraining government spending in general, and health and child care in particular.
3.3.2 As a percentage of GDP, the Health and Child Care budget
is 0.9% lower than the Sub- Saharan Africa average of 3%.The estimated per capita budget allocation has worsened from US$26 in 2015 to US$21.29 in 2017, which is far less than the WHO recommended per capita allocation of US$60, and the SADC average of $146.29. Neighboring South Africa, for example, spends an average of
$650 per person each year, while the Angolan Government set aside $200 to cater for each person’s health care needs in 2016.
3.3.3 The share of employment costs to the total heath and childcare budget increased considerably from 37.7% in 2010 to 60.5% in 2016. This share slightly declined to 55.4% in 2017, and this is a positive development. The net effect has been the crowding out of capital investments, maintenance and other expenditures for programs and service provision. Capital expenditures continuously declined from a pick of 34.1% of the budget in 2013 to just 7.5% in 2016, after which they slightly increased to 10.4% in 2017. Other current expenditures also declined cumulatively from 47.4% of the budget in 2010 to 32% in
2016, and slightly increased to 34.2% in 2017.
3.3.4 Although significant gains have been achieved in the health sector in recent years, especially in maternal and child health, sustaining these gains requires further fiscal space for health (UNCEF, 2016). With the continuous falling trend in healthcare financing, the celebrated gains can soon be reversed. There is thus an agent need to prioritise health and child care.
4.0 EXPENDITURE BIDS VS EXPENDITURE
ALLOCATION
4.1. The Ministry had submitted a bid of $198 750 000 for Policy and Administration but was only allocated $6 308 000, leaving a funding gap of $192 442 000. Primary Health Care and Hospital Care was allocated $246 548 000 against a bid of $795 000 000. There are huge funding deficits across all of the Ministry’s programmes.
5.0 ECONOMIC CLASSIFICATION OF THE 2017 VOTE
5.1 The bulk of the current transfers ($61,503,000) go towards Primary Health Care and Hospital Care, while the remainder goes towards Public Health ($6,726,000) and Policy and Administration
($2,706,000). Goods and services were allocated $10,447,000
6.0 GRANT AIDED INSTITUTIONS
6.1 The 2017 budget proposal has reduced the allocation for the strategic grant aided institutions like Mission Hospitals, Parirenyatwa Group of Hospitals and Local Authorities by US$572 700.00. This will definitely increase the burden on these institutions to meet the ever increasing healthcare demands.
7.0 MISSION HOSPITALS
7.1 Operations support for the Mission Hospitals has been slightly reduced from $463 750 in 2016 to $460 000 in 2017 while capital support has been increased from $380 000 in 2016 to $400 000 in 2017.
8.0 OBSERVATIONS
8.1 Government is not prioritising health, as shown by its position (number 5) on the expenditure allocation priority list. This is a very sad development given the challenges facing the health sector.
8.2 The current staff establishment for the Ministry of Health and
Child Care was adopted in 1980, 36 years ago and yet the Government continues to use it today. Currently, the establishment is not commensurate with the increased population which has almost doubled, the increased disease burden of HIV and AIDS, malaria, cancer, and other NCDs.
8.3 The 2017 budget allocation is heavily skewed towards health worker salaries. In other healthcare systems it is recommended that employment cost be about 48 to 60% of the total budget.
8.4 The 2017 health budget allocation gives a per capita health expenditure of $21.29. However, the ideal funding should be at $86 per capita to cover all conditions and to create an enabling environment for healthcare delivery.
8.5 Government funding mostly goes towards health systems costs while partner funding goes towards disease specific activities such as medicines and commodities.
8.6 Funding partners have consistently contributed about 50% of the total resource envelope which has been critical in sustaining the health sector.
8.7 Several disease management programmes receive a larger portion of funding from funding partners exposing the programmes to risk if donor priorities shift or if funding ends
8.8 The current allocation of resources does not reflect the institutional mortality figures by disease area.
8.9 Doctors and nurses that are being trained are not being absorbed into the institutions leading to poor service delivery.
9.0 RECOMMENDATIONS
9.1 The health care sector should be given more priority in
budgetary allocations so that we progressively approach the 15% Abuja declaration target. It is important to remember that the health of the nation is equally important as the security of the nation therefore to this end, the health budget allocation should be moved from 5th to 1st priority as this will go a long way in offsetting donor dependency syndrome.
9.2 Increase Government funding towards NCDs which are now a leading cause of morbidity and mortality.
9.3 In line with the above recommendation, the proposed National Health Insurance programme should be expedited to allow universal access to healthcare services by all citizens and hopefully boost drugs and sundries supplies.
9.4 In view of fiscal constraints facing the Government, focus of public spending should be to improve the quality of expenditures in health. Better targeting of expenditure, especially primary care, medicines, and supplies, while reducing the share of employment costs (both overall and in the health sector), should be a key policy priority for the Government.
9.5 Disbursement rates in health should be improved if the
Ministry is to offer effective and efficient health care services.
9.6 In the short term and in view of the sluggish economic outlook, development partner support will remain critical. However, given the unpredictability of donor support, such resources should be considered complementary to domestic resources, in the short term whilst domestic resource mobilisation recovers. Sustainability requires that the Government increases its domestic resource mobilisation efforts including innovative financing mechanisms such as public–private partnerships, and private investments to increase resource flows into the economy in general and the health sector, in particular.
9.7 The proposed Health Fund Levy of 5cents for every dollar of airtime and mobile data purchased is well appreciated and it is the right direction towards increased domestic Health financing. However the Minister should assure this August that the funds will be managed in a transparent, efficient and accountable manner if the envisaged benefits are to be realised. I thank you.
On a point of order. There is no quorum. – [HON. MEMBERS:
Inaudible interjections.] –
THE TEMPORARY SPEAKER (HON. DZIVA): Order Hon.
Members. I have recognised the point of order of Hon. Munengami, can the bells be rung.
Bells rung.
Notice having been taken that there being present fewer than 70 members, the bells were rung for Seven Minutes and a Quorum still not being present, THE TEMPORARY SPEAKER adjourned the House
without question put at Six Minutes past Five O’clock p.m. pursuant to the provisions of Standing Order Number 56.
NOTE: The following members were present when the House adjourned: Hon. Beremauro, G; Hon. Chapfika, D; Hon. Chibagu, G;
Hon. Chikuni, E; Hon. Chinamasa P.; Hon. Chitindi, C; Hon. Chitura, L;
Hon. Chiwetu, J.Z; Hon. Dube, S; Hon. Gonese, I.T.; Hon. Holder, J; Hon. Hungwa, G; Hon. Katsiru, L; Hon. Kaundikiza, M.; Hon.
Kwaramba, G; Hon. Madubeko, J; Hon. Mahiya, M; Hon. Mangami, D; Hon. Mapiki, J; Hon. Mashange, W; Hon. Matambanadzo, M; Hon. Matimba, K.M; Hon. Matsikenyere, N; Hon. Matuke, L; Hon. Mawere, V.M; Hon. Mawere, R.N.S; Hon. Mhere, E; Hon. Mhlanga, J.N; Hon.
Mkandla, M; Hon. Mlilo, N; Hon. Mpala, M; Hon. Mpofu, B; Hon.
Mpofu, S; Hon. Mukwena, R; Hon. Munengami, F; Hon. Munochinzwa,
M; Hon. Musvaire, W; Hon. Ncube, G.M; Hon. Ncube, H; Hon. Ndlovu,
N; Hon. Ndoro, L.F; Hon. Nduna, D; Hon. Nkomo, Mail; Hon. Phiri, F.P; Hon. Rungani, A; Hon. Shava, J; Hon. Shongedza, E; Hon. Sibanda, K; Hon. Toffa, J; Hon. Tshuma, J; Hon. Uta, K; Hon. Vutete, M; Hon. Zhou, T and Hon. Zindi, I.
[1] Global Finance Magazine
PARLIAMENT OF ZIMBABWE
Tuesday, 24th January, 2017
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. DEPUTY SPEAKER in the Chair)
MOTION
LEAVE TO MOVE SUSPENSION OF STANDING ORDER NO. 51
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Madam Speaker, I seek
leave of the House to move that the provisions of Standing Order No.
51, regarding the automatic adjournment of the House at Five Minutes to
Seven o’ clock p.m. on sitting days other than a Friday and at Twenty
Five Minutes to One o’ clock on a Friday, be suspended for the series of sittings in respect of the Reserve Bank of Zimbabwe Amendment Bill
[H.B. 12, 2016], Budget debate, Appropriation and Finance Bills.
Madam Speaker, the urgency is obviously with respect to the Budget which we should have debated and resolved in December so that we start the new financial year with the new budget. It is my desire that we expedite the resolution of this matter. Motion put and agreed to.
MOTION
SUSPENSION OF STANDING ORDER NO. 51
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): I want to thank Hon.
Members for agreeing that I move, which I am now doing, that the provisions of Standing Order No. 51 regarding the automatic adjournment of the House at Five Minutes to Seven o’ clock p.m. on sitting days other than a Friday and at Twenty Five Minutes to One o’ clock on a Friday be suspended for the series of sittings in respect of the Reserve Bank of Zimbabwe Amendment Bill [H.B. 12, 2016], Budget debate, Appropriation and Finance Bills.
HON. GONESE: Thank you very much Madam Speaker. I think
that as a matter of principle, this is not a good practice. We were all aware that the last financial year was coming to an end and towards the end of last year; we had ample time to have debated the Budget. We have said it before Madam Speaker, that all political parties must know what the priorities for this country are. If you schedule your party conferences towards the end of the year when we should be dealing with important matters which are affecting the nation, it means that we are losing the plots. This is something which has been happening time and again. When the Budget was presented, we did have some time, to have deliberated on the issues without rushing through the process. What we find – [HON. MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Order Hon. Members, can the
Hon. Member be heard in silence.
HON. GONESE: What we find objectionable from this side of the House Madam Speaker, is a situation where we now have to rush through the process as a result of which we are not going to be able to do justice to the matter and really apply our minds simply because we have run out of time.
I, Madam Speaker, and my colleagues feel very strongly that we must not continue having such a practice. We should have given this ample time and in particular, we should have dealt with this business in December without rushing through it. Then perhaps wind up the process at the beginning of the year. Today is the 24th of January, we are now coming to the end of this current month which is actually the time period or timeframe within which we should have passed the Budget. We just want to raise our reservations about the manner of conducting business in this manner. We want to say to the Hon. Minister, that in future, we will not condone such practices and we are not happy with this state of
affairs.
I feel that as representatives of the people, we must raise these concerns so that they are recorded. What is going to happen now is that because we have run out of time, today we are just going to rush through the motions. We are not going to be able to make the necessary suggestions and perhaps the necessary input where the Minister will have time to reflect upon what would have been raised but because we have run out of time, the Minister will simply want to pass it through so that we are in compliance with the relevant provisions.
So for these reasons, Madam Speaker, I feel that we must record our reservations and say that this is a bad practice and we are not happy with it.- [HON. MEMBERS: Hear, hear.] –
HON. ENG. MUDZURI: Thank you Madam Speaker, I just want
to add to what my colleague has said.
Honestly, we are elected to ensure that we enhance the Executive to do their work. We had the whole of January, from the 1st of January and today it is the 24th. We could have been in Parliament earlier and done proper business to deal with these issues – [HON. MEMBERS:
Inaudible interjections.]- This is not about a rally but about a country. We know that it is difficult to get resources and we need to ensure that the Minister – [HON. MEMBERS: Inaudible interjections.]-
THE HON. DEPUTY SPEAKER: Order, order in the House!
HON. ENG. MUDZURI: We need to ensure that the Minister has reasonable contributions from Members of Parliament. Our difficulty is that when we stretch our days to the end, people get tired. There is what they call, incised meeting returns and at the end of the day, we will not have deliberated enough to ensure that we have a reasonable Budget to run the country.
So, I want to appeal to the Minister that next time, in spite of the shortage of money that you might look at, let us have enough days to debate. There is enough that has gone through Parliament where Parliament has been staffed to the extent that they have no offices, they have nothing yet you can accord them one thing, enough time to research and come to Parliament and spend reasonable time so that they are able to contribute to assist you. I thank you.
*HON. CHINOTIMBA: Thank you Madam Speaker. I rise to
debate on the issue of the Finance Bill. Whether or not we have delayed, the time to debate is there as nothing stops us from debating the Finance Bill. Even if we had debated the Bill last month or last year, it is the same.
We are saying, as proposed by the Minister, let us debate today even if it means debating until tomorrow, it is fine so that the country moves on. This matter of pointing fingers is neither here nor there pertaining to the Finance Bill. The fact that we went to Masvingo has nothing to do with this Bill.
I am saying; let us debate what has been tabled by the Minister. All those who are prepared to debate should do so because we have no time. I thank you.
*HON. MUNENGAMI: Thank you Madam Speaker. I stand to
contribute to this debate. What has been said by my colleagues is good but we need assistance so that we do not stop debate at 1900 hours. We want assurance as to when debate will finish because we do not want to be rushed during debate. If the Minister of Finance and Economic Development allots five minutes debating time then Committee
Chairpersons are allotted two minutes each, that is fine. If members of the Committee on Transport want to debate on the issue, they should be given ample time to do so before the other Committee comes in.
In this House, history has shown that Committees present in series and thereafter debate ensues, thus there is no time for debate to flow smoothly under such circumstances. After the Chairperson has made his/her presentation, other members of the Committee should be able to debate and comment until tomorrow if possible because you have given us that time. Please do not rush us and inform us that we have run out of time. It will be acceptable if it means even debating up to Saturday. I thank you.
*HON. MAONDERA: Thank you Madam Speaker. What is
surprising is that we want to rush when we have these matters yet other urgent matters like our deplorable road conditions should be declared as national disasters – [HON. MEMBERS: Inaudible interjections.]-
THE HON. DEPUTY SPEAKER: Order, order Hon. Member,
you will have time to debate on that.
*HON. MAONDERA: No, I am not debating. I am saying Ministers like Hon. Chinamasa, yes the issue of the Budget is very important but why does he not move for suspension of business on debating on issues pertaining to national disasters?
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Madam Speaker, I want to
thank Hon. Members who have spoken raising concerns about the process. I want to assure you that there will be no suppression of debate as all Members of Parliament will have ample time to debate on this issue – the Budget.
I attach great importance to the economy and debates around the economy and want all views of Hon. Members to be put on the table of this House so that they are considered and taken into account if they are worth to be taken into account. I do not want to suppress any debate. I thought that Hon. Members would thank me because they had ample time to consider my Budget Statement and the Budget itself; that is, the long text of the Budget. They have had enough time to read those documents; so they cannot have excuses that they had no time. I also want to say I had initially asked that we meet.
*HON. MUNENGAMI: On a point of order Madam Speaker. It
is not that we are saying we did not have time. We would want the Minister to understand us. It is not that we are saying we do not have time. We had enough time and we went through the Budget and today we came, sat and discussed in our Portfolio Committees and made our reports. We have come because we want to debate. We do not want to be suppressed or forced; our request is that we want time to debate. His aim is kuti vatimbunyikidze. We are all human beings and when we take a long time, our concentration diminishes. The Budget is very important and we should make it an important thing because it is important. What time are we going to take debating because by 8 o’clock, our concentration will have diminished? I thank you.
*THE HON. DEPUTY SPEAKER: The Minister will answer in
various ways. If we say that the Minister has failed, that is being disrespectful.
HON. CHINAMASA: Madam Speaker, let me repeat. There will
be no suppression of debate and as to the manner of the debate, how the Portfolio Committees will make their reports, the Chair will guide that debate and clearly not the Minister. For me, I want all views about the Budget to be put on the table of this august House so that we take those views into consideration. Zvekumbunyikidzwa izvi, clearly if it happens, it will not come from the Hon. Minister. I thank you.
Motion put and agreed to.
FIRST READING
MOVABLE PROPERTY SECURITY INTERESTS BILL [H.B. 7,
2016.]
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA) presented the Movable
Property Security Interests Bill [H.B. 7, 2016].
Bill read the first time.
Bill referred to the Parliamentary Legal Committee.
SECOND READING
RESERVE BANK OF ZIMBABWE AMENDMENT BILL [H.B. 12,
2016].
First Order read: Adjourned debate on motion on the Second Reading of the Reserve Bank of Zimbabwe Amendment Bill [H.B. 12, 2016.].
Question again proposed.
HON. ENG. MUDZURI: Madam Speaker Ma’am, I thank you
for the Reserve Bank of Zimbabwe Amendment Bill (Bond Notes Bill). I want to add my voice to a number of people who have presented their cases in terms of this Bill. I would rather change and speak in Shona.
*Madam Speaker, the issue of the Reserve Bank Amendment Bill arose from the Emergency Powers. Then, the people gave their opinion on bond notes and it is a pity that the bond notes are now in use. We have never heard of a country that came up with a law and insisted that different entities are the same. The problems that the people are facing are that when one arrives in a banking hall, people do not know what type of currency they would be receiving. I questioned the Leader of the House and he answered by saying that; upon your entering into the bank, you are told that you are going to receive so much US dollars and so much bond notes being withdrawn from one account. But, I would remember that people were forced to have Foreign Currency Accounts that they used to transact in US dollar notes. The banks can now decide whether to give you bond notes or US dollar notes which you may not want to use. But the Leader of the House in response to my question said, I would be given a currency of my choice and I should specify what currency one receives after they have deposited what type of currency.
We started with the Minister of Finance and Economic
Development who indicated that these bond notes initially were said to be for incentives on export earnings but it is the currency that is now being used to take place of the foreign currency that is in our accounts ... *THE HON. DEPUTY SPEAKER: Order Hon. Members, I can
see you cannot whisper, please lower your voices. We also want to hear what the Hon. Member is debating and the people at the back also want to hear.
*HON. ENG. MUDZURI: What we are saying is that you should hear what the ordinary men and women in the streets are saying. It should be made clear that the people refused to accept the bond note and that if it is going to be used in this country, there should be separation of accounts, one in US dollar and the other one in bond notes. When one wants to go out of the country, they will withdraw from their US dollar accounts. The same would apply for the bond notes. There are shops in town where prices are different for one who is using cash, swiping and using bond note. If you have a US$100 note and a US$50, it has a different value. We should not take this country backwards. A lot of people suffer and the majority of these people are accessing their salaries in the form of $200 to $300 notes. There are bank charges on a daily basis for minimum withdrawals ranging from $30 to $50 per day.
If the Reserve Bank comes up with limits, they tend to work to the disadvantage of the ordinary man because he incurs expenses arising from bank charges. That erodes the people’s savings. We should have a law that allows people to use a currency of their choice. I do not know whether one can come up with nine accounts for nine currencies that we currently use. I would want the Hon. Minister in his response, to address the issue whether you could have a Yuan account, US$ account, Rand account, Pula account, Euro account and all those currencies that are in use in Zimbabwe. We are having problems in opening accounts for these currencies.
The problem at the moment is that we are promoting money changers that are on the streets. They are busy exchanging currencies. There are a lot of people who are creating other accounts outside this country. If you want to deposit money into a certain account, they say bring the US$ and they post that money to Dubai and other such places and they will charge you 10% or so. So, we are creating another problem because of the introduction of the bond note and we do not know how best it can be controlled. We should not have brought the bond notes. The US dollar should have remained in circulation. People are not accessing the money because of the bond notes. We need assurance as we finalise debate on the Bill that the US dollar that we are saying is equivalent to the bond note, if we had done that in 2008 and said one quintillion was equal to US$1, we could have been somewhere.
We are now eroding the US dollar account and eventually, we are going to hear that all our accounts now have bond notes. Our US dollars should not disappear from our accounts because we use them for travelling, paying school fees and importing goods. How best can we access our US dollars without being controlled by the RBZ? I thank you.
*HON. MUSUNDIRE: Thank you Madam Speaker. I conducted
research in my constituency as regards the bond note. People did not accept it and even up to now, they do not like it. If we look at our economy, from 2008 to date, the money in circulation is more than $600 million at any given time. If you look at the bond note that is in circulation, it is supposed to be $200 million but they indicated that $70 million will be in the form of $2 bond notes. What is currently on the ground is that Government has already disbursed more than $500 million worth of bond notes.
There has been a glut of bond notes and it has exceeded what we have agreed. The bond note and this legislation is here to steal people’s money. Let us revert to the US dollar or even the Rand. This is my contribution. I thank you.
*HON. MAHOKA: Thank you Madam Speaker. I also want to add my voice to the debate. Firstly, I would like to thank the Hon. Minister and the Governor. The thinking behind the bond note and its introduction to this country is of the highest degree. The people of Zimbabwe are very happy because the bond notes have helped us. We no longer have problems if you go to the banks. When tobacco farmers produce their crop, ....
THE HON. DEPUTY SPEAKER: Order, order, Hon. Members.
Allow us to hear what the Hon. Member is saying.
*HON. MAHOKA: We were given a lot of money because of tobacco. You see us beautiful with glowing skins and our husbands have developed large stomachs, it is because of the money that you have paid us – [HON. MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Order, Hon. Members.
*HON. MARIDADI: On a point of order Madam Speaker.
*THE HON. DEPUTY SPEAKER: What is your point of order?
*HON. MARIDADI: Madam Speaker, my point of order is on the point that ‘our husbands now have developed large stomachs.’ Does the Hon. Member have a single husband and if she has many husbands, how many does she have? May she display her status?
*THE HON. DEPUTY SPEAKER: There is no point of order.
*HON. MAHOKA: Some Hon. Members take this House lightly. They came to Parliament with trivial matters not putting at heart representation of the people. We should know that we came here to represent people and not to play – [HON. MEMBERS: Inaudible interjections.] –
*THE HON. DEPUTY SPEAKER: Hon. Members, let us
understand each other in this House.
*HON. MARIDADI: I do not believe that we do not respect this House but she is the one who does not because she is the one who insulted the Vice President in public. She is the one who does not respect people. She scolded the Vice President of this country. Before she would want people to be orderly, she should start with herself because she insulted the Vice President of this country in public and it hurts us.
*THE HON. DEPUTY SPEAKER: Order, order. Hon. Members. I have heard what the Hon. Member said. She said, let us respect this House. Can we go ahead with our debate.
*HON. MARIDADI: The Vice President, Hon. Mnangagwa is the Leader of the House, whether he is in Shurugwi or Mutoko, he carries the image of this august House. He should not be insulted by nonentities. – [Laughter.] –
*THE HON. DEPUTY SPEAKER: Order, order Hon. Members.
Can we have order in the House? Can we please mind our language in this august House. Hon. Members, please listen. Hon. Maridadi, you were referring to Hon. Mahoka that she insulted the Hon. Vice President and then you said she is a nonentity. She is an Hon. Member – [HON. MEMBERS: Inaudible interjections.] – Withdraw that statement. What does pombi yadonha mean?
*HON. MARIDADI: My understanding of a nonentity is just an ordinary person, a not so important person. It is not an insult. While in Parliament, we ordinarily say this Hon. Member is a back-bencher.
*THE HON. DEPUTY SPEAKER: Hon. Member, there is no
ordinary person in Parliament. Can you please withdraw that?
*HON. MARIDADI: I am withdrawing my word ‘nonentity’ but I
am also a nonentity because I am not a Whip or a Chairperson of a Committee but I am a back-bencher. So, we are both nonentities. Hon.
Mahoka and Hon. Maridadi we are the nonentities. I thank you.
*HON. MAHOKA: I was talking about the need to be serious in this august House. The people who elected us are observing how we are belittling or disrespecting this House. Our words should be proper. We should not just trivialise issues here in Parliament. Some people are “vana muti ngauwe tinonge tsotso”.
*HON. MARIDADI: It is even worse; she said the Vice President is an ordinary person.
*THE HON. DEPUTY SPEAKER: Hon. Members, we
complained about the need for us to forge ahead with our work. Let us be mindful of the time, you do not just rise and debate without recognition. Stand up and say your point of order, I did not hear what you said.
*HON. MARIDADI: I have been hurt but as a man, I cannot shed tears. She has referred to the Vice President as an ordinary person and she should withdraw. This is something she should not say in Parliament. It hurts me so much Hon. Speaker. May she please withdraw her words because it is painful for her to insult the Vice President of this country. I thank you.
*THE HON. DEPUTY SPEAKER: Order Hon. Members! Hon.
Mahoka, I urge you to speak plain language because what you said is now being taken with a different connotation altogether.
*HON. MAHOKA: Thank you Madam Speaker. I believe the issue of bond notes is important and it should be debated in depth. The people in the communal lands are happy with the bond notes. Well done Hon. Minister, you really realised the challenges that this country was facing. You intervened and came up with an important note called the bond note. The 10 provinces are happy because of the bond notes. We went round in all the provinces and they all accepted it. Farmers are happy. Those who do not own any land may be hurt.
There should not be a glut of bond notes on the market but, as it is, it should be maintained. You have done very well and you are doing quite well. Keep it up. You should have a double portion in terms of being a Minister because you have exceeded your performance.
On the negatives of this bond note, in the communal lands, we have not witnessed a situation where prices differ in terms of which currency you are using. That is if you are paying using bond notes, the item is expensive and if one pays in US dollar the price is lower or if you do a transfer, the price becomes dear. We do not have that in the communal lands, may be it pertains to the urban areas. The communal people are happy with the bond notes. I have risen to support the
Minister that what you and the Reserve Bank Governor did is very good. Keep on thinking along that track so as to ensure the improvement of our economy. In this House we have been thinking about it so that our country grows. I thank you Minister.
*HON. MAPIKI: Thank you Madam Speaker. I would like to add my voice on the issue of bond notes. In Shona they say, “kuramba yechidembo ndokunge yetsuro iripo”. Beggars cannot be choosers. So, because of the plight of our economy, it is good that we use the bond notes. Long queues to withdraw money have now subsided. I urge you Hon. Minister that there is need for people who dig gold to be decriminalised. I believe that there is need for us to beneficiate our chrome so that we do not depend on diaspora remittances. Those people that are building big houses should actually be buying machinery and be given incentives because a lot of money is being used in real estates. Instead of stowing our values in real estates, we should be using it toward the acquisition of equipment and machinery to enhance our industry. We should wear the right type of clothing at the right time. I thank you.
*HON. MUCHENJE: Thank you Hon. Speaker. I would like to contribute on the issue of bond notes. The introduction of bond notes to the country is causing problems. We were of the view that the introduction of bond notes would improve the liquidity crisis in the country. People are still sleeping on the streets. Bond notes are not available. The situation is worse than before the introduction of bond notes.
People who are in the communal lands and in the farming areas do not have bank accounts or access to Eco-cash. They are having serious problems in accessing their money. If you have such a worker – you go to the bank and you are given seventy dollars or fifty dollars and you need to pay your worker one hundred and twenty dollars; it means that that person cannot receive their salary at once. That amount you receive from the bank will be used for your requirements and payment to your workers.
As Hon. Members, we have not yet received the Constituency Development Fund. We have development projects in the constituency but we fail to access funds because of the Reserve Bank law. The Reserve Bank has written instructions to the banks that a certain figure has to be disbursed on a daily basis. As people’s representatives, we have problems in accessing that money. Personally, I am having difficulties in doing anything else due to the inaccessibility of funds at the banks. Even if we approach bank managers to give us money, they say, as legislators, we should come to Parliament and change the rules so that we can get more cash. The banks are saying they do not have cash.
If you receive fifty dollars at the bank, it will be US$20 and thirty dollars bond notes per day. If you have a motor vehicle that has broken down and you may want to do certain transactions where you cannot use your card, it is difficult. At road blocks, police require cash but they do not have swiping machines. So, we urge the Hon. Minister to revisit the issue of bond notes. He must come up with other solutions. We are going to the bearer cheque era and we are going to have useless papers with us.
The bond notes are not available. My life has become difficult as a result of the bond notes. I can no longer assist orphans or those that are being affected by floods because cash is not available. People in the communal lands do not have accounts. I thank you Hon. Speaker for giving me the opportunity to debate.
*HON. MUDARIKWA: Thank you Madam Speaker. The issue of bond notes is a job well done by the Government. We thank the Minister of Finance and Economic Development for so doing. If he comes to Uzumba, I will slaughter a cow for him.
Mbare Msika was no longer in business. People did not have cash to transact with. Our farmers are now able to transact because of the bond notes.
*HON. TARUSENGA: On a point of order Madam Speaker, the Hon. Member who is debating is not properly dressed. He is wearing a leather jacket.
*THE HON. DEPUTY SPEAKER: Hon. Member how are you
dressed? – [HON. MEMBERS: Inaudible interjections.] -
Hon. Member, we have observed that you are wearing a leather jacket. May you go and wear a formal jacket?
*HON. MUDARIKWA: Madam Speaker, I am pleading with you – [HON. MEMBERS: Inaudible interjections.] -
*THE HON. DEPUTY SPEAKER: How am I expected to hear what he is saying? – [HON. MEMBERS: Inaudible interjections.] - *HON. MUDARIKWA: May I be allowed to debate as someone who is coming from – [HON. MEMBERS: Inaudible interjections.] -
*THE HON. DEPUTY SPEAKER: Hon. Member, if you are
not properly dressed, you are not allowed to debate. May you please go and correct that anomaly. – [HON. MEMBERS: Inaudible
interjections.] -
Hon. Madondo exchanged his formal jacket with Hon.
Mudarikwa’s leather jacket –[HON. MEMBERS: Inaudible
interjections.] -
HON. D. SIBANDA: On a point of order Madam Speaker.
THE HON. DEPUTY SPEAKER: What is your point of order?
HON. D. SIBANDA: Madam Speaker, thank you very much. My
point of order Madam Speaker is, we have noticed that the Hon. Member has just been given a jacket by another Hon. Member. There is need for us to respect this House Hon. Speaker. It is not a dressing room.
If they have to exchange clothes, it has to be done out of this august House. Thank you very much; not in the Chamber.
THE HON. DEPUTY SPEAKER: Order, Hon. Member. I still
remember the Hon. Member who was putting a point of order one other day. Someone queried the type of dressing but at the same time, something happened and she changed her dressing and we continued.
Yes, I remember. - [HON. MEMBERS: Inaudible interjections.] -
HON. D. SIBANDA: Madam Speaker, I will insist that we respect this august House. Madam Speaker, when I was putting on my African attire for your own information, I had a scuff which I used. I never took off my dress and put on another like what the Hon. Member has just done.
THE HON. DEPUTY SPEAKER: Order Hon. Members, I am
also advised by the administration, yes they can advise me because they help me when I am here on the Chair. - [HON. MEMBERS: Hear, hear.] - Can you please proceed Hon. Mudarikwa.
HON. HOLDER: On a point of order Madam Speaker. Ko munondirambidzirei kutaura kana ndine point. Madam Speaker, according to the Standing Rules and Orders No. 76 (viii). Tika enda pa attire for female members, “… shall include the following; suits African wear full dress, skirts and blouses.” The Hon. Member who was raising a point of order is not wearing a suit, is not wearing a skirt, nor African attire. So there is a problem.
THE HON. DEPUTY SPEAKER: Order, can we have order
please. Can we have order in the House Hon. Members here, Hon. Holder you are out of order please.
*HON. MUDARIKWA: Thank you Madam Speaker. I was
talking on the issue of farmers. We have SMEs. SMEs are now operational because of the money that is available. Those that sell tomatoes, crotchet work are able so do it because there is money in circulation. The economy of this country has improved through the reselling of goods that one produces and resells to the other.
We have a lot of gold this year because the buyers of gold are accessing the economy. I believe next year the gold industry will produce more than fifty tonnes. So our SMEs and our farmers are in the same boat. You will not be surprised that those that have constituencies in Harare do not want the use of bond notes. Some of them were money changers, so they benefited from that.
HON. MUNENGAMI: On a point of order.
THE HON. DEPUTY SPEAKER: What is your point of order?
HON. MUNENGAMI: My point of order Madam Speaker, is that
I am pleading with Hon. Members of Parliament that are in Harare to please rise. I am not through with my point of order.
THE HON. DEPUTY SPEAKER: Hon. Member, would you
please take your seat.
*HON. MUDARIKWA: The mainstay of this country Zimbabwe
in the growth points because of bond notes, our farmers are able to buy
fertilizer.
HON. MUTSEYAMI: On a point of order.
THE HON. DEPUTY SPEAKER: What is your point of order?
HON. MUTSEYAMI: My point of order is that Hon. T. J. Dube
is fast asleep, may they please wake him up.
THE HON. DEPUTY SPEAKER: Hon. Member, he is not
sleeping. -[HON. MEMBERS: Inaudible Interjections.] –
*HON. MUDARIKWA: Furthermore Madam Speaker, I have
said that our farmers in the communal lands are now able to buy fertilizer because there is now money in circulation. They now have bond notes to buy fertilizer. During Christmas time in my constituency, a lot of people paid lobola because a lot of people now have cash. Bond notes are encouraging people to pay lobola and they are ensuring that people love one another.
The bond notes will not stop because people are going to marry one another and live as families. We are grateful, the issue of bond notes is good. We want the Minister to have the highest note as $5. Even our social economic life has improved. Bus operators and commuter omnibus operators are operating their businesses well because the commuters are now using bond notes to pay for their fares. The problem with politics Madam Speaker, is that the party would have come up with good initiatives such as bond notes which are being opposed by the opposition, then understand that you have done very well. We know that they hate the bond notes but this is what we are now going to be using.
We were at a party where a relative was wedding. There is a song but because of the ruling that we cannot sing in Parliament, I will instead bring compact discs of people praising the advent of the bond notes in the communal lands. They even play the drum, so the Ministry did a good job and we urge them to go further. People are even coming up with prayers in church for Hon. Chinamasa to have a long life on this planet because he has done very well to ensure that our economy improves.
I thank you so much Madam Speaker for chairing very well. I wanted to say that I am just coming from Dubai and I did not have time to change into formal wear but because of the important debate of bond notes, I had to come clad in a leather jacket to add my voice to the debate. I thank you.
+HON. TOFFA: Madam Speaker, the introduction of the bond notes in Zimbabwe, people in the villages are crying and complaining.
*HON. CHINOTIMBA: On a point of order Madam Speaker,
some of us are repeating. She once debated this issue.
*THE HON. DEPUTY SPEAKER: We will check our records
to see if she has already debated.
+HON. TOFFA: Madam Speaker, people in Bulawayo are
complaining about bond notes. There are no factories in Bulawayo and there is no employment at all. People are not getting these notes from the bank because they are not getting any salaries. They are getting money by selling goods out of the country. This year, a lot of women failed to raise money to send their children to school because they cannot get US dollars. When the Minister was talking about bond notes, he said they were going to assist people in Zimbabwe but the problem is that old people stand in queues for ages despite being sick from different ailments and there is no-one to assist them. These bond notes have created problems for people and people are now blaming MPs for just agreeing to the introduction of bond notes. Hon Chinamasa said he got a loan of $200 million but what is surprising is that they are releasing this money in small batches. They should release the money in large amounts at a time. People are now thinking that maybe we do not have the $200 million loan guaranteed. It is not fair for the elderly to spend the whole day queuing for money. Children are no longer going to school. When we also look at gender issues, women were affected a lot by the introduction of the bond note. Thank you Madam Speaker.
*HON. MAJAYA: Thank you for affording me the opportunity to add my voice on the issue of bond notes. We do have the Western Union in this country where we can receive money from outside the country but we cannot send money outside when we have bond notes. I come from Mbire in Mashonaland Central and in Ward One (Kanyemba) near the border, we are using the Kwacha as a substitute because the bond note cannot be exchanged into the US$ currency. It is a hard currency for those people in the communal areas. If you are given a US$100 in the form of bond notes - [HON. MEMBERS: Inaudible interjections.] -
*THE HON. DEPUTY SPEAKER: Order Hon Members; let us
be serious about the business of this august House. There are those Hon. Members who came into this House to make a lot of noise thereby disrupting the activities as they speak across the table of the House. I will not tolerate that. If you want to speak to someone, go next to that person and talk to them rather than shout. It is demeaning as Hon Members of this august House. As Hon. Members, I expect you to behave like Hon. Members.
*HON. MAJAYA: Thank you Madam Speaker for ensuring that
they listen to my debate in silence. The bond notes are too bulgy and it is self evident when you move around – especially for the old people who will have bulgy pockets from their sales proceeds. If you go into shops and you want to buy a tyre which costs US$150, you will be asked to pay $180 bond and if you are going to transfer the money, it is $200 bond. There is a price disparity as a result of the advent of the bond notes. The people that went around were told that the ordinary people of Zimbabwe were not accepting the bond note. The situation should be corrected and we should discontinue the use of the bond notes.
*HON. ZEMURA: I want to thank this august House for the
debate, especially the ones in support of the advent of the bond notes. Those of us who are in the communal lands were having problems, our mealie meal provisions were getting exhausted. I thank the Minister for bringing the bond notes as well as bond coins for purposes of transacting. Some of us suffer from sugar diabetes. We were given sweets as a form of change. I do not have grand children no one eats the sweets. The bond notes will ensure that we will be able to pay for grinding meal fees as opposed to using maize as a form of payment. Some people park their vehicles metres away from the toll gates asking for money to pay toll fees. It is now easy, people are getting in and out of Harare easily. So the bond note has brought developments to the lives of the people.
Old people, after selling tomatoes and vegetables, keep their monies tied in their Zambian wrappers. We thank you for introducing bond note so that we can use it in the granary. We want it to circulate in the country and it must not be used outside – [HON. MEMBERS:
Inaudible interjections.] –
*THE HON. DEPUTY SPEAKER: Order Hon. Members, allow
her to debate her opinion.
*HON. ZEMURA: Mozambicans were bringing in clothes
popularly referred to as Zambian material and bales of second hand clothes because they were taking a lot of US dollars out of the country. Now with the introduction of bond notes, they are no longer coming here; they were stealing from us. We want to thank the Minister for a job well done. If the Minister has done well, ordinarily people do not want to praise him. We thank you Minister, continue with the bond notes so that as we sell our maize, we do not struggle for cash. I thank you.
HON. MUTSEYAMI: On a point of order Madam Speaker.
THE HON. DEPUTY SPEAKER: What is your point of order?
HON. MUTSEYAMI: Thank you. My point of order is in terms of Order No. 86(d). Madam Speaker, I am kindly putting this through you to the House as our Hon. Speaker that the Hon. Minister of Transport and Infrastructural Development, Dr. J. M. Gumbo, if he can come to this House as a matter of urgency within the very near future to give a statement to the country about the plans that he is making towards addressing the state of our national roads, specifically – [HON.
MEMBERS: Inaudible interjections.] – Madam Speaker, if the Hon. Minister could come to this august House to give a statement to the country, to Parliament in terms of the plans that he has to address the challenge of roads across the country; I am specifically talking to the road from Birchenough Bridge, Tanganda right up to Chiredzi –
THE HON. DEPUTY SPEAKER: Hon. Member!
HON. MUTSEYAMI: I am just closing, let me close my
statement.
THE HON. DEPUTY SPEAKER: No, Hon. Member.
HON. MUTSEYAMI: It is a point of order which I am entitled to and I am about to close...
THE HON. DEPUTY SPEAKER: Hon. Member, I have to
guide you. You are not supposed to give him what to say in the statement because you said the whole country. Now you are citing particular roads, why?
HON. MUTSEYAMI: We are having a challenge of accidents on
the road from Tanganda to Chiredzi; it is ridden with potholes. It is important for the Hon. Minister to come and address that. I thank you.
You have to take note that I am a very senior member in this House and I cannot go through a workshop on how to address issues. I thank you.
THE HON. DEPUTY SPEAKER: We will talk to him.
*HON. MUTOMBA: Thank you Madam Speaker for affording
me this opportunity on the issue of the bond notes. First and foremost, I would like to extend my gratitude to the Minister of Finance and Economic Development for his wisdom in dealing with the problem that this country is facing. May God continue to guide you by giving you this wisdom; this country was facing problems and challenges. The queues have now disappeared from the banks.
I also have another view point. The awareness that is being created by the bond notes, I believe we are now going backwards because all countries are now using plastic money. It is my request Madam Speaker, that if that same publicity, the advertisements of bond notes could be done to promote the use of plastic money or electronic transfers. In the region and the world over, they no longer do that but we are remaining with our culture of moving around with hard cash.
It is my plea that we should strongly and aggressively market the use of electronic transfers or plastic money, that is my plea. We should put a lot of effort in that direction. I am also of the view that our markets are in a bad state. People used to go to Fourth Street and exchange dollars and Rands. What is happening on the market is that companies now charge different prices depending on the method of payment you are using. There is a price for US dollars, for transfers and for bond notes which in most cases the bond note is inflated a bit. If possible, this must be monitored or there should be a toll free number to make complaints on companies that are doing this and it is my plea that such issues be implemented. What will then happen is that everyone will be forced to keep their money in the bank. It will force everyone who has a company to bank their money with the banks so that the outflow of cash is now controlled, the money supply point is now controlled. Money supply will improve if everyone is using their money through the banking system. This is what I am talking about and I thought I should add my voice to this issue and talk about the monitoring of bond notes. There should be publicity for the use of bond notes, which runs parallel with the promotion of the use of plastic money. I thank you Mr. Speaker.
+HON. R. MPOFU: Thank you Mr. Speaker Sir. Firstly, I would like to applaud the Minister of Finance and Economic Development, Hon. Chinamasa. Secondly, a country that does not have its own currency is dead. Each country should have its own currency, if we do not have our own currency, we will suffer. If we use other people’s currencies like the US$, some people will export money out of the country and at times hide it in their pillows so that the Government is blamed for shortage of money.
Those people who are not supporting the introduction of bond notes are supporting whites because blacks are suffering. If a black man is suffering and bond notes are introduced into the country, they should not complain that there is something wrong with that. I think bond notes are better than foreign currencies. I am blind but I can feel that it is a currency because it has weight. I would like to thank Hon. Minister Chinamasa for bringing bond notes. I wish we could have our own money so that those people who were watching and thinking that
Zimbabwe was going to suffer, will be disgraced.
Mr. Speaker Sir, we were all elected, we are brothers and sisters, let us go out there and tell people that bond notes are very important. It is better because you will find an elderly person in the rural areas with $2 note going to buy something. Disabled people can also get something when they are begging. You find blind people carrying children begging. We ask pastors, priests and witch doctors and other fortune tellers to pray so that we have our own bond notes and use our own currency. Everyone is happy now. From here we are going to get paid. You can visit a bank and get 200 bond notes. Although it will be bulky, it is better than not getting anything at all because you can buy something for your children. You can buy fuel and every week we are now getting fuel coupons because of the introduction of bond notes. We can now do Parliament business because of bond notes. We would like to thank Hon. Minister Chinamasa for that.
As Parliamentarians, we should go and tell people in the rural areas how good bond notes are. We can have opposing opinions, but we must all know that we want to build our country. The problem was that there was no money in the country, but now we have our own currency of bond notes, it is better than before. With bond notes, you cannot take it out of the country but with the US$, people were exporting money out of the country. It is now better because we have a local currency which we can use here.
My child got married and they used bond notes because sons in law can now pay lobola using bond notes, there is no way you can refuse to take that money. The other thing Mr. Speaker Sir, is that small business people are happy because they are now receiving money since people are buying using bond notes. Women like me are the ones who suffered the most, but with bond notes we can go and buy relish but if you do not have money, your husband will go to a small house or a mistress who will be buying. I do not have much to say. We should know that we were elected by people, we are all adults, we did not come here to play and should behave like adults. Mr. Speaker Sir, I am not here to criticize anyone, but I was saying this in a polite way. Thank you very much Mr. Speaker.
+HON. MKANDLA: Thank you Mr. Speaker Sir. I would also like to add a few words on bond notes. I would like to thank Hon. Minister Chinamasa. He assisted the people of Zimbabwe by introducing the bond notes because people in Zimbabwe were suffering. Yes, people were starving but the shortage of money was also adding on to the problems. People were failing to raise even a dollar to buy food.
For us who come from rural areas, we really embrace the bond notes. The elderly in the rural areas can now sell their mushrooms and produce using bond notes as the medium of exchange without any difficulties. They can even afford to buy cigarettes. From where I come from, ladies have stopped assisting each other through interest free loans amongst themselves because of shortage of cash. However, now that there are bond notes, they are able to engage in monthly investments out of their monthly earnings, which they then use at the end of the year to pay school fees for their children.
In addition Mr. Speaker Sir, the introduction of bond notes in
Zimbabwe is a development on its own. If someone says that they do not want to use bond notes, that person is not from Zimbabwe, it is like someone outside this country. This is a currency that shows that we are a free country that uses its own funds. Thank you very much Hon. Chinamasa. If you start introducing the $5 notes, release them in little batches so that we will use them wisely in this country to buy food.
Thank you.
*HON. SITHOLE: Thank you Mr. Speaker for this opportunity to add my voice on this issue concerning bond notes. The people that I represent want to know why bond notes were introduced. It is because there was no money on the market and what was causing that is because the money that was being exported was more than the money that was coming in. People were going out to buy things than people coming here to buy food. This was because companies were closing down and we do not even have companies that are producing buttons or zips.
So, the reason that we do not have money in the country is because our industries are down. We should reform our industries so that people will come and import things from here. The Minister should have investigated and got views from people as to what they were thinking. If you look at the money that was used to print bond notes, advertising and the contracts that were awarded, we are looking at thousands of dollars, about $12 million.
All this money that was used, if we wanted to buy swipe machines, they are very cheap in China because they cost less than $200. We should have entered into plastic money and do business on line. We should have imported about 8 000, which means each and every province would get about 800 machines because we have about ten provinces. This would have helped even our vendors to get access to POS machines which would be subsidized by Government and we would have no problem of cash shortages.
As it is, many shops do not have swipe machines. Even our service stations are refusing people who want to use plastic money. They say that their machines are down. So, the Minister should have investigated and come up with better ideas. If the Minister and Government try to force things on people, it will cost the country. That is why in other countries like Gambia we have ECOWAS coming in. I think as Members of Parliament, we should unite so that we should also be members of the ECOWAS so that when this continues, they will come and help us. Thank you.
+HON. N. NDLOVU: Thank you Mr. Speaker for affording me
this opportunity to add my voice to the debate on bond notes. We can spend the whole day debating, but the obvious thing is that people did not want the bond notes, but you forcibly introduced it. People had no choice because we were already using it. I come from Matabeleland North. We have a very big problem because of bond notes. We survive by selling cattle. In that area, we sell cattle and it is difficult for us to raise school fees, because people are refusing to accept bond notes.
Mr. Speaker Sir, people are refusing to accept bond notes for their cattle because there was a time when people sold their cattle with bearer cheques. They got a lot of bearer cheques which were useless. They still think that is what is going to happen again. If you go to a filling station and you want to buy 60 litres of fuel, they will say you can use 20 litres on bond notes and 40 litres on US$. It is very difficult for people. So, what happens is that if you come here and if you want to go back with things, you know that people do not buy because they do not want bond notes.
People are skeptical about the issue of bond notes because if you make a mistake like now during the rainy season and put the bond notes in your pocket, if it gets wet, the colour will fade and no one would want to accept it. As it is now, Warriors were beaten because when they were playing, they were thinking that they will get bond notes which are useless and they can use it to buy nothing. Thank you.
HON. CHAKONA: Thank you Mr. Speaker. I would like to thank the Minister of Finance for being innovative and creating a medium of exchange and also creating a unity of account in the form of bond notes. Mr. Speaker, the day the Reserve Bank Governor announced the idea of launching the bond note, there was concerted efforts in this nation to sabotage the economy by withdrawing the US$ from most accounts by the economic saboteurs of this nation. I am aware of banks that have created parallel accounts of US$ that are now being banked in cash not into an account. They have created what they call vaults for each and every account holder in a way to dry out the US$ out of the market.
In place of that, I just want to read the definition of money from Wikipedia. It says money is an item of variable record that is generally accepted as payment for goods and services and repayment of debt in a particular country or socio-economic context. So, when a unit is introduced in a nation and it is being used as a medium of exchange in that country, it does not say cross country. Mr. Speaker, I hear Members of Parliament that are debating crying for money to go and pay outside the country. It is not the US$ that is used to go and buy items out of the country. It is money that is in an escrow account which is supposed to be used to settle international debts, not US$ as cash.
So, we look at nostro accounts which are supposed to be loaded with US$ that are used to import money into a particular country. In this case, we are crying for US$ cash to go and import items out of this country, which is not normal trading in any country internationally. Mr.
Speaker, there is something that we observed as soon as the bond note issue started to be discussed. We saw a lot of people that are queuing to withdraw money. People that are not employed and all of a sudden, they are loaded with money in their bank accounts and withdrawing cash on a daily basis. They are not productive and not employed. Where is their money coming from?
Mr. Speaker, there are people who are sabotaging this economy.
There are people who are depositing money into people’s accounts. We need to do something and verify and use the money laundering system to detect where people are getting that money that is getting into their bank accounts. In this case, Mr. Speaker, it is a method and a way of eradicating money launderers in this nation.
It is common knowledge that most people that are employed in Zimbabwe are earning not more than $1 000. All of a sudden accounts are loaded with thousands and thousands of dollars. Where is that money coming from? Mr. Speaker, I would like to reiterate that the introduction of bond notes is another way of eradicating money laundering in this nation. It is another way of protecting our export earnings in this nation.
Bond notes were introduced as an export incentive in this nation.
In that regard, I am one of the beneficiaries of that export incentive. The
Reserve Bank of Zimbabwe is paying 5% and Western Union is paying 3% of whatever you get as an export incentive. I see the introduction of bond notes as a way of trying to eradicate money laundering in this nation.
Mr. Speaker, I also want to add that I am a retailer. I also operate a retailing business. In the last month to date, almost 70% of the money we are handling is now bond notes. Of that 70%, only 30% is United States dollars. In terms of electronic transfers and point-of-sale payments, Mr. Speaker, if I look at my sales now, almost 80% of my sales are composed of point-of-sale and EcoCash or mobile payments. In that regard, what it actually means is that people have embraced electronic payments, they have embraced mobile payments.
So, instead of sitting here or spending time discussing the introduction of the bond notes, we should actually be thanking the Minister for introducing a medium of exchange that is used in our nation, a medium of exchange that is being used in place of the United States dollar and that is at par with the United States dollar. The Minister and the Reserve Bank Governor stood to say the bond note is going to be 1:1 with the Unites States dollar. As a retailer when I go to deposit my money, the US$2 and the $2 bond note are all classified as the same currency. In that regard, Mr. Speaker, the bond note has stood the test of time. It has actually maintained its value as the Reserve Bank has alluded to.
Mr. Speaker, internationally most countries are circulating very little cash in their monetary system. Most people are now using electronic payments. They are using mobile payments as a mode of transferring value from one person to the other or business to business using electronic payments. In 1859, a man by the name Charles Darwin said, “it is not the intelligent or the most powerful that survive, but it is the one that is most adaptable to the environment who survives”. In that regard, Mr. Speaker, Zimbabwe is not an island that survives in a different environment from everyone else. We need to adapt to technology. We need to adapt to the modern ways of doing business.
We cannot stick to old ways of carrying cash everywhere.
On Thursday last week, one of the buses that ply between Chiredzi and Harare was robbed of $700 by robbers at 3.00 a.m. Why? Because they were carrying cash. The moment we embrace the usage of electronic and mobile payments, we eradicate certain forms of crime in our nation. So, the bond note coming in smaller denominations is another way of eradicating crime in this nation.
Mr. Speaker, I want to thank the Minister for enabling business to operate normally and also bringing in the bond note as a medium of exchange in our nation. We should be proud as Zimbabweans to have our own currency. We should be proud as Zimbabweans to be owners of our own destiny in terms of our own economic transformation. We own the means of production; we own the means of medium of exchange. It is ours. We have to determine the quantum of money that gets into our monetary circulation.
So, Mr. Speaker, I want to thank you for giving me this opportunity to air my views and also contribute to this noble idea. I expect that we embrace the bond note and allow it to circulate freely in our nation. If anyone does not need bond notes, the United States dollars are there. Let us find out how much United States dollars they have generated.
Mr. Speaker, this other day I gave some people a lift and they were crying for money saying they were not getting United States dollars and
I asked them from the first to the last day of the month how much United State dollars did they generate. If I ask all these Members of Parliament in this House who are crying saying bond notes must be abolished and say how much United States dollars they have generated; just this month alone, how much United States dollars have they generated? You will find that they have generated nothing. Those who are doing nothing are the ones who make the most noise. Mr. Speaker, the exporters themselves are not even saying they do not want bond notes. They are very happy to receive the 5% incentive in bond notes. I thank you.
+HON. MLILO: Thank you Mr. Speaker Sir. My opinion is different from others because the United States dollars is a trading currency. It is not money that is meant to be used to buy tomatoes or round nuts. The introduction of bond notes in Bulawayo and in farms or areas around Bulawayo has changed many lives. In towns or big cities, if you go around, you will realise that there are no more queues at banks. Even the elderly, the pensioners, can now go and get their money. Civil servants can now go and get their money. Even if you go around in the locations, those people running shops in the locations, their shops are now functioning because before the introduction of bond notes, people were no longer able to buy because of shortage of cash, but now after the introduction of bond notes, people can go and buy salt, milk, bread and even cooking oil. They can go and buy from the small shops around in the locations.
The reason why I said my opinion is different is that those who do not have constituencies, you will hear them say they want to go to South Africa or Botswana to order goods from there, but now people can go and order from the farms. They can order their tomatoes, potatoes and other things. That is, our farmers are now productive.
The bond notes were meant for Zimbabweans by the
Zimbabweans. Why are we as Zimbabweans interested in other people’s money instead of our own? Those who do not want bond notes should go and live in America. But now the introduction of bond notes has stopped those long queues at banks and even businesses are now growing. Soya beans manufacturers can buy using bond notes. We have heard others saying garages are refusing to accept a bond note; that is not happening in Bulawayo, people are accepting the bond notes – OK and other shops are accepting it. They are accepting because they know that is our currency and we can only use it here.
I have never seen anyone in America going to board an emergency taxi with a US dollar. We should embrace the bond note because we can now afford to board kombis.
Those on my left, I mean my brothers like – Hon. Tshuma and Munengami, some of them are rearing pigs, now you can afford to go and buy stock feed because in the rural areas you will not find anyone with a swipe machine but you can do a lot with bond notes.
Hon. Minister, I would like to urge you to ensure that the network is always online for those who want to use plastic money. If you go to the bank now, you will find that there are more bond notes than US dollars. If people are given 500 bond notes and US$500, those people will use the bond notes locally and hide the US dollar or even export it. So, in Shona, I would like to say ngatishandisei ma bond notes. I thank you.
+HON. J TSHUMA: I would like to thank you for affording me
this opportunity to debate on this matter. I would also like to thank the Minister of Finance and Economic Development for introducing this very beautiful thing called bond notes. We had a better Christmas because we had money to buy meat, rice and even those who drink could afford to buy their beer.
Mr. Speaker Sir, a lot has already been said, so if I keep talking I will be repeating what has been said. The reason why I stood up is because I would like to give evidence as a witness. I come from Matabeleland South where people keep cattle. I sold my cattle using bond notes and I managed to pay school fees for my children using those bond notes. It is not true that people do not accept bond notes. If you go to a lot of places like beer halls, very few people were now going there but because of the introduction of the bond notes, sales have improved because of the use of the bond notes.
Hon. Chinamasa, you have managed to untie Zimbabwe where it had been tied to, there is now development. However, those people who are saying the bond note is not good for the country are liars. They want people to say that the ZANU PF Government has failed. However, the
Vice President of the Opposition party, Hon. Chamisa, whom I worked with together with my late father on a certain contract - we paid him in bond notes; it was very good because he received his notes. He alluded to me that the introduction of bond notes has made things easier for them. We paid his firm over US$7 000 in bond notes.
HON. CHAMISA: On a point of order! Parliament is a House
that is supposed to be a House of record of the truth. Hon. J. Tshuma is indicating things that are outside the dictates and condos’ of this
Parliament that is also very untrue. The matter he is referring to, as a matter of fact, was actually done almost a year ago and the bond note was not yet there. I was not representing him but the church and that is outside the context of this Parliament. So, if facts could actually be stated as facts so that we do not cast aspersions unnecessarily. I would not mind receiving money from him if I am to represent him but I have not received any money from him.
THE TEMPORARY SPEAKER: Order, order! Hon. Vice
President of the Opposition, there is no point of order.
+HON. J. TSHUMA: Thank you Hon. Speaker Sir. Bond note is
money that is acceptable; you can use it for whatever services. Today, I will be seated with him, talking amicably because I do not owe him anything because I paid him using bond notes. Hon. Chinamasa, I would like to thank you very much, especially Matabeleland because we managed to pay school fees using bond notes, we managed to trade using bond notes and that has made life easier.
In conclusion, on Sunday we went to bury a certain man who was working at a Sabbath school who was killed by robbers. They killed him thinking that there was money at the school but they did not find any cash. However, with the introduction of bond notes and swipe machines our schools are going to be safe from robbers – [Hon.
Tarusenga having stood up.] - sit down there I am still talking.
THE TEMPORARAY SPEAKER: Order, Hon. Member. You
do not just stand up and keep quiet. What is your point of order?
*HON. TARUSENGA: Thank you Mr. Speaker. My point of
order is that the Hon Member has talked about selling cattle, so I want to understand whether he is referring to the chickens that they are getting in Matobo because he does not have a ranch. I thank you.
*THE TEMPORARY SPEAKER: Hon. Member, do you not
know the difference between cattle and chickens? Hon. Tshuma, you may proceed. There is no point of order there.
+HON. J. TSHUMA: Thank you Mr. Speaker Sir. Lastly, I would like to ask other Hon. Members, those who know that bond notes are useful, let us applaud and clap hands for our Minister. I thank you.
HON. MAJOME: Thank you Mr. Speaker Sir and I take this opportunity to wish you my complements of the season as well as to the Minister of Finance and Economic Development who I am hoping will consider my very humble and considered views on this Amendment Bill that seeks to create something that seems to be money but is not quite money.
Mr. Speaker Sir, I want to raise four concerns around this introduction of the bond note by legislation in Zimbabwe. I am firstly deeply concerned by the aura of opaqueness, mystery and lack of transparency and indeed lack of truth around fundamental issues that surround the manner in which the bond note is being introduced.
I will firstly relate to one of them which has been raised in this House. We were informed by the Hon. Minister that in introducing this bond note, that he is doing so with the support of a facility. Well really, he called it a ‘facility’, because I remember I asked the Hon. Minister a question as to whether or not the loan that he said would support these bond notes was processed in terms of the Constitution. In particular Section 300(3) of the Constitution requires that, any loan entered into by the Government must be published in the Government Gazette for 60 days within 60 days. The Hon. Minister very cleverly of course avoided that responsibility by indicating that, that particular $200 million that is said to support the bond notes was not infact a loan but a facility but I am hoping that the Hon. Minister tells this nation the whole truth and nothing but the truth surrounding this whether there is a difference between a facility and a loan?
In the event that there is a difference between a loan facility and a loan itself, I want to request that the Hon. Minister tells Zimbabweans that in the event that it was a facility, it would therefore mean that a facility has a parent and that parent is a loan. It means that there must be some parent loan agreement somewhere which then gave rise to this thing that he is calling a facility which he says is not a loan but indeed is a loan.
Mr. Speaker Sir, I want to believe that this august House has a right to know and Zimbabweans at large have a right to know therefore whether indeed that parent loan that is said to give rise to this facility was indeed processed in terms of the Constitution. Firstly whether indeed and I hope the Hon. Minister will tell us when he replies to the debate, when it is exactly that that parent loan that gave rise to this $200 million facility was published in the Government Gazette together with its terms. If it did not, I think, he should care to tell this august House and the nation at large exactly what the terms of that parent loan that gave rise to this $200 million facility came about?
It is also my request that the Hon. Minister will proceed to tell the august House how that loan is performing? I say so because I do not recall, since this Constitution was passed, the Hon. Minister coming to this august House to tell this august House at least twice a year in terms of Section 300 (4), to tell the august House how the loans particularly this loan that gave rise to the $200 million facility is performing? It is my humble request, through you Mr. Speaker Sir that the Hon. Minister does indeed because it looks like it is clear that this Bill is going to pass whether or not anybody likes it and that the Hon. Minister will remember to fulfill his obligations in terms of Section 300 (4) to report.
It says, at least twice a year. We are in January right now, so before
December 2017, we must have had a report from him to this august House about the performance of that loan.
On the same vein, I would also want the Hon. Minister to also care to advise the august House, because I am very curious as to that score, as to when the parent loan that gave rise to what he calls ‘the facility’, when it is that this Parliament approved it in terms of Section 327 (3).
As you know Mr. Speaker Sir, that provision provides that, “No loan agreement shall be binding on Zimbabwe unless this august House approves it”. Whilst the Minister says the $200 million Afrexim Bank facility is not a loan but a facility, therefore he must then tell this august House the details of the parent loan that gave birth to this facility as to when it is that it was approved by this House? Also whether or not it was referred in terms of the Standing Rules of this House to a relevant committee for it to consider the terms?
Mr. Speaker Sir that is my first concern that, I hope that the Hon. Minister will come clean and remove the aura of suspicion, mistrust that surrounds this facility because there is a belief that this facility does not infact exist. Or if it does, the loan that gave rise to it was not possibly concluded in a constitutional manner.
Then Mr. Speaker Sir, I wish to raise concern around the way that we are legislating in this House and in this country. As we sit here, these bond notes are in circulation and we are using them whether we like it or not and I want to say that the people from the constituency that I represent in Harare West are extremely unhappy with these bond notes for various reasons that I will not go into. The fact of the matter is that these bond notes were imposed by the Presidential Powers.
Mr. Speaker Sir, I want to believe that history will judge us very harshly in this Eighth Parliament for becoming; I cannot find a better term, a rubber stamp. This debate that we are concluding here is fait accompli – [HON. MEMBERS: Hear, hear.] – It is true, whatever we say, I am hoping that the Hon. Minister will take note of this and also Hon. Members will take this. As the sun goes down on the Eighth Parliament, I worry that this Eighth Parliament might go down into the annals of Zimbabwean history as the most scandalous, possibly rubber stamp because these bond notes are circulating and they were foisted onto us in terms of the Presidential Powers regulations whose constitutionality is now in great doubt because the Constitution elevated and amplified the power of this Parliament as the supreme legislative body.
It is not a secret that this Bill only then came to this august House only when it was a ‘quick fix’, after the courts pronounced that there must first be legislation in order to bring the bond notes. My question which I hope the Hon. Minister will address is that, why must we wait for a judicial pronouncement to do the right thing? When the idea of introducing the bond notes was mooted, the Hon. Minister should have known that legislation is required to be passed first. To first moot it, conclude and even give dates because we were actually told that these bond notes were coming on a particular date but there was no legislation passed by this august House. It took the Judiciary to tell the Legislature what to do. I want to believe that does not auger well with just the dignity of this House and also even of the Executive. Then also to bring Presidential Powers Regulations, then only now to bring a Bill to this august House when this is already murky water under the bridge. Mr. Speaker Sir, I hope we can take corrective action and take this House seriously.
Another point that I am concerned with is around the issues of honesty, and what is what exactly. I am hoping that the Hon. Minister can tell us indeed as we pass this Bill because it is going to be passed whether we like it or not. We have been told that these bond notes are being introduced because we have a cash shortage.
The question is, is it a cash shortage that we have or is it a money shortage that we have? The truth must be told here Mr. Speaker Sir because, I believe that if we pass the legislation purporting it to be for a reason when it is not so, we are not solving any problem. I ask this because, if it is a cash shortage, it must be a shortage confined to the borders of our beloved and beautiful country. If it is a cash shortage indeed, why is it that if I travel across the Zambezi to Zambia and I use my Visa Card, I bank with a local bank, my bank gives me a limit of $50 - why is it that if it is a cash shortage, when I go to Zambia, I can only withdraw the same $50? I have a limit kept on my account and in
Zambia there is no cash shortage at all.
So, what I am saying is that, I worry that we might be; I do not want to say we are having legislations pulled over our eyes. But, it appears that we are treating something that is not the disease. There is more than meets the eye here. I am hoping that the Hon. Minister can really apply the solution that there is because if it is a cash shortage, we would not be restricted to only that. So, my worry is that we are passing this Amendment Bill purportedly to solve a cash shortage when really the problem is something much deeper. It is not a cash shortage and may be, can we just call a spade a spade.
Mr. Speaker Sir. I also want to hope that the Hon. Minister does all that he can if he has powers to solve the real problem and actually get to the bottom of the problem as was said. I support what Hon. Sithole said, to say what are the root causes of this problem? It will not help us to bring this green and purple pseudo money notes if we do not address the fundamental problem. The question is, is this patch sustainable? Yes, we are going to pass the Bill whether we like it or not but, is this going to be a sustainable solution to the problems that are bedeviling our country? The real problem surrounding productivity, around confidence in the economy, and around corruption where even only the very well placed are able to ship money out of the country of $1.3 million at once and $500 million.
Mr. Speaker Sir, I believe that this august House must do justice to the people of Zimbabwe out there. Let us deal with these matters of money and our national finances with honesty and let us tell Zimbabweans exactly what it is. Let us not hopefully pass this Bill purporting to solve cash shortages when in fact, may be the problem is not really cash shortages. Let us not - [AN HON. MEMBER: Wadzokorora.] - I am winding up. It is permitted to wind up and I am doing so in winding up.
I therefore Mr. Speaker Sir, end by a plea to the Hon. Minister and the Executive that they must be sensitive to the plight of Zimbabweans and listen to them and really respond to their protests. If they are not happy about something, let us not force things on them but let us get to the root cause of the problem. If we cannot solve the fundamental problems of the economy, let us say so and let those who can solve them solve them. I thank you Mr. Speaker Sir.
HON. MLISWA: Thank you very much Mr. Speaker Sir. Let me first of all thank the Minister of Finance and Economic Development and the Reserve Bank Governor for coming up with the initiative. Of course, they are the ones that had to come up with the initiative and no one else. We are in this situation because of them and they came up with the response.
I think that the issue is really not the bond notes but it is about the financial discipline that the Government must have. The issue is about sustainability. For how long can we go on with the bond notes and I think what is critical is for the people of this country to understand and to know …
*HON. MUNENGAMI: On a point of order Hon. Speaker. The Hon. Member is taking Hon. Mliswa photographs because both of them were once Chairmen.
THE TEMPORARY SPEAKER: There is no point of order Hon.
Member.
HON. MLISWA: Mr. Speaker Sir, I think what is important for the nation of Zimbabwe to know is really the way forward in terms of the legality of this. I think Hon. Majome was very clear that the Minister must do whatever is necessary to ensure that the Zimbabweans understand the legal implications of this. We are where we are right now and people have doubt because there is not much in terms of communication coming to them. The Minister of Finance and Economic Development working with the Reserve Bank Governor must at least be able to give us an update on the progress in terms of how much money is being banked and how much is being withdrawn so that we are able to see that there are results which are going on.
Mr. Speaker Sir, I will talk about the role of the Government in funding Parliament. Section 325 (1b) of the Constitution – I am hoping that now that the Minister has bond notes to use, Parliament can properly be funded as well. There should be no excuse why we cannot get adequate funds as Parliament. It is equally important that the CDF that the Minister spoke about, I do not mind having it in bond notes Mr. Minister. I think what is critical is for us to be able to meet the obligation as Members of Parliament and what we did promise the people at the end of the day.
