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NATIONAL ASSEMBLY HANSARD 06 February 2017 44-37 1
PARLIAMENT OF ZIMBABWE
Tuesday, 6th February, 2018
The National Assembly met at a Quarter-past Two o’clock p. m.
(THE HON. SPEAKER in the Chair)
ANNOUNCEMENTS BY THE HON. SPEAKER
LIAISON AND COORDINATION COMMITTEE MEETING
THE HON. SPEAKER: I would like to inform the House that the first monthly meeting of the Liaison and Coordination Committee meeting will be held tomorrow 7th February, 2018 in the Senate Chamber at 0900 hours. All Chairpersons of Portfolio Committees must attend this meeting. The Chairperson of the Parliamentary Legal
Committee and the Chairperson and Vice-Chairperson of the Women’s Caucus must also attend. All the relevant documents for this meeting have been placed in the pigeon holes of all the members who constitute the Liaison and Coordination Committee.
COLLECTION OF NOTEBOOKS
THE HON. SPEAKER: I wish to inform the House that all Hon. Members should collect their notebooks from the Public Relations officers who will be stationed at the Members’ Dining Hall from 1415 hours today during the sitting days.
HON. MISIHAIRABWI-MUSHONGA: Thank you Mr.
Speaker. I rise to make a point of privilege. I know that many times we have come to this House with complaints and I think when something good has happened, we need to acknowledge. I want to acknowledge, as women in the House, the appointment of the Commissioner-General for
ZIMRA and Judge Priscilla Chigumba, Chairperson of the Zimbabwe Electoral Commission (ZEC) who are women. I think it makes a difference that in those important areas, we are beginning to see women that are chosen on merit. I thank you Mr. Speaker. – [HON.
MEMBERS: Hear, hear.] –
RATIFICATION OF THE MARRAKESH AGREEMENT
ESTABLISHING THE WORLD TRADE ORGANISATION
First Order read: Adjourned debate on motion on the Marrakesh Agreement establishing the WTO Agreement.
HON. MATUKE: I move that the debate do now adjourn.
HON. MUKWANGWARIWA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 7th February, 2018.
Hon. Mutseyami having risen to give a point of order.
THE HON. SPEAKER: Why did you not do it immediately after Hon. Misihairabwi-Mushonga?
HON. MUTSEYAMI: Sorry, I was giving room for my Hon.
Speaker to conduct the business of the House smoothly.
THE HON. SPEAKER: No, no, we do not want to act in
HON. MUTSEYAMI: My apologies Mr. Speaker Sir.
THE HON. SPEAKER: Thank you.
HON. MUTSEYAMI: Thank you Mr. Speaker Sir. I have a take
note item on behalf of the Parliamentarians, with regards to our Constituency Development Fund (CDF). We need to acknowledge that the CDF is coming through and the Members of Parliament are moving with regard to the Constitution - however, it is more serious Mr. Speaker
Sir, to take note that we have issues that we agreed on behalf of Parliamentarians with regard to the Minister and the Speaker was available, but up to today, some issues have not been resolved regarding what we agreed in Victoria Falls.
It is important that we take note of this item so that these two issues are resolved henceforth, within time. It is also important that you advocate for us to have a solution to these issues before the life of the Eighth Parliament comes to an end. We do not want a situation whereby former Parliamentarians will come to have their issues resolved. It is important and you have to take note that as a result of the situation that we have and the life that we are living, some Members of Parliament are going beyond this life without enjoying their monies as a result of death due to a lot circumstances.
So, it is important Mr. Speaker Sir, to deal with this matter as a matter of urgency. It must be taken note of by the Minister and the Speaker that these two issues are resolved. I will not dwell much on that, but will acknowledge the issue of CDF. Thank you Mr. Speaker
THE HON. SPEAKER: Order, order. On the question of CDF,
the ball is in the court of the Hon. Members. Do what is required of by the Constitution and then draw down that money because you have; I am sure about four months to go and you need to really work hard to ensure that you promote those projects that have been identified in the various constituencies. The second part was a bit vague; you simply said all those things that are outstanding. I was not sure what you were talking about.
Hon. Maridadi having approached the Chair.
The Hon. Member has favoured me with the two items which seem to be very administrative and we are going to make sure that his concerns are addressed; which are also the concerns of all Members of
Parliament – [HON. MEMBERS: Hear, hear.] -
HON. MARIDADI: Mr. Speaker Sir, concerning almost the same matter that was raised by Hon. Mutseyami, ease of doing business is a buzz word in this country. I am sure all the Hon. Members here with constituencies that are trying to access CDF would agree with me that opening a bank account in Zimbabwe is the most difficult thing that you could ever imagine – [HON. MEMBERS: Hear, hear.] – It will take you no less than two weeks – at one time I went to the bank and I said I have provided all the documents – [HON. MEMBERS: Inaudible
THE HON. SPEAKER: Order, order! Can you lend the Hon.
Member an ear?
HON. MARIDADI: After giving all the documents that you think the bank requires to open a bank account, they still require some more.
At one time I was so irritated; I asked the bank manager if he wanted me to give him the birth certificate of my mother’s boyfriend. That was how angry I was. You are required to give everything; your National Identity Card (I. D.), birth certificate and you are trying to open an account with three other signatories; you give them the details of these signatories, passport size photos and a host of other things that you cannot even imagine. Still after giving them those things, they will tell you we still want proof of residence. You bring proof of residence, they will say the surname on this person’s ID and the surname on the utility bill are not corresponding, you need an affidavit.
It will take you no less than two weeks to open a bank account here in Zimbabwe, yet as foreigner, if you go to China today; you walk into a Chinese bank; all they will ask you to provide is some form of identification. You provide your passport; in 10 minutes time, you come out of that bank with a bank account and an ATM card. In Zimbabwe, all the Hon. Members in this House can vouch for me, there is not a single one of these Hon. Members who was able to open a bank account within five working days. It must take more than one month to open a simple bank account in this country, and you talk of ease of doing business?
An investor with $1 million trying to open a bank account at CBZ, if it is going to take him three weeks, he is going to leave with his money and go to Zambia, Mozambique or South Africa. This is one area that the Minister of Finance and Economic Development and those in authority must really look into – [HON. MEMBERS: Inaudible interjections.] -
THE HON. SPEAKER: Order, order! What needs to happen is that, I think our institutions, including the banks, need to be convinced and have a change of mindset. When His Excellency says Zimbabwe is open for business - that is a contradiction; because if Hon. Members by their very title are not honoured and tossed left, right and centre, that shows that the culture of business is still very colonial, I am afraid. I only promise that I will engage the Governor of the Reserve Bank to call upon the President of the Bankers’ Association to straighten up that one because we have no time. We only have four months to go – [HON.
