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NATIONAL ASSEMBLY HANSARD 04 December 2018 45 22 1
PARLIAMENT OF ZIMBABWE
Tuesday, 4th December, 2018
The National Assembly met at a Quarter-past Two O’clock p.m.
(THE ACTING SPEAKER in the Chair)
ANNOUNCEMENTS BY THE ACTING SPEAKER
SUBMISSION OF CONSTITUENCY DEVELOPMENT FUND (CDF)
THE ACTING SPEAKER (HON. MUTOMBA): I wish to
inform the House that in terms of Article 14 of the Constituency Development Fund (CDF) Constitution as read together with Article 18 of the Accounting Officers’ manual, the Constituency Development Committees are required to submit their returns to Parliament on a quarterly basis. To date, only 62 out of 97 Members of Parliament who retained their seats have so far submitted or partially submitted their returns. Consequently, all returning Members of Parliament who have not submitted their returns will not access funding for 2018 until they comply with provisions of the CDF Constitution and the Accounting Officers’ Manual. The CDF allocation for 2018 is now ready for disbursement.
CHANGES TO MEMBERSHIP OF PORTFOLIO COMMITTEES THE ACTING SPEAKER: I also wish to inform the House of the following changes to membership of Portfolio Committees:
Hon. Torerayi Moyo to serve on the Portfolio Committee on
Primary and Secondary Education; Hon. B. Seremwe to serve on the
Portfolio Committee on Higher and Tertiary Education, Science and
Technology Development; Hon. S. Mandiwanzira to serve on Portfolio
Committees on Information Communication Technology and Courier Services and Information, Media and Broadcasting Services; Hon. P. Togarepi to move from Portfolio Committee on Budget and Finance and Economic Development to the Public Accounts Committee; Hon.
Sansole to serve on the Portfolio Committee on Industry and Commerce;
Hon. D. Sibanda to serve on the Portfolio Committee on Justice, Legal and Parliamentary Affairs and Hon. Tsunga to serve on the Portfolio Committee on Higher and Tertiary Education, Science and Technology
VERIFICATION OF BIO-DATA INFORMATION
THE ACTING SPEAKER: I also have to inform the House that all Hon. Members who handed in their bio-data forms to the Public Relations Department are kindly requested to collect them so as to verify the details on the forms before they are uploaded on the website. Public Relations Officers will be stationed in the Members Bar between 1400 hours and 1630 hours from today up to Thursday, 6th December 2018.
The deadline for the correction of the information is Friday, 7th
BUSINESS OF THE HOUSE
HON. TOGAREPI: Mr. Speaker, I move that Notices of Motion
Numbers 1 and 2 be stood over pending the arrival of the Ministers.
HON. GONESE: I have an objection Hon. Speaker. We are all aware that on the 22nd of November 2018, there was a presentation of the Budget by the Hon. Minister of Finance and Economic Development. He sought leave to bring in a Finance Bill to make a provision for the revenues and public funds of Zimbabwe.
Mr. Speaker Sir, it is my submission that this is a very important matter and I believe that the Hon. Minister of Finance should have given priority to this debate.
THE ACTING SPEAKER: Order Hon. Member. The motion
that you are talking about is not the one that we want to debate.
HON. GONESE: It is because Hon. Togarepi’s motion is to stand over Orders of the Day, Numbers 1 and 2. I am very clear Mr. Speaker Sir. The motion by the Hon. Government Chief Whip is to stand over Order of the Day, Numbers 1 and 2. Order of the Day, Number 1 relates to the motion for leave to bring in a Finance Bill. I am very clear on that.
I am objecting to standing over Order of the Day, Numbers 1 and 2. That is my point. We all know that on Tuesdays, apart from Government business taking precedence over all other matters, it is also imperative that when we have a motion for leave to bring in a Finance Bill – that is a matter of urgent importance and one would have expected your Hon. Minister to ask his principle. In the past, we have had a situation where Hon. Ministers who have got important Bills to present to this august House have been excused from Parliament.
THE ACTING SPEAKER: Hon. Gonese, what you are talking
about is Notice of Presentation of Bill.
HON. GONESE: It is alright, I stand guided Mr. Speaker Sir.
THE ACTING SPEAKER: The Hon. Member has actually
understood that the point he had raised is not relating to the presentation of Bills. So, we can now move to the first Order of the Day.
HON. CHIKWINYA: I rise on a point of privilege Mr. Speaker, in terms of Section 68 (d) and read together with Section 69. Hon.
Speaker, today is World Aids Day and the nation joins the international community in celebrating and commemorating the efforts which have been done by the World Health Organisation and our Government in trying to curb the disease.
As a practice Hon. Speaker, the Ministry of Health and Child Care would visit Parliament, conduct voluntary counseling and testing to Hon. Members of Parliament as role models of our society so that we destigmatise the disease within our community.
I would therefore urge you Hon. Speaker, to communicate with the Minister of Health and Child Care that he provides the same services so that we are seen as Parliament to be the leaders in destigmatising this disease. I thank you.
THE ACTING SPEAKER: Thank you very much. That has been noted Hon. Chikwinya.
HON. SIKHALA: On a point of privilege Mr. Speaker Sir -
[HON. MEMBERS: Inaudible interjections.]- THE ACTING SPEAKER: It is noted.
HON. SIKHALA: Hon. Chinotimba, did you not hear the Speaker giving the ruling? On a point of privilege Mr. Speaker Sir. As we are seated here as Hon. Members of Parliament, the country is confronted with a crisis of gigantic proportion. The fuel crisis that is currently being experienced in our country Your Worship, is affecting ...
- [HON. MEMBERS: Inaudible interjections.]-
THE ACTING SPEAKER: Order Hon. Members. Hon.
Chinotimba, order please. Can you approach the Chair Hon. Sikhala?
Yes, I gave you the floor Hon. Sikhala.
HON. SIKHALA: Mr. Speaker Sir...
HON. NDUNA: Thank you Mr. Speaker. - [HON. MEMBERS:
Inaudible interjections.]- It is for his own benefit Mr. Speaker. His shirt is too small. He cannot stand here and parade his bosom. I ask Mr.
Speaker, that before he addresses you he takes care of the decorum of Parliament. He cannot come here and speak about the shortage of commodities with a big belly outside his shirt. –[HON. MEMBERS:
THE ACTING SPEAKER: Hon. Nduna, I will give you the floor after Hon. Sikhala. - [HON. MEMBERS: Inaudible interjections.]-
HON. NDUNA: The horse will have bolted Mr. Speaker –[HON.
MEMBERS: Inaudible interjections.]- He needs to sort out his shirt Mr.
HON. SIKHALA: Thank you very much Mr. Speaker Sir. The point of privilege that I was raising is that, may the Minister of Energy and Power Development provide a statement to Members of Parliament tomorrow, on how he is going to mitigate the state of affairs vis-à-vis the fuel crisis that we are facing in this country. So, we request that tomorrow Wednesday, the 5th of December 2018 is the day when
Ministers come to this House. May the Minister of Energy and Power Development Hon. Jorum Gumbo bring a Ministerial Statement tomorrow to tell the country how we are going to mitigate over the fuel crisis that our people are facing. This is my submission Mr. Speaker.
THE ACTING SPEAKER: Thank you very much Hon.
Member. Noted Hon. Members.
HON. NDUNA: Thank you Mr. Speaker Sir. I am guided accordingly. However, my point of privilege is based on Section 68 as read with Section 69 of the Standing Rules and Orders and it speaks to and about the decorum of Parliament. Mr. Speaker Sir, it is common cause that when we do come into Parliament, we are supposed to be cleared in a certain form which displays not half-heartedly, the manner in which we are supposed to conduct ourselves, both gender across the political divide.
However Mr. Speaker Sir, it is with a heavy heart that I stand here and speak to and about Hon. Sikhala who is dressed in half the shirt. -
[HON. MEMBERS: Inaudible interjections.]-
THE ACTING SPEAKER: Speak to me Hon. Member.
HON. NDUNA: Mr. Speaker Sir, the reason why we are supposed
to come in a jacket and tie, is not to exhibit traits or to exhibit our bosoms. Being a Member of Parliament that has been in Parliament before, Hon. Sikhala needs no education on the decorum, behaviour and dress code of Parliament. It is unfortunate Mr. Speaker Sir and very regrettable that a Member of such a stature – next time do not allow him to debate if he is not properly dressed.
THE ACTING SPEAKER: Thank you very much Hon. Member
– [HON. MEMBERS: Inaudible interjections.]- Order in the House.
HON. GONESE: It is a different one altogether, if you can hear me out Hon. Speaker.
HON. GONESE: It is a different one altogether. If you can just hear me out Mr. Speaker Sir. I am rising on a matter of privilege and that is a right of privilege on behalf of all 87 Members of the National
Assembly representing the Movement for Democratic Change Alliance.
On the 22nd of November, 2018 an incident occurred in this august House whereby the Chair called on the police to eject Members of
Parliament from the Movement of Democratic Change - [HON. MEMBERS: Inaudible interjections]- I want to bring it to the attention of the Chair that yesterday - if you can allow me. Mr. Speaker Sir, I have not even articulated my point. A letter was written to the Speaker of the National Assembly yesterday the 3rd of December 2018 bringing to his attention the fact that the action by the Chair in calling on the police was in violation of the Standing Orders of this House. That is the point I am making Mr. Speaker Sir.
On the day in question. the purported conduct of the Hon. Members of this side of the House which led to the Hon. Speaker unprocedurally and illegally calling upon the police to eject Members from this august House was not based on any precedent, either in our jurisdiction or in jurisdictions with similar practices. In our neighbour, South Africa there was a similar incident and when the matter went to their courts, it was ruled that it was unprocedural and unconstitutional to call upon members of the police to come into the Chamber.
If you look at the Privileges and Immunities of Parliament Act, Members of Parliament have got rights and privileges which they are entitled to exercise. In terms of Section 59 just like all Zimbabweans, Hon Members of Parliament have got freedom of expression. In terms of the Standing Orders, there is no specific rule which requires Hon.
Members to stand for anyone other than the Hon Speaker, when the Speaker walks with his procession.
The President of ZANU PF is not a Member of Parliament – [HON. MEMBERS: Inaudible interjections.] - There are specific occasions – let me just finish. I am still on a matter of privilege – [HON.
MEMBERS: Inaudible interjections.] –
THE ACTING SPEAKER: Order Hon Members. Order in the House, Hon. Members standing at the back. The letter that you are talking about was only written over the weekend and I am very well informed that the Hon. Speaker is well versed in the matter and he will be coming back to answer to that later. At the moment can you stay put?
HON. MUSABAYANA: Mr. Speaker Sir. I am rising on the point of privilege. The Hon. Member is referring to the Head of State as a President of ZANU PF. He has to withdraw that.
THE ACTING SPEAKER: Order in the House Hon. Members.
FINANCE BILL: BUDGET DEBATE
First Order read: Adjourned debate on motion for leave to be granted to bring in a Finance Bill.
Question again proposed.
HON. MHONA: Thank you Mr. Speaker Sir. I rise to present a
Committee Report on the analysis of the 2019 National Budget. The
2019 National Budget themed “Austerity for Prosperity” was presented by the Minister of Finance and Economic Development, Hon. Mthuli Ncube on 22nd November, 2018. The Budget is influenced by the country’s long term goal of transforming the country into an Upper
Middle-Income society known as Vision 2030. To achieve this vision,
Government developed a short-term stabilisation strategy – the
Transitional Stabilisation Programme (TSP) to run from October 2018 to
December 2020. The TSP’s immediate objective is macro and fiscal stabilisation and laying a solid foundation for attaining strong, sustainable and shared growth.
The budget presentation was in compliance with Section 305 of the Constitution of Zimbabwe and Section 28(1) of the Public Finance
Management Act [Chapter 22:19]. The Budget adheres to the PFMA, the Reserve Bank Act [Chapter 22:14] as well as the Public Debt
Management Act [Chapter 22:21] with regard to fiscal targets on level of budget deficit, Central Bank lending to Government and public debt. Moreover, an allocation of US$30m to Provincial and Local tiers of
Government is in compliance with Chapter 14 and Section 301(3) of the
Constitution which provides for allocation of “not less than give cent of the national revenues raised in any financial year to the provinces and local authorities as their share in that year”.
The Budget, Finance and Economic Development Committee sought and received stakeholder reactions on the 2019 Budget from the Bankers Association of Zimbabwe (BAZ), Zimbabwe National Chamber of Commerce (ZNCC), Chamber of Mines (COM). Confederation of Zimbabwe Industries (CZI), Ministry of Finance and Economic
Development, Zimbabwe Council of Churches and the Insurance and Pensions Commission (IPEC). The consultations were done against a backdrop of budget input obtained from public bearings done in compliance with Section 28(5) of the PFMA [Chapter 22:19].