Mr. Speaker Sir, I equally want to add that I think the aspect of corruption is equally important. The reason why there is a shortage of foreign currency or US dollars in this country is a result of the corrupt tendencies – the money that has been siphoned out of this country. I always and I will always remind the Minister that for as long as we do not have a system to deal with and we do not act hard on people who are corrupt in this country, certainly, we are not going anywhere. I am glad that the Hon. Vice President who is the Acting President is sitting in the House. It is equally important that the Executive is seen to be working in terms of dealing with those who are corrupt at the end of the day. We cannot have a situation where the Executive folds its arms when there are Ministers who are stealing money while us as Members of Parliament in our oversight role have brought a lot of issues to the fore. As such, we expect the Executive to walk the talk on corruption because it is them that were saying corruption has led us into this situation. For as long as we do not arrest it, these very same bond notes will not mean anything because those who have a tendency to rear their heads on corruption will equally do that. This is a challenge which the Minister of Finance and Economic Development will always have in terms of
discipline.
Equally Mr. Speaker Sir, I do not think that if we were dealing with bond notes, we would have leaders in this country being extravagant in terms of expenditure. If people are buying rings for over a million dollars, if they were bond notes, would they buy the rings for a million dollars – no they would not. I do welcome bond notes and to also stop those leaders who are extravagant in terms of using taxpayers money to be able to expend on luxury items like rings which absolutely mean nothing to the welfare of the people of this country. We have hospitals, schools and many things. I personally am a Member of Parliament in Norton and there is not even a decent mortuary at Norton Hospital so that people can be put there but we hear that the First Lady is spending and I will not hide this. It is in the public domain and it is equally important for us to say that we cannot have the First Lady spending over a million dollars on buying a ring when the masses of this country are suffering. We must prioritise expenditure and the bond notes will create that discipline in ensuring that whatever money is disbursed to the Executive is money which is used for things which are important.
THE TEMPORARY SPEAKER: Order Hon. Member. We do
not mention names of people who cannot defend themselves when we are in the Parliament.
HON. MLISWA: I think Mr. Speaker Sir, it was in the public domain .....
THE TEMPORARY SPEAKER: Yes, but may you withdraw
that.
HON. MLISWA: I said the First Lady, I did not mention a name.
THE TEMPORARY SPEAKER: Yes, the First Lady is only
one, there are not many.
HON. MLISWA: My wife is the First Lady in my home.
THE TEMPORARY SPEAKER: Hon. Member, she is not here
to defend herself.
HON. MLISWA: Mr. Speaker, I did not name the First Lady and I did not put a name to it. Your wife is the First Lady in your house unless she is not. My mother is the First Lady in my house.
THE TEMPORARY SPEAKER: Order, order. Hon. Mliswa,
there is only one First Lady in this country, so may you withdraw that.
HON. MLISWA: Are we now going towards the mug that this is the boss again. I am also the boss in my house and I do not know where you are going.
THE TEMPORARY SPEAKER: Hon. Mliswa, may you
withdraw that please so that you continue with your debate. Just withdraw that and continue with your debate.
HON. MLISWA: I think, Mr. Speaker Sir, I need to be told which section or Order does restrain me from talking about the First Lady, then I will be guided. We are a House of rules and it is equally important for me to be told which rule you are exercising in order for me to withdraw. I have the right to know and I think it is important that I know the rule. I represent people and in representing people, I must state facts. So for me Mr. Speaker Sir ...
THE TEMPORARY SPEAKER: Hon. Mliswa, I have made a
ruling, you may not mention somebody who is not in the House.
HON. MLISWA: Mr. Speaker Sir, I am not at all arguing with what you are saying. What I am saying is that you must equally point out the section which does not allow me to do that, then I will be guided by that because we are a House of rules.
THE VICE PRESIDENT AND MINISTER OF NATIONAL HEALING, PEACE AND RECONCILIATION (HON. MPHOKO):
On a point of order Mr. Speaker.
THE TEMPORARY SPEAKER: May you take your seat, there
is a point of order.
THE VICE PRESIDENT AND MINISTER OF NATIONAL
HEALING, PEACE AND RECONCILLIATION (HON.
MPHOKO): Thank you Mr. Speaker Sir. I think the Hon. Member is using speculative information. What is in the public domain cannot necessarily be the truth. I think it is important that what you are saying, it will be important for you to withdraw because what is in the public domain cannot be regarded as the truth.
THE TEMPORARY SPEAKER: Order, order please. Hon.
Mliswa, if you recall in this Parliament, the Hon. Speaker, Hon. Jacob Mudenda made a ruling on the same issues of that nature but in any case, this is before the courts, so we should not talk about it in this august House. You may proceed but avoid that.
HON. MLISWA: Mr. Speaker Sir, I am pleased that you are exercising your powers because even the President has no right to stop me from debating in this Parliament. We are controlled by you.
THE TEMPORARY SPEAKER: Hon. Mliswa, may you
proceed with your debate.
HON. MLISWA: Thank you very much. I want to reiterate that there has to be financial discipline in terms of the expenditure of the Executive. The Executive shall, at least be guided by the fact that we do not have enough US dollars for them to be going on luxurious trips and using the money on non-productive issues. The Minister of Finance, I think might equally extend the bond notes as an allowance to the Ministers as they also travel outside the country. I think that would certainly make sense in that the bond notes are quite important. There is no point in having a currency which you cannot use outside the country. So I want us to ensure that the bond note is maximised in a manner that will ensure that revenue grows in the country.
Like I said before, there should be an update from the Reserve Bank Governor in terms of the confidence that the people have in the bond notes. I want to also reiterate that it is important that the Minister of Finance deals with all the issues which relate to Government debt. If Government is owing any Government institutions, I think it will also be important for them to use the bond notes to be able to offset some of these. I do not know what problems the Minister could have in terms of using the bond notes to offset some of the debts that they have.
There are a lot of Members of Parliament who are still owed money, myself included. Like I earlier on indicated, I have no problem in receiving bond notes. The issue is, when will the Minister be able to avail those bond notes to Parliament so that the money owed to parliamentarians is paid back.
The issue of producer price is equally important as we seem to be having quite a good agricultural season. It is important that in conjunction with the Ministry of Agriculture, the producer price for maize and for any commodity is announced early and quite clearly. The peasant farmers who seem to suffer the most when they are selling their products, be it at the tobacco floors or at the GMB are forced to be there for at least a week to two weeks having their money. It is important that the Minister of Finance makes an announcement to say that they will certainly be getting their money on time instead of being there for a long time.
It benefits usually the rural community because of the mere fact that they do not tend to go outside the country as much as we do. So it is a relief – [HON. MEMBERS: Inaudible interjections.] -
THE TEMPORARY SPEAKER: Order, order Hon. Members
on my left, you are not in a beer hall. This is an august House. You may proceed Hon. Member.
HON. MLISWA: My point was that it certainly assists the rural community because they are the most honest, most hard working and they do not travel as much as the Executive does. In so doing, if they can get their money on time when they are selling their produce at the time, it would assist a lot. I know that the Minister of Agriculture is listening to this and I think they prefer having bond notes, like I have said. Those who prefer bond notes must get them because earlier on, it was mentioned by Hon. Vice President Mnangagwa that the US dollar is not for the little things like matohwe nezvakadaro. The US dollar must go towards commodities that are equally important.
What is critical Mr. Speaker Sir, is for production to increase in this country. While we have the bond notes in circulation, how are we in terms of production? Are we producing our own food, are we producing our own tomatoes and are we able to manufacture our own cars so that there is not much pressure on foreign currency? For as long as we do not produce, there will always be problems in terms of foreign currency because we need foreign currency to be able to import whatever we need for this country, which is unfortunate. In importing, you are certainly using a lot of foreign currency in that regard.
The Minister of Agriculture, I am sure, even the bumper harvest that we are likely to have will certainly assist in terms of us reserving that foreign currency for the key issues. I say so Mr. Speaker Sir, because the aspect of the SI 64 was key in that it has seen not much foreign currency going outside the country but that has got to match with the production as I have stated. It now puts pressure on industry in
terms of manufacturing as well. It is important that the industry which was not manufacturing starts to manufacture and produce what it has to produce because it does not put pressure on the little foreign currency that we have. I would also like to urge the Minister of Finance and Economic Development to ensure that there is less expenditure in terms of the Executive. I think if the Executive is able to spend less, it will assist. That only comes about if we have more bond notes being printed.
May I, on a lighter note say that the bond notes have also been helpful, especially for me who belongs to an extended family. Each time people would come and ask for money from me, I would end up producing US$10 or US$100, but now I am able to produce that $2. So, you actually share with more people than less people. That is something that has also happened. In terms of change, I would like to support the Hon. Member of Parliament who said that we were becoming an unhealthy nation. Instead of getting our change, we were now getting sweets and so forth. At least now, we have those coins that we can use.
I think it has been well received.
I would like to sincerely give my appreciation to the Minister of Finance and Economic Development who has been honest and the Reserve Bank Governor in discharge of their duties. I wish that most
Ministers on that side would be able to work as hard. I think the Hon.
Vice President Mnangagwa who is the Acting President is hearing what I am saying. I would like to commend one of your good Ministers for the good work that he is doing. I hope you can also promote him to another level. Thank you.
The Temporary Speaker having named Hon. Gonese to contribute to the debate on bond notes.
*HON. CHINOTIMBA: On a point of order. We are repeating the same people who have contributed on this motion, unless if you are saying that what happened last year is no longer considered because Hon. Gonese debated. We did not pass this Bill because of Hon. Gonese. How can he want to debate again? Everyone who spoke on this motion should sit down. We want to pass this Bill – [HON.
MEMBERS: Inaudible interjections] –
*THE TEMPORARY SPEAKER: Order, Hon. Members. Hon.
Chinotimba, if you have raised your point of order, you can sit down.
*HON. CHINOTIMBA: Not only Hon. Gonese, even on our side because we want to pass this Bill. All those who debated on the motion on bond notes should not contribute.
THE TEMPORARY SPEAKER: I will be guided by the records that are here before I make any ruling - [HON. MEMBERS: Inaudible interjections] –
Order Hon. Members, do not be excited. We will get the records.
Hon. Gonese, I am sure, be honest with yourself.
HON. GONESE: I did not contribute. I was not even here.
THE TEMPORARY SPEAKER: Order, may we continue Hon. Mandipaka?
*HON. MANDIPAKA: Thank you Mr. Speaker. I do not want to take a lot of time for this House. As a representative of Buhera West and also a member of the ruling party, I am overjoyed. This shows that the party that I am in is the right one because if you see a party being given credit by an independent, it means that it is the only party which knows what it is doing. It is the party which has Ministers who have been given all the support.
So, Hon. Chinamasa, we want you to go ahead with the good work. If you are talked good about by people in opposition, like Hon. Mliswa, it is good for us. I would also like to thank the Government of President R. G. Mugabe, which works very hard and brings out laws which are good for the people. They came up with bond notes so that people will have a medium of exchange and the lives of people would move ahead. Even if we look at the other people from the opposition, we have read from the public domain that Hon. Chimanikire was keeping pigs in town. It is because of bond notes.
Bond notes have really helped us. They have alleviated our lives.
We just pray that it would continue to work like that. People from Buhera West, especially the elderly to the young are happy to use bond notes. As a representative of Buhera West, I want to thank the Government and the Minister of Finance and Economic Development.
You should go ahead. Thank you.
*HON. MUKWENA: Thank you Mr. Speaker. I rise to support and thank the Minister of Finance and Economic Development for coming up with such a noble idea. If you look at the history of our country from independence in 1980 up to 2000, things were moving well. The state of affairs was good but because of sabotage, our economy went down. We thank the Hon. Minister of Finance and Economic Development for coming up with measures to ramp up the economy which has been ravaged by sanctions.
I am surprised that those who are educated; who are degreed the world over; it is not Zimbabwe which has started the issue of bond notes. In 1948, America suffered great depression and it came out of that depression through the use of bond notes. The world over, there is not even a single country that did not experience the use of bond notes. I believe that bond notes have been helpful. I would want the Minister to consider the fact that this issue has been accepted but Hon. Minister Chinamasa, we want the quantities of the bond notes that are in circulation to be increased so that there would be no queues at the banks.
He sat down with his advisors who included economists, intellectuals, experts or technocrats in that field and gave him their considered views. As a result, the Minister came up with the idea of bond notes. We accept bond notes and Hon. Minister, I urge you to reconsider Parliament’s budget because we want a meaningful portion of that budget. I thank you Mr. Speaker Sir.
HON. GONESE: Thank you very much Mr. Speaker Sir. I have noticed that this debate has generated a lot of interest among Hon. Members. That indicates to me that this is a very important issue that we are talking about. My concern arises from several factors.
First and foremost, I would like to talk about the issue of process. We are now dealing with the Reserve Bank Amendment Bill at a time when in fact, we had the Presidential Powers Temporary Measures Act being used. We had the relevant Committee going out on public hearings at a time when the bond notes had already been introduced. In a manner of speaking, it is like we are almost closing the stable door when the horse has already bolted.
However, I would like to go to the merits and substance of the matter. The concern which most Zimbabweans have is whether we are not just treating the symptoms. What we must look at is, what is the fundamental cause of the problems that are bedeviling our nation. I think if we answer that question, then we can then look at what is the appropriate remedy. If we do not deal with the root cause, what will simply happen is that we will come up with short-term solutions.
My worry is that we could be sitting on a time bomb. It is almost like someone who is sitting on a sewage pipe. It is alright as long as the pipe does not burst but when the pipe bursts, that is when you have a problem. That is almost what we are dealing with or what is confronting us as a nation. We have got a scenario where the bond notes have been introduced …
HON. MUKUPE: On a point of order Mr. Speaker, the analogy that the Hon. Member is using he is trying to say that Zimbabwe is sewage. I think he has to withdraw that statement because what you are saying is all of us tirikugara mu sewage. Tiri kunhuwa. If the pipe bursts, the sewage is going to come out. I do not know what he is trying to say. So, please, Mr. Speaker, I think he needs to withdraw that statement.
THE TEMPORARY SPEAKER: Order Hon. Member. There is
nothing amiss on what he is trying to say. You may proceed Hon.
Gonese.
HON. GONESE: Thank you very much for your protection Mr.
Speaker. All that I am trying to illustrate is that sometimes, you come up with temporary solutions but at the end of the day, the question is, is that solution sustainable? We have gone through this route before where you come up with a lot of euphemisms. I remember during the time of the former Reserve Bank Governor Gono; we had a situation where there was rampant inflation in the country. Instead of introducing higher denomination notes, he came up with this innovation but we are not actually introducing higher denomination notes but we are introducing bearer cheques. In other words, he was trying to give the impression that bearer cheques were not money and were not coming up with higher denomination notes. At the end of the day, the difference is the same.
It is a distinction without a difference.
We then had what was called five billion, five trillion or ten quadrillion bearer cheques. At the end of the day, those were like higher denomination notes. By the same token, what you are now saying to mislead Zimbabweans is that no; we are not introducing the
Zimbabwean dollar. The time is not ripe for that course of action. Instead, what we are doing is to introduce what we call a bond note. If you take out a bond note, it is written on it; Reserve Bank of Zimbabwe two dollars.
At the end of the day, for me, there is no real difference if you use this and say this is not currency. This is a bond note. It is almost the same as if you had introduced a note and say that this is a Zimbabwean dollar. I know that as time goes on, they are going to say Zimbabweans are clamouring for higher denomination notes and they are going to introduce higher denomination bond notes and that is how they are going to introduce the five dollar bond notes. Before you know it, we will have the ten or twenty dollar bond notes until we get to the one hundred dollar bond notes. We will then try to maintain the fiction that they are at par with the US$. That fiction will only operate for a time.
I remember last year when the bond notes were introduced. If you went to the banks, initially the ATMs were not dispensing the bond notes. What you would do is that you would get the US$ outside and that would be normally a maximum of US$50. When you get into the banking hall, you would then get another fifty dollars in bond notes. Later on, they then calibrated the machines so that they could now dispense the bond notes. We had a scenario where at some banks, if you try to withdraw one hundred dollars, you would get fifty dollars in US$ and fifty dollars in bond notes. Before you know it, some of the banks, when you went to the ATM, they were only dispensing only the bond notes. If you go into the banking hall, you will find that a lot of the banks are only giving out bond notes.
For me, it is just a time bomb. It is just a matter of time. Within a short period or sooner rather than later, you are going to run out of US$. The fundamental issue is that what we need is to have the currency which retailers can use when they want to import goods. We want to have a currency which people who want to have some transactions out of the country can use that currency.
With your bond notes, the challenge is that it is clear; they cannot be used outside Zimbabwe. If you are going to have more and more of those notes, it is just a matter of time. This is my worry. In short, we are just introducing the Zimbabwean currency. That is the point that I am making. If we are going to talk about other currencies …
HON. J. TSHUMA: On a point of order, we seem to be having people repeating things that have been said over and over. What he is saying has been said already and we are trying to have progress. The Hon. Member is simply repeating.
THE TEMPORARY SPEAKER: Order, order please. I do
concur with the speaker who has just raised a point of order. Hon.
Gonese you are repeating what other people have said already. Let us bring in new ideas and then we proceed on that.
HON. GONESE: I am not aware whether some other person said it but for your information Mr. Speaker, when this debate started, I was not even in the country that week. So I am not aware of what transpired.
Be that as it may, I still believe that I have got a right to emphasise the point I want to emphasise. The point is this; we are maintaining a fiction that we are not bringing back the Zimbabwean dollar through the back door. If we are going to illustrate a point by saying that in Zambia they use Kwachas which cannot be used outside Zambia, that is a point but they are honest about it. All I am saying is that, let us be honest about it. South Africa is using their Rand and they say that they have got their own currency. Malawians use their Kwacha and they are honest about it. They say we have got our Malawian Kwacha. The same with the Mozambicans, they are honest about it. They say they are using their Meticals.
What is happening here is that we are being dishonest. We are trying to maintain the fiction that look, we have demonitised the Zimbabwean dollar. We are saying that the Zimbabwean dollar is not legal tender as we speak but in reality we are bringing it back. For me, we are not resolving the fundamental problems which we have as a country. That fundamental problem is that we are not having enough in terms of production. We are not having enough in terms of exports and that is a challenge that we must confront. That is the solution that we must deal with.
One of the other problems is because we have got a Government which spends more than it actually generates. I know that my colleagues on the right – some of them have got this belief that money grows on trees or that it just falls from heaven like manna. That is not the case. When we are dealing with the issue of money with the issue of currency, it is about trust. When you look at that piece of paper, like the US$, it is because people have got confidence in it. Otherwise, at the end of the day, money is almost like the same. It is just a piece of paper but the issue which you have got to deal with is that of trust.
This is the reason why we have got serious reservations about this Bill because we are afraid that at the end of the day, we are not going to be resolving our problems because we are simply dealing with the symptoms rather than dealing with the root cause, rather than dealing with the fundamental cause of our problems which is Government profligacy. Lets us deal with that, first let us ensure that we spend what we have produced. If we do that, I am sure we will be able to find a lasting solution to the problems which are confronting our nation. Therefore, Mr. Speaker, I want to place it on record that we are not in support of this Bill. We believe the people of Zimbabwe, the majority - and the other fiction which you have Mr. Speaker is that people have embraced the bond notes. People simply do not have a choice. If you go to the bank and you are told that the only thing they have is the bond note, what do you do? You cannot have access to the currency that you have got confidence in. So, it is not as if people are accepting it willingly but people are simply doing it because they have no other option.
Initially, we were told that those and I remember the Governor actually used those words that, no we are not going to force people to use the bond notes. Those who do not want to use it are not going to be compelled to do so. Then another time you are then told that look, and I think it is the Minister of Finance who said it. That if someone has got a debt and that person discharges their obligation by using the bond notes, then the creditor is obliged to accept that as a discharge of the debtor’s obligation. Is that not compulsion? If that is not compulsion, then I think I need to go back to school to learn and understand what the word compulsion means. For me, that is very clear if you are saying that people are obliged to accept a discharge of an obligation of using bond notes and you go on to say that this is not for buying matohwe or mazhanje, then you are simply saying that people have no option but to use the bank notes.
In conclusion Mr. Speaker Sir, we are going to be vindicated in the fullness of time. Just mark my words. As we go down this road, you will see that they will bring more and more of these bond notes and you will start having inflation. You will start having a situation where these notes are now being exchanged at a premium. I rest my case Mr. Speaker Sir.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): I thank you Mr. Speaker
Sir. I want to take this opportunity to thank all those who have contributed to this debate. We have in total spent three hours. This suggests that we consider this subject matter very important. So, I will equally give it the importance that the matter deserves in my response to the various concerns which were raised.
I need to also observe that the debate which transpired before the adjournment has now shifted and it is no longer opposition. At that time, people were querying the quality of the paper, the alignment of the security features and now I do not see it any more. So, in my response, if I had responded before this debate and I will do so anywhere. I had also put together some rand notes and bond notes just to show that there is practically no difference. - [HON. MEMBERS: Hear, hear.] –
Mr. Speaker Sir, let me make some general remarks before I come to specific responses to the contributions made by Hon. Members. The general principles underlying the issuance and introduction of bond notes was to achieve two purposes. The first was to achieve and promote production. The Hon. Members here were saying, let us address the root causes of our problems. The root cause is that there is no production and so we need to address ourselves to that issue of production. This is why the 2017 National Budget is addressing and giving various fiscal incentives to those who produce. Mr. Speaker Sir, those who produce and are exporting are on cloud 99 over the issuance of bond notes because they see a recognition by the Government, of those who sweat to earn the foreign currency.
The foreign currency that we are defending here - the US$, we do not make or generate it. It is only generated by that class of producers who export. If they do not export, we do not have US$ or foreign currency for that matter. So, the main purpose or primary purpose was to push production and that in fact Mr. Speaker Sir, has already been achieved – the contributions by Hon. Mahoka about tobacco farmers. The contributions which were made I think by Hon. Mudarikwa about gold miners is good testimony that we have put our finger on where it matters. That is to support those who produce for export.
The second purpose for which bond notes were introduced was to stop evaporation of the US$ from our market. As I think, another contribution has already pointed out people who were coming here to sell trinkets, cheap things just to get hold of our US$ and to an extent they succeeded. They succeeded because the temporary problem that we have at the moment is shortage of foreign currency. It was all wiped out and the nostro accounts became empty. We are only beginning now to build and accumulate foreign currency through the exports that we generate. We hope to do so more quickly when the tobacco auction
floors start.
Another principle I want to highlight Mr. Speaker Sir, is that the bond notes as the Governor pointed out, are interchangeable, that is 1:1 with the US$. This means that each one of us just has to maintain one account and you deposit into that account bond notes and US$. When you go to withdraw, the banks will give you what is available. It could either be bond notes or US$. I am happy to say that since the introduction of bond notes, the scheme has exceeded our expectations in terms of the way it has been implemented and that it has become acceptable to the generality of our people. Bond notes were not introduced to stop cash shortage but they were introduced to stop capital flight - the US$ flight from our market and they are already beginning to achieve that.
I also need to point out Mr. Speaker Sir, that bond notes will be printed up to 200 million dollar as per facility that we concluded with Afrexim Bank. They will be introduced into the market and they will be drip-fed into the market, which is why Mr. Speaker Sir, according to our observations, there is not much parallel market to talk about. Clearly, who is stupid enough to dispose of more bond notes when in fact they are 1:1 with the US$. In any case, they note the quantities available to do that kind of business.
So, Mr. Speaker Sir, I want to say to the Hon. House, that I am thankful for the support that this House has given us, the Governor and I, the Government, and the Executive with respect to the introduction of the bond notes. I am very grateful to the public for accepting the bond notes. The problem at the moment Mr. Speaker Sir, is the shortage of foreign currency which is why we have some teething problems in respect to the supply of foreign currency for purposes of importing raw materials and essential commodities. However, we think that we can go over that problem once everything is stitched up.
Mr. Speaker Sir, I also want to point out that with the introduction of bond notes, we have moved away from an over-liberalised foreign exchange market to one which will be managed and sets out priorities over the usage of the foreign currency. That is already being implemented and I am very pleased with the results. I am also pleased with what is happening, we are now beginning to see redeposit of bond notes, which suggest that, it is now accepted as a medium of exchange and circulating. A medium of exchange must circulate, if it is not circulating, we have no economy. The problem we had with the US$ was that people commoditised, they took it as if they were cows, putting them into a kraal, in their pockets. As a result, it was not circulating and it created the shortage that a lot of Members are complaining about. The US$ was being kept and withheld from the market and was not circulating and obviously, that created a shortage in the medium of exchange which the bond notes has now cured and we are in the process of completing that exercise.
Hon. Members who spoke honestly said that the queues are no longer existent – [HON. MEMBERS: Inaudible interjections.] – certainly, if they are there, it is in Harare. Just go out of Harare and you will not see any meaningful queues – [HON. MEMBERS: Inaudible
interjections.] –
THE TEMPORARY SPEAKER: Order please.
HON. CHINAMASA: Mr. Speaker Sir, let me also say that we are succeeding in changing the mindset of our people by introducing them to the usage of plastic money. A lot of shortages that we are talking about have largely been addressed by the usage of plastic money and this is worldwide. Read about what is happening in India right now, they stopped the use of cash and encouraged the use of plastic money.
Obviously, there will always be room for cash, for petty transactions.
However, any big transactions should be through Real Time Gross Settlement (RTGS) transfers and also through usage of plastic money. I am encouraged and excited by the way plastic money usage has taken route, including at Siyaso, those selling vegetables by the roadside, payment of bereavement funds and lobola. That has been introduced – [HON. MEMBERS: Hear, hear.] – that is a tremendous mind shift in the praxes of our people and we need to thank and encourage them for that.
Mr. Speaker Sir, let me now turn to the specific contributions. I thank Hon. Chapfika, the Chairperson of the Portfolio Committee on Finance and Economic Development. I thank him and his Portfolio Committee for supporting the initiative and addressing and raising concerns. He mentioned fears; we understand clearly that, because of what happened in the past, there are fears and lack of confidence in any introduction of bond notes or future introduction of any currency that we may introduce for our country.
I understand these fears but we must never leave and get entrenched in the problems of the past. We have to move on. I also understand that the value of money is in the confidence we put in it and it is also about discipline. For example, how much money we print, which is why the Governor of the Central Bank came out very clearly that the introduction of bond notes will be ‘drip-fed into the economy,’ to use his own words. This is basically to allay the fears of those who keep harping on the past. So, I want to assure the Portfolio Committee Chairperson, Hon. Chapfika that, every initiative will be taken to make sure that we are disciplined in the issuance of bond notes. We will do and bend over backwards to ensure that the process is transparent and do not go beyond what we have told the public. It is more important for us than it is for the public.
We have a reputation to defend, the Central Bank Governor and myself and we will not do any foolish things that will not even win us the votes. It is very important and 2018 elections are around the corner, we cannot afford to do foolish things which we are being accused of. We are not foolish people; we will do the correct thing which will maintain the value of the bond notes.
Mr. Speaker Sir, the quality of the bond notes was made reference to in the Report of the Portfolio Committee. In particular, the point I want to make at this juncture has to do with the security feature, which was said to be improperly aligned on the bond note. I brought to the House Hon. Speaker Sir, a R100 note. It is not an issue as the R100 demonstrates or the R50 also demonstrates. The issue was that the security line is not properly aligned, that sometimes it is found between bond and note and sometimes it is found stretching through bond only and not in-between and so on. That is not an issue; the issue is whether there is that security line. I want to assure Hon. Members that there is no basis whatsoever in challenging the quality of the bond note.
Mr. Speaker Sir, I also took note Hon. Chapfika, that we need to publish progress on the issuance of bond notes. As I speak, I think there are 79 million bond notes which are in circulation. This has largely been to pay the incentives to tobacco farmers and also to the gold miners and other exporters but largely, that group of exporters have harvested in a big way which is why it is all smiles. The smiles of tobacco farmers and gold miners should also be our smiles as the economy because it is showing that they are going to produce more and it is showing that they are very productive. We should celebrate with them. I am sure that we could also celebrate with the gold miners.
Mr. Speaker Sir, I took note of the Report of the Portfolio Committee that we should publish on quarterly basis the value of bond notes and also exports. I think this is already being done by the Reserve Bank. I will certainly bring this to the attention of the Reserve Bank. The facility is a guarantee not a loan. Hon. Dr. Mashakada, I am sure you no longer say the same thing about the queues. At the time they may have been an issue but they are no longer an issue. You mentioned about the aggregate demand. The point Hon. Dr. Mashakada, is that the root cause of our economic decline is low production and we are going to do everything in our power to make sure that production is pumped up.
This year, this season and God willing, agriculture should perform better than I anticipated in my budget speech. But, all things being equal, the rains continuing as they have been and also looking at the standing crop, it gives me courage and confidence that agriculture should exceed its targets as of now. What will happen in February, you know what assumptions are, and some of those assumptions may fall by the way side. I do not believe that from March onwards, after we are clear about the season on maize, we will need to import maize into the country.-
[AN HON. MEMBER: Inaudible interjection.] -
It is very good to look at the negative side. Pane chirikunyura, pane chakamira zvakanaka, and you should understand that. Pane chakatsvuka chisina fertilizer, pane chakasvipirira. Imimi muri kungoona chakatsvuka chete and that this by hectarage, comparably, it is not much by way of hectarage. Mr. Speaker Sir, I want to say that the bond note and this is in response to Hon. Dr. Mashakada, is anchored on the facility from Afreximbank. I want to say this and this is a point which Hon. Ziyambi made. The value of a currency does not need to be anchored on anything like a facility. It is important and it is anchored in the confidence of the people.
When they accept, that is enough legitimacy and the fact that they have already accepted, I am on cloud 9. Hon. Ziyambi made a very important point. He produced the dirtiest $1 note which you only find in Zimbabwe. This bond note Hon. Ziyambi reminded us has no value outside Zimbabwe. It has no one accepting it except Zimbabweans. You are only giving confidence to a valueless paper. You use it, but they will not accept it in Zambia or anywhere except in Zimbabwe.
Mr. Speaker Sir, I thank Hon. Ziyambi for highlighting that the introduction of bond notes was to stem the leakages of foreign currency.
He supported the gradual introduction of bond notes and the introduction of bond notes. Hon. Nduna was very clear and specific. He supports bond notes and he comes from Chegutu. His constituency has gold miners and they are smiling all the way to Fidelity Printers as we speak. He mentioned that we need to enforce the usage of plastic money. That issue will be addressed by the Central Bank in a manner that is market friendly. We do not want to arrest anybody unless we have to. So, please bear with us. What is important is market acceptance and we are already getting that market acceptance.
Hon. Chinotimba, thank you very much for supporting the use of bond notes. Hon. Gabbuza, I agree with you. Bond notes will not solve our problems. What will solve our problems is more and more production and if you look at the 2017 Budget, you will see a multiplicity of incentives to look after those who produce for exports. So we are addressing the real problem – [AN HON. MEMBER: Gabbuza
haapo.]- It is for the record by the way.
Hon. Chamisa, I got the impression that you were supporting because you were saying the debate just now is an afterthought, there is nothing we can do now to stop these introductions. I thought Hon. Tshuma went to suggest that you had already embraced bond notes, which we appreciate very much. Hon. Speaker, if we had a way of searching all of us here, we will find bond notes in our pockets. – [AN HON. MEMBER: Handina bond note.] - Hauna mari, wagara usina marika. Munhu wese anemari iye zvino, tikasecha, vane bond note in their pocket and yet they were debating kuti hatiride but I take point.
Hon. Chamisa, you again said, let us address the underlying causes and the underlying cause is raw production which we are making every effort to address. You also said we should promote the use of point of sale machines which already has happened. The use of point of sale machines has lipped by a high percentage and we commend the public for that. Hon. Maondera, you were worried about the quality of the bond notes. I think I have already explained. Hon. Ndebele, I think he was more insulting than contributing. There was nothing that he said about bond notes but about dictatorship and things like that. I do not think he deserves that I answer him.
Hon. Mudzuri, today the bond notes are interchangeable with the US$. That is what is happening and I want to emphasise this point. Bond notes constitute legal tender like the US$ and all the currencies in the multi- currency basket. What this means from a legal stand point, is that if I owe you money and I tender payment in bond notes, if you do not accept the law recognises that I have discharged your debt. So, there is no choice about whether to accept bond notes or not. It is legal tender in Zimbabwe. I can discharge your debt using bond notes and if you refuse you cannot take me to court that I have not paid for your debt.
Hon. Musundire, you made a very false statement, sorry to say. You said that there were 500 million bond notes. Please, let us not mislead the public. If we put 500 million bond notes into the market, you will feel it. There will be high inflation - [AN. HON. MEMBER: He did not say so.]- He did. I wrote it here. He said so. It is not good to make unfounded statements which have no basis, in fact it undermines confidence of the people in the economy, in the people who administer the economy. We should not make unfounded statements.
Hon. Mahoka, thank you very much for the support. The issue of price differentials will be addressed. Hon. Mapiki, thank you very much for the support and we take note of the statement you made about not arresting gold miners. I share that sentiment and we will see what we can do to stop that.
Hon. Muchenje, I took note that in fact what you were saying is that rural people cannot use plastic money, but already they are using EcoCash and they are also basically using bond notes. Hon. Mudarikwa, thank you very much for wearing a smaller jacket to make your very important contribution. In fact, what surprised me was the ruling that a leather jacket is not acceptable because a leather jacket is more expensive and should demand more respect from that point of view, but thank you very much Hon. Mudarikwa for that support.
Hon. Toffa, thank you very much although the statement you make about people failing to pay schools – most, rather all schools now have bank accounts. So, you can pay through RTGS. A lot of them have got swipe machines. Now, if you have cash you can go and pay cash. If
you do not have cash and it is in the bank, you swipe or you make RTGS transfers.
HON. TOFFA: On a point of order, Mr. Speaker Sir. The
Minister did not understand my contribution. The point I was making is that the women in Bulawayo live on selling outside the country and the point I was raising is that without the foreign currency, they will be unable because they cannot use the bond notes outside the country. They have been unable to raise funds to go back and buy so that they can raise school fees for their children. That was the point I made.
THE TEMPORARY SPEAKER: Maybe it was a question of
language. He did not understand. You spoke in Ndebele. So you have now clarified.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELEPMENT (HON. CHINAMASA): I thank the Hon. Member
for the correction. Let me thank Hon. Mutomba, Hon. Mpofu, Hon. Molly Mkandla and Hon. Sithole for supporting the issuance of bond notes. Hon. Ndlovu, I think I have already addressed the issue about school fees. Hon. Chakona, thank you very much for an eloquent lecture to us on economics.
HON. MUNENGAMI: On a point of order, Mr. Speaker Sir. I think maybe the Minister did not get what Hon. Mutomba said. He raised a fundamental point on the difference in prices of the bond notes, the swiping machine and the United States dollar, but surprisingly I am just hearing the Minister saying I want to thank Hon. Mutomba for supporting the bond notes. I think he also needs to clarify…
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): He supported.
HON. MUNENGAMI: Can I just finish. I think the Minister
needs to clarify on that point because I think that is the major problem which we are – [HON. MEMBERS: Inaudible interjections.]-
THE TEMPORARY SPEAKER: Order, order!
HON. MUNENGAMI: I think that is the major problem which
we are facing in the supermarkets - the differences in prices. If he can clarify on that. Thank you.
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): He supported the
introduction of bond notes clearly and then he raised his concerns which
I was going to address and then you stand up to introduce… HON. MUNENGAMI: Ehe chiyendayi mberi.
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): The issue here Mr.
Speaker Sir, I had already answered it. The price differentials are a matter that we will certainly look into, but you cannot protect foolish people. If you accept to be short-changed by accepting less United States dollars and you give away more bond notes which are interchangeable 1:1 which you can take to the bank and they give you
1:1, you are foolish and maybe you do not deserve our support.
*HON. MUNENGAMI: On a point of order Mr. Speaker Sir -
[HON. MEMBERS: Inaudible interjections.]. This is serious – [AN HON. MEMBER: Haisi question time iwe Munengami.]- The point which I want to make to the Minister is that it is not about us as Members of Parliament. Let us be real and let us talk on these real issues. We have got people who are outside there. These people are being taken advantage of and for them to think in the way the Minister is explaining to us that if I see a radio priced at US$150 and 200 bond notes, I am supposed to go to the RBZ. I think we all know what is taking place on the ground.
What is important is for the Minister maybe to put a legislation to address the problem because that is very important. We may laugh in here, but the statement that the Minister just said will not stop what is happening right now. Please Mr. Speaker, protect us so that the Minister responds to the issue. His comment that people are foolish does not justify what is happening on the ground – [HON. MEMBERS:
Inaudible interjections.]-
THE TEMPORARY SPEAKER: Order at the back. At the
back, may we please hear the Hon. Minister in silence. I think Hon. Minister, what is being raised here is quite pertinent that you really have to put your foot and get people to know that it is not fair for someone to part with his United States dollars.
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I take note of your
concerns and will look into the matter.
I thank Hon. Mliswa. The point I want to highlight from Hon.
Chakona’s contribution, I thank you for your lecture to us on the economy.
HON. MUNENGAMI: Can he withdraw the statement that those people who are out there are foolish people – [HON. MEMBERS:
Inaudible interjections.]- Please, that is important. If he can withdraw that by saying that maybe he did not understand because for him to say that they are foolish people, honestly I do not think that it is fair.
THE TEMPORARY SPEAKER: Order, order. Hon. Member,
it is a way of expressing. I think Minister vacover ikoko already. He has covered that.
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir. Thank
you very much. Hon. Chakona, thank you for emphasising that bond notes are a medium of exchange and not a way of taking money out of the country. It is actually to stop people who want to take our valuable foreign currency out of the country that is one of the purposes of bond notes.
I also want to emphasise the point he made that bond notes have already stood the test of time and also that it is helping to eradicate certain crimes which were prevalent when you are using US dollars.
Hon. Mlilo, thank you for supporting the issuance of the bond notes and I took note of the concerns that you raised. Hon. J. Tshuma, thank you very much also for highlighting the issues that in fact are now taking place in Matabeleland South especially increasing and promoting greater economic activity in the country. Hon. Majome, thank you for the concerns you raised and I want to say that everything that we are going to do will be in accordance with the law. So, you need not to worry about what the law says, we will comply with the law.
Hon. Mliswa, thank you for emphasising that discipline is at the core but we will not use bond notes in order to meet expenditure – that is not the purpose of bond notes. The purpose of bond notes is to act as incentives for those who are producing. Hon. Mandipaka, thank you again for supporting the bond notes. Hon. Mukwena, thank you for also supporting the bond notes . Hon. Gonese, again I think the point you are making is that we must address the fundamental cause. I have already said that the fundamental root cause of our economic problems is low production and that we are addressing. Introduction of bond notes is not to address the fundamental cause. I thank you Mr. Speaker Sir. I now move that the Bill be now read for the second time.
HON. DR. MASHAKADA: On a point of order. I just want the
Minister to respond to one of the issues I raised precisely that the bond note was introduced as an export incentive. The legislation does not reflect that spirit behind the introduction of the bond notes as it appears. The legislation just treats the bond note like any other currency not going back to the primary reason of it being an export incentive. So, no reference whatsoever is done to that issue in the legislation and he did not quite answer me on that issue.
THE HON. MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, what the
Hon. Member is raising is not necessary and it is not in the legislation.
We do a lot of incentives that we give; we do not put it in the legislation. Incentives are a complete set of issues. In this particular issue, we said from April or May, we are going to give incentives to tobacco farmers and at that time it was merely an intention but we had not yet introduced them. By the time we introduced the bond notes, they had accumulated almost all exporters to something like US$75 million. Right now, like I pointed out what has been issued is about US$79 million in circulation as a mere export incentive. We are only giving to exports, so the point I answered, not because you raised it but someone else did, I think it was the Portfolio Committee.
Let us have figures of exports and bond notes so that we can compare whether it is 5%; in some cases it is not 5%, it is two and half percent. We do not need it in the Bill. What is important is that this is a medium of exchange, once it is given 5% in the bank account it is given as 5%. You ask the tobacco farmers and the gold miners, they got in their bank accounts 5% of their sales. Do you understand? They know they received the incentive and those bond notes are then issued into the market. – [AN HON. MEMBER: Inaudible interjections.] –
Mr. Speaker Sir, I now move that the Reserve Bank Amendment Bill [H.B. 12, 2016] be now read a second time.
Motion put and agreed to Bill read a second time.
Committee Stage: Wednesday, 25th January, 2017.
On the motion of THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA), the House
adjourned at Four Minutes past Six o’clock p.m.
PARLIAMENT OF ZIMBABWE
Tuesday, 31st January, 2017
The Senate met at Half-past Two O’clock pm
PRAYERS
(THE HON. PRESIDENT OF THE SENATE in the Chair)
ANNOUNCEMENTS BY THE HON. PRESIDENT OF THE
SENATE
BILLS RECEIVED FROM THE NATIONAL ASSEMBLY
THE HON. PRESIDENT OF THE SENATE: I have to inform
the House that I have received the following Bills from the National
Assembly:-
- Reserve Bank of Zimbabwe Amendment Bill [H.B.12, 2016].
- Land Commission Bill [H.B.2, 2016].
INVESTIGATIONS ON THE ALLEGED THREATENING
MESSAGES TO MDC-T MEMBERS
THE HON. PRESIDENT OF THE SENATE: I also have to
inform the House that the Privileges Committee appointed to investigate the alleged threatening messages sent to some Members of the MDC-T party is currently conducting its enquiry. Hon. Senators with evidence of the messages are requested to avail such evidence to the Assistant Clerk, Mr. Gandiwa in order to facilitate the conduct of the enquiry by the 6th of February, 2017.
INVITATION TO A CATHOLIC CHURCH SERVICE
THE HON. PRESIDENT OF THE SENATE: I wish to inform
the House that there will be a Catholic Service, tomorrow, Wednesday, 1st February, 2017 at 1200 hours in the Senate Chamber. All Members who are Catholics and non Catholics are invited.
HON. SEN. MUMVURI: On a point of Order Madam President.
I think the Order Paper which is infront of me has incorrect dates. It was designed for the 17th January, 2017 and today is the 31st January, 2017. For Thursday, the date written there is 19th January, 2017. Both these dates are way behind.
THE HON. PRESIDENT OF THE SENATE: Thank you, the
Clerks-at-the-Table will take note of that. Thank you very much for pointing it out.
MOTION
BUSINESS OF THE HOUSE
HON. SEN. MOHADI: I move that Order of the Day, Number 1
be stood over until the rest of the Orders of the Day have been disposed of.
HON. SEN. TAWENGWA: I second.
Motion put and agreed to.
MOTION
MEASURES TO CURB VIOLENCE PERPETRATED BY POLITICAL
PARTIES
HON. SEN. B. SIBANDA: Thank you Madam President. I move the motion standing in my name that;
NOTING that violence has become an integral part of our socio- political way of life;
CONCERNED that we cannot build a progressive developmental nation within a violent environment;
CONCERNED about the violence oriented and negative legacy we are developing as a nation;
NOW THEREFORE calls upon this House:
- to denounce all forms of violence being perpetrated upon and among the people of
Zimbabwe;
- to call upon the law enforcement arms of Government to enforce law and order without fear or favour;
- to admonish political parties so that they desist from the use of violence in order to impose their will on the people of
Zimbabwe;
- to challenge the Executive to fulfill its constitutional obligation by respecting human rights in terms of Sections
48-78 of the Constitution of Zimbabwe.
HON. SEN. NCUBE: I second.
HON. SEN. B. SIBANDA: Madam President, I thank you for this opportunity. I kick off my motion by stating that Zimbabwe, as a geographical entity is endowed with exceptional fauna and flora, a vast range of minerals and is distinguished as a God-given blessing. It is also endowed with great human potential. However, the social and economic performance of the nation is a pale shadow of these endowments. One of the reasons for this state of affairs is our various social and political forms of violence that we inflict upon each other within the body politic and the social strata. These tend to have a negative impact on our development thrust.
Within the context of this motion Madam President, I perceive violence as the application of force to achieve specific socially and politically negative objectives. Such violence can manifest itself in physical, emotional or psychological form. The Zimbabwe society has lived over various forms of violence for a period of over a century or even more. Interestingly, the perpetrators of violence often pontificate at every opportunity about the peacefulness of the nation while the victims experience trauma, cringe under violence of one form or another. This is the dichotomy that we experience in this land. We are a land of two societies; the violators and the violated.
What are the constitutional provisions that should guide us? Sections 48 through to 78, Part Two of Chapter Four of the Constitution of Zimbabwe detail in clear and specific terms fundamental human rights and freedoms that the Zimbabwean population is entitled to. In that list, violence upon them, that is, the people of Zimbabwe, is not listed as one of those fundamental rights. The implication therefore is that any violence against the people of Zimbabwe is a clear breach of the Constitution.
I will then look at the state of denial. I have listened with all and terrific amazement as the President, various legislators have tripped upon each other to tell a terrified nation that the country enjoys unparalled peace. One wonders whose standards they are using. A national standard should be set against national values. Unless we do not have any values, then our perceptions are misplaced. One assumes that the apologists are so ashamed of the violence in our midst that they are in a denial mode. Each time I talk to people about them enforcing simple rights like entitlement to food rations, they tell me about fear to confront the system.
Madam President, let me be the first to admit that our value systems within the body politic are varied and diverse. For certain people, when one person dies, they see peace. For those of us who fear God and dread the loss of human life, particularly Zimbabwean life, are not only saddened but are also horrified.
Madam President, let me deal with two types of violence that I want to address. The first type of violence that I want to deal with is gender related violence. My research indicates that 68% of Zimbabwean women have suffered one form or another of gender related violence. I think women are a precious gift from God and I ask the question - how come men abuse such a precious gift?
Secondly Madam President, religious personalities sexually assault female congregants at will in the name of religion and I find this unacceptable. Young boys are sodomised by all and sundry on a daily basis as our social values evaporate into thin air. Older women, some as old as I am now sexually assault young boys, a thing previously unknown to the custodians of our values. Those custodians are women.
Where women lose the values of the society, those values disappear. Lastly, I observe that fully grown up men are now in the habit of raping minors, including three months old babies. All these are forms of violence. This can only be a case on our society and this is the level of decadence we have allowed this God-given nation to sink to. The big question that I ask is - why and how? The great philosophers, I believe were predictably correct in stating that “when the gods want to destroy you, they make you mad first.” What we see here is rank madness.
As a nation, I believe we have got to intervene and do something about this state of affairs. Government attempts have been made but have not produced the desired results. Madam President, it is my belief that the support structures do exist to exorcise this nation of the violence demon that has gripped our society. The answer to this kind of violence lies in our traditional systems, specifically within the ambit of Chiefs and other traditional structures. I believe however that this antidote must be comprehensive and holistic in its approach – empower the Chiefs, allow them to do their work and some of our problems may be resolved. However, it is also note-worthy that there is generally some co-relation between the state of national deviance and the socio-political environment that develops therefore.
Madam President, I have said so much about social violence, particularly gender related violence. I now move to the second aspect of violence, which is politically engineered violence. There are claims at various quarters, including in this House that Zimbabwe enjoys unparalled peace within the region. These claims are derived, in my opinion, from a narrow definition of peace as the absence of war against a comprehensive perception that encompasses a sense of human wellbeing. When our people spend nights on empty stomachs and cannot choose their political leaders freely, I consider this to be violence against their constitutional and fundamental rights.
I would like to show that there is evidence of political violence in this country. The violence that I now submit to this House shows that
Zimbabwe as a nation is replete with numerous incidences of violence.
In fact, one could write a PhD thesis on political violence in the country.
The first confirmation of our appetite for violence was gukurahundi, where in my opinion a sledge hammer was used to repair a swiss watch. When the President eventually confessed that, that was a moment of madness, we assumed that, that would mark the end of violence on the sons and daughters of Zimbabwe. In fact, the late icon
Cephas Msipa dismisses the moment of madness clearly in his book “In
Pursuit of Freedom and Justice”. He says it never was and actually claims that it was a planned activity. But alas! This end that we anticipated did not come. What is the implication of this non-stop? It suggests to me that people may have continued to live in a madness mode and then you ask the question – should they be leading us if they are in that mode?
Madam President, I am an advocate of land redistribution, however, I also abhor and despise the violence that accompanied that programme. Often times we are reminded that settlers used the same tactics when they took our land. Madam President, I have serious reservations about such mentality that equates African behaviour at the beginning of the 21st century to European behaviour at the close of the 19th century. It says in general, if we follow that way of thinking, it means we are living over a century behind in thinking patterns of white people, which I definitely disagree with. It is my submission that we did not have to lose a single sole in order to recover our land. The loss of lives underlines our appetite for human blood and our incremental and insatiable appetite for power retention.
I also know that between the years 2000 and now, over 400 Zimbabweans have lost their lives simply because they have different political views from ZANU PF. This has happened under our very noses and …
THE HON. PRESIDENT OF THE SENATE: Order Hon.
Senator, can you actually document that and quote the source because in this House we want to deal with proven facts.
HON. SEN. S. NCUBE: Madam President, I observe your comment but I also want to say I have done some research but I am not sure I will be successful in quoting. Do you want me to withdraw that Madam President?
THE HON. PRESIDENT OF THE SENATE: Could you please
or you can rephrase it in some other way unless you can prove the 400 figure from a legal source. I am not trying to stifle anything but as you know, I am here to guide debate.
HON. SEN. S. NCUBE: Madam President, I take note of your comment and I hope that my comment is also heard. This has happened under our very noses in various august Senate sessions. We have been complicit in my opinion while Zimbabweans die just for the sake of power. To substantiate my claim, I quote one Senator who on January,
4, 2017 stated “Bikita west is not a constituency for funny politics. There are some who disappeared in 2008 because of politics and we all know that, so let us go and vote properly.” The implication is, lest you disappear. I think this is bare callousness, if people were killed in 2008 and we remind people that we can kill them again, my observation is; what has gone wrong? Once again I ask - do the popular win elections by threatening the electorate? I will also quote a learned Judge Justice
Mathonsi who on 23rd January also said “apparently we have become a nation of violent people, which is of concern to the judiciary. We therefore need a deliberate programme to research on the scourge of violent conduct defining our society and come up with a lasting solution to the problem.” He said this when opening the 2017 Legal Year for the Gweru High Court session.
My research on violence took me through a long list of those killed since the year 2000. Half way through, I abandoned the list as I was overwhelmed by emotion and I could not continue. Madam President, we cannot be so callous to our own, no we cannot. In my opinion, this is a shame. The sad story is that these that have been killed are our brothers, fathers, sisters and mothers. In my opinion, it is because they hold different but progressive political opinions. I ask the questions; is this peace or violence, is this the Zimbabwe we want and is this the freedom we fought for, for 28 years? Some of us consider any death of a Zimbabwean to be heinous. Several times I have heard Hon. Members address all Zimbabweans begging them to put their heads together in order to address the national challenges. It reminds me of a violent man who boasts of degrees in violence in wife bashing but still hopes for goodies at night. I do not think we should be doing this to ourselves. I actually believe that we should exorcise ourselves of degrees in violence and we should turn those degrees into gigantic hurricanes of solving created economic challenges and corruption facing the nation.
As early as 1986, seasoned politicians like Joshua Nkomo had seen through the ruling elite’s propensity for violence and hate. He said, “we are enveloped in politics of hate. The amount of hate being preached in this country is frightful. What Zimbabwe fought for was peace, progress, love, respect, justice and equality.” We must remember that hate breeds violence as aptly summed up by one Ndabe Ncube, a villager in Matshetshe communal lands, as I was doing my research. He said, “we have created a nation characterised by a vicious cycle of violence and revenge, where each generation may seek to avenge the cruelty perpetrated upon their predecessors. Let us stop this tribalism and political nonsense if we want to build a nation based on peace and prosperity.
I submit that these words are from a local person we could call povo and I think he sees things better than some of us in leadership positions do. Madam President the question I ask is, are we proud to leave a legacy of violence? I believe it is never too late to reverse our patterns, the good Lord and the people may forgive us. What I have said Madam President sounds like a sermon, maybe it is, the reason being that it comes from my heart.
In conclusion, these submissions Madam President, compel the august House to denounce all forms of violence, be it social or political being perpetrated against the citizens of this country and to intervene whenever such violations do occur. Further, that this House plays its oversight role to ensure that the Executive respects all constitutional obligations by respecting human rights and in this instance take measures to ensure the obliteration of violence from the face of Zimbabwe by allowing law enforcement arms of Government to operate without fear or favour.
I am reminded Madam President of what happened to us in 2008, when homes were burnt down in Gwanda. Unfortunately, when we reported to the police we were told that during currents of the run-off, there can be no arrest. However, when some youths misbehaved and retaliated on known criminals, they were immediately arrested. I am sure they spent over 60 days in detention, God stood by their side and they were not convicted.
Lastly, I request that this House must monitor incidents of violence and publicly denounce all forms of violence and admonish any political parties that engaged in violence in order to impose their will on the people of Zimbabwe. If we do not do this, history will record us as Legislators that failed the mandate that the people of Zimbabwe gave them. I thank you.
+HON. SEN. NCUBE: Thank you Madam President for the
power that is given to this House. I am requesting to read my speech, some of the words I have written in English, I cannot translate them into Ndebele; hence I am making the request.
THE HON. MADAM PRESIDENT: You can read.
HON. SEN. NCUBE: Thank you Madam President for giving me
this time to also add my voice on the motion that was tabled in this House by Hon. Senator B. Sibanda on the issue of violence. There are different forms of violence and abuse. When I went through the motion that was tabled by Hon. Sibanda, I thought it was good for me to check everything that concerns violence. I saw physical, sexual, emotional, physiological, spiritual, verbal violence and financial abuse. When somebody wants to control another person, they often use violence.
Madam President, Hon. B. Sibanda is talking of gender based violence and political violence. Our Zimbabwe Constitution is very clear on Chapter 4, on political rights where it says ‘Every Zimbabwean has the right to free and fair regular elections, for an elective public office established in terms of this Constitution or any other law; to make political choices freely. On Section 59, every person has the right to demonstrate…
HON. SEN. NTABENI: On a point of order. I think I need to be educated on the rules. Do we read or we debate off the cuff?
THE HON. DEPUTY PRESIDENT: In this case the Hon.
Senator had requested to read.
HON. SEN. NCUBE: Thank you Mr. President. On Section 59,
every person has the right to demonstrate and present petitions but these rights must be exercised peacefully’. That is not happening Mr.
President. We have no freedom of expression as the Constitution says. What is the meaning of violence? When I was at school, the teacher used to ask, what is a noun? I thought I should say this in this House, my dictionary told me that violence is a noun; it says behavior involving physical force intended to hurt, damage or kill someone or something.
‘violence erupted in protest marches’ synonymous brutality, brute, force, roughness, ferocity, fierceness , savagery, cruelty, sadism, barbarity, barbarisms, ruthlessness, inhumanity, heartlessness, pitilessness, mercilessness and more. It also says strengthen of emotion of a destructive natural force, the violence of your own feelings.
Violence is defined by the World Health Organisation as the intention, use of physical force of power, threatened or actually against oneself, another person or against a group of community which either results in or has a high likelihood or resulting in injury or death, physiological harm, maul development. There are many definitions, Mr.
President; I can go on and on.
Today, I will dwell on political violence because I have already debated on the issue of gender violence. Madam President, we have experienced a lot of violence in this country. The issue of Gukurahundi where people were maimed and killed, attacked, assaulted, raped, tortured and some seriously injured. For example, our leader Mr. President, Morgan Tsvangirai was assaulted by police in 2007 and the world was shocked to see his pictures.
Many people have suffered in this country and a lot of our members have been killed while others disappeared. The other example is Mr. Nhavanhava and Cain Nkala I talk of these ones because they were in my constituency. Dzamara and some other MPs have been beaten but most of the people who have made these beatings and killing as well as raping are walking scot free Mr. President. I thank you.
HON. SEN. MAKORE: Thank you very much Hon. President of
giving me an opportunity. Just to share a few ideas as related to the motion that was brought by Hon. Sen. Sibanda and seconded By Hon.
Sen. Ncube. Mr. President, the kind of a motion is very important, if you are in this particular House bound to generously develop a need to start a new page which we are going to be a nation that is respected nationally and internationally. We are also old enough to understand what peace is.
The meaning peace is understood by anybody else peace and tranquility.
I want to quote from a man who was mentioned here that is Vice President Nkomo. During his time he emphasised the need to have peace and tranquility. We also understand as elders what gender based violence is. This particular motion came at a very right time, the way I look at it. There are two forms violence that have been spelt here; one is political the other is more or less a domestic one which means to say both of them are violence in terms of conceptions.
The first one is political and the Constitution we have is the best Constituency so far because it spells how people should behave politically. The state institutions are required to behave in accordance with Constitution both of them are apolitical as is articulated in this Constitution. The traditional leaders in terms of Section 280 of this particular Constitution, they are all apolitical. The role of each individual does not allow anybody to exercise violence in terms of this Constitution. In view of these articulated facts Hon. President, we are bound to be sober even at any time that we are involved in political campaigns and so on. You do not have to step on the rights of certain other individuals and the rights are so much important. I know we are subject of disagreement, we all must know that we emanated from a disagreement colonially but, even before that there were some form of violence. Yes, this particular political violence had a tendency in us for which we wanted to be independent. We were all at one time violent because we wanted a political independence in terms of this particular country.
Unfortunately, we are bound to share that particular nature gradually it must shed off from us because we are bound to respect the human animal. We are bound to provide also the independence and respect deservable as a people. I am calling on all institutions that are apolitical to observe this particular Constitution. I am also calling the elderly and law makers to abide by this particular Constitution. – [HON.
SEN. Hear, hear.]- I know power is sweet but do not get it through those means. Anybody else has also a right to live as in accordance to this particular Constitution. As a point fundamentally, that is articulated in our Constitution.
I also want to believe that as a people we all need joy and independence. We all need space Hon. President and we must shed fear completely because fear is also a cancer for a person to make decision. When we want to live harmoniously in this country, we are bound to respect each other. I want to thank you very much Hon. Sibanda because there could be gross misconceptions over references here but all in all what we want and attempting to do, is to shape the country and become violencelessness so that we emerge as a people. We respect all leadership but we are praying that at least let us be sober as a country and start from somewhere and move as a country. There are a lot of events that have been referred to, there are a lot of loses at any cost as a result of this particular violence. We may name almost everything but the intention is not bring such a distinct spell but the intention is to ring a bell that be normal and let us move as country, let us lead with examples, lets us abhor violence and move as a country. Let us abhor all these complains people have because we are leaders who are bound to be respected. The way you want somebody to do the best for you is the way one also wants for you to do the best for her/him. – [HON. SEN.
Hear, hear.]- you do unto others what you want also to do unto yourself. It is very unfortunate that we would want to respect this particular motion and take it through the way it really advocates for the justice and peace that is expected. I want to thank you very much and I believe that you were listening from the very small contribution that I am making. I want to say that do not look down upon it be serious and get this reflection correctly. Thank you very much. –[HON. SEN: Hear, hear.]-
*HON. SEN CHIMHINI: I would like to thank Hon. Sen.
Sibanda for raising this motion which has been seconded by Hon. Sen. Ncube, when we discuss about the forth coming elections in 2018. We hear the ordinary men and women asking what will happen when the previous shortcomings in the other elections were not been corrected. If we are talking about electoral reforms people will have observed that certain malpractices need correcting. If those malpractices were not corrected, people then ask how safe is their votes and themselves after voting and that are they not going to revisit the same scenario that they had earlier on witnessed. It is heart rendering to observe that our parents are now fearful of going to cast their votes. In other countries you find that people go and cast their vote freely and fairly. The hate language that we use towards election time intimidates the majority of the people who would be apprehensive about going to vote in their election. I urge everyone in this august House to go out there into our constituencies and tell them that an election is a free contest where one has a right to elect the leadership that they prefer and that there should be no violence.
I know that all of us, whenever we start our deliberations in Parliament, we have a prayer. We belong to different denominations; so, what becomes of us as Christians when we are moving towards an election? Men belong to certain men’s guilds and they put on uniforms and women do the same thing, they also have their uniforms but immediately after church service, they go and batter their own kith and kin they utter abusive words. Thereafter, they go and wear their church uniforms and praise God. Are we doing the right thing? Do we have to kill because you want to perpetuate the rule of Mr. Chimhini? If you behave in such a manner; are you mentally sound because you want to perpetuate the rule of a particular individual. As Senators, we should lead by example and exude or show that we know what we are talking about.
What pains us most is that when we speak in this august House, we do it just to please ourselves but when we go out there; we forget that we are fathers and mothers. We also forget that once I kill someone, the spirit of the avenging person affects or torments members of my household. We forget that the children that we send out to perpetuate this violence because they are poor or because they want beer and marijuana, they kill people because of that influence. I urge all of us to go out there and ensure that they be a difference; that a general election does not mean that people should kill each other.
To the chiefs that are in this august House, if you say that you do not want violence and that you abhor violence, it will end in this country and there will be no violence in Zimbabwe and we can have peaceful elections. I urge you chiefs that are in this august House to be forthright and upright. Once you do that, elections will be held freely and fairly.
If we are to be elected into positions, we should enjoy the positions that we have been elected into because the people love you. You should not rule because you threaten people and they are afraid of you - that is not good governance. This motion gives us a chance to reflect and self introspect on how we have conducted our previous elections and that if there are any malpractices, we should be able to correct these anomalies. Those that are at home, expect us as their Members of Parliament to inspire confidence to them that as we go for the 2018 elections, no blood is going to be shed. What Hon. Sen. Sibanda has said, I have read it, it was also recorded; about the utterances said by Hon. Mahofa. I am not ashamed to name and shame her because the utterances that Hon. Mahofa made are threatening that people will be killed. If you win an election using such modus operandi, is that good? I urge all of us in this House that we debate and do it in a ….
HON. SEN. MOHADI: On a point of order Mr. President. Mr.
President, we are not told what to do, we are not kids.
THE HON. DEPUTY PRESIDENT: Hon. Sen. you have heard
that.
HON. SEN. CHIMHINI: Thank you Mr. President. I reiterate that I urge everyone in this august House that every time that we stand up and address crowds; we should speak and encourage peace because no one wants a country that is violent. We want a country where elections can be held in a non-violent atmosphere. Chiefs, I once again urge you to lead by example. I thank you Mr. President.
*HON. SEN. CHIMANIKIRE: Thank you Mr. President for the opportunity that you have given me as I want to give a few words as a mother. I will direct my debate about violence to our daughters and sons. As mothers, when we have the Women’s Caucus, we should urge each other to talk to our sons. Our chiefs and grandfathers are there; if a daughter in-law has not lived up to expectations, return her to the inlaws for counselling. Our fathers should talk to our sons that if your wife fails to live up to expectations, please do not assault her. Our daughters can also no longer be remonstrated with. They no longer take our advice and they want to encourage the husband to assault them and you try by all means to stop this violence. I urge women all over the country to go and talk to our children both male and female.
I will now talk about violence pertaining to politics. A lot of politicians; those in the National Assembly and in the Senate do not have children that fight their wars for them. Their children do not go and assault other children – they are well educated and they are at work.
We are abusing other people’s children. They go barefooted and you go into your constituency and create a violence prone team that is fed on a daily basis on marijuana and alcohol. At the end of the day, those children that are so abused, have nothing to show for it and they move around wearing slippers. But in the meantime, your children as a Senator go out of the country, board airplanes, learn abroad and come back. Where is this leading us to as Zimbabweans? We are Christians and should walk the talk. If we were to borrow what happens in other jurisdictions, we will observe that several political candidates line up and address the people. They are given equal opportunities to address the people who then elect their own candidates and not to gain a constituency through violence or by shedding someone else’s sons’ or daughters’ blood. The parents that are being killed have their own children and no longer have bread winners. Once you become a Senator or a Member of Parliament, you come here with blood stained hands and enjoy the benefits of living in a hotel, having a good life and everything that goes with it but you would have shed blood. We should desist from this and may God have mercy on us. I thank you.
*HON. SEN. CHIEF MUSARURWA: Thank you Mr. President.
I would like to add my voice to this motion raised by Hon. Sen. Sibanda and seconded by Hon. Sen. Ncube which deals with violence in our country. It stems from domestic violence, which is the assault of men by women or vice versa. It could be the raping of women or men, abduction, kidnapping and extraction of men’s sperms for sale. All this is violence.
The motion also touches on the issue of political violence. This happens on a sphere of elections. As Chiefs, we are grateful for the motion that you have raised. As Chief Musarurwa, I say all that violence should be stopped in Zimbabwe. We should not turn a blind eye to such violence. If today someone forms a political party – like what I heard some time back in broad daylight saying, I now want to be the leader when there is already a leader. They went on to say, Mugabe must go peacefully; if he does not want to go peacefully we will remove him violently. – [ Hon. Sen. Musarurwa having called for protection from the Chair] –
I was saying newcomers into the political arena, who formed their own parties and then strike the heart of a ruling leader, that should be stopped. There should be no such statements, that you will remove a leader violently; that you want to march to the State House. Even in the Western countries, they do not march to the Queen’s residence. This country was fought for and it was decided that the ballot would be the best thing whereby people choose their leadership.
This is a good motion and if political parties are going to pay heed, this violence will end. As chiefs, we have the power to stop violence. We have the power if you listen to us when we say, do not come into my area of jurisdiction whether you are a Member of Parliament for NDU, baboon or hare, without informing me that you want to come into my area. Respect us in that manner, there will be no such violence because as chiefs, we know how we live in our areas. We know who is in our constituency and they cannot go and assault a child from another family because they know each other.
It becomes difficult for you to go to Chivhu, you want to campaign and you bring people from Mutoko. By so doing, you now perpetrate violence to the constituency because we would not appreciate where you are coming from. I urge this august House during the course of this debate not to open old wounds. The opening of old wounds is not a good thing. The things that we keep on repeating, like the issues of Gukurahundi tend to divide the country and everything concerned with it. My considered opinion is that when the issue of Gukurahundi is debated, we further divide this country and tend to be retrogressive.
Chiefs who sponsored the Unity Accord, have never talked about the issue of Gukurahundi, which you the leadership consistently talk about. We do not deny that it happened. If it so happened, it did happen but you should not open old wounds. There are others with certain incidences that might have happened before and when the two incidences are brought together, we tend to be divided as a country and this is detrimental to us.
This motion which was raised by Hon. Sibanda; we know we want to go for elections. This land belongs to the chiefs, give the chiefs a chance and ask us what we think so that we can give you our advice which can enhance the development of this country. You do not just stand up here and give us your opinion and in the end there will be no peace. By so doing, we will have done nothing. We will not build anything constructive. Mr. President Sir, it is my appeal that as we go to these elections, we should ensure that those that are going to debate, debate so as to ensure that we have free and fair elections and that they will be done peacefully. We should not be apprehensive of these elections. Maybe we are not ready and we want to hide behind a finger and say you foresee violence – [HON. MEMBERS: Inaudible
interjections.] –
THE TEMPORARY PRESIDENT OF THE SENATE: Order,
order. Let the Hon. Chief speak.
*HON. SEN. CHIEF MUSARURWA: Thank you Mr.
President. When the Chief is speaking, it is good to clap hands at all material times even if it affects you. You should not be grumbling when this affects you. As chiefs, we take no sides. What is bad is bad. If you tell me that you are going to remove me violently, I will then make preparations. I heard the leader who was threatened saying, the people have spoken. I was chosen by the people, so let the people have their
say on the next election – [HON. SEN. MARAVA: Inaudible
interjections.] -
THE TEMPORARY PRESIDENT OF THE SENATE: Order
Senator Marava. Let the Chief be heard in silence.
*HON. SEN. CHIEF MUSARURWA: Thank you Mr.