MEMBERS: Hear, hear.] -
BUSINESS OF THE HOUSE
HON. MATUKE: Mr. Speaker Sir, I move that Orders of the Day,
Numbers 2 to 9 on today’s Order Paper be stood over until the rest of the Orders of the Day have been disposed of.
HON. MUKWANGWARIWA: I second.
Motion put and agreed to.
RESTORATION OF THE MOTION ON THE FIRST REPORT OF
THE PORTFOLIO COMMITTEE ON DEFENCE, HOME AFFAIRS
AND SECURITY SERVICES ON SERVICE DELIVERY BY THE
REGISTRAR GENERAL’S DEPARTMENT ON THE ORDER PAPER
HON. T. DUBE: I am the new Chairperson of the Portfolio
Committee on Defence, Home Affairs and Security Services.
THE HON. SPEAKER: Order, order. May I apologise to you
Hon. Rtd. Col. Dube, the notes should have read your name, rather than the old Chairperson’s. We apologise.
HON. T. DUBE: I rise to move a motion in my name as
Tshinga Dube, that the motion on the Report of the Portfolio Committee on Defence, Home Affairs and Security Services on Service Delivery by the Registrar-General’s Department in Zimbabwe which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order No. 73.
HON. MUTSEYAMI: I second. Motion put and agreed to.
RESTORATION OF THE MOTION ON THE FIRST REPORT
OF THE PORTFOLIO COMMITTEE ON LOCAL
GOVERNMENT, PUBLIC WORKS AND URBAN
DEVELOPMENT ON SERVICE DELIVERY BY LOCAL
AUTHORITIES ON THE ORDER PAPER
HON. MADANHA: Mr. Speaker, I move that the motion on the
First Report of the Portfolio Committee on Local Government, Public
Works and Urban Development on Service Delivery by Local Authorities, which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order No. 73.
HON. NDUNA: I second.
Motion put and agreed to.
RESTORATION OF THE MOTION ON THE SECOND REPORT OF
THE PORTFOLIO COMMITTEE ON TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT ON THE INQUIRY INTO
THE AVIATION INDUSTRY IN ZIMBABWE ON THE ORDER
HON. NDUNA: I want, first and foremost, to say I have got the blessing of the Chairperson of the Committee on Transport and Infrastructural Development to make sure that the motion on the Second
Report of the Portfolio Committee on Transport and Infrastructural Development on the Inquiry into the Aviation Industry in Zimbabwe which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order Number 73.
HON. MAONDERA: I second.
Motion put and agreed to.
RESTORATION OF THE MOTION ON THE FIRST REPORT OF
THE PORTFOLIO COMMITTEE ON TRANSPORT AND
INFRASTRUCTURAL DEVELOPMENT ON THE
FAMILIARISATION TOUR OF VICTORIA FALLS AND HARARE
AIRPORTS AND THE PLUMTREE-MUTARE ROAD PROJECT ON
THE ORDER PAPER
HON. NDUNA: Mr. Speaker Sir, once again, I want to say I have got the blessing of the Chairperson of the Transport and Infrastructural Development Portfolio Committee, Hon. Chitindi, that the motion on the First Report of the Portfolio Committee on Transport and Infrastructural Development on the familiarisation tour of the Victoria Falls and Harare Airports and the Plumtree-Mutare Road projects which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order Number 73.
HON. MAONDERA. I second.
Motion put and agreed to.
RESTORATION OF THE MOTION ON THE WORLD RADIO
DAY ON THE ORDER PAPER
HON. NDUNA: Thank you Mr. Speaker. I move that the motion on the World Radio Day which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order Number 73.
HON. NDORO: I second.
Motion put and agreed to.
RESTORATION OF THE MOTION ON MANDATORY SENTENCE
FOR RAPE ON THE ORDER PAPER
HON. MAJOME: Mr. Speaker Sir, I move for the restoration of the motion on Mandatory Stiff Sentences on Rape and Gender Based Violence and other means to combat gender based violence that lapsed because of the end of the previous session.
HON. S. CHIDHAKWA: I second. Motion put and agreed to.
RESTORATION OF THE MOTION ON STATE OF URBAN
ROADS ON THE ORDER PAPER
HON. MAJOME: Mr. Speaker Sir, I move the motion standing in my name that the state of Harare and other roads, which was superseded by the end of the Fourth Session of the Eighth Parliament be restored on the Order Paper in terms of Standing Order No. 73.
HON. S. CHIDHAKWA: I second.
Motion put and agreed to.
REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON THE
MINISTRY OF HEALTH AND CHILD CARE ON THE 2015
APPROPRIATION AND THE 2011 TO 2014 FUND ACCOUNTS
HON. MPARIWA: Mr. Speaker, I move the motion standing in name that this House adopts the report of the Public Accounts Committee on the Ministry of Health and Child Care on the 2015
Appropriation and the 2011 to 2014 Fund Accounts.
HON. MISIHAIRABWI-MUSHONGA: I second.
HON. MPARIWA: Thank you Hon. Speaker for giving me this
opportunity of presenting the report of the Public Accounts Committee on the Ministry of Health and Child Care. Hon. Speaker, due to the lengthy time that it has taken me to present this report to the House, I will do a supersonic presentation because some of the issues that are here, you will also get to know them in the 2016 audit report of the
The Public Accounts Committee examined the Ministry of Health and Child Care for the year December 31, 2015 and the accounts of the two funds administered by the Ministry. The Health Services Fund, 2013 and 2014; and the Medical Research Council of Zimbabwe, 2012 to 2013 - may I appeal to members Hon. Speaker because I see most of them walking out, that this report contains in the middle of it, issues where we have lost women during delivery time and actually children dying after being born because of negligence by the administration in hospital in terms of the nurses and the personnel. So, it is important because this report is a national report, it might actually touch in some of their constituencies, therefore, it is imperative that members pay attention to the presentation of this report in case it is part of their constituencies.