Extent to which Committee Recommendation were
Incorporated into the Budget
The Budget, Finance and Economic Development Committee commends the Minister for incorporating some of the Committee recommendations into the 2019 Budget. These include;
- Revoking the retention authority for retention funds created in line with Section 18 of the PFMSso that all revenue is deposited in the consolidated revenue fund in line with Sec 302 of the Constitution-
- Commitment to review the Command Agriculture financing mechanism with a view of sharing the burden between Government and the private sector (Paragraph 278);
- Availing US$5.3 million to facilitate more surveys required for granting 99 year leases. There is however need to make these leases bankable assets, as recommended by the bankers or transferrable;
- Allocating $300 million towards rehabilitation of the BeitbridgeMasvingo which is expected to cost US$1.2 billion and to be funded from an Infrastructure Bond,(Paragraph 392-402);
- Allocating US$310 million to Provincial and local tiers in line with
Chapter 14 of the Constitution (Paragraph 661);
- Allocating US$686.9 million (inclusive of health levy) to ensure that the referral system is re-established in order to reduce bottlenecks being experienced at tertiary and central hospitals (Paragraph 483).
- Suspending duty and tax on sanitary wear for a period of 12 months beginning 1 December 2018 (Paragraph 837-838) and proposal to exempt imports of sanitary ware from Value Added Tax;
- Suspending Duty on Goods for use by Physically Challenged
Persons (Paragraphs 839-844);
- Efforts towards establishing a One Stop Investment Centre which has been on the cards for more than 10 years. There is acknowledgement
of cabinet approval of the establishment of the Zimbabwe Investment Development Agency (ZIDA), through amalgamation of investment agencies. Action is however needed beyond the usual rhetoric; and
- Restructuring AGRIBANK to revert back to its core functions of financing agriculture.
HON. CHIKWINYA: On a point of order Hon. Speaker. Thank you Hon. Speaker. We are debating the most important Government policy, which is the National Budget. The presenter of that Budget, who is the Minister, is not here. The Chief Whip of ZANU PF in this Parliament had indicated that the motion be stood over until the Minister arrives in Parliament in respect of the nation and the importance of the work before us. So, I see it as disrespectful of Parliament by either the Minister himself or the Government in its entirety for us to debate this motion in his absence. How is he going to respond? – [HON. MEMBERS: Hear, hear.] – How is he going to hear our input? So, I propose that we abide by the Chief Whip of ZANU PF‘s assertions that we stood over this motion until the Minister arrives. In fact we are aware that the Minister has resigned.
An Hon. Member having stood up to give a point of order.
THE ACTING SPEAKER: I have not given a response to the
point of order raised. Thank you. Hon. Chikwinya, please be informed that the Hon. Minister gave his apologies as he is away on Government business – [HON. MEMBERS: Inaudible interjections.] – His officers are present and taking notes of the debate that is going on. So, the debate will be presented in the Hansard.
Hon. P. D. Sibanda having stood up to give a point of order.
THE ACTING SPEAKER: Please Hon. Sibanda we have come
here for Parliamentary business not points of order – [HON.
MEMBERS: Inaudible interjections.] – I have made a ruling.
Hon. Sibanda was asked to approach the Chair.
HON. MHONA: Thank you Mr. Speaker Sir. I will proceed
with my report.
1.1 The introduction of the Infrastructure Investment Plan as part of the budget documents is also commendable. The relevant Ministries must provide timely and relevant updates on the implementation of the projects as required by the PFMA (Section 32,33 and 34). Transparency in both procuring of the projects as well as consistent and timely feedback on project implementation will help to get the right service providers at the right cost and avoid costly project overruns. Parliament must take note of all the proposed projects and provide effective oversight of budget implementation
1.2 The Committee is however concerned that the Minister did not consider some very pertinent Committee recommendations including:
- Government re-applying for re-admission into the London Bullion
Market Association (LBMA) for selling Gold; ii. Including a Charter of Fiscal responsibilities on the budget pack presented by the Minister to Parliament, as per the Hon. Speakers
iii. Establishing a well-resourced cancer hospital or introducing a cancer levy; iv. Supporting teacher training in local languages especially for Kariba,
Binga and Beitbridge among other places;
- Introducing an Education Equalisation Fund to fund rural education and development; vi. Ring-fencing revenue from the reconsidered 2% per dollar tax to fund the provision of social services and social safety nets; vii. Expeditious auctioning of Government property to ensure that it does not lose out from depreciation of assets.
2. ANALYSIS OF THE 2017 BUDGET
2.1 Credibility of projections in the Budget
2.1.1 The Committee observes that the 2019 overall growth projection of 3.1 % may be difficult to achieve, given the challenges the economy is facing such as foreign currency supply and allocation inefficiencies, exchange rate misalignment, inflationary pressures and reduced aggregate demand. The Committee is also of the view that the budget deficit of $1.6 billion in 2019 from US$2.8 billion in 2018 is ambitious given the prevailing macroeconomic environment and tight fiscal space.
2.1.2 Inflation is projected to close at 25.9% in 2018 from an initial budget target of 3.01%. In 2019, inflation is projected to close at 5% and to increase to 5.5% in 2020 and 5.8% in 2021. The Committee feels that these inflation projections are highly optimistic and will likely be missed, considering foreign currency shortages which are likely to push parallel market rates. Moreover, the increase in excise tax on fuel and payment of duty in forex for selected goods is also expected to push inflation up. Expected low rains will also have a bearing on the food inflation. That together with the high cost of agricultural inputs may dent the anticipated inflation targets.
2.2 Currency issues
2.2.1 The Committee is concerned with the insistence in the budget that the RTGS/Bond and US$ exchange rate is 1:1 in an economy where a three tier pricing system is evidently widespread and is affecting the already burdened members of the society. This situation has been strengthened by recent policy pronouncements related to differentiation of local currency and NOSTRO accounts.
HON. MUSHORIWA: Mr. Speaker Sir, I move that the
Hon. Member’s time be extended.
HON. CHIKWINYA: I second.
HON. MLISWA: On a point of order. Mr. Speaker Sir, it is quite worrying that it seems that the opposition and myself are appreciating the economics and there is silence in ZANU PF. I do not know if the Hon. Member is safe. –[HON. MEMBERS: Inaudible interjections]- I do not know if the Hon. Member is safe. They seem not to be appreciating the economics. Is he safe, why is there so much silence?
THE ACTING SPEAKER: Thank you. Hon. Member
please resume your debate.
HON. MHONA: The Pre-Budget Strategy Paper for 2019
correctly points the exchange rate misalignment and the existence of a parallel market with a premium of 70% for every US$ to the RTGS/Bond (Local currency) in June 2018. This misaligned exchange rate essentially means that the Government is subsidising consumers using surrendered forex from exporting firms. The inconsistencies arising from such a position is the contributing factor to the current confidence deficit.
2.2.2 The Committee is also concerned with the likely challenges arising from implementing a US$ budget with devalued Bond or RTGS payment systems which imply huge costs on programme implementation. The fallacy of a US$ budget against Bond notes medium of exchange is threatening the implementation of this budget and negates the impact of the proposed reforms as the allocated resources are inadequate to meet expenditure forecasts, in real terms. The committee therefore wonders how the budget is going to account for Revenue and Expenditure where one part is forex and the other RTGS/Bond. One cannot discount the potential for illegalities and rent seeking behaviour.
2.3 Budget Information
2.3.1 The committee Calls upon Treasury to work towards improving budget information. Total Revenue including retained revenue is given as US$ 6.5982 billion in the Budget Statement (page 37) whilst this is US$6.617 billion in the Bluebook (page 9).Total
Expenditure and Net Lending is shown as US$8. 164.3 billion in the Budget Statement (page 38) whilst in the Bluebook (page 9), it is given as U$8.172.3 billion. Thus, the budget deficit is US$1.566.1 billion according to the Budget Statement (page 38), but in the Bluebook (page 9), it is lower at US$1.555.3 billion leading to a net difference of about US$10.8 million. These problems of budget information inconsistencies were flagged out in the 2018 budget and have been repeated in the 2019 budget. Extra care is thus needed when preparing the budget to ensure consistency and credibility of the information presented.
2.4.1 Parliament was allocated $101 million constituting about 1,47% of the budget against a request of $163 million. The allocation to Parliament has been on an increasing trend, from $39.7 m in 2017, $80m in 2018 to $101m in 2019 (26% increase). While the Committee acknowledges the increment in Parliament funding, the following should be noted:
- CDF allocation of $16.8million, is inadequate as it translates to $80 000 per constituency and is 60% of the Budget requirement of $28m. It is however 60% above the $10,5m allocated in the 8th Parliament.
- $500 000 for 210 Constituency Information Centres ($2381 per constituency) is a pittance given the state of the CICs. The allocation is a meagre 2% of the requirement. Plans to reestablish constituency information centers that are meant to improve the effectiveness of members as per the strategic plan will not be possible with such a provision.
- Parliament Budget estimates for employment made provision for the filling in of all vacant posts. Treasury concurrence was
granted for 60 vacant posts and the remainder will be considered on a staggered arrangement. The allocated $2.3m falls short of the required $4.6 million.
- Vehicle loan scheme with rebates on duty was allocated $15.75 m out of the $21m request, which translate to $45,000 per member.
- A reasonable 90% budget allocation was made to Committees. Emphasis should be on timely release of funds to enable committees to discharge their constitutional mandate without interruptions. The budget allocation has an effect of reducing the 30 meetings, 5 filed visits per committee and 5 Public hearings by 10%.
- A reasonable 85% allocation was made for sessional expenses. The allocation has an effect of reducing the budgeted 90-day calendar by 15%. Parliament has an option to institute costs cutting measures to stay within the allocation. Goods and services are being inflated due to late payments of invoices.
- Treasury has continuously made provisions in the budget for the
Women Parliamentary Caucus. However, the budget allocations have not been met with the actual release of funds resulting in the committee relying on Development partners for their activities.
2.4.2 The Budget allocation to Parliament must be met with timely release of funds to ensure continued service delivery to Parliament. Some firms inflate their invoices due to delay in payments reducing the buying power of the budget. Parliament must invest in carrying out a mileage verification exercise and institute control on mileage and hotel accommodation to curtail leakages in these expenditure items.
2.4.3 As a custodian of constitutional democracy, Parliament needs adequate resources to carry out its mandate consistent with Section 325 (b) of the Constitution and there should be no negotiation in that regard. Moreover, the concept of separation of powers entails that funding of Parliament should be a separate process to the main budget and Parliament and as one of the three arms of the State must manage its own funds. In view of the above observations, the Committee urges the Hon. Minister to marginally adjust upwards the Parliament’s vote to enable the institution to effectively carry out its mandate as provided for in the Constitution.
2.5 Allocation to the Ministry of Finance and Economic
Developments and Institutions under it
2.5.1 The Committee is concerned with the inadequate allocations to ZIMRA and ZIMSTAT and calls on the Minister to revise these allocations upwards. The allocation to ZIMSTAT of $20.9 m will not facilitate timely production of socio-economic statistics including disaggregated GDP figures. ZIMSTAT requires a total funding from both Government and Donors of US$38.102 million.62 % of the total budget will go towards undertaking of surveys and censuses, 13% Employment costs and the balance of 25% is earmarked for Support Services. 17 % of the total budget will be for Capital expenditure.
2.5.2 On the other hand, ZIMRA has got a five-year Strategic Plan from 2019 to 2023 which aims to grow revenue collections to 25% of GDP from the current 20% to GDP. Operational costs should be within the standard cost of collection ratio of 3% which means for every dollar of revenue collected ZIMRA should spend no more than 3 cents. As such, if ZIMRA is supported through adequate funding, it will be able to surpass the 2019 revenue target of USD6.6 billion.
Item 2019 Budget Request (USD) Approved Budget(USD)
Staff Costs 142,056,070 94,680,000
Operational Costs 47,989,095 39,000,000 Capex 92,906,235 30,000,000m
3. OTHER RECOMMENDATIONS
The Committee recommends the following:
3.1 Government must conscientiously implement the proposed expenditure rationalisation measures which, in essence, are not new and have been proposed over the years without implementation.
Enforcement of the proposed measures will ensure fiscal indiscipline through strict adherence to legal provisions related to the management of public finances including the Constitution, Public Finance Management Act (PFMA), Audit Office Act, Public Procurement and Disposal of Public Assets Act, Public Debt Management Act and other laws. In that regard, all implementing units should timeously submit monthly, quarterly and annual reports to parliament to facilitate oversight of policy implementation.
