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NATIONAL ASSEMBLY HANSARD 20 December 2016 43-23

PARLIAMENT OF ZIMBABWE

Tuesday, 20^th December, 2016

The National Assembly met at a Quarter-past Two O’clock p.m.

PRAYERS

(THE HON. DEPUTY SPEAKER in the Chair)

ANNOUNCEMENT BY THE HON. DEPUTY SPEAKER

SWEARING IN OF A NEW MEMBER

THE HON. DEPUTY SPEAKER:  On the 16^th of December, 2016,

Parliament received communication from the Zimbabwe Electoral Commission on the election of the following member of ZANU PF party as member of the National Assembly with effect from 27^th November, 2016,

Hon. Nokuthula Matsikenyere representing Chimanimani West Constituency.

Section 128 (1) of the Constitution of Zimbabwe provides that before a Member of Parliament takes his or her seat in Parliament, the member must take the Oath of a Member of Parliament in the form set out in the Third Schedule.  Section 128(2) states that the oath must be taken before the Clerk of Parliament.

I therefore call upon the Clerk of Parliament to administer the oath of a

Member of Parliament to Hon. Nokuthula Matsikenyere.

NEW MEMBER SWORN

HON. NOKUTHULA MATSIKENYERE subscribed to the Oath of Loyalty as required by the Law and took her seat – [HON. MEMBERS: Hear, hear.] –

MOTION

BUSINESS OF THE HOUSE

HON. RUNGANI: I move that Orders of the Day Numbers 1 to 9 be stood over until the rest of the Orders of the Day have been disposed of.

HON. MUKWANGWARIWA: I second.

Motion put and agreed to.

MOTION

PRESIDENTIAL SPEECH: DEBATE ON ADDRESS

Tenth Order read: Adjourned debate on motion in reply to the

Presidential Speech.

Question again proposed.

HON. RUNGANI:  I move that the debate do now adjourn.

HON. MUKWANGWARIWA: I second.

Motion put and agreed to.

Debate to resume: Wednesday, 21^st December, 2016.

MOTION

BUSINESS OF THE HOUSE

HON. RUNGANI: I move that Order of the Day Number 11 be stood over until the rest of the Orders of the Day have been disposed of.

HON. MUKWANGWARIWA: I second.

Motion put and agreed to.

MOTION

BUSINESS OF THE HOUSE

HON. RUNGANI:  Madam Speaker, I move that Orders of the Day, Numbers 12 and 13, be stood over until the rest of the Orders of the Day have been disposed of.

HON. MUKWANGWARIWA:  I second.

Motion put and agreed to.

*HON. CHINOTIMBA:  On a point of order Madam Speaker.

THE DEPUTY SPEAKER: What is your point of order?

*HON. CHINOTIMBA: My point of order is that may bethe

Hon.  Minister Chinamasa is still putting his documents in order.

THE DEPUTY SPEAKER:  Hon. Chinotimba, you are out of

order.

MOTION

FIRST REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON

THE FINDINGS BY THE AUDITOR GENERAL ON THE 2014 AND 2015 APPROPRIATION ACCOUNTS FOR THE MINISTRY OF

INDUSTRY AND COMMERCE AND FUNDS ACCOUNTS

HON. MPARIWA:  I move the motion standing in my name that

this House takes note of the First Report of the Public Accounts

Committee on the findings by the Auditor General on the 2014 and 2015

Appropriation Accounts for the Ministry of Industry and Commerce and

Funds Accounts under its purview. (S.C. 24, 2016).

HON. MARUMAHOKO:  I second.

HON. MPARIWA: 

1.0     INTRODUCTION

The Public Accounts Committee examined the Ministry of

Industry and Commerce on the findings of the Auditor General on the Appropriation accounts for years ending December 31, 2014 and 2015 and the Trade Measures and the Standards Association Funds for the years ending December 2013 and 2014. The two Funds are administered by the Ministry of Industry and Commerce. The Standards Development Fund was established in terms of the Standards Development Fund Act [Chapter14: 19] for the development and promotion of standardization and quality control of commodities and services. The Trade Measures Fund was established under the Trade Measures Act [Chapter 14: 23] for the development and maintenance of legal metrology services to industry and commerce and to ensure conformity with standards and requirements prescribed by international bodies.