A qualified opinion is expressed when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in aggregate, are material, but not pervasive, to the financial statements. Pervasive misstatements are spread everywhere as to have a wider effect on an organisation’s financial statements. An adverse opinion is the most serious type of modified opinion. The auditor expresses an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that the misstatements, individually or in aggregate, are both material and pervasive to the financial statement. A disclaimer of opinion is expressed when an auditor is unable to obtain sufficient appropriate evidence on which to base the opinion. A table below shows the audit opinions expressed on the Appropriation and Funds Accounts during 2014 and 2015 Annual
Table 1: Audit Opinions on Appropriation and Funds
2014 Annual Audit
2015 Annual Audit
Ministry of Health and Child Care
Health Services Fund, 2011 and 2012
Qualified and Disclaimer respectively
Health Services Fund, 2013 and 2014
Medical Research Council of Zimbabwe, 2012 and 2013
Accounts not submitted for Audit
As shown in Table 1 above, the audits opinions expressed on the sets of accounts are a cause for concern.
It is also of great concern that the Ministry reported on the two Funds well out of time and this has been the general trend. This is a clear violation of the Public Finance Management Act (PFMA) [Chapter 22:19]. Section 35 (4) of the PFMA requires the Ministry to prepare and submit financial accounts for Funds within three months after the end of a financial year. This is barely a month after the deadline for submission of Appropriation accounts. It is, therefore, the Committee’s considered view, that it is high time Treasury should come up with specific sanctions for such violations.
2.0 OBJECTIVES OF THE ENQUIRY
Section 299 of the Constitution of Zimbabwe Amendment No. 20 of 2013 states as follows:
(1) Parliament must monitor and oversee expenditure by the State and all Commissions and institutions and agencies of Government at every level, including statutory bodies, government controlled entities, provincial and metropolitan councils and local authorities, in order to ensure that-
- all revenue is accounted for;
- all expenditure has been properly incurred; and
- any limits and conditions on appropriations have been observed.
Section 309 (2) (a) of the Constitution provides for the functions of the Auditor-General as follows:
“to audit the accounts, financial systems and financial management of all departments, institutions and agencies of government, all provincial and metropolitan councils and all local authorities”.
National Assembly Standing Order No. 16 mandates PAC to examine the sums granted by Parliament to meet public expenditure and such other accounts laid before the National Assembly.
It is therefore, the duty of the Public Accounts Committee to report whether such public funds have been managed and expended as authorised by Parliament. In this context, the Committee examined the audited Appropriation and Funds Accounts for the Ministry of Health and Child Care as reported by the Auditor-General in her Annual Report for the financial years ended December 31, 2015.
The Committee held an oral evidence session with Rtd. Brig. Dr.
Gwinji, the Permanent Secretary and Accounting Officer for Ministry of Health and Child Care and other senior officials within the Ministry. It requested written evidence which was then analysed and further formed the basis of the Report.
4.0 FINDINGS, OBSERVATIONS AND
RECOMMENDATIONS BY THE COMMITTEE
4.1 APPROPRIATION ACCOUNTS FOR THE MINISTRY
OF HEALTH AND CHILD CARE FOR THE YEAR ENDED
DECEMBER 31, 2015
4.1.1 Poor maintenance of accounting records
A variance of $5 671 372 was observed between the Sub-
Paymaster General’s Account (Sub PGM) and the Public Finance
Management System (PFMS) figures. There was also a total variance of
$221 996 observed between the returns for Receipts and Disbursements, Gifts, Legacies and Donations and the PFMS figures. Under such circumstances, the accuracy of the total expenditure figure became questionable and in the absence of reconciliations, errors and fraud might not be detected.
During oral evidence, Rtd. Gen. Dr. Gwinji attributed the variance between Sub-PGM’s Account and the PFMS to a technical error which occurred in the PFMS after the Grant Management Module was configured within the System. Thereafter, the Ministry resorted to manual recording of transactions that went through the Sub-PGM’s Account with the Reserve Bank of Zimbabwe as opposed to recording in the System. The Ministry carried out monthly reconciliations and the final reconciliations were availed to the Committee during the oral evidence session. The Permanent Secretary further informed the Committee that the System was configured in 2016 to capture transactions to completion while the 2015 transactions remained unresolved pending measures being taken by Treasury to correct the technical problem in the System.
The Permanent Secretary’s response with regard to the variance relating to the returns for Receipts and Disbursements, Gifts, Legacies and Donations was that the System was not yet configured to capture donations.
The 2016 Auditor-General’s Report showed that the unreconciled balances between the Sub-PMG’s Account and the PFMS had been resolved. The Committee was satisfied with the measures taken by the Permanent Secretary in resolving the variance.
126.96.36.199 The Committee recommends that, Treasury should, by 31 December, 2017, configure the PFMS to capture Receipts and Disbursements, Gifts, Legacies and Donations.
4.1.2 Unsupported Expenditure
The Audit observed that payments amounting to $10 184 727 made by Treasury to service providers on behalf of the Ministry were not supported by either receipts or proof of payment. The same observation was made in 2014, which is an indication that the Ministry was not taking audit issues seriously. When payments are made to service providers without adequate supporting source documents, there is a risk that expenditure might be incurred for unintended purposes and fraudulent payments might also be processed.
The Ministry attributed the absence of supporting documents to delays by Treasury in relaying information on direct payments made to City of Harare and the Zimbabwe Electricity, Supply Authority (ZESA) through set-offs with the Zimbabwe Revenue Authority (ZIMRA). The Permanent Secretary indicated that currently, Treasury requires the Ministry to authorise payments before they could be processed. This enables the Ministry to enforce production of receipts of previous setoffs before new set-offs could be authorised. As a control measure, the
Ministry currently maintains a manual register for set-offs which enables it to identify and follow up on any documentation for outstanding setoffs.
The 2016 Audit observed that the issue had not been fully addressed though it noted great improvement as the figure of unsupported expenditure had significantly decreased. The Committee is of the view that it is a responsibility of the Ministry to obtain receipts or proof of payment for all payments made on its behalf by Treasury as the expenditure is made against its vote.
188.8.131.52 The Committee recommends that, the Ministry should, by 30 September, 2017, avail to the Auditor-General, supporting documentation for all unsupported expenditure.
4.1.3 Outstanding Payments to Suppliers of Goods and
The Audit observed outstanding payments to suppliers of goods and services amounting to $46 254 732 and some of the amounts date as far back as 2012 financial year. The figure shot up to $70 112 498 in
2016 which is an indication that the Ministry was not paying heed to audit recommendations. There is a risk that the Ministry might incur litigation costs in the event suppliers consider legal action. In the event suppliers also consider demanding cash upfront for supplies, there would be serious repercussions considering that the Ministry offers essential services which concern the lives of the people.