President. If someone has done good, we should appreciate it and encourage such behaviour. On the contrary, if one has done badly, we should remonstrate with them. I will not belabour the point except to say, peace and love should be the tenets that we treasure most in this august House. Whenever a motion is raised, we should debate it with a view to improve ourselves and develop our country. We should not open old wounds, especially the issue of “Gukurahundi” which you seem to be obsessed with. Such issues are best left to the chiefs, the owners of this land who can come up with amicable solutions.
If you look at what happens in other countries such as Sierra Leone, there has been civil war emanating from the opening of old wounds. We do not envisage such a scenario happening in a country where there are peace loving people like Zimbabweans. With those few words, I would like to urge Members of this august House to remain focused and respect the will of the people to the extent that whoever will have won an election should enjoy their reign in a peaceful environment.
Thank you.
THE TEMPORARY PRESIDENT OF THE SENATE: I am
advised that there is a serious interpretation problem. Those that are using Shona or Ndebele, their debates may not be reflected. If you see an error in your speech, it will be due to the interpretation problems. So, please check your debates.
HON. SEN. B. SIBANDA: Thank you Mr. President. I move that the debate do now adjourn.
HON. SEN. MAKONE: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 1st February, 2017.
MOTION
STATE OF THE NATION ADDRESS BY HIS EXCELLENCY
THE PRESIDENT
Third Order read: Adjourned debate on motion in reply to the State of the Nation Address.
Question again proposed.
THE DEPUTY MINISTER OF MEDIA, INFORMATION
AND BROADCASTING SERVICES (HON. SEN. MATHUTHU):
Thank you Mr. President. I move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 1st February, 2017.
MOTION
PRESIDENTIAL SPEECH: DEBATE ON ADDRESS
Fourth Order read: Adjourned debate on motion in reply to the Presidential Speech.
Question again proposed.
THE DEPUTY MINISTER OF MEDIA, INFORMATION AND BROADCASTING SERVICES (HON. SEN. MATHUTHU): I
move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 1st February, 2017.
MOTION
REPORT OF THE DELEGATION TO THE 68TH SESSION OF THE
EXECUTIVE COMMITTEE OF THE AFRICAN PARLIAMENTARY
UNION
Fifth Order read: Adjourned debate on motion on the Report of the delegation to the 68th Session of the Executive Committee of the African Parliamentary Union.
Question again proposed.
HON. SEN. GOTO: Mr. President, I move that the debate do now adjourn.
HON. MOHADI: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 1st February, 2017.
MOTION
FIRST REPORT OF THE THEMATIC COMMITTEE ON GENDER
AND DEVELOPMENT ON THE STATUS OF CHILDREN’S HOMES
Sixth Order read: Adjourned debate on motion on the First report of the Thematic Committee on Gender and Development on the Status of Children’s Homes.
Question again proposed.
HON. SEN. MAKORE: Perhaps, let me seek your guidance. These two motions have overstayed and we request that there be some response from the relevant Ministries. I do not know whether we should continue debating or be guided because as of now, I do not know how to go forward.
THE TEMPORARY PRESIDENT OF THE SENATE: My
view is that you adjourn. We, as a Chamber and in agreement with the President of the Senate took a position that this time around, we would want to see Ministers responding to our motions before we wind them up. - [HON. MEMBERS: Hear, hear] – So we will convey the message again to the President of the Senate.
HON. SEN. MAKORE: Thank you very much Mr. President.
On that note, I move that the debate do now adjourn
HON. SEN. MARAVA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 1st February, 2017.
MOTION
SECOND REPORT OF THE THEMATIC COMMITTEE ON GENDER
AND DEVELOPMENT ON EARLY CHILD MARRIAGES
Seventh Order read: Adjourned debate on motion on the Second report of the Thematic Committee on Gender and Development on Early Child Marriages.
Question again proposed.
HON. SEN. MAKORE: Mr. President, I move that the debate do now adjourn.
HON. SEN. MARAVA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 1st February, 2017.
MOTION
REPORT OF THE DELEGATION TO THE 39TH PLENARY
ASSEMBLY OF THE SADC PARLIAMENTARY FORUM
Eighth Order read: Adjourned debate on motion on the Report of the delegation to the 39th Plenary Assembly of the SADC Parliamentary
Forum.
Question again proposed.
THE DEPUTY MINISTER OF INFORMATION, MEDIA AND BROADCASTING SERVICES (HON SEN. MATHUTHU):
Mr. President, I move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 1st February, 2017.
On the motion of THE DEPUTY MINISTER OF
INFORMATION, MEDIA AND BROADCASTING SERVICES
(HON. SEN. MATHUTHU), the Senate adjourned at Five Minutes to
Four o’clock p.m.
PARLIAMENT OF ZIMBABWE
Friday, 23rd December, 2016
The National Assembly met at Half-past Nine O’clock a.m.
PRAYERS
(THE HON DEPUTY SPEAKER in the Chair)
ANNOUNCEMENT BY THE HON. DEPUTY SPEAKER
DEATH OF HON. JOSHUA MOYO
THE HON. DEPUTY SPEAKER: It is with profound sorrow that I have to inform the House of the death of Hon. Joshua Moyo, Member of
Parliament for Mwenezi East Constituency on Thursday, 22nd December, 2016. I invite Hon. Members to rise and observe a minute of silence in respect of the late Hon. Member.
All Hon. Members observed a minute of silence.
MOTION
ADJOURNMENT OF THE HOUSE
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Madam Speaker I rise to move
that the House do now adjourn. I would like to take this opportunity to wish all Hon. Members of Parliament a Happy Christmas and Prosperity in the New Year.
Motion put and agreed to.
The House accordingly adjourned at Twenty Five Minutes to Ten o'clock
a.m. until Tuesday, 24th January, 2017.
PARLIAMENT OF ZIMBABWE
Wednesday, 7th December, 2016
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. DEPUTY SPEAKER in the Chair)
ANNOUNCEMENTS BY THE HON. DEPUTY SPEAKER
APPOINTMENT TO PORTFOLIO COMMITTEES
THE HON. DEPUTY SPEAKER: I have to inform the
House that, pending the finalisation of nomination of committees by the Committee on Standing Rules and Orders, Hon. Mliswa will serve on the following three Committees:-
- Agriculture, Mechanisation, Lands and Rural Resettlement;
- Education, Sport, Arts and Culture and
- Mines and Mining Development.
AMENDMENTS TO THE PRIVILEGES, IMMUNITIES AND
POWERS OF PARLIAMENT ACT
THE HON. DEPUTY SPEAKER: I also wish to inform the House that the Committee on Standing Rules and Orders has considered the proposed amendments to the Privileges, Immunities and Powers of Parliament Act, Chapter 2:08 and is inviting an input from all Members of Parliament. Copies of the proposed amendments have been circulated through your pigeon holes.
INVITATION TO THE ZIPA MEETING
THE HON. DEPUTY SPEAKER: I furthermore wish to advise all Members of the Association of Zimbabwe Parliamentarians against
HIV/AIDs (ZIPA) that a meeting will be held tomorrow, 8th December, 2016 at 9:00 am in the Government Caucus. All Members who are interested in issues pertaining to HIV/AIDS are invited.
HON. GONESE: On a point of privilege Madam Speaker.
THE HON. DEPUTY SPEAKER: What is your point of
privilege?
HON. GONESE: Thank you very much Madam Speaker. I am
raising a matter of privilege as a Member of Parliament. I want to place it on record that we are being abused in this august House. Previously, members of this august House have raised the issue that we must abide by our Standing Orders; we must abide by the provisions of our
Constitution. It is very clear that in terms of Standing Order No. 63, Hon. Ministers, if they are not available to come to Parliament, must apply for leave in writing. We have made the point previously that the
Chair, yourself or the Speaker, whoever is in the Chair must inform us –
[HON. MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Order, Hon. Members.
HON. GONESE: I am going to reiterate the point. Last week, the Hon. Speaker agreed that he should inform us of members who would not be present because they have been granted leave. He mentioned specifically the Ministers who had asked for leave and said that the
Administration of Parliament was going to make a follow up. The Hon.
Speaker gave an undertaking - [HON. MEMBERS: Inaudible
interjections.] –
THE HON. DEPUTY SPEAKER: Order, can we have order in
the House.
HON. GONESE: The Hon. Speaker gave an undertaking that the
Administration of Parliament was going to look in to the case of those Ministers who were in flagrant violation of Standing Orders, who had not applied for leave and who had not been granted leave. Up to now, we have not heard a response but for today, my point is this and it is very simple. Your office should inform us at the commencement of each session because the provisions of Standing Order No. 63 as read with the provisions of Section 107 of the Constitution are very clear.
We must be advised as a matter of procedure and as a matter of practice at the commencement of each question time session of the names of those Ministers who have applied to your office to be excused. We must then be advised of those who have not so that the necessary processes of disciplining those Ministers as provided for in terms of Standing Order No. 63 unfold. As it is, we are being taken for granted, which is the reason why I am saying that we are being abused. The people of Zimbabwe are being abused. You must advise us who has been excused – [HON. MEMBERS: Inaudible interjections.] –
We demand that before we proceed, please tell us which Minister has been excused. We need to do that as a matter of practice every time we come for question time. We must follow our rules. Our rules are meant to be obeyed, this is our Bible, that green book is our Bible. Yesterday we had a full House and some hon. backbenchers had to be moved from their seats because all the Ministers were present and by the same token, they should have been here today. So, we are therefore demanding that before we can proceed, before we can go to question time, tell us which Ministers are being truant and thereafter we can then proceed. So, that is our demand Madam Speaker.
THE HON. DEPUTY SPEAKER: Thank you Hon. Member.
What you have been saying is very important to this House but the problem now is you continue going on and on saying the same question.
I want to answer you but you keep on stressing. I am saying from this Chair, the Hon. Speaker surely promised us that we should let you know.
That is if we receive something from those ministries or Ministers. Right now, I just have an apology from Hon. Mumbengegwi who is attending a meeting somewhere outside the country.
To those who are not attending, I do not have any written apology from any office. Anyway, since this was promised to you Hon. Members, the Hon. Leader of the House and the Vice President is also here to help us on what might have taken place but after that, I think we can proceed because we have some Ministers at the front bench who can answer to some questions which you have.
HON. GONESE: I just have a minor point if you can just indulge me.
THE HON. DEPUTY SPEAKER: What is it?
HON. GONESE: We just want your assurance that this will not continue as a matter of where we just talk about it without any concrete action being taken. That is the assurance we are simply asking that from now going forward, appropriate measures and necessary steps are going to be taken, so that those Ministers are charged with contempt of Parliament.
*HON. CHINOTIMBA: On a point of Order Madam Speaker.
THE HON. DEPUTY SPEAKER: What is your point of order?
*HON. CHINOTIMBA: My point of order is that it appears like Hon. Gonese keeps on talking and talking and it is painful to us for him to always be talking like this. I think the Leader of the House is here. As the ruling party, we are also fed up of continuously being told now and again. What we need here - [HON. MEMBERS: Inaudible
interjections.] –
THE HON. DEPUTY SPEAKER: Order, order can we please
have order.
*HON. CHINOTIMBA: My point of order is that there are some
painful things that happen in this House. We are consistently being blamed. The Vice President as Leader of the House is here, he should go and sit down with his Ministers to ensure that we are not continuously remonstrated by the Hon. Gonese. It may appear as if he is being political but that is the situation on the ground, that is the truth. That truth becomes over emphasised. So, we are requesting Hon. Vice
President to go and talk to his Cabinet Ministers for them to attend Question Time. If all Ministers are not there, we should be informed than for us to give Hon. Gonese the floor every time for him to air more complaints.
THE VICE PRESIDENT AND MINISTER OF JUSTICE,
LEGAL AND PARLIAMENTARY AFFAIRS (HON.
MNANGAGWA): Madam Speaker, it is true that Hon. Gonese is a champion of the issues he just mentioned every day. I always respond to him that we have Cabinet every Tuesday and I inform them that on Wednesday, there is Question Time and they should attend. They cannot all come at the same time because they have different programmes. I think they will be here. Most of them are here and their deputies are here as well. I suggest that they pose their questions to those Ministers who are here and they should be able to respond to those questions. Others are still coming but our hope is that they should be here because each minister knows his responsibility.
In most cases, Hon. Gonese keeps on reiterating his point as if we do not understand. We understand what he will be talking about and we have understood his concern. We support him that Ministers should come on time. I thank you.
+HON. M. KHUMALO: Thank you Madam Speaker. My
question is directed to the Minister of Transport and Infrastructural
Development. What is the Government’s policy measures on the road leading to Victoria Falls. At an area called Insiza, there are trees close to the road. Motorists are involved in accidents by hitting these trees, when are these trees going to be removed from that road? I thank you.
*THE HON. DEPUTY SPEAKER: Could Hon. Members
minimise the meetings amongst themselves or lower their voices. If
Members cannot do that, then they can go to the Lobby.
THE DEPUTY MINISTER OF TRANSPORT AND INFRASTRUCTURAL DEVELOPMENT (HON. MADANHA):
Thank you Madam Speaker. I want to start by thanking the Hon. Member for asking such a very important question. I would like to inform this House that the Ministry of Transport and Infrastructural Development is currently engaging with strategic partners to rebuild most of our roads. As you might be aware, we recently signed the EPC that is the Engineering Procurement and Construction of the BeitbridgeHarare-Chirundu Road, which was the first road, our first priority on our list. Right now, we are engaging other partners so that we can also dualise the Beitbridge-Bulawayo-Victoria Falls road. We are aware of the road condition that is not very good, but we have already reconstructed some sections along this road that were in very bad conditions and causing some accidents.
We have more roads that we are going to build. The third road on our priority list is the Harare-Nyamapanda. We are engaging with strategic partners to dualise this road from Beitbridge to Victoria Falls. +HON. M. KHUMALO: Hon. Speaker, my question was not been answered. My question was pertaining to Victoria Falls road. There are trees close to the road and that is where Governor Malaba died. Vehicles hit the tree there, what is Government policy to remove that tree. Since we have a company that is constructing a fence along this road, is it possible for this company to remove those trees causing accidents on the road?
HON. MADANHA: Thank you Madam Speaker. If I got the question well, the Hon. Member is asking what we are going to do with the trees which are along the Bulawayo to Victoria Falls road. I will have to consult with the department of roads because this issue has not been brought to our attention that there are trees. The general regulation is, all trees that are within the road servitude must be cleared. So if there are some trees hindering traffic or which are causing accidents, we will go and attend to them and make sure that these trees are brought down.
I thank you.
*HON. ZINDI: Thank you Madam Speaker. I would want the Minister to explain to this House the difference between dualisation and resurfacing. I am saying this because the Plumtree to Mutare road exercise was said to be dualisation but we later realised that it was resurfacing. Now, he is talking about dualisation of BeitbridgeChirundu road. We want him to explain to us so that we can be enlightened on whether it is dualisation, the expansion of the road or it is just resurfacing of the road, like what happened on the road from Plumtree to Mutare which was very expensive.
The project on the road from Plumtree to Mutare should be around
$3.9 billion but the Beitbridge to Chirundu is below a billion dollars.
We want enlightenment on what caused the expensive nature of Plumtree to Mutare in comparison to the dualisation of expanding the roads. That comparison does not satisfy us and we need an explanation.
Thank you.
ANNOUNCEMENT BY THE HON. DEPUTY SPEAKER
VISITORS IN THE SPEAKER’S GALLERY
THE HON. DEPUTY SPEAKER: I recognise the presence, in the Speaker’s Gallery of Widecombe Primary School from Harare. You are most welcome – [HON. MEMBERS: Hear, hear.] -
*THE DEPUTY MINISTER OF TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT (HON. MADANHA):
Thank you Madam Speaker. I want to thank Hon. Zindi for the question that she posed. Most people do not understand what is meant by dualisation and resurfacing. Dualisation is having two lanes going in one direction and two going the opposite direction. The road from Plumtree to Mutare was not dualised – [HON. MEMBERS: Inaudible
interjections.]-
THE HON. DEPUTY SPEAKER: Order, order! Hon. Members
there is a question and there are other Hon. Members who want to understand the answer from the Minister. The Hon. Member has posed a question so, if you know please keep quiet and give others a chance to
listen.
HON. MADANHA: The road from Plumtree to Mutare was not
dualised. Those are single lanes. On the cost of the road, the figure that you saw in the press, that you say is below a billion dollars; it was noted that it is Beitbridge to Harare. The figure US$2, 7 billion that is normally referred to; those are known as estimates. For the BeitbridgeHarare and Chirundu highway roads, there is going to be a ring road that is going to surround the whole of Harare and then there is one that comes from Harare to Chirundu. The total cost will come toUS$2 billion plus, but Beitbridge to Harare comes to about US$980 million.
Rehabilitation is the same as repairing. The road Plumtree to Mutare was repaired and expanded from 7 metres to 10 metres, so if you look at it, you will realise that other areas were resurfaced. Our tarred road is 15 cm thick and with time this wears out by about 4 to 5 cm. So, there is need to resurface and maintain that width. I do not know if I have answered your question. I thank you.
HON. MANGAMI: Thank you Madam Speaker. My question is directed to the Minister of Energy and Power Development. What is Government policy on the contribution which the rural people can make when they want to electrify their homes?
THE MINISTER OF ENERGY AND POWER
DEVELOPMENT (HON. DR. UNDENGE): The Hon. Member has
indeed asked a very pertinent question. The Ministry has the Rural Electrification Fund which is responsible for rural electrification. So far, since it started in 2000 through an Act of Parliament, the Rural Electrification Fund has electrified over 8 500 public institutions, this includes rural clinics, Government buildings and schools. It has gone further to electrify rural households and that is done on a 50% basis. In other words, Government contributes 50% and the rural families contribute the other 50%. So, this is a subsidized programme and I am sure that is what the Hon Member wants to know - to what rural households contribute. So, 50% by the rural people, 50% by the rural electrification fund. I thank you.
HON. MANGAMI: Why does it take time when one has
contributed that 50%, Government takes time for it to electrify a certain place?
HON. DR. UNDENGE: Madam Speaker, indeed it takes time,
that is subject to availability of funds. There is high demand for rural electrification and perhaps if I mention the statistics as they stand – 40% of families in Zimbabwe have access to electricity and 60% do not have access to electricity. Most of the 60% belong to the rural areas. There is now high demand by everybody to have access to electricity, hence the application rate is very high, resources are limited and that is why there is this time lag. I thank you.
*HON. CHISOROCHENGWE: Thank you Madam Speaker.
My question is directed to the Minister of Local Government. May you enlighten us on the law that was there that if you wanted a stand in the urban area; you needed a waiting list number. Is it still applicable?
*THE MINISTER OF LOCAL GOVERNMENT, PUBLIC
WORKS AND NATIONAL HOUSING (HON. KASUKUWERE): I thank the Hon. Member for the question in reference to the waiting list. That law is still applicable. All councils here in Harare, there is a place called Remembrance House, that is where there is the waiting list. I am taking of council.
Furthermore, the council will have the waiting list that they use to allocate stands and houses. However, in the previous months, there was a lot of corruption taking place, so it is a challenge that has affected people in terms of acquiring houses from the council. As a Government we have quite a number of areas that we have identified as State land to ensure that people can get stands in order to build houses in Harare. I thank you.
HON. MARIDADI: Thank you Madam Speaker. I want to ask the Minister on what we witnessed in Norton in the last election whereby people were allocated stands before the election…
THE HON. DEPUTY SPEAKER: Order, order! Hon. Member
that is not a supplementary question, it is a question on its own.
*HON. MARIDADI: Amai handisati ndapedza – [THE DEPUTY SPEAKER: Ahh!]- Sorry Madam Speaker, Handisati ndapedza - [laughter] - regai ndibvunze. Madam Speaker I was asking on what I saw on TV - the Hon. Minister allocated stands in Norton to youths in total of 9 000. Even the President of Zimbabwe said it is not everyone who can get a stand and he said this is not possible. Minister, was everyone who got a stand in Norton on the waiting list?
HON. KASUKUWERE: Thank you Madam Speaker. Firstly, I
want to tell the Hon. Member that he did not see the way he interpreted the whole issue. I was never on television allocating land. Secondly, nothing stops us from allocating our people stands for them to build houses. In Norton, there are so many of them. There may be civil servants who are lodgers and occupy cottages on main houses. So, our aim as Government is to ensure that we implement the housing-for-all scheme.
If you look back we said if we are voted into power we will be able to give people stands in order for them to get housing. Most Members
on my right have approached the courts to block this idea of allocating stands and land to the people. I do not know where they want people to stay - in the trees or as squatters?
We are also building flats to ensure that people get homes for example, in areas like Mbare. Our Government is aimed at ensuring that everyone gets decent accommodation. My colleagues do not want people to settle in their own dwellings and have their roofs over their heads in a comfortable way. I thank you.
*HON. CHISOROCHENGWE: Hon. Minister, my
supplementary question is, as the Minister is it your role to allocate stands to the people or it is the duty of the councils?
*HON. KASUKUWERE: Madam Speaker, I wish the Hon.
Member knew what it means to be the Minister of Housing. It starts from me. Those councils work with what I give them. Therefore, I cannot be denied allocating stands to people. I thank you.
*HON. CHAMISA: Thank you Madam Speaker. My question to
Hon. Minister Kasukuwere is, on this issue of stands, it is one question with various sections. The first section is, why is it that the Government only sees to the allocation of stands just before elections? This is because we realise that people are only remembered when we are on the eve of an election. The most important aspect that I mentioned on my question is, does the Minister not see that he is going back and forth. He allocates stands today and the next thing is, he is demolishing those houses. People would have been given permission to build without authority. The Minister may not see this because where he stays no one can come and demolish the houses but some people’s homes are being demolished. By doing such actions, is that expressing concern for the people?
*HON. KASUKUWERE: Thank you Madam Speaker for the
question that was posed by the Vice President, Hon. Chamisa. I would want to remind Hon. Chamisa that during the Inclusive Government, the Deputy Minister of Local Government was Hon. Mutsekwa, which means that he was not able to do anything. We have come and we are saying implementation needs to take place – [HON. MARIDADI:
Inaudible interjections.] -
THE HON. DEPUTY SPEAKER: Order, order. Hon. Maridadi,
I think you have to withdraw what you have just said because it has nothing to do with what the Hon. Minister is saying. Your being in the same class with the Hon. Minister has nothing to do with this House.
You have to withdraw.
HON. MARIDADI: Madam Speaker, I withdraw that he is
behaving like a school boy. You are not behaving like a school boy.
Thank you.
*HON. KASUKUWERE: Thank you Madam Speaker. May you
allow me to give an explanation that we have a lot of people who do not have decent housing. Our waiting list is at 1.25 million Zimbabweans who do not have stands. That is why I said that if we look back, the
Ministry was run by one Hon. Member who is no longer there, Hon.
Mutsekwa. I am sure Hon. Chamisa remembers that he left the Ministry before he implemented anything. What we are then saying is that –
[HON. MEMBERS: Inaudible interjections.] –
HON. CHAMISA: I have a point of order Madam Speaker.
THE HON. DEPUTY SPEAKER: What is your point of order?
Order, order please. Can we hear what the Hon. Member wants to say.
*HON. CHAMISA: Madam Speaker, you are aware our Standing Orders do not allow us to make reference and accuse members who are not in this House who cannot respond to such allegations. The Minister knows that when the Government is working, it is not right for them to make allegations against people who are not here. I think Hon. Kasukuwere should address what we have asked him – from the challenges that he has in the party, G40 and the destruction of Lacoste.
That is what he should focus on. I thank you.
*HON. KASUKUWERE: Thank you Madam Speaker. I do not
want to say much on how the Hon. Member who posed the question rose to power – [HON. MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Order, order!
*HON. KASUKUWERE: My apologies for stepping on his toes.
I know there are so many things he is not happy about. To go back to the issue of housing …
*THE HON. DEPUTY SPEAKER: Hon. Minister, may you just
respond to the questions that were posed?
*HON. KASUKUWERE: We do it before we go for an election
…
HON. HOLDER: Good afternoon to you Madam Speaker. I
have a point of order. My point of order is, this side of the House is making too much noise – [HON. MEMBERS: Inaudible interjections.] - We cannot hear what the Minister is saying. After all, Hon. Chamisa came into the House late and he got the floor for more than four times, whilst we stand up and sit down. We are tired – [HON. MEMBERS:
Hear, hear.] -
*HON. KASUKUWERE: Thank you. I was responding to the question on when it should be done. I do not know when we should have done this. I believe it is something that we mentioned long ago through a policy statement that was made by Hon. Chombo who gave the total number of housing units we want to build. We were not given an implementation date or when it was supposed to end. The issue of forth-coming elections is entirely their concern. We are just doing our work. So, if it is something that really affects and hurts them, there is nothing we can do about it but we are going to continue.
On the issue of demolitions, he mentioned a very interesting issue. It pains us as well as Government. That is why we have gone a step forward to ensure that we allocate stands to the people. The people who have failed to implement are those from his party. So, we are saying that we need to step in and ensure that no further demolitions take place. We need to regularise – [HON. MEMBERS: Inaudible interjections.] -
THE HON. DEPUTY SPEAKER: Order Hon. Members,
HON. KASUKUWERE: The law says that whoever has land that was invaded is the one who demolishes those houses. The whole of Harare is in the hands of the council. Whoever has a complaint goes to the councilors. What we are saying is that we no longer want demolitions. We now want to plan and ensure that people are properly settled. That is what we are going to be doing. Until the election comes, we are going to be doing that day and night. I thank you.
THE HON. DEPUTY SPEAKER: I gave a ruling that, that is the
last supplementary question on this particular question. Can we please proceed? – [HON. MEMBERS: Inaudible interjections.]- Yes, that is a ruling.
+HON. MPALA: My question is directed to the Minister of War
Veterans. Since he is not in, I will redirect the question to the Hon. Vice President Mnangagwa. What is Government policy on the welfare of war veterans particularly those who are laid to rest at the Provincial Heroes Acre. We see that relatives are the ones who attend to those shrines. They dig those graves and also source for picks and cement so as to enable those relatives to be buried. What is Government policy on that? I thank you.
THE VICE PRESIDENT AND MINISTER OF JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (HON.
MNANGAGWA): I understand that the problem relates to the digging of graves where the relatives of liberation heroes who pass on. I was trying to find out from the Minister of Local Government as to what happens because there is the understanding or regulation that all former war veterans are entitled to status of war liberation hero whether district, provincial or national level, they are awarded that status and that status goes with some benefits from the State.
I am sure it happens that the communication from wherever the war veteran hero has passed on, coming to headquarters and having the system responding, perhaps takes time. This results in relatives digging up the graves. Where the communication is done on time, the provincial
JOC has the capacity to deal with such issues. I thank you.
*HON. MAONDERA: What I want to find out is that if the relatives of those people had carried out those duties incurring costs, will you refund the costs that they will have incurred? I thank you.
HON. MNANGAGWA: There is a fixed allowance for the burial of every liberation war hero, whether the relatives have done it or Government has done the work, that does not change. They still receive the specified allowances.
*HON. MUPFUMI: Thank you Madam Speaker. My question is, we are aware that such war veterans’ remains are buried and war veterans are making contributions to ensure that they rebury such fallen heroes. What is the Government policy on that issue? I thank you.
HON. MNANGANGWA: Madam Speaker, where the programme
is sponsored by Government, it is the Government that meets the expenses. There are incidences where comrades on their own, because they know where their colleagues perished, they come together and exhume the remains of their own colleagues and do that work.
Officially, there is the Ministry which has the responsibility to do so. So, we do not regret that comrades have that love to go back and exhume the remains of their own colleagues.
HON. MANDIPAKA: Thank you Madam Speaker. My question
is directed to the Hon. Minister responsible for the welfare of war veterans. In his absence, I wish to ask the Leader of the House, Hon. Vice President E. D. Mnangagwa. Section 84 of the Constitution is clear about the rights of veterans of the liberation struggle. It is also very clear about their entitlements. My question is, how soon do we expect as a nation to see a Board of Trustees being put in place to manage and implement the welfare of war veterans, given the stories that we read especially the one that is so disturbing where Cde. Chinx is said to be desperate? Thank you.
THE VICE PRESIDENT AND MINISTER OF JUSTICE,
LEGAL AND PARLIAMENTARY AFFAIRS (HON.
MNANGANGWA): Madam Speaker, I think it is noble that our
Constitution provides for those benefits. The second issue is the question of resources to implement the ideals which we cherish. Wherever resources are available, the Government makes sure that it supports such ideals, but where there are no resources, it does not mean that the
Government has abandoned the values and wishes as enshrined in the Constitution. We will continue to do our best to make sure that we satisfy the ideals articulated in our Constitution.
*HON. SITHOLE: Since the Vice President has said Government has no resources to improve the welfare of the war veterans. Is it not possible for the Government to reduce the President’s trips so that money is channeled to war veterans?
THE VICE PRESIDENT AND MINISTER OF
JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (HON.
MNANGAGWA): I did not say Government has no resources. I said where Government has no resources, so there is a difference. Indeed, the Hon. Member should be able to table in this House where the President travelled and where he thinks he should not have gone on a
trip.
*HON. ZINDI: I direct my question to the Leader of the House.
This is on the issue of the war veterans’ welfare. This has been spoken over and over again without nothing tangible happening regarding income generation projects. Ever since, there has been talk of the welfare of the war veterans, there was the war veterans’ board composed of Cde. Dabengwa, the late Mujuru and the late Zvinavashe and Hon. Deputy Minister Mabuwa was also a member of that board. What did this board achieve in terms of income generating projects for the welfare of the war veterans?
Furthermore, as we speak, does the board still exist to address the issues of war veterans? I thank you.
*HON. MNANGAGWA: Madam Speaker, the problem that I
face with Hon. Zindi regarding her concerns is that everything is being done for the war veterans. It is very rare for us then to ask people to gather and inform them that today we have implemented x, y and z. Every year, if she were to look at the budget statement, an allocation is made towards the war veterans, their children and health. About the board that she mentioned where Cde Dabengwa, the late Mujuru and Zvinavashe used to sit, what the achievements were, what she needs to do is to write the question down so that I can go and research. It is not Government policy to know the achievements of the board but the issue as regards the presence of the board; we will investigate to find out if there is such a board. The issue is that there is a requirement as regards the law that there should be such a board. We have held several meetings where the welfare of the war veterans was discussed and the war veterans also gave their own concerns. They were saying that they were happy with what they were receiving but they would appreciate if additions were to be made. Discussions have been held and discussions are ongoing as regards to improving the welfare of the war veterans. I thank you.
HON. NYAMUPINGA: Thank you Madam Speaker. My
question is in relation to these 16 days of activism against gender based violence. Allow me to give a background before I ask my question to the Leader of the House. We all know that in the rural areas, most of gender based violence happens because women will have failed to cook well, especially meat if it is not prepared well, many women are beaten.
My question is, there is a research that was done by WHO on the global burden of diseases which estimated that smoke exposure from a simple smoke act of cooking is the fourth worst risk for diseases which cause premature deaths to women and children under five. What is Government policy on clean energy, nyaya yehutsi yapedza vana? We want to see things like bio-gas and electricity in the rural areas.
*THE VICE PRESIDENT AND MINISTER OF JUSTICE,
LEGAL AND PARLIAMENTARY AFFAIRS (HON.
MNANGAGWA): I have observed that she wants me to respond to the question but the Minister is in the House, maybe she does not know who the Minister is but the Minister is present. The truth is that the world over, Zimbabwe included, we want to move from the methods that cause smoke emission. We want to go into clean energy, which does not damage the environment. This cannot be done overnight. It is a gradual process. We should remain focused to achieve our goal. We understand her issue, we are moving towards that direction to ensure that that is done.
We have ethanol, which we are looking at. So, my Hon. Member is now aware of what is happening.
*HON. CHIBAYA: Thank you Madam Speaker. My question is directed to the Minister of Local Government, Public Works and
National Housing, Hon. Kasukuwere. As a representative of Mkoba, Gweru. It is now almost two years without councillors running that council. The issues that I am aware are at your heart is service delivery.
Residents of Gweru no longer have people to receive their complaints. This has now disturbed the levels of service delivery in Gweru. The councillors have petitioned the court and they have all won their cases. What do you have in place to ensure that the councillors go and discharge their duty as was mandated by the electorate? I thank you.
THE MINISTER OF LOCAL GOVERNMENT, PUBLIC
WORKS AND NATIONAL HOUSING (HON. KASUKUWERE): I
want to thank the Hon. Member for the question. The question relates to councilors and the state of affairs of the Council of Gweru. We have a commission that is running that sits in the interim after we had observed that there were certain short comings with regards to the manner in which the councillors were conducting their business.
There were councillors who had petitioned the courts last week and we said we would then follow the local government amendment laws which now empower us, as a Ministry, to accept written submissions by suspended councillors as to what their position is. We start at the level where the Ministry will look at each issue as it relates to every councillor. This is done by our legal practitioners in our Ministry. It is an easy task and if there are those who would want to have charges preferred against them, they will appear before tribunals.
It is our problem collectively with Hon. Chibaya, to ensure that service delivery is done properly. This morning, I was given a report by the Chairperson of Gweru, Mhangami. We now have a town clerk and we have directors. They have done water projects in villages 14 to 19 and they can now access water in Mkoba. They have also purchased 10 motor vehicles to attend to burst pipes, they have bought 10 skid bins to ensure that refuse is removed, there is a fork lift and a lorry that is going to be purchased to ensure that sanitary services are improved.
I would want to give the Hon. Member my assurance that we share the same concerns and that we have the interest of Gweru at heart. In the mean time, let me thank Mr. Mhangami’s Commission for having discharged their job better than the councillors before them. I thank you.
HON. ZVIDZAI: My supplementary question to the Minister is around the composition of the Commission vis-a-vis the existence of councillors. At the moment, we have three councillors in Gweru and in addition to that, the Minister has put in three commissioners, which is completely unlawful because we have got enough councillors to form a quorum to transact business of the people in Gweru, legally and effectively. So, whether they are delivering well or not, why is the Minister deciding to deliver services unlawfully? Why is he deciding to ensure that services are improved through sodomy and rape when he could do it properly?
HON. KASUKUWERE: Madam Speaker, we suspended the
entire council so there is no question about them forming a quorum. They cannot form a quorum when they are suspended. They can only form a quorum if they are legally in office. The three councillors I have talked about are those who were elected. We had three unfortunate deaths of members of our Gweru council who passed on and they were replaced by three councillors who themselves, had no blame or in other words were not part of the suspension. The three who are deceased were also actually part of the suspended, but we cannot suspend the new councillors who were elected after the other ones had died.
So to that extent, I have said all the councillors are going to go through the motions and the processes. If we find that some of the councillors are not guilty and must not be suspended, they will come to work and if they are over 11, they will constitute a quorum. So, we are very much aware of the legal responsibilities we have and we know the law anyway, so we will do what has to be done correctly in terms of the law. Thank you.
HON. ZVIDZAI: I realise that the three councillors that are currently lawfully councillors in Gweru came through by-election, so they are legally there already. Why should they be assessed or punished because of people they replaced – [HON. MEMBERS: Inaudible
interjections.] -
THE HON. DEPUTY SPEAKER: Order.
HON. ZVIDZAI: Why is he not disbanding the Commission so that they form a quorum? Three councillors form a quorum – [AN HON. MEMBER: It is 11.] - No it is not 11, it is a third of that. So they are there.
THE HON. DEPUTY SPEAKER: Order, order!
HON. KASUKUWERE: Assuming it is a third, what is a third of 18? Just mathematics. Gweru is composed of 18 councillors and there are three councillors – [AN HON. MEMBER: It is a sixth.] – No, in fact the quorum in Gweru council is11. I know what I am doing. We cannot have three councillors run the city of Gweru, hence we have appointed the other commissioners to beef up the numbers so that they can be able to do the work.
*HON. MUTSEYAMI: Thank you Madam Speaker. My
question is directed to the Leader of the House, the Vice President Hon. Emerson Dambudzo Mnangagwa. As an august House, as members of the opposition, we recently complained about policy on the manner in which food is being distributed all over Zimbabwe. We complained that food was being distributed on partisan basis. We then appealed to you that it should be non-partisan.
We saw rice being received from Japan to feed the people, but the biggest problem that we have in this country is that as members of the opposition, we are not getting rice to give our own constituencies as the people’s representatives. The distribution is now even worse. No redress to the question has been done. The problem is now even involving members of ZANU PF. There are members in ZANU PF that are receiving rice whilst others are not receiving it based on factions – the G40 and the Lacoste factions. If you want to prove that I am not lying, the Hon. Minister of Public Service, Labour and Social Services should show the records of the people that have received that rice.
*THE HON. DEPUTY SPEAKER: Order Hon. Member, get to
the gist of the matter. What is the question? Do not get excited.
*HON. MUTSEYAMI: I asked the Hon. Minister for Public Service, Labour and Social Services to give the records of the MPs that were given rice in Zimbabwe. You will see that the majority of the members that are going to receive rice are in ZANU PF and they are now going to get a second bite of the cherry. Why should we not redress this issue that they be given the rice in a non- partisan manner? It is being distributed in ZANU PF along the G40 and Lacoste lines. I thank you – [HON. MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Order, please listen to the response.
THE HON. VICE PRESIDENT AND MINISTER OF
JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (HON.
MNANGAGWA): I do not understand what the response should be.
Initially he said when people are receiving food throughout the country, it is being done on partisan basis. We do not allow such discrimination in the distribution of food. The law says that all deserving persons should be given food regardless of political affiliation. If there is a vulnerable family that deserves to be given food, it should receive the food and that is policy. However, on the second issue where he mentioned that some received and others did not receive the food, surely that cannot be a policy issue but administrative. I ask the Hon. Member to put the question in writing so that the specific issues can be investigated accordingly.
HON. GONESE: My supplementary question is; if we can have clarity on the way in which the policy is supposed to be implemented. He has indicated that in terms of the policy, there must not be any discrimination on the basis of political affiliation. What I want the Minister to tell the nation through this august House is precisely how the rice is supposed to be distributed, what is the role that is supposed to be played by Members of Parliament as a matter of policy and the role of the Ministry of Public Service, Labour and Social Services?
THE HON DEPUTY SPEAKER: I thought that once Hon.
Mutseyami has put his question in writing, everything is going to be answered with a Ministerial Statement.
HON. GONESE: No Madam Speaker, what I need at this point in time is clarification on the policy while Hon. Mutseyami goes into details regarding unfair distribution.
THE VICE PRESIDENT AND MINISTER OF JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (HON.
MNANGAGWA): I think he is addressing his mind to who receives and how the vulnerable groups are identified. That is done through the ZIM-VAC system. The beneficiaries are identified and written down and these are the people to whom, administratively and not by policy receive the transportation logistics and the method of distribution.
HON. MLISWA: I would like to seek clarification from the
Minister of Home Affairs Hon. Chombo, who is responsible for the law enforcement agents of this country. The Constitutional Court ruled that Professor Moyo must not be arrested but that is a Constitutional Court. Does that stop the ZRP, which is constitutionally mandated to enforce the law because if we all rush to court especially myself, you are aware I have been before the courts over 70 times and acquitted 70 times. It seems you are also compromised because I have a letter with me which you wrote on the 19th exonerating the Minister in question over the donations made from ZIMDEF saying they were for the Party. However, there were also transfers into his account. Did the Party give him the go ahead to also receive the transfers into his account? What I am basically trying to say is that the role of the law enforcement agent is not to listen to the Constitutional Court but to bring somebody before the courts, investigate and take them to Rotten Row. So, why has the Minister not done that? Could it be because His Excellency who has powers to stop Ministers from being arrested has issued such an order?
THE MINISTER OF HOME AFFAIRS (HON. DR.
CHOMBO): The Zimbabwe Republic police will arrest anybody when there is sufficient evidence that a crime has been committed. ZRP does not take orders from the newspapers or WhatsApp but will first investigate and when they are sure and convinced that a crime was committed, they will then effect arrest. The President of this country, Cde R. G. Mugabe has not told the police or anyone that they should not be arrested because they are of such a position - that is not correct. So, if there is evidence which Hon. Mliswa of Norton Constituency has that he thinks the police can benefit from, they will be very glad to accept and utilize it.
HON. MLISWA: Minister, you are wrong. The Prosecutor
General ..
THE HON. DEPUTY SPEAKER: Order Hon Mliswa, you
cannot say the Minister is wrong. Just bring in your supplementary question.
HON. MLISWA: I withdraw the word wrong. Minister, the Prosecutor General is responsible for investigating and they have written to the Commissioner General Augustine Chihuri to arrest. They are the key body in ensuring that The Professor is arrested because they are the ones who studied the docket. Three letters were written to the Commissioner General to arrest Professor Moyo. His Deputy Minister was arrested, so why has he not been arrested after the Prosecutor General who has the mandate to investigate has said he must be arrested?
HON DR. CHOMBO: The Hon. Member said Professor Moyo
went to the Constitutional Court and was given a reprieve for whatever reasons, I really do not know. So, why should the police then act contrary to what the law says? Secondly, I am unaware of any correspondence between the Prosecutor General and the Police. If there are issues of concern, I would be very glad to look and see what the issues are. So, instead of bringing the issues here, they could have been brought to me and I would have attended to them.
HON. MLISWA: Minister, the Constitutional Court has not stopped Professor Moyo from being arrested, unless you have another court order. The law enforcement agent has not been stopped from arresting. Why then is he not being arrested, he cannot duck and dive. He has not been stopped from being arrested. He must be brought before the courts and answer to the allegations just like his Deputy Minister did.
HON. DR. CHOMBO: I have already answered that question a number of times, so he can read the Hansard tomorrow for the answer. I thank you.
Questions Without Notice were interrupted by THE HON.
DEPUTY SPEAKER in terms of Standing Order No. 64.
HON. HOLDER: Madam Speaker, I move that time for Questions Without Notice be extended by 15 minutes.
HON. CHIBAYA: I second.
Motion put and agreed to.
*HON. KAUNDIKIZA: Thank you Madam Speaker. My
question is directed to the Minister of Health and Child Care or his deputy. In their absence, I direct my question to the Leader of the House. What is Government policy as regards the elderly that are 60 years and above that are being asked to pay for their treatment in Government institutions?
*THE VICE PRESIDENT AND MINISTER OF JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (HON.
MNANGAGWA): Madam Speaker, my understanding is that, it is true that the elderly are entitled to free medication. What I am not certain about is the cut-off age, but the elderly do not pay for treatment in Government institutions. If the Minister was here, he would have given the specific age.
If you fall within the stated category you should not be made to pay. If there are any persons who paid because they were asked to pay, if you know of such an incident, please write to the responsible Minister of Health and Child Care that such an incident took place and that the elderly who are entitled to free medication have been made to pay so that the issue can be looked into then redressed. I thank you.
*HON. MAHOKA: My question is directed to the Minister of
Transport and Infrastructure Development Hon. Dr. Gumbo. What is Government policy about the department of roads? We observed that a lot of money is being given to people that construct the roads but they are not properly constructed. The road to Manicaland is peeling off on hot days. We have our own Department of Roads - why should this money not be given to this department so that they can buy sufficient equipment and the Government can repair such roads without outsourcing this service to foreigners because we do not have foreign currency which is in short supply. I thank you.
*THE MINISTER OF TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT (HON. DR. GUMBO):
Thank you Madam Speaker for the question that has been asked by Hon. Mahoka. She is unhappy with the peeling of the surface of the road due to the hot weather. Believe me, this question - I have already responded to it in this august House. The work that was done on the Plumtree Mutare road, there are sections where it was not properly done. The company that constructed the road is attending to such defects. This road was constructed as a result of a tender being awarded. It was a public tender, it did not ask for local suppliers. The tender was won by Group Five from South Africa. It did not mean that the Department of Roads or any Zimbabwean company was barred from submitting their tenders. If our department was capable, it could have done it.
As regards the issue of the Department of Roads which is under the Ministry of Transport, that it should be given sufficient funding to purchase equipment, I applaud her for that but as Parliament, when we come to the issue of budget allocation, a lot of money must be allocated to the department of roads so that they can purchase road equipment to enable them to maintain the roads on their own.
*HON. MAHOKA: My question is that the patches that are being put on this road, I do not believe are good. As Government you need to stop those people from doing it or they should redo the entire road. There should not be patches on this road; there should be a proper resealing of that road. Those that have heart problems are being affected as they travel on that road. I thank you.
*HON. DR. GUMBO: I thank you Madam Speaker. I agree that there are such patches on this road. Let me take this opportunity to explain that the Plumtree to Mutare road was not constructed. It was merely resealed, which means that they did not go into full construction of that road. That is why they tend to be patches and why only US$260m was used to construct that road. This was a resealing exercise from Mutare to Plumtree. For a construction of that road, it would be in excess of the amount that we used. Resealing simply means putting on a new surface on a surface that is already there. Funds permitting, we will remove the surface so that the road can be reconstructed so that it will not have such patches that you are talking about. I thank you.
*HON. ZINDI: Thank you Madam Speaker. I am concerned about the figure of US$260m, I read in the paper that the figure would be US$3.8b to US$3.9b for the Plumtree to Mutare road. Even when he responded that he has since answered that same question, the sum of US$3.9b was made reference to. I want to know as to the exact figure that was used by the Ministry in the resealing exercise of the Mutare Plumtree road. Was it in the region of US$206m is that the truth?
*HON. DR. GUMBO: The amount used for the resurfacing of the Plumtree to Mutare road is $206 million. I am not the one who mentioned the figure. That amount was passed by Parliament because it is a debt. Every Member of Parliament is aware that we have an agreement that was passed by Parliament indebted to the sum of $206 million for the construction of that road.
HON. DR. MASHAKADA: My question is directed to the
Minister of Finance but in his absence, I direct it to the Leader of the House. Madam Speaker, we are approaching the festive season and it is common cause that people cannot access their funds from the banks. There are long winding queues in the banks as people are trying to withdraw their funds but banks have imposed very low withdrawal limits. This is affecting economic activity.
My question is, in view of the fact that bond notes were issued and the market had hoped that the bond notes were going to alleviate the cash crisis, even though the people had rejected the bond notes, they were introduced. Their introduction has not solved the cash crisis. What is Government policy regarding improving the liquidity situation in the country?
THE VICE PRESIDENT AND MINISTER OF JUSTICE,
LEGAL AND PARLIAMENTARY AFFAIRS (HON.
MNANGAGWA): I thank the Hon. Member for the question. There is the issue of policy and the issue of administrative procedures. With regard to the issue of policy, addressing the issue of lack of liquidity in the market, one measure that has been introduced is the introduction of bond notes for internal transactions. At administrative level, the Reserve
Bank has introduced the bond notes initially with $10 million. Last
Monday, they put in another $7 million and we are now at $17 million.
They are going to put again another amount until we reach the amount stated of bond notes. That is intended to ease internal commercial transactions among our people.
We have serious concern about the queues that we see around banks. It is not policy of Government that people should queue. That must be resolved through the financial services sector, by the people in there. We would also want to find out why they are making people withdraw limited sums, yet so far $17 million has been put into the market. On a weekly basis, an amount shall be put into the market by the Reserve Bank. We are together Hon. Mashakada in addressing the concern of liquidity in the market.
*HON. ENG. MUDZURI: Thank you Madam Speaker. My
question regarding the issue of bond notes is that Government policy in a US dollar account should also be used for bond notes and that there will be no separation. It has been indicated that for internal use, we should use bond notes and further stated is that this is an incentive that is going to be given for exports. This is now confusing people. People had foreign currency accounts because they needed US dollars for paying fees but they can no longer do that. The Reserve Bank now stops people from paying fees when you have a foreign account which has money.
What is going to happen to people that have freely raised such funds for own purposes because you are now forcing them to use the bond note? What is the Government’ policy as regards this?
*HON. MNANGAGWA: Madam Speaker, the Vice President of MDC-T once sat down with me and I responded to all the questions that he has raised. Maybe he wants other people to now know about it. I will reiterate my response to the two of us. My explanation was that it is true that the bond note and the US dollar are equivalent. They are at par. If you are putting the bond note together with the US dollar in a pocket, as you take out your money and want to buy, the currencies are the same. I do not know if I have it here – [The Hon. Minister searched his pocket] – This is a bond note and this is the US dollar. They are put in the same pocket. The two can coexist, they are not in conflict. If you go to the bank, it is the same account where you deposit your US dollar and your bond note. The following morning, if you want to get your bond note, you are given. If you want your US dollar, you are also given a chance to do that.
I explained about imports and I explained that there is a nostro account which means that what we import, we pay through foreign currency or the US dollar. For us to earn that foreign currency, we earn it through exporting to foreign countries. Then it goes into our nostro accounts through our Reserve Bank so that when these transactions are done through your bank, it relates to the corresponding bank out of Zimbabwe where you use the nostro account.
There are four things that we can use to earn foreign currency. The stage where we are now is that we are now importing more than what we are exporting. In terms of balance of trade, in the nostro accounts, we have a deficit. That is where the challenge is and hence the delays in carrying out the transactions. We then decided that given such a scenario, we should use our bond notes to buy our African chewing gum and our wild fruits called matamba but we then said the same account should be used for US dollars and the bond note because they are the same. So, if you have a lot of money you go to the bank and it will be disbursed. However, we have laws that then restrict the amount of foreign currency that you can take out of the country. People are quite happy with the bond notes. I thank you.
HON. BHEBHE: Thank you Madam Speaker. Zimbabwe
currently has 94.6% of its people surviving on informal trade meaning that they go out to Mozambique, Zambia, South Africa and Botswana to get things to resell so that they can survive with their families. How then do they manage to access money when it is not available in the bank?
HON. E.D MNANGAGWA: The Hon. Member is saying, here are people who want to go and buy in Mozambique and some other surrounding countries. You only do so when you have money. When you do not have it, you cannot say you want to go and buy because you do not have the money. However, if you have the money, you go and withdraw your money in US dollars but you must also take into account the exchange control regulations regulating how much you can take outside. So that is how it is.
Questions Without Notice were interrupted by THE HON.
DEPUTY SPEAKER in terms of Standing Order Number 64.
MINISTERIAL STATEMENT
RELEASE OF SUSPECTS BY SENIOR MEMBERS OF THE
EXECUTIVE
THE MINISTER OF HOME AFFAIRS (HON. DR.
CHOMBO): Madam Speaker, on the 5th of October, Hon. E. Cross asked the Minister of Home Affairs an Oral Question to state if it is Government policy to allow senior members of the Executive to order release of suspects arrested on criminal charges, to also state whether the released persons were under the instruction of the Acting President; also to report whether any kind of force was used and to state whether any physical injuries to the police officers were sustained in the incident. I had promised to check and bring an answer to this august House. So, I do have the answer and I wish to go through it.
Section 56 of the Constitution of Zimbabwe, provides that all persons are equal before the law and have the right and equal protection and benefit of the law. In this context, therefore, no person is above the law and any person who has committed an offence must accordingly be dealt with in terms of the law.
Section 219 of the same Constitution provides for the police interalia to prevent and investigate crime. In enforcing the law, the police will do so without fear or favour. The Constitution as the Supreme law of the land provides the guiding principles in dealing with all matters including prevention and investigation of crime. It follows therefore that the Constitution of Zimbabwe has a policy framework on which all other matters must derive authority. It has never been and/or will ever be Government policy for any person regardless of status to interfere with police operations.
Item number 2 – the two persons referred to in this question were not arrested by the police. Police Avondale provided detention facilities, otherwise the suspects were arrested by the Zimbabwe Anti-Corruption Commission. As the Minister of Home Affairs, I can therefore not comment further on suspects who were arrested by another entity and not by the police. Police fall under Home Affairs, Anti-Corruption Commission does not.
I wish also to further state that I do not know under whose instruction they were released and therefore, I have nothing to tell to this august House. I will also want to further state that the police at
Avondale or anywhere have not received any complaint from anybody about injuries or anything.
The other item that I think was referred to is the issue of Silobela Constituency in need of a police post. Currently, there are no funds available to build a police post in Silobela. Mr. Speaker Sir, I have now attended to the matter which was raised on the 5th of October by Hon.
Cross. Thank you.
HON. CROSS: Mr. Speaker I have raised this matter on three occasions in this House. The incident I referred to is one where the Vice President, Hon. Mphoko went to Avondale Police Station and instructed the Member in Charge to release two individuals who had been arrested by the Anti-Corruption Commission on the basis of allegations involving US$1,4 million taken from ZINARA. Now, if the Minister is not aware of this, then he is blind and ignorant or deaf or all of these. There is no way that I can accept his answer this afternoon.
I think Mr. Speaker Sir, this country deserves better. I am looking at the Minister of Justice, Legal and Parliamentary Affairs. Minister, how are we going to tolerate this kind of behaviour? I understand that in fact, the Vice President’s security details manhandled the Member in
Charge and that he was forced to release these two men into his custody.
The Vice President referred to these two men as ‘my friends’. When are we going to get on top of the scourge of corruption if we cannot tackle this in our very midst? – [HON. MEMBERS: Hear, hear.]-
HON. GONESE: On a point of order! In terms of procedure, this is a Ministerial Statement, it is no longer Question Time and that is my understanding. On a Ministerial Statement, Hon. Members make their observations, it is not a question and answer session. So, I believe that we have had Ministerial Statements before in this august House Mr.
Speaker, and you are also very aware because I know you have been a
Member of the Speaker’s panel for quite a long time. If it is a Ministerial Statement, all Hon. Members make their observations. It is not even questions; they make their observations and comments. It is almost like a debate. Only at the tail end when all the Members have exhausted, the Minister then responds. If there are supplementary observations and comments, they are then made. That is my point of order that in terms of procedure, let us not make this into a question and answer session. That is not the procedure.
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Can you resume your seat Hon. Minister. Hon. Gonese, this is a Ministerial Statement. Hon. Members may only seek clarification to what the Hon. Minister has already alluded to rather than a debate. So, you can only seek clarification where you are not clear from the
Minister. It is not a debate.
HON. GONESE: Maybe it is terminology. That is what they want to do; to seek clarification and the Minister can respond.
HON. MARIDADI: Hon. Minister, in your statement, you say those people were at Avondale Police Station because the police provided only facilities for their custody; they were not the arresting authority. Then you say, you do not know the circumstances under which they were released. What were you investigating if you were not investigating that? Again you say you do not know who gave authority for their release. Those should have been two major issues that your investigation should have found out. If you did not investigate that Hon. Minister, I think I can safely say you did a shoddy job and you must go back and re-investigate. Thank you.
HON. MLISWA: Thank you very much Mr. Speaker Sir. The
issue is an issue under which the Minister explained, he seems not to be sure and it involves a Vice President of the Republic of Zimbabwe, a high ranking official. This is the time when a Commission of Inquiry must be put in place to investigate the conduct of the Vice President. It is critical that the zero tolerance to corruption the President talks about must have no sacred cows in it.
I am glad that the Minister of Home Affairs clearly explained that the law enforcement agents do their job without fear or favour but there seems to be a selective application of the law. It is important for the credibility of this nation that the Minister of Home Affairs be honest with himself. If he has got insufficient answers, I think he should research from the Commissioner General who is responsible for the operations of the police. He seems not to be sure on what went on. As a result, a Commission of Inquiry into the conduct of the Vice President must be set up. Thank you.
HON. ZVIDZAI: Mr. Speaker, thank you very much for this opportunity. The Minister’s response has got so many ‘I do not know, I do not seem to care and I am not interested,’ effectively trivialising what the general populace of this country thinks is a very important issue for the purposes of building confidence in this nation and ensuring that we have got clear policy. My worry is that the Minister seems to trivialise issues that are very important to us and I do not think it is very acceptable for the Minister to do that. Thank you.
HON. GABBUZA: Mr. Speaker, from the Minister’s explanation,
he confirms that there was an arrest by the Zimbabwe Anti-Corruption Commission of those two particular members. The Minister further says he cannot be held answerable to issues that were done by ZACC. My question therefore is, can the Minister further explain if the Zimbabwe Anti-Corruption Commission has arresting powers. If it does not, who then should order the police to arrest whoever the commission would have found to be guilty or reasonably suspected of having committed a crime?
THE TEMPORARY SPEAKER: Hon. Gonese, you have
already contributed.
HON. GONESE: It was a point of order.
THE TEMPORARY SPEAKER: Order, order. You were the
first person who started this …
HON. GONESE: With due respect Mr. Speaker Sir, mine was a
point of order. I did not make any contribution on the substance, I did not speak on the merits of the matter. It was simply on a question of procedure. That is all I did Mr. Speaker if you refresh your memory.
Now I want to seek clarification on matters of substance.
THE TEMPORARY SPEAKER: To the point please.
HON. GONESE: Yes I will stick to the point. Thank you Mr. Speaker Sir. The point which I need clarification on Mr. Speaker, relates to the fact that the Zimbabwe Anti-Corruption Commission is established in terms of our Constitution. Chapter 13 is very clear that the functions of the Commission among other things have got the power to investigate crime and so on but they are also mandated with powers to give directive to the Commissioner General of Police.
In terms of the Constitution, the Commissioner General of Police is obliged and I will read the appropriate section which says the Commissioner General of Police must comply with any directive given to him or her by the ZACC – [HON. MEMBERS: Hear, hear.] – I believe that in circumstances where the ZACC is investigating a case and they have asked accused persons to be placed in detention, that to me amounts to that direction for the Commissioner General through the various police officers at the various police stations to comply with those directives.
My concern Mr. Speaker is that the response of the Minister was wish-wash. It is not quite clear what he is trying to tell us. When he is trying to tell us that the ZACC does not fall under his Ministry, to me that does not hold any water. By virtue of the fact that the ZACC was investigating a case and they had two persons placed in cells which are handled or controlled, to me amounts to the direction which is provided for by the Constitution. I want the Minister to clarify why the police did not proceed to ensure that these two persons who had been arrested after investigations had been completed by ZACC were not brought to the courts. That is our concern. It would appear as if there was interference and that interference is what is of great concern to Members of this august House, particularly in a situation where the whole nation is worried about corruption.
*HON. MATAMBANADZO: I want to give a supplementary
question. Thank you Mr. Speaker. If you can observe Mr. Speaker, that ten Members from the opposition have spoken and a single ZANU PF Member has rose because they are raising non-existent issues. They should not stop me from raising my issues before you have heard me.
Listen to what I am going to say. Do not prejudge the issues. – [AN
HON. MEMBER: Inaudible interjection.]-
THE TEMPORARY SPEAKER: Order Hon. Mliswa, let us hear
him in silence.
*HON. MATAMBANADZO: Mr. Speaker Sir, it is evident that
Hon. Mliswa has been arrested 70 times. He was being acquitted because he had lawyers...
HON. MLISWA: I was acquitted over 70 times. HuGrade 2 hwako noku...
THE TEMPORARY SPEAKER: Order Hon. Mliswa, I have
not recognised you. Take a seat Hon. Mliswa, let us behave please. If this happens again for the second time, do not blame me if I ask you to go outside.
HON. MARIDARI: My point of order is that we are seeking
clarification from the Minister on the statement that he has been pleased to deliver to this House. I think it is incumbent upon the Minister to give responses and not anybody else. I think the Hon. Member is out of order because he is responding on behalf of the Minister and I do not think it is proper.
THE TEMPORARY SPEAKER: Hon. Member, he is free to
debate like I have given you the chance to debate. Hon. Matambanadzo, please proceed.
*HON. MATAMBANADZO: Thank you Mr. Speaker Sir. I am
not protecting a person but I am saying the truth. The truth of the matter is that a person should not suffer or be hurt. The issue of Hon. Minister
Moyo has not yet been concluded. Furthermore, the Minister says that he does not understand what has happened because the matter is subjudice. Hon. Mliswa stole some cattle, tractors and emerged victorious, but the truth of the matter is that he was committing these offences, but because of his good legal team, he was acquitted. He committed his offences in broad daylight.
THE TEMPORARY SPEAKER: Order Hon. Members. Can we
respect this House please?
*HON. MURAI: Thank you Hon. Speaker. I want to say the Hon.
Member is lost because of the subject matter that is under debate. He is bringing a new issue altogether. Thank you.
+HON. K. SIBANDA: I would want to ask the Minister of Home
Affairs if he says that if everyone is guilty, they should be arrested. Are there others that should not appear to answer their charges whilst they are coming from home? That is what I want to find out.
THE TEMPORARY SPEAKER: Order, let us hear the Hon.
Minister in silence Hon. Members. Order please!
THE MINISTER OF HOME AFFAIRS (HON. DR.
CHOMBO): Thank you very much Mr. Speaker. The (ZRP) Zimbabwe
Republic Police, is a wonderful police force, well respected in the region, well trained and as their Minister, I am proud of them. In this particular matter, the police were not involved. They only assisted in providing a holding cell. Secondly, the issues that happen to the persons that were arrested, were the matters that ZACC should be able to answer because ZACC is no longer in the Ministry of Home Affairs. It is resident elsewhere.
I also wish to say that ZRP does not respond to issues that are raised in the papers. They rise to issues that are submitted to them with reasonable grounds that a crime was committed. Finally, the other issues that Hon. Members from across raised, I am not able to answer some of the issues now as to whether ZACC has arresting powers or not. I am going to further investigate and come back and report to this august
House. Thank you.
THE TEMPORARY SPEAKER: The matter is not closed. The
Minister says he is still going to investigate.
HON. CROSS: When will he come back to us Mr. Speaker? Can we have a date?
HON. DR. CHOMBO: Mr. Speaker, I will liaise with you and sometime early next year, I will come back and give further information on this matter. Before I even come here, I will meet with the gentleman and inform him that I am coming to Parliament to address that matter.
ORAL ANSWERS TO QUESTIONS WITH NOTICE
PRE-PAID ELECTRICITY METERS
- HON. CROSS asked the Minister of Energy and Power Development to inform the House:
- How many pre-paid electricity meters have been installed in homes and business premises throughout Zimbabwe ever since the programme began?
- To detail how many prepaid meters have malfunctioned
since installation and what ZESA is doing to repair or replace such meters and when the programme would commence?
- To detail the guarantee that was issued by the manufacturer or supplier and to state whether those obligations are being met, and if not, to explain why that is the case.
THE MINISTER OF ENERGY AND POWER
DEVELOPMENT (HON. DR. UNDENGE): Mr. Speaker Sir,
failure rate has been within acceptable industrial standards, except for meters supplied by ZTE that exhibited high failure rate. ZTE contract was cancelled as a result of high failure rate. The total number of meters that failed to date is around 6,000 which translates to 1% of the installed base. So, because of meter shortages, it has taken long to replace some of the meters failing at site, but there is a plan to replace all fault meters as soon as the next delivery of meters is received. This is the answer to question
(b).
The first part which asks on how many meters have been
installed to date - 575 667 meters have been installed. The other part of Question 1, manufacturers through the local agents have an obligation to replace meters failing within the warrant period. The warrant period was extended to 36 months from the standard 12 months at ZETDC’s request. Manufacturers have also offered meters at no additional cost to replace those failing at site after expiring of warrant. Most of the failures are to do with exposure to harsh environmental conditions, especially rain. ZETDC has improved the technical specification to ensure meters are of higher Ingress Protection rating and hence more resistant to harsh environmental conditions. I thank you.
RESTORATION OF POWER AT DOMBORUTINHIRA BUSINESS
CENTRE IN MUTASA DISTRICT
- HON. SARUWAKA asked the Minister of Energy and Power Development to inform the House when the Ministry would restore power at Domborutinhira Business Centre in Ward 19 of Mutasa District where the transformer was struck by lightning in February 2015, thereby affecting the business operations, especially the butcheries and bottle stores.
THE MINISTER OF ENERGY AND POWER
DEVELOPMENT (HON. DR. UNDENGE): Mr. Speaker Sir, it is my
pleasure to give a response to the important question raised by Hon. Saruwaka. There has been a shortage of distribution transformers, many of which have been damaged due to vandalism hence the delay in replacing the Domborutinhira Business Centre transformer. The transformer to Domborutinhira Business Centre a 50kVA11/0.4 kV was availed to Mutare environs and installed. I am pleased to inform the Hon. Member that the transformer was connected and customers are enjoying ZESA power. I thank you.
HON. SARUWAKA: I want to take the opportunity to thank the Minister for restoring power to the Domborutunhira community. We thank you Hon. Minister and that this is coming from Mutasa Central.
HON. ZVIDZAI: My supplementary question to the Minister is whether it is cost effective for the Ministry to be looking at things like burnt transformers in all the local authorities in this country. I want to know why his Ministry is not pursuing a relationship with local authorities who are closer to where things are happening. Obviously, if he did that, I see a possibility of efficiency in terms of corrective measures and delivery of services.
HON. DR. UNDENGE: I assume the reason why the Hon. Member has talked about local authorities is because local authorities have presence everywhere in the country. That is the assumption I am working from. Having made that assumption, ZETDC is present in all these areas. In all areas under local authority jurisdictions, ZESA has offices there. We have depot managers there and deport staff. They can easily attend to such problems. Let me also add that local authorities do not have electricity departments, neither do they have personnel qualified to replace transformers. It is not their core business, it is outside their mandate. We will as a Ministry act speedily to rectify any electricity problem in rural areas subject to where we have shortages of transformers but the moment we receive transformers, we move to ensure that the problems are rectified.
ZESA’s mandate is to ensure that no one lives in darkness. I think we have lived up to that, as testified by the Hon. Saruwaka who is thanking ZESA and the Ministry for doing its job. I thank you.
CONNECTION OF ELECTRICITY TO MBUMA MISSION IN
NKAYI DISTRICT
- HON BHEBHE asked the Minister of Energy and Power
Development to inform the House;
- Why the Zimbabwe Electricity Supply Authority (ZESA) has not connected power Supplies to Mbuma Mission in the Nkayi District in view of the fact that the power lines were constructed more than five and a half years back.
- Why the power line poles to Mbuma Hospital which fell more than four years back have not been attended to despite the fact that the authorities have been informed of the incident.
THE MINISTER OF ENERGY AND POWER
DEVELOPMENT (HON. DR. UNDENGE): Thank you Mr. Speaker.
(a) The Mbuma Mission Hospital was energised on the 13th November, 2016. We are currently receiving and processing applications for connections.
(b)The line failed just about the same time when the feeder to Insuza (Siganda) failed due to copper theft and vandalism. Priority was to get the Insuza line up first due to its strategic position in terms of national security by way of the telecoms traffic between Matabeleland North and the rest of the country. When we finished the Insuza line, we then discovered that there was further vandalism on the Mbuma line and we needed a huge injection of resources to get the line up again. Line re-construction works were eventually completed and line the energised on 13th November, 2016.
Mr. Speaker Sir, I would like to take this opportunity to urge Hon. Members to go and spread the message in their constituencies that people should stop vandalising ZESA infrastructure. They should stop stealing cable lines, oil transformers and so on because Hon. Members come to Parliament to ask ZESA to go and restore what people in your constituencies would have destroyed or vandalised.
HON. BHEBHE: Thank you Mr. Speaker Sir. The information given by the Minister is not very accurate because I personally, as the Member of Parliament went and spoke to ZESA. ZESA told me a completely different statement from the statement that the Minister is giving. On the first part of the question, ZESA told me that they have contracted a private company to deal with the line, not that there was vandalism. The poles leading towards Mbuma fell because of the rains.
On the second part, the power lines that were used to Mbuma were not copper power lines, they were not vandalised. Mr. Speaker Sir, I have personally visited Mbuma Mission, at one point in the presence of the Minister of Health and Child Care. The Minister has said that the line was energised, the line to Mbuma was not energised, the line could have been energised to Siganda, not to Mbuma. As we speak right now, the poles leading to Mbuma are still lying down. So, I do not know where the Minister is getting that information from which is not accurate.