It is of great concern to the Committee that the Ministry’s

Appropriation and Fund Accounts continued to receive qualified opinions. This shows that the Accounting Officer is not taking       Audit processes seriously. Accounts for the Funds are lagging behind in clear violation of governing statutes. The Committee bemoaned the lack of specific sanctions where officials fail to perform certain responsibilities. This seems to perpetuate a culture of poor performance.

2.0    OBJECTIVES OF THE ENQUIRY

Section 299 of the Constitution of Zimbabwe Amendment No. 20 of 2013 states as follows: Parliament must monitor and oversee expenditure by the State and all Commissions and institutions and agencies of Government at every level, including statutory bodies, Government controlled entities, provincial and metropolitan councils and local authorities, in order to ensure that-

• all revenue is accounted for;
• all expenditure has been properly incurred; and
• any limits and conditions on appropriations have been observed.

Section 309 (2) (a) of the Constitution provides for the functions of the Auditor General as follows: “to audit the accounts, financial systems and financial management of all departments, institutions and agencies of Government, all  provincial and metropolitan councils and all local authorities”.

National Assembly Standing Order No. 16 mandates the Public Accounts Committee to examine the sums granted by Parliament to meet public expenditure and such other accounts laid before the National Assembly.

It is therefore, the duty of the Public Accounts Committee to report whether such public funds have been managed and expended as authorised by Parliament. In this context, the Committee examined the audited Appropriation and Fund Accounts for the Ministry of Industry and Commerce as reported by the Auditor General in her Annual Report for the financial years ended December, 31, 2014 and 2015.

3.0 METHODOLOGY

The Committee held an oral evidence session with Mrs Shonhiwa, the Permanent Secretary and Accounting Officer for Ministry of Industry and Commerce. It requested written evidence which was then analysed and further this basis of the Report.

• FINDIN`GS AND OBSERVATIONS BY THE

COMMITTEE

• APPROPRIATION ACCOUNTS FOR THE MINISTRY

 OF INDUSTRY AND COMMERCE FOR THE YEARS ENDED

DECEMBER 31, 2014 AND 2015

4.1.1 Direct Payments made by Treasury on behalf of Ministry

(2014)

During the year 2014, Treasury made direct payments totaling $196 193 to service providers on behalf of the Ministry. In 2013, the figure for direct payments stood at $955 973. The Ministry was advised by Treasury to obtain receipts from the respective service providers confirming payments made. The Audit found out that the Ministry did not have receipts supporting the payments and there were no reconciliations showing the invoices paid and the actual amount owed to each service provider. There was also a variance of $32 538 between the figure provided by Treasury and the figure shown on the Public Finance Management System (PFMS).

In the absence of reconciliations and confirmations of payments made to service providers, it will be difficult to establish whether payments were made against existing debts and also monitor the

Ministry’s obligations to service providers.

The Ministry acknowledged the audit observation and informed the Committee that corrective action had since been taken. The missing receipts were reported to have been with Treasury at the time of audit. The Ministry also highlighted that TelOne took time to submit confirmations for payments, hence the delay in carrying out reconciliations. The Ministry submitted all the supporting

documentation for the direct payments and the observation has since been addressed. Going forward, the Ministry indicated that there is now in place a register for commitments to all service providers. The observation was therefore addressed to the Committee’s satisfaction.

4.1.2 Public Financial Assets (2014)

During the 2013 Audit, it was observed that the Ministry issued loans to Zimbabwe Steel Company (ZISCO) and Industrial Development Corporation (IDC) amounting to $12 658 331 without signing loan agreements. In 2014, the Ministry further issued $11 663 363 to the same parastatals again without loan agreements. In the absence of loan agreements, the legality of the advances could not be ascertained.