The Permanent Secretary admitted that it was failing to meet its obligations with supplies of goods and services due to paltry releases by Treasury. Despite the existence of the Health Services Fund to augment budgetary allocations for the Ministry, Rtd. Gen. Dr. Gwinji reiterated that the current funding sources were not in a position to cover basic hospital operations. He added that its creditors stood at $50 million and the figure increased each year by over $10 million while budget allocations were averaging at $14 million. The ballooning debt will, in the long run, impact negatively on the supply chain.
The Committee noted with concern that the situation in government hospitals was pathetic and was getting worse each day. The Permanent Secretary informed the Committee that they were no longer able to provide some of the essential services. The Committee further noted with concern that the Ministry was providing services to the less privileged sections of the society who are the majority and cannot afford health services by private players. There was, therefore, need for a rethinking in terms of funding the health sector.
184.108.40.206 The Committee recommends that, Treasury should, during the 2018 National Budget, provide funding for the outstanding debt by the Ministry.
220.127.116.11 Treasury should, by 31 December 2017, come up with a comprehensive alternative financing model for the health sector, to ensure quality service delivery to the nation.
4.1.4 Late and Non-Submission of Statutory Returns
The Audit observed that the Ministry failed to submit the
Statement of Revenue Received, Receipts and Disbursements and
Temporary deposits on time in violation of Section 35 (6) (i) of the
Public Finance Management Act and Audit Circular. It was not possible to verify the correctness, accuracy and completeness of figures disclosed in the financial statements thereby delaying the audit process.
The Permanent Secretary attributed the delay in submission of returns to the technical error in the PFMS which caused some transactions not to be fully processed. The technical error was reported to the PFMS Project Office but was not quickly resolved. The technical error was eventually resolved and the Committee was satisfied with the measures taken by the Ministry in addressing the audit observation.
4.1.5 Inadequacies in the Management of Assets under the
The Audit observed that the equipment worth $295 553 which was purchased for Ngomahuru Hospital for the mentally challenged had been lying idle since the past three years. A similar observation was made for various pieces of equipment purchased under the $3 million targeted approach for the Mutare Provincial Hospital. Furthermore, the Ministry did not pay suppliers of equipment totalling $3 492 642.
The Permanent Secretary informed the Committee that the equipment at Ngomahuru Hospital, after being purchased, was diverted to Victoria Falls Hospital at the time of delivery, following an urgent need necessitated by the hosting of the United Nations World Tourism Organisation Conference (UNWTO) in 2013. After hosting the event, the equipment got damaged during the transfer to Ngomahuru Hospital. The supplier of the equipment, when approached for repairs, did not respond positively as he was owed money by various hospitals. The equipment has been lying idle since that time.
As for the equipment at Mutare Provincial Hospital, the Ministry indicated that the equipment was procured by funding from the Department for International Development (DFID). The equipment was meant for Masvingo Provincial Hospital but was later redirected to Mutare Provincial Hospital. This was after the realisation that the equipment was steam-driven, yet Masvingo Provincial had no steampowered boilers. On delivery of the equipment at Mutare Provincial
Hospital, the boilers broke down and it was discovered that they needed a complete overhaul. Funds to the tune of $100 000 to resuscitate the two boilers were released but no competent bidder came forth hence the equipment could not be commissioned.
The Committee expressed concern on the failure by the Ministry to take due care of Government assets at the time where most hospitals were critically undercapitalised. There is no doubt that failure by the Ministry to commission equipment on time will result in failure by the health institutions to deliver critical services. As alluded to earlier in this Report, suppliers were withholding services due to non-payment by the Ministry. The equipment lying idle at Mutare Provincial Hospital had exposed serious procurement weaknesses within the Ministry which needed to be addressed. One wonders how one could afford to purchase equipment which was not suitable for the prevailing situation and go unpunished. The Committee also wonders how the Ministry could spent more than a year trying to secure a tender. The Ministry indicated that it would flight another tender for boilers during 2017 and there is a possibility that it will get to next year and the story remained the same.
Basically, the situation remained the same during the 2016 audit.
18.104.22.168 The Ministry should take all the necessary steps and ensure that the equipment at Ngomahuru and Mutare Hospitals is repaired and commissioned by 31 December, 2017.
4.2 HEALTH SERVICES FUND ACCOUNTS FOR 2014
The Fund was established to collect and administer hospital fees to supplement the Health budget. Below were the observations of the audit on the administration of the Fund.
4.2.1 Non-Recovery of Debtors
The Audit observed that for the three years in succession, the debtors’ figure had been accumulating from $15 068 702 in 2013 to $20 174 649 in 2014 and to $23 634 749 in 2015. The figure, as in 2015 represents 99% of the total assets of the Fund. This shows that the Fund is experiencing serious liquidity challenges and as a result, service delivery is seriously compromised.
The Permanent Secretary admitted before the Committee that the increase in the Fund’s debtors was really taking a worrying trend. The biggest challenge was that patients who presented themselves at Government hospitals were the most vulnerable groups in society and cannot afford to pay for services. On the other hand, it was morally bad to turn them away for non-payment. Secondly, there were institutional debtors such as Government funded institutions namely: Social Welfare, the Zimbabwe Republic Police, the Zimbabwe National Army, Prisons and War Veterans who were slow in settling bills for their members.
Medical Aid Societies were also slow in paying for their members.
The Permanent Secretary informed the Committee that the Ministry, in some instances, had engaged debt collectors. However, there was public outcry because of the heavy handedness of the debt collectors. Hospitals also thoroughly screen patients in order to assess the ability to pay. For those who can pay, they demand cash upfront for certain services. Furthermore, they obtain details of next of kin for follow up purposes. In view of the prevailing cash challenges, they utilise point of sale machines and electronic money transfers.
The Committee acknowledged the measures taken by the Ministry to enhance revenue flows into the Fund. Considering that the poorest sections of the nation present themselves at Government hospitals, there is need for a relook at the financing model of the public health sector. If no immediate solution is sought, the Fund will soon be in serious liquidity challenges given that debtors account for 98% of the Funds total assets.
22.214.171.124 The Committee recommends that, the Ministry in liaison with Treasury should, by 31 December, 2017, come up with a viable and sustainable financing model for the public health sector.
4.2 Irregular Expenditure totalling $57 411 at Masvingo
It was observed that Masvingo Provincial Hospital incurred a total expenditure of $57 411 in rented accommodation for doctors without Accounting Officer and Treasury Authority. It was also observed that other Hospitals were not paying such allowances. There is a risk of incurring wasteful expenditure by the Ministry if allowances are not approved by competent authorities. The situation did not improve in 2015 as Mutare Provincial Hospitals also incurred $45 975 for medical doctors accommodation without approval.