HON. DR. UNDENGE: I do not think Hon. Bhebhe was listening carefully to my speech. He is saying that the line was energised up to
Siganda, this is what I read out in my response here. I mentioned the Insuza (Siganda), so he was not listening, he was busy talking to someone when I was reading out my response.
After presentation of my response, I then went on in general terms to urge Hon. Members here to go back to the constituencies and tell people not to vandalise ZESA infrastructure, for example items like cables, transformers and oil. Then he assumed that I was referring to Mbuma Mission line. So, he was not listening carefully to my speech.
All what you are saying, I addressed that, the answers are present here.
Mr. Speaker Sir, the issue is being attended to. I have supplied an adequate answer. I thank you.
HON. BHEBHE: Mr. Speaker, I do not think vandalism and poles falling down can cause me to mistakenly think that the Minister has given me the answer. He is speaking of vandalism, that the lines was vandalised; I am speaking of the poles that fell down and those poles have been down for more than four years, Hon. Minister. So therefore, I want an answer as to why ZESA is not doing their job by attending to those poles that are lying down - that is point number one. The reason why ZESA has not been connected at Mbuma, it is because of the poles that are lying down that have not been attended to.
When I went to ZESA, ZESA promised and told me that those lines are being attended to by a private company. I am not sure whether that private company might be one of those companies that are accessing money from ZESA without doing their job.
HON. DR. UNDENGE: Mr. Speaker, I think the Hon. Member is going in circles and being pedantic. I said ZESA is responding to the problem. They have acknowledged that. Vandalism – I talked about it in general terms after I completed answering the question. I was now urging members to ensure that they should not vandalise ZESA infrastructure after completing my response to his question, but he is going back to take what is outside the answer and saying vandalism does not affect that.
Yes, I agree with you, there is no vandalism there. I spoke about vandalism with respect to urging members here, when they go back to ensure that the public protects ZESA infrastructure. What is pertinent here is for the problem to be attended to and ZESA is attending to that problem.
HON. BHEBHE: I have another supplementary question.
THE TEMPORARY SPEAKER: What is your issue again
Honourable? I think the Minister is trying to be quite clear that he has actually answered your supplementary question. The two things that he is addressing are totally different - the poles that are down and vandalism are totally different. According to what he is saying and according to his answer, he has actually answered your question, but I think, like he is rightly saying that you were busy discussing, but anyway, I will give you the privilege of asking the last time.
HON. BHEBHE: Mr. Speaker, let us go to the second part of my question, which is what I am saying that part to me, is not answered adequately. My second part is very clear. It is pointing out the poles that have been lying down for four years. I have personally gone to ZESA and nothing is happening. I want to know from the Minister why for four years they have not done anything. Why are they not doing anything now when the hospital is servicing not only Nkayi district, it is actually servicing part of Gokwe, part of Bubi district and part of Lupane?
So, people are suffering. That hospital is running generators 24 hours a day for four years, but the Minister keeps on saying they are still fixing it for four years.
HON. DR. UNDENGE: Mr. Speaker Sir, I think the Hon. Member should thank me because we are doing something now. He is talking about four years ago when I was not even Minister of Energy and Power Development. Now that I am there, I am sorting out the problem so I am expecting a pam pam from you. I thank you.
HON. CHIMANIKIRE: Supplementary question.
THE TEMPORARY SPEAKER: No more supplementary
questions. This has taken quite a lot of time. We need to move.
HON. CHIMANIKIRE: No, Mr. Speaker. On a point of order, Mr. Speaker Sir. This question was in writing. It is in writing therefore, the Minister should have sought an answer from ZESA, not to come here and tell the House that he does not have an answer when the question was in writing and it has been on the Order Paper for some weeks. So, to be told if the House is going to be misled by being told that …
THE TEMPORARY SPEAKER: What is your issue Hon.
Chimanikire?
HON. CHIMANIKIRE: No, the question is in writing. How come he does not have the answer? He is doing something. What is he doing? There must be accountability. This House wants accountability and we must have accountability.
THE TEMPORARY SPEAKER: Okay noted.
ELECTRIFICATION OF THE HLALANI KUHLE HOUSES IN DETE
- HON. MKANDLA asked the Minister of Energy and Power Development to inform the House when the Ministry is going to electrify the Hlalani Kuhle houses in Dete under Hwange Rural District
Council.
THE MINISTER OF ENERGY AND POWER
DEVELOPMENT (HON. DR. UNDENGE): At Dete town we are
currently on Mtuya. Hlalani Kuhle area is still at planning stage and it is pegged to be implemented on the third quarter of 2017.
The major challenge is the current rate of vandalism of the network. We are having to plough huge amounts of resources to reconstruct vandalised lines, such that there is little left to use for new areas. It will therefore take long for ZETDC to complete the residential reticulations.
Again Mr. Speaker, the issue of vandalism actually takes us back. Where we are due to do certain work or complete certain projects, we have to divert resources to go and repair what has been damaged. That is why earlier on I mentioned that SOS message that where we live, as Hon. Members of Parliament, we should urge the public not to vandalise ZESA infrastructure.
HON. ZVIDZAI: The Minister seems to consistently think that it is the communities that go up those highly energised power-lines to steal copper etcetera. Has the Minister done thorough research that he can believe that it is the communities or could it be related to people with technical knowledge on how to handle electricity, namely the people at ZESA themselves? From your research, is it the communities or it could point towards the direction of ZESA employees?
HON. DR. UNDENGE: Mr. Speaker Sir, I think this does not require much research. It is common knowledge that we have abundant colleges in this country where electricians are trained at universities, technical colleges, vocational schools and all these are not employees of ZESA. They are just people with technical know how about electricity and they can go and dismantle a transformer. They are trained to do so. That is why in my intervention I used the word that we should urge members of the public to ensure that knowledge is spread and to be policemen, police the infrastructure. If you see anyone stealing, be it from ZESA, be it from the public, then that person should be apprehended, I thank you Mr. Speaker.
*HON. MKANDALA: Supplementary question. Mr. Speaker the Minister has not answered my question. I asked the question when Hlalani Kuhle is going to be electrified. The Minister is referring to how it is made of thatched houses. In 2004, ZESA actually put some lines and brought poles to Hwange. Why was Hlalani Kuhle not electrified then? I thank you Mr. Speaker.
HON. DR. UNDENGE: Mr. Speaker I get the message, the essence of what she has said. I think the Hon. Member wants this Hlalani Kuhle area to be electrified most probably tomorrow, but there is this programme of events. All I can promise according to the schedule which is here, if they can speed up. I will make that intervention.
Perhaps I will leave it at that stage. I thank you.
*HON. PHIRI: Thank you Mr. Speaker Sir. My question is, is he aware that at the moment ZESA is working with skeleton staff. The majority of the workers have been fired from ZESA hence the delays in implementing some of the duties that should have been done timeously. What is being done to ensure that the issue of workers is attended to? I thank you.
THE MINISTER OF ENERGY AND POWER
DEVELOPMENT (HON. DR. UNDENGE): Mr. Speaker Sir, most
people who comment and talk to us say ZESA is a blotted organisation and its staff rate is very high. He is the first person to come and tell me that we actually have a skeleton staff in ZESA. Perhaps to respond to his question, ZESA is present everywhere and whenever there is a fault, they respond speedily. We have depot managers across all districts, provinces including here in urban areas. The issue of shortage of staff does not affect us and does not exist. I think perhaps the Hon. Member; we can give you, if you visit our office, the schedule of where the various offices are. Things are not affected or compromised by shortage of staff. We have highly qualified young men who are eager to do the work. I thank you.
*HON. PHIRI: Where I come from, I have visited ZESA offices several times and enquired from depot managers what the problems were when people had raised their concerns. ZESA said that they have contract workers; their permanent staff is very few. The majority of their workers are contract workers who hold 5 O’ levels and are exschool levers. They feel that they engage people to carry out the duties and are paid two months down the line. I know it is the practice in Kadoma Central. ZESA has retrenched a lot of workers and now has skeleton staff. I request the Minister to go back and find out the strength of the workers in ZESA. I would be vindicated that there are very few permanent workers. I thank you.
HON. DR. UNDENGE: I would like to not hold to what the Hon.
Member is saying and perhaps say that I did go to a business school. Sometimes as an organisation, you must confine yourself to your core business and outsource certain activities, related activities. I am aware that when it comes to clearing of way leaves, ZESA subcontracts to other people and there are certain pieces of jobs which it subcontracts so that it remains with its core business. That is allowed and it is standard business practice. It does not mean to say if you are a business and you are in a certain sector, your staff should do everything. There are certain areas whereby it becomes more economic and it becomes cheaper to engage a contractor and to subcontract. However, I am willing that you visit my office so that we can discuss that further. I thank you.
WRITTEN SUBMISSIONS TO QUESTIONS WITH NOTICE
NIGHT PATROL VEHICLES FOR THE ZIMBABWE REPUBLIC
POLICE (ZRP)
- MASUKU asked the Minister of Home Affairs to inform the House whether the Zimbabwe Republic Police (ZRP) have night patrol vehicles.
THE MINISTER OF HOME AFFAIRS (HON. DR.
CHOMBO): The police conduct both motorized and foot patrols to effectively police the community more-so during the night, to curb various offences which are committed under the cover of darkness. It is however, a common fact that the ZRP is operating with inadequate resources. Consideration should be made to boost the depleted police
fleet.
MEASURES TO CURB THE RAMPANT USE OF MACHETES IN
THE MIDLANDS PROVINCE
- HON M.M. MPOFU asked the Minister of Home Affairs what the Government is doing to curb the rampant use of machetes which has resulted in rising murder and assault cases in mining areas in the Midlands Province, especially in Silobela and Kwekwe.
THE MINISTER OF HOME AFFAIRS (HON. DR.
CHOMBO): The ZRP has since stepped up its deployments in all areas which were identified to be areas of conflict. A prohibition order banning the carrying of dangerous weapons which includes machetes was published covering the period 10 October 2016 to 27 January 2017. Stop and searches are being conducted to arrest those found carrying such prohibited/dangerous weapons. A number of arrests have been made to date. An observation was made that most of these disputes emanate from ownership of claims, therefore awareness campaigns targeting artisanal miners are being conducted to dissuade them from engaging in illicit mining and to ensure that they register their claims. They are also being urged to seek lawful recourse when embroiled in disputes. Efforts to bring the disputing parties together are ongoing so that they co-exist amicably within the dictates of the law. Raids are also being conducted on beer outlets to ensure that beer outlets operate within stipulated times and to deter patrons from unlawful behaviour.
PAYMENT OF PROTECTION FEES BY COMMUTER OMNIBUS
DRIVERS TO TRAFFIC OFFICERS
- HON. CHITURA asked the Minister of Home Affairs whether he is aware that commuter omnibus drivers are now paying protection fees to the traffic officers in order to avert spot fines.
THE MINISTER OF HOME AFFAIRS (HON. DR.
CHOMBO): The Zimbabwe Republic Police is on record that it has zero tolerance to corruption and has always urged members of the public, including the Honourable Member to report any such acts immediately. The Police has mechanisms in place to account for corrupt police officers and members of the public alike. Acts of corruption must be reported to the local Officer in Charge, Officer Commanding District/Province or the National Office. Members of the public should pay stipulated fines and desist from offering bribes to police officers. Members of the public who offer bribes and police officers who accept such bribes are both committing a crime and will be dealt with accordingly. The police has always dealt decisively with members who involve themselves in corrupt activities as evidenced by the number of officers who are arrested, prosecuted and discharged from the force.
MECHANISMS IN PLACE TO PAY FARMERS ON SUBMISSION
OF WRONG BANKING DETAILS
- MAHIYA asked the Minister of Agriculture, Mechanisation and Irrigation Development to explain to the House the mechanisms put in place to alert the farmers in the event that the Grain Marketing Board discovers that some farmers would have submitted wrong or inadequate banking details for the payment of their deliveries to be affected.
THE MINISTER OF AGRICULTURE, MECHANISATION
AND IRRIGATION DEVELOPMENT (HON. DR. MADE):
Honourable Member, in instances when farmers have provided wrong or inadequate banking details for payment of their grain deliveries, the payment does not go through and the Grain Marketing Board contacts the respective farmers to obtain the correct details.
DESILTING EQUIPMENT FOR CHITINHA IRRIGATION
FARMERS IN CHIMANIMANI WARD 8
- CHIKUNI asked the Minister of Agriculture,
Mechnisation and Irrigation Development to inform the House when the Ministry would help Chitinha Irrigation farmers in Chimanimani Ward 8 with desilting equipment (excavators and graders).
THE MINISTER OF AGRICULTURE, MECHANISATION
AND IRRIGATION DEVELOPMENT (HON. DR. MADE):
Honourble Member, desilting of water sources is not the mandate of my Ministry. The question should be directed to the Minister of Environment, Climate and Water.
Questions with Notice were interrupted by THE TEMPORARY SPEAKER in terms of Standing Order No. 64.
On the motion of THE MINISTER OF AGRICULTURE,
MECHANISATION AND IRRIGATION DEVELOMENT (HON.
- MADE), the House adjourned at Three Minutes past Five O’ Clock p.m.
PARLIAMENT OF ZIMBABWE
Wednesday, 21st December, 2016
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. SPEAKER in the Chair)
ANNOUNCEMENT BY THE HON. SPEAKER
POST-BUDGET SEMINAR
THE HON. SPEAKER: I have to inform the House that a post-budget seminar will be held for Members of the National Assembly on Monday the 16th of January, 2017. – [HON.
MEMBERS: Inaudible interjections.] – Order, it is 16th January, 2017 at Sango Conference Centre, Cresta Lodge in Harare. The seminar is starting from 0830 hours. All Hon. Members are urged to attend.
ORAL ANSWERS TO QUESTIONS WITHOUT NOTICE
HON. HOLDER: Thank you Mr. Speaker. My question is directed to the Minister of Primary and Secondary Education, Hon.
Dr. Dokora. Could he please explain to this House the policy which he has put in place regarding enrolment of students from grade seven to form one, the online e-registration. Apparently, there are a lot of problems where children are failing to get positions. If he could clarify that to us so that we could really understand. We are having problems in the rural areas.
THE MINISTER OF PRIMARY AND SECONDARY EDUCATION (HON. DR. DOKORA): Thank you Mr. Speaker
and I thank the Hon. Member for raising the question… THE HON. SPEAKER: Order, order! A question has been asked
and I think it is a question of general interest, can you listen very carefully please.
HON. DR. DOKORA: Thank you Mr. Speaker and I thank the Hon. Member for raising that question, seeking clarification on the online e-registration. Mr. Speaker, you will recall that I came to the House and issued a ministerial statement which followed an earlier statement we had made in the public domain. In that Ministerial Statement which we delivered on the floor of the House –
[HON. MLISWA and HON. CHIBAYA: Inaudible interjections.]- THE HON. SPEAKER: Hon. Mliswa and Hon. Chibaya
please.
HON. DR. DOKORA: We did explain the progressive
developments that had taken place in education especially in relation to the fact that we were moving away from a manual system of examination registration; even at the Grade 7 level. We are on record as having indicated that when we started to say Grade 6 learners can go on the examination candidate register of ZIMSEC by paying US$1 per term as contribution towards the examination fees at that level, it meant they were immediately available to go on the eregister which we have succeeded in creating 3 years ago.
Secondly, we developed a module, which carries the kind of information which I shared with the House again when I last spoke on this floor, which enables us to know on a week by week basis as to the performance of the system. We call this the EMIS database, (Educational Management and Information System). We also have developed a database on the teacher component of our system, the Teacher Development Information System (TDIS). So, these three modules speak to each other to provide us with current information on how the system is performing. The step that we have now taken is to say there are two ways you proceed into Form 1 or indeed into Form 5. The manual system which is where a young person or family walks into a school and says I live within the catchment area within the zone and they are able to go on to that enrolment register of that school.
This does not preclude any child within that zone from being enrolled because that is their nearest school and they are entitled in terms of the provisions in the Constitution and elsewhere to be provided with basic education in that locality. We then did say that we have quantified the number of places that are available for boarding learners. This is the number that I shared with the House at the time, which is, 24 000 places. Now, you must then look at 24 000 places and say how many of our people want their children to be in boarding? Quite clearly they are much more than 24 000 and the Grade 7 stream that is going into Form 1 was 329 549 learners, which means less than 7% of the Grade 7 pupils would be accommodated in boarding school.
Now, what are the pressures that school heads confront when they try to fit the volume of candidates who wish to be in boarding and how can we use our ICT to mediate in that process? This is why we then instituted the e-registration for Form 1. Therefore, you would understand from what I have just said that it is e-registration for those who are interested in going into boarding but only if you live away from the school that you are interested in. Otherwise you walk into your local school and express your interest either in the boarding facility or day school facility.
How has the system performed, there was a glitch at the beginning. That is a given, because we put the system live on Friday the 9th of December evening and we put out the advert on Saturday and Sunday. Then there was a glitch on Monday that followed. That has since been rectified. From any location and information centre and we had a beautiful launch of an information centre in Chikato in Masvingo recently and there are several others in different districts where you can walk in and do this. You can also access the application on a tablet and cell phone at the touch of a few keys on your phone.
How has the system behaved to date? This is how it has behaved. So far 63% of those that have accessed boarding places have gone through online. There are still some vacancies and we are issuing a press release and I can just highlight some of the schools that still have vacancies. The pressure was greatest in school like
Goromonzi, Rusununguko, Anderson in the Midlands and so on. At Goromonzi a total of 1085 students applied to get in there and they only have 105 places and so you have these kinds of huge numbers, at St. Faith for instance, we have over 850 candidates and all they have is 120 places and so on.
So, each school then set up an Admissions Committee so that they could go through the list that has expressed interest in the particular school. They would take into account, if it is a mission school, matters to do with the responsible authority requests and so on and then the performance scores of the young learners who wish to go into that school. So 63% have been allocated spaces and then about 3 000 or so are still pending. In other words, there are still vacancies for about 3 000. I have asked my colleagues at the Ministry to provide me with the actual details and I might just be able to give that before the end of Question Time here.
The schools that still have openings are the schools that you see when you go online and these are, in Manicaland for instances; St.
Killian’s, Regina Coeli, Makumbe High, St. Patricks, Biriiri,
Nyakatsapa, Chikore, Gedion Mhlanga. In Mashonaland Central;
Mavhuradonha High, Chinduduma 2, St. Phillips, Amai Mugabe
High, Mary Mount Mission High, Nyamatikiti High, Mushumbi
Government High and then of course let me look at Matebeleland North; Marist Brothers, Inyathi, Tsholotsho High, Binga Government
High, St. James High, David Livingstone High; in Midlands; Chaplin, Pakame, Nashville, Bulawayo itself, Milton, Townsend, Northly Eastview et cetera.
Some of the schools in Bulawayo received mere four or five prospective candidates so there are places there. I thank you, Hon.
Speaker.
HON. MLISWA: On a point of order Mr. Speaker Sir.
THE HON. SPEAKER: What is your point of order?
HON. MLISWA: My point of order is that he was going to
advertise all this so, there was no point for him going through the entire list. I thank you Mr. Speaker.
THE HON. SPEAKER: You do not interrupt an answer; you can then follow up with supplementary questions as you comment. I thank you.
HON. SITHOLE: Thank you Mr. Speaker. My
supplementary question is regarding to the Electronic Ministerial Application Platform which is being used by the Ministry. In terms of the ownership of the software, we have heard reports of issues being raised by Purple Design Technology Company regarding the ownership. We would want to know from the Minister if we are using a legal software which they have designed as a Ministry or it has been pirated? Thank you.
HON. DR. DOKORA: The moment you say, you have been
hearing these matters and that these matters are in the courts, then we allow the courts to make their determinations there. Thank you.
HON. D. SIBANDA: Is it in the courts?
THE HON. SPEAKER: Yes, the matter is in the courts.
*HON. NYAMUPINGA: Thank you Mr. Speaker. We want
to thank the Minister for this e-selection. I want to thank this system because of corruption. The school that has been cited by the
Minister, like Goromonzi, our children from Goromonzi could not get access to that school. But what I want to ask the Minister is, those who could not get places and could not register on time, how are they going to get places and those who do not have access on line, is there a system in place that children who are far away in remote areas can also be registered on line?
*THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): What I want to say is that
if a child’s name is registered on line, it is now available for the committee to select that child despite the status of their parents. What will only be there is for the parent to be able to pay the boarding fees.
Those who have challenges in getting on line, we have an example of cluster centres. We have 1 313 cluster centres. All those are connected to the mainstream which connects to the Ministry, which means that each and every school is in a cluster. It can leave its homestead and go on a cluster so that it can be connected to a cluster. The other route is that from a cluster, they can be given the list of applicants, then they work with a printed copy of applicants in choosing the children that they want. The third plan is that children go to a school and they show interest in that school but that is what we did not want. We wanted to phase that out because it is expensive for parents to move from school to school looking for places because once they do that, it means by the time they get places they would have wasted a lot of money in travelling. So, those children who are disadvantaged have their places, the few places that are there which they can get.
*HON. MAONDERA: Thank you Hon. Minister. My
question is, you bring such good things, but do you take time to ask parents who are the major players because we have seen that even when it is the issue of the National School’s Pledge, you did not give them time and this time, parents are crying because they are the owners of these things, but you do not consult them so that they are enlightened on these issues – [HON. MEMBERS: Inaudible
interjections.] –
THE HON. SPEAKER: Order, order, order! It is for the Chair to determine the relevance of the question and not anyone else from the floor.
*HON. DR. DOKORA: I want to enlighten him on the works that the Government is engaged in. When we started the curriculum reform, I came to this House and presented the curriculum reform and I understand he was there. The Hansard is my witness. It is recorded in the Hansard. When they say the National School’s Pledge in the curriculum reform, it is there. If he really wanted to be engaged in this, when we went out to conduct an outreach programme on this issue, we went to all the places in this country. There are about 1 000 000 people who gave their suggestions on the curriculum review and now, we are at an advanced stage because we cannot go back.
Now, what I am saying is that in January, we are starting a new syllabus. What I am challenged with is that I am looking at teachers who are competent in ICT and can take sport disciplines, mathematics and science. That is my challenge right now. Thank you.
*HON. MAHOKA: Thank you Mr. Speaker. My question is directed to the Minister. What is Government policy on children in boarding schools? All boarding schools want four units. So, I do not know what is going to happen to those who cannot attain the four units. Also the issue of boarding schools - we have very few boarding schools but we have so many primary schools. I do not know, are you looking into that? Do you have any plans that all our children should not end up as cattle herders? I do not know what the Government says about four units.
*THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): I want to thank you Mr.
Speaker for the question…
THE HON. SPEAKER: Hon. Members, you represent the people. You must understand Government policy no matter which political party because it is Government policy which you are obligated to explain to the people. That is why you are here. So, I want you, Hon. Members to listen carefully and interrogate the Minister thereafter if need be.
*HON. DR. DOKORA: Thank you Mr. Speaker and I want to thank the Hon. Member who wants to know the Government’s policy
on children’s education. Firstly, when I came into this House, I said that we have percentage pass rates which we are alluding to and I said that the girls did much better than the boys in the last examinations. I also alluded to the fact that those we say were able to attain credits; it does not mean they are the only ones who go for Form One but all of them. I said that Grade Seven is like a litmus test paper so that we can measure intelligence of the students in terms of numerical, languages and general knowledge. However, we want all pupils to proceed to Form One.
Twenty-four pupils are the ones who can acquire boarding places but 305 000 are day scholars. So, all the students are proceeding to Form One. This is the largest volume of children getting into Form One because it is a measure of success on our policy that there is no child who is not allowed to proceed to Form One even if parents are complaining about school fees. We want these children to continue. Many of them have survived and that is why we have these figures. At the same time, I also said there are about 4500 students who were married or impregnated. We will meet them through non-formal education policy. Thank you.
*HON. NDUNA: Thank you Minister for the answer that you have given. In the constituencies that we come from, there are children who have 15 units and some who have 28 units who cannot get places into secondary schools. It is not only one school but many schools. So, if they cannot get access, what should we do as parents? Should we come to you so that you give us letters urging schools to take these children? Right now children are at home because they have more units and are not getting access to Form One places. This is because they are not competent enough and cannot get four units. *THE HON. SPEAKER: Order, order. I think the Minister has articulated very well on that one – [HON. MEMBERS:
Inaudible interjections.] – Hon. Muderedzwa, order!
*HON. M. S. MUCHENJE: My question is directed to the Minister of Primary and Secondary Education, Hon. Dr. Dokora. When Form One students are being registered, there is a challenge that parents are being urged to pay for school fees and uniforms. Those who have passed are the ones who get places. Some of the children who have passed cannot get places because they do not have money. Schools are now selling uniforms.
*HON. DR. DOKORA: Thank you Mr. Speaker. Let me
enlighten the House that as we sit down as a family, that our child now has to go for boarding, it is not an easy thing. This is because the child is now leaving the control of the parent and he/she is going to be a boarder under the control of the school. So, what schools look at is that all the children are in boarding and should be more or less the same so that their status would not differentiate them.
Therefore, if a child is at boarding and does not have a uniform, he/she will be stigmatized as they will not be the same as other children. It is a plea to you Hon. Members that you should understand that if a child is going to a boarding school, there are some implications. This means we have to pay the levy fees and money for school uniforms because we do not want them to be different from other children. In education we would say you have affected the concentration of the child.
*HON. M. S. MUCHENJE: My supplementary question is
that, parents are looking for places and schools are demanding money for uniforms. At the banks, there is no cash so parents have to transfer school fees. Many people have not been paid yet. What we want to know is, can we go and tell parents that it is Government policy that if you are looking for a boarding place for your child you should have money ready before Christmas. Is this a new policy?
*HON. DR. DOKORA: Thank you Mr. Speaker. There is no
new policy that has been introduced that children should have their fees and uniforms paid for. All schools that offer boarding places have their own requirements. So for me to stand here and say they should let the children not to pay for the uniforms, what I would have done is just to stigmatise your child. Thank you.
+HON. P. D. SIBANDA: Has it become the Ministry’s policy
to introduce new and far-reaching measures into the education sector without having widely consulted the public?
*THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): I want to thank the Acting President who interpreted what the Hon. Member has said. I believe that with what we have been working on and the things that we have been moving with are things that are very important and we know that that is the way forward in the area of education. I think we have gone a long way, when we talked even with the Committee, giving us reports, that is where we get these policies. We get good facts from there and that will help us in developing our policies. This
House is not surprised that the challenges that we were faced with were very big. So, those challenges are the ones that we are trying to solve so that we implement the online and manual.
We do not want to go backwards on policy implementation. In other words, at times we do not use a lot of words to explain what is happening behind the scenes. We are however aware of some of these things, for example when we removed incentives for teachers that should we gather and ask whether we should remove them. Some will say it is good because they are benefiting but the poor will suffer. So, on some of the things we look whether the practice is educationally sound. So, we look at the interest of education so that we come up with good plans. I have faith that the Hon. Member once got into discussions with us concerning that issue.
*HON. PHIRI: My question is directed to the Minister of Primary and Secondary Education. You have spoken on the issue of zoning, I did not get a good response, those involved in zoning - are they boarders or there are boarders and day scholars as well. If a child has listed the schools that he or she prefers and he or she cannot get a place there, is there any room for that child to go back online to chose another school or she now has to go school by school looking for a place?
*THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): Thank you for the
question asked by Hon. Phiri. He wants to know whether children are eligible for schools in their locality despite those parents wanting the children to be boarders. He or she can go to a school which is in his or her zone. The other question is that if I do not get a place from those three choices; if the child cannot get a school from those schools, she also has a choice of looking for places at other schools but those which are now full, they are no longer on the choice list. You are only left with schools that have places and the number is about 3 000 to 4 000 places.
*HON. NDUNA: I need help from the Minister because
children are failing to get places in their zones even on those places which are not on the list because they have more points. What plans do you have to ensure that these schools take children who got 36 units but cannot get into those schools?
THE HON. SPEAKER: Order, order, I think the Chair is going to send out one or two Hon. Members now. Reduce your whispers please.
*HON. DR. DOKORA: On the issue of children who got 24
or 36 points and parents want these children to get boarding places. Let me explain it this way so that we can be on the same level. We did not give an instruction on selection criteria, even the schools that you choose, we did not tell them to scale them in terms of priority. We said just choose three schools. All the schools are the same. We did not rank them orderly because what we thought was that the admissions committee sit down and say that we are a missionary school. The church has got interests on that school and that should be taken into account. You can say this is a Government school, if the admissions committee have taken children - some start probably by taking girls, some look at Mathematics and General Paper, once they have done that, if your child has got 36 units and if she gets a place; it is up to the school that with the performance of those that they have chosen and the one with 36 points, what is the gap, how are they going to fit into that system because probably that one is a slow learner and they take time to adjust? St. Alberts has taken children with four to five units and some with 12 to 15, they used their own discretion, and we just gave them the liberty to do what they deemed good for them.
*HON. A. MNANGAGWA: Thank you Mr. Speaker. My
question is directed to the Minister of Sport and Recreation, Hon. Hlongwane. We have seen a lot of sporting activity in Harare which you are really supporting but what is the Government policy in bringing those sports in the rural schools because I understand that those children are also gifted in those sports?
*THE MINISTER OF SPORT AND RECREATION
(HON. HLONGWANE): Thank you Hon. Mnangagwa for asking
that question. In schools, in the new curriculum which Hon. Dr.
Dokora has talked about which is starting in January; sports, Physical Education and Mass Display are going to be given the same precedence as Mathematics and English. These are now examinable subjects as well from ECD to A’ level and that is going to help children so that they pursue sport, recreation and physical education as a way of getting a living.
However, as Government looking at our policy, we were seeing that there are children who are not academically gifted but do well in sports. Some of them go up to O’ level but by the time they leave school the talent fades away. So, we now have Community Sport and Recreation Strategy where there is a programme called Community Sports and Recreation Club System. As we are speaking right now, our officers are busy trying to form about 21 clubs in the wards, in rural areas in order for us to have structured sports on the ground in our communities.
These clubs if they are of soccer, are registered under ZIFA, if they are cricket, they are registered under cricket, if they are for hockey, they are registered under hockey. They only pay US$10 registration fee per club. When these processes are through in
February next year, we look forward that we will be having about 80
000 structured clubs in the rural areas, then we start our National Youths Games starting from the wards where we only have one week which will be devote to youths games. Then we will go to District
Youth Games and after that we will also go on to Provincial Youths Games. When the league competition is complete, if it is soccer, they should not take one team to the next level but they should come up with a team from all the teams, the same applies to district and province. We have used what we call Select Based Model so that children who are talented should not be left behind. We will be having our officers and those from different associations where we will look at talented children. They will be writing their names down so that they can be absorbed in the divisions that we have and they will have a career path.
HON. MLISWA: Minister, you have no national policy on sports - that we know, so how do you intend to run sport without a national policy? Equally, you talk about the wards, we are Members of Parliament and I do not have a sports coordinator in ward. So, where are you deriving this without a national policy?
HON. HLONGWANE: I understand that because the Hon.
Member was out of Parliament, he might not be aware; we do have a policy – [HON. MEMBERS: Inaudible interjections.]-
THE HON. SPEAKER: Hon. Minister please do not engage
in a duel.
HON. HLONGWANE: Thank you Hon. Speaker Sir. In the month of August, Hon. Speaker, we adopted a new National Sport and Recreational policy. It is now as a matter of fact there and the Hon. Member can visit our offices to get a copy of the policy. However, that is not the only policy that we have passed. We now have a new revised National Youth Games Strategy. Subsequent to the passing of the policy, we have put together a Zimbabwe National Fitness and Wellness programme as part of a strategy to get every Zimbabwean involved in wellness programming.
We have also come with a policy on the National Colours to coordinate the whole issue of how team Zimbabwe is kitted from a National Colours point of view that policy is now there. We have also put in place a team Zimbabwe International Games bidding and hosting policy to guide the whole policy around how to bid for games and to host them. So, we have put together a protocol that answers that question.
Finally, we have put together a team Zimbabwe selection policy so that all national teams in different sport codes are guided as to how they select athletes into the national team to obviate corruption, to make sure that we prevent it from taking place by way of athletes having to buy their way into national teams. So, that has been taken care of Hon. Mliswa.
THE HON. SPEAKER: There is the other part of the
question...
HON. HLONGWANE: Sorry about that – [HON. ZWIZWAI:
ahh imbomira Speaker varikutaura, gara pasi Makosini]-
THE HON. SPEAKER: The question was how does the
policy filter at the ward level for the process of selection as you had explained?
HON. HLONGWANE: The Hon. Member is right, Hon.
Speaker. From a structural point of view our tentacles do not reach the wards as Ministry of Sport. We go as far as the District offices and the DA office level. Given the freeze by the Ministry of Public Service in terms of recruiting new manpower into Government, we decided that we are going to collaborate with those ministries that have got manpower at the ward level. We have collaborated with the
Ministry of Women’s Affairs which has got ward coordinators that are present at the ward level as well as the Ministry of Youth. Our district officers are working together with these officers from these two Ministries to make sure that the programme does rich the grassroots level.
I must say that the response is kind of sedentary, kind of slow but there is a lot of work that is going on in that direction and we are hoping that with visits that are going to be happening the first week of January by my Ministry officials, it is going to speed up the process. We are going to see conclusion of this exercise in February, in time for the beginning of the National Ward Youth Games which is the preparatory process for the National Youth Games.
Hon. Mliswa having stood up on a point of order.
THE HON. SPEAKER: Hon. Member, you cannot ask a supplementary over another supplementary because that was not the original question. It follows from Hon. Mnangagwa. Your supplementary arose from Hon. Mnangagwa’s question and you cannot ask another supplementary question.
HON. MLISWA: That stems from his mention of the national policy and my question was how much in terms of having to consult the stakeholders was done because my colleagues, Members of Parliament are not aware of the national policy. It is equally important that there is a wider consultation. We as Members of Parliament, through the Portfolio on Sport, he was supposed to table that before the Committee on Sport. That was not done. This is the first time he is talking about it without following the due process.
How can he call it a policy?
THE HON. SPEAKER: You want a point of clarification, not a supplementary.
HON. HLONGWANE: Thank you Mr. Speaker Sir. I must
start with the latter part of his question. After the passage of the policy in Cabinet, I indeed appeared before the Parliamentary
Portfolio Committee on Sport – [HON. ZWIZWAI: After, after?] – Even before. I did appear before your Committee Mr. Speaker Sir and we did speak about these matters. Let me speak about the process which the Hon. Member is concerned about. When I was appointed Minister in September of last year, I found a draft policy on my desk having been put together by my predecessor.
It is very clear from the policy that the consultative process was done in various provinces across the country and it is very clear that there was a validation process after the draft was done across various provinces of the country. To that extent, the consultation that my dear colleague, Hon. Member is referring to was done. I am not sure why he would be unaware of that process but that process was done.
I thank you – [HON. ZWIZWAI: We are all unaware.] –
HON. K. SIBANDA: Thank you Mr. Speaker. My question is directed to the Minister of Sports and Culture. What plans do you have in place to pay creditors of the AU Games hosted by Zimbabwe in Bulawayo in the year 2014; who are now about to lose business owing to borrowed working capital from the financial institutions?
THE MINISTER OF SPORT AND RECREATION (HON.
HLONGWANE): Thank you Mr. Speaker Sir. Government is alive to its obligations in respect of amounts owing to service providers due to the December 2014 games in Bulawayo, the African Union
Sports Council Region 5 Games. In 2016, Government put together
a budget of $900 thousand to amortise that bill. Unfortunately, because of the challenges with revenue collection, the actual appropriation was done but the disbursement was not done to us as the line Ministry responsible for the issue that the Hon. Member is raising so that we could pass on the money to the people that are owed.
Government’s position is however, it accepts its obligations. It is quite clear that this is money that has to be paid and Government is going to pay once the resources are available. I thank you.
*HON. MUTSEYAMI: Thank you Mr. Speaker for according me this opportunity. I want to wish you a Merry Christmas and also the House. My question is directed to the Leader of the House, Hon.
Vice President Mnangagwa, the Acting President of the Republic of
Zimbabwe. In our country in the Eastern Region bordering Mozambique, we have a challenge of our cattle from Chipinge and part of Nyanga being raided by armed people. Looking at
Musikavanhu, 49 cattle were taken from this area. The armed people were noticed and the police even confirmed. The perpetrators are from FRELIMO, the army of Mozambique.
They took our cattle. What plans do we have as a country to curb what is happening so that our families will not be disturbed.
THE VICE PRESIDENT AND MINISTER OF JUSTICE,
LEGAL AND PARLIAMENTARY AFFAIRS (HON.
MNANGAGWA): Thank you Mr. Speaker. The issue that is being referred to by the Hon. Member from Musikavanhu in
Chipinge is very true. It is not 44, actually it is 49 cattle and the perpetrators are not from FRELIMO. This is the second time that this act is taking place. The JOC from Manicaland and from Mozambique met yesterday to investigate this issue. Some of the cattle were found and returned. I think yesterday and today, the residents in Chipinge have been checking whether their cattle have been returned.
What came out was that at this border, there are people from
Mozambique who are staying in Zimbabwe and there are people from Zimbabwe who are staying in Mozambique. These people are relatives and they are fighting amongst themselves. There is what we call bandits from the RENAMO. Those are the ones who have guns. They are the ones who do these raids so that we do not get along well with the Government of Mozambique. In our JOC, we have soldiers, police and Office of the President from Zimbabwe.
The JOC in Mozambique also have soldiers, police and also Seguranca is in the JOC. For two days, they have been meeting but yesterday what they came up with is what I have just said. What happened is that one of us from Chipinge who was herding cattle was captured and they took him across the border. They heard gun shots and so, our guys from Chipinge crossed and saw the body there. They shot down a citizen from Zimbabwe. That is the crime that they committed. So, today I did not get any briefing but this is a report from yesterday.
*HON. MUTSEYAMI: Thank you Mr. Speaker. Thank you
Acting President. You have enlightened us that we are together with the security, but my supplementary question is that right now, there is a buffer zone from Zimbabwe where they are saying that people should be removed from there, but what people are not clear about is the timeframe that they have been given for them to live the buffer zone. What plans do we have so that we help these people when they are being relocated from the buffer zone to safe areas? This is because right now, they have to build? So we cannot have people being removed and put in places where they now need to build. The war is not on our side but in Mozambique.
*HON. MNANGAGWA: Mr. Speaker, looking at Chipinge,
what I did not refer to is that the security from this side has come up with a plan that we do not agree to such plans. So outside from what I have said about JOC is that we have deployed people from our side so that these people will not cross the border. We have also seen that we have protected our people in the danger zone in a military sense.
Under the Ministry of Local Government, there is the Disaster Committee that is looking at the long plan and all is in order. Thank you.
HON. M. M. MAWERE: Thank you Mr. Speaker Sir. My
question is directed to the Minister of Energy and Power Development, Hon. Minister Undenge. What is Government policy as regards to usage of plastic money? I am giving reference to service stations who are short changing people. They are calling for a maximum swipe of $20.00. So, I do not think it is going to work well for the nation. What is your Ministry doing about this if you are aware, and if you are not aware, what corrective measures are you supposed to be taking because we want a free for all festive period.
Thank you.
THE MINISTER OF ENERGY AND POWER
DEVELOPMENT (HON. DR UNDENGE): Thank you Mr.
Speaker Sir. The Hon. Member is asking me about plastic money. Although that is the domain of the monetary authorities, I will attempt to answer the question. The Government encourages the use of plastic money across board, even within ZESA for payment purposes. That is what we have informed everybody to do. But, how plastic money is used et cetera, my Ministry does not make policy over plastic money. We encourage our companies to make use of Point of sale machines because cash is not readily available. I thank you. – [HON. MEMBERS: Inaudible interjections.]-
HON. M. M. MAWERE: Thank you Mr. Speaker for allowing me to have the supplementary question. Hon. Minister, plastic money is not as good as cash because it is just swiping money coming from an account to an account. There should be no limitations if you are within our borders. I thank you for that.
THE HON. SPEAKER: What is your supplementary Hon.
Mawere?
HON. M. M. MAWERE: Thank you Mr. Speaker. My
supplementary question is that the service stations are not supposed to limit people because that is not their money. The money belongs to individuals not to service stations or banks. Why is it being done that way? Thank you.
HON. DR. UNDENGE: Mr. Speaker Sir, perhaps the Hon. Member did not capture my response in full. I said we encourage every garage to accept and make use of plastic money. As I said, respective policy is not done by us. We encourage them because we appreciate the fact that there is a cash shortage and we must move towards plastic money. That is what we encourage the garages to do.
I thank you.
THE HON. SPEAKER: Order, order! Hon. Minister, the
import of the question is you are responsible for energy, that is fuel energy and that industry is short changing the public. That is the import of the question.
HON. DR. UNDENGE: Mr. Speaker Sir, I will look into that as I said that we want every garage to ensure that all transactions are done using plastic money. Thank you.
HON. ZWIZWAI: I have a supplementary question.
THE HON. SPEAKER: Is the supplementary question justified when the Hon. Minister has said he will look into the matter? Where does the supplementary question arise?
HON. ZWIZWAI: On plastic money Mr. Speaker Sir.
THE HON. SPEAKER: No, no. I will not allow that. Allow the Hon. Minister to look into the issue and I am sure the Hon.
Minister will come back to Parliament.
*HON. ZWIZWAI: Thank you Hon. Speaker. I want to thank you for reprimanding me. I was caught unaware. I did not know that Hon. Mnangagwa is the acting President. I am sorry for
that.
My question is directed to the Minister of Finance and
Economic Development. I have gone around Ward 6 of Harare where all the banks and shops are situated. There is a cash crisis which we thought was going to be eased by the introduction of bond notes. Parents and domestic workers want money to use during the festive season. They need money for transport to ferry them to the rural areas. They cannot use POS machines or Eco-cash in the buses but they do not have the bond notes to use. The money that is being given is one hundred dollars which is three hundred dollars per month and the money is scarce. People wake up very early at around 0200 a.m. and only 100 people are given money.
We would want to know the plans that you have because all the people were waiting for the bond notes. They thought things were going to be easy but now the bond note is there and there is no change. People are suffering especially during this festive season.
HON. CHAPFIKA: On a point of order Mr. Speaker.
THE HON. SPEAKER: There is no point of order allowed –
[HON. MEMBERS: Inaudible interjections.] –
*THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Firstly, I want to thank the Zimbabweans who welcomed the bond notes. Right now, the worry is that we have a low allocation and this should be increased.
That is what Hon. Zwizwai has asked. What is coming now is just a few; why can we not bring in a lot of them.
The central bank is ceased with the issue and they are doing their best so that they work things out. I want this House to know that at the moment, bond notes are an incentive to those who are selling outside the country. These include tobacco growers and gold miners. Right now, the Reserve Bank has released US$29.6 million into the market and they are doing their best to see that the challenges we are facing are lessened. The issue of bond notes is not an overnight thing. The Reserve Bank will work flat out so that they work things out.
*HON. ZWIZWAI: Thank you Hon. Speaker and thank you
Hon. Minister Chinamasa for the answer that you have given us.
My supplementary question is, the Minister is saying that a small amount of bond notes has been released. The Minister speaks as if the money is only an incentive whereas we are talking about the money people have in their accounts because the Government and Ministry are obliged to give people their money. People understood that you said that yes the US dollar is not our currency; now because we have the bond, why do you not give us the money because the
Government is obliged to give us our US$ which you cannot meet. We are saying give us the bond notes but you are not releasing the bond note into the market so that we get our money and get food on the table.
*HON. CHINAMASA: I think I have explained. You can take it or not but people welcome the bond notes and they are getting their money. It is not possible that all of it should be released into the market. It takes time.
*HON. MUDZURI: My supplementary question is that people have their money in US dollars but now we have a law. The central bank issued a statement that people can take bond notes, about three hundred and US$100. When I asked this from the Leader of the House, he said that you are not forced to withdraw bond notes but now there is a law that you should take so much. Is it not the same that when you have a foreign currency and local account, you wake up one day and both the accounts will be in bond notes?
*HON. CHINAMASA: Mr. Speaker, I think I have answered this question. It has been asked by Hon. Zwizwai and I have repeated and I am repeating. The answer is the same. The answer is that right now, there is US$29.6 million which has been released into the market - [HON. MEMBERS: Inaudible interjections.] –
THE TEMPORARY CHAIR (HON. MARUMAHOKO):
Hon. Members, this is why you continue asking supplementary questions because you do not listen. You are busy talking when the Minister is answering. Can we please whisper if we want to have discussions with our friends? We are not allowed to shout. Can we hear the Minister in silence please?
*HON. CHINAMASA: Hon. Mudzuri is talking as if he manufactures the US dollars. Those who manufacture the green back…
HON. P. D. SIBANDA: On a point of order. I believe that the first part of the response by the Hon. Minister must be withdrawn because it is unparliamentary. When the Hon. Member asked that question, he is not asking on his own behalf but rather he is asking because it is a concern which is coming from Zimbabweans that have got a right to access their money in the currency that they deposited it into the banks. For the Hon. Minister to indicate that VaMudzuri vanotaura kunge vanobika maUS dollars, it is a bit arrogant. I thank you.
*HON. CHINAMASA: I have answered the question. There is
nothing to add from what I have said before. What I have said is that the Central Bank is aware and is seized with the matter that the money circulation is tight and they are going to increase in line with the country’s needs. If we put US$100m right now, it will disturb the economy. You will not understand it. They found it prudent that the bond notes be released gradually and increase when the demand is higher like this festive season.
Those who are withdrawing their money are the ones that have money in the banks. There is no one who is going to the queues who is not getting their money. All the people are getting the allocations that they are supposed to get.
ANNOUNCEMENT BY THE TEMPORARY SPEAKER
NON-ADVERSE REPORT RECEIVED FROM THE
PARLIAMENTARY LEGAL COMMITTEE THE TEMPORARY SPEAKER: I have to inform the House
that I have received a Non-Adverse Report from the Parliamentary Legal Committee on the Land Commission Bill (H.B. 2A, 2016). HON. MLISWA: Hon. Dr. Made, you are aware that the command agricultural programme started with you wanting to identify 100 farmers in each province. That certainly has not been the case because there have been more farmers. As a result, there is a shortage of inputs. The farmers are also planting late which will affect their yields.
The contract with command agriculture states that a farmer must give five tonnes to Government in terms of payment. With late planting which has happened, obviously it will affect the yields. How do you intend to deal with that problem? Equally, there are so many farmers who have not received adequate inputs, can we not say that command agriculture has failed. I thank you.
THE MINISTER OF AGRICULTURE,
MECHANISATION AND IRRIGATION DEVELOPMENT
(HON. DR. MADE): I want to thank the Hon. Member first of all for the comments that he has given, that are quite pertinent in terms of the target of command agriculture. He is very correct that the target is based on adequate inputs and planting on time. However, I do not agree with the position that command agriculture will be a total failure. We will examine each case as it relates to the various inputs that arrived late namely herbicides, certainly that has got an impact, compound (D) certainly that has an impact and top dressing fertilizer as well but I want to say that we will examine each contract and each field circumstances on a farmer by farmer basis. I thank you.
HON. MLISWA: My supplementary question is that command agriculture plan was to have 100 farmers in each province and Government had prepared for that. You then increased the farmers without adding the inputs and at this point in time, farming is about season. We must be able to be clear so that Government is well aware of the fact that we will not meet the target because the yields have gone unless the Minister of Water and Climate is able to tell us that the weather conditions have changed that is another phenomenal. We must have clear position in terms of the preparedness of the season. I am under Command Agriculture, as I speak I did not get adequate herbicides, it will affect the yield - five tonnes is not achievable when you are planting in December and January. You are a doctor in agriculture and I am sure you have an answer pertaining to the intended target of 5 tonnes per hectare, which means that the agreement…
THE TEMPORARY SPEAKER (HON.
MARUMAHOKO): To the point.
HON. MLISWA: Which means that the agreement that you have with the farmer - already Government is in breach of that contract, so how do you recover your money when Government is in breach?
THE MINISTER OF AGRICULTURE,
MECHANISATION AND IRRIGATION DEVELOPMENT
(HON. DR. MADE): I think the Hon. Member is trying to prepare for an eventuality that we must subject to technical facts on the ground. I will not be speculative about it, so, we will only examine the technical facts on the grounds. Secondly, Command Agriculture did not specify that there will be 100 farmers per province, that is not correct. Thirdly, the position that he is referring to in terms of the yields as per the given planting time can only relate to the irrigated croup otherwise the dry land crop - even the irrigated crop as we are talking is still within the context of achieving the minimum tonnage per hectare – [AN. HON. MEMBER: Is that not in breach?] –
THE TEMPORARY SPEAKER (HON.
MARUMAHOKO): Order please.
HON. DR. MADE: It is not.
THE TEMPORARY SPEAKER (HON.
MARUMAHOKO): Thank you Hon. Minister.
Questions Without Notice were interrupted by the TEMPORARY SPEAKER (HON. MARUMAHOKO) in terms of
Standing Order Number 64.
HON. SITHOLE: On a point of order Mr. Speaker Sir.
THE TEMPORARY SPEAKER (HON.
MARUMAHOKO): What is your point of order?
*HON. SITHOLE: We want Hon. Chinamasa to give us a
Ministerial Statement so, we want to know when he is coming because there were a number of issues that were raised. So, we want to know from the Minister when he is presenting the Ministerial
Statement in the House.
THE TEMPORARY SPEAKER (HON.
MARUMAHOKO): I have said time for Questions Without Notice
has expired. So, that is part of the question that you are asking. I will liaise with the Minister later but otherwise it is time for Questions With Notice.
ORAL ANSWERS TO QUESTIONS WITH NOTICE
RESTORATION OF POWER AT DOMBORUTINHIRA
BUSINESS CENTRE IN MUTASA DISTRICT
- HON. SARUWAKA asked the Minister of Energy and
Power
Development to inform the House when the Ministry would restore power at Domborutinhira business centre in Ward 19 of Mutasa
District, where the transformer was struck by lightning in February 2015, thereby affecting the business operations, especially the butcheries and bottle stores.
THE MINISTER OF ENERGY AND POWER DEVELOPMENT (HON. DR. UNDENGE): Mr. Speaker Sir, this is the second time – [AN. HON. MEMBER: Mimicking Hon.
Undenge’s voice] – [Laughter.] –
THE TEMPORARY SPEAKER (HON.
MARUMAHOKO): Order.
HON. DR. UNDENGE: It is unfortunate some of us do not
behave in a parliamentary way. Perhaps though it is unparliamentary, we have fallstuffs, the equivalent of people who do not exhibit normal parliamentary behaviour. Those the gods want to destroy, they first make mad. Let me now turn to the question Mr.
Speaker Sir. This is the second time I am answering this question. Last week I answered the same question. The transformer in question has already been replaced and last week the Hon. Member actually thanked me for having replaced the transformer. I thank you.
INSTALLATION OF PREPAID METERS IN GLEN-NORAH
- HON. MAONDERA asked the Minister of Energy and
Power Development to inform the House:
- When prepaid meters would be installed in Glen-Norah considering that three years have passed since ZESA last installed the meters;
- What measures have been taken to deal with unscrupulous ZESA employees who demand bribes in order to reconnect customers;
- What measures are being taken to deal with ZESA employees who have been illegally selling prepaid meters for US$250 yet these are supposed to be installed for free.
THE MINISTER OF ENERGY AND POWER
DEVELOPMENT (HON. DR. UNDENGE): Mr. Speaker, let me
thank the Hon. Member for raising such pertinent issues. Glen Nora is among several Harare Suburbs such as Mufakose, Mbare, Mabvuku and Dzivarasekwa, where over 100 000 prepaid meter installations are still outstanding. The second phase of prepaid meter installations that coveres Glen Norah and the other suburbs has been delayed due to non-delivery of meters by our suppliers who were awarded the tender to supply 130 000 prepaid meters. To date only 11 200 meters have been delivered as the foreign manufacturers are not getting adequate foreign currency allocation to deliver the meters. ZESA is engaging key stakeholders to resolve the matter. The roll out of phase two that includes Glen Norah is now expected to start in the first quarter of 2017.
With regards to the second part of the Hon. Member’s query, ZESA is engaging consumer advisory boards, resident associations and other customer representative bodies in its campaign against corruption, fraud and bribery. In addition, an electronic and print media campaign is also underway urging customers to report unscrupulous staff members using toll free hot lines managed by Deloitte.
Disconnected points are being followed up and customers found illegally reconnected are penalized. Police reports are made for identified offending staff involved in fraud, including the alleged settling of prepaid meters. In such instances, stern disciplinary measures are in place for perpetrators.
*HON. MAONDERA: Hon. Minister, we thank you but it is not only Glen Norah, but all people in Zimbabwe are getting meters for US$250 to US$300 from ZESA employees. Can you tell us if there are employees of ZESA who have been prosecuted? You are saying that supply is not able to meet demand; if we talk to the ZESA bosses they are not taking any action so our people are facing challenges. What are you doing so that we are satisfied that these meters are not being sold? All the meters must have references and where they are going. Where were these 11 00 meters installed, can you give us an audit because people are crying out there?
*HON. DR. UNDENGE: Mr. Speaker Sir, let me speak in
Shona because he asked his question in Shona. The Hon. Member is saying that people are buying meters and I said that it is corruption and it takes two to tango. So, if you buy and you comply and you do not report to the police you are also an accomplice. People from ZESA and the police will only act when cases are reported, that is how the law works. If you want an audit, it will be done and that information is available from ZESA. I thank you.
ELECTRIFICATION OF CHITINHA AND CHIRAMBA
PRIMARY SCHOOLS IN CHIMANIMANI WEST
- HON. CHIKUNI asked the Minter of Energy and Power
Development to inform the House when Chitinha and Charamba Primary Schools in Chimanimani West would be electrified?
THE MINISTER OF ENERGY AND POWER
DEVELOPMENT (HON. DR. UNDENGE): The electricity line to Chiramba Primary School has been constructed and the project now awaits a transformer. Once the transformer becomes available, hopefully not later than March 2017, the project will be completed.
Plans are underway to electrify Chitinha Primary School in 2018.
HON. D. P. SIBANDA: Thank you Mr. Speaker. I just wanted to find out from the Hon. Minister what policy measures his Ministry is putting in place to ensure that critical institutions like hospitals are always having supply of electricity. I thank you.
HON. DR. UNDENGE: Hon. Speaker, we do have a standing
policy that critical institutions like the hospitals which the Hon. Member has asked about are kept supplied by power always. Of course there could be issues when there is a fault along the line when there is a cut off, but ZESA speedily attends to such faults so that our hospitals where patients are kept are constantly supplied with power.
I thank you.
DOCTOR TO PATIENT RATIO IN ZIMBABWE
- HON. CHIMANIKIRE asked the Minister of Health and
Child Care:
- To state the current doctor to patient ratio in Zimbabwe.
- What would be the ideal ratio; and
- What steps is the Government taking to improve on the doctor to patient ratio.
THE DEPUTY MINISTER OF HEALTH AND CHILD
CARE (HON. MUSIIWA): Hon. Chimanikire wanted to find out
the current state of the doctor to patient ratio in Zimbabwe. Well, in terms of ratio it is 0.0792/1000 population. To put it more simply, we have got less than one doctor for every 250 000 people.
He also went on to ask what would be the ideal ratio. The ideal ratio would be to have at least three doctors per every 1 000 population. He also has a third part to the question which says, what steps the Government is taking to improve on the doctor to patient ratio. Our response is at the moment, we actually are training enough doctors for the country. We are currently lobbying for Treasury to allow us more posts so that we can employ more doctors otherwise, we are training enough doctors. If we have enough posts then we should be able to have the current ratio. Thank you.
HON. CHIMANIKIRE: I would like the Minister to explain what he means by training enough doctors when actually our current ratio is one doctor....
THE TEMPORARY SPEAKER: Order, Hon. Members.
You are no longer whispering but you are making noise.
HON. CHIMANIKIRE: If we have the ratio of one doctor to every 250 000 patients, can he qualify what he means by saying we are currently training enough doctors. Does he have figures and when those doctors graduate what is the time period - do we expect them to actually fill in those posts that will be able to give us a ratio of three doctors to 1000?
HON. MUSIIWA: Thank you Hon. Speaker. I want to thank the Hon. Member for asking that question. Actually, in terms of training, we are currently graduating about 360 doctors every year and the problem then comes with retention. Once we have graduated these doctors and deployed them in the system, we are losing a lot of doctors both to the region...
THE TEMPORARY SPEAKER: Address the Chair Hon.
Minister.
HON. MUSIIWA: ... both to the region and internationally.
THE TEMPORARY SPEAKER: Hon. Minister, address the
Chair.
HON. MUSIIWA: Although the replacement rate is okay, we are not retaining enough doctors in the country. So, until we have enough money in Treasury to create more posts, it is going to take some time until we reach the required ratio. Thank you.
HON. CHIMANIKIRE: Thank you Mr. Speaker. Once every two years Hon. Speaker, we have junior doctors going on strike because of conditions of service and the last strike was less than 18 months ago. Can the Minister inform the nation as to what steps they have taken to improve the conditions of service of junior doctors that are under training? I thank you.
THE DEPUTY MINISTER OF HEALTH AND CHILD
CARE (HON. DR. MUSIIWA): Thank you Mr. Speaker. I want to thank the Hon. Member for asking the question. It is an issue of great concern when we lose trained and qualified staff. However, it is a situation pertaining across the board in the country. At the moment, our salaries compared to those that pertain in the region and abroad are much lower. Until our economic situation improves, it is going to be very difficult. However, what we have done as a Ministry is, in respect of junior doctors, we have provided accommodation within the institutions which they work on at lower rates. We have also allowed them vehicle loans as a way of retaining them. As to the salaries that we can give them, that is an issue of Treasury. I thank you.
HON. MLISWA: I have a point of order Hon. Speaker. I rise on a lighter note to also congratulate the ZIFA President for being made the Cosafa President. It is a very big achievement in the history of Zimbabwe. I think it would be unfair as a House for us not to recognise that appointment on Dr. Chiyangwa being the Cosafa President. It is like being the Chairman of the SADC region from a political point of view. Thank you – [HON. MEMBERS: Hear, hear.] –
NUMBER OF TRAINED UNEMPLOYED GRADUATE NURSES
AND MEASURES TO ENSURE THE TRAINING
PROGRAMMES ARE OF ECONOMIC VALUE
- HON. CHIMANIKIRE asked the Minister of Health and
Child Care to state the number of trained graduate nurses who are currently unemployed in Zimbabwe and what remedial action the Ministry is taking to ensure that the training programmes are of economic value.
THE DEPUTY MINISTER OF HEALTH AND CHILD
CARE (HON. DR. MUSIIWA): Thank you Hon. Speaker. I thank the Hon. Member for asking this question. At the moment, we have about 3150 registered general nurses who have graduated and are out of employment. Besides that, we also have 1100 primary care nurses who have also graduated and are awaiting employment.
As I said before, we trained for the national needs. The current establishment is very low. It was an establishment that was given to us in 1982 when the country’s population was only seven million and the disease burden was much less. If we could have fiscal space, then we would be able to absorb all the nurses that are on the streets at the moment. However, to mitigate this situation, we are looking at modalities of exporting this trained labour pool in countries of need.
When we have finalised these modalities, we will bring them to Parliament for consideration and approval. I thank you.
HON. CHIMANIKIRE: Mr. Speaker, the idea of exporting
labour in terms of trained nurses was mooted in this Parliament more than four years ago and nothing has happened. Can the Minister state to the nation when the programme is likely to be implemented; not just the fact that he is going to bring the programme? When is it likely to be implemented because we are four years down the line?
HON. DR. MUSIIWA: Thank you Mr. Speaker. I want to thank the Hon. Member for raising this question. It is also an issue of concern. However, I would want to assure this House that we are at a very advanced stage. We are currently looking at three countries that have expressed interest in absorbing our nurses. What we are currently looking at is the contracts that these countries are offering and the benefit that it will accrue to the nurses and the country. Very soon, we are also working on this strategy. I want to assure you in the next quarter, we will be bringing this strategy to Parliament for approval. Thank you.
*HON. MAPIKI: My supplementary question is, the Minister said the Ministry has 3150 trained nurses. When are they going to be exported? This is because some of them have been trained 10 years ago. Are they going to go for retraining before they are being exported?
*HON. DR. MUSIIWA: Thank you Hon. Speaker. I thank
the Hon. Member for asking this question. It is very true that we have more than 3000 trained nurses but it is not true that they have been trained 10 years ago. When we absorb nurses into the system, we follow the years that they trained. Up to now Treasury was recruiting nurses who graduated during the third quarter of 2013, so they are not yet 10 years old. On the issue that people who have been trained in medication should remain appraised, nurses who are not practising have registered with the Nurses Council. One precondition for them to register is they do what is called continuous education. They should earn points per year so that they keep appraised with the situation at the ground so we believe that they are still current. Thank you.
HON. SITHOLE: Thank you Mr. Speaker. What is the Government policy on ZIMASSET that we should have 2.2 million jobs? We heard the Minister saying that most of the nurses who have qualified are still at home. What plans do they have that their policy should be in line with ZIMASSET?
*THE TEMPORARY SPEAKER: I think the Hon. Minister
has answered that question when he was talking about Treasury.
There is nothing that he can do if Treasury has no money.
*HON. CHAMISA: I want to thank you Mr. Speaker. What
is worrying me about the issue of training of nurses is that does the Government think it is proper for us to keep on training nurses when we know that we do not have the capacity to absorb them into our system? Why can we not have a programme that can absorb the nurses that are trained already instead of keeping on training and training? What is Government doing or maybe we can do what Cubans used to do. The country was arranging with other countries to absorb their people and then get some money in return. We can get in partnership with other countries. If we do that, it will help us. We used to get doctors from Cuba.
HON. DR. MUSIIWA: Thank you Hon. Speaker. I want to
thank the Hon. Member for asking this question. It is a very pertinent question which is constantly asked, that is why should we continue training nurses and doctors when we cannot absorb them into our system. What I want to say to this House is that Zimbabwe on its own is well known in the region even internationally as a country which really trains its people well. Human resources is the best resource. It does not mean that if we are constrained right now we cannot absorb our people, we cannot develop a national resource. Many people are amazed on why the economy of Zimbabwe does not fall down; it is because the diaspora remittances which you talk about are coming from Zimbabweans which is our human resource which we export that they can work in other countries. If those people are not trained, they cannot go and work in those places remitting to their countries, so we keep on training.
THE TEMPORARY SPEAKER: Hon. Minister, you did not
answer the question. I think let the Hon. Member repeat.
HON. CHAMISA: I was fascinated by the response of the
Hon. Minister, he went on to talk…
THE TEMPORARY SPEAKER: Order, order, I have given
you the opportunity to repeat the question.
*HON. CHAMISA: Thank you for really restraining me Mr. Speaker. I said, what plans does Government have that we should not let people just go out and look for jobs on their own. Can we not see to it that those who are going out, if we cannot absorb them in our hospitals, is it not possible that we should engage other countries, then we get in partnership so that we send 2 000 or 3 000 for the next five or ten years and we get money from that agreement and then we keep on training our people. What is happening is that there are people who are just sitting down but we have trained them and they end up not practicing as nurses. That is my plea that do you have any plans, if you do not have any plans, here are some of the plans that we have so that we can build our country. Thank you.
*HON. DR. MUSIIWA: I want to thank the Hon. Member for the question but he is repeating the question which has been asked by Hon. Chimanikire. That is the same question he asked that what plans do you have of the nurses that we have. I said that we are in partnership with four countries that we are engaging that we should have bilateral relations, country to country so that people will leave with the blessing of the country. When the plans are in place, I will bring them to Parliament; they have to be approved by Parliament.
HON. TOFFA: The Hon. Minister is telling us that there are four countries that they are negotiating with. Previously, the Minister also did tell us that there was a programme where we will be exporting labour and nurses were on the programme. I think the Minister needs to tell us which countries are these and how far they have gone with the programme because he keeps telling us about negotiations. I thank you.
HON. DR. MUSIIWA: Thank you very much Mr. Speaker. I
am sorry to repeat. As a matter of procedure, I cannot bring this to the House until it is approved by Cabinet. I think it is well and good for me to let you know that in the next quarter, we will be bringing the finished product to Parliament for approval. Thank you.
CONSTRUCTION OF A CLINIC IN KASIBO VILLAGE
- HON. MKANDLA asked the Minister of Health and Child
Care when the Ministry is going to build a clinic in Kasibo village in Hwange East Constituency where people travel between 30 to 45 km to the nearest clinic which is Mwemba clinic.
THE DEPUTY MINISTER OF HEALTH AND CHILD
CARE (HON. DR. MUSIIWA): Thank you Hon. Speaker. I want
to thank the Hon. Member for asking this question. It is actually in the Ministry’s plan to construct a clinic at Kasibo Village but this is going to be done through Hwange Rural District Council. The plans for this clinic have already been submitted. We are awaiting funds for the construction of the clinic. Thank you.
HON. SANSOLE: I want to thank the Minister for the response but I just want to find out whether the Ministry has plans to build clinics in every ward because this particular ward does not have a clinic and I have raised the issue with Hwange Rural District Council as the Constituency Member of Parliament and I have been advised that they intend to build a satellite clinic at Kasibo Village and a clinic at Mashala Village which is nearer to an existing clinic. Does the Ministry have plans to build clinics in every ward so as to reduce the distances travelled by villagers? Thank you.
HON. DR. MUSIIWA: Thank you Mr. Speaker. It is true, we
have received plans to construct this clinic in this particular ward. It is definitely in our plans. However, as to the construction of clinics in every ward, it is not feasible at the moment because of the financial constraints. I can vouch for you that we are going to construct the Kasibo clinic. When we then move on to a situation where we are going to construct a rural health post, then we will consider a satellite clinic in the wards. At the moment, we are only going to build a clinic specifically for Kasibo. Thank you.
CONSTRUCTION OF A CLINIC IN SIANYAMA VILLAGE
- HON. MKANDLA asked the Minister of Health and Child
Care to inform the House whether the Ministry is going to build a clinic in Siyanyama Village, Mabale Ward in Hwange East Constituency where people walk a distance of 8 km to the nearest clinic which is Lupote Clinic.
THE DEPUTY MINISTER OF HEALTH AND CHILD
CARE (HON. DR. MUSIIWA): The current Ministry’s policy is that people should not walk for more than 10 km to the nearest health facility and in this case, the distance indicated by the Hon. Member is within the required radius. However, the Ministry is planning to establish health posts and Sianyama Village can be considered for the establishment of such a facility.
MEASURES IN PLACE TO ALLEVIATE THE PLIGHT OF
CLIENTS FACED WITH HIGH COSTS OF ACCESSING HEALTH SERVICES AT CHITUNGWIZA GENERAL
HOSPITAL.
- HON. SITHOLE asked the Minister of Health and Child Care to inform the House what measures the Ministry is putting in place to alleviate the plight of clients who are faced with high costs of accessing health services at Chitungwiza General Hospital.
THE DEPUTY MINISTER OF HEALTH AND CHILD
CARE (HON. DR. MUSIIWA): I would like to thank Hon. Sithole for asking this pertinent question about Chitungwiza Hospital. Well, I would like to say, the institution is operating under Government Public Hospital Service Delivery, under its normal guidelines. It is one of the hospitals that has good governance. The hospital is now in joint venture partnership in five areas, mainly the laboratory services, radiology, catering services, funeral parlor and pharmacy department.