The Ministry informed the Committee that ZISCO Steel and IDC had contracted loans from the China Exim Bank and experienced challenges in servicing the loans. The Ministry then approached Treasury which in turn paid the amounts in question to the Bank in 2013 and 2014 on behalf of the parastatals. The Ministry indicated that loan agreements between the Ministry and the respective parastatals were prepared following the audit observation. Signed copies of the loan agreements were availed for audit inspection and as a result, the audit observation has been cleared.

The Committee however, noted with concern the payment of over

$24 million on behalf of ZISCO Steel and IDC without the corresponding record of the liability in national accounts reflecting these amounts owing to central government. It therefore, makes it difficult for

Treasury to adequately record the full extent of sums owing to Government by parastatals.

4.1.3 Absence of a properly constituted Audit Committee

(2014)

Section 84 of the Public Finance Management Act (PFMA) [Chapter 22:19] provides for the establishment of Audit Committees whose responsibilities are to liaise with external audit, supervise internal audit, and review annual accounts and internal controls. The Ministry is commended for taking steps to establish an Audit Committee. However, the Committee was made up of Ministry’s employees contrary to the provisions of 84 of the Public Finance Management Act which stipulates that the majority of members should not be persons employed in the Ministry and the chairperson should not be a member of the Public

Service. Given, the current composition, the independence of the Audit Committee is compromised and the internal controls may not be adequately evaluated.

In response, Mrs. Shonhiwa, the Accounting Officer acknowledged the observation. She also advised that the existing Committee was an interim one, put in place as a stop gap measure to assist in the implementation of audit recommendations. Other Ministries were said to be in the same predicament. The Ministry indicated that it would continue to engage Treasury on the way forward regarding the setting up of the appropriate Audit Committee as provided for in Section 84 of the

PFMA and in that regard, a letter was written to Treasury on 14 July

2016.

The Committee noted with concern that seven years after the PFMA was enacted, Ministries have failed to establish Audit Committees in the absence of PFM Regulations instructing Ministries and other public entities on how to implement the provisions of the Act. In the absence of Audit Committees, Ministries have not been able to follow through the recommendations made by the Auditor General, hence the continued recurrence of issues.

4.1.3.1        The Committee recommends the Treasury should  immediately issue the necessary guidelines on the setting up of Audit Committees by Ministries.

4.1.4 Absence of a Risk Management Policy (2014)

In violation of Section 44 of the PFMA, the Ministry did not have a documented and approved risk management policy. As a result, risk assessments were not carried out. The Act requires Ministries and other public entities to establish and maintain an effective, efficient and transparent system of risk management framework. This will assist the Ministry in identifying and responding to material risks effectively.

The Ministry acknowledged the audit observation and indicated that the Risk Management was now in pace. It also appointed a Risk

Champion responsible for overseeing the implementation of the policy.

It was working on a Fraud Risk Policy which is part of the Risk Management Policy. The Committee expressed its satisfaction that the

Ministry had taken appropriate action to address the audit observation.

4.1.5 Management of Government Programmes- Milano –Expo

Contract (2015)

Zimbabwe accepted an invitation from the Italian Government to participate at the Milano-Expo 2015, a universal exhibition organised by

Italy. It was held on the theme ‘Feeding the Planet, Energy for Life’ and dealt with the right to health, safe and sufficient nutrition for the entire planet, environmental, social and economic sustainability of the food chain as well as the safeguarding of food taste and culture.

The Ministry awarded a contract for €50,400 (US$56 952) on May 6, 2015, for kitchen management services and catering of food and beverage to Jihad El Badaoui (Jihad) for the Milano-Expo. The contract was made without following the tender procedures in contravention of the Procurement Regulations, Statutory Instrument 171 of 2002. Without going through the tender procedures, it could not be ascertained whether the Ministry got fair value from the contract. The service provider could inflate prices in the absence of competitive bidding resulting in a drain on the Ministry’s resources.

Furthermore, the revenue received return that was submitted for audit indicated that revenue amounting to $49 980 (€36 740) was realised from sales at the Milano-Expo. However, the Ministry did not avail any supporting documentation in the form of receipts, cashbooks or registers for sales made and expenditure incurred in Italy on this programme. In the absence of financial records, transparency and accountability in the use of public resources may be compromised and funds may be misappropriated.