The Permanent Secretary indicated that the practice was stopped after the audit observation. He pointed out that in such circumstances where the Hospitals resorted to paying such allowances, they would have struggled to attract doctors. In this case, the Masvingo Provincial Hospital was said to have struggled to attract doctors since 2000 due to accommodation problems.
126.96.36.199 The Committee recommends that, the Ministry should, by 31 December, 2017 come up with a standard policy on housing allowances for medical doctors.
4.2.3 Account Balances amounting to $226 263
Due to poor maintenance of accounting records, it was observed that the 2013 financial statements reflected a total imbalance of $226 263 between Head Office and two Provincial Hospitals namely: Gweru and Chinhoyi Provincial Hospitals.
The Permanent Secretary indicated that Chinhoyi Provincial
Hospital was paying casual workers from both the Appropriation Account and the Health Services Fund. Payments from both the two sources were posted to a single ledger account. During preparation of final accounts for the Fund, payments made from the Appropriation Account were not recognised as expenditure under the Fund resulting in a variance of $7 116. The Ministry indicated that, going forward, the Hospitals are required to maintain separate ledger accounts for the two sources of funding. For Gweru Provincial Hospital, variances were attributed to January 2013 expenditures that were not recorded in the respective ledger account. The correct expenditure figures were however disclosed during the preparation of 2013 final accounts. The Hospital provided a written explanation and the ledger accounts were adjusted to reflect the correct position. The Ministry availed documentary evidence and the matter was resolved to the Committee’s satisfaction.
188.8.131.52 The Committee recommends that, the Government should, by January 2018, provide the Ministry with a special dispensation to recruit accounting personnel for districts and provincial hospitals.
4.2.4 Unexplained Suspense Account Balance of $52 419
The Audit observed a balance of $52 419 in the suspense account which the Ministry did not provide an explanation on. During oral evidence, the Ministry indicated that the balance was investigated. The $51 017 was an omission of the Beitbridge District Hospital fees income for December 2013 in the final accounts which was presented in excel format. The $1 056.78 was attributed to funds transferred to
Matebeleland North Provincial Medical Director’s Office from a district hospital which was not disclosed in the final accounts in error. The
$344.90 was an understated figure for Gwanda Hospital debtors. The Ministry indicated that plans were underway to roll out PFMS to hospital to improve on the management of hospital funds.
184.108.40.206 The Committee recommends that, the Ministry, in collaboration with Ministry of Finance should, by January 2018, roll out SAP to district and provincial hospitals.
4.2.5 Poor Maintenance of Records
The Audit observed that Karoi District Hospital, Chinhoyi and Masvingo Provincial hospitals did not maintain ledger accounts. As a result, the Audit was not able to determine the accuracy of revenue and expenditure disclosed in the financial statements. The Permanent Secretary, during oral evidence, bemoaned lack of adequate accounting personnel to manage the finance sections in the various hospitals as a result of recruitment freeze in Government. He added that the establishment which had been in place since the last 10 years was no longer coping with increased workloads due to increased number of decentralised services to district hospitals and decline in funding by development partners. The Ministry since 2012, had been requesting for accounting personnel but without success. The Ministry was relying on unqualified personnel to handle finances in hospitals.
The Committee noted with concern that in the 2015 Audit Report, Hospitals still had challenges in maintaining accounting records. In addressing the challenge, the Ministry indicated that it was undertaking support visits to districts and provincial hospitals.
220.127.116.11 The Committee recommends that the Health Services Board, in liaison with Treasury, should provide a special dispensation for the Ministry of Health and Child Care to hire accounting personnel for Government hospitals by 31 December 2017.
4.2.6 Unsupported Expenditure amounting to $304 693
The Audit observed that the Fund made payments on behalf of various hospitals amounting to $304 693 without supporting documents such as procurement committee minutes, competitive quotations, requisitions, invoices, receipts and goods received. In 2013, the figure was $77 404. In the absence of supporting documentation, the Fund runs the risk of incurring wasteful expenditure and fraudulent transactions may be occurring without being detected.
The Ministry informed the Committee that in some instances, there was a single supplier and as a result, there were no procurement documents in the form of competitive quotations. Some payments were also made electronically, hence no receipts for suppliers. The Ministry, in its investigations also observed that, in some instances, procurement documents were kept by the Administration departments while payment documents were kept by Accounts departments.
The Ministry now conducts support visits to hospitals as from the beginning of 2016, as part of addressing the observation. It emphasised the need to have all documents relating to transactions kept in the Finance section to avoid unnecessary confusion during audit.
18.104.22.168 Going forward, the Ministry should ensure that all payment vouchers are adequately supported by source documents.
4.2.7 Weak Internal Controls in Management of Fuel
Due to weaknesses in internal control system, the audit observed that some institutions failed to account for fuel totalling 32 280 litres valued at $41 048. The Ministry explained that the fuel in question was related to fuel from cooperating partners. The Head Office used to procure and distribute to various programme managers based on approved workplans. Following the observation, the Ministry stopped the system and decentralised the administration of fuel to various stations. Stations had been instructed to maintain fuel registers. The Committee was satisfied with the measures taken by the Ministry in addressing the observation.
4.2.8 Weak Internal Controls in Management of Medicine
The Audit observed with concern the unavailability and poor management of essential medicines which are critical for service delivery by the Ministry. In some instances, Kwekwe District Hospital failed to account for some medicines while Tsholotsho District and
Gweru Provincial Hospitals were operating without essential medicines.
This was a result of poor prioritisation and weak internal controls on medicines management. Weak controls may also result in medicines pilferages.
The Committee noted with concern that the situation worsened in
- Stock levels at seven institutions visited in 2015 were below 80%. Most of the institutions visited had weaknesses in maintenance of records for medicines.
The Permanent Secretary informed the Committee that hospitals were not in a position to maintain required stock levels of medicines due to inadequate funding. He indicated that the Ministry was working on installing an electronic system of stock management in a phased approach, in order to improve on internal controls. He also indicated that pilot projects were carried out at Chitungwiza, Parirenyatwa and Mpilo Hospitals.
22.214.171.124 The Committee recommends that the Ministry should, in the 2018 National Budget, prioritise the installation of the electronic system of management of drugs by hospitals.