The partnership has created a win/win situation between Chitungwiza Central Hospital and the corporate partners. This has tremendously improved service delivery at the hospital and has transformed it into a world class service provider. It is one of the star hospitals in the country.
As to the pricing system, Chitungwiza hospital still charges Government rates and I want to assure you that the consultation fees are still prescribed at Government rates, that is US$10 for adults aged between 11 and 64 years; US$5 for children between five years and 10 years. So, I believe it is still providing good service despite the fact that it has gone into private partnership. I thank you.
*HON. SITHOLE: Regarding children under five years, since there is a shortage of free drugs, what happens when you get drugs from private hospitals which are expensive?
*HON. DR. MUSIIWA: Thank you Hon. Member for asking
this question which is repeatedly asked but the truth is that in the country we have a law that under five year children do not pay when they are being attended to at hospitals, they get drugs for free. Currently, the money that we are getting is very little, so at times there are shortages of drugs in hospitals. There are two questions raised on this, that should we close the hospitals or we can engage someone to bring us drugs at a lower price which we then call private partnership.
You find that a private partnership pharmacy is as low on rates as other pharmacies around town. So, we have tried to curb the shortage of money. If it were possible, the drugs should be there for free.
*HON. SITHOLE: What is the Government policy on patients who go to hospital without money, should they be detained in the hospital?
*HON. DR. MUSIIWA: It is not Government policy that people who have been attended to without money should be detained. Surely, all the people who would have been treated and have recovered should go back home. Detaining them will be very costly considering food and other things. So, Government policy is that if they are supposed to pay, we should be given their residential addresses and they should be made to sign a payment plan. Thank you.
POLICY ON COMPENSATION OF PEOPLE DISPLACED
FROM THE ZAMBEZI VALLEY
- HON. P. D. SIBANDA asked the Minister of Environment,
Water and Climate to state whether the Ministry has a policy to compensate the people who were displaced from the Zambezi Valley during the period 1955 - 1958 to pave way for the construction of Kariba Dam.
THE MINISTER OF ENVIRONMENT, WATER AND
CLIMATE (HON. MUCHINGURI): I would like to thank Hon. Sibanda for the question. Mr. Speaker Sir, the Kariba dam is under the control of the Zambezi River Authority, a bi-national governmental body between Zimbabwe and Zambia created to develop and administer the Kariba dam and reservoir. In Zimbabwe, Z.R.A falls under the Ministry of Energy and Power Development. I am therefore, not in a position to respond to the question. I would like to request that the Hon. Member direct the question to the relevant authorities. I thank you.
HON. P. D SIBANDA: Mr. Speaker, I would like the Hon. Minister to inform me who those authorities are, that I have to consult because merely saying that I should be directed to the responsible authorities, without mentioning the responsible authorities, I think is not sufficient.
HON. MUCHINGURI: Mr. Speaker Sir, I indicated that the Ministry of Energy from the Zimbabwean side is the responsible authority. I am directing the Hon. Member to approach the Minister of Energy. I thank you.
HON. P. D SIBANDA: On a point of order Mr. Speaker.
THE TEMPORARY SPEAKER: What is your point of
order?
HON. P. D SIBANDA: Mr. Speaker, I think I would love the Hon. Minister to indicate why I should consult the Minister of Energy. When we are talking about the Zambezi River and the dam itself, it is not all about energy. One of the reasons why the dam was built was to get energy but my question is not about energy. When the Government is compensating people that are moved from some areas where dams are constructed, it is not within the province of the Ministry of Energy, it is within the province of the Ministry of Water. Therefore, ...
THE TEMPORARY SPEAKER: Order, order. This
question has to be redirected to the Ministry of Local Government, Public Works and National Housing.
WRITTEN SUBMISSIONS TO QUESTIONS WITH NOTICE
MANAGEMENT OF LAKE KARIBA BETWEEN ZIMBABWE
AND ZAMBIA
- 16. HON. MACKENZIE asked the Minister of Environment,
Water and Climate to explain the following to the House:
- the international Management Policy used to manage Lake
Kariba between Zambia and Zimbabwe;
- why residents in Kariba Town are denied their right to do gillnet fishing along Lake Kariba from Charara Estate, the
Leisure Bay and Chawara harbour;
- why Zimbabweans are not allowed to use twine nets on the lake when Zambians are allowed.
THE MINISTER OF ENVIRONMENT, WATER AND
CLIMATE (HON. MUCHINGURI): Thank you for the question
Hon. Member. The International Management policy to manage Lake Kariba between Zambia and Zimbabwe – Mr. Speaker Sir, the statutory tool used in the management of Kariba between Zambia and Zimbabwe is called the Protocol on Economic and Technical Corporation between the Government of the Republic of Zambia and the Government of the Republic of Zimbabwe concerning management and development of fisheries on Lake Kariba and the Trans-boundary Waters of the Zambezi river. This protocol was jointly established by the governments of the two countries in 1999 setting the agenda for what each country does in the management of fisheries within its jurisdiction. The management objective of the protocol is to ensure that the yield from its fisheries is ecologically sustainable and economically viable within an equitable framework.
The vision of the Protocol is to link conservation efforts on the Zimbabwean side and the Zambian side of Lake Kariba. The pelagic species, kapenta, represents one fish stock in the lake.
Mismanagement by one country will affect the entire stock. Although the inshore stocks (gillnet stocks) are separate, the protocol provides an opportunity for dialogue between fishers and fisheries managers facilitating common ecosystem approach in which fishing communities are fully involved in fisheries management. This is one case of a Trans-frontier conservation area that works as a model for management of natural resources shared by countries.
Mr. Speaker Sir, the protocol also provides the legal framework for joint management of the fisheries resources. Two major bodies fall under this protocol, namely the Joint Fisheries Management Committee (JFTC). The JFMC is the decision-making body while the JFTC is the scientific/technical body.
Each riparian state to the protocol has an obligation to share information with their counterpart. This information includes catch statistics, number of fishing vessels and patrol efforts made to encounter poaching. Riparian states are also obliged to have representation in the technical and management committee. Technical consultations which are an information sharing platform are held every 2 years with rotational hosting of the meetings between the countries.
According to Article 6 of the protocol, fishing effort (number of boats fishing) is to be shared according to the area of the lake which each state holds. Zimbabwe, which holds 55% of the lake, is entitled to 55% of the total fishing effort (particularly of the kapenta fishery which is a shared stock). Currently, Zimbabwe has 460 kapenta fishing boats on the lake and Zambia has 962 boats officially declared. This means the current ratio is 32:68 in Zambia’s favour which is against the protocol agreement.
Furthermore, Mr. Speaker Sir, research has shown that the kapenta is above the sustainable limit. A total of 500 boats are required in total on the lake to have a sustainable fishery. With the agreed ration, Zimbabwe is to have 275 rigs and Zambia should have
- The current total is pegged at 1422, meaning there is overcapacity on the lake. Riparian states agreed in 2013 Bio Economic Working Group Meeting to reduce the number of rigs and/or the number of fishing nights to ensure that the fishery is exploited sustainably.
Zimbabwe has to date reduced the total number of fishing nights from 30 days to 23 days a month, a 23% reduction in total fishing effort. This has led to an improvement on the catch statistics, with Basin 5 (Kariba) in 2015 realizing an increase from 88kg/rig per night. This proves that effort reduction does result in better returns for the fishers.
Mr. Speaker Sir, in conclusion, both countries are supposed to ensure that fishing effort is regulated and pegged at a sustainable level by committing to and abiding by the dictates of the protocol to ensure that the fishery recovers and maximum returns are realised. This will result in improved food security status of both nations, particularly for Zimbabwe which gets 90% of its fish protein from Lake Kariba, over 50% of this being from Kapenta fishing.
- Why residents in Kariba Town are denied their right to do gillnet fishing along Lake Kariba from Charara estate, the leisure Bay and Chawara harbour – Mr. Speaker Sir, the shoreline mentioned is used for rod and line fishing only. Generally, if gillnetting is allowed in these parts, the rod and line fishers will be deprived of catches. The area referred to as the Leisure Bay also acts as a control area where limited fishing pressure is applied, allowing the fish to breed and feed into the major gillnet and kapenta fisheries along the lake on the other side of the lake. Once this area is open for gillnet fishing, this could impact negatively on the productivity of the fishery. It should also be noted that the shoreline mentioned is where a lot of boating is done. If this area were to be netted, this would result in a lot of user conflict with boating being disrupted. Gillnets tend to affect boat engines by becoming entangled in the propellers. This is not only dangerous but also very expensive to repair. However, sustainability of the fisheries of Lake Kariba is paramount hence having some area closed to fishing.
- Why Zimbabweans are allowed to use twin nets on the lake when Zambians are allowed – Mr. Speaker Sir, twine nets have been found to be a very unsustainable form of fishing. It has been proven that use of twine nets produces catches that are much higher than the multifilament form of fishing gear. As a result, this will defeat principles of sustainable utilisation which Zimbabwe subscribes to. The reason why Zambia has very low fish production into it’s gillnet fishery can be attributed to this form of fishing gear as well as the open access nature of the fishery. By open access, we are referring to the lack of restriction on entry where anyone who has neighbours is the very cause we have their fishers encroaching on Zimbabwean fishing grounds because they have overfished their stocks and now resort to poaching from Zimbabwean fishing grounds.
Twine nets are highly resistant to abrasion and degradation; hence the netting has potential to last for many years if it is not recovered unlike the multifilament (cotton nets). When abandoned in water, they have the effect of continuing to catch fish (what is referred to as ‘ghost fishing’) this means that the net will continue to trap fish for as long as it is in the water thereby depleting the fish resources and also leads to the unsustainable fishing practices which we as a country try to guard against. Cotton nets will, with time degrade and not impact negatively on the fisheries resources.
Zimbabweans appreciated the role the fisheries of Lake Kariba play to food security and manages the fisheries in a way that ensures that it is carried out sustainably. If we go the Zambian route, there is that danger of a collapse in the fishery leading to loss of employment and income for fishers dotted along the lake.
POLICY ON WEATHER FORECAST FOR TOURIST
RESORTS IN MASVINGO
- HON. MAVHENYENGWA asked the Minister of Environment, Water and Climate to explain Government policy regarding the weather forecast for tourist resort areas on the state television and to explain why the Great Zimbabwe Monument which is a tourist attraction in Masvingo is not featuring on the weather forecast.
THE MINISTER OF ENVIRONMENT, WATER AND
CLIMATE (HON. MUCHINGURI): I would like to thank the
Hon. Member for the question requiring me to explain Government policy regarding the weather forecast for tourist resort areas on the state television and to explain why the Great Zimbabwe Monument which is a tourist attraction in Masvingo is not featuring on the weather forecast.
There is no Government policy regarding weather forecasting for tourist resort areas on the State television. The time allocated for TV presentations is very short to show all the tourist resorts, monuments and other places of interest to the general public.
However, the Great Zimbabwe weather forecast is presented under Masvingo.
Questions With Notice were interrupted by THE
TEMPORARY SPEAKER in terms of Standing Order No. 64
MOTION
BUSINESS OF THE HOUSE
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I seek
the leave of the House to move that Orders of the Day, Numbers 1 to 27, be stood over until Orders of the Day, Numbers 28 and 30 have been disposed of.
Motion put and agreed to.
HON. CHAMISA: I have no objection Mr. Speaker Sir but we are indisposed as a House to transact this very important business. This is a very important debate, we cannot afford to go on a no quorum basis. Members must come; the quorum is not properly constituted, we want it to be properly constituted so that we can transact the business. We do not want to joke around. This is a very important Bill, the Minister has been here and is a serious man and we must grace his efforts. We cannot afford to be unfair to the Minister. We must whip people back from the coupons to come here. Coupons are not as important as this Bill. Yes, there is no quorum Mr. Speaker and we have sent people to call other Members back. What is unfair is absconding Parliament.
Bells rung.
[Quorum formed.]
SECOND READING
RESERVE BANK OF ZIMBABWE AMENDMENT BILL (H.B.
12, 2016)
Twenty-Eighth Order read: Adjourned debate on motion on the
Second Reading of the Reserve Bank of Zimbabwe Amendment Bill
[H.B. 12, 2016].
Question again proposed.
HON. CHAPFIKA:
Introduction
1.1 The Reserve Bank of Zimbabwe Amendment Bill was gazetted on 17 November 2016. The Bill seeks to provide a legal framework for the Central Bank to issue bond notes exchangeable at par value with the United States dollar, on the same basis that it previously issued bond coins. The Bill also seeks to validate the issuance of bond coins currently in circulation.
1.2 Upon gazetting of the Bill, the Committee on Finance and Economic Development resolved to conduct public consultations on the Bill, consistent with Section 141 of the Constitution. The consultations were held from 29 November to 3 December, 2016, in
Gweru, Bulawayo, Gwanda, Lupane, Masvingo, Mutare, Marondera, Harare, Chinhoyi and Bindura. The Bill generated mixed views from the general public. Those who supported the Bill felt that the introduction of the bond notes would ease liquidity challenges and facilitate small local market transactions. There were also dissenting voices but would not substantiate their reasons for opposing the Bill other than expressing expressed fears of losing their savings given their experiences with bearer cheques in 2008. A number of recommendations for improving the Bill were however suggested during the consultations and the proposals will be explained later.
1.3 In terms of the consultations, members of the public queried why Parliament did not conduct the consultations for the proposed introduction of the bond notes much earlier before they were released since Government had expressed its intention sometime in June, 2016. Some even called for the use of bond notes to be subjected to a referendum as a way to ascertain the level of acceptance.
2.0 Submissions from the public
2.1 Members of the public who were in support of the Bill argued that the introduction of the bond notes would address the liquidity challenges that were currently being experienced in the country. The expectation was that bond notes would facilitate small business transactions such as buying of fruits, including wild fruits and vegetables. They further noted that the introduction of bond notes would restrict the use of foreign currency to the financing of critical national imports. Some expressed their gratitude that they would now be able to pay local school fees for their children. To that end, they recommended that the Reserve Bank of Zimbabwe should speed up the release of bond notes to enable account holders to withdraw their earnings in reasonable amounts to mitigate against bank charges. They also expressed dissatisfaction with the withdrawal limits imposed by banks which resulted in numerous daily transactions. The small withdrawal limits were now eroding their earnings thereby discouraging savings/deposits. It was further proposed that account holders be allowed to withdraw their weekly limits at once to mitigate against unproductive time spent in bank queues.
2.2 Members of the public also noted that the introduction of the bond notes would curb the externalisation of the limited foreign currency given that they are only available for use in Zimbabwe.
2.3 Participants welcomed the introduction of exports incentives as it would avail more money to the productive exporting sectors of the economy, thereby generating more foreign exchange for the country. They however, proposed the following improvements to the Bill:
- That the Bill should provide for penalties for any conditional acceptance of the bond notes as legal tender.
- Serious penalties for defacing the bond notes and those who will subject it to the parallel market for profit.
- That the Bill should further provide for a guarantee against possible unforeseen losses that may arise at the expiry of the Afrexim-bank loan guarantee;
- The Bill should provide for the establishment of an independent body to monitor the printing and circulation of bond notes to a maximum limit of the Afrexim-bank guarantee.
- Members of the public who opposed the Bill made reference to the extraordinary hyper inflationary environment following issuance of bearer cheques in 2008 which eventually led to the adoption of a multicurrency system to stabilise the economy. That transition to the multi-currency system, left Zimbabweans exposed with hordes of the bearer cheques which they could not exchange anywhere value.
- Members of the public were concerned about statements attributable to the Executive where a perception was developed that the bond note would be exclusively paid to exporters and that would not be forced on the people. The Committee established that some people were not aware that the bond notes would be available to everybody including non-exporters.
- There were reservations expressed on the provision whereby the bond note is at par with the US dollar. There were allegations that an illegal foreign currency market had already emerged where the US dollar was trading at 1: 0,70 to the bond note. Members of the public questioned whether the bond notes could be used as a store of value just like any other currency.
- Some members of the public advised the Committee that more than 80% of the economy was informalised and the majority of the people did not have bank accounts and yet they import some of their products. They were wondering how they would access foreign currency from the banks.
- Some members of the public who were also opposed to the introduction of the bond notes argued that there was urgent need for the government to revive the local industries. They believed that this would result in increased production for local consumption and exports thereby generating foreign currency. It recommended that the Government initiates policies that are aimed at increasing production.
- There was concern raised on the quality and security features of the bond notes. Members of the public claimed that when one got soaked in the rains the notes would stain their clothes whilst it was observed that the some of the $2 notes were not identical. They called for improvements on the quality and security features on the bond notes.
- Members of the public were of the view that the introduction of the bond notes was actually frustrating an established use of plastic money.
- Committee’s Observations and Recommendations
- The Committee noted that the primary objective of the Bill is to give legitimacy to the bond notes and coins in circulation after the expiry of the Presidential Powers (Temporary Measures). In order to achieve the objectives set out in the Bill, the Committee recommends the following measures stemming from the observations from the submissions received during the consultations:
3.1.1.1 The Bill should provide for penalties for those individuals and corporates that do not accept bond notes and coins as legal tender. Stiff penalties should also be imposed on those found exchanging the notes at a different rate other than the one stipulated in the Bill.
3.1.1.2 The Committee proposes that the Bill should provide a mechanism for recourse at the expiry of the guarantee. This will instil confidence in the public.
3.1.1.3 The Committee observed that some banks have stopped the use of ATMs, much to the prejudice of the banking public. It is recommended that the Central Bank and the banking sector ensure that bond notes are dispensed from the ATMs.
3.1.1.4 In order to address lack of confidence, the Committee recommends that the Executive continues with its publicity campaigns so that all the concerns being raised by the citizens are addressed to achieve total acceptance.
3.1.1.5 The Committee recommends that the Governor of the Central Bank publishes, on a quarterly basis, information relating to the value of exports generated and the corresponding value of bond notes and coins paid to the exporters.
3.1.1.6 The Executive should also consider establishing a Committee which includes representatives of business and labour which limits the issuance of bond notes.
3.1.2 The public must be urged to continue using plastic money so as to ease pressure on cash requirements. To allay the fears of the informal sector, the Government should provide assurance that they will continue to have access to the foreign currency. The Committee therefore recommends that the informal traders should be encouraged to open bank accounts to facilitate access to foreign currency.
3.1.2.1 The Committee recommends that measures be put in place to ensure that legitimate travellers and business people including the informal traders have access to the US dollar. However there is need for limits to be set for withdrawals abroad in line with the minimum daily limits, as measures to curb externalisation by unscrupulous dealers.
3.1.2.2 The Committee observed that Government’s policy inconsistencies and lack of understanding of the bond notes on the part of some government officials and citizens has not helped the situation. The resultant overall effect has been lack of confidence with the bond notes. It is therefore recommended that Government continues with its publicity campaigns.
4.0 Conclusion
4.1 Subject to the above recommendations, the Committee supports the approval of the RBZ Amendment Bill. I thank you.
HON. DR. MASHAKADA: Thank you Hon. Speaker. I rise
also to proffer a few comments on this Bill that was tabled sometime back. First of all, I need to support the remarks by the Chairperson of my Committee on the problems that people are facing in accessing their monies in the banks.
The introduction of the bond note has not brought the necessary or the much needed relief to the consumers and the general public. We all know that the queues are getting longer every day, it is a common cause. One would hope that the introduction of the bond notes and coins would ease the general liquidity crisis. From a macro-economic point of view, this issuance of bond notes in dribs and drubs will affect aggregate demand. You know, for economic activity to respond so that we stimulate production and economic activity, there has to be aggregate demand which is backed by adequate purchasing power.
If people do not have adequate purchasing power, adequate demand becomes depressed and it is also a backlash on the general economic activity in the country. That can slow growth. As you know Mr. Speaker Sir, one of the fast moving or fast growing sectors is the commercial and financial services. These sectors depend on transacting on spending and if that is limited, that can invariably affect the level of growth in the country.
Coming to the Bill itself, I must say that the character of the bond notes depends on two things, which this House must understand. The first thing is that it is anchored by a US$200 million Afriximbank facility. I would have expected this House to be provided with the term sheet of the Afriximbank to inspire confidence so that we know that this bond note is indeed confined to the US$200 million Afriximbank facility. So, I will call upon the Minister to try and provide that term sheet so that we can tell the people whom we represent that this money is not just being printed. It is actually based on something, which is the US$200 million
facility.
The second thing is that the bond note is premised on a 5% export incentive. That was the original thinking or logic behind the introduction of the bond note. The original thinking was not to make it a general currency for everybody. It was to issue it out as an export incentive, which would then percolate in the financial system as and when exporters are paid, but that is not the case. So, in this Bill you will find that the issue of export incentive is silent. The Bill is silent on the original question of the introduction of the bond notes. It does not refer to the export incentive at all. It is now treating bond notes as Zimbabwean Dollars, asking this House to embrace the introduction of new legal tender, which is the Zimbabwean Dollar.
It detracts from the original thrust of export incentive. I thought the Minister would re-couch the Bill so that it reflects the original intention that it is going to be a 5% export incentive. As the Bill stands, it is just like any other currency that is being introduced which is not based on any export incentive.
The other comment I have is on Clause 4. I am not a lawyer, but I am not too sure whether a law can be applied retrospectively. We have advocates here, they will educate us. The other comment Hon. Minister is on the interpretation itself. I refer you to the clause, the definition of a unit of a bond note, you say it means a unit of one dollar (1$) or multiple thereof in which a bond note is denominated. What about coins which are less than one dollar (1$). I think the definition should make it clear that it is a unit of a cent not a dollar because the minimum unit in a bond note is the cents and then the dollars.
The other comment is on Clause 4 (3) where you say that bond notes issued by the Reserve Bank of Zimbabwe shall be legal tender in all transactions in Zimbabwe as if each unit of a bond note is exchangeable. ‘As if’ it would appear like it is fiction. I am sure you can re-couch it to reflect the parity that you were talking about.
If you say ‘as if’ it really defeats the confidence. Same applies to
Clause 4 (4), when you say that it will be deemed to be equivalent to; it is equivalent to. It cannot be deemed. I hope you can address these technical issues which I have raised.
HON. ZIYAMBI: Thank you Mr. Speaker Sir. I rise to add my voice on the Reserve Bank Amendment Bill. I would like to thank the Hon. Minister for bringing the Bill to Parliament, for rectifying a situation that has been left unattended to since dollarisation. When I came to this House, I brought a few United States dollars for the House to see.
Hon. Ziyambi showed the House the few dollars.
These notes Mr. Speaker Sir, if you attempt to take them outside the country, they do not have any value. What we have been doing as a country, we have been using these dollars to circulate in the country, devaluing them and denying the country money for balance of payment support. So, what the Minister has done is trying to secure these dollars in a state that if you want to buy something outside the country we can use the dollar in a usable form. If you go to the bank today, you will get US dollars which are so soiled that you cannot even do anything with them. We have been allowing this situation to go on, using the precious foreign currency that we have to circulate in the country to buy mazhanje, tomatoes and when we want to use the very same dollars to purchase precious things which we do not manufacture in this country, we could not.
So, I want to thank the Hon. Minister for bringing the Bill and for trying to rectify the situation. Mr. Speaker Sir, I would like to also say we need a lot of controls. If you go to other countries and you want to withdraw maybe $10,000, you are given a nice seat and a cup of coffee while they verify why you want such a huge amount of money. In this country, when we dollarized, you could walk into the bank and withdraw $100,000 with no questions asked and that bled the country. I therefore implore the Minister to look into all those issues so that we have the foreign currency that we need to buy those things that we do not have, the things that are critical for the functioning of the country and remove all the leakages that have been there.
Another area, as alluded to by Hon. Mashakada is that when bond notes were being introduced, so much emphasis was given to the 5% export incentive to the extent that an ordinary person who is not an exporter was in limbo. They were not sure what bond notes were being introduced for. I think the advertisements should be crafted in such a manner that they reflect that this is our currency and the foreign currency that we have is stored somewhere and you are going to use these bond notes, which are equivalent to the US$. The moment that we start using these superlatives that this is for exporters and so on, my grandmother who is in the rural areas will not understand it. When you then try to give them that money, you confuse them. So let us tell people this is our currency and we are trying to rectify the situation. We applaud the Minister for that. I also think we need a situation where we have to move away from this export incentive idea and we gather those exporters and give them this message, it will be helpful to the country.
The other point that I want to speak about is that we had so much advertisements about the introduction of the bond notes. We created this anxiety and expectation and when they were released, we only saw $2 and a few coins. When you create this high demand and then you have trickling money coming into the system, you end up with a situation where a lot of people are now sleeping in bank queues. Maybe the Minister can correct that through some form of education, telling people of the gradual introduction as opposed to the way it was advertised. However, I think it was something which was overdue and we should applaud the Minister for doing that and encourage him to keep on introducing measures that will ensure that the economy improves. I thank you.
HON. NDUNA: I also want to add my voice to the RBZ
Amendment Bill. I want to start by thanking the Hon. Members that spoke before me. This bond note that is being introduced – there are a few critical issues that need to be brought out, in particular, that we are holding in trust against a guarantee of US$200 million loan from Afrexim Bank. What immediately comes to mind is that whatever loan we get accrues interest and that needs to be brought into account. How that interest is being liquidated needs also to be spoken about because as long as we are accruing interest against the US$, it means we are losing value on our bond note. Over a long period of time, it then does not become 1:1 just based on the interest. Assuming the RBZ is going to sustain the convertibility of that bond note over a certain period, it needs to be explained to the nation what it is that is going to be used as a convertibility sustenance mechanism for our bond note. The sustenance can never be in perpetuity but can only come to a certain point.
However, the speaker that spoke before me alluded to the fact that there is some US$ that cannot be converted into any other currency outside the borders of this country and they can only be valuable in Zimbabwe. Given that scenario, the introduction of bond notes has been long overdue and it should have come in yesterday because we were engaged in self-servitude, meaning slavery or bondage of one’s dignity and person. We were using false currency. We were using bond notes that were printed in a US$ form. The US$ that we use in Zimbabwe can never be used anywhere else. Try changing them in a bureau de change or try exporting them to South Africa against the amount that is exportable at the airport or any borders. We are allowed US$500 as a holiday allowance but you cannot use that anywhere. In that way, this introduction of bond notes was long overdue.
I need to also deal with Section 4, where there is a question of application in retrospect. I believe in all honesty that we sat and burnt midnight candles when we were crafting and passing the labour law, which was applied in retrospect. I earnestly believe that what cannot be applied retrospectively is capital punishment. I am not a learned friend but I hope to become one very soon. So, it is my fervent view and opinion that the law in this effect can be applied retrospectively because it is devoid of capital punishment.
I also need to say that as a general rule of thumb, it has been said that the introduction of the bond note was as a 5% incentive on exports. I agree with Hon. Ziyambi to the effect that if it is alluded to as an export incentive, it becomes rather a bit on the restrictive side. However, its introduction is very important. How the Minister can bring about other ways of introducing the bond note that is broad based is now up to him as a financial guru. The issue of just saying 5% export incentive rather becomes a bit on the restrictive side in this way Mr. Speaker because as we speak, gold is the only exportable or tradable commodity. It is my belief that assuming there was no introduction of the bond note, easily in Zimbabwe we can introduce what is called the gold coin. The gold coin can be introduced because Zimbabwe is endowed with ubiquitous amount of mineral wealth. It is therefore easy for us to utilise those gold mines in particular, to produce gold coins. Al beit, we have tried and are trying to go the way all other global players have gone, introducing any other form of currency which is not gold coin or gold oriented by attaching our gold to a note called the bond note and US$ note – [HON. MEMBERS: Inaudible interjections.] – Muri kuda kuti ndisadebater here. …
THE TEMPORARY SPEAKER: Hon. Members, order. If
you are debating please, you do not have to communicate with Hon.
Members who are on the other side.
HON. NDUNA: Thank you for the protection Mr. Speaker and
I agree with you that this is my turn. I believe in all honest that if we bite the bullet as a nation, we can introduce the gold coin because gold is the only tradable commodity that is acceptable globally, that all other jurisdictions are buying and putting in their volts to hedge against their currencies getting weaker day by day. I believe this is a stop gap measure but going forward, if we include the marginalised gold producers Mr. Speaker, and start first and foremost by removing the issue called alienship and register everybody in Zimbabwe so that they all have identity documents and birth certificates in order that as they grow into artisanal mining field, they are well documented and can be given an incentive. They can be brought into the mainstream of the economy because it is these people that are not documented that are producing a lot of gold.
The RBZ Governor in his Mid-term Monetary Statement,
alluded to the fact that, of the 684 million produced in terms of gold Mr. Speaker, 40 – 60% of that was produced by small scale and artisanal miners. These people are not well documented. Also, in his Mid-Term Monetary Statement at some point, the Minister of Finance and Economic Development alluded to the fact that there was more than 500 000 of these artisanal and small scale miners. These are the people that are bringing in the gold, which gold we are exporting in order to introduce the bond note. This Mr. Speaker, is an abstract way of looking at it.
We need to be forward thinking and see exactly where we are coming from, where we are and where we are going. These are the people that if they continue to be disenfranchised, then the nation will be at a standstill. How do I propose that the 5% export incentive gets to be paid to these people because they are scattered all over in terms of their modus operandi. They are also not well-documented. If these people are not paid their 5% export incentive, what is going to obtain is that the money which is supposed to be paid to these people who are a pillar in terms of the economy of this country, it is going to be pilfered and engaged in illicit outflows by Fidelity Printers officers. These are the people that are buying that gold from artisanal miners, aware and cognisant of the fact that they do not come back to claim that money; aware and also cognisant of the fact that these people do not have the requisite accounts where this money can be paid into. They can pilfer that money using other means that are sophisticated.
Mr. Speaker Sir, what I also need to put in as a second proposal is that there are bus operators that currently carry a lot of passengers into Zimbabwe which request foreign currency for the payment of fares into Zimbabwe. As long as the receipting of that money is welldocumented, I ask that the Minister of Finance accept those receipts and monies banked in local banks for those bus operators who would have imported US$ through passengers and through physical cash which is in foreign currency form. I ask that this be considered as an export oriented approach so that these people also qualify for a 5% export incentive that is paid in the form of bond notes.
These were the two proposals that I had and I now call for the enforcement of the usage of these bond notes. There has not been acceptance from the Asian community, in particular, the Chinese Mr. Speaker Sir. They have not gotten into a position of accepting bond notes as a legal form of tender in terms of cash. They will still sideline bond notes and only accept US$. As long as they are in Zimbabwe, it is accepted that the Minister of Finance is the overall in charge in terms of finances.
I ask now, therefore, that he enforces the usage of these bond notes in the Asian community and also, whilst I am at it, that he enforces that all the Asian community be bankable. They should then take our bond notes and US$ into financial institutions which is also aligned to the introduction of this Bill. He should also introduce a
law that forces everybody to be bankable so that we can embrace plastic money and technology, in particular our Asian community that is not bankable. Mr. Speaker, I want to take this opportunity to thank you for giving me this opportunity to debate undisturbed, unequivocal, effectively and efficiently with a voice that is going to make sure that this law is introduced.
*HON. CHINOTIMBA: Mr. Speaker, I am not going to say much. I have stood up to thank the Hon. Minister. That thing called bond note was introduced late, we are debating on a currency which is already in circulation. People are already banking using the bond notes and they are so excited. Instead, they do not understand what we are doing here discussing about the bond note. As Members of Parliament, we should just make sure the Bill on bond notes sails through so that our constituents visit their rural areas with cash. We should not continue to discuss the currency that is already in circulation because the bond note and the bond coin is just the same
– [Laughter.] – so, I do not see any need to discuss this.
We need to ask Hon. Chinamasa how it is possible for someone who is penniless to be given a 5% incentive after exporting. What is the reason for that? It is supposed to be one dollar to one dollar. If one is owed a dollar, they should be given that dollar. This issue of a 5% incentive is not what we want, this should be scrapped. Where are you getting that money? – [HON. MEMBERS: Inaudible interjections.] – Excuse me, where is the money coming from? We are saying, those who would have exported should just be given the amount of money equivalent to the value of their exports. I stood up to support this Bill and I therefore ask Hon. Chinamasa to move for the passing of this Bill. I thank you.
HON. GABBUZA: Thank you Mr. Speaker Sir. I just have a few points that I want to emphasise – [HON. MEMBERS: Inaudible
interjections.] –
THE TEMPORARY SPEAKER: Order Hon. Members, let
us hear the Hon. Member in silence please.
HON. GABBUZA: Mr. Speaker Sir, I strongly believe that the more I listen to people talk about bond notes, the more I become more sceptical on whether it is going to solve the intended problems. Bond notes are supposed to solve our cash crisis, but I do not think that only bond notes will be a solution.
Therefore, there are certain things that I think the Minister must consider. Why do I have scepticism on bond notes being a solution to our cash problems? Firstly, we are giving incentives of 5% to the chrome industry and the gold sector, which are the only things that are there in terms of exports. If you look at a gold or chrome plant, even if you give them a 5% incentive, if the capacity of the processing plant is to produce 10 tonnes, no matter how much incentives you offer, that plant will not produce any excess, so that 5% will not result in extra production at all. The plant is built to process a certain amount of commodity or mineral output per month or per day.
Mr. Speaker Sir, we are also incentivising things like tobacco, which is seasonal. After we have reaped all our tobacco, what else will bring in foreign currency? It is a seasonal crop and once it is reaped and sold, it is done. Therefore, we will only earn foreign currency from tobacco over a certain period.
There are some people who believe that industry is improving, that is capacity utilisation, I was listening to the Minister of Industry and Commerce the other day. Mr. Speaker Sir, my recollection is that, there is very little capacity utilisation that has improved, mainly because it was said that we are now producing cooking oil. We are not producing cooking oil at all. We are actually repackaging what is produced outside. If we talk of Delta Beverages, they are one of the major industries that remain in the country, but what are they doing? Everything is coming from outside the country, including the bottle tops. What is locally produced is only water. Mr. Speaker Sir, as long as we just think about bond notes and incentives, it will not work. I think the Minister’s focus must be to target industries and
see how best we can improve our industries in terms of productivity.
Incentivising three companies that continue to produce will not work.
I wish the Hon. Minister would one day find time to move around Bulawayo, most of the industrial complexes, especially on a weekend, have been turned to church halls now. There is very little activity going on.
Mr. Speaker Sir, what should we do? My proposal is that, because we are literally importing everything in the kitchen, the Minister should consider targeting a few kitchen commodities that are used by women when they cook in the kitchen, because those are the major things that we are importing. They should then introduce an import tax, even if it means 5%. I was doing my computation and consulting with other economists. Our import bill is about US$6 billion and if we tax 5% on US$6 billion, we get about US$300 000 and that money is channelled to local industries so that there is improvement in their capacity utilisation. We will reopen those industries and we give them the modalities on how it can be done.
However, if we unveil US$300 000 per year, we will have more than 100 industries producing. Once our own industries start producing, we will see them exporting. We have good quality commodities like Mazoe which is not comparable to any product in the region. However, we need to capacitate those industries so that they export and definitely, we will have more foreign currency.
Mr. Speaker Sir, the other thing is about ZISCO Steel. I have always argued that if ZISCO Steel is resuscitated, we will solve almost half of our problems in the country. This is because if ZISCO Steel starts operating, automatically Hwange Colliery will start moving and the National Railways of Zimbabwe will also start operating. What will ZISCO Steel do? If it starts operating, the fertilizer price of ammonium nitrate will definitely go down because ZISCO Steel subsidises Sable Chemicals through buying oxygen. The mining industry will start operating, the cost of operations will be reduced because most of the dynamites used in the industries now are being imported from such countries as China, South Africa and others, which is moving foreign currency outside the country. However, if ZISCO Steel was operational, explosives automatically follow because they are a by-product of the hydrogen produced at Sable Chemicals where Sable supports ZISCO Steel. That will be helpful to us.
The other proposals that I want to make had been emphasised on by Hon. Nduna. If you move around town right now looking for the only business places that are ticking – If you go to Mahommed Mussa, I suspect they could be cashing in US$100 000 or more as turnover per day. However, the question is, is that money circulating in our banks? If we bank US$100 000 cash from
Mahommed Mussa alone, will there be a cash shortage in the banks. Go to the Gulf Complex along Chinhoyi Street and the shops along all those streets around the Gulf Complex, all the shops are Chinese shops and there is a hive of business. Definitely, all the money being circulated there is not being channelled to the banks. If they were being channelled to the banks, would we still be having queues of people waiting for money outside banks? I think those are some of the things that the Minister must try to consider and see if we can possibly mop up all the money from people who are not keeping money in the banks so that it is allowed to circulate. Then of course the issue of targeting industries, incentivizing four working industries does not work. Let us resuscitate those industries that have collapsed. We do not need to put Government money, let us charge people at the border. People are importing, put an import tax; that import tax then goes to the industries, the local industries. I am sure that will definitely work if we try all those proposals. Those are the few things that I thought I could put on the table.
HON. CHAMISA: Thank you very much. I rise to make a
very short presentation. I want to make a short presentation but just to take note of certain issues, bearing in mind the fact that it is already an afterthought to be debating this very important Bill. I think as has been indicated by certain Hon. Members of Parliament, the bond is already out there. What is important is to indicate that in future, let this be a lesson to our esteemed Government that at no time should we usurp the powers of Parliament. At no time should we run away from constitutionally defined contours of law making.
We are aware that the bond is already out there. In fact, by the admission of the Minister - through this very important Bill, it is indicated on page one, in the memorandum to Parliament that the opportunities taken to validate the issuance, just to say to validate the issuance of bond notes is an indication and admission by the Minister by the Ministry that the introduction and issuance of the bond note hitherto has been invalid. That is the language and I am simply doing statutory interpretation of what is already contained in the
Statute and we are simply saying this because in terms of Section
134, Parliament’s law making responsibilities are not supposed to be delegated at any given point in time which argument was made so ably and so effectively and so smoothly.
This is very important Hon. Speaker to say in future, we expect our Ministers to respect Parliament function of law making. If we had been approached by the Minister before the bond note had been issued out, we were going to give the wisdom to the Minister to avoid the obvious pitfalls we are not seeing when it comes to the way the bond note is being issued out and also is being doled out in the circumstances.
It is very important that we follow our Constitution, we follow our law. I know that there has been an argument to say by using the temporary Presidential Powers Act and those regulations; we were on all fours in terms of the law. Certainly, not because there is a limited framework within which we are supposed to use that Act and that law. What we did was an abuse, what we did was to use an inappropriate instrument for an appropriate responsibility that was supposed to be transacted.
Let me just quickly say that there are hygiene issues that have to be dealt with so that we are able to assist the Minister and the Government to move forward when we want to make sure that things happen in a particular context. You are aware that we managed to dig out our minerals to the tune of US$15b, now we did not manage to account for that US$15b. If we cannot manage to account for what we dig can we account for what we print? That is a fundamental question, it is a hygiene issue to say if we have not been able to account for certain things; if we have not been able to be responsible as a Government, can we therefore become responsible in our law making, responsible in our introduction of this currency. It is a fundamental question; it is a hygiene issue that has to be dealt with.
You are aware that when you transact a resource, particularly a currency, it is a transaction of promise, it is transaction of confidence. Is that confidence sufficiently stimulated in the economy, certainly not? Is that promise evidently there, certainly not. I can tell you that not just Members of Parliament or Ministers but ordinary citizens have a deficit of confidence in the bond note. Now, when you do not have confidence in what you are transacting, the net effect is that you have now erected a false accumulation model. When a person gets a bond note, they are not going to keep that bond note for purposes of storing value or transacting value. What they are simply going to do is make sure that they transact it to the next person then they look at property and other immovables which are real measures of value. That is very important because as you go forward, you are now going to be transacting fiction and we do not want the Minister to come here with a very important law making responsibility so that we come here to legislate fiction. That fiction is going to play out and is going to have a boomerang effect on the economy as we go forward.
I mentioned the issue of hygiene issues. We must also address the issue – if you look at it, we had a currency of our own, the ZIM dollar, it disappeared. Now we are bringing in a bond note, you have not addressed the subjective and objective factors that caused the disappearance of our own currency. All of a sudden you have a bond note, what caused the disappearance of our original ZIM dollar has not been addressed. So, Hon. Minister what we do not want is to come and law make in futility to come and law make with fatality, to come and law make without a proper recourse to things that we know are going to sustainable, not just at law, but factual.
So, it is very important that as we make the law we must also be circumspect on the objective and subjective conditions and factors around the disappearance of our beloved ZIM dollar. We see this bond note coming; again, it is going to go down the drain just the same way the ZIM dollar was actually affected because we have not addressed the real cause. We are students of the cause and effect, we just do not want to come here and now tinker on palliatives on peripherals and we look at cosmetic issues without addressing the core of the issue, the core of the matter which are issues of confidence, issues of governance, issues of making sure that we move away from certain fiscal conduct and fiscal behaviour that is not in line with what is expected of a modern economy.
Hon. Speaker Sir, there are two more observation as I conclude; there is the lack of a sunset clause or a sunset provision in the Act. Under normal circumstances, this is a bond note; we understand that it is a temporary arrangement. If it is a temporary arrangement it is very important Hon. Speaker that we are able to deal with these issues in a particular fashion and manner as to address fundamental consequences that are going to arise as a result of this development. If you look at it, if we do not have a sunset provision or clause, what will happen is that there is an insinuation of permanence of the existence of the bond. There is actually a connotation; it connotes infinity to say the bond note is going to be there until forever, which is problematic. As far as we are concerned, the bond note has been posited to us as an ephemeral arrangement as a stopgap measures, as something that is being done to make sure that there is a bridging gap between the current circumstances and our ideal situation.
If you do not have that kind of a sunset clause that will terminate to say it is going to be effective for a particular period of time or in time, it then brings problems of an open cheque, carte blanche that is given to the Minister, permanence which is false because it can never be permanent. This is supposed to be addressed in the law. We do not see the sunset clause in this Act and it has a problem because that sunset clause is important. In fact the Minister is given in clause 3, absolute powers to then come up with instruments that are then going to make sure that he does so regulate in whatever manner he would wish or deem necessary. That becomes a problem because then we are abrogating our responsibilities to law make to the benefit of citizens in a manner that is consistent with good practices.
Now, the last point, Hon. Speaker Sir, as I conclude is the issue of controls and limits. Even the Chairperson of the Portfolio
Committee made mention of the fact that there is need for this limit.
Why should you limit the resources that I worked for? If I have US$20 000 in the bank, let me have access to my US$20 000. If I have US$40 000 in the bank, let me have access to my US$40 000.
Why should you make a way of limiting and controlling?
Now, this is where we have a problem, Hon. Speaker Sir. You cannot have command agriculture, command economy, command currency – everything you want to command. There is a problem in commanding certain things. The economy does not respect commandments of politicians or policy makers. It respects commandments of the market, of course with the necessary State intervention. But now, the problem we have is that we have what we call economic dirigisme. Economic dirigisme is whereby the Government is so bent on controlling and intervening in the economy. It is drunk with the stupor of intervention; that is the problem we have, because you find that right now, we want to come in to control, we want to come in to limit. It will not work. We must move away from a dirigiste mindset so that we begin to allow our people to work hard and earn a living without all those controls, without all those limitations.
Last but not least, Minister, I would have expected, as we discussed, through you Hon. Speaker Sir, if you had brought an amendment to say, we are going to make it compulsory for everyone including ZIMRA, including ZINARA, to have swipe machines and point-of-sale machines, I would say this is a progressive amendment. Let us amend our laws to make it legally compulsory for us to use point-of-sale machines. Even for a barber, for a hairdresser, let us have a point-of-sale machine. Why? By doing so you are legislating e-commerce, by doing so you are legislating e-transactions, by doing so you are legislating plastic money. Now, we do not have a sufficient mechanism to make sure that we have a plastic money platform that is supported at law, so that everyone is made to be on that platform. Even lobola will be paid e-lobola. That is the progressive thing to be done so that we are able to put everything on line.
Having said that, I want to say, already our hands are functus officio. Our hands are tied because the Minister has already a merit and what we are supposed to simply do is to endorse a marriage that is already there. In fact, he has two children in the family and he is coming to us to say, can you allow me a wife. We have nothing to say because there is evidence of some marital transaction that has taken place, these two children. Thank you Hon. Speaker Sir – [HON. MEMBERS: Inaudible interjections.] –
THE TEMPORARY SPEAKER: Order please, order!
Honorable, I am saying order here. Hon. Member, order please.
HON. MAONDERA: Thank you Hon. Speaker. I represent a constituency and I have got the views of my constituents so, I have got every right to debate – [HON. MEMBERS: Inaudible interjections.] – I cannot proceed if you continue to make noise and you will delay yourselves.
Mr. Speaker Sir, from the report that was given by the Committee that collected the views of the people, it looks like the majority of the people were against the bond notes. So if I could have my own way, those people who are supporting bond notes deserve to be killed by a firing squad because they are going against the will of the people of Zimbabwe – [HON. MEMBERS: Inaudible interjections.] – Mr. Chairman, can I be protected?
HON. ZIYAMBI: On a point of order, Mr. Speaker Sir. The Hon. Member is using unparliamentary language to the effect that he wants those members who are supporting the Bill to be put on a firing squad. It is uparliamnentary language which should not be allowed in a democratic society.
THE TEMPORARY SPEAKER: Hon. Member, if you are
short of facts there is no point of you standing up to debate. Let other people debate. Be factual.
HON. MAONDERA: I was saying it in a metaphorical way.
THE TEMPORARY SPEAKER: Be factual and debate.
HON. MAONDERA: So it is important that we continue to go along the will of the people, what the people said about the bond notes and it is also important Hon. Chair, that – [HON. MEMBERS:
Inaudible interjections.] –
THE TEMPORARY SPEAKER: Order Hon. Members.
Order! Order please.
HON. MAONDERA: The other aspect, Hon. Speaker, is the quality of paper of the bond notes – [HON. MEMBERS: Inaudible interjections.] –
THE TEMPORARY SPEAKER: Order, order please.
HON. HOLDER: On a point of order, Mr. Speaker Sir. I do not think that the Hon. Member understands the Bill. So, Hon. Speaker, the problem that we are having is they are making a lot of noise. We are not hearing anything and he is repeating himself.
Astika, kuda musombodhiya I do not know – [HON. MEMBERS:
Inaudible interjections.] –
THE TEMPORARY SPEAKER: Order please, Hon.
Member.
HON. MAONDERA: My point is that, before we brought in this Bill before this august House we should have done our thorough homework about the quality of the bond notes – [HON. MEMBERS:
Inaudible interjections.] –
THE TEMPORARY SPEAKER: Order please. Hon.
Members, give him a chance.
HON. MAONDERA: We should have done our homework first on the quality of the bond notes – [HON. MEMBERS:
Inaudible interjections.] –
THE TEMPORARY SPEAKER: Hon. Members, order
please. Order please! Hon. Member, if you have no facts – [HON.
MEMBERS: Inaudible interjections.] – Order please. What is it?
Order please.
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Mr. Speaker Sir, I want to thank…
HON. MAONDERA: On a point of order, Mr. Speaker Sir – [HON. MEMBERS: Inaudible interjections.] – Hon. Speaker, I was elected by the people of Glen Norah. I have got a constitutional and democratic right to debate. I am not one to accept – [HON.
MEMBERS: Inaudible interjections.] –
THE TEMPORARY SPEAKER: Order please. Order Hon.
Members. Let us hear him …
HON. MAONDERA: No, it is not fair, it is not fair - [HON.
MEMBERS: Inaudible interjections.] –
HON. CHAMISA: I have a point of order Mr. Speaker. I think this is a very special appeal. I do not think that the Hon.
Member is going to take that much time. If he could just be allowed
Hon. Speaker Sir – [HON. MEMBERS: Inaudible interjections.] – Honestly, I do not think he will take time. We must respect each other.
THE TEMPORARY SPEAKER: Order! Hon. Members to
my right, order please. Hon. Member, you may resume your debate but I do not think you have got a lot to say. Just say what you need to say and sit down.
HON. MAONDERA: Thank you Hon. Speaker. I was raising
a point that before we brought in this piece of legislation, we should have done a lot of home work – [HON. MEMBERS: Inaudible
interjections.] –
THE TEMPORARY SPEAKER: Order, order please.
HON. MAONDERA: We should have done a lot of homework because as it stands right now, people from my constituency are crying about the quality of the bond note. So, I am urging the Hon. Minister to go back to the drawing board – [HON.
MEMBERS: Inaudible interjections.] –
THE TEMPORARY SPEAKER: Order, order! Resume
your seat. Order please. Hon. Members, you are wasting your own good time. Let this man finish his debate. He does not have much words to say. Give him two minutes then that is it. Hon. Member, I am giving you two minutes to wind up your debate.
HON. MAONDERA: Thank you for protecting me Hon.
Speaker. Maybe my last point will be to urge the Minister to take his time next time when they want to bring laws of national importance so that as Members of Parliament – [HON. MEMBERS: Inaudible
interjections.] –
THE TEMPORARY SPEAKER: Hon. Members to my
right, please you are not in a beer hall.
HON. MAONDERA: “Vana Keith Guzah vanongogona
kutaura parally, havasati vambotaura muno.” – [Laughter.] –
HON. GUZAH: On a point of order Mr. Speaker Sir, I think it is important for the Hon. Member of this House of Parliament to speak issues that are relative to what is being discussed here. He continuously raises issues that are not of paramount importance to this House. He must stick to issues that are relevant and critical to this discourse. Thank you – [HON. MEMBERS: Hear, hear.] -
THE TEMPORARY SPEAKER: Order, order. Order please. In fact, he has not said anything. So can you speak something please.
HON. MAONDERA: Thank you Hon. Speaker. I was just concluding. I urge the Minister to give this House ample time for us to get to understand. You will be shocked Hon. Speaker that some Hon. Members do not know what you are talking about; they do not know what this law entails. If we are given ample time; we do not want to be pigeonholed so that we deliberate and consult our constituencies and pass a law which is of national importance. I want to thank you very much. In future, I think people should listen to the voice of reason. Thank you.
HON. NDEBELE: Hon. Speaker, I just have one point. If you could allow me that. Hon. Speaker, allow me to draw an analogy between what is happening now and what I believe happened during the Soviet dictatorship of Stalin – [HON. MEMBERS: Inaudible interjections.] – Hon. Speaker, in my reading, I came across this. Stalin is said to have walked into a
Politburo meeting with a live chicken. Before members of the
Politburo, he started plucking out feathers from that live chicken one by one. That chicken quelled in pain; it was bleeding. When he had finished plucking all the feathers, he then pulled out pellets from his pocket and started feeding the chicken. That chicken ended up sitting on his lap and as he walked around the room, the chicken followed him. My point Hon. Speaker is, when you then feed a chicken whose pain you have caused, it forgets that you are the very person that caused its particular pain. This is the very point where we are. The children of Zimbabwe are crying out loud in pain – [HON. MEMBERS: Inaudible interjections.] - in hunger and sickness and our beloved Government is feeding them bond notes.
The children of Zimbabwe as we heard in that report are helpless. We all have no choice, including you Members of
Parliament. You have no choice but to accept the bond notes – [HON. MEMBERS: Inaudible interjections.] - So, for us to sit in this House and think that the very people who caused the demise of this economy will bring in any normal recovery is a waste of time.
Hon. Speaker, I come from a very political family and I am happy. I am a repository of all things, good and bad that have happened in this country – [HON. MEMBERS: Inaudible
interjections.] -
THE TEMPORARY SPEAKER: Order Hon. Members.
Order please. Hon. Member, just go to the point.
HON. NDEBELE: Yes, this is my point. Every time these Temporary Presidential Powers are invoked, the Government uses those powers to railroad very painful things upon the people of Zimbabwe.
HON. ZIYAMBI: On a point of order, Mr. Speaker Sir, we are debating an important Bill. The Hon. Member is talking about his family and about chickens. Such things do not concern us here. We seek your protection Mr. Speaker that we confine our debates to what has been presented and not for him to speechify to us about his family.
THE TEMPORARY SPEAKER: Order, order! Hon.
Member, you said you have a point to make. So, please one point.
HON. NDEBELE: That is the same point I am working on – [HON. MEMBERS: Inaudible interjections.] – Hon. Speaker, the last bit is, I have noticed over time that every time this Government has something very bad and difficult to drive through, it uses the Presidential Powers Act, so clearly, the bond notes are coming under a very unhygienic situation. I remember Hon. Speaker, that the last time this was ever used was when the Law and Order Maintenance
Act was used to declare war upon Matabeleland – [HON. MEMBERS: Inaudible interjections.] -This was done outside Parliament.
THE TEMPORARY SPEAKER: Hon. Member, if you have
nothing to debate, there is nothing wrong in you to just sit down and keep quiet. We are debating about currency here.
HON. ZIYAMBI: On a point of order Mr. Speaker. I think the Hon. Member needs to withdraw his last statement that
Presidential Powers were used to massacre people in Matebeleland.
THE TEMPORARY SPEAKER: I was going to ask him to
do that. Hon. Member, you may withdraw that, this has nothing to do with the debate.
HON. NDEBELE: It has, everything, it has all the tingling, no, I stand by my point. I will not withdraw that.
THE TEMPORARY SPEAKER: Please withdraw that.
HON. NDEBELE: No, I will not.
THE TEMPORARY SPEAKER: You may withdraw that.
HON. NDEBELE: I am not taking that back, I stand by that- [HON. ZIYAMBI: That is a reckless statement, directed at the Head of State and we cannot allow that. That statement is very inflammatory; who does he think he is?] – No, it is not reckless, I stand by that, it is a fact – [HON. MEMBERS: Inaudible interjections.] -
Some Hon. Members, including Hon. Ndebele, having approached the Chair.
THE TEMPORARY SPEAKER: Order, order, Hon.
Ndebele, may you withdraw your statement so that we proceed with the debate.
HON. NDEBELE: If that does not offend against my privilege as a Member of this House, I withdraw and I do not wish to proceed with this debate.
HON. TARUSENGA: On a point of order Mr. Speaker Sir, there is no quorum in the House in terms of Standing Order Number 56(1).
[Bells rung.]
[Quorum formed.]
THE TEMPORARY SPEAKER: Order, order please.
Pursuant to Standing Order Number 56, we now have a quorum of 70 Hon. Members here.
THE TEMPORARY SPEAKER adjourned the House
without putting any question in terms of Standing Order Number 51
(1) (a) at Five Minutes to Seven o’clock p.m. until Friday, 23rd December, 2016.
PARLIAMENT OF ZIMBABWE
Tuesday, 20th December, 2016
The National Assembly met at a Quarter-past Two O’clock p.m.
PRAYERS
(THE HON. DEPUTY SPEAKER in the Chair)
ANNOUNCEMENT BY THE HON. DEPUTY SPEAKER
SWEARING IN OF A NEW MEMBER
THE HON. DEPUTY SPEAKER: On the 16th of December, 2016,
Parliament received communication from the Zimbabwe Electoral Commission on the election of the following member of ZANU PF party as member of the National Assembly with effect from 27th November, 2016,
Hon. Nokuthula Matsikenyere representing Chimanimani West Constituency.
Section 128 (1) of the Constitution of Zimbabwe provides that before a Member of Parliament takes his or her seat in Parliament, the member must take the Oath of a Member of Parliament in the form set out in the Third Schedule. Section 128(2) states that the oath must be taken before the Clerk of Parliament.
I therefore call upon the Clerk of Parliament to administer the oath of a
Member of Parliament to Hon. Nokuthula Matsikenyere.
NEW MEMBER SWORN
HON. NOKUTHULA MATSIKENYERE subscribed to the Oath of Loyalty as required by the Law and took her seat – [HON. MEMBERS: Hear, hear.] –
MOTION
BUSINESS OF THE HOUSE
HON. RUNGANI: I move that Orders of the Day Numbers 1 to 9 be stood over until the rest of the Orders of the Day have been disposed of.
HON. MUKWANGWARIWA: I second.
Motion put and agreed to.
MOTION
PRESIDENTIAL SPEECH: DEBATE ON ADDRESS
Tenth Order read: Adjourned debate on motion in reply to the
Presidential Speech.
Question again proposed.
HON. RUNGANI: I move that the debate do now adjourn.
HON. MUKWANGWARIWA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 21st December, 2016.
MOTION
BUSINESS OF THE HOUSE
HON. RUNGANI: I move that Order of the Day Number 11 be stood over until the rest of the Orders of the Day have been disposed of.
HON. MUKWANGWARIWA: I second.
Motion put and agreed to.
MOTION
BUSINESS OF THE HOUSE
HON. RUNGANI: Madam Speaker, I move that Orders of the Day, Numbers 12 and 13, be stood over until the rest of the Orders of the Day have been disposed of.
HON. MUKWANGWARIWA: I second.
Motion put and agreed to.
*HON. CHINOTIMBA: On a point of order Madam Speaker.
THE DEPUTY SPEAKER: What is your point of order?
*HON. CHINOTIMBA: My point of order is that may bethe
Hon. Minister Chinamasa is still putting his documents in order.
THE DEPUTY SPEAKER: Hon. Chinotimba, you are out of
order.
MOTION
FIRST REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON
THE FINDINGS BY THE AUDITOR GENERAL ON THE 2014 AND 2015 APPROPRIATION ACCOUNTS FOR THE MINISTRY OF
INDUSTRY AND COMMERCE AND FUNDS ACCOUNTS
HON. MPARIWA: I move the motion standing in my name that
this House takes note of the First Report of the Public Accounts
Committee on the findings by the Auditor General on the 2014 and 2015
Appropriation Accounts for the Ministry of Industry and Commerce and
Funds Accounts under its purview. (S.C. 24, 2016).
HON. MARUMAHOKO: I second.
HON. MPARIWA:
1.0 INTRODUCTION
The Public Accounts Committee examined the Ministry of
Industry and Commerce on the findings of the Auditor General on the Appropriation accounts for years ending December 31, 2014 and 2015 and the Trade Measures and the Standards Association Funds for the years ending December 2013 and 2014. The two Funds are administered by the Ministry of Industry and Commerce. The Standards Development Fund was established in terms of the Standards Development Fund Act [Chapter14: 19] for the development and promotion of standardization and quality control of commodities and services. The Trade Measures Fund was established under the Trade Measures Act [Chapter 14: 23] for the development and maintenance of legal metrology services to industry and commerce and to ensure conformity with standards and requirements prescribed by international bodies.
It is of great concern to the Committee that the Ministry’s
Appropriation and Fund Accounts continued to receive qualified opinions. This shows that the Accounting Officer is not taking Audit processes seriously. Accounts for the Funds are lagging behind in clear violation of governing statutes. The Committee bemoaned the lack of specific sanctions where officials fail to perform certain responsibilities. This seems to perpetuate a culture of poor performance.
2.0 OBJECTIVES OF THE ENQUIRY
Section 299 of the Constitution of Zimbabwe Amendment No. 20 of 2013 states as follows: Parliament must monitor and oversee expenditure by the State and all Commissions and institutions and agencies of Government at every level, including statutory bodies, Government controlled entities, provincial and metropolitan councils and local authorities, in order to ensure that-
- all revenue is accounted for;
- all expenditure has been properly incurred; and
- any limits and conditions on appropriations have been observed.
Section 309 (2) (a) of the Constitution provides for the functions of the Auditor General as follows: “to audit the accounts, financial systems and financial management of all departments, institutions and agencies of Government, all provincial and metropolitan councils and all local authorities”.
National Assembly Standing Order No. 16 mandates the Public Accounts Committee to examine the sums granted by Parliament to meet public expenditure and such other accounts laid before the National Assembly.
It is therefore, the duty of the Public Accounts Committee to report whether such public funds have been managed and expended as authorised by Parliament. In this context, the Committee examined the audited Appropriation and Fund Accounts for the Ministry of Industry and Commerce as reported by the Auditor General in her Annual Report for the financial years ended December, 31, 2014 and 2015.
3.0 METHODOLOGY
The Committee held an oral evidence session with Mrs Shonhiwa, the Permanent Secretary and Accounting Officer for Ministry of Industry and Commerce. It requested written evidence which was then analysed and further this basis of the Report.
- FINDIN`GS AND OBSERVATIONS BY THE
COMMITTEE
- APPROPRIATION ACCOUNTS FOR THE MINISTRY
OF INDUSTRY AND COMMERCE FOR THE YEARS ENDED
DECEMBER 31, 2014 AND 2015
4.1.1 Direct Payments made by Treasury on behalf of Ministry
(2014)
During the year 2014, Treasury made direct payments totaling $196 193 to service providers on behalf of the Ministry. In 2013, the figure for direct payments stood at $955 973. The Ministry was advised by Treasury to obtain receipts from the respective service providers confirming payments made. The Audit found out that the Ministry did not have receipts supporting the payments and there were no reconciliations showing the invoices paid and the actual amount owed to each service provider. There was also a variance of $32 538 between the figure provided by Treasury and the figure shown on the Public Finance Management System (PFMS).
In the absence of reconciliations and confirmations of payments made to service providers, it will be difficult to establish whether payments were made against existing debts and also monitor the
Ministry’s obligations to service providers.
The Ministry acknowledged the audit observation and informed the Committee that corrective action had since been taken. The missing receipts were reported to have been with Treasury at the time of audit. The Ministry also highlighted that TelOne took time to submit confirmations for payments, hence the delay in carrying out reconciliations. The Ministry submitted all the supporting
documentation for the direct payments and the observation has since been addressed. Going forward, the Ministry indicated that there is now in place a register for commitments to all service providers. The observation was therefore addressed to the Committee’s satisfaction.
4.1.2 Public Financial Assets (2014)
During the 2013 Audit, it was observed that the Ministry issued loans to Zimbabwe Steel Company (ZISCO) and Industrial Development Corporation (IDC) amounting to $12 658 331 without signing loan agreements. In 2014, the Ministry further issued $11 663 363 to the same parastatals again without loan agreements. In the absence of loan agreements, the legality of the advances could not be ascertained.
The Ministry informed the Committee that ZISCO Steel and IDC had contracted loans from the China Exim Bank and experienced challenges in servicing the loans. The Ministry then approached Treasury which in turn paid the amounts in question to the Bank in 2013 and 2014 on behalf of the parastatals. The Ministry indicated that loan agreements between the Ministry and the respective parastatals were prepared following the audit observation. Signed copies of the loan agreements were availed for audit inspection and as a result, the audit observation has been cleared.
The Committee however, noted with concern the payment of over
$24 million on behalf of ZISCO Steel and IDC without the corresponding record of the liability in national accounts reflecting these amounts owing to central government. It therefore, makes it difficult for
Treasury to adequately record the full extent of sums owing to Government by parastatals.
4.1.3 Absence of a properly constituted Audit Committee
(2014)
Section 84 of the Public Finance Management Act (PFMA) [Chapter 22:19] provides for the establishment of Audit Committees whose responsibilities are to liaise with external audit, supervise internal audit, and review annual accounts and internal controls. The Ministry is commended for taking steps to establish an Audit Committee. However, the Committee was made up of Ministry’s employees contrary to the provisions of 84 of the Public Finance Management Act which stipulates that the majority of members should not be persons employed in the Ministry and the chairperson should not be a member of the Public
Service. Given, the current composition, the independence of the Audit Committee is compromised and the internal controls may not be adequately evaluated.
In response, Mrs. Shonhiwa, the Accounting Officer acknowledged the observation. She also advised that the existing Committee was an interim one, put in place as a stop gap measure to assist in the implementation of audit recommendations. Other Ministries were said to be in the same predicament. The Ministry indicated that it would continue to engage Treasury on the way forward regarding the setting up of the appropriate Audit Committee as provided for in Section 84 of the
PFMA and in that regard, a letter was written to Treasury on 14 July
2016.
The Committee noted with concern that seven years after the PFMA was enacted, Ministries have failed to establish Audit Committees in the absence of PFM Regulations instructing Ministries and other public entities on how to implement the provisions of the Act. In the absence of Audit Committees, Ministries have not been able to follow through the recommendations made by the Auditor General, hence the continued recurrence of issues.
4.1.3.1 The Committee recommends the Treasury should immediately issue the necessary guidelines on the setting up of Audit Committees by Ministries.
4.1.4 Absence of a Risk Management Policy (2014)
In violation of Section 44 of the PFMA, the Ministry did not have a documented and approved risk management policy. As a result, risk assessments were not carried out. The Act requires Ministries and other public entities to establish and maintain an effective, efficient and transparent system of risk management framework. This will assist the Ministry in identifying and responding to material risks effectively.
The Ministry acknowledged the audit observation and indicated that the Risk Management was now in pace. It also appointed a Risk
Champion responsible for overseeing the implementation of the policy.
It was working on a Fraud Risk Policy which is part of the Risk Management Policy. The Committee expressed its satisfaction that the
Ministry had taken appropriate action to address the audit observation.
4.1.5 Management of Government Programmes- Milano –Expo
Contract (2015)
Zimbabwe accepted an invitation from the Italian Government to participate at the Milano-Expo 2015, a universal exhibition organised by
Italy. It was held on the theme ‘Feeding the Planet, Energy for Life’ and dealt with the right to health, safe and sufficient nutrition for the entire planet, environmental, social and economic sustainability of the food chain as well as the safeguarding of food taste and culture.
The Ministry awarded a contract for €50,400 (US$56 952) on May 6, 2015, for kitchen management services and catering of food and beverage to Jihad El Badaoui (Jihad) for the Milano-Expo. The contract was made without following the tender procedures in contravention of the Procurement Regulations, Statutory Instrument 171 of 2002. Without going through the tender procedures, it could not be ascertained whether the Ministry got fair value from the contract. The service provider could inflate prices in the absence of competitive bidding resulting in a drain on the Ministry’s resources.
Furthermore, the revenue received return that was submitted for audit indicated that revenue amounting to $49 980 (€36 740) was realised from sales at the Milano-Expo. However, the Ministry did not avail any supporting documentation in the form of receipts, cashbooks or registers for sales made and expenditure incurred in Italy on this programme. In the absence of financial records, transparency and accountability in the use of public resources may be compromised and funds may be misappropriated.
Mrs. Shonhiwa acknowledged the observation and highlighted difficulties the Ministry encountered in securing a service provider given the strict Italian rules and regulations. The Ministry brought to the attention of the State Procurement Board the peculiarities in terms of engaging a service provider at the expo. The cash receipts were said to have been retained by the Business Partner for payment of taxes to the Italian Government in accordance with the Italian Tax Regulations.
4.1.5.1 The Committee recommends that in future, the
Ministry should obtain the necessary approvals to vary procurement rules and regulations and proper books of accounts should be maintained at all times to ensure full accountability of public resources.
4.1.6 Poor Management of Fuel (2005)
For the second year running, the audit noted a laxity in fuel management. On March 10, 2015, a payment of $4 998 was made for the purchase of 3 660 litres of diesel from Redan Petroleum and on
August 17, 2015, a payment of $9 996 was also made for the purchase of 7 460 litres of diesel. No records of these purchases were made in the fuel register although the bank statement showed that the money had been transferred into the supplier’s account on March 19 and August 24, 2015 respectively. Furthermore, there was no evidence that the fuel was received by the Ministry as receipts from suppliers were not produced for audit. Follow ups on progress of the requisition were not done.
The Ministry informed the Committee that the outstanding 3 660 litres of diesel worth US$4 998 procured on March 10, 2015 was resolved and the coupons were collected and recorded in the register. Evidence in that regard was availed to the Committee. With regards to the 7 460 litres of diesel worth US$9 960.40 procured on August 17,
2015, the Ministry indicated that the coupons were collected on August 25, 2015. The 7 540 litres of diesel recorded in the register was attributed to the amount in question and the variance of excess 100 litres was ascribed to the change in price. The Ministry assured the Committee that tight control measures have been taken to guard against recurrence in future.