Mrs. Shonhiwa acknowledged the observation and highlighted difficulties the Ministry encountered in securing a service provider given the strict Italian rules and regulations. The Ministry brought to the attention of the State Procurement Board the peculiarities in terms of engaging a service provider at the expo. The cash receipts were said to have been retained by the Business Partner for payment of taxes to the Italian Government in accordance with the Italian Tax Regulations.

                                4.1.5.1        The Committee recommends that in future, the

Ministry should obtain the necessary approvals to vary procurement rules and regulations and proper books of accounts should be maintained at all times to ensure full accountability of public resources.

4.1.6 Poor Management of Fuel (2005)

For the second year running, the audit noted a laxity in fuel management. On March 10, 2015, a payment of $4 998 was made for the purchase of 3 660 litres of diesel from Redan Petroleum and on

August 17, 2015, a payment of $9 996 was also made for the purchase of 7 460 litres of diesel. No records of these purchases were made in the fuel register although the bank statement showed that the money had been transferred into the supplier’s account on March 19 and August 24, 2015 respectively. Furthermore, there was no evidence that the fuel was received by the Ministry as receipts from suppliers were not produced for audit. Follow ups on progress of the requisition were not done.

The Ministry informed the Committee that the outstanding 3 660 litres of diesel worth US$4 998 procured on March 10, 2015 was resolved and the coupons were collected and recorded in the register. Evidence in that regard was availed to the Committee. With regards to the 7 460 litres of diesel worth US$9 960.40 procured on August 17,

2015, the Ministry indicated that the coupons were collected on August 25, 2015. The 7 540 litres of diesel recorded in the register was attributed to the amount in question and the variance of excess 100 litres was ascribed to the change in price. The Ministry assured the Committee that tight control measures have been taken to guard against recurrence in future.

                                4.1.6.1        The Committee recommends that the Ministry

should obtain confirmations from Redan Petroleum to facilitate reconciliations with the 7 560 litres of diesel recorded in the register by December, 31, 2016.

4.2    STANDARD DEVELOPMENT FUND, 2013 AND 2014

4.2.1 Levy Income (2013)

Section 3 of the Standards Development Fund Act [Chapter 14:19] stipulates that the Minister may, by Statutory Instrument, impose a levy on such class or description of employers as may be specified by notice. The audit observed that the Fund had no comprehensive list of employers upon which the levy is imposed. The completeness and accuracy of the levy income figure of $12 846 938 disclosed in the financial statements could not be validated.

The Ministry indicated that the Fund employer’s list is compiled from the inspectors’ reports. The inspectors make physical visits to employers where employees are determined, registered or identified.

The employers’ list forms the database for the Standards Development

Fund. The Ministry was in the process of computerising the employers’ list as previously it maintained manual records. Evidence availed to the Committee showed that the client database is now in place and being updated regularly and as such the observation had been cleared to the

Committee’s satisfaction.

4.2.2 Poor recovery of debts (2014)

The Audit observed an outstanding debt amounting to $$677 122 and a total amount of $676 306 (99.8%) had been outstanding for more than two years, with some balances back dating to 2009. This shows that the Ministry had serious challenges in recovering of debts and risk loss of revenue for the Fund.

The Ministry acknowledged the observation and highlighted that the figure of $677 122 was mostly made up of debts from local authorities which included rural district councils. Part of the debt was for Mutare Border Timbers which was under judicial management. Intense follow ups were done and reaped very few positive responses. Few of the local authorities made payment plans. Frantic efforts were still being done to clear the outstanding debts but due to the prevailing economic challenges, it has been fruitless. As regards the Border Timbers’ debt, the Fund had attended creditors meetings where debts were ranked and are waiting for the court’s decision. Evidence availed to the Committee showed that outstanding levy debtors were handed over to the Civil Division through a letter written on July 20, 2016. A letter was also sent to the Ministry of Local Government, Public Works and National Housing on July 11, 2016 seeking assistance in the recovery of the outstanding debts from Local Authorities.