4.2.9 Poor Service Delivery at Karoi, Kariba and Tsholotsho
District hospitals and Bindura and Masvingo Provincial Hospital,
The Audit observed poor service delivery at Karoi, Kariba and Tsholotsho District and Bindura Provincial Hospitals due to obsolete equipment, excessive electricity power cuts, absence of alternative water sources and unavailability of medicines.
During 2013, poor service delivery was observed at Masvingo
Provincial Hospital and was attributed to cases of negligence by staff. The cases resulted in loss of lives. Three Midwives did not attend to a patient in the labour ward, resulting in the death of a newly born baby due to cold. Two registered nurses also neglected a patient who was critically ill. The patient later died under the care of a nurse aide.
The Permanent Secretary acknowledged that health institutions had suffered long periods of deterioration of equipment. He informed the Committee that the Ministry had adopted a systematic approach to reequipping the institutions through cooperating partners. He indicated that Government had secured a loan on behalf of the Ministry which had enabled the Ministry to purchase various equipment for institutions. A national distribution list for various pieces of equipment was unveiled to the Committee. The Ministry had also requested the Zimbabwe Electricity Supply Authority (ZESA) to put hospitals on priority grid. It purchased standby generators for other areas. In partnership with cooperating partners, it drilled boreholes in identified and other institutions. Construction of water reservoirs was said to be at advanced stage at Parirenyatwa and Harare Hospitals.
Concerning the Masvingo incidents, the cases were investigated and disciplinary action was taken against the nurses. The Ministry indicated that it had also embarked on a mentorship programme especially for maternal health care.
The Committee was satisfied with measures taken to address the challenges observed.
4.3 MEDICAL RESEARCH COUNCIL OF ZIMBABWE
The Medical Research Council was established to promote, direct, control and carry out research on health issues.
4.3.1 Unsupported Expenditure
The Audit observed that the Ministry failed to provide supporting documentation for payments amounting to $20 864 in 2013 and in the previous year in 2012 the amount was $207 261. In the absence of supporting documentation the Audit could not ascertain whether the expenditures were a proper charge against the Fund.
The Permanent Secretary admitted that there were weaknesses in the accounting system at the Research Council. In responding to the Audit observation, the Ministry had seconded staff to assist the Council in maintenance of accounting records. The Committee expects some improvements in the next round of audits in this regard.
4.3.2 Violation of Tender Procedures in Procurement of a
The Audit observed that the Research Council purchased an Isuzu KB 300 second hand motor vehicle amounting to $15 000 without going to tender. Procurement outside laid down tender procedures may expose the Fund to misappropriation, underhand deals and uneconomic procurement.
The Ministry indicated that there were challenges on observing tender procedures in the purchase of a second hand vehicle. Going forward, the Ministry indicated that all procurement by the Council should be approved by the Ministry Head Office.
126.96.36.199 The Committee recommends that the Ministry should, by 31 December 2017, train Council staff responsible for procurement.
188.8.131.52 Going forward, all procurement by the Research
Council should be supervised by the Ministry Head Office.
The Committee observed that there was generally some improvements in the management of the appropriation accounts. It however, noted with concern that there was generally poor management of Fund accounts under the Ministry. There was poor record keeping due to a highly manual environment coupled with absence of accounting skills. This had been attributed to the freeze by Government on recruitment. Management of medicines in Government hospitals also leaves a lot to be desired. This is also as a result of manual systems in place. Funding remained a major challenge and service delivery in
Government hospital cannot be guaranteed.
Government should, as a matter of urgency, come up with a viable funding mechanism in the health sector if ever a vibrant health delivery system is to be realised. In this age of digital technology, the Ministry should move with speed and put in place electronic systems in the management of medicines. SAP should, as a matter of urgency, be rolled out to district and provincial hospitals to ensure effective management of funds.
HON. MISIHAIRABWI-MUSHONGA: Thank you Mr. Speaker
Sir. I stand to second and support my Chairperson on that important report. I think she went to detail in terms of the things that we found as a Committee and I share her disappointment on the lack of interest in listening. You remember, it is this House that made a decision to bring Mrs. Chiri back, because this is the work that Mrs. Chiri is doing. So you cannot celebrate an individual and not celebrate the product of what she is bringing to us. I just want to agree with my Chairperson in terms of the disappointment around the lack of listening but also just general interest in one of those things.
Mr. Speaker, I will not spend too much time. I will just underline one thing that seems to be coming up all the time when we come and present reports. I think it is important that the Minister of Finance and Economic Development responds to us at some stage. It is to do with the issue of procurement. The procurement in Government is bad. Every time we are coming back and we are saying tender processes were flouted. What is worse is not just the flouting of tender processes, people are buying nothing. They say we are going to buy an ambulance and the ambulance is not delivered.
In fact, we now have people who are using Government as their place to rob and we are doing nothing about them. They are not being arrested and nothing is happening to them. They are not even being fired, instead, some of them are transferred from the Ministry of Health to another Ministry. I think we have to raise it as a matter of concern, otherwise there is no point in my Chairperson sweating like you saw her sweating, trying to encourage you to listen to her report and raising issues about people who are stealing Government resources, tax payers’ money and day in, day out, we keep giving these reports. If nothing is going to be done, we may have to, as a Public Accounts Committee, make a decision to say we are not going to bother bringing reports here because it does not make a difference. I thank you Chair.
HON. RUNGANI: I move that the debate do now adjourn.
HON. NDUNA: I second.
Motion put and agreed to.
Debate to resume: Wednesday 7th February, 2018.
REPORT OF THE PORTFOLIO COMMITTEE ON TRANSPORT
AND INFRASTRUCTURAL DEVELOPMENT ON THE ENQUIRY
INTO THE REMITTANCES TO THE TRAFFIC SAFETY COUNCIL
FROM THIRD PARTY INSURANCE PAYMENTS
HON. NDUNA: I move the motion standing in my name; that this House takes note of the Report of the Portfolio Committee on Transport and Infrastructural Development on the Enquiry into the remittances to the Traffic Safety Council from Third Party Insurance payments.
HON. MANGWENDE: I second.