3.2 Exporters (Mining, tobacco etc) should be exempted from payment of taxes in originating currency bearing in mind that they only retain between 50% and 55% of revenue in foreign exchange while the remainder is liquidated at 1:1. If the payment of tax in originating currency proposal is to be implemented across the board, there is then need for a corresponding upward adjustment of retention thresholds to capacitate these firms to absorb paying taxes in foreign exchange.
3.3 Government should allow royalty to be deductible as a tax expense in line with best practice taking into account that royalties are a direct and significant cost of production and the need to maintain the viability of the mining sector which has become the “goose that lay the golden egg”. This issue has been raised since 2014 and the Ministry of
Finance should clearly pronounce itself on this matter. According to
Earnest and Young study (2015), countries such as Mozambique, Zambia, Democratic Republic of Congo (DRC) and Tanzania have more than doubled their Foreign Direct Investment (FDI) in the mining sector after adopting low and stable mining royalty regimes.
3.4 Mining fees and charges should be aligned to those of major mining jurisdictions in SADC, North America and Australia. This again has been recommended over the years with no action on the ground. The Ministry should bear in mind that as a country, Zimbabwe competes for the same investors with these countries.
3.5 The setting up of the Mining Cadastre Information System must be finalised in 2019, given that the US$1.7 million has been prioritised. This is an important system which should increase transparency in the mining sector.
3.6 TheUS$59.6 million allocated in support of various social safety nets designed to reduce poverty and inequalities is insufficient given the outstanding debts for programmers like BEAM and past record with regards to levels of spending on Drought Mitigation, health assistance, flood victims, accident victims among others. The Committee therefore calls on the Ministry to increase funding to these social safety nets to at least $ 100 million and to ensure timely disbursements of the funds. This increase is also justified by the need to absorb the unintended consequences of the reforms and austerity measures.
3.7 Government must prioritise a payment plan towards obligations to the International Air Transport Association (IATA) so as to revive the tourism sector.
3.8 Government must prioritise Establishment of a Commodities Exchange for marketing of agricultural goods which has been on the cards since 2010. As such, Parliament should get quarterly reports on the matter. The Committee recommends building on efforts that have already been done in this regard including several study visits, registration of a private company Commodity Exchange In Zimbabwe (COMEZ) on 8 June 2010 which culminated in the release of seed capital of US$1million in 2013.
3.9 Government must finalise the incentive framework and other supportive job creation measures during the first quarter of 2019. In this regard, extensive and inclusive consultations should be undertaken. Reference can be made to the World Bank report (2015) which estimated local content policies which were backed with tax incentives in the food and beverages sector to have been responsible for attracting $5 billion into the local economy and created 38,000 jobs in Nigeria.
3.10 Government must engage competent financial advisors in order to get the best value from the proposed Public Enterprises Reform
Programme. Parliament must be engaged in all these processes.
3.11 Government must take an incremental budget approach to capital projects in the education system, and more resources must be allocated every year. Generally, there is need for timely disbursements of capital projects funds.
3.12 Government should strengthen its loan recovery mechanisms for Government facilities including the Command Agriculture programme instead of burdening taxpayers and increasing national debt. In the same vein, there is need to free such programmes of corruption through enhancing the roles of institutions and improvement on transparency and accountability.
3.13 There is need for extensive consultation before announcements of key policy proposals for stakeholder buy in. It was noted that the introduction of the IMTT without proper consultation and effective communication on how the tax proceeds are to be used led to an unanticipated response which saw an upswing in prices.
3.14 Retrenched Youth Officers should be given their perks on time to facilitate meaningful investments from the proceeds. There is also need for training of the officers so that they can be absorbed into other Government departments.
3.15 Dealing with Corruption and Indiscipline:-Dealing with corruption and indiscipline is an important step in cleaning up the image of the country and reducing the cost of business. If leakages haemorrhaging the national purse are not sealed, proposals for growing the national cake will not succeed. The adoption of smart technology is one step in the right direction. On the other hand, implementation of the Auditor General’s reports will go a long way in plugging resources leakages and improving efficiency in service delivery. In the same vein, the Committee comments the more than a doubled non-wage allocation to ZACC to US$5m and calls upon ZACC to use these resources responsibly and to discharge its duties as expected, without fear or favour.
4.1 The Committee commends the Minister for crafting a progressive budget which seeks to address the twin deficits that have for long militated against growth of the economy. Zimbabwe has never been short of good economic policies but the only set back has been the lack of implementation and policy inconsistencies. Implementation and unity of purpose are key to achieving the budget objectives.
4.2 The Committee therefore recommends the House to approve this budget, subject to incorporation of these and other recommendations from Parliament.
HON. TONGOFA: Thank you Mr. Speaker Sir. I represent the Committee on Youth, Sports, Arts and Recreation. The ancient view that academics are the only doorway to prosperity has received great criticism in recent years. Evidence is abound that those who excel in sport and arts have achieved a greater standard of living than the proverbial bookworms. In addition, youths that involve themselves in sport, arts and recreation tend to enjoy better quality lives than those who are one-dimensional in pursuit of academic greatness. It has been established that these extra-curricular activities reduce absenteeism rates in schools as well as occupying youths, thus keeping them away from drug abuse and criminal activity. All work and no play make Jack a dull boy! Acquisition of skills through vocational and technical training, also increases the opportunities at the disposal of youths to eke out a living. Thus, it is incumbent upon all nations that seek to socially and economically empower their youths to take sport, arts and vocational training seriously as they will be sowing seeds for future improvements in livelihoods and development of the country. Vision 2030 cannot be achieved by solely focusing on academics. In addition, the African
Union came up with the theme for the year 2017 to “Harnessing the Demographic Dividend through investments in Youth.” Youth are very important stakeholders in the achievement of the objectives of Agenda
- It is estimated that the population of those 30 years and below in Africa is over 60 percent. Thus, the realisation of the youth demographic dividend will only be realised if there is adequate investment in their economic, political and social agency.
The mandate of the Ministry of Youth, Sport, Arts and Recreation is to ‘formulate and implement policies, strategies and programmes to promote the development and empowerment of youth and transformation of sports, arts and recreation of sectors into vibrant industries for employment creation. The Ministry is comprised of service delivery areas that include;
- Youth Development and Employment Creation.
- Skills Training and Youth Services.
- Sports and Recreation Promotion and Development.
- Arts and Culture Promotion and Development.
1.1 Youth, Sports, Arts and Recreation Budget Analysis
The vote appropriation to the Ministry of Youth, Sport, Arts and Recreation was $53,495,000 against a bid of $185,761,946; an underallocation of 71.2 percent. This is against a background of high youth unemployment estimated to be 15.3 percent of the 15 to 35 years agegroup. This age group is approximately 36 percent of the total population of Zimbabwe and should be accorded the priority they deserve in order to enjoy a better future of economic independence. On an annual basis, roughly 300,000 pupils undergo Ordinary Level examinations and less than 20 percent of these proceed for higher level academic training, that is Advanced Level and beyond. This means that, approximately 240,000 school levers enter the labour force via the unemployment route, and will highly likely get employment in the informal sector either as employees or entrepreneurs. If nothing is done to arrest this challenge, Zimbabwe will increasingly become more and more informalised, making the attainment of middle-income status by 2030 difficult. Table 1 shows the top 15 vote appropriations in the 2019 budget.
Table 1: Top 15 Vote Allocations for 2019
|2019||% of Budget|
|2||Lands, Agric., Water||989,298,000.00||15.23%|
|10||Office of President and Cabinet||294,700,000.00||4.54%|
|15||Youth, Sports, Arts & Recreation||53,495,000.00||0.82%|
From Table 1, the Ministry of Youth, Sport, Arts and Recreation is ranked 15th in the2019 budget, with a 0.82 percent share of the vote appropriations. With a youth population of about 36 percent, this allocation contradicts the youth empowerment mantra which is engendered in Vision 2030. The youth are the drivers of tomorrow’s economy and should get adequate attention now to foster future development. Table 2 shows the Economic Classification of the Budget Allocation.
Table 2: Bids Economic Classification of the Overall Budget
|MINISTRY OF YOUTH, SPORTS, ARTS & RECREATION BUDGET|
|2019||% of Vote|
|Goods and Services||8,723,000.00||16.31%|
|Acquisition of Fixed Capital Assets||14,490,000.00||27.09%|
The distribution of the budget is such that 72.54 percent has been appropriated to Current Expenditure whilst the balance (27.46%) is going towards Capital Expenditure. Under Current Expenditure,
Employment Costs take up the lions share whilst Current Transfers and
Maintenance have the smallest share. The $5 million for Current Transfers will be channeled towards the Arts Development Fund, Sports and Recreation Fund, Youth Development Fund, National Youth Service and the Zimbabwe Youth Council. As for Capital Expenditure, almost 99 percent is going towards Acquisition of Fixed Capital Assets and about 1 percent appropriated towards Capital Transfers (National Arts Council of Zimbabwe and National Gallery of Zimbabwe at $100,000 each).
1.2 Implications of the Budget
Table 3 shows the allocations to the five programmes against the bids presented to Treasury.
Table 3: Bids and Appropriations for Programmes
|PROGRAMME||BID||ALLOCATION||VARIANCE||% of Vote|
|Policy and Administration||37 254 845,00||15 793 000,00||57,61%||29,52%|
|Youth Dvt & Empl. Creation||35 094 694,00||3 285 000,00||90,64%||6,14%|
|Vocational Training & Youth Svcs||28 812 017,00||19 510 000,00||32,29%||36,47%|
|Sport & Recreation Promo. & Dvt||70 910 526,00||10 084 000,00||85,78%||18,85%|
|Arts & Culture Promo. & Dvt||13 689 864,00||4 823 000,00||64,77%||9,02%|
|Totals||185 761 946,00||53 495 000,00||71,20%||100,00%|
The distribution of the budgetary allocation to the Ministry shows that the bulk of the resources have been channeled towards Vocational Training (36.5%) and the least being allocated to Youth Development and Employment Creation (6.1%). This kind of allocation seems to suggest that great emphasis is placed on skills development but minimal effort when it comes to creating opportunities for the deployment of the acquired skills. Since our day-to-day lives are essentially culture, the allocation to Arts and Culture Promotion and Development (9 %) is very low given the employment potential it possesses.
1.2.1 Policy and Administration
The initial objectives of the Ministry under this Programme item included ward-based project monitoring and supervision; acquisition of 10 twin cabs, 73 single cabs (one per district), 2 500 motor bikes; internet connectivity in all provinces and districts; as well as conducting conferences and workshops (4 each). As such, a bid of $34,254,845 was placed but Treasury was only able to appropriate $15,793,000 (42.39%).
This means that the Ministry will;
- Struggle to implement ward-based monitoring and supervision.
- Fail to acquire necessary vehicles for decentralised monitoring and supervision.
- Be able to install internet facilities but only at provincial level.
- Only conduct two workshops and one conference.
As such, the monitoring and evaluation role of the Ministry will be seriously handicapped by the underfunding to the tune of 58.6 percent.
1.2.2 Youth Development and Employment Creation
Youth Development and Employment Creation is very crucial for national development. This age group can potentially be economically active for 30-50 years, assuming they live up to the age of 65. With such potential, this group of the population essentially holds the keys for future economic development of the country. This can only happen if there is a deliberate effort to capacitate the youth through equipping them with skills as well as ensuring that the economy can accommodate the skilled youths on the job market or as entrepreneurs. Currently, the nation faces a problem of high youth unemployment as well as underemployment. Some skilled youths are resorting to vending in order to sustain their livelihoods.
Youth Development and Employment Creation has two-subprogrammes, namely Youth Development and Employment Creation.
Some of their priority areas of deliverables include;
- Youth leadership development, integration, mainstreaming and participation.
- National Youth Policy review.
- Operationalisation of MOUs on Youth Exchange programmes.
- Research and Development (business ecosystems, value chain development, market research, quality checks).
- Youth Financial Inclusion (EmpowerBank).
- Establishment of Incubation and Industrial Hubs.
- Project monitoring and evaluation.
For Youth Development, a bid of $4,654,546 was met with an allocation of $717,000, giving a variance of 84.6 percent.
Correspondingly, Employment Creation was only allocated $2,568,000 from a bid of $30,440,148; a variance of 91.6 percent. If attempts by the Ministry to fight youth unemployment and underemployment are not given due consideration, then it means that youths can consider themselves to be a disempowered lot. The following reveals the implications of the budget to this programme item;
- The Ministry will be unable to print 100,000 copies of the revised Youth Policy Document. They will have to resort to alternative media (Ministry and parastatal websites, and radio programmes).