4.2.2.1       Recommendation

In relation to the amount owed by Mutare Border Timbers, the Ministry should vigorously pursue the debt with the judicial manager and bring the matter to closure by 30^th April 2017.

4.2.2.2 In view of the challenges faced by local authorities,

Government should closely look at the objects of the Fund vis-à-vis the challenges facing local authorities and may consider taking over the debt.

4.2.3 Unidentified Deposits (2013)

The audit observed that the Fund was taking long to clear the figure for ‘Unidentified Deposits’ which amounted to $937 423 as at

December 31, 2013. These were direct deposits in the Fund’s bank account for levy fees but could not be directly linked to specific clients. By the time of concluding the audit, only $807 427 of this amount had been cleared and receipted. This will result in debtors being misstated.

The Ministry informed the Committee that unidentified deposits arise from deposits that have insufficient details for issuance of receipts despite the fact that the Fund has customized deposit slips. These deposit slips were now available at all CBZ branches countrywide. The $937 423 unidentified deposits for 2013 were cleared. However, the issue recurs every year but the figure for the unidentified deposits has been reduced significantly. The Ministry pointed out that the Bank had indicated that they have challenges with RTGS transfers made through other banks and the process takes a bit of time since most of the deposits will be in archives.

4.2.3.1        Though the unidentified deposits have been cleared, going forward the Ministry should ensure that any unidentified deposits are cleared timeously.

4.2.4 Interest on Investments (2013)

Section 13 (2) of the Standards Development Fund Act [Chapter 14:19] states that any excess funds not immediately required for the purposes of the Fund may be invested after approval by the Minister responsible for Finance. Contrary to this provision, there was no evidence that the Ministry had taken steps to invest surplus funds of $6 647 649 that were in the bank account during the year. Consequently, the Fund had a nil balance on the ‘interest on investments’ item compared to the $588 657 that was received in the previous year.

The Ministry acknowledged the observation. The Permanent Secretary indicated that the authority to invest surplus funds is granted by Treasury and of late, Treasury has not been granting such authority due to pressing Government commitments which resulted in Treasury recalling some funds to meet expenditures hence the nil balance for interest on investment in 2013.

In the Committee’s view, funds are normally set for a specific purpose. One wonders whether the recalling of revenue generated under a Fund by Treasury would really justify the existence of such a Fund. Surplus funds of such magnitude might be an indication that the levy could be unjustifiably higher and at the end increase the costs of doing business.

4.2.4.1 The Committee recommends that Treasury going forward should allow part of the excess funds to be invested to allow the fund to earn more income in the form of interests from invested funds.

4.2.42        In view of challenges facing local authorities in terms of paying the levies under the Fund, Government should consider reviewing the levy levels to ensure affordability beginning the 2017 financial year.

4.3    TRADE MEASURES FUND 2010 TO 2014

4.3.1 Absence of Financial Records

For four consecutive years, the Fund did not maintain books of accounts such as cashbooks, ledgers and registers in which financial transactions are recorded. This was in violation of Section 35 (6) (a) of the PFMA. This is despite the fact that the Fund collected substantial amounts, for instance, in 2013 the total revenue was $132 213 against a total expenditure of $160 448; in 2014 the collections substantially increased to $230 125 while expenditure stood at $243 441 and in 2014 again collections increased to $267 226 and expenditure was $369 241. Financial statements were prepared from bank statements, subcollectors’ schedules and payment vouchers. The audit could not confirm whether all financial transactions were accounted for as payment vouchers were not numbered and monthly bank reconciliations were not performed.

Furthermore, the financial statements disclosed a suspense account with a balance of $33 840 which remained uncleared at the time of concluding the audit. As a result, the audit was not able to establish whether the financial statements were free from material misstatements.

In such circumstances, fraudulent activities cannot be ruled out.

The Ministry indicated that it did not have personnel with accounting skills at the regional offices, and as a result, it relied on assistant clerks who in some cases recorded debtors incorrectly and they had to redo all the accounts for the years. The Committee is pleased to note that accounting records were now in place. However, the suspense account remained unresolved.

4.3.1.1        The Committee recommends that the Ministry investigate and clear the suspense account by December, 31, 2016.