4.1.6.1 The Committee recommends that the Ministry
should obtain confirmations from Redan Petroleum to facilitate reconciliations with the 7 560 litres of diesel recorded in the register by December, 31, 2016.
4.2 STANDARD DEVELOPMENT FUND, 2013 AND 2014
4.2.1 Levy Income (2013)
Section 3 of the Standards Development Fund Act [Chapter 14:19] stipulates that the Minister may, by Statutory Instrument, impose a levy on such class or description of employers as may be specified by notice. The audit observed that the Fund had no comprehensive list of employers upon which the levy is imposed. The completeness and accuracy of the levy income figure of $12 846 938 disclosed in the financial statements could not be validated.
The Ministry indicated that the Fund employer’s list is compiled from the inspectors’ reports. The inspectors make physical visits to employers where employees are determined, registered or identified.
The employers’ list forms the database for the Standards Development
Fund. The Ministry was in the process of computerising the employers’ list as previously it maintained manual records. Evidence availed to the Committee showed that the client database is now in place and being updated regularly and as such the observation had been cleared to the
Committee’s satisfaction.
4.2.2 Poor recovery of debts (2014)
The Audit observed an outstanding debt amounting to $$677 122 and a total amount of $676 306 (99.8%) had been outstanding for more than two years, with some balances back dating to 2009. This shows that the Ministry had serious challenges in recovering of debts and risk loss of revenue for the Fund.
The Ministry acknowledged the observation and highlighted that the figure of $677 122 was mostly made up of debts from local authorities which included rural district councils. Part of the debt was for Mutare Border Timbers which was under judicial management. Intense follow ups were done and reaped very few positive responses. Few of the local authorities made payment plans. Frantic efforts were still being done to clear the outstanding debts but due to the prevailing economic challenges, it has been fruitless. As regards the Border Timbers’ debt, the Fund had attended creditors meetings where debts were ranked and are waiting for the court’s decision. Evidence availed to the Committee showed that outstanding levy debtors were handed over to the Civil Division through a letter written on July 20, 2016. A letter was also sent to the Ministry of Local Government, Public Works and National Housing on July 11, 2016 seeking assistance in the recovery of the outstanding debts from Local Authorities.
4.2.2.1 Recommendation
In relation to the amount owed by Mutare Border Timbers, the Ministry should vigorously pursue the debt with the judicial manager and bring the matter to closure by 30th April 2017.
4.2.2.2 In view of the challenges faced by local authorities,
Government should closely look at the objects of the Fund vis-à-vis the challenges facing local authorities and may consider taking over the debt.
4.2.3 Unidentified Deposits (2013)
The audit observed that the Fund was taking long to clear the figure for ‘Unidentified Deposits’ which amounted to $937 423 as at
December 31, 2013. These were direct deposits in the Fund’s bank account for levy fees but could not be directly linked to specific clients. By the time of concluding the audit, only $807 427 of this amount had been cleared and receipted. This will result in debtors being misstated.
The Ministry informed the Committee that unidentified deposits arise from deposits that have insufficient details for issuance of receipts despite the fact that the Fund has customized deposit slips. These deposit slips were now available at all CBZ branches countrywide. The $937 423 unidentified deposits for 2013 were cleared. However, the issue recurs every year but the figure for the unidentified deposits has been reduced significantly. The Ministry pointed out that the Bank had indicated that they have challenges with RTGS transfers made through other banks and the process takes a bit of time since most of the deposits will be in archives.
4.2.3.1 Though the unidentified deposits have been cleared, going forward the Ministry should ensure that any unidentified deposits are cleared timeously.
4.2.4 Interest on Investments (2013)
Section 13 (2) of the Standards Development Fund Act [Chapter 14:19] states that any excess funds not immediately required for the purposes of the Fund may be invested after approval by the Minister responsible for Finance. Contrary to this provision, there was no evidence that the Ministry had taken steps to invest surplus funds of $6 647 649 that were in the bank account during the year. Consequently, the Fund had a nil balance on the ‘interest on investments’ item compared to the $588 657 that was received in the previous year.
The Ministry acknowledged the observation. The Permanent Secretary indicated that the authority to invest surplus funds is granted by Treasury and of late, Treasury has not been granting such authority due to pressing Government commitments which resulted in Treasury recalling some funds to meet expenditures hence the nil balance for interest on investment in 2013.
In the Committee’s view, funds are normally set for a specific purpose. One wonders whether the recalling of revenue generated under a Fund by Treasury would really justify the existence of such a Fund. Surplus funds of such magnitude might be an indication that the levy could be unjustifiably higher and at the end increase the costs of doing business.
4.2.4.1 The Committee recommends that Treasury going forward should allow part of the excess funds to be invested to allow the fund to earn more income in the form of interests from invested funds.
4.2.42 In view of challenges facing local authorities in terms of paying the levies under the Fund, Government should consider reviewing the levy levels to ensure affordability beginning the 2017 financial year.
4.3 TRADE MEASURES FUND 2010 TO 2014
4.3.1 Absence of Financial Records
For four consecutive years, the Fund did not maintain books of accounts such as cashbooks, ledgers and registers in which financial transactions are recorded. This was in violation of Section 35 (6) (a) of the PFMA. This is despite the fact that the Fund collected substantial amounts, for instance, in 2013 the total revenue was $132 213 against a total expenditure of $160 448; in 2014 the collections substantially increased to $230 125 while expenditure stood at $243 441 and in 2014 again collections increased to $267 226 and expenditure was $369 241. Financial statements were prepared from bank statements, subcollectors’ schedules and payment vouchers. The audit could not confirm whether all financial transactions were accounted for as payment vouchers were not numbered and monthly bank reconciliations were not performed.
Furthermore, the financial statements disclosed a suspense account with a balance of $33 840 which remained uncleared at the time of concluding the audit. As a result, the audit was not able to establish whether the financial statements were free from material misstatements.
In such circumstances, fraudulent activities cannot be ruled out.
The Ministry indicated that it did not have personnel with accounting skills at the regional offices, and as a result, it relied on assistant clerks who in some cases recorded debtors incorrectly and they had to redo all the accounts for the years. The Committee is pleased to note that accounting records were now in place. However, the suspense account remained unresolved.
4.3.1.1 The Committee recommends that the Ministry investigate and clear the suspense account by December, 31, 2016.
4.3.2 Procurement - Goods and Services not delivered
Since 2012, the Auditor General has from year to year raised concern over delays by the Fund in receiving goods and services from suppliers who would have been paid substantial amounts of money as deposits. There was no evidence that Fund officials followed up on outstanding orders. Applied Weighing Scales failed to meet delivery, installation and commission dates of four (4) weigh bridges in Harare, Gweru, Mutare and Masvingo at a total cost of $496 340. The work was supposed to have been completed by September 30, 2014. As at September 14, 2015, the weigh bridges had not been delivered despite the fact that a deposit of $312 694 was paid in March 2013.
The Ministry admitted with regret that a considerable amount was paid to the contractor without a Bank guarantee and that no deliveries were made to date. Efforts to follow up on the deliveries with the contractor were fruitless. The Ministry did not satisfactorily explain why public funds of such magnitude were committed without adequate security. The Ministry indicated that it handed over the issue to the
Attorney General’s Civil Division for legal action in order to recover the deposit with interest thereof.
The Committee noted with concern that no due diligence was done in the procurement process hence a case of potential loss of public funds.
4.3.2.1 The Committee recommends that disciplinary action be instituted against officials who handled the transaction by
December, 31, 2016. It also recommends that the Ministry should institute criminal proceedings against the Applied Weighing Scale
Company for fleecing Government resources by 31 December, 2016.
4.3.3 Absence of Accounting Officer’s Instructions
The Audit observed that the Fund was operating without
Accounting Officer’s Instructions contrary to the provisions of Treasury Instructions 0706 which stipulates that the Accounting Officer should issue detailed instructions governing the conduct of financial business and control of public monies and property for which they are responsible. The Ministry indicated that it had finalised the draft
Accounting Officer’s Manual and has since forwarded it to Treasury for approval. The Committee noted that the Ministry had taken corrective action and the observation has therefore, been addressed.
4.3.4 Debtors
The Audit observed that the Fund advanced $61 109 to the Parent Ministry during the year 2009 to use on expenditure ordinarily met under the Appropriation account. No documentation was produced as authority for this advance. The amount was supposed to be refunded when releases were received from Treasury. However, the Ministry in
2016 is yet to reimburse the money.
The Permanent Secretary informed the Committee that investigation revealed that the amount was overstated as it included $30 000 payments from Bid Funds. The Ministry had requested authority from Treasury to utilise the account for the Fund. The balance of $15 000 was used for payment of G15 subscriptions and they were making efforts to reimburse the Fund.
The Committee noted with concern another violation of a Fund Constitution whereby the Ministry resorted to Fund revenue to support expenditures ordinary funded under the Appropriation account. There is a risk that Fund objectives will not be met as funds are utilised for unintended purposes.
4.3.4.1 The Committee recommends that the Ministry should submit evidence of the alleged errors, overstated amount of the debt and Treasury authority to utilise funds under the Fund by 31 December, 2016, failure to do so, the Ministry should reimburse the Fund by the same date.
5.0 CONCLUSION
The Committee expressed deep concern on the reluctance of the Ministry to be up to date in terms of preparing and submission of accounts for Funds for purposes of auditing. In 2015, the Ministry was still reporting on 2013 and 2014 Accounts for the two Funds, namely the Standard Development Fund and the Trade Measures Fund. This is a serious violation of the PFMA considering that the Funds are collecting considerable amounts of money. For instance, the Standard
Development Fund had in 2013 a total revenue of $13 239 369 against expenditure of $20 310 472, in 2014 the revenue stood at $14 271 437 and expenditure of $14 352 941 and in 2014 had a total revenue of $14 543 662 while expenditure stood at $9 696 926. The Ministry also did not properly manage public resources considering payments made for undelivered weighbridges and lack of follow up thereof. The Committee concludes that the accounting officer’s performance should be assessed within this context and given that the Ministry is key in revitalising the economy, Government may need to revisit the employment contract for the accounting officer. Public officials charged with the responsibility of managing public funds should exhibit high level of competencies in the execution of this important mandate.
HON. MARUMAHOKO: Thank you Madam Speaker. The
report that has been presented to the House by the Chairperson of the Public Accounts Portfolio Committee, the observations that we have heard her expressing here are almost observations that are always reported by the Committee from every Ministry without any change year in, year out. If you look at the way the Ministry of Industry’s accounts were run, you may try to blame the Ministry but it was the system that was introduced by the whole Government, that of direct payment to the debtors. It is very difficult for anyone to maintain the books when payment is being made direct by the Ministry of Finance and Economic Development. It is very difficult to follow the events, very difficult to follow all the accounts if payments are made by Treasury.
HON. MUTSEYAMI: On a point of order Madam Speaker. My
point of order is very precise and short. In the gallery we have a Chief and he has not yet been recognised. So, as MDC we need to recognise the Chief.
Hon. Members started clapping and ululating in respect of the
Chief.
THE TEMPORARY SPEAKER: Thank you very much Hon.
Mutseyami, it has been noted but we were still waiting for the name from the Public Relations Office.
HON. MARUMAHOKO: Madam Speaker, for so many times,
the Public Account Committee has reported that Ministries are not taking seriously the reports from the Auditor General, that is the qualified accounts. We have reported time and again and no action has been taken. No reprimands have been proffered to the Ministries, it is always silent. I think it is important that all those Ministries or the Permanent Secretaries that reported to have not taken note of the disqualification of their accounts; some action be taken so that this should not recur time and again.
Madam Speaker, you have heard of some unidentified deposits, that is a very serious observation. Unidentified receipts or monies that have been deposited may end up as fraud because nobody knows where this money came from and nobody knows what to do with the money but the money has been deposited, where did it come from. It has been very difficult for the Ministry of Industry and Commerce to trace the money up to the time we produced this report, none of the money was identified, where it came from, what it meant and what it is supposed to be used for. Those are very serious anomalies in accounts. Ministries should take very seriously these reports from the Auditor General. All in all, I need to thank our Chairperson for a job well done. This is a report that the House should really look into and then adopt it. I thank you.
HON. P. D. SIBANDA: On a point of order, I wanted to find; there is an important development that took place in the country last week in which the Ministry of Primary and Secondary Education introduced a new system of online applications for boarding places.
THE TEMPORARY SPEAKER: Order, order, Hon. Sibanda we have Question and Answer tomorrow and you will be able to ask the Minister himself because right now there is no Minister to respond on that issue.
HON. P. D. SIBANDA: I am not asking a question, I actually wanted to suggest in my point of order that instead of merely answering to questions, the Hon. Minister should maybe give a Ministerial
Statement tomorrow so that Parliament…
THE TEMPORARY SPEAKER: You can only request that
when the Minister is available. It is noted.
HON. MLISWA: Thank you for giving me the opportunity to first of all congratulate ZANU PF for having a peaceful but non productive conference and to also welcome Hon. Shamu into the Central Committee.
THE TEMPORARY SPEAKER: I think Hon. Members, we
should take this House seriously.
HON. NDUNA: Thank you very much Madam Speaker for allowing me to add my voice to the report presented by Hon. Mpariwa and seconded by Hon. Marumahoko. Madam Speaker, there are few issues that I need to touch on that were brought up by this report in particular, the relationships where the procurement Committee is made up of subordinates in an organisation. I also believe that Madam Shonhiwa said in her defence that what was currently obtaining in that Ministry was across the board in all other Ministries.
Madam Speaker, I want to quickly say two wrongs do not make a right. Ministries as they are independent entities and should not relate to each other when it comes to delinquencies and counter delinquencies and when it comes to a skewed modus operandi and when it comes to a flawed way of dealing with economic issues. Madam Speaker, as we are guided by the Public Finance Management Act as Hon. Mpariwa has alluded to was in place more than seven years ago. We need to adhere to the dictates and principles of the same.
What comes to mind immediately is the haphazard nature of giving loans and counter loans by the Ministry of Industry and Commerce without any loan agreements. I come here to the podium very aware of the fact that the Industry and Commerce Ministry is about to release US$2 million to the Judicial Manager of David Whitehead Textiles. If this loan comes through Parliament as ratification for a loan agreement, it will be seen through the thin veil of economic machination by that judicial manager because currently the debts of David Whitehead stand at plus or minus US$15 million to 20 million. The judicial manager will have Ministry of Industry and Commerce believe that David Whitehead can be resuscitated by mere injection of US$2 million against debts that amount to US$20 million. If that loan agreement comes for ratification to Parliament, we will obviously, effectively and efficiently as the National Assembly, Members of Parliament, particularly myself and a few other Honourable Members, including Hon. Chibaya who comes from Gweru where David Whitehead is resident; we are going to see that no amount of US$2 million can resuscitate David Whitehead. However, if they continue on their archaic, moribund and historic way of dealing with modern day issues, where they just ratify and give each other loans which are not ratified by Parliament as agreements, they are going to get this US$2 million stolen and pilfered by the Judicial Manager who, in my view and those Hon. Members like Hon. Phiri who also resides in Kadoma where David Whitehead is also currently resident; believe that turning credit into equity is the only way to save David Whitehead. No amount of money in US$2 million form, coming from Industry and Commerce can resuscitate, rejuvenate and rehabilitate David Whitehead in the form it is now.
Madam Speaker, I say this parallel to the issuance and procurement of fuel that was brought up here without going through loan agreements and counter loan agreements. Such inecestus and flawed ways mechanisms of operation in a Government entity can only get us back 40 or 50 years back, where all of us dealing with issues of BBC or born before computers, historic ways of dealing with modern day economic issues. We need to adhere to Public Finance and Management Act. It has been brought up in this modern day technology oriented year to address economic issues and this should cuts across all fuel procurement departments. I also propose that it all cuts across the portfolio committee that I chair, Transport and Infrastructure
Development Committee. I speak like that aware and cognisant of that it is a multi-billion dollar procurement process oriented parastatal and
Ministry which speaks to transport and infrastructure development.
Madam Speaker, I also need to say what was brought up as an expenditure of US$160 000 against revenue of US$132 000. It can only speak to CCN in this context, Corruption, Collusion and Nepotism. You cannot have an expenditure of US$160 000, where your revenue is US$132 000 and produce receipts that speak to a revenue that is ballooned, it can only mean there was corruption. To cover that, receipts were originated that had effect of ballooning the expenditure against the revenue that was so minimal.
As I conclude, I need to say such reports should find their day where any delinquencies are sanctioned. There is a sanction of some sort against any delinquent director or office bearer so that the Committee which is a post audit committee can then know that their work is cut out for them. Whatever it is that they bring here as reports to audit reports can be adhere to and action can be taken, otherwise they will be found barking all the time in Parliament but to no resolve. I speak like this because this is your committee of Parliament, if you do not call for sanctions of some sort to be imposed on those that are found on the wrong side of the law; you are akin to removing and destroying that committee and you remove the impetus, the zeal that they have in terms of their operation.
Madam Speaker, it is time you put your foot down and call for action on reports such as these ones. This House should adhere to a clarion call that I am making today that no amount of hoodwinking and pulling wool over this House and over everybody in the cotton industry by the judicial Manager at David Whitehead is going to resuscitate David Whitehead in its present state, but only turning credit into equity and removing one office from Judicial Management and giving back the company to its former workers and former retrenches…
THE ACTING SPEAKER: I want to remind Hon. Members that
you can whisper in the House but not shout so can Hon. Nduna be heard in silence.
HON. NDUNA: If credit has been turned into equity only then can David Whitehead attract investors to partner it so that it can be rehabilitated and rejuvenated. The equipment that currently is housed at David Whitehead is both becoming moribund, it is old fashioned and can no longer take modern day operations to beneficiate our cotton and raw material in order to have a final product exported from Zimbabwe.
Government has taken a very strong position to give to cotton farmers three seasons worth of free input. We can only support and complement those efforts of also taking over the US$68 million COTTCO debt by sorting out the beneficiation chain of David Whitehead. This is by removal of the Judicial Manager, turning back credit into equity and attracting investment.
Madam Speaker, I say this aware that an AGM was held quite recently and the judicial Manager really said in that AGM, he is running to the Minister of Industry and Commerce to get US$2 million. By the effort of this debate and by the fact that I stand here today, that should quickly close the door to that machination and remove that Judicial
Manager from his current entrenched position and turn credit of David Whitehead into equity in order to attract the much needed economic investment to certainly emancipate the formally marginalized black majority and beneficiate the cotton industry to its total emancipation.
Thank you.
HON. MARIDADI: Thank you Madam Speaker. I wish to thank the Portfolio Committee Chairperson on Public Accounts for the Report and also the seconder of the Report. My contribution is very short because the facts of the matter have been laid out by the Portfolio Committee Chairperson. The issue I want to raise is that year in year out, we have the Portfolio Committee Chairperson on Public Accounts presenting reports to this Parliament; reports that speak to corruption in Government, corruption in Ministries and incompetence by Government employees, especially Accounting Officers that is those in charge of ministries, like the permanent secretaries; but not a single permanent secretary has been censured or fired.
Mr. Speaker Sir, what is happening in the Ministry of Industry and Commerce is a reflection of what is happening in the country. There is nothing that is happening in the Ministry that is not happening countrywide. The issue that we must deal with in this country is the issue of corruption. We have a fantastic legal framework to deal with corruption. In case of finances, we have the Public Finance
Management Act which is enshrined in our Constitution. It states how money that is appropriated to Ministries should be dealt with, how money should be accounted for and this is not happening.
Mr. Speaker Sir, all the accounting officers that have been summoned to the Portfolio Committee on Public Accounts have not lived up to the expectations of the Public Accounts Committee. They failed the test and recommendations are made by the Public Accounts
Committee but these are ignored by Government, by the Executive. Mr.
Speaker, there is need for political will in this country to deal with corruption. The problem that we are having in this country is not the problem of David Whitehead – [HON. MEMBERS: Inaudible
interjections.] –
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Order, order. Hon. Members, the Speakers who have been here before me have pleaded with you to lower down your voices but no one is taking heed of that. Please, this is the last warning before the axe falls on you. You may continue Hon. Member.
HON. MARIDADI: Thank you Mr. Speaker. The problem that we have in this country, the Public Accounts Committee will continue to summon Ministries, continue to compile reports and will continue to present reports in this House. What I have realised is that we could get a report by the public accounts committee from 2014 and just change the date and figures and the report will read the same. It is a problem of incompetency, a problem of failure to account for money, a problem of giving loans to people who do not deserve them, loans that are never paid back to Government. So, the problem that we have is institutional, it is not a problem of individuals that run Ministries. It is not a problem of permanent secretaries. It is an institutional problem because there is no political will in this country to deal with corruption.
There is not a single Ministry that has not been cited in the Auditor
General’s Report for corruption and there is not a single Minister who has not been cited for issues of corruption and yet there is not a single permanent secretary who has been taken to court and equally there is not a single Minister who has been taken to court for corruption. We have an institution which is – [HON. MLISWA: Inaudible interjections.] –
THE TEMPORARY SPEAKER: Order. Hon. Mliswa, we are
in an hourable House. If you want to debate, if you are excited, you wait for your turn. We will give you the turn to debate but please, maintain your composure. You may proceed.
HON. MARIDADI: We have the institutional framework to deal with corruption. We have ZACC which a creation of the Constitution. The Auditor General’s Office is a creation of the Constitution. The Auditor General’s Office audits ministries and Government institutions,
presents reports in this Parliament...
ANNOUNCEMENT BY THE SPEAKER
VISITORS IN THE SPEAKER’S GALLERY
THE TEMPORARY SPEAKER: I would like to recognise in the Speaker’s Gallery, the presence of Chief Mutambara and Chief Muushwa from Manicaland Province. You are most welcome. You may proceed Hon. Member. – [HON. MEMBERS: Hear, hear.] –
HON. MARIDADI: Thank you. Mr. Speaker, the institutional framework to deal with corruption in Zimbabwe is there. The
Constitution is very clear on what should be done in cases of corruption but what is lacking in this country is the political will to deal with corruption. I continue to come back to that, as long as somebody, somewhere makes a deliberate move to deal with corruption, Hon. Mpariwa as the Chairperson of the Portfolio Committee on Public Accounts will again come back in the coming season and present a similar report on issues of corruption that have not been dealt with.
Mr. Speaker, other jurisdictions like Kenya, when you are employing somebody who deals with public funds like permanent secretaries, the interviews are done in public and the CVs put in the public domain. People scrutinise the CV and when interviews are done they are done in public. Mr. Speaker, when this particular permanent secretary from the Ministry of Industry and Trade came to the Public Accounts Committee, after she had been questioned, one of the Members of Parliament asked her what she thought her performance was. As members of the Portfolio Committee, we rated here performance at below five out of ten. This is a person who is running a ministry which is responsible for the resuscitation of this economy and yet she performs below par.
Mr. Speaker, the problem that I see in this is that we have jobs for friends. People are appointed on the basis of patronage, people are appointed on the basis of political affiliation and these are not necessarily people that are competent to do the job. That is the problem that we have. For as long as we do not take the issue of corruption seriously, we will come back to this House and talk about ministries not adhering to the Public Finance Management Act.
In conclusion Mr. Speaker, I want to make a call to the
Government of Zimbabwe especially, to the Chief Executive of the Government of Zimbabwe. The State has three arms, the Legislature, the Judiciary and the Executive. Each arm has specific functions and specific mandates. Mr. Speaker, when Parliament has done its oversight role on ministries and comes to this House to present a report and make recommendations to the Government, the Government has not acted on those recommendations. Mr. Speaker, what remains is for me to say the
Head of State and Government and the Commander-in-Chief of the Defence Forces, President Mugabe, as the Chief Executive of this country, must now start making a move to deal with issues of corruption.
Mr. Speaker, in the just ended ZANU PF Conference, where all Ministers were there, some of the most corrupt people were accredited to sit in the same House with the Head of State and Government. Some of the most corrupt people, some of them are actually on the wanted list of police but they were sitting there. The level of impunity in this country is unbelievable – [HON. MEMBERS: Inaudible interjections.] –
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Order, order please!
HON. HOLDER: Thank you Mr. Speaker. I was saying my point
of order is that Hon. James Maridadi did not attend that Conference. He cannot talk of something when he was not there. He was just watching and assuming. So, he must not mislead this House. – [HON. MLISWA:
Inaudible interjections.]- You were not there also Themba Mliswa.
THE TEMPORARY SPEAKER: Order, Hon. Mliswa, Order
Hon. Members! Hon. Mliswa this is my last warning to you. May you continue Hon. Member?
HON. MARIDADI: Mr. Speaker, I want to make it very clear. The reason I would follow the ZANU PF Conference on television from start to finish is very simple. ZANU PF is the governing party. The policies of Government are derived from a ruling party’s manifesto.
When ZANU PF goes to a Conference, what they agree at the Conference influences Government policy. It is for that reason Mr. Speaker that I can speak about the ZANU PF Conference. The reason
ZANU PF Conference was live on TV was for all of us to see. Mr.
Speaker, in conclusion...
THE TEMPORARY SPEAKER: Let us speak to the report Hon.
Member. What is your point of order Hon. Chinotimba?
*HON. CHINOTIMBA: Hon. Speaker, the Hon. Members are
discussing issues pertaining to ZANU PF, which was not mentioned by Hon. Mpariwa. ZANU PF is a ruling party so, they have a problem that they were beaten and now, they do not know what to say. They should refer to the issue of their defeat in the elections. What we have come here to present to the people is what should we do, and not about parties. When it comes to party issues, we defeated them just like what happened to Mrs. Clinton. So, let us talk about building the nation. Thank you.
THE TEMPORARY SPEAKER: Order Hon. Members to my
left. Hon. Chinotimba, you have spoken but you were now lecturing.
You should be specific to your point of order.
*HON. MAONDERA: My point of order Mr. Speaker is very
simple. We want to hear this debate. Some of the points of orders being raised are just for show off because there is a new member.
*THE TEMPORARY SPEAKER: What is the excitement
about? Order Hon. Members, Order! I am talking to you Hon. Member.
There is no point of order because you have acted exactly like Hon.
Chinotimba. Continue with your debate Hon. Maridadi.
HON. MARIDADI: Thank you Mr. Speaker. I think I must conclude my debate. I want to say we are getting into Christmas and we are getting into 2017. It is my sincere hope that getting into 2017, this Government gets serious dealing with issues of corruption and that when they deal with corruption, what we have been taught as Zimbabweans and the world over is that when a fish is rotting, it starts from the head. When you are dealing with corruption in Ministries, you deal with the Minister. When a Minister is stealing and is not arrested, I do not see why a Permanent Secretary should not steal because they know they will not be arrested. I also do not see how junior officers would also not steal.
What I can tell you Mr. Speaker is that if we arrest four or five Ministers, the problem of corruption in Zimbabwe will be over. We only need to arrest four or five Ministers and fortunately, Hon. Chinamasa is not one of them, but he knows his colleagues who are corrupt. We arrest four or five Ministers and the problem of corruption in Zimbabwe is over and Hon. Chinamasa’s job will be easier. Of all the people in this Government, he is the most sincere, honest and hence the poorest. There are people in this Government who were drivers in 1998. Their only qualification on their CV was that I am 19 years old and I have a Class 4
Driver’s licence. Simply driving vehicles, but today, we see them building the most expensive houses – where did they get the money from?
I am not referring to anyone by name. There are people that were high school teachers in 2002. Today they are Ministers and they have the most expensive houses in Zimbabwe - where did they get those houses?
Mr. Speaker, Government Ministers earn less than $4 000.00 a month. Where do they get that money to build all those houses? We must get serious when dealing with corruption. Getting into 2017, we must arrest a few people and let us allow the Zimbabwe Anti-Corruption Commission to function. I thank you.
*HON. MAPIKI: Thank you Mr. Speaker. Firstly, I would want to thank Hon. Mpariwa, the Chairperson of the Public Accounts Committee for the Report which is to the point. The biggest point we found is that these books that are coming, it has been happening since 2012 up to now. So, the reports that we are tabling should look back because if we look at how the system was in Government dealings, it did not start now. If you look at some of the issues involving money, like the targeted funds which was directed to the Ministry of Health, the Ministry which was there, the Ministry of Finance which was headed by Hon. Biti used to transfer money targeted for hospitals.
If it is prosecuting people, it should start during the GNU process. I felt I should deal with this properly because corruption started during the GNU when Biti was leading. So, if we are to start convicting people we should start from that period. The money that was loaned to ZISCO Steel …
THE TEMPORARY SPEAKER (HON. MARUMAHOKO):
Hon. Chibaya, may you withdraw your remark.
HON. CHIBAYA: Thank you Hon. Speaker, I do not know what
to withdraw.
THE TEMPORARY SPEAKER: Wati kana Mugabe wacho
ngaasungwe.
*HON. CHIBAYA: I do not know Mr. Speaker if it is because you are sitting in that chair that you do not respect Hon Members. Did you say wati or mati?
THE TEMPORARY SPEAKER: Hon. Member, withdraw your
remarks.
*HON. CHIBAYA: I understand but I do not want to be intimidated because I have never felt threatened. I want to withdraw my remarks that even Mugabe should be arrested.
*HON. MAPIKI: I think our greatest challenge in Zimbabwe is that we do not know the proper definition for corruption. Even our laws cannot explain what corruption is. We are not defining whether it is physical or mental corruption because in all instances, people end up not being prosecuted. I think going back, we have seen that there are cases that we thought were corruption, for instance in the Ministry of Energy and Power Development, during the time of Mangoma, a lot of things happened and we thought he would be arrested. However, up to now he is free and we do not know what corruption is.
What I alluded to in the Ministry of Health and Child Care and Ministry of Finance and Economic Development in 2012 and 2013, you will find that a lot of money was transferred into missionary clinics accounts like St Alberts and Chikombedzi. There was no paperwork to show where the money came from and its purpose. All this started during the GNU era. So, a lot of Ministers in the GNU should be prosecuted including Biti and Mangoma.
If we look at the issue of a photocopier machine which was bought for the Milan Expo, no one went to tender but just one person was chosen to supply the equipment which was a breach of the procurement process.
*HON. CHINOTIMBA: On a point of order Mr. Speaker, Hon Mliswa is repeating the same statement that you asked Hon. Chibaya to withdraw. Hon. Mliswa said President Mugabe is protecting thieves. We want to know the thieves being protected by the President and if he cannot tell us he should withdraw that statement.
THE TEMPORARY SPEAKER: Order, Hon Members, you do
not tell me what to do. Hon. Chinotimba, that is a general comment; so there is no point of order.
*HON. MAPIKI: I think when it comes to the books of accounts; you will find that things were not going well at that time. What is troublesome is that during that time, the Ministry of Finance was being headed by Biti and receipts were not being given out. This was just a gimmick for them to steal while they pretended that the system did not work. How can $12 million be put into an account without any papers accompanying the transaction and a photocopier bought for $10,000 and no receipts are produced. What it simply means is that someone was stealing money and pretending to be incompetent.
The report from the Public Accounts Committee chaired by Hon. Mpariwa showed that there was not enough paperwork because people wanted to steal money. This should be seriously looked into because all the people employed in Government are very educated and professionals in their field of work. So it does not make sense to get a report saying there were no receipts for fuel bought for $7000 and this could only be seen on bank statements as money was transferred to the respective suppliers. This means people planned to steal while pretending to be incompetent. I thank you Mr. Speaker.
HON. CHAMISA: Thank you very much Hon. Speaker. I just want to say that we have had an inflow of Ministers, which makes it very interesting as it is very important for our Ministers to appreciate the points that we are raising as Parliament, not just from the opposition benches but even from the ruling party benches. As Parliament, we have a duty to the people, the Constitution and taxpayers. I am saying this because we have realised the propensity and tendency by most Ministers, to literally have a lackadaisical approach to issues of superintending national coffers. I am saying this, particularly in the presence of the Minister of Industry and Commerce because the report we are debating concerns your Ministry. Hon. Minister, it may please you to note that your Permanent Secretary and indeed, your officials in the Ministry have become encyclopedically and legendarily very corrupt to the extent that you may need to take this matter yourself and to the President, to indicate that as Parliament, we have taken a serious notice of the corruption that has dominated the corridors of Government. We say this with a very serious note because you are aware that Cuthbert Dube, through PSMAS, almost raided the coffers of the various contributors of PSMAS to the tune of about $6 million.
Not only that, we have almost $20 million that was not accounted for in terms of another report that was made by the Auditor and
Comptroller General, and nothing was done by the Government. Nothing was also done after Parliament took serious note of the issues that we had raised. Hon. Speaker, I want to say, until and unless Parliament gives a stop to the immunity and impunity of these culprits, we are going to be judged harshly as Parliamentarians, but also as leaders because we are simply allowing coffers of the State to be raided under our watch. What are we supposed to do?
In terms of Section 119 of the Constitution, we as Parliament have the right to call upon Ministers, and when I say Ministers, I am also referring to Minister Chinamasa. I can see that you are in a deep conversation with my brother Hon. Prof. Moyo, which is good but please just listen to this very important …
THE TEMPORARY SPEAKER: Order, Hon. Member, that is
my prerogative.
HON. CHAMISA: Thank you Hon. Speaker. You know I respect your prerogative but we also want our Ministers. They are sitting in these offices on our behalf. We can be ministers, probably better ministers but they are there for us and we must make sure that we ask them to account. This is why I asked them to listen, Hon. Speaker.
I was saying that in terms of the Constitution of Zimbabwe, we are enjoined by this Constitution to come here and demand answers where there are no answers and where there are questions. Right now, you know that the President told us Hon. Speaker Sir, that we have $15 billion that disappeared in the diamond sector but it is business as usual. We cannot just ignore $15 billion having disappeared and the President is aware of the disappearance of that $15 billion. We want Parliament to say we want the President to look for the $15 billion. Perhaps he knows where it is but we want the Ministers to be accountable for that money.
This is very important Hon. Speaker, if you look at the report that has been presented. Just in regard to the issue of the coupons, people were taking fuel from Redan without any accountability. No record from Redan – [HON. KASUKUWERE: How?] – Yes, you may say how Hon. Kasukuwere, but this is happening under your watch and you will be busy with other wars that are not necessary instead of fighting – [Laughter.] – So, you cannot ask me how – [HON. MEMBERS:
Inaudible interjections.] -
Hon. Speaker Sir, I wish to refer you to the Standing Orders in terms of the reports that are coming from our Portfolio Committees. I have received very powerful committee reports. There was one from the
Committee of Agriculture; Youth and Indigenisation; Health by Dr. Labode and even, we have heard many reports but our Ministers are simply ignoring these reports yet we have a clause and provision in the Standing Orders. That is Standing Order Number 26 (2) that says, once a report has been given to Parliament, we must, in all cases, within 10 sitting days have a response from the Minister. But I can tell you that Ministers have not come here to report or respond to our reports and this continues.
What we want is to make sure that a Minister, who does not come here, let it be a combined effort by ZANU PF and MDC MPs, the MPs of this country to say, please account as a Minister. Come here and account. We have given you nice cars to drive and nice perks to have, account for them. We want our Ministers to come here and respond to the reports. This report is a very important report but I can assure you Hon Speaker, after the 10 sitting days, no report is going to be responded to. Why? It is because as Parliament we have become a toothless bulldog. In fact, it is okay for a bulldog. We have become a toothless puppy. Not even a puppy, we are a poodle. If we were a bulldog, we would understand. We have become a lapdog of Government.
We must move away from waiting as resources are being plundered. This is what is killing ZIM ASSET, the economy and future of our people. If we come together as a people and say to Ministers, please account, we teach our Ministers to come here, not for a hunky dory affair but to account for things that are supposed to be done. We want these things to be done Hon. Speaker and it is backed by the law.
Ministers are supposed to come here and account for what they do. Hon.
Mpariwa moved a very good report, seconded by Hon. Marumahoko.
We do not want this report to just go down the drain. This report must be given the seriousness it deserves. Why, because there is violation of the law. Why, because there is corruption in the corridors of Government. Why? Because we have people who are violating the statutes of our country and we need to just look at Section 84 of the Public Finance Management Act. We are supposed to have audit committees in all these Ministries but not even a single Ministry has an audit committee. Why? It is because they do not take the laws seriously
– [HON. WADYAJENA: Chamisa waive Minister iwe.] – Yes, I was a
Minister and I will become a Minister very soon – [Laughter.] -
Hon. Speaker, we have seen that there is not even any proper documentation in terms of just tracking of debts that have been incurred by the Ministry. This tells you about the general attitude or character in Government. There is no accountability; it is almost like wapusa wapusa because there is darkness. You know that all bacteria do not want accountability. No bacteria will ever switch on lights. Why? Because they know that they are simply creating a difficult environment for them to thrive and this is what we must be able to deal with.
We have heard about procurement Hon. Speaker, and I know that there is a Bill that is before the House on procurement. We need to move with speed to make sure that we put the necessary framework on procurement and move to e-procurement. Why do we need eprocurement? E-procurement is going to eliminate a lot of shoddy dealings when it comes to procurement within Government. I know Minister Chinamasa understands that we have to move into a smart mode as a Government. In other jurisdictions Hon. Chinamasa, through you Hon. Speaker, governments have now moved into what is called an i-gov platform (Intelligence Governance or Smart Government Platform) or even an e-government platform at very rudimentary levels. Why, because you are going to then track every dollar within the system through the Public Finance Management System but also through our on-line project so that we are not going to have the shoddy dealings.
At times Ministers do not get enough resources but you know where they get their money? I was a Minister and I know colleagues who would actually brag about the deals around procurement on roads, airports, water treatment and so on. This is what we must curb through e-procurement. To do this Hon. Speaker Sir, let us also move Government away from the paper platform and archaic platform to a smart Government platform so that we are able to respond to our issues. I was looking at the Global Competitiveness Index Report, Zimbabwe has been ranked poorly and the reason it is so is that the first pillar, which is very important out of the 12 institutions has not been ranked properly. We are number 125 out of 140, why? The reason is that we have not built sufficient institutions to account for proper Government and accountability within the corridors of Government.
What do we need to do? Hon. Speaker Sir, with speed, I would recommend that let us show a difference, starting with this report.
Within 10 days, let the Minister come to us and respond to this report.
After responding, let us have all the culprits, including the Permanent Secretary, who has been implicated, they have to be arrested. Why are they supposed to be arrested? To send a signal that we do not tolerate nonsense. However, we should not end with the Permanent Secretary, let us also approach the Minister and if possible invite the Minister to visit the police and account why he/she allowed such things to happen. It is important, this is Hon. Minister Bimha. We want Ministers to account for what they are doing. They must explain to the police why they have allowed such a thing to happen. Once we start doing that, our country is going to turn around within a fortnight. I can assure you that a turnaround is just a minute away, it is just an effort away but it is our actions as Government. Thank you Hon. Speaker Sir.
Hon. Mliswa having stood up to speak at the same time with the Hon. Minister of Finance and Economic Development Hon. Chinamasa and arguing on who should be recognised by the Speaker to speak first.
THE TEMPORARY SPEAKER: Order, order! – [HON.
MEMBERS: Inaudible interjections.] – What is the noise about?
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA):Mr. Speaker Sir,
Government business today must be given prominence and I am therefore moving – [HON. MEMBERS: Inaudible interjections.] – that the debate do now adjourn – [HON. MEMBERS: Inaudible
interjections.] –
THE TEMPORARY SPEAKER: Order Hon. Members.
HON. CHINAMASA: Mr. Speaker Sir, I move that the debate do now adjourn – [HON. MEMBERS: Inaudible interjections.] –
*HON. MARIDADI: Mr. Speaker Sir, let me say out a point of order. My point of order is that, earlier on, you recognised Hon. Members who were supposed to speak. The Hon. Minister came in late, we have laws and regulations in this House and Ministers must respect them. We are not at a political party rally, where they do what they want because of seniority. This is Parliament; it is the legislature and Hon.
Mliswa want to debate issues of making the Constitution. Thank you –
[HON. MEMBERS: Inaudible interjections.] –
THE TEMPORARY SPEAKER: Order. I will make a ruling, not anyone else. Hon. Minister, I am going to give Hon. Mliswa a chance to speak – [HON. MEMBERS: Hear, hear.]
THE TEMPORARY SPEAKER: What is the excitement about? This is Hon. Mliswa whom you know, what is funny about it. He does not look different.
HON. MLISWA: Mr. Speaker, I want to thank you for recognising the independent candidate – [HON. MEMBERS: Inaudible interjections.] – Sorry, the independent Member of Parliament. Mr.
Speaker, I want to support both sides. May I begin by saying, His
Excellency, the President of the Republic of Zimbabwe, Cde. R. G. Mugabe is to record in this august House of speaking about zero tolerance to corruption. The first time I got into Parliament before I was expelled, he spoke about that, on my return to Parliament, he equally spoke about it.
I am one who is fortunate that whenever I am in Parliament and the
President addresses, corruption is topical in his address. Equally, I read the message from the leader of the MDC denouncing corruption amongst the councillors from MDC. I want to pounce on corruption because the report by the Public Accounts Committee clearly exposes the lack of accountability and political will to deal with corruption. For as long as we do not deal with corruption, we have no business to talk about, it has become cancerous. If I recall, in my first term of being a Member of Parliament, this House tried to propose an ad-hoc committee to deal with anti-corruption.
Mr. Speaker Sir, it was important that Members of Parliament who have oversight over the Executive equally have a mandate to be able to supervise and scrutinise anybody, because our oversight is of everyone. That ad-hoc committee was crushed and corruption escalated to alarming levels. Sadly, on my return to Parliament, it is even worse. We have just had a situation where the Auditor General has constantly and has a Constitutional mandate to be able to report on how Government departments are spending or are held accountable. The reports have been terrible, to say the least. There has not been any action taken as a result of the reports, which implies that Government is wasting money paying people who are doing their job but there is no follow up on those reports.
It is important that the Auditor General’s Report, who is mandated to look into the accountability of all Government departments, is taken seriously. Ministers have become an embarrassment to this nation, they do not have shame, despite them being asked to account, they are not prepared to account. Mr. Speaker Sir, you cannot avoid talking about ZANU PF, which is the ruling party. In fact, I would like to say the governing party, they govern, they are the Government of the day and it is made out of ZANU PF. ZANU PF itself protects corruption by even setting up a special committee in the Politburo to protect Professor Moyo. When the Prosecutor-General himself has written a letter which is an arm of Government empowered by the Constitution to investigate, that does not happen. We see a situation where, even the Minister of
Home Affairs, when I questioned him about the letter from the
Prosecutor-General, he professed ignorance but the letter is there.
It is pretty clear that the President must walk the talk on corruption. We are not school going children who are excited. The very same party will find it difficult to be in power. I look back because some of you will not come back as a result of corruption.
THE TEMPORARY CHAIR (HON. MARUMAHOKO):
Order, address the Chair.
HON. MLISWA: You shall be punished dearly by the
Constituents because you are aiding to corruption. I want to support
Hon. Chamisa’s point and we as Members of Parliament must ensure that our dignity and integrity is intact. We must exonerate ourselves from the behavior of the Executive. A Member of Parliament for ZANU PF is not a Minister or Executive. We should walk together on this for us to show that there is a concern.
The President equally acknowledged about the US$15 billion which went missing. Up to now, there has not been an investigation, neither has there been a probe to bring the people to book. We now have Members of Parliament wasting time and resources sitting down on these Committees deliberating a lot of issues which we know very well that there is no political will to address these issues.
My question is, what are we doing here? When you go back to the
Constituencies and people are talking about corruption, look at me. What do you say? What do you say? ZANU PF, MDC; what do you say? The Members of Parliament who are mandated with representing people are poor themselves and failing to discharge their duties. We just got about US$30 million in Parliament but yet we are busy endorsing monies to go to Government Departments which are stealing.
We must take this seriously. We cannot continue. As Members of Parliament, we should speak for the voiceless. Who is speaking for the voiceless? They are not here represented but it is as if some are dumb. They see but they do not talk. What did you come to do in Parliament if you are not able to denounce the cancerous corruption which even the President and First Secretary of ZANU PF has equally spoken of members of ZANU PF. Who really are you supporting? I would expect you to support the voice of His Excellency. In supporting the voice of His Excellency, denounce corruption, expose corruption and let us deal with corruption.
We have the Hon Vice President Mnangagwa, who each time I see him on television, is denouncing corruption. He is equally the Minister of Justice but being the Minister of Justice which is an arm of the Government that deals with the judiciary system; there is not much being done. The President is paying lip service to corruption. When the Head of State pays lip service to corruption, the 2I C (2nd in charge) will equally do the same because the Vice President cannot go against the President.
Now, when corruption happens, it is now reduced to factional fights. We do not care about the factional fights. Whether you have stolen or not, you must appear before the courts. Do not hide behind factions. Madam Speaker, we do not eat factions. This House is not about factions and the business should not be about factions. It must be about Parliament having oversight. Even if you belong to a faction,
Parliament has oversight over your faction.
THE HON. DEPUTY SPEAKER: Order Hon. Member, address
the Chair. I do not know where the factionalism is coming from concerning this report.
*HON. CHAMISA: On a point of order, for the safety of
Ministers; may the Hon. Mliswa debate whilst standing on this side –
[Laughter.]-
*THE HON. DEPUTY SPEAKER: Order, order, Hon. Chamisa,
Hon. Chamisa has got the right to debate standing on a side that he wants – [HON. MEMBERS: Inaudible interjections.]-
*HON. CHINOTIMBA: On a point of order, I think Hon. Chamisa is correct in what he has said because Hon. Mliswa is spitting whilst speaking. It is like we are outside and it is raining. He should move over to that side.
THE HON. DEPUTY SPEAKER: Hon. Member, please take
your seat. Hon Mliswa, please proceed with your debate.
HON. MLISWA: Thank you Madam Speaker. Hon. Chinotimba,
I will keep talking to you and you shall get irrigation…
THE HON. DEPUTY SPEAKER: Order Hon. Member of
Parliament for Norton, it is my appeal that you stick to the debate of the report of the Committee please.
HON. MLISWA: I take note of that Madam Speaker but because of lack of irrigation, I thought I would also be helping Minister Made to ensure that we increase the irrigation capacity of the country –
Laughter.]-
Madam Speaker, I still go back to the point which I was on that Members of Parliament must not be moved by factional fights in any party. We have oversight and we must …
THE HON. DEPUTY SPEAKER: Is this in the report? - [HON.
MEMBERS: Yes!] -
HON. MLISWA: What we are debating about is a report on
Public Accounts. Public accounts, whether you like it or not, involves accountability and transparency, but we have failed to execute as a result of corruption - [HON. MARIDADI: Inaudible interjections.] - THE HON. DEPUTY SPEAKER: Order Hon. Maridadi!
HON. MLISWA: Madam Speaker, it is equally important that as Members of Parliament, when we are here to discharge our duties regardless of the political parties we belong to, we have a mandate to serve the people. We have a mandate to serve the nation. Equally, we also call upon Ministers who are appointed in trust by the President to also ensure that their mandate is met. But quite clearly that certainly is not happening.
Madam Speaker, we will continue referring to the ruling party because it is the governing party. If it were not the governing party, we would not refer to it. As such, they have equally come from a conference which we hoped – it was a national event where we hoped that the issues of corruption will be brought up seriously; but instead, the Head of State now is leaning towards factions, saying that you must not be penalizing people so that you get into power. I was a bit shocked because I had hoped that he would go on his tone in terms of dealing with corruption because His Excellency, on numerous occasions has spoken about corruption.
What is lacking is the action and the action has got to start with even one of your most favourite children that you have. Even your obedient son is equally subject to the law. There is no one who is not subject to the law and I think it makes a mockery of the entire system of who we are. By debating on this, I want the nation to understand that Members of Parliament are clearly failing. They are debating in terms of corruption and I want to applaud some Members from ZANU PF like Hon. Nduna who was very clear about corruption that there is no political will which really renders us useless at the end of the day. Why we are here is the question that I was asking. Equally, the question is that why do we then have the Speaker and the Deputy Speaker when we are not able to debate issues which will then be implemented at the end of the day?
This is a Public Accounts report and in Public Accounts,
Government is subject to scrutiny. I do not want at all to seem willingly to be personal with Hon. Prof Moyo but he is in charge of the Higher and Tertiary portfolio in Government. He is equally in charge of ZIMDEF and we have a body mandated to investigate corruption which is Zimbabwe Anti Corruption Commission. To date, it has carried out tasks and it has equally recommended that there should be an arrest. For your own information, members who investigate, who are part of the investigating team in ZACC are commissioned police officers. These people are recommended by the Commissioner General himself. These people have gone through a system which we all have paid money for. They have taken oath but when they then investigate and you doubt them; when we are equally doubting institutions which are in the Constitution, where are we going as a country?
If surely Hon. Prof. Moyo has no case to answer, what we know before is that he just appeared before the courts like what some of us have done before. The Deputy Minister is before the courts but what then surprises everyone is that the Deputy Minister is before the courts but the Minister is not. How could you accuse the Deputy Minister when we talk about the role of oversight by Ministers. Ministers, do not spend too much time drinking tea in Cabinet. I think you must equally spend time in having oversight over your personnel. You are responsible for the Ministry and the Permanent Secretary is not. We now need the head to really know what is going on. Failure by the head to know what is going on, you are equally implicated. How are you exonerated?
The aspect of ZIMDEF is a subject of accountability and the Public Works has a role to play. The report exposes quite a lot in terms of where we must be going. I say this today, we are getting tired coming to Parliament as if we are aiding corruption. Some of us are equally sick because we do not want to be associated with deliberations that focus on corruption. We are now being accused of equally being corrupt yet these Members of Parliament are poor –[HON MEMBERS: Inaudible interjections]- I want to applaud the Public Accounts Committee chaired by Hon. Mpariwa that despite the hardships we face as Members of Parliament, I must commend you for doing your job because in a situation like this, you are likely to be corrupted by those who are corrupt and those who have money but you have stayed away from corruption and you are actually doing the country a great service. When people are serving their country honestly, they must be rewarded by results.
The Government of National Unity was also equally corrupt. It had ZANU PF, in fact it was the most corrupt institution ever set up in this country. It was equally corrupt. So, I am saying corruption is in ZANU PF and MDC but you do not find it when you come to independent people. To me it is equally important that we speak the truth about corruption. I want to equally support Hon. Mapiki’s contribution when he said that some of the MDC Ministers must be arrested. I agree with him but I must warn him that when the arrests start, they will only be two Cabinet Ministers left in ZANU PF and I hope he is prepared when the exercise starts. I am worried that the by-elections will be so much and for now I do not think the State has resources to really deal with byelections of Cabinet Ministers who are on this side. While that suggestion is important, no one is a sacred cow, it is important for whoever was corrupt in the GNU and now to face the music at the end of the day. I reiterate that your right side Madam Speaker is likely to suffer more casualties than the left side. It is important that we also observe that…
[Time limit]
The Hon. Deputy Speaker interrupted the Hon. Member speaking in terms of Standing Order 88(1).
*HON. CHINOTIMBA: Let me thank the Chairperson of the
Committee on Public Accounts, Hon. Mpariwa for she brought out a lot of issues. The issue of corruption is the one I will talk about. For sure we do not want corruption in this country. It is very true what people are saying that if there is any corruption, it should be nipped in the bud.
What the Hon. Members are talking about might be painful to others but what they are saying is true. Even the President said that corruption is not good. The day before yesterday, we saw Members of the MDC and their leader Mr. Tsvangirai also talking about corruption in MDC led councils. What is surprising me is that when the Ministers are doing their duty, let us take for example Hon. Kasukuwere, he descended on City of Gweru and he fired all the councillors. After doing that we saw…
HON. MARIDADI: On a point of order. The issue that Hon.
Chinotimba is talking about, I think it is also important to be factual because the councillors of Gweru that he is talking about were exonerated by the courts and there is a court order that they should go back to work. Hon. Kasukuwere is actually the one who is in the wrong because he is ignoring a court order.
THE HON. DEPUTY SPEAKER: Hon. Members, can we be
very careful on our debate. We are now diverting from the report by Hon. Mpariwa. We are not talking about councils, Hon. Chinotimba, could you please proceed with your debate.
*HON. CHINOTIMBA: Thank you Madam Speaker, Hon.
Chamisa was really articulate that when the Ministers are not doing their job, they should come and report. Now the Ministers are working but they will be an uproar that why are you persecuting these people. Leave the Ministers to do their work. Secondly, corruption – [HON.
MEMBERS: Inaudible interjections.] –
*THE DEPUTY SPEAKER: Order Hon. Members, let me appeal
to Hon. Chinotimba that we are debating on the report – [HON.
MEMBERS: Inaudible interjections.] – Order, can we have order please.
Hon. Members to my left please do not help me, I want to speak to Hon.
Chinotimba.
Hon. Chinotimba, you can refer to other issues but concentrate on the report, not what has been spoken by someone.
*HON. CHINOTIMBA: Thank you Madam Speaker. I am
articulating the issue of corruption. I am not out of order, let me speak. Yesterday, the House of the then Prime Minister which he is staying, millions were stolen but no one was prosecuted. So, what we are saying is that the issue of corruption which was talked by Hon. Mpariwa – I am not supporting corruption. Everyone who is involved in corruption should be prosecuted. Even those who steal should be prosecuted because it is not the President who steals – [HON. CHIBAYA: Inaudible interjections.] –
THE DEPUTY SPEAKER: Order, Hon. Chibaya.
HON. MARIDADI: On a point of order Madam Speaker.
THE DEPUTY SPEAKER: What is your point of order?
HON. MARIDADI: I find it amiss Hon. Speaker that Hon.
Kasukuwere, Minister of Local Government, Public Works and National Housing should stand from his position to go and tell Hon. Chinotimba what to say. It is not acceptable. Hon. Minister, you cannot do that. We do not want thugary in this House and the Minister is resorting to thugary and it is not honourable – [HON. MEMBERS: Inaudible
interjections.] –
THE DEPUTY SPEAKER: Order, Hon. Maridadi, you are out of
order. Why Hon. Kasukuwere is sitting on the front bench where
Ministers are supposed to sit. So, how can you complain?
HON. NDEBELE: On a point of order Madam Speaker.
THE DEPUTY SPEAKER: What is your point of order?
HON. NDEBELE: If you continue in this way you will make the situation ungovernable.
THE DEPUTY SPEAKER: Which way?
HON. NDEBELE: This is Parliament; we are not in a ZANU PF
caucus here.
THE DEPUTY SPEAKER: Which way I want to understand?
HON. NDEBELE: No, no, I have problems with your rulings, we will start singing right now – [HON. MEMBERS: Inaudible interjections.] –
THE DEPUTY SPEAKER: Singing for what?
HON. NDEBELE: No, no, this is not a play ground. We start
singing if you do that.
THE DEPUTY SPEAKER: Singing for what?
HON. NDEBELE: Asihlabeleni. This is unfair.
Hon. Members for MDC started singing.
THE DEPUTY SPEAKER: Hon. Mliswa is not a Minister..
HON. NDEBELE: He is sitting here. You cannot preside over Parliament in this manner, this is not a playground. We are not your children – [HON. MEMBERS: Inaudible interjections.] –
THE DEPUTY SPEAKER: Is it because of the sitting of the
Minister.
HON. NDEBELE: No, marulings enyu iwayo. You must review
your rulings, this is not child’s play. We did not come all the way to play here.
THE DEPUTY SPEAKER: You can talk to him otherwise I do
not want to send him outside. I cannot have that. I cannot have that honestly. Could we please proceed?
HON. CHINOTIMBA: Thank you Madam Speaker. There are
Ministers on this side. I wanted to add that this issue on corruption that I have talked about – from both sides either ZANU PF or MDC, all those who are corrupt should be prosecuted. We are the ones involved in corrupt activities and this does not touch on the President. All those who were stealing should be prosecuted. Hon. Mangoma was caught stealing petrol. He then changed Mobile to Petrol Trade. He also changed the whole administration and replaced it with new administration which was corrupt – [HON. MEMBERS: Inaudible
interjections.] –
THE DEPUTY SPEAKER: Order, can we have order.
*HON. MUCHENJE: On a point of order Madam Speaker.
THE DEPUTY SPEAKER: What is your point of order?
*HON. MUCHENJE: Thank you Madam Speaker – [HON.
MEMBERS: Inaudible interjections.] –
THE DEPUTY SPEAKER: Give others the chance to speak, you
cannot talk alone.
*HON. MUCHENJE: Thank you Madam Speaker. My point of
order is that Hon. Chinotimba should talk about the Government that is ruling. We cannot talk about the Inclusive Government which made people happy, they should talk about current issues. We should not talk about history but what makes the country move forward.
*THE DEPUTY SPEAKER: Hon. Member, when an Hon.
Member debates he or she can refer to someone. Hon. Chinotimba, please refer to the report on the Committee.
*HON. CHINOTIMBA: When Hon. Mliswa was debating, he mentioned what happened at the ZANU PF conference and we gave him an opportunity. When debates were going on, we did not interfere. So, let me debate freely. The issue that I have is that we are talking about corruption in the country that there is so much corruption but let us start where it started going up so that we get to the root of corruption. We do not want to say that if a person was corrupt yesterday, they should be pardoned because they are no longer in the office. I do not think it is proper. Going back to NSSA...
HON. PHIRI: On a point of order Madam Speaker.
THE DEPUTY SPEAKER: What is your point of order?
HON. PHIRI: Madam Speaker, we cannot sit here quietly when other people are making a lot of noise for us. We are quiet, we want to listen. It is unfair – [HON. MEMBERS: Inaudible interjections.] – you shut up, it is unfair – [HON. MEMBERS: Inaudible interjections.] – You shut up. It is unfair Madam Speaker. It is unfair that when people talk about ZANU PF, corruption in ZANU PF, everyone wants to laugh, but when we talk – shut up - [HON. MEMBERS: Inaudible interjections.] – Can I have your protection?
THE HON. DEPUTY SPEAKER: Order, order! Can we have order? Hon. Chibaya, can we have order? Hon. Members, Hon. Chibaya what is wrong?
HON. CHIBAYA: We are not his children - [HON.
MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Hon. Members! Hon. Phiri,
you complain to the Chair that you are not hearing anything, not shut up vanhu. You are not supposed to do that because these are Hon.
Members. They can make a lot of noise, but they are Hon. Members. Would you please just withdraw the shut up. Please do. Withdraw that before you say anything.
HON. PHIRI: Can people shut up so that I can say, I withdraw - [HON. MEMBERS: Inaudible interjections.] – Maybe my English is the one that is not correct. I wanted people to be quiet, so I think…
THE HON. DEPUTY SPEAKER: You wanted people to be
quiet, but you used a wrong word. Will you please withdraw?
HON. PHIRI: I want to withdraw the shut up, but I also want to say that because they are talking of ZANU PF, that is corrupt - [HON. MEMBERS: Inaudible interjections.] – Madam Speaker, may I say this. Our towns and cities have turned into villages. We are walking in pot holes and everything because of them. Now, why should they be calling ZANU PF corrupt? They are also corrupt. They are stealing in our towns and cities – [AN HON. MEMBER: He is an idiot!] -
THE HON. DEPUTY SPEAKER: Who said that? Hon.
Maridadi, could you please withdraw your words? - [HON.
MEMBERS: Inaudible interjections.] –
HON. MARIDADI: Madam Speaker, I was raised properly by a Ndebele woman. I do not use such words as those. I am sorry about
that.
THE HON. DEPUTY SPEAKER: If it is not you, I am sorry –
[AN HON. MEMBER: NdiMaondera.] - ndiMaondera?
HON. MARIDADI: Yes, ndiMaondera.
THE HON. DEPUTY SPEAKER: Okay, Maondera please stand up and withdraw that. Let us be Hon. Members.
HON. MAONDERA: Okay, I withdraw my statement that Funny
Phiri is an idiot.
THE HON. DEPUTY SPEAKER: Watii?
HON. MAONDERA: I withdraw my statement that he is an idiot.
THE HON. DEPUTY SPEAKER: Hon. Member, you have got
to be honourable enough.
HON. MAONDERA: I have withdrawn my statement that he is
an idiot.
THE HON. DEPUTY SPEAKER: Withdraw the word ‘idiot’.
HON. MAONDERA: I withdraw the word ‘idiot’ - [HON.
MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Anyway Hon. Members, I
think we are no longer behaving like Hon. Members now. Hon.
Chinotimba, I think you are left with two minutes now.
*HON. CHINOTIMBA: Madam Speaker, I have spent a lot of time not speaking, so I do not know the time that people were talking about point of orders.
THE HON. DEPUTY SPEAKER: Hon. Chinotimba, you are
wasting time nekupopota.
HON. N. NDLOVU: On a point of order.
THE HON. DEPUTY SPEAKER: What is your point of order?
HON. N. NDLOVU: Madam Speaker, may the Hon. Member
please stick to the debate, otherwise he is misleading the House - [HON.
MEMBERS: Inaudible interjections.] – HON. CHAPFIKA: On a point of order.
THE HON. DEPUTY SPEAKER: What is your point of order?
HON. CHAPFIKA: I propose that his time be extended - [HON.
MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Hon. Member, there should
be a reason. Because this is not his motion, his time cannot be extended.
*HON. CHINOTIMBA: Thank you Madam Speaker. I wanted to talk about NSSA, that during Hon. Mpariwa’s term people got loans and got houses. Those people who bought houses are no longer with
NSSA because of corruption. The Bible that I read says, “do not see the small speck that is in someone’s eyes and not focus on the log that is in your eye.” What I am saying is that this should be looked into and we should start from the root cause.
I heard Hon. Mliswa saying that the GNU was worse, which means that the people in this country. Have faith in President Mugabe. You are going to see all of them falling down. They are not going to win. As they spoke here, they were talking about money. They are the ones who want to build our nation, but they corrupt our nation so that our country suffers. So, how do we progress as a nation?
Our money that we are using, they went to where it is printed and said, do not print it and this is corruption. So, what I am saying is, if we can say all the people that I have talked about from both sides, all those people who stole at that time, the money that he used to build his house – [HON. MEMBERS: Inaudible interjections.] – but you have eaten into my time because of point of orders, but what I have said is that we do not want corruption in this country, whether it is the opposition or
ZANU PF. Corruption is corruption.
All those people who engage in corrupt activities should be prosecuted. Even councils, when Kasukuwere is now prosecuting people, they should not be cry babies. I thank you.
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 21st December, 2016.
MOTION
BUSINESS OF THE HOUSE
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Madam Speaker, I move
that we revert to Orders of the Day, starting with Order of the Day Number 1.
Motion put and agreed to.
SECOND READING
RESERVE BANK OF ZIMBABWE AMENDMENT BILL [H.B. 12,
2016]
HON. CHAMISA: Thank you Madam Speaker. I am just
seeking clarification because my recollection tells me that we were supposed to be receiving a report from the Committee on their outreach programme from Hon. Chapfika before we open the floodgates of debate. In terms of procedure, that is what I understand. It would appear that he has forgotten that …
THE HON. DEPUTY SPEAKER: Hon. Chamisa, when I asked
for debate, it was only Hon. Mashakada who was up. Was I supposed to call an Hon. Member who is seated to debate – [HON. MEMBERS:
Procedure!] – No.
HON. CHAPFIKA: Madam Speaker, I presented my report on the Reserve Bank Amendment Bill to this House. I did not present my report on the Budget because we are still to do workshops on the postbudget analysis. On the Reserve Bank Amendment Bill, I did submit my report in this Chamber. Maybe Hon. Chamisa was not in the House.
Please proceed if you want to debate the Bill – [HON. MEMBERS:
Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Hon. Chapfika, the Clerks are
saying you did not submit any report. Can you please verify – [HON. MEMBERS: Inaudible interjections.] – Order, order! Can we have order!
HON. CHAPFIKA: Madam Speaker, I think there is confusion between the Reserve Bank Amendment Bill and the Budget. I wanted to present my report on the Budget and the House was adjourned. Hon. Mashakada presented his report and we objected that he should not have presented before I did my report. However, this one I think I did it two or three weeks back – [HON. MEMBERS: Inaudible interjections.] –
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Madam Speaker, my
recollection is that the Chairperson of the Portfolio Committee was not able to present his report. I think to give him that opportunity, I move that the debate on this issue be adjourned.
Motion put and agreed to.
Debate to resume: Wednesday, 21st December, 2016.
MOTION
BUSINESS OF THE HOUSE
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Madam Speaker, I move
that Orders of the Day, Numbers 2 to 5 be stood over until Order of the Day, Number 6 has been disposed of.
Motion put and agreed to.
SECOND READING
PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS
BILL [H.B.5, 2016]
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Madam Speaker, it is my
singular honour to move that the Public Procurement and Disposal of Public Assets Bill [H.B.5, 2016] be read for the second time.
In line with the provisions of Section 315 of the Constitution of Zimbabwe, this Bill seeks to fundamentally reorganize the way in which procuring entities such as Government Ministries, parastatals and local authorities acquire goods, services, works, joint ventures and consultancy services from bidding institutions.
In the current challenging economic environment, ensuring efficiency and integrity in public procurement is essential to ensuring sound public service delivery and maintaining citizens’ trust in Government. In order to achieve this, there is need to professionalise and mordenise the procurement systems in the country. Madam Speaker, there is need for Government to tap into the potential of procurement as a strategic policy lever to advance socio-economic objectives which can only be achieved by reviewing the legislative and institutional architecture for the national procurement system.
Madam Speaker, fostering institutional responsibility and personal accountability in the public sector will help stimulate a healthy business environment and promoting innovation and fair competition.
- Madam Speaker, the Bill will transform the State Procurement Board into a new, non-executive procurement authority tasked solely with providing a regulatory and oversight role as well as setting standards, guidelines and monitoring compliance thus leading to a separation of the regulatory and operational functions.
- Madam Speaker, the Bill will also introduce the ‘Procurement
Regulatory Authority’ responsible for setting public procurement standards, regulating, monitoring and evaluating procurement activities conducted by procuring entities. Mr. Speaker, the Bill devolves procurement decision making to procuring entities and set out the procedures to be followed and the steps to be taken in procurement proceedings to ensure fairness and transparency.
KEY OBJECTIVES OF THE BILL
- Some of the key objectives this Bill seeks to achieve are to:
- Promote competition among bidders;
- Provide fair and equitable treatment of bidders which will eventually culminate in value for money procurement;
- Ensure that all public procurement is conducted in a transparent way; and finally, and most importantly,
- Provide the general public with the satisfaction that contract awards follow a fair and transparent process
KEY PROVISIONS OF THE BILL
- Madam Speaker, I will now outline some of the key provisions of the Public Procurement and Disposal of Public Assets Bill.
- Clause 3(1) deals with application of the Act in terms of which it shall apply to all stages of the process of the procurement of goods, construction works, services by procuring entities and the disposal of public assets by procuring entities.
- Clause 3(3) deals with that which the Act will not apply to and sets out the relevant services and contracts to which it is inapplicable and provides for procurement by diplomatic or consular missions outside Zimbabwe.
- Clause 3(6) provides for defence procurement and procurement related to public security or national interest.
- The Objectives of the Act are set out in Clause 4 and include:-
4.1a Ensuring procurement is effected in a manner that is transparent, fair, honest, cost-effective and competitive;
4.1b Promotion of competition among bidders;
4.1c Fair and equitable treatment of bidders to achieve value for money procurement;
4.1d Promote integrity of, and fairness and public confidence in procurement processes;
- Madam Speaker, Clause 5 of the Bill establishes the Procurement Regulatory Authority of Zimbabwe whilst Clause 6 provides for functions of the Authority which include:-
6.1b Monitoring and supervision of public procurement systems in procuring entities;
6.1c-d Issuing technical guidelines and preparing standard documents and templates to be used in connection with public procurement;
6.1e Developing a framework for e-Procurement;
6.1h Promote public procurement capacity building;
6.1k Referring contraventions to appropriate enforcement agencies;
6.1l Establishment and implementation of an independent review mechanism.