HON. NDUNA: Introduction:
In his address at the Zimbabwe Revenue Authority (ZIMRA)
Taxpayer Appreciation Day held on the 22nd of September 2016, the
Minister of Finance and Economic Development, Hon. Patrick Chinamasa, issued what appeared to be a disconcerting and worrisome statement at the time. As Hon. Members may recall, since his appointment, Hon. Minister Chinamasa has been making a valiant and spirited attempt to clear Zimbabwe’s debt with multilateral financial institutions in a bid to regain credibility on the international financial market and open up lines of credit for the country which has been facing crippling liquidity constraints, primarily resulting from lack of external budgetary support. However, on the day in question, which should ironically have been a day of festivities and celebration as Zimbabwe was on a firm path towards clearing arrears owed to the International Monetary Fund (IMF), Hon. Chinamasa informed the nation that the country would have to stand on its own in terms of sourcing critical credit lines. In his own words, he said:
“What this means is that as individual countries, we can no longer rely on development assistance to support our budgets. In the case of Zimbabwe, we have not had any budgetary support from outside for a very long time. In truth, therefore, we are on our own. We now have to seriously look at domestic mobilisation as paramount to our economic development.”(The Standard, September 25, 2016)
It was not lost on us as a Committee that our own leader, the Hon. Speaker himself, has been a strong advocate of domestic resource mobilisation and has been at pains to encourage Committees to assist the Executive with SMART ideas of mobilising resources locally. Look no further than the 2016 Pre-Budget Seminar.
Hon. Speaker, cognisant of the independence and sustainability that a model based on domestic resource mobilisation fosters, your Committee took the initiative to explore ways in which the country could mobilise the critical domestic resources required to contribute to the fiscus and spur the accelerated economic growth envisaged in our economic blueprint ZIM ASSET. The Committee resolved as a first port of call to focus on the remittances that were due to the fiscus from the 12.5% motor levy that ought to be collected by the Traffic Safety Council from every Third Party Insurance Policy payment, of which 5% would accrue to Treasury. This enquiry was spurred by the exponential growth in the last few years, of outdoor motor vehicle insurance sales agents frequenting post offices or anywhere else where motor vehicle insurance was sold.
It was a matter of grave concern to your Committee, Hon. Speaker, whether or not these fly-by-night insurance agents were registered, whether or not they would subsequently remit the 12.5% motor levy due to the Traffic Safety Council and the 5% due to the fiscus, and the potential revenue leakage stemming from the rapid growth of this ‘sector’- for lack of a better word. The Committee was further cajoled into action by the rising reports of insurance fraud or fake insurance sold to unsuspecting members of the public by some of these bogus agents and the loss of revenue thereof. Tragically, 32 of our citizens had perished in a fatal road accident along the Harare-Bulawayo Road on Thursday 3rd March, 2016, and it was discovered that one of the vehicles had a fake insurance policy. So the innocent victims and the remaining families would sadly not receive any form of compensation owing to these unscrupulous agents.
It is an incontrovertible fact that the transport and infrastructure development sector harbours latent potential to raise the much-needed revenue for the country which will galvanise the economic revival of Zimbabwe. To this end, Hon. Speaker, your Committee resolved to comb through the relevant legislation, in particular, the Act governing the operations of the Traffic Safety Council of Zimbabwe, to establish the legal basis for the collection of this revenue. The Committee then invited the Minister of Transport and Infrastructural Development, Hon. Dr. J. M. Gumbo, to issue a Ministerial Statement in the National Assembly covering the issue of the motor levy, before concluding its enquiry by inviting ZINARA to give oral evidence on the same. The Committee would like to put it on record that even prior to the
Minister’s statement, your Committee Hon. Speaker, had engaged ZINARA and given them a deadline of about a month to computerise the collection of the 12.5% statutory fee for third party insurance. Be that as it may, the Committee would like to express its sincere gratitude to Hon. Minister Gumbo for graciously accepting the Committee’s request and presenting a comprehensive and frank statement covering a wide range of critically important issues. Your Committee’s findings and recommendations, Hon. Speaker, are outlined below.
Legal Basis for the Collection of the Motor Levy:
Section 34 (1) of the Traffic Safety Council Act (Chapter 13:17) provides that
34 Imposition of levies
(1) Subject to this Part, the Minister, with the approval of the Minister responsible for finance and after consultation with the board, may by statutory instrument impose a levy on—
(a) Persons who obtain or renew policies of insurance for the purposes of the Road Traffic Act [Chapter 13:11]; and (b) Driving schools.
Subsection 2 states that:
(2) In a Statutory Instrument published in terms of subsection
(1), the Minister may prescribe—
- subject to subsection (3), the amount of the levy;
- the persons responsible for the payment of the levy;
- the persons responsible for the collection and remittal of the levy;
- the manner and times at which the levy shall be paid, collected and remitted; and
- the imposition of interest and additionally, or alternatively, a surcharge if the levy is not paid within the time prescribed.
Statutory Instrument 45 of 2005 was enacted to give effect to Section 34 of the Traffic Safety Council Act and effected 12.5% of the total value of every third party insurance bought as the remittance due to the council while 5% goes to Treasury. However, the Committee noted that the law does not appear to bestow punitive powers on the council for errant insurance companies who do not remit the legally stipulated
Submissions by the Minister of Transport and Infrastructural
In his Ministerial Statement, the Minister of Transport and
Infrastructural Development, Hon. Dr. Gumbo, acknowledged that the Traffic Safety Council of Zimbabwe as the lead road safety agency, was supposed to get 12.5% of every Third Party Insurance Policy issued in the country through a motor levy as stipulated in the afore-stated legislation while 5% would accrue to Treasury. At the current cost of
US$30 per term, the amount due to the council from every policy was US$3.60. On a monthly basis, the council was supposed to collect an average of US$224 000 which translated to about US$2.688 million annually. Holding everything else constant, Treasury on the other hand, would collect US$93 340 every month and US$1.120 million annually.
However, regrettably the council was facing challenges in collecting the said levy from insurance companies due to the proliferation of bogus insurance policies as well as the non- compliance with regulatory requirements by some insurance companies. To mitigate this systemic weakness, the Ministry had engaged insurance companies to introduce electronic insurance cover notes linked to the databases of ZINARA and CVR. Once this becomes operational, no vehicle would be issued with a motor vehicle licence without a valid insurance policy. The effect of this would be to curb revenue leakages resulting from the issuance of fake insurance policies. Electronic insurance cover notes would also enable the relevant authorities to keep track of policies that had been paid and thus follow up on those insurance companies that would not have remitted the statutory levies. The Minister appealed to your Committee, Hon. Speaker, to lend its support to the roll out of electronic insurance in order to curb revenue leakages and mobilise domestic resources. This was in line with the Committee’s earlier recommendation to ZINARA to computerise collection of the 12.5% statutory levy for third party insurance.
Submissions by ZINARA:
Armed with this important information relayed by the Minister, the Committee invited the Board Chairperson of ZINARA for the second time to give evidence on the roll out of the computerisation system as recommended by your Committee.