- Foreign travel to countries like China, Iran, Malawi, Namibia amd Zambia, under the Youth Exchange Programme will not be feasible.
- All 10 Youth Interact Centres will be renovated, get internet installation as well as offer life skills programmes. However, providing security for these facilities will prove to be a challenge.
- $500,000 was required for youth grants to growth and initiatives of clubs and associations affiliated to the Zimbabwe Youth Council
(ZYC), but nothing was allocated.
- ZYC sought $2,570,000 to host 3 sessions of the Junior Parliament at both national and provincial levels; decentralise activities to provincial levels as well as acquire motor vehicles to support operations. From the allocated $368,000, only 1 Junior Parliament session will be held at national level; decentralisation will not be feasible; and no new vehicles will be acquired.
- Only 5 out of 10 youth provincial expos will be held. This provides initial exposure of youths to the business ecosystem.
- 4 out of a target of 7 youths will attend the African Union Youth
- 6 out of a target of 10 Incubation Hubs will be established.
- Out of a target of 5 Industrial Hubs, zero will be established.
- No funding was availed for the recapitalisation of the
This programme item of the Ministry was grossly underfunded with $3.285 million being allocated from a bid of $35 million. The underfunding to the tune of 91 percent will seriously affect the operations of the Ministry in empowering youth for the achievement of sustainable development. Vision 2030 is anchored on rapid industrialisation which can only be supported with a corresponding skills base to ensure that Zimbabwe will be part of the 4th Industrial
Revolution. Of note is zero funding for the proposed 5 Industrial Hubs is as good as erecting barriers to progress. Such hubs provide adventurous youths with the opportunity to innovate come up with new technologies which could see Zimbabwe embarking on an economic growth path similar to that of the Asian Tigers (South Korea, Singapore, Taiwan and Hong Kong. In addition, zero funding for the recapitalisation of the EmpowerBank is in direct contradiction of the youth empowerment agenda. Properly funded, a project undertaken by a youth may develop, over time into a giant business whose tentacles may spread into the region if not the world over. Entrepreneurship is known to drive economic growth, and supporting this venture through industrial and incubation hubs must be given serious attention as is the case with
STEM (Science, Technology, Engineering and Mathematics).
1.2.3 Vocational Training and Youth Services
Vocational Training Centres are meant to offer an alternative path to the labour market where one who cannot shoulder the demands of a fully fledged academic path may opt to acquire a skill which can sustain their economic being. To complement this, youth services seek to undertake youthful citizens’ orientation such that they become responsible citizens who will be assets to the nation. Zimbabwe can only go further as a nation if our youth can identify themselves with their roots such that they know that no one else will develop their country other than them. Successful attainment of orientation will likely sow seeds of altruism to the youth, thus fostering development as is the case with countries like South Korea and United States of America.
This programme consists of two sub-programmes, that is, Vocational Training and Youth Services. Some of the priority areas under this programme include:
- Vocational skills training for enterprise development.
- Youth orientation.
- Infrastructure Development and completion of ongoing PSIP projects.
- Modernisation of Vocational Training Centres (VTC).
- Curriculum development.
- Provision of start-up kits for graduates
Vocational Training and Youth Services received an allocation of $19,510,000 from a bid of $28,812,017, a variance of 32.3 percent. On the other hand, Youth Services was allocated $2,142,000 from a bid of $3,252,380, representing a variance of 34.1 percent. The following is a list of programme targets and compromise response to actual budget appropriation.
- Out of 9 VTCs that were supposed to be established, only 5 will be established.
- 30 centres out of 51 will be modernised and retooled.
- 10 PSIPs were partially funded out of a target of 15.
- 39 out of a targeted 58 centres will be able to maintain mobile equipment and infrastructure.
- 4 out of 10 mobile workshops will be acquired for ISOP programmes.
- 1,500 youths out of a target of 1,700 will be trained at NYS centres.
- 450 Youth Build Zimbabwe out of a 500 target.
- 5 youth training centres were set to be built and 3 renovated but none of this will take place.
While there seems to be some underfunding, more than 75 percent of individual targets will be achieved.
1.2.4 Sport and Recreation Promotion and Development
Sport and recreation play an important role in the development of a person as they promote social development, teamwork, coordination as well as strategy. In addition, these activities keep youths positively occupied resulting in a positive health dividend as opposed to unoccupied youths venturing into illicit substances and criminal activity.
Sport has been downplayed for a long time and yet it has the potential to significantly contribute to the economy. Studies have shown that globally vibrant sport has a positive contribution in the tourism sector
(hotels, restaurants, souvenirs); fitness and the media (fitness clubs and TV rights); and sports education (academies, sports scientist, sports health practitioners). In countries whose sports industry is thriving, sport is contributing an average of 2 percent to gross domestic product. For example, in South Africa sport is contributing approximately $4.5 billion to GDP. According to A. T. Kearney, the size of the global sports industry ranges from $480-$620 billion, this mainly from sports infrastructure development, licenced products, sporting goods and live sports events. Zimbabwe is far from tapping into this low hanging fruit.
The Sport and Recreation Promotion and Development Programme item has a mandate that includes the following;
- Construction and Resuscitation of Multipurpose Sport and
- Sport promotion (Community Sport, AUSC Games, Youth and
- Sport Development (Schools and Colleges).
- Recreation Activities (Recreational parks, Indigenous Games, Festivals, Commemorations).
From a bid of $70,910,526, Treasury only allocated $10,084,000, a variance of 85.78 percent. This allocation was deemed to be inadequate to meet the ministerial goals as there will be partial fulfillment of the objectives. Table 4 shows some of the coping mechanisms in light of funding constraints from Treasury.
Table 4: Implications of the Budget for Sports and Recreation
Promotion and Development
|Programme Targets as per bid||Revised Target in Line with Allocation|
|Set up Community Sport and Recreation Club Systems in all the 1,963 wards.||To be done as planned.
|Hold community sport and recreation festivals in all 73 districts.||63 out of 73 festivals will be held.|
|Training of trainer workshops in all the 1,963 wards.||Coverage in only 800 out of 1,963workshops.|
|Holding National Youth Games and Paralympic Games from||Partially funded from district to|
|ward to national level.||national competitions.|
|Holding Danhiko Sports Day, Independence Cup, Heroes Cup, Festival for Older Persons.||Funded.|
|AUSC Regional and International meetings||Funded.|
|Women in Sport Festivals in all 1,963 wards and 10 provinces.||Funded. All festivals to take place.|
|Funding of National Sports Teams, participating in All Africa Games, Implementing MOUs signed with respective countries.||Partial funding.|
|Installation of bucket seats in 4 stadia and ramps for persons with a disability.||Not funded.|
|Establish 10 multisport facilities (1 per province) plus construction of Tartan Track at the National Sports Academy hosted at BUSE||Funded.|
Table 4 shows that the goal of transforming sport from a past-time activity into a fully fledged full time occupation will remain a pipeline dream. While community based recreational facilities received $300,000 for the 1,963 wards, this translates to a meager $152 per wards. In addition, the $20 per ward allocated for talent identification via the sports-for-all initiative will make it difficult for Zimbabwe to unearth sporting greats such as Langton Tinago (boxing); Elliot Mujaji (athletics); Byron, Wayne and Cara Black (Tennis); Nick Price (Golf);
Kirsty Coventry (Swimming); Tatenda Taibu (Cricket).
Upgrading of sports facilities to meet international standards will increase the chance of hosting major tournaments as well as attracting lucrative sponsorship deals. The non-provision of funds to install bucket seats in four main stadia will negatively impact on football development in the country. Zimbabwe will be hosting the 2019 edition of men’s COSAFA Cup, not because of merit, but because of rotation! The availing of $2 million towards the development of a tartan track at the National Sports Academy (BUSE) comes as a welcome development. It is such initiatives that will kick start the process to one day have centres of excellence that could possibly unearth talents such as the great Usain Bolt. This is also augmented by the awarding of administrative rights of country clubs to the Sports and Recreation Commission. This move will ensure that these facilities are resuscitated such that the SRC can be able to spread sporting activities to the formally marginalised segments of our society.
As for recreational facilities in all provinces, $170,000 has been allocated which will be split equally between sport and recreation. This again was considered to be a very low allocation. A worrying development has been witnessed where land allocated for recreational facilities is now being converted for residential or commercial purposes. This is undesirable as youth are deprived of these facilities thus venturing into toxic and irresponsible practices. In addition, it was noted with concern the absence of sports facilities for people living with disability. This section of society must have their needs catered for as there is great potential to unearth talent for participation at paralympic games. In addition, their social needs are also catered for by provision of such sporting facilities.
1.2.5 Arts and Culture Promotion and Development
Under this programme, some of the key performance indicators include:
- Community Arts and Culture Programmes National Arts and Culture Festivals and Exhibitions
- Revitalising Community Arts and Culture Club Systems.
- State Occasions (National Heroes Burial and Heroes Commemorations).
Treasury was able to allocate $4.832 million from a bid of
$13,689,864, representing a variance of 64.77 percent. This allocation was considered to be inadequate for the Ministry to be able to fully achieve their set objectives under this programme item. Under this programme item, the Ministry will be able to meet part of some of the objectives and in other cases, it will completely fail. Table 5 summarises the implications of the allocation against set targets.
Table 5: Implications of the Budget for Arts and Culture Promotion and Development
|Programme Target as per Bid||Revised Target in Line with Budgetary Allocation|
|Indigenous Language Policy||Not funded|
|Revitalising 730 community arts and culture clubs at 10 per district||Half the target (365) to be achieved at 5 community arts and culture clubs per district.|
|Hosting 2 Arts and Culture Festivals and 1 exhibition per district||To be done as planned|
|Strengthening antipiracy mechanisms in each of the 10 provincial capitals||Only 5 campaigns will be done in Harare, Bulawayo, Gweru, Mutare and Masvingo.|
|Acquiring equipment for development and promotion of talent identification and nurturing.||Not funded.|
|Refurbishment of 10 Creative Cultural Industry Spaces (1||Only 2 out of 10 will be refurbished|
|per province)||(Murehwa and Chitungwiza)|
|Establishment of 6 Creative Cultural Centres (Beitbridge, Binga, Bulawayo, Chipinge, Gweru and Masvingo||Only 2 out of 6 will e established (Binga and Kanyemba)|
|Acquisition of 200 personal computers (PCs) for creative Cultural Centres||40 PCs to be acquired - Chitungwiza (20) and Murehwa (20).|
|Acquisition of two stages and backline; 500kva generator; sound equipment; lighting equipment; and mixer for promotion of talent and nurturing.||Not funded.|
The underfunding of Arts and Culture would mean that the Ministry would not be able to meet half of its set objectives under this programme item. Since no funds were availed for acquisition of a public address system and a corresponding stage, the Ministry will have to meet their need via hiring. The cumulative cost of hiring such equipment might be enough to actually purchase such important equipment, which equipment might be hired out to augment income. In addition, the Indigenous Language Policy which was not funded, was aimed at promoting local languages such that Zimbabweans embrace cultural diversity that uniting the people. For as long as other languages are perceived to be less important, speakers of those languages will remain marginalised. Amendments of the National Arts Council of Zimbabwe Act and the National Gallery of Zimbabwe Act as well as respective Statutory Instruments will be done.
2.0 CHALLENGES AND OBSERVATIONS
- The Committee noted with grave concern the gross underfunding to the Ministry in light of the critical importance it carries towards the current and future development of the country.
- The Committee also noted with concern lack of protective legislation within the Ministry relation to governance of bodies affiliated to it.
- It was noted that land meant for recreational facilities was being converted to residential and commercial use.
- The Committee noted absence of funding models in the Sports and Recreation Commission which can lessen funding burden on
- The hiring cost for the PA system and associated accessories was seen to be a worrisome state of affairs.
- The Committee noted with concern that the Copyrights Act was being administered from the Ministry of Justice and not the
Ministry of Youth, Sport, Arts and Recreation.
- The proposed Language Policy was seen to be very important in nation building, embracing of cultural diversity and above all,
- The Committee noted that the 3 percent tax on all Sports Betting
Houses meant for Sports Development, approved in the 2018
Budget, had not been remitted. In addition, State Lotteries and Gaming Act (Section 43), provides for remittance of funds meant for Sports Development and this has not been done.