- Madam Speaker, the powers of the authority are set out in
Clause 7 of the Bill and these include the power to issue directions of a general nature to procuring entities regarding the manner in which they are to conduct procurement proceedings.
- In terms of Clause 8 of the Bill, the operations of the Authority shall be managed by a board consisting of seven or nine members chosen for their knowledge and experience in procurement, law, management, engineering and other relevant disciplines. Clause 11 provides for reports to be produced by Authority.
- Madam Speaker, Part III of the Bill deals with responsibility for procurement and Clause 14 decentralises procurement to procuring entities by delegation of the activity to accounting officers (Clause 14.2) and members of the entity’s procurement management unit.
- In terms of Clause 15 of the Bill, procuring entities require authorisation to Conduct procurement and where a procuring entity fails to obtain authorisation, the Authority may authorise another procuring entity to conduct such procurement on its behalf. Clause 19 provides for shared procurement amongst procuring entities.
- Madam Speaker, Part IV of the Bill deals with procurement preparations and planning and in terms of Clause 20, a procuring management unit shall use only the standard bidding documents produced by the Authority.
- In terms of Clause 20(2), a procuring entity shall ensure that before initiating procurement proceedings, adequate funds have been budgeted and allocated to the procurement;
- In terms of Clause 22, for each financial year, a procuring entity shall prepare a procurement plan.
- Clause 26 provides for a procuring entity to conduct market consultations with a view to preparing contract specifications and informing potential bidders of the entity’s procurement plans and requirements.
- Madam Speaker, Clauses 27-29 deals with technical requirements and qualification of bidders whilst Clauses 30 – 34 provide for methods of procurement.
Procedures for competitive bidding and restricted bidding are provided for in Clauses 35 to 56. Clause 55 provides for contract award in terms of which a procuring entity having evaluated the bids shall award the procurement contract to the bidder that submitted the lowest bid which meets the price and non-price criteria set in bidding documents or offers the most economically advantageous tender.
- Clauses 57 to 66 provide for procurement of consultancy services.
- Madam Speaker, Part IX of the Bill provides for transparency and integrity and in Clause 66 provide for information to be provided to rejected bidders and Clause 68 provides for notification of a contract award which shall be published on the website of the Authority.
Madam Speaker, Part X of the Bill deals with challenges to procurement proceedings. Clause 74 provides for application for review by a review panel; Clause 75 provides for the appointment of review panels and how they shall be composed. Appeals against the decision of a review panel will lie to the administrative court. Clause 79 places the responsibility for contract management on the procuring entity.
Madam Speaker, Clause 84 of the Bill requires that where the procurement consists of goods or construction works, a procurement contract shall give the procuring entity the right to inspect the procurement requirement before accepting it, and reasonable times to observe and inspect the manufacture of the goods or the progress of the construction work.
Madam Speaker Clauses 90 to 94 provide for disposal of public assets while Clause 92 outlines the disposal procedure to be adopted and followed whenever an asset becomes unserviceable, obsolete or surplus. Part XIII of the Bill, provides for investigations by the authority and Clause 96 provides for appointment of an investigator by the authority and Clause 97 provides for the powers of such an investigator when appointed.
Madam Speaker, Clause 99 empowers the authority to declare a person ineligible to be awarded a procurement contract if the person has been convicted of an offence under any Act or the prevention of corruption act, in respect of any procurement proceedings or if any procurement contract between a procuring entity and a contractor has been cancelled or otherwise terminated, on account of fraud or persistent under-performance or non-performance of the contract.
Madam Speaker, with these remarks it is now my honour and pleasure to move that the Public Procurement and Disposal of Public Assets Bill, HB. 5 of 2016, be now read a second time. I understand that there are some Hon. Members who may want to contribute and to have some time to go through my second reading speech as well as to go through the Bill.
Therefore, I move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 21st December, 2017
On the motion of the MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA), the House
adjourned at Ten Minutes past Five o’clock p.m.
PARLIAMENT OF ZIMBABWE
Thursday, 1st December, 2016
The Senate met at Half-past Two o’clock p.m.
PRAYERS
(THE HON. PRESIDENT OF THE SENATE in the Chair)
MOTION
BUSINESS OF THE HOUSE
HON. SEN. CHIEF CHARUMBIRA: I move that Questions
Without Notice and Questions With Notice be stood over until the rest of the Orders of the Day have been disposed of.
HON. SEN. MARAVA: I second.
Motion put and agreed to.
MOTION
REPORT OF THE DELEGATION TO THE 68TH SESSION OF THE
EXECUTIVE COMMITTEE OF THE AFRICAN PARLIAMENTARY UNION
First Order read: Adjourned debate on motion on the Report of the delegation to the 68th Session of the Executive Committee of the African Parliamentary Union.
Question again proposed.
HON. SEN. KHUMALO: I did not travel but I would appreciate the motion by Sen. Goto, seconded by our Chief Hon. Sen. Dandawa. There are certain sections which were presented which I found very interesting and I thought even though I did not go, they will be useful if we discussed them as they are affecting Zimbabwe.
I was interested in the issue of culture, peace and security and good governance. What I thought was interesting was that OAU or AU was emphasising to its members that they should work well within their specific countries particularly so that there is peace and security. I am bringing it a little bit on the fact that I think as Zimbabweans generally, we are peace lovers. There are certain times when I look at the situations of what is going on in Zimbabwe on the issue of peace and security. In the media, we have been watching these past days young people sometimes being clapped by our security forces who are supposed to be protecting us. I thought that that is not encouraging peace and security because it is encouraging our young people not to respect our security which we are supposed to respect. Even a parent – if a parent is always clapping the children, children will do naughty things because they are tired of being beaten always …
HON. SEN. CHIPANGA: On a point of order Madam President. You will guide me, I thought this is not the motion we are discussing. I thank you
THE HON. PRESIDENT OF THE SENATE: Thank you Hon.
Senator. I thought she actually gave a preview to her debate. It is based on that preview that I let her go on to what she is debating. Of course, I do take note of the fact that Hon. Senator, you are almost introducing a new subject here. Please do not stray from the motion. I think you need to keep it relevant to the motion.
HON. SEN. KHUMALO: In their discussions, they said they are encouraging African countries to have peace and security. So, police and the army are our guardians for our peace and security, although peace and security can be caused by other issues. Sometimes, peace and security can be affected by our cultural activities. Within their discussions, they brought in the issues of good governance which means people have freedom of saying what they think is right. In the Constitution, it is said human rights; freedom of speech. In our situation, freedom of speech is not quite understood what it is. Sometimes when demonstrating on the issues which we think affect us so that it is understood by those in leadership or those who are ruling; we are only saying this is not what we want. I do not think the youths will be fighting their Government, but just informing them of what they are not interested in so that their Government can think about it. That is part of peace and security.
We have also seen within the issue of freedom of speech, let those who have done wrong be taken to the courts and not be embarrassed by being beaten in the streets. The courts are there to do the judgement so that people are not embarrassed in the streets. Embarrassment is a bad thing and it is not a human right. Their human rights are violated when they are beaten in public. Nobody should be beaten, people should go to courts and judged on the wrong things they would have done. I was also interested on the issue that when we are doing good governance, peace and security, the youths are left to do what is right.
Secondly, I am on the cultural issues which you brought in which were discussed there and I thought it is wonderful. Culture can be easily done, easily expressed, I think through devolution. If there is no devolution, no one can think of what we can do in Matabeleland or Masvingo which fits us as a cultural development thing. People in the areas should be able to come up with what they think is their cultural development. For example, in Matabeleland, they have lost their culture because they have been forced to leave induku. A man was not a man when he moved like a woman. Today, men in Matabeleland move like women. They are not allowed to carry their knobkerries. That is their culture, why can they not keep it? Culture has to be upheld.
We are coming up with a new issue that education is going to be done in our mother language. Is it truly going to be done culturally or we are going to have someone’s language being used against our children to learn the science technology? As long as we are not hiring teachers in Matabeleland or in Masvingo who can speak that language, those children are not going to learn their culture because that teacher does not know the depth of that language. The OAU said linguistic is part of culture. Can we have that linguistic allowed in different areas so that our cultural development can go forward because it is lagging behind in other provinces. The students from early childhood development to Grade 6 should be taught in their language by the teachers who can speak those languages so that they can express and give the children the expressions which are in their language. That is one of the important things I have on the issue of culture.
Peace and security is how things work. If we look at the parastatals, at the present moment, the majority of their heads are from one section. Can all the provinces be covered because all of our children have gone to school and they also want to be in charge. They cannot always be under supervision by other children. I experienced that and it is not right. Sometimes you are given a person who is not qualified as you are but because he belongs to a ruling culture, that is recognised to be your boss when he does not know anything. That is not fair. Can we have distribution of power so that people in other provinces can participate.
Finally, I would like to say, culture is our resource. People say zviwanikwa zvemunzvimbo iyoyo are supposed to benefit those living there. The resources in an area must benefit the local people properly.
Thank you.
THE HON. PRESIDENT OF THE SENATE: Thank you for
expressing your opinion on this motion and some of the topics that came up at that particular conference.
Ministers are nowhere to be found, we went out looking for them but we have not succeeded yet.
HON. SEN. CHIEF CHARUMBIRA: I move that the debate do now adjourn.
HON. SEN. TAWENGWA: I second.
Motion put and agreed to.
Debate to resume: Tuesday, 6th December, 2016.
MOTION
FIRST REPORT OF THE THEMATIC COMMITTEE ON
GENDER AND DEVELOPMENT ON THE STATUS OF
CHILDREN’S HOMES
Second Order read: Adjourned debate on motion on the First Report of the Thematic Committee on Gender and Development on the
Status of Children’s Homes.
Question again proposed.
HON. SEN. CHARUMBIRA: I move that the debate do now
adjourn.
HON. SEN. TAWENGWA: I second.
Motion put and agreed to.
Debate to resume: Tuesday, 6th December, 2016.
MOTION
SECOND REPORT OF THE THEMATIC COMMITTEE ON
GENDER AND DEVELOPMENT ON EARLY CHILD MARRIAGES
Third Order read: Adjourned debate on motion on the Second Report of the Thematic Committee on Gender and Development on early child marriages.
Question again proposed.
HON. SEN. MAKORE: I move that the debate do now adjourn.
HON. SEN. TAWENGWA: I second.
HON. SEN. MAKORE: Madam President, I cannot wind up the motion now because I have observed that there are a few people who still want to contribute. I therefore propose to wind up the motion next Tuesday, removing it from the Order Paper.
THE HON. PRESIDENT OF THE SENATE: We need to
explain to the House why you have not wound up the motion. You see it is part of the Executive’s duty to this august House to respond to motions either from Committees or motions raised on given subjects, Ministers must come and respond, because this House - you as Senators will have debated and brought up your concerns in as far as given ministries are concerned. Like right now, we are waiting for the
Ministry of Women’s Affairs as well as the Ministry of Public Service to respond to these two motions –[HON. SENATORS: Hear, hear.]- but they have been contacted by our administration, still they have not come. Hon. Senators may wonder why some of these motions are still on the Order Paper. It is because the Executive has not bothered to come to this august House to respond to your motions which you have raised. So we have to give them a chance, maybe next week they can come and respond. Who seconds the motion of adjournment?
HON. SEN. TAWENGWA: I second.
Motion put and agreed to.
Debate to resume: Tuesday, 6th December, 2016.
MOTION
REPORT OF THE DELEGATION TO THE 39TH PLENARY
ASSEMBLY OF THE SADC PARLIAMENTARY FORUM
Fourth Order read: Adjourned debate on motion on the Report of the delegation to the 39th Plenary Assembly of the SADC Parliamentary Forum.
HON. SEN. MACHINGAIFA: Thank you Madam President for
giving me this opportunity to debate and also acknowledge the report and the motion or the Report that was presented in this House by Hon. Sen. Mohadi, seconded by Hon. Sen. Mutsvangwa; The report in which they were part of the delegation to the 39th Plenary Session of the SADC Parliamentary Forum held in Ezulwini, Swaziland from 24 May to 7 June 2016.
I also want to add my voice to the issues that they raised in this House which they have debated with other 15 SADC nations. The issues that they discussed were good, I acknowledge, such that I believe in this august House we also should emulate. As they debated as a region, they also bemoaned the issues of lack quorum in Parliament which is happening in other countries as well as Zimbabwe. They understood each other and they furthermore debated on the issues that are also topical in this country like child marriages. Yesterday many religious groups gathered to discuss the issue of child marriages and condemned those who were promoting this act.
They also discussed on how they debate in their respective Parliaments. Both the opposition and the ruling party debated in one accord in order to build up their regions. That pleased me a lot. Their convening as Members of Parliament to talk about such issues on how to develop their nation as well as the important legislation was also a priority.
The other issue that they debated on was the issue that Zimbabwe should honour its obligation in terms of paying subscriptions to the SADC PF. My request is that Zimbabwe should own up and pay its due subscriptions. They also talked about an issue that is of concern here in Zimbabwe, on the El Nino that there is climate change and we do not have enough rainfall. For that reason, there is drought.
They got to a point of agreeing that in other countries they also mentioned that they were experiencing the same situation. They further talked about the issue of electricity and the challenges that they face in various countries. Sometimes the supply is adequate and sometimes it is erratic. The issue they talked about was that of poor service delivery, especially when it came to women. On the issue of development, they noted that the situation in Zimbabwe is that we have women who are in leadership. Like in this august House, we have Madam President who is a woman and she presides in this House and Zimbabwe is in the forefront.
We also have women in the Judiciary, schools, churches and industries, which means that as they debated these issues, those who had come from Zimbabwe were experts. This is because in Zimbabwe the women are empowered and they are given the opportunity to lead and achieve their destiny. I was thinking that on the issue of poor service delivery of women, they would have debated on the issue of cotton production. They would have formed companies and that these women would assist those women inmates to get sanitary wear because the companies they form can manufacture sanitary wear. With these few words, I want to thank you Madam President.
THE HON. PRESIDENT OF THE SENATE: We thank you
Hon. Sen. Machingaifa for the suggestions that you have made to the women.
HON. SEN. MOHADI: Thank you Madam President. I move that the debate do now adjourn.
HON. SEN. TAWENGWA: I second.
Motion put and agreed to.
Debate to resume: Tuesday, 6th December, 2016
THE HON. PRESIDENT OF THE SENATE: May I remind
Hon. Senators that when we are in this House, we do not do our businesses on the phone. We give our 100% attention to what is going on in the House. Thank you.
MOTION
PRESIDENTIAL SPEECH: DEBATE ON ADDRESS
Fifth Order read: Adjourned debate on motion in reply to the Presidential Speech.
Question again proposed.
THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): Thank you Madam President. I
move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Tuesday, 6th December, 2016.
ORAL ANSWERS TO
QUESTIONS WITHOUT NOTICE
THE TEMPORARY PRESIDENT OF THE SENATE (HON.
CHIEF CHARUMBIRA): We only have one Minister, Hon. Dr.
Dokora, the Minister of Primary and Secondary Education.
HON. SEN. KOMICHI: I have got a very serious objection Mr.
President that the bench for the Ministers is empty. There is only one good Minister who has come. I propose that we must protest on the behaviour of the Ministers by allowing the Minister of Primary and Secondary Education to go so that we can adjourn the House because it does not help us. There is serious disrespect. It is not only today Hon. President. We have been watching for the last 4-5 months that Ministers are failing to come here.
If we get a maximum of three Ministers, we will be lucky and in most cases, we get the Deputy Ministers. We know very well the role of the Deputy Minister. It is not the front line of the Ministry. I think to send a strong word to the Executive is that we demand the presence of the Ministers. We feel very much belittled because on Wednesdays, Ministers are full in the Lower House, and come Thursdays, they do not even bother to come.
So, they underrate and belittle the Senate. I think we should stand up and voice against that kind of behavior. Today I propose that instead of bothering the Minister of Primary and Secondary Education who has come alone, can we give him leave.
HON. SEN. CHIPANGA: Thank you Mr. President. I think that if we do that, we would have chased away the Minister. He has been referred to as a good Minister. Since he is here, let us do business with him and when he has done his job, he can go. We cannot protest against him because he is here. So, my proposal is that we ask the Minister the questions and when we are done with him, he may leave. Thank you.
HON. SEN. MARAVA: Mr. President if you are ploughing, you do not do it with one cow but with two cows. So, we cannot just keep the Minister on his own, we should let him go and when others come, then we can pose our questions to him.
HON. SEN. MAKORE: Mr. President, I would like to second this
particular thinking, particularly raised by Senator Komichi here. In fact this is a very dignified House; it is an august House that has to be respected. We are not by any way belittling the very honest Minister of Education, Hon. Dr, Dokora here, if at all we thank him for coming almost every time, he attends, we see him all the time here.
However, the fact that the majority of these Ministers do not seem to respect this House in terms of them taking this as a very important occasion to attend this Question and Answer Session, we therefore feel exactly like what was raised in the lower House. I read a lot of Hansards from the lower House, in fact attending question and answer on Wednesdays and Thursdays is a necessity Hon. President. So we do feel really that this move is not intending to belittle our Minister but it is to respect him and to also call for order that Ministers must understand that it is a call for duty to come and answer questions.
So, by all means Hon. Senators, we think really that this is an urging step to call for Ministers to come to this House, not a denial of our necessary duty, not an undermining in any form but an encouragement and to call for those people to come and attend. Honestly, these are most important questions for the nation. Senators are not only asking their questions from head but they are coming from their relevant constituencies and they need to be answered.
HON. SEN. MOHADI: Thank you Mr. President. I go against that
thinking of saying that other Ministers are not here, therefore Hon. Dr. Dokora should leave. He does not stand for all the other Ministries, he is standing in for his own Ministry and he has the right to be asked questions. If we are through with him then he will leave but we cannot say that he should go because this is a way of chasing him away, saying that we do not need him here because some of his colleagues did not come. Let him do his job and then he goes after he has finished.
THE TEMPORARY PRESIDENT (HON. SEN. CHIEF
CHARUMBIRA): The way it is going is that this side feels this way and the other feeling that way thereby dividing the House. I do not see that pattern changing, so you will all agree with me that these are just repetitions and it shows political dynamics of Parliament.
*HON. SEN. MASHAVAKURE: Thank you Mr. President. I do
not know what it means if we say the Minister should go. Will the other Ministers have a way of knowing what will have happened? I think this issue is the same with what Madam President said before she left the Chair; on the issue of motions that we raise in this House. From my memory, if there is someone with a better memory, I will accept correction. Since 2013, there has been one motion that was responded by the Minister and that motion was requesting for a holiday to celebrate
International Women’s Day. That was the only motion that was responded to by the Minister ever since I came here in 2013.
So, what it means is that, like what the Hon. President has said, there is now a division of the House. However, I think the issue at stake here is not about the ruling party or opposition but what can our Standing Orders do in order to address this issue to ensure that those who are supposed to come and answer questions come and do so. We can divide the House and vote but when we come back, it will not be a solution because the Ministers will still not come. So, we need to see how we can address the issue to ensure that Ministers come for Question Time and also to respond to motions. If it was possible, I would suggest that firstly, we do not have a sitting calendar, so we do not know when we will sit again. If possible, it would have been good for us to have an evaluation and look at the advantages and disadvantages of the sessions that we have, submit it to Madam President and they should also make an evaluation to see how they can address the issues. This will assist Parliament in addressing some of these issues. I think we will come back next week after we have protested but still on Thursday they will not come and we will not have solved anything. I thank you.
THE TEMPORARY PRESIDENT: Thank you for your
submission. It was very good, progressive and intelligent. I think we have a problem as a Parliament and fortunately, the Clerk, Deputy Clerk and the whole team is here. I think it falls upon their shoulders to assist the process that we are sitting for no value. We are actually not utilizing tax payer’s money to its fullest value because we just come to talk without any proper conclusive position which can yield any result.
So, Senator Mashavakure, you are perfectly right. I think we have the crisis which our administration and the Presiding Officers should look into so that the Ministers can respond to all the motions. They should come to respond to both Questions Without Notice and Questions With Notice. So, Senator Mashavakure well done.
I want to go back to the original proposer Hon. Senator Komichi and thank him for that position. Senator Komichi, you are perfectly right. This is not what is expected of us by Zimbabweans. We do not come here to simply talk for no purpose. So, we stand guided in future but Clerk of Parliament, if there was a way of having a resolution or a motion adopted as Senate to ensure that we call upon Ministers who do not come, somehow they are reprimanded in terms of the Standing Rules and Orders like we do for Committees, contempt of Parliament, because a Minister has gone for more than 3 times without coming to answer questions. Unless we have good grounds, I think a Committee should be set up by Parliament to investigate why that Minister is behaving like that. The same with responding to motions. On that note, I thank Hon. Sen. Komichi, Hon. Sen. Mashavakure and others, I think finally we give the Minister the floor. Those that want to raise questions with the Minister are welcome and those who feel that we are over burdening him can withhold their questions for next time. Others may have very urgent questions and would want their questions responded to immediately. That is how we should proceed and I will make a ruling on that one. Let us proceed, for those who want to raise questions without notice to the Minister, you are welcome. I remember Hon. Sen. Chipanga did indicate that he wanted to be the first. So, I will allow you to be the first. I thank you very much.
HON. SEN. MUSAKA: On a point of order Mr. President.
THE TEMPORARY PRESIDENT: What is your point of
order?
HON. SEN. MUSAKA: My point of order is on the issue of the Executive not coming not that people should not ask the Minister. Why should the issue be thrown to the administration and not the Presiding Officers, that is the President of the Senate and his team? I do not know what the rules are. What are the rules?
HON. SEN. MLOTSHWA: On a point of order Mr. President.
THE TEMPORARY PRESIDENT: What is your point of order?
HON. SEN. MLOTSHWA: We feel now that we are being
forced by the Chair to stick to only the questions of the Minister because we represent people with different opinions not only opinions that are to do with only his Ministry. We feel by going ahead asking the Minister the questions, we are covering for the Ministers who are failing to come and attend to the Senate. That being said, we feel we would rather not be here when one Minister is being asked questions, those who want to remain can remain asking. I thank you very much.
THE TEMPORARY PRESIDENT: This is not a point where a
party can do that. Anyway it is a democratic environment. Those that want to leave should do so in silence.
Hon. Senator Mlotshwa and some Senators walk out of the Senate.
*HON. SEN. CHIPANGA: Mr. President, my question is directed to the Minister of Primary and Secondary Education, Hon. Dr. Dokora. Minister, we have almost come to the end of the year. The Grade 7 results are out. How do you handle a situation whereby the parent has not paid school fees?
*THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): Thank you Mr. President. I
want to thank Hon. Sen. Chipanga for the pertinent question that will assist all of us as who have remained in this Senate to enlighten each other. What I want is a situation whereby all children are paid up in fees. The schools run using the very fees that are paid by the parents. I came to this august House a number of times in the past three years ago, supporting the idea that a child is not at fault but the parent is obliged to pay fees. You might be the guardian or might not have the papers to look after that child but you have the responsibility and the custodianship of that child. So, that person is obligated to pay fees.
For those who do not have guardians, they are on BEAM project or they are under religious groups or other NGOs or organisations who are obliged to pay the fees. For us to say that now the results are out and a child will be looking forward to his results but as a parent you are in debt in terms of fees, we need to pay our fees. Do we want to destroy our schools? Our hope is that as you go to collect results, just carry money to clear off the fees debt that you have. If we do not, we will end up destroying our schools. Those who will not have paid primary fees and levies are the very ones who want to go to boarding schools.
So in boarding schools, as you get into the school, you need food. So, what food will you eat if you have not paid any fees. It will be bought by who? My plea Senator is that for you to approach the
Ministry only, all of us should be obligated to encourage parents to go and pay their fees. Honestly, you cannot be on part payment from
January to December. The money is not much, it is US$15, US$5, US$35 which is equivalent to roughly two chickens. We do not want a situation whereby you say I am not going to pay because my child has passed through that school. What of those who are still to go to school. So, my request Hon. Chipanga is that, we should also urge parents to pay their fees arrears as they collect their results. We all know that our education system has been considerate and that we should not burden the child but the point is we need to pay. I thank you.
*HON. SEN. CHIEF CHISUNGA: Thank you Mr. President for
giving me the opportunity. I want to pose my question to the Minister on a school called Chapoto which is a Government Primary School. Is Government still committed to build this school and when is it likely to commence since there are no teachers as yet?
THE TEMPORARY PRESIDENT: It is a question that needs to
be written down so that he can do research. It is not a policy issue but if the Minister has knowledge, he is at liberty to respond.
*THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): I thank you Mr. President.
Truly, your ruling is correct because for me to give a response that is convincing, the question should be put in writing. I know it is somewhere around Mbire but I know that it is close to an area called Mariga. Mariga school is in the process. We are going to build it and do so happily so that the community of the Duma will have the first school in their area which will benefit from the new design which will have quadrants to protect the school from whirlwind and other natural disasters.
The schools that we have built before have required so many repairs because of natural disasters but the new schools are not properly designed in the sense that they take into account the issue of whirlwinds to ensure that if the winds come, the roofs are not taken away. So, Mariga is a typical prototype school of the new design. Do not bemoan that there are no teachers, that is in order. We can open a school, even in March, June or May. Whenever we finish building a school, we then start enrolling kids and the schools commence.
HON. SEN. MOHADI: My question pertains to schools in the resettlement areas. You find that when people go to resettlement areas, they are resettled in groups which are very much apart from each other. As a result, there might be one school. Let me give you an example of a school in Beitbridge called Chonzeni. In this resettlement area, there are only 23 families who are there. They have a school there which has got 30 children only. As a result, there is only one teacher who is teaching from Grade 1 to Grade 7. Can you enlighten us on how such schools can be run? Thank you.
THE MINISTER OF PRIMARY AND SECONDARY EDUCATION (HON. DR. DOKORA): I am saying we are
accustomed to the particular way in which children access education which is the full-time formal schooling where they go to their local school. There is also an alternative approach to attaining schooling in
Zimbabwe, and that alternative approach is called non formal education.
The non formal education is visible to us when a person is trying to supplement their various levels of education, whether at primary or at secondary school. In the primary school, non formal education includes correspondence school which is run by my Ministry for primary education. In the last six months, we have taken a decision to now escalate that to secondary education. The correspondence education or Open Distance Learning (ODL) is designed to reach out to the isolated learner and was designed originally in colonial times to take care of the eventualities such as the Hon. Senator has made reference to. In other words, you cannot deploy four or five teachers to look after 15 or 30 kids, it is not economic.
So, instead of using the full time model, you use the non formal model where you deploy one teacher or at most two but they act as centre coordinators. They get material which is prepackaged by the Ministry. We have a department which is very vibrant called the Curriculum Development and Technical Services Department. They then take the material whether it is to reach a one pupil or two pupil group in some resettlement area and in a family setting, that material must reach that child. They must be able to reach primary schools guided by these centre supervisors. So, they will attend and write the same examinations at the end of that primary school curriculum. If it is secondary, they will also write the same curriculum at ‘O’ level and beyond. That is how we manage these small groups of learners. They are structured into the alternative system which is equally competent and yields the same outcomes for the learners. It is highly individualised and therefore is not dependent on getting teachers deployed in their numbers to take care of 30 kids who are from Grades 0 to Grade 7. It will not be possible to deploy fulltime teachers.
HON. SEN. MASHAVAKURE: Thank you Mr. President. In
that respect, Hon. Minister, are you saying that you are going to revive the radio lessons that used to be conducted during colonial time because
I understand even white farmers’ children were using those radio lessons to learn in their isolated farm environments. Thank you.
HON. DR. DOKORA: The short answer is yes. Already groundwork has been prepared to revive those radio lessons. You know with ICT; we are also looking even to the TV Channel which we are going to get when we go fully digital. One of the channels will be allocated to education and will occupy the morning shift and then our counterparts in Higher and Tertiary Education, Science and Technology Development will occupy the other shift. So we will use the available channels to reach all learners in the country. That is the only way we can justify our pursuit of equity.
I think the Hon. Senator will also be happy to know that even our examining system is sensitive also to the kind of media that the learners use at examination time. We had the first candidates using brail in the last Grade 7 examinations; students who required special settings for those that were hard of hearing, sitting for their Grade 7 examinations. Of course, there are variables that you then introduce in that space, like the duration. They cannot be allocated the same time as the others but we use various channels to reach out to all learners. The Zimbabwean education system is becoming more inclusive and more sensitive and therefore, more radical in approach. I thank you.
+HON. SEN. BHEBE: Thank you Mr. President. My question is directed to the Minister of Primary and Secondary Education. Hon. Minister, there is a very good school feeding programme going on in schools. If you look at it, the children that are fed are from different families like the orphans and those from well-up families. Will this programme stop when the drought is over or it will continue running to assist those orphans?
+ THE MINISTER OF PRIMARY AND SECONDARY
EDUCATION (HON. DR. DOKORA): Thank you Mr. President.
The school feeding programme will not stop after the drought but it will go on into the future. This programme is now part of a permanent future of the Zimbabwean education system. I thank you.
Questions without Notice were interrupted by THE
TEMPORARY PRESIDENT OF THE SENATE in terms of Standing
Order Number 62.
On the motion of THE MINISTER OF PRIMARY AND SECONDARY EDUCATION (HON. DR. DOKORA), the Senate
adjourned at Sixteen Minutes to Four o’clock p.m. until Tuesday, 6th December 2016.
PARLIAMENT OF ZIMBABWE
Tuesday, 20th December, 2016.
The Senate met at Half-past Two o’clock p.m.
PRAYERS
(THE HON. PRESIDENT OF THE SENATE in the Chair)
MOTION
BUSINESS OF THE HOUSE
THE DEPUTY MINISTER OF MEDIA, INFORMATION
AND BROADCASTING SERVICES (HON. SEN. MATHUTHU):
Thank you Madam President. I move that Orders of the Day, Numbers 1 to 4 be stood over until the rest of the Orders of the Day have been disposed of.
Motion put and agreed to.
MOTION
PRESIDENTIAL SPEECH: DEBATE ON ADDRESS
Fifth Order read: Adjourned debate on motion in reply to the
Presidential Speech.
Question again proposed.
HON. SEN. NYAMBUYA: I move that the debate do now
adjourn.
HON. SEN. TAWENGWA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 21st December, 2016.
MOTION
REPORT OF THE DELEGATION TO THE 68TH SESSION OF THE
EXECUTIVE COMMITTEE OF THE AFRICAN PARLIAMENT
UNION
Sixth Order read: Adjourned debate on motion on the Report of the delegation to the 68th Session of the Executive Committee of the African Parliamentary Union.
Question again proposed.
HON. SEN. GOTO: I move that the debate do now adjourn.
HON. SEN. CHIMBUDZI: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 21st December, 2016.
MOTION
FIRST REPORT OF THE THEMATIC COMMITTEE ON GENDER
AND DEVELOPMENT ON THE STATUS OF CHILDREN’S HOMES
Seventh Order read: Adjourned debate on motion on the First Report of the Thematic Committee on Gender and Development on the status of Children’s Homes.
Question again proposed.
THE DEPUTY MINISTER OF MEDIA, INFORMATION AND BROADCASTING SERVICES (HON. SEN. MATHUTHU): I
move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 21st December, 2016.
MOTION
SECOND REPORT OF THE THEMATIC COMMITTEE ON
GENDER AND DEVELOPMENT ON EARLY CHILD MARRIAGES
Eighth Order read: Adjourned debate on motion on the Second
Report of the Thematic Committee on Gender and Development on Early Child Marriages.
Question again proposed.
*HON. SEN. MASHAVAKURE: Thank you Madam President
for affording me this opportunity to raise my voice on the motion moved by Hon. Sen. Makore and his Committee. I listened to some Hon.
Members when they were debating and others who were talking outside this august House about early child marriages.
I was disturbed because at one time I thought that these were White people who were speaking. I say so because the debate was sophisticated; those that debated in this House talked about child marriage and the age of consent as separate things. Basically, they meant that whilst one can consent to sexual intercourse, they are not eligible to marriage. If Cecil John Rhodes was still alive and heard you pursuing his wishes, he would have been happy that they had achieved their purpose of letting Africans think like Whites. Outlawing the consent to sex at the age of 15 or 16 and getting married at 18 years is not African.
Go to your constituencies and tell parents that their children are free to behave as they wish and will marry at 18 or above and see if you will get any support. If there is an age of consent, why then should you cry foul that young girls are having sex with old men? That is the consent that we are talking about that a young girl and a man as old as her grandfather can consent to sex but you come here and mourn over that. Age of consent, what exactly do you mean? We should reason out as Africans.
Age of consent applies to the other type of marriage which is not customary. We have always had our customary marriage which suited us well. If age of consent or consensual sex is good, why do you want to outlaw polygamy because you are saying polygamy is the root cause of child marriage? Polygamy is never imposed upon any person; they go into the union willingly. We should not teach each other wrong things here. This is an august House, we should tell the truth, like I am doing now. For the past six months or more, the truth has not been coming out. As Africans, we should speak the truth so that this can add value to our culture and tradition, from Plumtree to Kazungula; Beitbridge to Mount Darwin, you will never find a parent who allows children to behave as they please and then they marry at the age of 18. What is marriage then?
Other schools of thought, say Komba rites violate the children’s rights and independence. How can a child be independent whilst using other people’s resources and at the same time allowing that child to have consent to sex? We should come up with laws that are applausable, that help to enhance our culture. Non-Governmental Organisations (NGOs) that are donor driven come with such ideas like age of consent and the issue of marriage. In our African culture, go to any neighbour or communal home, if you have sex with anyone’s daughter even in the bush, she automatically becomes your wife. That is marriage and this is all about it. If you do not want to get married you should never have sex with someone’s daughter. I believe in future when you come to this august House, in this Chamber or the other Chamber and advocates I hear on radio and television; they talk of age of consent. We should panel beat our brains and there should be a paradigm shift. We should speak as Zimbabweans who have their own culture, value and norms that we respect.
Donors bring funding but they give you problems. After passing such laws there will be chaos because children can tell you that they are independent, they can consent to sex. From a definition of youth, a father who is 35 years is a youth and a child who is at university is a youth and so, we should come up with workable solutions, things that enhance our development as a country. I have already said that we should not just think about the SADC region or the African Union or the United Nations, we should think of ourselves. In the Middle East where they apply Sharia Law and polygamy, they do that - they do not care what their donors will say because that is their culture.
If you go and sell dagga or marijuana in certain areas they will kill you because that is unlawful in terms of their laws. We should be strong willed and stand resolute behind our culture. We should not be easily swayed; we must remain steadfast whether we are Zezuru, Karanga or Ndebele. I thank you Madam President. – [HON. SENATORS: Hear,
hear.]-
THE DEPUTY MINISTER OF MEDIA, INFORMATION AND BROADCASTING SERVICES (HON. SEN. MATHUTHU):
Madam President, I move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 22nd December, 2016.
MOTION
REPORT OF THE DELEGATION TO THE 39TH PLENARY
ASSEMBLY OF THE SADC PARLIAMENTARY FORUM
Ninth Order read: Adjourned debate on motion on the Report of the delegation to the 39th Plenary Assembly of the SADC Parliamentary Forum.
Question again proposed.
HON. SEN. MOHADI: Madam President, I move that the debate be now adjourned.
HON. SEN. TAWENGWA: I second.
Debate to resume: Wednesday, 21st December, 2016.
On the motion of THE DEPUTY MINISTER OF MEDIA,
INFORMATION AND BROADCASTING SERVICES (HON. SEN.
MATHUTHU) the Senate adjourned at Six Minutes to Three O’ clock p.m.
PARLIAMENT OF ZIMBABWE
Tuesday, 6th December, 2016
The Senate met at Half-past Two o’clock p.m.
PRAYERS
(THE HON. PRESIDENT OF THE SENATE in the Chair)
ANNOUNCEMENTS BY THE HON. PRESIDENT OF THE
SENATE
INVITATION TO THE PARLIAMENT OF ZIMBABWE
WEBSITE LAUNCH
THE HON. PRESIDENT OF THE SENATE: I wish to inform
the Senate that members of the Committee on Standing Rules and Orders and Chairpersons of Portfolio and Thematic Committees are invited to the Parliament of Zimbabwe Website launch to be held on
Wednesday, 7th of December, 2016 at 0900 hrs in the Senate Chamber.
STATE OF THE NATION ADDRESS
THE HON. PRESIDENT OF THE SENATE: I wish to inform
the Senate that His Excellency, the President of the Republic of Zimbabwe, Cde. R. G. Mugabe, will today, at 1500hrs address a joint sitting of Parliament on the State of the Nation in the National Assembly Chamber. In view of the limited space, a few selected Senators will accompany me to the National Assembly Chamber.
Business was suspended at Twenty-two Minutes to Three o’clock p.m. and resumed at Twenty Minutes to Four o’clock.
STATE OF THE NATION ADDRESS BY HIS EXCELLENCY THE
PRESIDENT.
HIS EXCELLENCY THE PRESIDENT:
Madame President of the Senate,
Mr Speaker Sir,
Honourable Members of Parliament,
Invited Guests,
Ladies and Gentlemen,
Comrades and Friends.
Once again, it gives me great pleasure to address this august
House, this time as I make this year’s State of the Nation Address.
Madame President, Mr Speaker, Sir,
In line with ZIM ASSET and the Ten Point Plan, Government has introduced several measures to promote local content requirements across all the sectors of the economy, especially in agro-processing, mining, manufacturing, construction and tourism. Our major objective is to increase local capacity, create a skilled work force, and become a competitive supplier base.
The recently gazetted Statutory Instrument 64 of 2016 has already started to bear fruit by improving the efficient use of foreign exchange, and in enhancing local production, thereby reducing import dependence. A number of local companies in the plastics, packaging and food manufacturing sector, that include Tregers, Nampak, Proplastics and several others have been the immediate beneficiaries of Statutory Instrument 64 of 2016.
Madame President, Mr Speaker Sir,
Acceleration of the implementation of policy reforms is supported by Government’s policy actions in revitalising agriculture, infrastructure development, unlocking the potential of small to medium enterprises (SMEs), encouraging private sector investments, fostering financial sector stability, and through the observance of zero tolerance to corruption. The reforms are meant to both rejuvenate the national economy and contribute to poverty reduction.
Madame President, Mr Speaker Sir,
My Government is importing grain in order to address the grain deficit caused by the devastating effects of the recent drought. To date, Government has imported over 300 000 metric tonnes of maize, whilst about 200 000 metric tonnes have been delivered to the Grain Marketing Board (GMB) depots by our farmers. Meanwhile, the private sector has also supported Government by importing 25 000 metric tonnes. Add to this the amount of US$360 million for grain importation pledged by our Development Partners. I wish to appreciate and thank the private sector and Development Partners who have joined hands with Government to ensure that our people get sufficient food supplies.
Government has introduced the Command Agriculture Special
Maize and Small Grains Production Programmes, targeting a minimum of two million tonnes of maize from both irrigable and dry land farms among A1, A2 and small-holder farmers. In addition, Government is also rolling out the Presidential Inputs Support Scheme to support 800 000 communal farmers. Our aim is to revitalise agricultural productivity, so as to assure ourselves of national food security.
Beyond tobacco production, which has immensely recovered in the last few years, Government will support the farming production of a number of other crops such as soya beans, wheat and cotton. Government is working on the resuscitation of cotton production in the forthcoming two seasons, by providing inputs to cotton farmers. It is also part of the cotton resuscitation programmes to restructure the Cotton Company of Zimbabwe.
In the Livestock sector, Zimbabwe’s dairy industry is poised for further growth, as Government together with several industry players, is implementing comprehensive inclusive national milk production programmes that are set to ensure self sufficiency by 2020. In 2015, milk production reached only 58 million litres against an estimated national demand of 120 million litres.
Madame President, Mr Speaker Sir,
It is pleasing to note that in 2016, mining generally performed positively, buoyed by favourable market prices, especially those of precious metals. Cumulative declared mineral export shipments to June 2016, totalled US$981.4 million, contributing 63.4 per cent of national export proceeds, and the major earners being gold, platinum, diamond, ferrochrome and nickel. Gold production by our artisanal miners has been steadily rising since the US$100 million support facility for the sector.
Madame President, Mr Speaker Sir,
I am pleased to note the tremendous progress achieved so far in accelerating the Ease of Doing Business, thereby promoting both domestic and foreign investment. The recent promulgation of the Special Economic Zones Act should provide greater impetus to the country’s economic turnaround by facilitating foreign direct investment inflows, industrialisation, technology transfer, employment creation and increased export receipts.
Madame President, Mr Speaker Sir,
For the Tripartite Negotiating Forum (TNF) Social Partners, as a collective, time is ripe for them to vigorously pursue the Social Contract, as agreed in the Kadoma Declaration. Investor friendly measures to boost confidence, productivity and competitiveness, should be strengthened, while the key tenets of good corporate governance and policy consistency are also vigorously pursued. I therefore urge all the social partners, primarily Government, Business and Labour, to work together to reduce the cost of doing business.
Madame President, Mr Speaker Sir,
Tourism continues to experience tremendous growth and development. During the first half of 2016, Zimbabwe recorded a total of 902 435 tourist arrivals, receiving a significant increase from Asia and America. The average national room occupancy rate has marginally increased from 41per cent to 42 per cent. By year end, it is forecast that Zimbabwe will record 2.5 million tourist arrivals, which contributes to the GDP per cent. The peace and tranquillity that we enjoy as a country positively contributes to the success achieved in tourism.
Madame President, Mr Speaker, Sir,
The Small and Medium Enterprises and Cooperative Development
Ministry plays a vital role in the growth of our economy. Government capacitates this sector through training, infrastructure provision, marketing and the creation of linkages and entrepreneurship development. In order to improve access to finance by SMEs and Cooperatives, Government approved the establishment of a microfinance bank under the Small and Medium Enterprises Development Corporation. The bank will be capitalised through the issuance of Treasury Bills valued at US$10 million.
Madame President, Mr Speaker Sir,
In pursuit of Gender Equality and Women Empowerment, Government has, since Independence, introduced programmes to empower women economically, socially and politically. To this end, we have put high on the agenda the establishment of a Women’s MicroFinance bank. This will assist women to establish and grow their business in the various sectors of our economy. It is incumbent upon Government to ensure that funds are availed in order for the bank to be operational.
Madame President, Mr Speaker Sir,
Government is concerned about the high levels of Gender Based
Violence (GBV), particularly against women and girls. In response, Zimbabwe Republic Police and Courts have collaborated in establishing an elaborate multi-sectoral gender based violence mechanism. Victim Friendly systems are determined to fight gender based violence in all its forms. Government appeals to churches and community leaders to take a leading role in shaping an appropriate social fabric and moral behaviour in our society.
Madame President, Mr Speaker Sir,
The 2015 Zimbabwe Demographic and Health Survey results have shown an improved child mortality for the under 5’s, and also an improved child nutrition status, with child stunting going down from 35 per cent to 27 per cent; and an increased ante-natal care for pregnant women. It is pleasing to note that such good results have been achieved at a low cost.
Madame President, Mr Speaker Sir,
This year the power supply in the country improved significantly, with minimal load shedding since the beginning of 2016. This is largely due to measures which were instituted at the end of 2015, such as enhancing generation from Hwange Power Station and increasing imports from the region. Government is also working on increasing local power generation to close the local power production deficit.
Madame President, Mr Speaker Sir,
The Ministry of Primary and Secondary Education has designed a comprehensive Curriculum Framework for Primary and Secondary Education. The Curriculum Framework aims at equipping learners with capacities for creativity, problem-solving, decision-making, entrepreneurial and collaborative skills and team building. This prepares learners to pursue careers in Science, Technology,
Engineering, Mathematics, Arts, Visual and Performing Arts,
Humanities and Languages, Design and Technology, and Commercials.
In order to promote human capital development, Government has begun implementing the Science, Technology, Engineering and Mathematics (STEM) policy strategy. The STEM initiative has seen the enrolment of over 5 000 students to study ‘A’ level Mathematics and any two science subjects. This is aimed at the development of STEM skills to support Zimbabwe’s quest for industrialisation and modernisation.
Madame President, Mr Speaker Sir,
In line with ZIM ASSET objectives Government this year created 69 648 stands for the National Housing Delivery Programme. It is also working on availing land to formerly disadvantaged groups, including Youths and Women, in support of Youth and Women Empowerment and
Development programmes. Government has also designated the Urban Development Corporation (UDCORP), to spearhead urban development in general and housing delivery in particular. UDCORP is championing the development of stand-alone urban centres which will be developed in
Chishawasha B, Knockmalloch near Norton, and Umvutcha in Bulawayo.
Madame President, Mr Speaker Sir,
Following the adoption by Government of the 2015 Civil Service Audit Report, the Public Service Commission aims to re-align, rationalise and restructure line Ministries and Government establishments. The Commission is currently implementing a number of structural reforms including the abolition of redundant and vacant noncritical posts. It is also in the process of rationalising the duplications and overlaps of functions between and among some line Ministries, and is carrying out job reengineering, job enrichment and multi-skilling. The resultant effect would be leaner and flatter structures that are economic and would thus enhance effective and quality service delivery.
Madame President, Mr Speaker Sir,
Zimbabwe made history and left a permanent mark at both the regional and continental levels following our chairing of both SADC and the AU in 2014 and 2015. The country championed the development and adoption of a regional industrialisation strategy hinged on value addition and beneficiation. Zimbabwe also steered the adoption of the AU Agenda 2063, which is Africa’s development blueprint. Meanwhile, we continue to call for the weaning of both SADC and the AU from overdependence on foreign funding, especially on critical issues of peace and security.
Madame President, Mr. Speaker Sir,
Zimbabwe is proud of its Defence and Security Forces who consistently execute their Constitutional mandate of safeguarding the country’s national sovereignty, territorial integrity, independence, peace and stability. Externally, the Zimbabwe Security and Defence Forces contribute to international peace and stability by participating in United Nations, African Union and SADC peace support initiatives.
Madam President, Mr. Speaker Sir,
Let me conclude by paying tribute to our peace loving people, who have endured all manner of economic hardships since we embarked on the historic Land Reform Programme. I wish to commend them for their resilience, and urge them to cherish the peace and tranquillity that continues to be the envy of many. Let us continue to find national pride in our core values of unity, hard work and freedom. But lest we forget, let us pray to the Almighty to graciously open the heavens for more rain this season!
Madame President, Mr. Speaker, Sir,
I wish to take this opportunity to wish the Nation an accident free Festive Season and a Happy and Prosperous 2017.
Tatenda!
Siyabonga!
I thank you.
MOTION
REPORT OF THE DELEGATION TO THE 68TH SESSION OF THE
EXECUTIVE COMMITTEE OF THE AFRICAN PARLIAMENT
UNION
First Order read: Adjourned debate on motion on the Report of the delegation to the 68th Session of the Executive Committee of the African Parliamentary Union.
Question again proposed.
THE MINISTER OF DEFENCE (HON. DR. SEKERAMAYI):
I move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 7th December, 2016.
MOTION
FIRST REPORT OF THE THEMATIC COMMITTEE ON GENDER
AND DEVELOPMENT ON THE STATUS OF CHILDREN’S HOMES
Second Order read: Adjourned debate on motion on the First Report of the Thematic Committee on Gender and Development on the status of Children’s Homes.
Question again proposed.
THE MINISTER OF DEFENCE (HON. DR. SEKERAMAYI):
I move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 7th December, 2016.
MOTION
SECOND REPORT OF THE THEMATIC COMMITTEE ON
GENDER AND DEVELOPMENT ON EARLY CHILD MARRIAGES
Third Order read: Adjourned debate on motion on the Second Report of the Thematic Committee on Gender and Development on Early Child Marriages.
Question again proposed.
*HON. SEN. MANYERUKE: Thank you Madam President for giving me this opportunity to support the motion which was moved by Hon. Sen. Makore on the information gathered during public hearings on early child marriages. This touches us as a nation, especially where these incidences are rampant like in our province, Mashonaland Central, which is said to have the highest rate of early child marriages. This is a concern to many parents because these days, children do not listen to their parents, neither do they pay attention to the guidance received from elders. The Word of God, the Bible says that ‘obedience is better than sacrifice,’ because if one listens they get help and live well.
However, when children learnt about children’s rights, they began to misinterpret the word ‘abuse’ and it is becoming problematic especially in my constituency. In school, a child may not understand every other English word, but the word ‘abuse,’ is well known by every child – [HON. SENETORS: Hear, hear.] – it is a problem to parents.
The children are not even aware of what the word ‘abuse’ implies in their lives. If you counsel a child, he/she views it as abuse. For example, if you ask them to dress with dignity, they view it as abuse – [Laughter.] – So, this word is becoming a nuisance. We need academic professors to come up with a well thought definition so that the children may appreciate the proper meaning of the word ‘abuse,’ otherwise it could be an abbreviation of something unknown to us – [Laughter.] –
We in Mashonaland Central, particularly in Muzarabani
Constituency where I come from, these issues are common. Small children, particularly those we classify as living in poverty have their academic welfare taken care of by donor organisations such as the Campaign for Female Education (Camfed), so that they are able to access education. Most of them are orphans who do not have both parents and yet they are the ones who are shunning school during the early stages of their education like in Grade Five or Seven. As the year comes to an end like this, most of them are impregnated. If these children are interrogated by their guardians to explain why they get pregnant when they know that their academic welfare is being taken care of by donor organisations and Government, they view that as abuse – [Laughter.] – they even approach the police to report their grandparents or guardians against abuse.
So, as parents, we have huge problems in our households and we hold grudges over the children we have and the orphans who were left in our guardianship. We toil day and night in order to make sure that these children are well taken care of in terms of their education, clothing and food, but they do not appreciate that effort. They think that when you do that, you are the worst enemy in their lives and yet they spoil their future.
I appeal to this august House to come up with solutions on what should be done when a girl child elopes before they reach the lawful age of marriage, for example, if my child elopes to Hon. Makore’s home and Hon. Sen. Makore insists that the culture requires us to pay a bride price in marriage. We need to put our heads together so that the law is aligned accordingly since culturally, if we just live with a girl who would have eloped without marrying her, if she eventually dies, we face the problem of avenging spirits. It is also unlawful for the girl’s parents to receive the bride price for marriage if the child is under the lawful age of marriage. So, there is a lot of inconsistencies and as parents, our hands are tied because the children are not obedient – [HON. SENATORS: Hear, hear.] – It is so touching because we are no longer living in the past where a girl child used to be given away in marriage soon after birth due to poverty and hunger but it was also done according to our proper cultural practices, which is different from what is happening now.
Nowadays, children have found a scapegoat by reporting to the police that they are being abused because they do not want to be stopped from engaging in immoral activities.
They only see things from their own side and they do not see the other side. These children are failing to see that their parents are working very hard to improve their lives. Even with this STEM programme, they are not looking at it as something good but, they only see the bad side. They will be mocking everyone from their aunts to the teachers. So, as the Senate, we are pleading that this needs to be really looked into and we ask the Lord to intervene so that our children understand that they do not know some of these things. I want to thank you Mr. President for the time that you have accorded me.
HON. SEN. MAKORE: Mr. President, I move that the debate do now adjourn.
HON. SEN. MARAVA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 7th December, 2016.
MOTION
REPORT OF THE DELEGATION TO THE 39TH PLENARY
ASSEMBLY OF THE SADC PARLIAMENTARY FORUM
Fourth Order read: Adjourned debate on motion on the Report of the Delegation to the 39th Plenary Assembly of the SADC Parliamentary Forum.
Question again proposed.
HON. SEN. D.T. KHUMALO: Thank you Mr. President for
affording me the opportunity to debate this motion. I would like to thank Hon. Sen. Mohadi and Hon. Sen. Mutsvangwa for bringing this report to the House. There were a few interesting sections which I am going to debate on today. I was interested in the section that deals with early marriages which we have already been discussing in here. When I was watching on television, I was also interested in the discussions on the issue of early marriages and that SADC was coming up with a model law that might be adopted by the SADC member countries.
My interest in these early marriage issues is that, it has been recognised that, an educated woman brings up a healthy, clean and well fed family that is an empathy of the communities also emulating what they are seeing in the clean home, the clean and well fed children. So, if we educate our women, SADC has seen that the community or the country which has educated women, those women make the whole community and even the country to be educated because women are an example within a home.
I also had an interest in that, if we delay the marriage of the girls, they would continue with their schooling and that means, their children will have a better nutritional status. We would have reduced wasting and stunting. The women will be able to also feed their families properly and that would mean that the communicable diseases which we are talking about will be reduced. We notice that there is an increase in diabetes, high blood pressure and cancers. Why are there increases in these diseases? We are having these increases because of the life that we are now living. If we eat properly like in the olden days, we do not have such diseases. Therefore, if girls are delayed in marriages, they will be educated and be able to feed their families. They will encourage people in the community to also exercise because some of these diseases are because people are just eating and not exercising. Therefore, there is need to encourage the girl child to go to school.
Also, the refined foods which we are proud of and are eating - especially us Parliamentarians, when we go home, we look shiny and very well. The communities think that we are very well when in actual fact we are also eating wrongly because we lack the understanding. If we had been given the advice within our homes by our wives and daughters who are educated, we would be taking this seriously and looking at the diet that we eat so that we live healthy.
The problem which I see because of women getting married early is, we also understand that health itself is affected by living and eating properly. Therefore, there will be less absenteeism at workplaces. So, there is need for economic development in the country. Absenteeism at work will not always be there and productivity will be effective because of the educated women and wives within the surroundings. I am therefore saying, SADC understands very well that these are important issues. So, let us continue educating our girls and reduce early marriages.
I will also say, the educated woman herself is able to come up with a job to employ other people. If you produce good work yourself, you are then able to employ other people as well. You may find that most of the street vendors who are keeping this country running at the present moment, left school after having acquired some skills. That is why they are able to sit in the streets and come up with some jobs where they can employ other people so that they can feed their families. If you have been unable to go to school and your children are dirty and you are unable to feed them, you feel embarrassed. You might find that those women who are in the streets have some form of education, therefore, they have continued with educating their families. While we are only talking on the issue of girls, I am a gender person. I think most of the people in the SADC region, who are coming up with these ideas are gender conscious. We should also look at the boy child. We need not delay their education.
What I have found these days is, there is more concentration on the girl, sidelining the boy. When a girl is raped, we see it in the television, newspapers and all forms of media. They are advised to go for advice somewhere, what about the boy child? The boy children are being sodomised. They are being given drugs, nobody says anything about them. They are our children as well; we have to look after them. In one of the streets in Bulawayo, there are two boys who have been sodomised in a short space of time. They ended up at Engutsheni because there are no social services that look after the boys and counsel them. They end up mentally disturbed because there are no people to help them. Can there be a drive as well for the boy child. They are also in serious trouble. People are even ashamed to talk about their sexually abused boys. I think we need to look at those children as well, they are in trouble.
One of the sodomised boys is even saying when I see all these men who I live with, I think they might abuse me as well. When these children are taken to such places, they should not be mixed with adults because these children are under stress; not sleeping because they are afraid of the old people with whom they are staying with at Engutsheni. I am saying let us look after both children. Gender is not women; gender is both boys and girls.
I thank the Zimbabwe Government on the issue of women because women are also getting high posts. Nobody can argue about that. My only problem is that they are not being made heads of boards. Parastatals, very few of them have women who are in charge. Why can we not have women who are in charge of parastatals? Government boards, why are we not having women as Chairpersons of those boards? Those are few areas I could say, may be we are a bit lagging behind but generally, we are doing well in Zimbabwe. Thank you.
HON. SEN. MOHADI: I move that the debate do now adjourn.
HON. SEN. MASUKU: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 7th December, 2016.
MOTION
PRESIDENTIAL SPEECH: DEBATE ON ADDRESS
Fifth Order read: Adjourned debate on motion in reply to the Presidential Speech.
Question again proposed.
*HON. SEN. BHOBHO: Thank you Mr. President for according me this opportunity to add my voice on this motion which was raised by Senator Nyambuya on the Presidential Speech, which he presents to us each and every year. I find these speeches very important to the nation of Zimbabwe. Our leader was chosen so that he would lead this nation with wisdom. Each time he thinks of good things that should be done to his people, he brings it to Parliament. He has the pleasure to deliver these speeches to this nation.
I have a few words which he talked about concerning the old people. There should be a law concerning the old people so that they are given the respect that they deserve. Even in banks, old people should not stand in queues together with the young people. They should be served first before the rest of the people have been attended to. You find that most of the time, our President finds it fitting that the elderly should not stand in queues for a long time as this is not good for old people.
This Senate comprises of mature people. So, we want to thank our President who has the wisdom to think that this should be put into law that everyone should be aware of it. When we get to certain places, old people deserve their respect.
The President also touched on our leaders; our chiefs. Each time when he comes to deliver his Speech, he does not forget to address the chiefs. He emphasises that we should go back to our culture of respecting our chiefs. Whatever we are facing is because we are not respecting our chiefs because that is our roots; that is where we come from as a nation. If we respect the chiefs of this nation, all the things will be placed in order and life will be easy for us because when we respected the chiefs in the old days, that is how we got our independence. This is how we came to have our President R. G. Mugabe, who is governing us in a good way, always thinking of his people and what they want. This can be recognised from his Presidential Speeches.
Even as wise as he is, he comes down to this House so that we move together as a nation. These are the few words that I got when he delivered his Speech. I think we should listen very attentively to what he says because it helps us together with our children for us to have a good nation which is governable or which can be governed by our President who was ordained by God. Thank you Mr. President.
THE DEPUTY MINISTER OF MEDIA, INFORMATION AND BROADCASTING SERVICES (HON. SEN. MATHUTHU): I
move that the debate do now adjourn.
Motion put and agreed to.
Debate to resume: Wednesday, 7th December, 2016.
On the motion of THE DEPUTY MINISTER OF MEDIA,
INFORMATION AND BROADCASTING SERVICES (HON. SEN.
MATHUTHU), the Senate adjourned at Ten Minutes past Four o’clock p.m.
PARLIAMENT OF ZIMBABWE
Wednesday, 7th December, 2016
The Senate met at Half-past Two o’clock p.m.
PRAYERS
(THE HON. PRESIDENT OF THE SENATE in the Chair)
ANNOUNCEMENT BY THE HON. PRESIDENT OF THE
SENATE
INVITATION TO THE ZIPA MEETING
THE HON. PRESIDENT OF THE SENATE: I wish to advise
all members of the Association of the Zimbabwe Parliamentarians against HIV that a meeting will be held tomorrow the 8th of December, 2016 at 0900hrs in the Government Caucus Room. Other members who are interested in issues pertaining to HIV and Aids are invited.
MOTION
RATIFICATION OF A LOAN AGREEMENT BETWEEN THE
GOVERNMENT OF ZIMBABWE AND EXPORT-IMPORT BANK
OF CHINA ON HWANGE 7 AND 8 THERMAL POWER
EXPANSION PROJECT
THE MINISTER OF FINANCE AND ECONOMIC
DEVELOPMENT (HON. CHINAMASA): Madam President, I move
the motion standing in my name;
THAT WHEREAS, Subsection (3) of Section 327 of the
Constitution of Zimbabwe provides that an Agreement which is not an international treaty but which has been concluded or executed by the
President or under the President’s authority with one or more foreign organisations or entities and imposes fiscal obligations on Zimbabwe does not bind Zimbabwe until it has been approved by Parliament;
AND WHEREAS, the Loan Agreement between the Government of Zimbabwe and Export-Import Bank of China relating to Hwange7 and 8 Thermal Power Expansion Project being implemented by Hwange Electricity Supply Company Pvt. Ltd was concluded on the 30th of June,
2016 in Harare, Zimbabwe; and
NOW THEREFORE, in terms of Section 327 (3) of the
Constitution, this House resolved that the aforesaid Agreement be and is hereby approved.
It is within this context Madam President, that I present the
Preferential Buyer Credit Loan Agreement concluded between the
Government and the Export and Import Bank of China (China
Eximbank) which loan will be utilised in the Hwange 7 and 8 expansion projects as I will outline shortly.
Madam President, according to the Zimbabwe Economic blueprint ZIM ASSET, Government attaches great importance to the development of key infrastructure in areas which include energy, water, sanitation, transport and information communication technology. In its efforts to meet current and future power requirements as well as to improve current service delivery in the energy sector, Government has consciously focused on power generation, transmission and distribution under its power generation expansion programme.
Madam President, some of the major power stations which are earmarked under the Power Generation Expansion programme include Kariba South hydro-power station expansion, Hwange thermal power station, Bulawayo thermal power station and the joint project Batoka Gorge hydro power station. As this august House is aware, Kariba South hydro power station is under implementation and has recorded significant progress in terms of its completion. It is now, I believe at
65% completion and is earmarked to be completed by March of 2018. When completed, all things being equal, that should add some 300 megawatts into our power grid.
Within the context of the power generation initiative, the Government signed a Preferential Buyer Credit Loan Agreement with the Export-Import Bank of China for the expansion of Hwange 7 and 8 thermal power stations and I shall now provide a general overview of the project and the amounts involved.
Madam President, the expansion of Hwange 7 & 8 Power Station entails the construction of two power generation units which will provide an additional 600 mega watts of power to the national grid. Currently, there are six units with an installed capacity of 920 megawatts. With the addition of two units, the total installed power generation capacity will be 1520 mega watts. The project is being implemented by Sino- hydro Corporation Limited of China which shall be the contractor. A special purpose vehicle will also be an implementer and this has been created for the purposes of overseeing the project development. This special purpose vehicle is called Hwange Electricity Supply Company (HESCO). Government and Sino-hydro will be joint owners of HESCO with Sino-hydro providing equity capital into the construction of this project.
In terms of an on lending agreement that will be concluded between the Government of Zimbabwe and HESCO, it will be HESCO that shall assume the responsibility for the repayment of the principal loan and interest from the proceeds of electricity sales. The project will be implemented over a period of three and half years. Madam President, the cost for implementing this project is US1.48 billion of which
US$1.147 billion is the contract price. Of the contract price that is $1.147 billion, 85% will be a loan of US$997.7 million. This has been secured through this preferential buyer credit loan agreement which we have concluded between us and China-Exim Bank. In turn, the balance of the contract price which is US$176 million which will come into the construction through equity participation by Sino-hydro and this will work out to 15% of the contract price. That is the US$176 million, will be paid by Sino-Hydro by way of equity and it will constitute 15% of the contract price.
In addition Madam President, the Zimbabwe Power Company (ZPC) will be required to raise about US$307 million to cover the project development costs. Several efforts have been initiated to ensure that ZPC secures these resources. Insurance cover from Sino-Sure is also critical for the successful implementation of the project. Madam
President, I need to point out that any investments by the Chinese or any loans lent outside China are required to be insured by a State Insurance company which is called Sino-Sure. So, the insurance cover will also need to be put in place.
The loan of US$997.7 million from China-Exim Bank will attract an annual rate of interest of 2%; commitment fees of 0.25% per undrawn amount and a management fee of 0.25% on the loan amount. The loan repayment period is 20 years including a seven year grace period. Madam President, HESCO will enter into a power purchase agreement with ZETDC to off-take electricity from the constructed Hwange 7 & 8 Thermal Power Station. I need to emphasise that it is critical that as Government, we approve tariffs that are viable both to the producer and the consumer in order to ensure viability at all levels. We need a winwin situation; otherwise we will not get investments into the power sector. In this regard, a paper will be presented at a later stage that ensures that a viable tariff is charged.
Madam President, Zimbabwe’s current generating capacity stands at 1 200 mega watts per day against a current projected power demand of 1 700 mega watts. I need to say that, that current power demand of 1 700 mega watts is because we have a depressed economy – an industrial sector which is not achieving its optimum level and generally, an economy which basically is not growing at the level that we want. We now need to envisage what will happen. If we need to take off, we need to support any immediate take-off of our economy. This 1 700 mega watts as I have just mentioned, represents suppressed demand considering that industry is operating at below full capacity. This places real demand at around 2 200 mega watts per day.
Madam President, implementation of Hwange 7 & 8 Thermal Power Station expansion project is expected to yield the following benefits: increase Zimbabwe’s power generation reliability and efficiency; it will help reduce the supply/demand gap especially experienced during peak hours. It will help increase power supply which will ensure sustained economic growth and development as energy is a key enabler. The project is a lower cost alternative compared to other sources of power such as most independent power producers
and regional imports. Also, the expansion of Hwange 7 & 8 Thermal Power Station will allow the country to enhance its power generation foundation and make significant steps to being a net exporter in the future. Also the implementation of the project will create jobs for both skilled and unskilled Zimbabwean personnel. Knowledge and skills sharing will also be promoted and this will be impacted from the Chinese contractor in the construction, operation and maintenance of the plant. Also Madam President, the project will also have downstream benefits for local industry and related value chains. This will include subcontractors and suppliers to the project such as cement manufacturers, limestone manufacturers, coal and fuel.
So for the above reasons Madam President, I commend Hwange 7 & 8 Thermal Power Station Loan Agreement between the Government of Zimbabwe and Exim Bank of China for approval by this august House. I thank you Madam President.
*HON. SEN. MAVHUNGA: Thank you Madam President for
according me an opportunity to talk in support of the motion that the Minister of Finance and Economic Development has brought into the House that we should get this loan so that we have enough energy in addition to the little that we have, which is 1 200 megawatts per day.
Surely, the Minister is saying that if we work without enough electricity as we are doing, we can work with 1 700 watts. But if we have this loan, we can get 1 520 megawatts. This would be a positive development. For industry to tick, we need enough energy. Even in agriculture, if there is sudden load shedding, it will damage all the equipment because at times there are unanticipated power cuts. Some machines are sensitive to these power cuts. So we really embrace this loan and we also heard that there are jobs which can be created because of this. Also, we will gain knowledge from these people when they come to install power generation equipment. So I know that as farmers and as industrialists, we know that people will get enough energy so that more work will be created. As this House, we should support that we get this loan. I thank you.
HON. SEN. MARAVA: Thank you Madam President. The
facility Madam President, is very attractive and I think it is going to benefit the country but I have got a few reservations. When I looked at the document Madam President, a lot of things are looking or sounding very sweet such as the loan interest which is 2%, that is very cheap and welcome. If you look again under Article 2 on 2.6 where they say “the goods, technology and services purchased using the proceeds of this facility shall be purchased from China preferentially”. When I read the document, I found out that there is insurance in place. Are we not caging ourselves or putting ourselves into a corner if we say preferentially from China alone. Why should this string be accepted when there can be other sources and if we move further you also find that the grace period of 7 years is quite a welcome move; although, it will then force us to compound payments within the 13 years.
When I looked at Article 3, which talks of “first disbursement shall be subject to the satisfaction of the conditions precedent set out in
Appendix 1 attached here to”; it goes further to say “or such conditions precedent have been waived to by the lender in writing”. My question is, what if we do not meet the conditions? What if the lender does not waive the conditions in writing as stipulated here? You find also that on
3.3, the last statement which says, “Before the end of availability period, the borrower shall not without the consent of the lender shall cancel all or any part of the withdrawal of the undrawn facility”. Madam President, why should we be tied to that end because are we not again putting ourselves into a certain corner whereby we are not having any way out of this contractual issue.