ZINARA acknowledged that they had indeed taken up the recommendation by the Committee to computerise the collection of the 12.5% statutory fee on third party insurance. Pursuant to this, the electronic insurance cover note had gone live on the 1st of May, 2016. This had resulted in an astronomical increase in revenue collection by the Traffic Safety Council from the US$224 000 monthly mentioned by the Hon. Minister to an average US$1 million per month and, by Treasury, from US$93 340 per month to US$416 666. To put it into perspective, computerisation of revenue collection had removed inefficiencies in the system to the extent that where the Traffic Safety Council used to receive US$2.688 million annually, it was now receiving at least 12 million per year, whilst Treasury was now getting at least US$5 million annually from US$1.120 million.
ZINARA further projected that assuming 100% compliance by insurance companies, the revenue generated by both the Traffic Safety Council and Treasury would increase five- fold. Numerically, the implication of this was that revenue for the Traffic Safety Council would increase from US$1 million to US$5 million monthly and, by extension, US$12 million to US$60 million annually. Likewise, revenue for Treasury would increase from US$416 000 to US$2.080 million per month and US$5 million to US$25 million per year.
ZINARA admitted that they would not have expedited the computerisation of the insurance cover note were it not for the insistence and perseverance of your Committee, Hon. Speaker, and this had proven to be a game changer in terms of domestic resource mobilisation. Linking the insurance cover note to the licensing system has literally obliterated the parallel market which was producing fake licences and created a clear audit trail in the collection of the levy. The receipt that is generated upon payment of insurance fees stipulates the type of insurance, the percentage due to the Traffic Safety Council and stamp duty, which is a ZIMRA tax. ZINARA subsequently distributes the money to the relevant authorities.
The Committee noted the following:
While the Traffic Safety Council Act as read with Statutory Instrument 45 of 2005 provides for the collection of insurance levy for third party insurance cover, there is no mechanism of censure for those insurance companies which default on remittance of the 12.5% levy;
There was a dearth of regular monitoring of the insurance industry to ensure that all the players in the industry are legitimate, registered insurance companies who are fulfilling their statutory obligations;
Computerisation of the collection of the 12.5% motor levy has seen a phenomenal rise in revenue to the Traffic Safety Council and the fiscus and contributed significantly to domestic resource mobilisation through tightening of systemic loopholes in revenue generation;
The insurance companies owe TSCZ millions of dollars in unfulfilled remittances as shown by their delinquent behaviour before the computerisation of the issuance of third party insurance by ZINARA. This gives credence to the notion that ZINARA and ICZ take over this task to enhance revenue collection and its subsequent use.
The Committee recommends the following:
While the revenue collection system has been computerised and inefficiencies eliminated, compliance is still to reach 100%. Therefore, Statutory Instrument 45 of 2005 should be amended at the earliest possible convenience to include punitive measures for those insurance companies which are not complying with the law;
There is need for regular monitoring of the insurance industry by (ICZ) to ensure that all players in the industry are registered and compliant with national laws. Quarterly monitoring exercises would foster a more vibrant insurance sector;
The entire transport management system needs to be computerised to ensure that Insurance Council of Zimbabwe, ZINARA, CVR, RMT, Police and the Ministry’s processes speak to each other and curb any
revenue loopholes in the system by end of November 2017.
On the evidence of the phenomenal upsurge in revenue collection and accountability for the same, ZINARA and the Insurance Council of Zimbabwe (ICZ) must be given the sole mandate of collection and distribution of the third party insurance for Public Service vehicles as well as the compensation of insured motorists in the event of an accident by November 2017.
In order to enhance domestic resource mobilisation through efficient revenue collection, all other insurances- whether comprehensive, passenger insurance or otherwise- must be paid and remitted electronically through the same arrangement initiated by ZINARA. This will also enhance accountability and increase the chances of compensation for affected parties by November 2017.
The Committee further recommends that all insurance payments made at all ports of entry by foreign vehicles, must be administered by
ZINARA with immediate effect.
Last but not least, of the 12.5% remittances to TSCZ, 4,5% must be immediately ceded to ZINARA for the establishment of accident victims stabilisation centres at all toll gates, in order to save lives and stabilise road accident victims within the first hour after the accident happens. This hour is the critical hour that can determine whether 70% of all injured road traffic accident victims will live or die.
Hon. Speaker, there are two ways to be fooled. One is to believe what is not true and one is to refuse to believe what is true. The numbers speak for themselves, and your Committee has chosen to believe in what is true. Automation of our processes is the way to go if we are to raise the revenue that our great nation needs through domestic resource mobilisation. The urgency of automation cannot be overemphasised. In doing so, however, we must be wary of the warning sounded by none other than Bill Gates himself who said, “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” Apart from technological aspects, our systems should always have the human value. *HON. MANGWENDE: Thank you Hon. Speaker Sir. I want to
support the motion by saying we encourage all third party insurance companies to pay 12% to the Traffic Safety Council. This is because this money is helpful towards all the accidents that are occurring. The money will be channelled towards awareness campaigns, the Highway Code, road signs and blood transfusion services. Most people are losing blood because a lot of accidents are taking place these days. So if the insurance companies pay these monies to the Traffic Safety Council, that money will be helpful towards blood transfusion because many people fail to access the service.
The 12% third party insurance being paid was not adequately paid, so we are encouraging all those responsible for paying the third party insurance to pay up their subscriptions so that it goes towards a lot of things such as fencing the roads to prevent stray animals from passing through the roads in order to avoid accidents as this is causing a lot of accidents. For example Shangani in Bulawayo, the place is fenced and there are less accidents occurring in that place. I hope many roads could also be fenced like that but this can only be a reality if the 12% third party insurance cover is paid by the insurance companies to the Traffic Safety Council. If this is not done, nothing can be effected. So, we strongly encourage that this be done.
There are sensitisation programmes being done in schools to sensitise children when they are still young, what is called ‘catch them young.’ This will allow the children to have defensive driving so that accidents are limited. We encourage these insurance companies to remit money to the Traffic Safety Council so that it is put to good use. I do not have much to say for now. Thank you Mr. Speaker Sir.
HON. RUNGANI: I move that the debate do now adjourn.
HON. NDUNA: I second.
Motion put and agreed to.
Debate to resume: Wednesday, 7th February, 2018.
On the motion of HON. RUNGANI seconded by HON.
KWARAMBA, the House adjourned at Four o’clock p.m.