- There was no clarity in the budget on money allocated for the Empower Bank but is currently housed with the Ministry of
- The Committee questioned the feasibility of the continued existence of the Empower Bank in light of high operational costs.
- There has been a decline in corporate sponsorship for Sport, Arts and Culture activities.
After careful consideration on submissions by the Ministry of Youth, Sport, Arts and Recreation, the Committee recommends the following;
- That funding to the Ministry must be increased.
- That protective legislation within the Ministry must be put in place for easier governance and operations of bodies affiliated to it.
- All land seizures from recreational facilities to residential and commercial use must stop.
- That funding models be put in place in the Sports and Recreation Commission.
- That cost benefit analysis should be done between hiring PA system and associated accessories and acquiring the equipment.
- That the Copyrights Act must be administered from the Ministry of
Youth, Sport, Arts and Recreation.
- That funding towards the Language Policy should be reconsidered.
- That the 3 percent tax on all Sports Betting Houses meant for Sports Development, approved in the 2018 Budget; and the 5 percent tax from State Lotteries and Gaming meant for Sports Development be remitted without fail.
- There should be provision of sporting facilities for persons living with disabilities.
- Funding of national teams by other entities must be done through Treasury for accountability purposes.
- Corporate that sponsor Sport, Arts and Recreation activities must receive incentives such as tax rebates so that they continue to support the development of those activities.
HON. MPARIWA: Thank you Mr. Speaker. I am going to
present the report of the Public Accounts Committee on the budget analysis of the Auditor General’s Office, Vote No. 6, and allocation as
per 2019 Budget presented by the Minister of Finance.
The Auditor-General is constitutionally mandated 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. The audit scope ranges from value for money audits, forensic audits, regularity audits on
Appropriation Accounts, State Owned Enterprises & Parastatals, and Local Authorities. With such a huge scope, the Office should be adequately staffed and have adequate machinery and equipment such as vehicles and computers.
The Public Accounts Committee relies heavily on reports compiled by the Auditor-General, hence the need for the institution to be adequately funded. The risk based approach to audit exposes irregularities in the management of public resources and serves as a basis on which Parliament can effectively execute its oversight function. This augurs well with the nation’s thrust for transparency and accountability provided for in the country’s supreme law.
Budget Performance in 2018
The Auditor General’s Office was allocated $5,058,000 in the 2018 Budget. Of this amount, Treasury releases as at September 2018 amounted to $2.4 million and is expected to reach $3.2 million by the end of the year. Failure by Treasury to release the allocated amount resulted in the Auditor-General’s Office visiting only 317 of the 3 320 stations in 2018. The Auditor General submitted to the Committee that her office had been constrained to conduct audit tours for local authorities whose coverage was a mere 3% and for Parastatals at 50%, percentages that are not satisfactory. This therefore calls for serious consideration of the Auditor General’s budget in this 2019 financial year. Notwithstanding the inadequate funds received, the Committee commends the Office for compiling and presenting reports within the statutory requirements.
The Committee was also informed that renovations anticipated at Burroughs House had not been carried out resulting in poor office accommodation for officers. The other challenges faced by the Audit Office will be highlighted below as requirements for budget allocations in 2019.
2019 Budget Bid and Allocation
|Expenditure Item||Budget Bid
2019 (424 staff)
|Justification of Bid|
|Employment cost||$7,037,000||$2,693,000||• Retain qualified staff
• Recruitment of VFM audit staff
|Acquisition of fixed Assets||$1,527,000||$1,070,000||• Strengthen independence of the
• Large audit coverage
The Audit Office submitted a bid of $17 964 000 to Treasury for the 2019 financial year. Treasury allocated $7 763 000 which translates to 43% of the requested amount. The bid was based on the ideal budget supported by staff complement of 704. The increased number of staff is consistent with the expanded mandate of the Office which now includes auditing of the local authorities. Given the number of local authorities which have to be audited, over and above Central Government and
Parastatals’ accounts, the Committee supports the request for Treasury to give concurrence for the recruitment of additional staff. Additional staff would also enable the Auditor General to dedicate some officers Value for Money (VFM) audits. Currently, there is no staff dedicated to conduct VFM audits.
The Committee observes that it may not be possible to meet the ideal head count of 704 in 2019. As an alternative to meeting this requirement, Treasury should consider recruitment of staff for the Audit Office over a three-year period extending to the year 2021. It is the
Committee’s considered view that Treasury should at least allow the Audit Office to meet the current establishment of 374 by filling in 61 vacant posts. In addition to that, Treasury should authorize and avail funds for another additional staff complement of 50 members who would be earmarked for the Value for Money audits. Value for money audits are critical in assessing the economy’s, efficiency and effectiveness in the utilization of resources allocated to public sector entities.
The Committee noted with greater concern that since the Audit Office Act became effective in 2011, a Board provided for in the Act has not been operationalized. This is not an ideal situation given the important role of any Board in giving policy direction among other oversight functions.
The Committee learnt that since 2011 when the Office attained the Parastatals status, the conditions of service have remained as they were when staff was under the Civil Service. As a result, the Office has lost staff in which a lot of investment had been done in training them. Staff retention has been a challenge due to very low remuneration packages. The Committee proposes that Treasury redoubles the remuneration package for a start then gradually moves towards the level of other
Acquisition of fixed Capital Assets
Another area of concern to the Committee is the acquisition of vehicles required to undertake field tours. The Committee was informed that the current fleet is old and maintenance costs are high such that purchasing new vehicles is in fact a better option. The Audit Office was allocated $ 1 070 000 against its bid of $ 3 053 000. This implies that the Office will not be able to replace the old fleet during the 2019 financial year, thus negatively affecting the work of the Office. The Committee recommends that in the interim, an allocation of $1,527,000 towards acquisition of vehicles be made which is adequate to cater for staff establishment of the proposed 424.
Given the above-mentioned needs by the audit Office, the Committee recommends the following:
That Treasury allocates $17 964 000 to the Auditor
General’s Office as requested;
That Treasury gives concurrence to the recruitment of additional staff to enable the Office to reasonably cover audits for local authorities and to dedicate staff for VFM audits;
That the Board of Directors be appointed in the first quarter of
2019 and be facilitated to become operational; and
That Treasury releases allocated funds timeously to enable the
Office to perform its duties.
Transparency and accountability enhance the integrity of public governance by safeguarding Government against corruption, abuse of power and other forms of inappropriate behaviour. This in turn results in the economic, efficient and effective use of public resources. This also builds public confidence in the Government. To achieve this end, the Audit Office needs to be capacitated with adequate human, financial and material resources. With the right audit information provided timely, Parliament through the Public Accounts Committee will be able to perform its oversight function of examining the sums granted by Parliament to meet the public expenditure and such other accounts laid before Parliament.
1.0 HON. CHIKUKWA: Introduction
The mandate of the Ministry of Local Government, Public works and National Housing 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, well-maintained government infrastructure. In order to achieve this, there should be an alignment between government priorities, the national and international development plan and government policies. The trend since 2013 shows that there has been violation of constitutional obligations with regards to the Ministry vote and the Council of Chiefs vote, as the two must be treated separately. The Ministry has been underfunded as reflected by variances between the allocations and the actual disbursements in 2016 and 2017. Given that the Ministry plays a pivotal role in the achievement of Vision 2030, the 2019 Infrastructure Investment Plan and Sustainable Development Goals (SDGs), there is need for sufficient funding which allow fulfillment of its mandate.
2.0 The Ministry Operations and Challenges
The Ministry operations revolve around 5 key result areas, that is, sound local governance; water, sewerage and sanitation; development and maintenance of the built environment, national housing delivery and devolution. The Ministry’s key achievements in 2018 amongst others include completion of two blocks of flats in Tafara with 30 units, implementation of programme based budgeting in 92 local authorities and demarcation of 16 rural service centres to facilitate issuance of title deeds. Going into 2019, spatial planning, local governance, national housing delivery, disaster risk management and construction, maintenance and management of public buildings continue to be the core of Ministry operations. However, this is coming against a background of the Ministry’s ever increasing debt; fluctuating prices which negatively impact tenders and completion of projects; non-release of funds by Treasury and revenue generation barriers as occupants of government houses fail to meet obligations due to low income.
Budget Allocations for 2018 and 2019
The 2019 budget provision for the Ministry is $490 million which is
297% increase from the 2018 budget allocation of $132 million.
However, this figure falls way below the Ministry’s bid which was upward of $1 billion. Furthermore, 63% of the $490 million comprises an allocation earmarked for devolution; leaving $180 million for other operations. The budget is linked to the Vision 2030, which is described as an “inclusive and collectively shared long-term national vision. However, except for education, the budget falls short of the international social development benchmarks. For instance, a budget allocation for agriculture is about 8 percent of the total budget against a developmental benchmark of 10 percent and healthcare allocation is below the 15 percent target. The following pie chart shows clearly the Ministry is underfunded as the public sector is not even amongst the top four national priorities based on the budget allocations:
The Ministry falls within the other category which constitutes 8% of the national budget whilst 92% of the national budget is allocated amongst agriculture, social sector, economic development and defence, home affairs and OPC. Hence, this will negatively impact on service delivery and compromise the Ministry’s functions.
3.0 Budget Analysis Meeting Observations
On the 27th of November 2018, your Committee held a meeting with Ministry officials and the following observations were made:
3.1 Your Committee observed that the budget allocation to the Ministry for 2019, even though there is an increment, is not sufficient enough to allow the Ministry to carry its mandate to accepted standard.
3.2 It was also noted that regularisation is a matter of urgent attention and the process should be authorised by the
Ministry as well as spearheaded by the local authorities. The officials however highlighted that regularisation entails a global responsibility and calls for all effort across varying stakeholders as addressing regularisation issues require an inclusive institutional set up.
3.3 Concerns were also raised on the planning of the Ministry regarding consultation of key stakeholders, specifically the council of chiefs, and presentation of matters as the terms used mislead the parliament/government and there is need
to address that. For instance, the budget speaks to appointment of chiefs instead of appointment of traditional leaders which is inclusive.
3.4 Your Committee also noted that the Ministry in cases of disaster management is at times bearing the burden of other line ministries and there is urgent need to make sure that each Ministry takes responsibility accordingly. The officials highlighted that the Government is under process of synchronisation of ministries.
3.5 Your Committee observed with great concern the omission of village heads and headman from the allocation for appointment of traditional leaders as it only speaks to chiefs’ appointment. Also questions were raised to the officials regarding the appointment of village heads and headsmen, whether it has been suspended or not? The
Ministry clearly expressed that appointed of village heads
and headsmen is on and should follow the Constitution and Traditional Leaders Act provisions.
3.6 The officials were asked to explain where the funding for the appointment of traditional leaders is. Related to this, great concern was raised regarding the remuneration of traditional leaders as their salaries are far beyond reflecting the economic changes. The officials highlighted that remuneration of traditional leaders is an issue under consideration.
3.7 The officials were asked question on handing over of settlements to local authorities as there is continuous denial of basic services and marginalisation of such locations. They responded that each settlement area must have a civic centre and this has been planned and in process of activation.
3.8 Your Committee also observed that the Civil Protection has been underfunded and almost ignored in the past to an extent of relying in some cases to interested parties/ stakeholders. However for 2019, the budget allocation is not enough but is welcome to hit the ground running going forward.
3.9 It was noted that the budget does not have the voice for the chiefs. Hence, as provided by the Constitution, there must be a separate vote for the Ministry and the Traditional Leaders Council. The Constitution since 2013, provides for a secretariat to administer Council of Chiefs but the budget does not speak to that. Your Committee explicitly expressed that there are no vehicles for the Ministry but for the Council of Chiefs’ secretariat and there is need for the budget to capacitate the operationalisation of the Council of Chiefs.
3.10 Your Committee also asked the officials concerning relationship between special planning and UDCORP, subscriptions, retaining of revenue for stadia and professional services. They outlined that UDCORP play a technical role to the Government. On subscriptions, the officials highlighted that they have approached the Treasury and the RBZ so that the Ministry will not fall back with international institutions.
5.0 Summary of Recommendations Your Committee recommends that:
5.1 The Government must revise the budgetary allocations to meet the developmental benchmarks as provided by the Constitution such as the 5% allocation to local authorities in accordance with Section 301:3.
5.2 The council of chiefs vote should receive separate estimates of revenue and expenditure as provided for in Section
305:3(d) of the Constitution.
5.3 The Government should promote interaction of ministries as this helps in addressing critical issues such as disaster management.
5.4 The Ministry should urgently review salaries of traditional leaders in consultation with the Council of Chiefs.
5.5 Ministry should continue hand over settlements to local authorities.
5.6 The Ministry should write a letter to the Treasury (Ministry of Finance) highlighting the technical challenges which affected the budget allocations to the Council of Chiefs.