Madam President, the other thing is I would like to know how the local companies or local organisations are going to benefit downstream on this loan. I should think that is it. I thank you. – [HON. SENATORS:
Hear, hear.]-
HON. SEN. GEN. NYAMBUYA: Thank you Madam President. I
rise to thank the Minister of Finance for bringing this Buyer Credit Loan agreement to this august House for its consideration. It is my view
Madam President, that this country is very much under provided for in terms of energy and for a long time, we have failed to use the resources which we were given by the Almighty God to the extent that when we die and go to heaven, the Almighty God is going to ask us why we did not use what he provided – [HON. SENATORS: Hear, hear.]- starting from water to coal bed methane as the Hon. is saying. In Lupane, we have got coal bed methane gas which can be used for producing electricity. The downstream effects of CBM are just too many to mention. We can get AN, cheap AN from coal bed methane. Bitumen tar will revolutionise our economy once we are able to fully exploit that particular resource. In this instance, the Hon. Minister has brought to this House the resource of coal. Hwange 7 and 8 is all about coal. In this county we have got coal which we will not be able to use and non of us will be able to witness the end of the use of coal.
What I would like to warn the House is that the North is busy right now drafting proposals and actions of reducing the use of coal because its polluting the atmosphere and that is because they themselves have exhausted their resources of coal. So, it is high time we fully utilised our coal. What I would also like to point out is that there is so much appetite for electricity here in the region as well as up the in the North and Middle East and Europe; it is so much that it is time we fully exploited our resources and earn money from exporting electricity.
We have fully integrated our grid in the region. We now have an integrated grid called the Southern African Power Pool and other regions are following suit to the extent that right now you do not know where this electricity is coming from. It could be coming from Zambia, DRC, South Africa. We are going to reach a situation where you might not know electricity which you are using whether it is coming from Kenya or Ethiopia and that is how countries are developing and we need to be
part of that.
If I may specifically come to Hwange 7 and 8, I think it is a good project. It is actually coming late and that this should have been done a long time ago. Hwange 7 and 8 is going to add 600 megawatts into the grid and that is a lot. The lead time of having those 600 megawatts is far mach shorter than the hydro projects like Batoka for example which has got a far much longer gestation period but at the end of the day is going to bring far much more power. So, I fully support this particular Buyer’s Credit and I think it is the right thing. I just want to flag two points. The first one is that this contract is an EPC that is Engineering Procurement and Construction. So I am urging the Minister to ensure that this country does not lose out to the fact that it is an EPC contract. We need as much as possible to have the locals in Hwange benefiting from this
Construction of 7 and 8. The locals in Zimbabwe where the expertise is not obtained in Hwange, to benefit from the construction of seven and eight. We need to ensure that Zimbabwe benefits from the procurement of the goods and services so that, that money does not simply come from China and it goes back to China.
Sometimes, Eximbanks are very good in that they finance foreign projects, but it is the West which has used this way of Eximbanks whereby they lend you money with the left hand and they take it back with the right hand – [HON. SENATORS: Hear, hear.] –. We need to ensure that we benefit by way of procurement, employment and by way of our resources being used in this project.
The second point which I want to flag, which I know is often dismissed or ignored by many people is the issue of tariffs. Madam President, the issue of tariffs is very important. We need to ensure that this country has got cost reflective tariffs. If we do not do that, then we are asking our utilities to dig a very deep grave and at the end of the day, we will have a dilapidated infrastructure which will not benefit anybody at all. I urge those who are responsible to ensure that our tariffs are cost reflective. In any case, we are borrowing this money and we must pay it back. We would not pay it back if we do not have cost reflective tariffs. We need to have a culture in this country of ensuring that we use electricity sparingly. We should be as economic as possible. I think it is long overdue that we ensure that each and every household, for example has got a solar geyser so that we reduce the cost of the electricity which is expensive.
The advantage of solar geysers is that you enjoy it 365 and a quarter days. The Lord All Mighty does not load shed his sun. It is always there and it is relatively cheaper. The second issue about tariffs is that as a country, we cannot invest and we cannot fund all our infrastructure projects, in particular energy projects. We need to attract Foreign Direct Investment (FDI) and no foreign investor will come into a country which does not have cost reflective tariffs because you need to recoup your investment. You will have borrowed from some bank somewhere to come and invest. So, the issue of reflective tariffs Madam President, I cannot over emphasise.
Otherwise I want to congratulate the Minister for negotiating this bias credit and for ensuring that Hwange 7 and 8, at last is going to take off. I thank you Madam President.
HON. SEN. MUMVURI: Thank you Madam President. I also rise to give my comments on the loan agreement brought here by the Minister of Finance and Economic Development. Unfortunately, what I wanted to say has been covered by others. I think let me just pick those that I feel were not covered. The previous speaker said almost everything I had in mind including points on tariffs.
First of all, let me thank the Minister for bringing this Agreement. According to me, this has been brought in record time because it was signed in June, 2016 and he has brought it here today. In the past, we have complained of approving agreements which have been signed a year or two years back. So, on this one, I want to say, Minister, congratulations for bringing it early and timely.
No doubt that this is a welcome development as what has been said by those who have spoken before me. This development is aimed at increasing power generation through the construction of Hwange 7 and 8. I want to emphasise that we should be self sufficient in our own generation of power to be used locally. In the future actually, if we continue, we should be able to generate enough to export. At the moment it is us who are importing electricity from the neighbouring countries. As what Hon. Sen. Nyambuya said, we are endowed with many natural resources.
On the issue of tariffs which he has mentioned, I also want to say why are we importing electricity at 14 cents per kilo watt hours, yet here we charge 9 cents. The difference is costing the Ministry. I would like to commend the Ministry of Energy and Power Development for alleviating load shedding, which is now almost a thing of the past. I think they have managed to do this because of the installation of prepaid meters for electricity, the same with water, if the local councils are getting something because you now pay before you use anything.
This practice which Hon. Sen. Nyambuya has already said, we must have the culture of paying back what we borrow. People used to say if it has already been used, it is for the Government to pay.
Government has no money; it is us who must pay. Therefore, I urge the Ministry of Energy and Power Development to install more pre-paid metres, so that people pay and at the same time they repay the loan.
As I said, I do not have much to say except to join all those who welcomed this loan agreement. We should approve it, it sounds very attractive, 2% annual interest is too good, 20 years to pay back and seven years of grace period. The implementation is our weakest point as Zimbabweans. We must implement this attractive agreement in all earnest. Needless to say that there should be no corruption in the implementation of this. I thank you Madam President.
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Madam President, thank
you very much. I want to thank all the Hon. Senators who have made contributions and who have supported that we enter into this loan arrangement. We have no choice; if we are serious about our economic growth, we have no choice because we need electricity to power our industrial growth and agricultural growth through irrigation. Without electricity all those things cannot take off. So, it is very important that we emphasise the need for adequate power, if we can have some for export, it is even better.
The situation that we are in at the moment as has been pointed out by Hon. Sen. Nyambuya is that there is an energy deficit in the whole region. We struggle to find imports when we want them. Each country will first look after its own interests before it decides to export to its neighbours or other countries. We should never be in a situation where we are perpetually beggars and always at the receiving end.
The issue I want to emphasise is that unlike other infrastructure projects, energy plants are very expensive and the gestation period is very long. You hardly get any energy plants which are of this size taking less than three or four years. This means that whatever we do or we are doing now, the benefits will probably come in four or five years time and not time. If we delay, it means we are also delaying those benefits from accruing to our country. I think it is very important that we emphasise that.
Senator Mavhunga, thank you very much for supporting the Loan Agreement. As you rightly say, electricity is a critical enabler to every economic activity that we do; agriculture, manufacturing, mining - especially when we are facing the smelting industry. If you load shed the smelting industry, you are basically damaging it. That molten metal will solidify and is damaged. We should never have a situation where we have that situation arising.
Senator Marava, thank you very much for the issues that you have raised because they give me a platform to further explain what an EPC contract is. Any loans other than from multi-lateral institutions are tight in terms of engineering, procurement and construction to the country from which you are borrowing. It is very important to say that when we enter into this, they will insist the design or engineering – yes we input but the design and the cost is at our own expense but done in this case, in China. That is an insistence. They do this in order to promote businesses and their own companies. They will insist that if there are any generators or any turbines that may be needed or manufactured, they must be manufactured in China. It is a must. They also insist that the contractor must be a Chinese company.
It is not just China. It is also India. When we look at the sources of our capital currently, especially infrastructure, we are looking at India and China and not much outside. Infact, even countries in the West are also looking especially to China for capital. Some of the projects which come here as Western, when you are engaged with them, you find out that they are borrowing from China. Obviously, they use their balance sheet and their assets to secure that loan. We need to be very clear there that as far as we are concerned, ndozviripo zvacho. In order not to lose time, I think we have to make sure that we enter into this arrangement.
I am happy to say that you mentioned the issue about local companies. Clearly, there are items which cannot and should never be procured from China –for example any sand, cement and a lot of materials. What we have been doing is to look at each contract and see how much we can secure locally. In our negotiations, there has been no problem. The cement can be manufactured here. If they want a particular quality, our cement companies are in a position to produce the cement quality that they desire. We are very agreed and there is no dispute on what can be secured locally and what they insist, of course should be secured in China which generally, is to do with machinery will be secured from outside for example the turbines.
Because we have no steel industry currently, it means all the steel that is going to go into this construction will all be imported from China, which is why we need to push very hard to resuscitate our steel industry because we are not going to allow this sort of thing to continue. Currently, we are importing steel into our construction industry or something like US$400-500 million annually. Imagine if this was produced locally. Imagine what we could save in terms of foreign currency payments.
Also, to benefit from this is labour. Do not listen to the stories that they will bring people to push the wheelbarrows. No, that is not the case. The personnel who have work permits here will be people with specialised skills and we actually go through an exercise to vet who can come in and what skills they have. We have done so for Kariba South and for what I know, there are no complaints. There used to be very abusive statements about bricks, cement and sand coming from China, that is not true in the case of Kariba South.
For your information, a local company was contracted to provide three million metric tonnes of sand. They are basically fulfilling that obligation. They have to go through to Gache-gache River to wash the sand, put it on a barge and transport it to Kariba South Extension. So, clearly, employment will be created through the construction of Hwange 7 and 8 Thermal Power Expansion Project.
With respect to the issue about conditions precedent, anyone who lends you money; they may not put it as conditions precedent in the manner it is put. Anyone who lends you money will always insist that before disbursement, you have met those conditions precedent, otherwise money cannot be given willy-nilly when you are not ready. When they give you money when you are not ready, interest starts accruing. As you know, it is 0.25% on undrawn amounts. When you draw down faster, you pay less. If you delay, you pay more.
It is very critical for us that we expedite the implementation of this project. But because now the contractor is part of the equity partner with us in Hwange Electricity Supply Company, it will be incumbent even on the contractor to fast track the implementation of the project. So far, with respect to implementation of projects, I can say this without any embarrassment, the Chinese are the best in the world. What you agree with them to be done in three years, they will probably finish in two and half years if they have all the elements are in place. I have no fear with respect to the implementation, unless something untoward takes place.
I want you to know that the conditions precedent are important to be complied with in order to trigger disbursement. If we do not meet these conditions precedent, we delay the implementation or commencement of the project.
Hon. Sen. Nyambuya, thank you very much. I agree with you fully on issues that it is long overdue and also the fact a Thermal Power Plant has a shorter lead time than Hydro, but this one is quite huge – 600 mega watts. We need to compare maybe size to size.
I agree with you also on the high demand in the region. Currently, we are importing from South Africa and Mozambique. We used to import large quantities from DRC but since they started growing their economy, they also have nothing to export. Zambia is probably in a worse situation than we are because most of their power source was hydro. With the severe drought that has completely curtailed the power supply from Zambia, we used to import from Zambia but they have none to export to us. In this case because our energy is thermal based, we have come out of the drought situation better than other countries who rely on hydro-power plants.
I want to emphasise that yes, we capitalised the situation as giving with one hand and taking with the other. In a sense that element is there but it is happening with our eyes fully open. We know exactly what they are giving and what they are taking with the other hand, and we have said notwithstanding, we are going ahead. I think that is the attitude and approach we should take because at the end of the day we have no power. Those are the conditions and we cannot get any better conditions as of now.
The only loans that come without strings of that nature are loans that we secure from multi-lateral institutions such as the African
Development Bank, IMF, World Bank and European Investment Bank. In fact, those institutions actually insist that it must be open for tendering worldwide. So, if you borrow any money from there you cannot say we have a company in Zimbabwe. They will say yes, you have a company but let it compete in an open market. That basically is also the other conditionality, but in this case with the Chinese, we discussed with them because in the past they would give us a contractor. So, this time we insisted to say no, let us chose from amongst many contractors. So, we now do a tendering amongst Chinese contractors and take the best. That basically is now the new modus operandi.
The tariffs, I cannot agree with you more that they should be cost reflective. There are two aspects to what you have said Hon. Nyambuya. The first aspect is cost reflective to the cost of production, which is a function to the cost of running ZESA and its subsidiaries. Then also cost reflective to give a tariff that will not collapse our industries, especially the mining sector where if the commodity prices are falling, you cannot keep your tariffs at 12 or so when in fact the price has plummeted as in the case of platinum. It used to be around $2 000 per ounce but it is now around $900 per ounce.
A cost reflective tariff should be one which basically reduces the tariff to platinum miners so that they remain in business. Once they shut down it will be difficult to resuscitate them. That is one aspect of a cost reflective tariff. The other aspect is, like we are doing now, there are sentiments that ZESA Holdings is top heavy and I am sure that Hon. Nyambuya as former Minister of Energy will be aware of those sentiments. What we have done through ZERA, it has instituted a cost audit on ZESA so that we understand whether the high tariff that we charge to our people is contributed by their own cost of running ZESA or not, and if so to what extent and what can we shed off in order to make electricity more affordable to industry, commerce, agriculture and mining.
Hon. Sen. Mumvuri, thank you very much for the commendation on that the tabling of this loan agreement has been timely. It reflects the urgency that I have to push energy projects. We should never waste any time because if we do it means we are delaying our own economic takeoff. You mentioned the issue quite correctly. We are importing high, around 13, 14 or 15c per kilowatt hour and then we sell to you at 9c per kilowatt hour. There is no one who is paying the deficit and this is the point I made in my speech Madam President that we have to revisit that issue.
There should never be free lunch. If we want this benefit called electricity, we must be prepared to pay for it. That gap is not sustainable and can lead to load shedding if it is not managed in a proper manner. So, it is a matter that we are going to have or seek to address. It is a matter that worries me immensely but when people are used to their cheap electricity, to make that change is not easy yet it is possible because it then means you are more efficient in the utilisation of that electricity. It is a matter that we have to start to address.
The key issue which we have pointed out to ZESA is efficient revenue collection. When we started there were arguments on whether we should have prepaid meters. Some were saying yes we can have them in the homes but not at the farms and so on. Now, I think the policy is now accepted everywhere. Anyone who is a consumer of electricity must have a prepaid meter. That will mean efficient collection of revenue.
It also means there is better planning in the future and it is easy to raise money when the creditor knows what your cash flows are because sometimes with respect to loans, you can stretch it. What they can give you in ten years; they can give you over 25 years, only if they are confident of a constant cash stream and prepaid meters will achieve that, more so, in our country where there is no culture of honouring obligations at all. So, prepaid meters will help. If you do not want the electricity you do not buy and so on. We can even export if people do not want the electricity that we have produced.
Madam President, I want to thank Hon. Senators who have contributed and supported this loan agreement and I therefore move that the loan agreement be approved:
THAT WHEREAS, Subsection (3) of Section 327 of the
Constitution of Zimbabwe provides that an Agreement which is not an international treaty but which has been concluded or executed by the
President or under the President’s authority with one or more foreign organizations or entities and imposes fiscal obligations on Zimbabwe does not bind Zimbabwe until it has been approved by Parliament;
AND WHEREAS, the Loan Agreement between Government of
Zimbabwe and Export-Import Bank of China relating to Hwange 7 and 8
Thermal Power Expansion Project being implemented by Hwange
Electricity Supply Company Pvt. Ltd was concluded on the 30 June
2016 in Harare, Zimbabwe; and
NOW THEREFORE, in terms of section 327(3) of the
Constitution, this House resolves that the aforesaid Agreement be and is hereby approved.
Motion put and agreed to.
MOTION
RATIFICATION OF AN AGREEMENT FOR THE
ESTABLISHMENT OF THE AFRICAN LEGAL SUPPORT
FACILITY
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): I move the motion
standing in my name:
THAT WHEREAS, Subsection (2) of Section 327 of the Constitution of Zimbabwe provides that an international treaty which has been concluded or executed by the President or under the President’s authority does not bind Zimbabwe until it has been approved by Parliament and does not form part of the law of Zimbabwe unless it has been incorporated into law through an Act of Parliament;
AND WHEREAS, an Agreement for the establishment of the
African Legal Support Facility, an affiliate of the African Development Bank (AfDB) that provides legal technical assistance in the negotiation of contracts and creates synergies between the private sector and African countries, was signed on 14 October 2008;
NOW THEREFORE, in terms of section 327(2) of the
Constitution, this House resolves that the aforesaid Agreement be and is hereby approved.
Madam President, as we negotiate these mega deals we are finding that we are short on technical skills to negotiate on an equal basis with those across the counter. It is for this reason that it is my singular honour to move that Zimbabwe’s membership to the African Legal Support Facility be ratified by this august Senate.
The African Legal Support Facility is an affiliate of the African Development Bank that provides technical assistance of a legal nature in the negotiation of contracts and advises on cases concerning sovereign debt litigation and commercial contracts amongst other areas. The concept of establishing the African Legal Support Facility was agreed during the Annual Meeting of Ministers in charge of Finance and Economic Development on 2nd June, 2003 in Addis Ababa, Ethiopia where the ministers recognised the skills gaps of African States in negotiating contracts for extractive natural resources.
Mr. President, considering Africa’s superior natural resource allocation, the facility offers an opportunity for African countries to train their respective technocrats in how to negotiate more favourable terms for natural resource exploitation and concurrently to promote growth and poverty alleviation in their respective countries and ultimately across the continent. This, in part, informs the need to subscribe to the African
Legal Support Facility.
Focus Areas under the Facility
Mr. President, in light of the above, the African Legal Support
Facility assists governments in the following areas:-
- Terms upon which extraction of resources such as minerals, oil and gas may be undertaken;
- Debt negotiations and agreements;
- Fair and equitable investment agreements;
- Mutually beneficial infrastructure and Public-Private-Partnerships in areas such as transport, water, energy and power; I need just to remind Hon. Senators that a week ago we signed a Public-Private- Partnership that is a concession agreement to build the road from Beitbridge to Harare and we hope that by the end of the year, all things being equal we will sign further agreements to construct the road from Harare to Chirundu.
- Structuring agricultural facilities; and
- Commercial Credit Litigation.
African Legal Support Facility Membership
Mr. President, membership to the African Legal Support Facility is open to all sovereign nations and international organisations.
To date, there are 59 signatories to the Facility Treaty, comprising 52 countries and 7 international organisations. Some of the international organisations include the Africa Finance Corporation, the African
Union, the West African Development Bank and the Islamic
Development Bank.
The Zimbabwe Case
Mr. President, Hon. Senators will recall that Zimbabwe signed the membership agreement on 14 October, 2008 and the membership agreement has not been ratified by Parliament in accordance with the Constitution of Zimbabwe.
In this regard, I am submitting the Facility to undergo the process of ratification, in order for Zimbabwe to become a participating member of the Support Facility and derive benefits accruing as a result of such membership.
Expected benefits of membership
Mr. President, as I briefly mentioned previously in terms of Article 2 of the Agreement, the Facility is expected to yield the following benefits to Zimbabwe:-
- There will be provision of legal advice and services in creditor litigation where misunderstandings arise;
- There will be standing offers of technical assistance for strengthening member countries’ legal expertise and negotiating capacity in matters relating to debt management, litigation, natural resources and extractive industries management and contracting, investment agreements as well as related commercial and business transactions;
- A natural bi-product of subscription to this facility will be to strengthen the legal processes in Zimbabwe through skills transfer;
- The granting of funds to countries to assist in legal fees where advice from top legal counsel is required in the above mentioned areas; and
- Ensuring fair and balanced negotiations;
Functions of the Facility
Mr. President, in terms of Article 2 (2), the Facility shall carry out the following functions and activities in assisting the member countries:-
- Identify legal expertise within and beyond or borders on creditor litigation, debt management and other legal services specific to extractive industries and natural resources management;
- Provide financial assistance to African member countries for actual creditor litigation and negotiations of complex commercial transactions;
- Investing in and organising the training of legal counsel from member countries to equip them with legal expertise necessary to address creditor/vulture fund litigation;
- Establish and maintain a database of specialised law firms and legal experts to represent African member states in legal matters; and
- Promote an understanding of issues concerning identification and resolution of creditor litigation matters involving sovereign debtors against vulture funds and negotiations of complex commercial transactions such as natural resource contracts among others.
Financial Contributions
Mr. President, in terms of Article 6 (3) of the Agreement, financial resources for the Facility are derived from voluntary contributions by participating states, international organisations other than the African Development Bank, signatories to the Agreement, non-participating countries and other private entities.
To this end, Zimbabwe will not be obliged to provide any financial support to the Facility beyond voluntary contributions as a goodwill gesture.
In addition, the country will not be responsible for any debts, liabilities or obligations of the Facility.
Facility Governance Structure
Mr. President, in terms of Article 7, the African Legal Support Facility is overseen by a Governing Council, composed of twelve members who are appointed by the member states, the African Development, international organisations and parties to the agreement.
The powers of the Governing Council are provided for under Article 8.
Furthermore, the Governing Council is assisted by the Management Board, composed of five members appointed by the council, and a director who is an ex officio member of the Management Board.
Immunities and Exemptions under the Facility
Mr. President, each member state shall take all legislative action under its national law and all administrative measures to enable the facility to effectively fulfill its purposes and functions. To this end, the facility shall be accorded the status, immunities, exemptions, privileges and concessions set forth in the agreement under Articles 17 to 25. In this regard, the facility, its property, assets, income, operations and transactions shall be exempt from all taxation and customs duties. Furthermore, it shall be exempt from any obligation relating to the payment, withholding or collection of any tax or duty.
Mr. President Sir, in conclusion, Zimbabwe stands to benefit from membership to the facility, given the challenges we have in negotiating contracts for extractive natural resources, in particular, diamond mining. Furthermore, we also have skills gap in resolving creditor litigation matters involving sovereign debtors against vulture funds and in cases of complex commercial contracts within key economic sectors.
In this regard Mr. President Sir, the African Legal Support Facility will provide specialist legal expertise and experience to the benefit of Government and the private sector. The fact that to date, the facility has received 59 signatories comprising countries and international organisations, is a clear sign that the facility has potential to bring economic gains and legal strengths to our systems. Mr. President Sir, I commend the agreement on Zimbabwe’s membership to the African Legal Support Facility for the approval of this august House. I thank you.
HON. SEN. B. SIBANDA: Thank you Mr. President. I want to
thank the Minister for bringing this item on the facility to this House. I only have one concern, if you look at the lapse in benefit, it totals 13 years from the time the Ministers met or signed that agreement and a total of eight years, during which you have been members of this legal support facility.
Hon. Minister, if we quantify that and look at the potential loss during that period in terms of opportunity, wise counsel or any other saving, it is quite a lot. What I am seeking to understand is, specifically, why do some of these agreements take so long? Do we find them unnecessary at specific times? In this particular one, why has it taken us up to eight years after membership for us to bring it to the august House and possibly be in a position to execute? I thank you Mr. President. *HON. SEN. KOMICHI: Thank you Mr. President for giving me
this opportunity to contribute on the issue that the Minister has brought into this House. I want to thank the Minister for bringing this agreement into the House. I want to look at how Africa, Europe and America are related. The people in Europe have a lot of cash at their disposal, but in Africa, we have a lot of wealth. We have so many mineral resources in Zimbabwe, Democratic Republic of Congo and Sierra Leone but you find that we are the poorest countries. However, the countries in Europe are the ones which are developing using our mineral resources. Even after winning the battles that we fought against them 30 or 40 years ago, we are still lagging behind. I think when we do business negotiations, with the whites, they are ahead of us and the business deals are more beneficial to them than to us. Our negotiating capacity as Africans, is very low and this intervention is the link and we should embrace it as Zimbabwe and Africa at large. Without the capacity to negotiate, we will continue being exploited by the West because they want to sustain their economies with our resources and in the end, we do not benefit anything.
Zimbabwe has a very clear example of when our diamonds were usurped from us, we did not benefit. There is nothing that we can show from the exploitation of the Marange diamonds. Minerals were stolen and I think that if this facility is expedited and people are taught, it will help our country now and in future. We have taken long to do this and if this facility came earlier when diamond mining was started, I think we could have been able to handle the situation well. All in all, I think this facility should be implemented quickly.
*HON. SEN. MAKORE: Thank you Mr. President for giving me
this opportunity. I also want to thank the Hon. Minister for bringing this issue on African Legal Support Facility. This should help us so that we have a good standing in terms of knowledge on our things. I want to thank you Hon. Minister because when people realise their mistakes and seek help from elsewhere, it is a very good thing.
I want to support what Hon. Sen. Komichi said. Many a times we face challenges because shiri yakangwara inovaka neminhenga yedzimwe shiri. We know that the whites are robbing us. We accept everything that adds on to our wisdom by having skilful negotiators so that we know the status of our minerals and this will leave us on a better standing. I want to thank you once again Hon. Minister for bringing this agreement to this august House because there are a lot of packages provided in it. There is nothing that we can refuse, but we should be careful and wise in order to tap on the advantages so that our people will benefit. African things are of good quality.
When I was in Ethiopia, I saw very important developments and this means that the country is developing. There are buildings which I saw in Europe and we can also build the same in Africa if we support each other sincerely and do our things in unity. We cannot resist such a good thing Hon. Minister. We want to thank you.
We have looked at it and scrutinised it and we saw that it is a very good document. From what you are saying, it will help us especially in agriculture. We would want to see how it will go about in mining. To support what Hon. Sen. Komichi said, we did not realise anything from diamonds because we did not have the expertise. You will find that we lost a lot of money and I think you have heard it when something about the $15 billion was talked about. If all that money was channeled into our economy, all of us could be flying aeroplanes. Even yourself in your responsibility of sourcing for funds, you could be a very high powered person that you would just give commands. Other developing countries like Ethiopia, we would surpass them because our country is very small. We stand at an advantage because we are very few. In Ethiopia there are about 96 to 100 million people whereas in Zimbabwe we are talking of 13 to 14 million people. We are very few.
Looking at the resources that we have, there are so abundant and if we do it, looking at the small population that we have, for our country to develop, we could be somewhere in five or six years. I stood up just to thank you Minister for the good thing that you have brought here.
*HON. SEN. CHIPANGA: Thank you Mr. President. I stand up
to add my voice to what has already been said by my colleagues. I just want to say that, this document or agreement as I see it, although it took long to come, I do not see anything that we should spend time debating.
I am happy that all those who have debated before me have come up with the idea that there is nothing that we can oppose – only that if it had been signed since the time that the negotiations started, probably we could not have lost in some areas where we have negotiated. It is very clear that when you look at this document, although I want to complain to the Minister that I have just seen it now. When I looked at it, I could see that it is a facility that will help us as a nation. When we are negotiating on our deals, we would know how to negotiate issues that will take us further as a nation and we will negotiate on behalf of our people. But, if we are not a member of this facility, we will just be grappling in darkness and in the end we will lose out because we would not benefit. We have come across that when we have made agreements with some people, sometimes they would give us machinery and they would bring their own mechanics. That means, if it is money, it would be going back to them in the form of salaries. But, if we are a member of this facility, we will have our negotiators who are skilled and qualified and they would be able to scrutinise professionally. With those few words, I would want to say, as a House, let us come together and support this agreement. Thank you.
HON. SEN. MOHADI: Thank you Mr. President. I also rise to fully support the motion that was presented by the Minister of Finance and Economic Development. Even though I agree that this motion was supposed to have been brought long back, it is sometimes better to be done even though late than never because as we do some of these things, they are learning processes.
I really appreciate that maybe there should be more training on the extraction of our mineral resources so that we do not lose out. But, due to the fact that this facility does not need any money from us, we have to protect what we already have.
Mr. President, I also fully support the ratification of Zimbabwe to be an active member and also get benefits from this development. Mr. President, development is not about having or building big infrastructure or buildings, it is about developing a person and the person is ourselves. The way we live socially and economically, if it improves a person, to me, I have no doubt or any way to refuse that this motion should not be ratified. With those few words Mr. President, I thank you.
HON. CHINAMASA: Thank you very much Mr. President. I
would want to thank all the Hon. Senators who have made contributions. Hon. Sen. Sibanda, rightly points out the delay. I think the delay that we should worry about is from 2008, that is when the then Minister of Finance and Economic Development, the late Cde. Mumbengegwi signed the document. But as usual, after any signing, there are usually discussions on whether or not we should not go to the next stage; that is ratification and those discussions can be very protracted. I imagine that there was that delay because I am not fully in the picture of the reason why. I got to know that that document had been signed when the Chief Executive Officer of the African Legal Facility happens to be one who had worked with me when I was the Attorney General. He is a Ugandan and he is now heading it. So, when I went to Abidjan in mid June I think, he brought this matter to my attention that, are you aware that
Zimbabwe has signed and why is it not proceeding to the next level.
Otherwise, I had no wind of what had taken place before that – either because the official did not give it as much attention as obviously my predecessor had done. Anyway, that is now water under the bridge. We are anxious to be a member and there are already 59 member countries who have subscribed to the membership of the facility and if we had joined earlier, we might actually be in the governing council because notwithstanding our situation, we have a very strong voice on the continent in whatever fora you may talk about. People I think also look for us for leadership sometimes when we are discussing continental affairs. Be that as it may, Senator Mohadi said better late than never.
Senator Komichi, you are right that we are very diverse as a continent and also as Zimbabwe and I think what is incumbent on each and every one of us to interrogate that question why are we poor and yet so rich? I think that we have begun that interrogation and this is part of it to say, how are we faring in our negotiations with other regions and are we concluding agreements which are for our benefit, now and in the future. We are also interrogating the whole mining tax regime. We began an exercise about three years ago to come up with a mining tax regime. We hope that in the next year we should be able to conclude it. It is basically to understand what happens in the taxation in other countries of mining houses.
We are also interrogating even the taxation system that relates to member countries with multilateral institutions that work in our country. This is all under the theme that we should not have the out- force that is coming out of Africa more than the in–force. Development assistance pales into insignificance when we compare with the resources that are going out of the continent but you cannot tackle that issue unless you do it scientifically and systematically. Unless also you know what you are looking for and what is there. If you have no understanding of what is going on and you have no comprehension and capacity, you will never query anything. You will accept anything as given. Mr. President Sir, that is where we should start moving away from.
There is a lot that happens, for instance local companies, I am not saying Zimbabwe but the world over, where they deal with sister companies and their dealings with sister companies is not always on an equitable basis. They will tend to move resources, especially from where they think they are being heavily taxed to where they think there are low tax regimes. So, it will be where their investments are safe and stable.
Senator Komichi, what is critical in terms of development, as a country and as a continent is basically political stability, in my view. You cannot plan anything in a situation where there is political instability. Generally, you cannot even find any continuity. A lot of any development to be effective must be long term. Anything else is short terms. Any short-term development is usually consumptive not development.
If you are planning a road, it takes years to plan from Beitbridge to Harare; just to plan where the road is going to be; where the bridges are going to be. So, it is very important that there should always be continuity and political stability. Investors will not come to any country, even creditors will not lend to any country where they think their money will not come back. I think the continent when you look and see what is happening in the continent, you will understand why basically Africans remain poor. When I look at those refugees in Europe, granted the situation of refugees in Europe have been precipitated by those very countries. It puts a very sad story on our continent, where everyone is running away from resources to go and sit in a refugee camp – [HON.
SENATORS: Hear, hear.] –
Unless we have political stability ourselves, we give opportunity to those who want to de-stabilise us because we are always rivals in the global arena with other countries, from an economic point of view, a political interest point of view and from a global geo-politics point of view. We are always rivals and some of the strategies used to trip rivals is to destabilise. It is a fact, now, if as a country, you are not united and you allow yourselves to be victims of de-stabilisation, you do not blame those who destabilising us. You blame yourselves because you are failing to be united; you are failing to find consensus amongst
yourselves and you allow yourselves to be victims of other people’s machinations.
Senator Makore, thank you very much for the support and you rightly pointed out that it is very important that we have the expertise. Senator Chipanga, thank you very much also for your support. The contributions from Senator Mohadi provoked me to say this. You are right to say that development is not the resources. Development is not what you own, development is about human capital. There are countries without any resources which have economies which are number two or three. Japan has no agricultural land, it is all mountains and probably earthquakes but they are the third largest economy in the world.
So, it is the human capital which is important, which is why our emphasis is on education, on technical training; this is why our emphasis now is on science, technology, engineering and mathematics so that these people create the jobs. These people can create industries and create employment. I agree with Senator Mohadi that development is not about resources. If you have resources and you have no knowledge, they will remain trapped under the ground. You need knowledge to exploit what is underground. I am happy to say that when all is told, continentally; I am not beating our chest. I think in terms of human capital we invested heavily in human capital. If nothing else, we have invested in human capital and in this regard on the continent, we are second to none. It is a fact acknowledged not just by ourselves but by many people who come. They are amazed at the extend and depth of our human capital, wherever they find Zimbabweans, whether it is in the United States of America, Europe or Australia, wherever on the continent, we are a leader in human capital. What is now left is to exploit that human capital to grow our economy. Currently, there is a disconnection between the performance of our economy and the depth of our human capital. It is like these two are parallel; never meeting in perpetuity. We should find a link; we should connect them. If they do, as we hope they will do, this economy will take off in a very fast way. I thank you Mr. President.
Motion for the Ratification of an Agreement for the Establishment of the African Legal Support Facility, put and agreed to.
MOTION
REPORT OF THE DELEGATION TO THE 68TH SESSION OF THE
EXECUTIVE COMMITTEE OF THE AFRICAN PARLIAMENTARY
PARLIAMENT UNION
Third order read: adjourned debate on motion on the Report of the
Delegation to the 68th Session of the Executive Committee of the African Parliamentary Parliament Union.
Question again proposed.
*SENATOR MAKORE: Thank you Mr. President for according
me this opportunity to debate on the report of contributions made in Kartoum, Sudan on 2nd to 3rd June 2016 which was brought in by Sen. Goto.
Firstly, I would like to thank Hon. Senators for the contributions that were made there. It was highlighted that Africa is endowed with a lot of natural resources. In terms of minerals, there is an abundance of resources. This means that the resources in Africa are many but they said that things do not go on well because of exploitation which was caused by the ‘White’ oppression. A lot of African countries, for a long time could not be in charge of their resources. I think that this is a very big issue. I also want to say that when we got our independence, we wanted to turn things around so that we could benefit. This issue is very important to me. We should be serious if we want to turn around our economy from poverty. We need to be sincere and work hard. We should have a vision to show that we are people.
They went on further to talk about democracy, rule of law and governance. These are the things which caused us to be involved in the struggle. We want to be in charge of our resources so that we have Governments that work very hard. From the report, we see that those things should be upheld so that countries will be at peace.
The report also talks about terrorism and extremism happening in these countries which shows that these things are rampant but they are coming from the Government system; from democracy and unity. I also heard Minister Chinamasa referring to it that we should be united. Disagreements should end but some of them are brought by corruption because corruption bites a big chunk and people will be left in poverty.
Climate change was another issue that was raised. Because of climate change, we no longer receive rains on time. Long back, we used to grow rice. My father was a very big farmer. We would receive rains even in September. In October we would have finished planting. Rapoko would be planted in August and we could have bumper harvests but these days we do not have enough rains. Those who used to depend on farming cannot do so. There are no jobs. All this will cause conflicts and disharmony because people do not have anything to eat because of the scarcity of food.
We have abundant resources but we cannot benefit. Those who are in business do not have the skills. They do not know how to handle this. We were just talking about skills when we were talking about negotiations from the ratification that we have just done.
Taking a leaf from Sen. Mohadi, that people should be developed because they are the best resource so far; you find that those who get those jobs without any knowledge will not benefit anything because their skills are limited for them to achieve anything. All this will cause conflicts because if people do not have anything to do and eat, for sure, people die.
We can talk about unity here but if we do not solve the issue of hunger and employment, people will just roam around without any hope about the future, there is a danger.
The second thing which I think is important is about gender. We have talked about it here despite that I am the Chairman of the Gender Thematic Committee, but as an area we should look at it seriously.
From this report, it was found that in Article 14 and 16 of the APU, the requirement is that we should have women representatives. We found that there were no women when we got there, like the one I attended recently - which means that should be spearheaded so that women, in their numbers, should be in productive sectors not for them just to be married. There are so many people who are marrying, especially from the Apostolic Sect; they marry more than one woman. We find that there are more women but we should empower them economically so that we can harvest from them for the betterment of the people.
Mr. Chairman, a lot of issues that I have read from this report are very important. I do not want to waste a lot of time but it shows that conflicts in Africa are increasing because of poverty. We should have somewhere where we can seriously start and start implementing instead of just talking. Again, our governments should know what to do because they are the fathers. The governments are the fathers and should be able to look after their children in their countries. If children are crying in the country, if you just walk around doing nothing as the father, you will fight with your children because being born is not a crime. So, subjects are saying that we should create wealth so that we do not have any conflicts. With these few words, I thank you.
*HON. SENATOR MAWERE: Thank you Mr. President for
affording me this opportunity to add just a few words. Firstly, I want to thank those who went on our behalf to Sudan, Sen. Goto and her delegation. We heard what was articulated on Zimbabwe by other countries on the issue of resources. It was found that Africa is very rich and that is why we are still fighting with those from the west because they still want to come back as they know where the wealth is, where the mines are located and where the rich places are, as they are the ones who were oppressing us. It is very true that if we have so many resources they can end up causing conflicts if the mining and distribution of wealth is not done in a transparent manner.
If you look at places like the Midlands, there are conflicts there which we did not anticipate because the gold panners are engaging in gold panning in towns. We are afraid for the children and women. We have heard that some women witnessed these gold panners fighting for resources. We also heard about democracy. If we practice democracy as we are doing, but seeing that our democracy is being hampered by corrupt people who want to take everything as theirs. The problem that we are facing in Africa is corruption.
Mr. President, if the leadership in Africa can sit down and see how they can end corruption because some people are very wealthy while others are wallowing in poverty. If our leaders can sit down and urge each that whoever steals, because of those who steal, the monies are not kept in those countries but are transferred to offshore accounts. If those people can be convicted so that if someone steals and wants to externalise the funds, we should use Interpol Police as we used to do. I have seen it work before but it was just for a short time. In Africa that is the challenge we have. We just work for a few years and then become corrupt ourselves.
I was also happy about what all those African countries talked about on the issue of women. It was said women should be given an opportunity because if there is no mother in the homestead, even if you are a chief and you do not have a wife, it means there is a challenge. So, women should be high posts and respect, especially in production because if you look at corruption from the media reports, you find that men are the ones who are involved in corruption. If you make women rise in the companies, you find that women work very hard and know that if they steal and are convicted, it is the children who will suffer. So, many times women are very compassionate and do not steal.
Even for a country to be at peace, it is because of women. If women become corrupt or are involved in shoddy deals, that country will not have stability and peace. The peace and stability that we talk about in Zimbabwe is through the women. I think as men, you also saw that if your mothers were not good women, you would not be where you are today. In the homes, if we start criticising what is happening in our nation, it means we will all go astray.
I just want to thank those who went and represented us. I think we should urge all those countries to start implementing it like what Hon. Makore has said because in Africa we are very skilled when it comes to talking and seeing, but when it comes to implementation, we do not do anything. Thank you Mr. President for the time you have given me to add my voice on this report. For sure, without food and employment, conflicts arise.
HON. SENATOR. MOHADI: Thank you Mr. President for
giving me this opportunity of also adding my voice to this reportwhich was presented by Hon. Sen. Goto and seconded by Hon. Sen. Chief Dandawa. It is very important whenever a report is made because it embraces a lot of things. In their report they talked about the youth and we have a time bomb of these youth whom we have to look after. At the moment they do not have employment and yet they need food on the table. So, we have to provide food on the table for these youth. How can we provide the food? We should all put our heads together as a country and find a way out.
These youth need basic education and we should look at the issue of going to school. When I am talking about the youth, I am talking about boys and girls who should be provided with education. Our youth especially in the rural areas attend school from Grade 1 to Grade 7 and thereafter, what is next? We do not have any solution for that. If at all funds were permitting, to me secondary education should be compulsory because this is the time whereby our youth drop out from school and some of them end up going to look for work in the communal farms and mines which are not viable at all. If at all their education was compulsory up to ‘O’ level, maybe even their minds would be mature enough to think further of what to do because at Grade 7, they are still very young and they do not think of anything other than getting employed somewhere. As a country, we should think along those lines.
Mr. President, also in this report there is the issue of moving from
MDGs to SDGs and specifically looking at SDG 1, Eradication of Poverty and Hunger, we should look for systems and not only sing about eradication of poverty and hunger but also systems that will assist us in getting nutritious food because we have to live. Looking also at SDG 2, on Education, I think I have dealt with that one where I was looking at our youths and also looking at the enrolment of those youths who go to school. You find that at the beginning of the year we have enrolment of boys and girls in every school but as we go towards the end of the year, you find that that enrolment will have fallen especially looking at the girl child because of circumstances that are beyond them. There is need to look into that factor so that we can achieve these SDGs.
Looking at the SDG on Gender, most of the times we say we are doing something but Mr. President, looking at the aspect of gender here in Parliament especially with regards to quota system, I am a bit disturbed because we are going for elections in 2018 and in our Constitution we have to go for another five years. Then after five years, what is next? Are we going to achieve that SDG at all? We should think seriously about that because to win a war is not about going to fight but wars are fought on the tables. Let us come with a better solution on how we are going to achieve gender parity, the 50-50 representation. If we do not do that, you will find that by the end of the next five years we will come down instead of stepping forward. Mr. President, when we come to these issues of gender, I become so emotional.
Finally, let me talk about the report that was presented by the delegation that went to Khartoum. We should learn to pay our membership fees on time. In this report, we have gone for three years without paying our membership fees. I do not know whether it has been paid as of now but according to this report, we have not paid and I am urging our administration to look into this matter because if you go to such meetings when you are not a fully paid up member, it becomes difficult to contribute. Other members will just be looking at you saying you are very much fond of talking yet when we come to payments, you do not want to pay. You really feel out of place. With these few words, I thank you.
HON. SEN. GOTO: I move that the debate do now adjourn.
HON. SEN. MOHADI: I second.
Motion put and agreed to.
Debate to resume: Thursday, 8th December, 2016.
MOTION
FIRST REPORT OF THE THEMATIC COMMITTEE ON GENDER
AND DEVELOPMENT ON THE STATUS OF CHILDREN’S HOMES Fourth Order read: Adjourned debate on motion on the First Report of the Thematic Committee on Gender and Development on the Status of Children’s Homes.
Question again proposed.
HON. SEN. MAKORE: I think I would have closed this motion
perhaps by Tuesday as I promised but unfortunately, it was said that Ministers should come and respond to these motions before I close them.
So, I move that the debate do now adjourn.
THE TEMPORARY PRESIDENT OF THE SENATE (HON.
SEN. CHIEF CHARUMBIRA): We should follow procedure in terms of the rules of procedure. When there is a motion and we have debated, before it is closed, there should be a response from the responsible Minister and that is the procedure. What we have been doing by simply winding up and closing the motion is not procedural. I think it falls upon the authorities of Parliament to inform those Ministers that ‘this is the motion as debated; these were the debates and submissions, can you come and respond.’ I think we should insist on that, otherwise we are just here to drink some water, eat lunch, obtain some coupons and go back. I think we would not want to be of no force and effect to that extend. I agree, you are simply to adjourn the debate.
HON. SEN. MAKORE: On that note, I move for the adjournment
of this debate.
HON. MOHADI: I second.
Motion put and agreed to.
Debate to resume: Thursday, 8th December, 2016.
MOTION
SECOND REPORT OF THE THEMATIC COMMITTEE ON GENDER AND DEVELOPMENT ON EARLY CHILD MARRIAGES
Fifth Order read: Adjourned debate on motion on the Second Report of the Thematic Committee on Gender and Development on
Early Child Marriages.
Question again proposed.
HON. SEN. MAKORE: I move that the debate do now adjourn.
HON. SEN. MARAVA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 8th December, 2016.
MOTION
REPORT OF THE DELEGATION TO THE 39TH PLENARY
ASSEMBLY OF THE SADC PARLIAMENTARY FORUM
Sixth Order read: Adjourned debate on motion on the Report of the delegation to the 39th Plenary Assembly of the SADC Parliamentary
Forum.
Question again proposed.
HON. SEN. MOHADI: I move that the debate do now adjourn.
HON. SEN. MARAVA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 8th December, 2016.
MOTION
PRESIDENTIAL SPEECH: DEBATE ON ADDRESS Seventh Order read: Adjourned debate on motion in reply to the
Presidential Speech.
Question again proposed.
*HON. SEN. GOTO: Thank you Mr. President for giving me this
opportunity to contribute a few words to this motion. I would like to support the Presidential Speech. The President touched on a lot of issues and a lot of Senators contributed to this motion. I wish to speak on the issues which touched me most on this motion which I felt I could not resist. The President touched on the issues which affect both the poor and the wealth. This means that his heart desires for the people of Zimbabwe to live well and intends to provide for their welfare. He is at the highest level and we are the Government. The President may not be able to oversee what is on the ground but he delegates this august House to assess the various challenges which are being faced by our constituents, which include but are not limited to hunger and lack of basic resources so that we can report back to him for his assistance.
The President helps the nation through various means like provision of farming inputs and he believes that every citizen must benefit from these provisions. However, as leaders of the people, we are unable to distribute these resources equitably; we end up misappropriating through engaging in corrupt activities. Some people end up receiving these inputs whilst some are unable to access them.
The other issue which pleases me is that the President touched on the Bills which should be introduced to Parliament. I was mostly interested in the proposed Movable Property Security Interest Bill, which he talked about. It is mostly essential for us farmers in both A1 and A2 farms. We do not have immovable properties and this creates an opportunity for us to access credit from banks and increase production. However, when we access these credit lines, we should make sure that we are able to pay back in time. This is similar to the command agriculture, which was introduced by Government where everyone is free to participate. A lot of money has been used to come up with this programme and yet some people will fail to pay back and that is a culture of destroying the economy. I felt so happy to hear about the consideration of this Bill because as it stands, one can only access credit if they have immovable properties, which is in most cases a house and if one does not have a house, they are unable to obtain a loan from the bank. If this Bill is enacted into law, it means that I will be able to use the movable properties that I have which include livestock and others, as collateral. So, we will be independent and we should work hard in order to increase production so that we will be able to pay back the loans in harmony without any form of discrimination.
His Excellency also spoke about supporting Small to Medium Enterprises (SMEs) so that they boost their businesses to an advanced stage. Without taking much of your time, I conclude by saying, I feel so happy about what the President said because I am one of those people who intends to access credit facilities and I have realised that through the Movable Property Security Interest Bill, I will not have any problem in doing so. If people then fail to use such an opportunity, they will not be able to succeed as not many people have succeeded without accessing loans. You have heard the amount of debt owed by this country which the Minister of Finance and Economic Development was referring to, meant to increase economic growth. We need to obtain these loans and work hard in order to increase growth. With these few words Mr.
President, I say thank you for giving me this opportunity.
HON. SEN. MASUKU: I move that the debate do now adjourn.
HON. SEN. MOHADI: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 8th December, 2016.
On the motion of HON. SEN. MASUKU seconded by HON.
SEN. MOHADI, the Senate adjourned at Ten Minutes to Five o’clock p.m.
PARLIAMENT OF ZIMBABWE
Wednesday, 21st December, 2016.
The Senate met at Half-past Two o’clock p.m.
PRAYERS
(THE HON. PRESIDENT OF THE SENATE in the Chair)
MOTION
RATIFICATION OF AN AGREEMENT OF THE GLOBAL FUND
BETWEEN THE GOVERNMENT OF ZIMBABWE AND THE
GLOBAL FUND RELATING TO PRIVILEGES AND IMMUNITIES
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Thank you Madam
President. I move the motion standing in my name:
THAT WHEREAS, Subsection (2) (a) of Section 327 of the Constitution of Zimbabwe provides that an international treaty which has been concluded or executed by the President or under the President’s authority does not bind Zimbabwe until it has been approved by
Parliament;
AND WHEREAS, an Agreement of the Global Fund between the Government of Zimbabwe and the Global Fund relating to Privileges and Immunities was concluded on the 30th day of September 2015 in
Harare, Zimbabwe and;
NOW THEREFORE, in terms of Section 327 (3) of the
Constitution, this House resolves that the aforesaid Agreement be and is hereby approved.
Madam President, it is my singular honour that the Agreement on Privileges and Immunities of the Global Fund to fight AIDS, tuberculosis and malaria be ratified by this august House. Madam President, the Global Fund has been a partner to Zimbabwe since 2002 and has approved grants amounting to approximately US$1,57 billion towards the fight against HIV/AIDS, tuberculosis and malaria in Zimbabwe. As Hon. Senators will be aware and may recall, the Fund was established to mobilise resources to make a sustainable and significant contribution to the reduction of infections, illness and death; thereby mitigating the impact of HIV/AIDS, TB and malaria in affected countries as well as contributing to poverty eradication. The financing of the Global Fund is mainly from development partners, private sector and foundations.
Madam President, Hon. Members, the Global Fund supports the health sector in Zimbabwe through strengthening of health systems and fighting HIV/AIDS, tuberculosis and malaria. The Ministry of Health and Child Care is the executing agent responsible for the implementation of the Fund’s projects. In light of the above, a Global Fund Grants Unit was established under the Ministry which administers the TB and malaria funds while UNDP manages the HIV/AIDS grant.
Madam President, in terms of Section 7 of this Agreement of the
Privileges and Immunities Act Chapter 303, His Excellency the President of the Republic of Zimbabwe, approved the conferment of privileges and immunities to the Global Fund to fight AIDS, TB and malaria. This was done on the 6th of May, 2015 and was published in the Government Gazette on 12th June last year, in a general notice 183 of 2015.
Pursuant to the above, the Government signed the Agreement on Privileges and Immunities of the Global Fund to fight AIDS, TB and malaria on 30th September last year. Madam President, Article 8 (1) of the Agreement provides that the Agreement shall be open for signature by all States including non-board members of the Global Fund and is also open for ratification, acceptance or approval by all States, including non-board members of the Global Fund.
Furthermore Madam President, the signature qualifies the signatory State to proceed to ratification, acceptance or approval. It also creates an obligation to refrain in good faith, from acts that would defeat the object and purpose of the Treaty. In this regard Madam President, the granting of privileges and immunities, will help protect the Fund and its resources by:
- protecting resources which are dedicated to health against taxation, any freeze or seizure;
- acknowledging the neutrality of the Global Fund as a multistakeholder organisation dedicated to achieving the Sustainable
Development Goals;
- enhancing efforts to mobilise more resources to fight the three diseases that I have just mentioned, and;
- protecting the Global Fund from law suits in our country, which can endanger the resources which are dedicated to health.
Madam President, in conclusion, the support from the Global Fund is complementing Government’s efforts towards financing of the health sector as enshrined in the ZIM ASSET. Furthermore, the support seeks to eradicate poverty, provide basic social services as well as transform the livelihoods of our population.
Madam President, I therefore commend the agreement on
Privileges and Immunities of the Global Fund to fight AIDS,
Tuberculosis (TB) and malaria for the approval of this august House. I thank you Madam President.
HON. SEN. B. SIBANDA: Thank you Madam President. First of
all, I would like to thank the Minister for bringing this motion before the
House. Secondly, I would like to state categorically that the Global Fund is one of the most visible organisations, physically and all otherwise. I am sure that the impact of the Global Fund is very positive on our population. We all know the threat of AIDS, the resurgence of tuberculosis and malaria in the country. I think their contribution will go a long way towards negating these threats.
Thirdly, an organisation that invests over US$1.5 billion in any other organisation or in a State, I think it is worth acknowledging as a positive contributor to the health sector of this country. I therefore, feel that the immunities that we are covering the Global Fund with are a necessity.
The only question I have is, I am not clear about the status of the employees of the Global Fund. Do they enjoy some immunities like other organisations which would fall under the United Nations (UN)? I am referring to staff here. Last but not least Madam President, I am very thankful; when we pray, we pray for the just government of men. When we see an organisation which is making a positive contribution towards the welfare of the people of Zimbabwe, I think it contributes to our just government of men. I thank you Madam President.
HON. SEN. CHIMHINI: Thank you very much Madam
President. I also stand to appreciate the Bill that the Minister has brought to this House. I just want to seek clarification. What are the possible threats that have necessitated the privileges and immunities? Is it a question that the Government could virement the money? There must have been a very good reason, if the Minister could explain what necessitated the privileges and immunities.
Secondly, while this is an important move, I know it does not fall under this category but the question of cancer; here we are only talking of HIV/AIDS, TB and malaria but nothing as yet in terms of cancer, whether there could be a possibility to also study considering something that could assist in terms of helping people who suffer from cancer.
Thank you Minister. Thank you Madam President.
*HON. SEN. MUMVURI: Thank you Madam President. Let me add a few words on this motion which was brought by the Minister. I was one of the persons who was ignorant of the functions of the Global Fund until I was seconded to a board on behalf of this Parliament together with Hon. Dr. Labode, that is when I became aware of the issue of the Global Fund. It holds its meetings once every three months.
I am grateful for the work that they are doing. If it was not for the existence of the Global Fund, our health sector could have been in serious problems. Currently, they are dealing with malaria, HIV/AIDS as well as TB. They are doing a good job. I am now in my second term, going to attend the meetings. There are rumours that the Global Fund may withdraw its services from Zimbabwe. It is a worldwide organization and the modus operandi is that once they assist you for some time, they would then wean you off. You need to put systems in place. Currently, they are saying that Zimbabwe has had sufficient operations and now it must put in place measures to take over this initiative, since we had received a lot of assistance from them. Hence you find us asking what would happen, should Non-Governmental Organisations (NGOs) withdraw their support. There is also the UNDP and Ministry of Health and Child Care as principal recipients of this fund and these distribute to other organisations.
As Parliament, we did not have any niche that can receive global funding proceeds. We only have it specifically for the Portfolio
Committee on Health and HIV/AIDS so that we could use it for our Committees to ensure that we conduct our work in eradicating or preventing the three diseases. I would like to applaud the Minister for bringing this motion and I support him but he should declare a conflict of interest because you cannot receive the funding and then distribute it yourself. They are at times disturbed as to why the Ministry of Health and Child Care as a principal recipient are responsible for distribution. They would want a board to do that and leave those technicalities to technocrats?
As has been asked by Hon. Sen. Chimhini, what has arisen to talk about these privileges and immunities? Are these privileges and immunities going to be for the staff or for the other recipients or any other persons? With those words, I thank you because I now appreciate that they are doing a good job. It is visible in every district. There is no need to delay in approving the Minister’s motion. I thank you.
THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Thank you very much. I
want to thank the Hon. Senators who have contributed and are in support of the agreement granting the Global Fund the privileges and immunities in terms of our legislation.
I agree with Hon. Sen. Sibanda. The Global Fund has contributed immensely to our health. I agree with him entirely that this fund has contributed immensely to the health delivery system into Zimbabwe, in particular-in respect to the fight against the three diseases which I mentioned: HIV AIDS, TB and Malaria. In fact the goal of the Global Fund is to work towards complete the eradication of Malaria, but that basically is where their assistance is coming into see whether or not we can have a complete eradication of Malaria.
I also agree that yes, there has been some resurgence of TB and of a different strain, and I believe, which has drugs which are currently in use and sometimes do not work against that resurgent TB virus. So, the researchers are of course very busy working towards finding something that can fight it effectively. You asked a question whether the employees also enjoy immunities. Yes they do, under article 4 of the agreement and these immunities are almost similar to those enjoyed by other international organizations like UN Agencies.
It reads as follows: ‘Officials of the Global Fund shall (a) be immune from the legal process in respect of words spoken or written and all acts performed by them in their official capacity. (b) be exempt from all forms of taxation in respect of the salaries and emoluments paid to them by the Global Fund’ and it goes on. I just gave you just a snippet of what the privileges for employees provide.
Hon. Sen. Chimhini, thank you very much for your question seeking clarification. First it only covers three diseases. Cancer is a subject matter for a different initiative and we have been engaging development partners and also internally, we have been trying to see what we can came out to fight this major problem noncommunicable disease which is cancer. I hope that in the next budget we will have something to say on this subject matter because it is affecting even young people. It is something that was unknown many years ago as the disease used to affect people of a certain age and above, but right now it is almost across all age groups. So, we need now to start addressing this issue.
With respect to what threats are necessitating this, it is a requirement of the Global Fund that we should grant them these immunities which will safeguard their property, their assets from anyone suing them whether it is by employees who may have a quarrel with the employer. Because of this agreement they will not be able to have access to our courts to sue the Global Fund. This is basically to say the Global Fund should spend its time on its core business and its core mandate and not to spend its time in the courts indulging in litigation. So, it is a requirement of the Global Fund, this is why I am here basically to fulfill their requirements so that we can continue to enjoy the support that they give us.
Hon. Sen. Mumvuri, thank you very much for your information from an insider’s point of view. I was not aware that in fact Parliament is represented on the Board of the Fund but thank you very much for that information. This information was communicated last year and in our engagement we have tried to explain to them that currently, given our situation and the fact that we are under sanctions, it will be very difficult to replace the help that they are giving us. Not immediately, but I am sure in another 5 to 10 years we should be talking a different language. However, as of now we have impressed upon them that we need their support, they should continue their support, I think they seem to understand. I think as you sit on that Board also impress on that same message that we are in a unique situation and we hope that after 5 years or so we should have gotten out of this current situation.
So, Madam President, I also want to say that we have already taken a first step towards trying to find local resources to support our health delivery system. In the 2017 budget and this is going to come to you in January for debate and for your approval. We have created a Health Fund which is levying a levy on air time and this money will be ring fenced to go towards purchase and procurement of drugs and medical equipment. We are going to find out in the New Year, it is going to be effective from the first of January. We are going to find out what resources will come into this fund. It will be dedicated basically towards procurement of drugs and equipment. I must say already and I hope that I was just being accosted in the National Assembly over the management of the fund already before it even comes into being. There are very strong views by stakeholders as to how it should be managed. There are allegations - whether true or not, that similar funds have not used optimally; that they have tended to go towards payment of salaries, allowances, purchases of motor vehicles and not going to the intended purposes.
So, I want to say that we will bear that in mind as we set up this fund. We want to monitor its management to ensure that the funds will reach their inedited purpose. With this response Madam President, I move the motion:
THAT WHEREAS, Subsection (2) (a) of Section 327 of the Constitution of Zimbabwe provides that an international treaty which has been concluded or executed by the President or under the President’s authority does not bind Zimbabwe until it has been approved by
Parliament;
AND WHEREAS, an Agreement of the Global Fund between the Government of Zimbabwe and the Global Fund relating to Privileges and Immunities was concluded on the 30th day of September 2015 in
Harare, Zimbabwe and;
NOW THEREFORE, in terms of Section 327 (3) of the
Constitution, this House resolves that the aforesaid Agreement be and is hereby approved.
Motion put and agreed to.
MOTION
STATE OF THE NATION ADDRESS BY HIS EXCELLENCY THE
PRESIDENT
HON. SEN. CHIPANGA: I move the motion in my name
THAT this House conveys its profound gratitude to His Excellency, the President Cde. R. G. Mugabe for addressing a joint sitting of Parliament on the State of the Nation.
Expresses its commitment to and support for the views contained in his address; and that a respectful address be presented to
His Excellency the President, informing him of the sentiments of the House.
HON. SEN. MKHWEBU: I second.
*HON. SEN. CHIPANGA: Madam President, I rise to convey our gratitude for the speech that the President of this country was pleased to give regarding the state of the nation. There are a few points that I am going to raise. Firstly, he spoke about the issue of corruption. He said it was his wish that we should now get to the stage where we should have zero tolerance to corruption. Corruption is a cancer which is not only found in Zimbabwe. Be that as it may, it is good that as Zimbabweans, we eradicate corruption. No country can ever develop where corruption is rife. Our biggest challenge is how to eradicate corruption. The problem is that as a country, we now tend to rely too much on human rights. A section of our Constitution relating to human rights says that everyone should be treated as innocent until proven guilty. Even if one is incarcerated he/she should be treated as a human being.
When dealing with corruption, handling people with kid gloves in that manner cannot work. This is because the current laws that we have say that if an accused person is arrested, it is the duty of those that have arrested him to prove that person’s guilt beyond reasonable doubt. We are all aware that corruption, the world over, is topical and it is difficult to prosecute issues of corruption because it takes two to tango. The beneficiaries of corruption are the people who receive the bribe and those who proffer the bribe. They are party to an illegal transaction and illegally benefit.
The law requires that there should be a complainant who should give evidence and prove beyond reasonable doubt that a prima facie case has been established. In the end the judges will end up acquitting people because of lack of evidence and we also end up casting aspersions on the judges and the police because it is difficult to have a complainant in a case of corruption. Our law requires that there should either be a witness or a complainant to prove allegations against the accused person so that they can be found guilty.
I am reiterating the issue that for us to deal with corruption, we must come up with special courts which are specifically set up to deal with corruption, where there is no principle that the accused person in those courts will not be treated as innocent until they are proved guilty. But in these courts we want to shift the burden of duty from the prosecutor to the accused person. For instance, if one has been found with a lot of money, the prosecutor should be allowed to ask the accused person to account for such riches. Only in that regard will we be able to nip corruption in be bud. If we continue treating corruption in the manner in which we are currently doing, we will become the laughing stock because there will be lack of evidence to convict the accused persons. I believe the time is now, for us to establish special courts which deal with corruption. It is true that we have the Zimbabwe AntiCorruption Commission but if they will have done their duty, the commission will not try and convict this person. The matter goes to court but when the offences were committed the commissioners were not there, so they may not be useful in nailing the accused person. The issue of corruption is now rife even in business.
I am glad that at the moment Government has come up with a law that deals with ease of doing business. This has made it easier for people who want to invest in this country to come and do business with us. That has also taken care of the “bribe me first” or “what is in it for me before I do it for you?” The employees manning those offices would then forget that it is duty first. These corrupt tendencies by the staff have led to prospective businessmen shunning our destination because of these bribes that are required upfront. If they do not give these bribes, they are delayed unnecessarily. Now, those that come and pay the bribe simply come and they are served ahead of those who do not want to pay bribes. As a result of that, the prospective investor shuns our destination and goes to our neighbours. This is all because of corruption. I recall in the 1990s, I was an employee then and the businessmen that came wanted to construct the Beira – Kinshasa pipeline and come up with a dualised road from Mutare to Plumtree. They had said that they would raise their money through the BOT (Build, Operate and Transfer) arrangement. We were unable to do that but we have now gone that route of having BOTs. We could have benefitted then had it not been for these corrupt individuals who wanted bribes upfront. So, we failed to have such a road because of corruption.
We are also aware that we are having a challenge in obtaining licences in communal lands. The person responsible for issuing liquor licences would be dilly-dallying until you know that before you buy beer for that individual, you will not get anything. I am glad that we are going to have an amendment that forces people that issue out licences to give licences within two working days and to respond as to why they are turning down a licence application.
I am glad that the President brought the issue of command agriculture to this House. The process had been delayed but I believe we have now got to a stage where we believe we have now arrived. It was embarrassing for us to go and import food from Zambia and Malawi. I believe that in light of the system that we have and the hectarage that has been under tillage, at the end of this rain season, God willing and subject to our receiving sufficient rains, we will have a bumper harvest and become self sufficient. I am glad that the majority of our farmers have accepted the command agriculture programme. There has been delay in the disbursements of implements but I am glad that is now underway.
The President also talked about STEM which is the thing of the moment in the education sector. In the past we used to send science pupils to Cuba so that when they came back, they could teach science subjects. This programme which has 5 000 students that registered for science and mathematics subjects, we believe that in the near future, we will have sufficient teachers teaching mathematics and science subjects. Once we reach that stage, we will have a lot of scientists and mathematicians sufficient for this country. I applaud that exercise.
Yes, we are leading in terms of education in Africa. We are educated in the arts subjects such as history, political science, B.A General and agriculture. We were not strong in the science area. We are higher than South Africa in terms of teachers that can teach sciences but we have not reached the optimum level. It is my hope and wish that because of the STEM programme, we will scale it to heights and we will not only teach these subjects but we will have scientists that can take this nation further in science education and mathematics in the entire continent.
Mr. President, we are all aware that when we were given the opportunity to chair the OAU and AU organisations, we were the first to come up with programmes to enhance ourselves, such as Agenda 2003. In that way, Africa should now start beneficiating and value addition so that our continent can develop. I am therefore not surprised that people are already saying we left a permanent mark on the continent as we were chairing the AU. With those words Mr. President, I would like to thank you for having afforded me the opportunity to debate on the President’s State of the Nation Address. I thank you.
+HON. SEN. MKHWEBU: Thank you Mr. President for giving me the opportunity to second the motion on the President’s State of the Nation Address. Firstly, the President thanked the private sector very much and the development partners for coming and working together with the Government, and assisting people with food. That shows that as a nation, we should not just depend on the Government alone but we all should feel that we need to assist the Government since the private sector is also working together with the Government. So, it makes it easy for Government. We should not just depend on the Government on its own but if we come together, it makes the job easier.
The other thing is that the Government gave people agricultural inputs such as seed and fertilizers. Every year the Government tries to assist people because people are starving and we really appreciate what the President is doing. I would like to congratulate the President of the nation for caring for the whole nation by assisting with whatever they are lacking. We should not be people who are lacking almost every year and we should not always be begging from neighbouring countries. Therefore, we need to assist ourselves as a nation. Since it is raining and with the assistance of Government, we should engage in massive farming.
Mr. President, the other thing that was highlighted by the President in his speech is the shortage of milk. He said there was a production forecast of 120 million litres of milk, but as a nation, we managed to produce only 58 million litres, which was not enough for everyone. The President encouraged dairy farmers to produce a lot of milk to supply the whole nation. We should not use our resources to buy milk from other countries, thus, the President encouraged dairy farmers to produce a lot of milk.
The President also spoke about artisanal miners. He said that in
2016, artisanal miners managed to produce a lot of gold and this assisted the nation. He encouraged artisanal miners to continue working hard to produce a lot of gold. Funds from the Government coffers were distributed to assist miners, but it was not enough. In this regard, artisanal miners did not get the funding as it was only distributed amongst big companies which have a higher level of collateral security than artisanal miners. We therefore encourage the Government to also take care of artisanal miners who have no implements to use, for example, compressors, drilling machines and other small equipment they need to use in their small mines.
The President is trying to help here and there, but because of corruption which was cited by the previous speaker, we tend not to make considerable progress because even if the money is there, it is only a few people who benefit and the majority get nothing. At the moment, I can say mining is being carried out in every province throughout Zimbabwe and since many people are working on their own, this can assist in the development of the country. With these few words, Mr. President, I thank you.
HON. SEN. TAWENGWA: I move that the debate do now
adjourn.
HON. SEN. MASUKU: I second.
Motion put and agreed to.
Debate to resume: Tuesday, 31st January, 2017.
On the motion of HON. SEN. TAWENGWA seconded by HON.
SEN. MASUKU the Senate adjourned at Twenty Five Minutes past
Three o’clock p.m. until Tuesday, 31st January, 2017.