5.7 The Government must align the budget to the Constitution regarding functionality of the Council of Chiefs.
5.8 There is need to settle the Ministry’s outstanding debt and improve revenue generation.
5.9 The Government must exercise tight price controls for the Ministry to sustain the budget and carry out its mandate successfully.
5.10 There is need to embrace PPPs and other forms of development financing in the face of Ministry budget shortfalls.
Your Committee remains seized with the continued trend of variances between allocations and actual disbursement to the Ministry as well as the violation of Section 305:3 (d) in regards with council of chief’s vote. As such, the Ministry of Finance should make the allocations in compliance with the Constitution. Furthermore, the alignment of budget to the Constitution needs to be expedited. However, the Ministry needs to hand-over settlements to local authorities and develop innovative ways to bridge the gap between budget allocations and the Ministry’s bid.
HON. GARWE: Mr. Speaker Sir, I rise to submit the report on the Transport and Infrastructural Development Committee.
The objective of the Ministry of Transport and Infrastructural Development is to facilitate, provide and manage transport infrastructure networks, logistics and services efficiently for transport users.
Zimbabwe’s 2019 infrastructure investment plan places infrastructure development at the heart of achieving the objectives under the
Transitional Stabilisation Programme (TSP). Pursuant to being a middleincome country by 2030, the Ministry of Transport and Infrastructural Development should play a critical role by providing modern, affordable and reliable infrastructure which is useful for ease of doing business.
The Ministry bided for $361.470 million and the Treasury allocated $437.159 million, which is about 21% more than what they requested for.
The Portfolio Committee on Transport and Infrastructural
Development, after the 2019 budget presentation by the Minister of
Finance, engaged the Ministry of Transport and Infrastructural Development in order to hear their views. The Committee sat to deliberate on the views received and came up with its own analysis of the 2019 budget after an intensive cross-examination of vote 11 of the Ministry of Transport and Infrastructural Development.
Overview of the National Budget
Overall national budget (Consolidated Revenue Fund) is expected to change from US$7 billion in 2018 to US$10.3 billion in 2019, representing an increase of about 47%. The growth in budget was necessitated by the rebasing of Gross Domestic Product (GDP) from the previous 2009 base year to a new base year, 2012. Rebasing improves revenue generation capacity of the country. Of the total 2019 budget (Consolidated Revenue Fund), over 50% of the budget ($5.7 billion) will go towards recurrent expenditure while capital expenditure will constitute only 18%, which is still very low. Employment costs contribute the largest share of recurrent expenditure (over 49% of recurrent expenditure).
Transport and Infrastructural Development
The budget allocation for the Ministry of Transport and Infrastructural Development (Vote 11: Consolidated Revenue Fund) increased significantly from US$87.5 million in 2018 to US$399.182 million in 2019, representing an increase of 356%. The total allocation to the Ministry or its budget share has significantly increased by 300% from 1.3% in 2018 to 3.9% of the total budget in 2019.
The share of capital expenditure in the Ministry’s allocation increased by 10% from 86.5% in 2018 to 96.5% in 2019. Employment costs are expected to increase from $8.701 million in 2018 to $9.652 in 2019. The increase in employment costs is more pronounced in road infrastructure development where the demand for casual labour is likely to increase.
The Ministry’s major achievements in 2018 are listed in box 1 below.
Box 1: Major Achievements of the Ministry in 2018
- Completed temporary office complex, inspection workshop, civil works and hill start at VID Rusape.
- Completed temporary office complex, weighbridges and inspection workshop, civil works on access roads and holding bays at VID Beitbridge.
- Installed Electronic Passenger Personal Insurance Cover note on the computerised platform.
- Integrated CVR and ZINARA vehicle registration data.
- Completed construction of hill start at VID Belvedere.
The Ministry of Transport and Infrastructural Development prioritises the following policies for 2019: o Road infrastructure and transportation
- Transport infrastructure development o Integrating governance and risk control o Enhancing revenue generation, efficiency and productivity.
Road dualisation, rehabilitation and upgrading has been prioritised and $372.919 million has been allocated for this in the 2019 budget.
The Beitbridge-Chirundu highway has remained a major concern to the
Government. Some prioritised parastatals and departments in the
Ministry include VID & CVR, CAAZ, NHS, NRZ, CMED and Air
Zimbabwe. NRZ, ZINARA and CAAZ will go under restructuring while National handling Services and RMS are to be considered under partial privatisation, joint ventures, partnerships or listings.
The Ministry’s four programmes are budgeted as follows in 2019:
Table 1: Ministry’s Budget Allocation by Programme
|Programme||Consolidated Revenue Fund ($m)|
|Policy and administration||19.752|
|Road infrastructure and transportation||372.919|
|Rail & Aviation Infrastructure Development||10.154|
A detailed description of Fiscal Road Development Programme and Road Fund Projects is presented in Annexures I and II of the 2019 Infrastructure Investment Plan. The Ministry reported that in addition to road infrastructure development, the 2019 National Budget has allocated funds for:
- Construction of inspection workshops in Bindura, Chitungwiza and
Harare and transport management Centre complex in Harare; o Lake navigation (construction of control tower, staff accommodation and offices, control vessel and weather station at
Tokwe Mukorsi, Binga and Victoria Falls); o Construction of a control tower at J. M. Nkomo Airport and expansion of R. G. M Airport; and o NRZ and Air Zimbabwe rehabilitation through IATA clearing house rejoining fees.
The Ministry of Transport and Infrastructural development indicated that the 2019 National Budget allocation is sufficient for the
Ministry’s proposed 2019 activities. However, the officials pointed out that it is important to note that budget resources are transferred to the Ministry in the form of RTGS. Hence, it is important to understand the budget’s limitation in servicing external debt in the absence of adequate foreign currency.
Submissions from the Ministry officials indicated that a potential partner in rail infrastructure willing to invest US$400 million was identified and negotiations are under way. The Ministry is currently doing due diligence in evaluating the potential contract with the partner. Air Zimbabwe debt has continued to haunt the parastatal. Although the Government will take over Air Zimbabwe debt, the Ministry indicated that this will be just in principle since the Government requested the Ministry to provide a full plan to roll out the entity in order to avoid similar problems in the future.
Despite having funding resources, the establishment of a dry port
in Namibia has been hampered by lack of foreign currency to pay for services provided by foreign contractors. In addition to lack of foreign currency to fund foreign services, the Ministry indicated that employment freeze is negatively affecting its desire to achieve its targets. For instance, it was reported that the establishment of more inland waters navigation towers is hindered by understaffed departments in the Ministry.
The Ministry officials reported that most of the parastatals under their Ministry were not considered for privatisation, mergers or partnerships because of strategic and technical reasons. However, Air Zimbabwe is considered under privatisation in the 2019 Infrastructure Development Plan.
The Portfolio Committee on Transport and Infrastructural
Development observed that the Ministry of Transport and Infrastructural Development generates significant Government revenue and hence the approved expenditure target for the Ministry was satisfactory. However, one observation was that although budget figures are in United States dollars, budget resources have been mostly transferred to ministries in the form of RTGS, making it difficult for the Ministry to fund projects that require external services or foreign currency.
The Committee noted that many roads and bridges in the country are in a poor state. Therefore, despite a limited fiscal space, there is need for the Ministry to intervene in all constituencies. The Committee observed the need for a balanced development where local people are allowed to determine what gets built as clearly articulated in the 2019 Infrastructure Investment Plan.
The Committee is concerned about the subdued response to development of the Beitbridge-Chirundu highway and the rise in accident-related death. It was observed that previous proposals by Committee towards reducing road carnage such as establishing rehabilitation centres for victims of road accidents using a portion of the third party insurance have not been fruitful due to lack of convergence amongst stakeholders. Furthermore, there has been no progress in mounting speed monitoring cameras along highways.
The Committee observed that computerisation of VID and CVR has continued to receive less attention from the budget.
The Portfolio Committee on Transport and Infrastructural development applauded the Government for setting aside resources to construct a control tower and staff accommodation and offices at Tokwe-Mukorsi. However, the Committee recognises several inland waters requiring similar services such as Lake Chivero, Darwendale and other in land dams. In this regard, the Committee found it prudent for the Government to exempt the Ministry from an employment freeze in order to effectively provide the required services for inland waters.
One of the observations from the Committee was that very few parastatals and departments under the Ministry of Transport and
Infrastructural development were included under parastatal reforms. These are NRZ, ZINARA and CAAZ which will undergo restructuring while National Handling Services and RMS will be under privatisation, partnerships or mergers. The Committee noted that some parastatals such as Air Zimbabwe and NRZ require urgent attention from the budget. Rehabilitation of these parastatals must be prioritised.
The Committee noted the importance of implementation. The Committee observed that similar previously proposed solutions have not been utilised due to lack of implementation in the previous budgets. In addition to this, the Committee observed that there are no clear performance indicators for some of the Ministry of Transport and
Infrastructural Development’s programmes, for example roads infrastructure development and transportation. Clearly defined performance indicators assist Parliamentary Portfolio Committees to effectively monitor and evaluate performance of national budgets.
In this view, the Committee suggested recommendations based on how best can the approved resources be used by the Ministry.
- The Committee recommends the Ministry of Transport and
Infrastructural Development to prioritise road infrastructure development in order to reduce road carnage and improve Government revenue. The following are the specific recommendations to the Ministry:
- Development of the Beitbridge-Chirundu highway must be
prioritised; o While welcoming local resource mobilisation strategy for the development of the road, the Committee recommends the
Government to effectively supervise the project; o The Committee recommends a speed installation of sophisticated technological equipment along highways to monitor crimes committed by motorists; o The Committee recommends ring-fencing of remittances to Traffic Safety Council and insurance levies for all transport-related insurances. These resources should be used for traffic awareness (education) campaigns and fencing along all highways to reduce road carnages; o The Committee recommends an increase in road access fees paid by foreign motorists and a reduction of the said fees paid by
returning residents; o In view of increased permanent injuries resulting from fatal road accidents, the Committee recommends duty-free importation of all equipment used by disabled persons; o The transport system in Zimbabwe cannot continue to be dominated by combis and mushikashikas which have a significant contribution to road carnages. The Committee therefore recommends a reduction of duty for all buses from 45% to 5%. The Committee further recommends that imported second hand vehicles must not exceed 10 years; o Billboards are erected to attract the attention of motorists. Therefore, the Committee recommends that a share of revenue from billboards be directed towards road rehabilitation; o As part of their corporate social responsibility, mining houses must contribute towards the construction/rehabilitation of roads network around their places of operation; and also recommends that a portion of the third party insurance and all other road insurances be ring-fenced for the construction of accident victims’ rehabilitation centres.
- In relation to parastatals under the Ministry of Transport and
Infrastructural Development, the Committee recommends the following:
- the Committee recommends a vigorous pursuance of privatisation of Air Zimbabwe as recommended by Cabinet during the 8th
Parliament; o The Committee recommends an immediate liquidation of Air
Zimbabwe debt with IATA which is US$4.2 million; o The Committee recommends an immediate implementation of the refurbishment of RG Mugabe airport and this should include air control systems and the runway network; o The Committee recommends that NHS improve its efficiency to improve its revenue generation which also beneficial to Air
Zimbabwe; o The Committee proposes that the Government promulgates a
Statutory Instrument which empowers NRZ to be the sole
transporter of chrome ore (about 15 million tonnes) and other mineral ores to neighbouring countries. This innovation will improve revenue generation for NRZ which could be used to settle the parastatal’s debts; and o The Committee understands that NRZ has mineral claims in South Africa. The Committee recommends that NRZ through the respective ministries pursues the effective operationalisation of the mines. RMS is a perennial loss maker and a burden to NRZ. Hence, the Committee recommends that either NRZ looks for partners to turn the fortunes of RMS or close it completely.
- In terms of corporate governance, the Committee recommends the following:
- Rationalisation of similar services provided by Ministry departments and parastatals causing duplication of duties, for example, ZINARA and VID where one is responsible for invoicing and the other for collection; and
- The Committee recommends an immediate integration and computerisation of all transport management systems in the Ministry and parastatals in order to improve revenue generation and collection. A well-coordinated transport management network will also reduce corruption.
- In line with devolution and the 2019 Infrastructure Investment Plan, the Committee recommends the Ministry to embrace community ownership of every infrastructure project to be implemented in 2019. Communities need to be involved in these projects so that they take ownership and feel proud to drive the projects to success. For instance, when developing a road or constructing a bridge, communities must take a leading role in prioritising the road or bridge to be constructed first. General labourers and suppliers of ancillary services can be recruited from the community where the project is implemented. In other words, labour-based construction projects should be resuscitated for low-volume traffic roads.
- In terms of gender participation, the Committee recommends
that the Ministry implements the proposed projects with gender equality in mind.
- Providing safety to citizens is crucial. In this view, the Committee recommends an immediate construction of control towers in all large inland waters and the Ministry should employ staff with critical skills needed for the construction of control towers.
- In addition to budgetary resources provided for, the Committee recommends that Government considers engaging private sector through Engineering Procurement Construction (EPC) and Build Operate Transfer (BOT) for large projects such as airports, trunk roads and NRZ. The Committee further recommends that the Diaspora Infrastructure Development Group and Transnet Consortium must be rigorously pursued to rehabilitate, upgrade rolling sock, signaling, tracking and ICT systems in NRZ.
- Finally, the Committee recommends that the Ministry generates clearly defined performance indicators during the implementation stage of all its projects and activities. Performance indicators will assist the Committee to execute its oversight role through monitoring and evaluation of the said milestones.
HON. GABUZZA: Thank you Mr. Speaker Sir. I am going to present a report or the Portfolio Committee of Energy and Power
The Portfolio Committee of Energy and Power Development has an oversight responsibility over the Ministry of Energy and Power Development. The Ministry of Energy and Power Development is mandated to provide adequate and sustainable energy supply through formulating and implementing effective policies and regulatory frameworks. Post budget consultations conducted with the Ministry and its stakeholders showed that there was an increase in 2019 budget allocations to the Ministry of Energy and Power Development from the 2018 allocation.
1.1 Key Priority areas for the Ministry of Energy and Power
Development in 2019
Zimbabwe Government’s long term goal is to transform the country into an Upper Middle Income Society by 2030 (Vision 2030). This goal will be achieved through the implementation of the Transitional Stabilization Programme (TSP). Energy sector has been identified as one of key enabler of achieving the goals set in the TSP and Vision 2030 and therefore the Ministry of Energy and Power Development plays a critical role in this development. The Ministry’s priorities over the period 2019 to 2021 all contribute to this. These priorities begin with balancing the Ministry budget, to control spending and to support the overall government budget. Some of the key priority areas for the Ministry of Energy and Power Development for 2019 as enshrined in TSP include the following:
- Expansion of Hwange Power Station;
- Rehabilitation of Kariba dam wall;
- Development of Deka Water Plumbing Station and Pipeline;
- Repowering of Bulawayo Thermal Power Station; and
- Development of Batoka Hydro Power Scheme;
The 2019 Budget largely mirrors the priorities outlined in the Transitional Stabilisation Programme, particularly through the expenditures proposed towards power generation projects which consume the bulk of the expenditure under the energy sector. The budget is also reflective of the TSS in that the TSS outlines renewable energy (in the form of solar energy) as a priority but proposed the mobilisation of only $50 million which is targeted at rural communities and small rural businesses. In the same vein the 2019 budget indicates that the government will embark on projects for the development of solar mini grid systems in the country, at a cost of US$3.1 million.
1.2 Selected key budget measures with potential to affect the energy sector
- The fuel market is “distorted” and the country’s fuel has become relatively cheaper compared to prices obtaining in the region,
“creating an arbitrage opportunity for local consumers and transiting vehicles.”
- With effect from December 1, excise duty goes up by 7 cents per litre on diesel and paraffin and 6.5 cents on petrol.
- Power availability from existing power stations, currently ranges between 1000MW to 1600MW, against demand of 2 200MW,
necessitating power imports to cover the deficit.
- Zimbabwe’s installed generation capacity now stands at 2260MW, following the completion and commissioning of the Kariba South Expansion Project this year, which added 300MW to the national grid.
- During 2019, an amount of US$350 million will be disbursed under the China EXIM Bank loan towards the Hwange 7 and 8 Expansion Project loan, to be invested towards ongoing civil works and manufacture of electro-mechanical equipment for the project, among others. Government is expected to inject $88 million whilst Sino
Hydro will also inject $88 million.
- The Budget provision of US$1 million will support construction of 15 biogas digesters at a cost of US$0.4 million, whilst US$0.6 million will fund feasibility studies for Small Hydro Power Plants.
- Government will commence the roll out of solar mini grid systems in the country, at a cost of US$3.1 million.
1.3 Ministry of Energy and Power Development 2018 Budget Performance
While the Ministry may clamour for bigger allocations from Treasury, experience over the years has shown that Treasury does not have the capacity to meet such huge requests. Unlike in previous years,
Ministry of Energy and Power Development’s disbursements from
Treasury in 2018 exceeded the Ministry’s total budget allocation for the year. This was a result of additional money transferred to ZESA for equity participation. However, for the rest of other expenditure items, the Ministry’s actual expenditure was lower that the target expenditure for the year, implying that Treasury did not release all the funds as allocated in the 2018 budget. Figure 3 shows a comparison between approved budget allocations against budget releases from 2016 to 2018.
Figure 1: Comparison of Ministry of Energy and Power
Development’s budget allocations against budget releases (2016 to
- Analysis for the Ministry of Energy and Power
Development 2019 Budget
2.1. Overview of Ministry’s 2019 budget allocation The Ministry of Energy and Power Development was given an expenditure target of US$16.011 million from the Consolidated Revenue Fund. Although the amount allocated represents a 20.18% increase from the 2018 nominal allocation of US$13.323, it remains low for a sector that has been identified as a key economic driver under the Transitional Stabilisation Programme (TSP). In addition, if the price changes are taken into account, the 2019 allocation represents a decrease in allocation.
2.1.1. Economic classification of the budget
Of the total allocation of US$16.011million, 78% (US$12.45 million) is for capital expenditure, 13% (US$2.079 million) is for current transfers and 9% (US$1.482 million) will go towards funding current expenditures for the Ministry. The current expenditure allocation will cover employment costs (56%), goods and services (25%), maintenance (10%) and programmes (9%) whilst capital expenditure allocation will finance the acquisition of fixed capital assets and equity and lending to
ZESA. Figure 2 shows the Ministry’s economic classification of the budget.
Figure 2: Ministry of Energy and Power Development 2019 Budget allocation
2.2. Implications of the 2019 Budget for the Ministry of
Energy and Power Development and the Energy Sector in
The Committee noted that although the Ministry’s budget allocation in nominal terms for 2019 is higher than its allocation in 2018. The price changes that have taken place in light of exchange rate distortions will negatively impact on the Ministry’s activities in 2019. The following are some of the implications of the 2019 budget allocation to the Ministry’s operations.
- Maintenance- The Ministry was allocated US$152 000 against a bid of US$212 000. The inadequate budget allocation for this expenditure item will greatly affect the Ministry’s operations such as supervision, monitoring and evaluation of projects under the ministry’s purview as the ministry. The situation will be worsened by the ageing fleet of vehicles which now require frequent repair and maintenance.
- Current transfers: The Ministry was allocated US$72 000 against a bid of US$136 200. The amount allocated for current transfers is inadequate considering that the Ministry has subscriptions arrears of $45 000 for 2018 to International Atomic Energy Agency (IAEA).
Zimbabwe is also a member to the African Regional Cooperative
Agreement for Research , Development and Training Related to Nuclear Science and Technology (AFRA) where its 2016 subscriptions are also in arrears of US$7 200. Furthermore,
Zimbabwe has also membership to The International Renewable Energy Agency (ARENA) where subscriptions of US$2 000 will be needed in 2019. The inadequate allocation will therefore entail that the debt obligations will remain outstanding and the country will likely lose some of the benefits from its membership in these international organisations.
- Acquisition of fixed assets - The Ministry was allocated US$100 000 for the acquisition of fixed assets. If this amount is released in full, it will go a long way in ensuring that the Ministry replaces old and broken office furniture. However the Ministry’s old and unreliable vehicles have not been taken into account. No funds have been allocated for new operational vehicles. The Ministry last got new vehicles in 2004 and currently relies on 3 cars donated by UNDP and another small car donated by ZIMRA. This will negatively affect the operations of the Ministry especially in the Provinces.
- Capital Transfers: Treasury allocated US$1.350 million towards
Ministry’s capital transfers to the Rural Electrification Agency (REA) and Finealt Engineering. Of the $1 million allocated to REA, $400 000 will be for funding the institutional bio digesters, US$500 000 will go towards funding Small Hydro Power Plants Feasibility Studies and the balance of $100 000 will fund solar micro grid project which will also be financed REA internal resources. Finealt Engineering will get $300 000 which is meant for Nyakadecha
Jatropha Plantation project.
- Lending and equity: - The Ministry was allocated US$11 million for equity and lending to ZESA against a requirement of US$80 million. The $80 million was meant for financing Hwange 7 and 8 expansion projects. If Treasury had availed this amount it would have reduced the debt burden to ZESA as it would reduce funding from loans which attracts interest. In addition, the following ZESA requests were not provided for in the 2019 budget:
o Procurement and installation of transformers - $7.77 million o Procurement and installation of Remote Terminal Units
(RTUs)- $500 000 o Gweru –Beitbridge Fibre Project (Powertel)- $2.3 million
- Renewable Energy programmes- Estimated expenditure on programmes that promote renewable energy however remain unchanged and subdued. Under the Programmes Budget Line, Biogas technology and Small hydropower development were allocated $10,000 each in 2018 and the same amount in 2019. Whilst there is an overall increase of 92.8% in the total allocation under programmes there is need to pay more attention to the programmes targeting promotion of renewable energy.
The Committee on Energy and Power Development is of the view that the 2019 National Budget should have fully incorporated input from the Portfolio Committee on Energy and Power Development and other stakeholders in the energy sector. The Committee is of the view that there are some outstanding areas which if addressed, will unlock the full potential of the industry, deepen the inclusivity and maximise its contribution to the socio-economic development of the country. In light of this, the Committee recommends the following measures which it feels will raise revenue in the sector and contribute to economic growth:
3.1. Capacitation of ZESA Enterprises (ZENT)
The Committee noted with concern that Treasury did not allocate funding to ZESA for the procurement of transformers which are critical for electricity distribution. Furthermore, no funding was proposed for lending to ZESA to support the manufacture of transformers by ZESA Enterprises. In light of serious foreign currency shortages currently prevailing in the country, the Committee recommends that government must consider capacitating ZENT so that it increases production of transformers and other related products to meet domestic demand as well as exporting to other countries. Research have shown that during the last 5 years, ZENT has exported transformers worth more than US$8 million to Malawi, Zambia, Lesotho and the Democratic Republic of Congo. Over the past 3 years, ZENT has completed 8 high voltage (7 x 33/11kV and 1 x 132kV/11kV) substations with a total capacity of 320MVA valued at US$32 million. The company is venturing into manufacturing the modern 132kV monopole power line. Therefore the capacitation of ZENT will help in reducing foreign currency outflows through imports.
3.2. Review the Biodiesel Project
Consultations with Ministry of Energy and Power Development and Finealt Engineering Officials revealed that the over the years, Finealt Engineering has been engaging technical experts drawn from local universities who have been testing different varieties of jatropha plants with a view to establishing those suitable to individual regions of Zimbabwe. They also sought to establish exact varieties that give the best yield per hectare. Currently, they are taking the project to a higher level of commercialisation. From the analysis presented to the
Committee, it became clear that the project is facing viability challenges ranging from shortage of jatropha seeds which then result in high production costs of 97 cents per litre against an international average cost of between 43 cents and 54 cents per litre. In light of these challenges, the Committee recommends that the project proposal of this project be relooked at before the government commits itself in providing the firm with guarantee for a $12 million loan from IRENA which the firm is currently pursuing. The Committee is also of the view that the employment budget paid to Finealt Engineering should be linked to output. An alternative will be for the $12 million loan from IRENA to be redirected to fund solar energy projects in schools.
3.3. Allocate funds for the purchase of vehicles
Ministry of Energy and Power Development raised concern over the failure by Treasury to provide funding for the purchase of vehicles in the 2018 and 2019 budgets. This has negative impacts on the monitoring and evaluation activities by the Ministry of some projects under the
Ministry’s portfolio. The Committee on Energy and Power Development recommends that Treasury should make provision for the purchase of vehicles in the current budget or at least consider providing enough resources under the maintenance budget of the Ministry to ensure that in the medium term the ageing fleet is well maintained whilst resources for the purchase of new vehicles are being mobilized.
3.4. Government plays a leading role in paying its electricity costs to ZESA
The Committee noted that ZETDC is owed a large amount of money by its customers. This situation undermines the parastatal’s capacity to pay for emergency power supplies, undertake critical maintenance and develop new capacity for both generation and transmission infrastructure. It is saddening to note that Government has also contributed to the problems facing ZETDC by failing to pay its bills. The Committee therefore recommends that in 2019, Government takes a leadership role by paying up its electricity bills arrears. Finally, Government should allow ZESA to install prepaid meters to all electricity users irrespective of one’s status in the society. This will improve revenue collection by ZESA and instill discipline in the use of electricity.
Future projects should include funding for distribution infrastructure
The Committee noted with concern that in some cases electricity consumers are failing to benefit from the power expansion projects due to unavailability of prepaid meters and transmitters. In light of this, the Committee recommends that future national projects such as Batoka, Sino-Hydro should include the supply of prepaid and transmitters to ensure quick recovery of funds committed to the projects.
While the Committee of Energy and Power Development welcomes the budget allocation, the Committee strongly feels that the potential of the energy sector to optimize its contribution to the socioeconomic development of the country can be fully unlocked if Treasury plays its part. This can be done through the timeously releasing of funds and resolving a number of outstanding issues which the Committee has raised in this report. I thank you Madam Speaker.
HON. MAYIHLOME: Madam Speaker Ma’am, I rise to present
the budget analysis for the Portfolio Committee on Defence, Home
Affairs and Security Services. In coming up with this report, your
Committee heard oral evidence from the Ministry of Defence,
Zimbabwe National Army, Air Force of Zimbabwe, War Veterans
Association on one hand as well as the Ministry of Home Affairs,
Zimbabwe Republic Police, Immigration Control, Registrar General’s Office, National Archives and National Museums and Monuments. I will go straight to the Ministry of Defence and War Veterans Affairs Vote 4.
The Ministry did not fully achieve its targets in 2018 due to perennial funding challenges. The Army and Air Force are a creation of the constitution with a requirement to be adequately funded so that they meet the desired statutory and constitutional obligations. In 2019, the Ministry was allocated $546.939m but $476.1m is earmarked for employment costs, leaving a paltry balance of $70.9m to cover other inescapable expenditures. Specific allocations were as follows:
The Zimbabwe National Army (ZNA)
The ZNA was allocated $395.64m inclusive of employment costs. However, salaries alone take $339.664m but were not adjusted for inflation. The amount is inadequate to ensure soldiers’ welfare considering that there are new recruits in addition to existing soldiers’ who need to be paid salaries and other allowances. The $55.98m balance after deducting employment costs caters for other expenditures is far short of the ZNA’s actual bid of $259.49m.
The following key expenditure items were grossly underfunded yet they are constitutional requirements:
- Rations: A total of $7.89m was allocated for rations against a requirement of $139.98m. This implies that on average a soldier will survive on $0.62 per day.
- Uniforms: A paltry $3.63m allocated for this item is far below the minimum requirement. Inadequately kitted soldiers will portray a bad image to the world regarding the dignity of Zimbabwe’s soldiers.
- Medical Services: Just $1.08m was allocated for medical services, meaning that each soldier and the dependents will be entitled to $2.50 per month as medical cover.
- Travel and Subsistence: Travel and subsistence (T&S) allowances were last paid in 2009 but will remain a liability to the government since they will be claimed by members on retirement.
- Training and Development: The $1m that was allocated is inadequate to meet the basic standards for training.
- Maintenance: $9.37m was allocated against an ideal requirement of $60.67m, and is grossly inadequate to improve gallery ranges, upgrade the ZNA buildings and facilities and maintain its technical equipment.
- Equipment: A total of $76.56m would be enough to cover all new acquisitions but only $12.94m was eventually allocated to purchase new assets such as computers, furniture, motor vehicles and fittings to replace the old ones.
- Public Sector Investment Programme (PSIP): All the 26 new and existing high impact PSIP projects will remain work in progress since Treasury thinly spread the allocation across the projects. The demining exercise which missed three deadlines will definitely fail to be completed in time given that only $0.5m was allocated.
- Legacy Debt: There is still an outstanding domestic debt on utility bills amounting to $32m and foreign debt of $54m which has no provision in the proposed budget for 2019 financial year.
Air Force of Zimbabwe (AFZ)
- The AFZ was allocated $75.424m for 2019 but $42m is meant for employment costs, leaving a balance of $33.5m for other expenditure items. However, the amount earmarked for employment costs did not take into account the military salary scale approved by the Defence Forces Services
Commission and the Health Services Board.
- Rations: Rations for the AFZ soldiers remain grossly underfunded. If a daily rate of $5per soldier is used, the ideal requirement to cover rations would be $7.2m and yet they were only allocated just $3.555m to cater for all institutional provisions.
- Uniforms: Additional funding is also required to adequately provide uniforms and other kits since this is a constitutional obligation.
- Medical services: Treasury allocated just $2m to cater for medical supplies but this is not sufficient to adequately cover medical requirements for the VVIP wing at Manyame Base Hospital.
- Travel expenses: The AFZ requires $1.8m to cater for all foreign travel expenses but was allocated $0.2m which cannot cover all the foreign travel expenses such as allowances, travel tickets and
- Equipment: The AFZ require a supplementary budget for the procurement of military equipment. The $4.545m that was allocated for this expenditure item is too little to meet the procurement needs of the AFZ.
- Physical Infrastructure: Approximately $6m is needed for this sub vote. The $1.2m which Treasury allocated is 20% of the ideal requirement because maintenance of military equipment is very expensive.
HON. CHIDHAKWA: Thank you Madam Speaker. I move that the Hon. Member’s time be extended.
HON. MAMOMBE: I second.
Motion put and agreed to.
HON. MAYIHLOME: Thank you Madam Speaker.
- Office Furniture: Office furniture for all bases and Air Force headquarters is in a sorry state and as such, more funding is required for the procurement of furniture and equipment, motor vehicles, air ranks houses and new construction works.
The allocated $12.949m is not adequate.
- Aviation fuel: Aviation fuel, diesel and petrol as well as lubricants are critical requirements to keep the AFZ aloft, hence require adequate funding to the tune of $4m, but just $1.142m was allocated and is not enough to purchase these expensive items.
- Maintenance: Just like in the ZNA, the AFZ construction and maintenance works at various bases were allocated paltry amounts that would not result in a speedy progress towards their completion.
4. War Veterans
There is a proposed Bill that may see additional war veterans and war collaborators and ex-detainees being registered, yet no funds were set aside to cater for their welfare.
Against the background of the above observations, your
Committee recommends the following:
- Treasury should take over and ring-fence all the Ministry’s outstanding debts with a view to have them paid up so as to restore good relationship with suppliers.
- Institutional provisions should be adequately financed to guarantee discharge of statutory obligation by the Ministry. In particular, rations, medical services, uniforms, travel and subsistence allowances, training and accommodation necessary and critical requirements for ensuring sustained operations of the forces in discharging their mandate.
- PSIP projects require full funding to expedite their completion.
- Enough funds should be allocated and timeously released towards the acquisition of capital assets and maintenance works to ensure our Defence Forces are kept at combat capability levels that keep them operational and deployable whenever situations requiring sovereign defence arise.
- Treasury should prioritise the demining exercise which missed several deadlines.
- All salaries and allowances for the Army and Air Force personnel should be enough to cover their welfare as they carry out their mandate while war veterans allowances should be kept reasonable to ensure sustenance of their welfare.
- Treasury should fully support the Zimbabwe Defence Industries and David Whitehead to avoid foreign currency requirement on importation of consumables, raw material and rations.
MINISTRY OF HOME AFFAIRS AND CULTURE- VOTE 18
($553 161 000)
- Global Overview and Analysis of the Ministry’s 2019 Budget
Treasury allocated $553.161m to the Ministry. Eighty percent (80%) of this amount ($428.098m) caters for employment costs. The balance of $125.063m only remains for operations. This amount is inadequate to fund the Ministry’s priority expenditure items for its departments. The Ministry is expected to raise funds amounting to $35.339m. However, these funds are deposited into the Consolidated
Revenue Fund and are unavailable for direct use by the departments.
7. The Zimbabwe Republic Police (ZRP) Budget Analysis
- Goods and Services: A total of $95.8m is required to cover rations and travel and subsistence allowances but Treasury allocated approximately $6.6m for these key expenditure items including T&S allowances which were last paid in 2009 forcing police to use their own resources or to beg from the public to execute their duties.
- Training: The $3.7m that was allocated for this item is surely not adequate to fund the relevant training programmes. This is important to improve the competences of police officers.
- Uniforms: The ZRP is a uniformed service hence police officers must be provided with a complete kit that includes uniforms and relevant tools of trade since this is a statutory requirement. The ideal allocation to meet this requirement would have been $4.5m.
- Communication and other equipment: Treasury allocated a paltry $2.8m for this item against an ideal requirement of $9.98m in light of the need for speed control gadgets, drones, National Control Centre, cameras, scanners and forensic equipment.
- Purchase of Vehicles: For increased mobility and visibility, 5 205 vehicles are required to meet the approved ZRP establishment of 7 000 vehicles for its operational units. The $11.3m that was allocated for this item is not enough.
- Equipment: The ZRP should be fully allocated its $5m to acquire forensic laboratory equipment, $58.6m to bankroll electronic traffic management system, $4.7m to establishing the uniformed Police Unit and $4.6m to acquire public order equipment.
g. PSIP projects
The police have 57 stations which were built using wooden modules, and they urgently need reconstruction using modern bricks. Similarly, all construction projects and maintenance works under the ZRP which had stalled for a long time are of high priority hence should be well funded to solve accommodation and office space challenges.
There are 27 000 members of the ZRP who do not have access to institutional accommodation.
8. Registrar General's Office
- The Registrar General has not yet received a paper used for the production of national certificates which it imported 2 years ago due to delayed release of foreign currency. This has led to a 6 months backlog of 170 000 passports.
- The Registrar General has a shortfall amounting to $3.3m required for computerisation.
9. National Archives
Funds are needed to start electronic management of documents for national archiving in an easily accessible manner but were not adequately catered for.
10. Immigration Control
The department needs to be fully computerised so as to be compatible for online visa applications and processing and admissions and to be compliant with other immigration requirements elsewhere in the world. There is also need to improve staff houses and offices at the border posts particularly at Kazungula.
11. Summary Analysis
Just like the ZNA and AFZ, the ZRP is a creation of the
Constitution. Most of the requirements of this institution are statutorily prescribed. Thus, the budget provision that fall below the minimum threshold affects the operational capability of the organisation. Equipping officers with basic tools and accessories is critical in discharge of their constitutional mandate. Failure to meet their subsistence and travel allowances compromises their performance and creates potential national security risks.
12. Recommendations of Budget Allocation for Home Affairs and Cultural Heritage
- The ZRP should be fully funded so that it can be fully equipped with up-to-date and modest assets, facilities and equipment. Treasury should therefore come up with a supplementary budget to adequately cover high impact expenditure items that lead to improved efficiency and operational effectiveness of the Ministry. These expenditure items include:
- The computerisation and digitalisation of process in all departments, ii. Acquisition of capital assets such as patrol vehicles and helicopters, drones and balloons, scanners and minerals detectors.
iii. Procurement of furniture and equipment for the Forensic
Science laboratory, iv. Completing the construction, upgrading and maintenance of accommodation and office facilities in various stations throughout the country.
- Operationalising the Formed Police Unit Maintenance.
- Treasury should clear all the $24m outstanding debt for the
ZRP in time.
- The retention funds should be managed by the Ministry (not by Treasury) to guarantee access of the funds as and when needed.
- All institutional items should be fully funded.
- Treasury should adequately support income generating projects like farming to ensure self-sufficiency by the
Ministry and reduce continued dependence on Treasury.
HON. TOGAREPI: I move that the debate do now adjourn.
HON. MADIWA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 5th December, 2018
BUSINESS OF THE HOUSE
HON. TOGAREPI: I move that the House revertc to Notice of presentation of Bill Number 2.
HON. MADIWA: I second.
Motion put and agreed to.
FINANCE (NO. 2) BILL
THE MINISTER OF WOMEN’S AFFAIRS, COMMUNITY,
SMALL AND MEDIUM ENTERPRISES DEVELOPMENT (HON.
NYONI) on behalf of THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. PROF. M. NCUBE)
presented the Finance (No. 2) Bill [H. B. 9, 2018].
Bill read the first time.
Bill referred to the Parliamentary Legal Committee.
On the motion of HON. TOGAREPI, seconded by HON. N.
NDLOVU, the House adjourned at Twenty Four minutes to Five o’clock p.m.