4.3.2 Procurement - Goods and Services not delivered

Since 2012, the Auditor General has from year to year raised concern over delays by the Fund in receiving goods and services from suppliers who would have been paid substantial amounts of money as deposits. There was no evidence that Fund officials followed up on outstanding orders. Applied Weighing Scales failed to meet delivery, installation and commission dates of four (4) weigh bridges in Harare, Gweru, Mutare and Masvingo at a total cost of $496 340. The work was supposed to have been completed by September 30, 2014.  As at September 14, 2015, the weigh bridges had not been delivered despite the fact that a deposit of $312 694 was paid in March 2013.

The Ministry admitted with regret that a considerable amount was paid to the contractor without a Bank guarantee and that no deliveries were made to date. Efforts to follow up on the deliveries with the contractor were fruitless. The Ministry did not satisfactorily explain why public funds of such magnitude were committed without adequate security. The Ministry indicated that it handed over the issue to the

Attorney General’s Civil Division for legal action in order to recover the deposit with interest thereof.

The Committee noted with concern that no due diligence was done in the procurement process hence a case of potential loss of public funds.

4.3.2.1        The Committee recommends that disciplinary action be instituted against officials who handled the transaction by

December, 31, 2016. It also recommends that the Ministry should institute criminal proceedings against the Applied Weighing Scale

Company for fleecing Government resources by 31 December, 2016.

4.3.3 Absence of Accounting Officer’s Instructions

The Audit observed that the Fund was operating without

Accounting Officer’s Instructions contrary to the provisions of Treasury Instructions 0706 which stipulates that the Accounting Officer should issue detailed instructions governing the conduct of financial business and control of public monies and property for which they are responsible. The Ministry indicated that it had finalised the draft

Accounting Officer’s Manual and has since forwarded it to Treasury for approval. The Committee noted that the Ministry had taken corrective action and the observation has therefore, been addressed.

4.3.4 Debtors

The Audit observed that the Fund advanced $61 109 to the Parent Ministry during the year 2009 to use on expenditure ordinarily met under the Appropriation account. No documentation was produced as authority for this advance. The amount was supposed to be refunded when releases were received from Treasury. However, the Ministry in

2016 is yet to reimburse the money.

The Permanent Secretary informed the Committee that investigation revealed that the amount was overstated as it included $30 000 payments from Bid Funds. The Ministry had requested authority from Treasury to utilise the account for the Fund.  The balance of $15 000 was used for payment of G15 subscriptions and they were making efforts to reimburse the Fund.

The Committee noted with concern another violation of a Fund Constitution whereby the Ministry resorted to Fund revenue to support expenditures ordinary funded under the Appropriation account. There is a risk that Fund objectives will not be met as funds are utilised for unintended purposes.

4.3.4.1        The Committee recommends that the Ministry should submit evidence of the alleged errors, overstated amount of the debt and Treasury authority to utilise funds under the Fund by 31 December, 2016, failure to do so, the Ministry should reimburse the Fund by the same date.

5.0 CONCLUSION

The Committee expressed deep concern on the reluctance of the Ministry to be up to date in terms of preparing and submission of accounts for Funds for purposes of auditing. In 2015, the Ministry was still reporting on 2013 and 2014 Accounts for the two Funds, namely the Standard Development Fund and the Trade Measures Fund. This is a serious violation of the PFMA considering that the Funds are collecting considerable amounts of money. For instance, the Standard

Development Fund had in 2013 a total revenue of $13 239 369 against expenditure of $20 310 472, in 2014 the revenue stood at $14 271 437 and expenditure of $14 352 941 and in 2014 had a total revenue of $14 543 662 while expenditure stood at $9 696 926.  The Ministry also did not properly manage public resources considering payments made for undelivered weighbridges and lack of follow up thereof. The Committee concludes that the accounting officer’s performance should be assessed within this context and given that the Ministry is key in revitalising the economy, Government may need to revisit the employment contract for the accounting officer. Public officials charged with the responsibility of managing public funds should exhibit high level of competencies in the execution of this important mandate.

HON. MARUMAHOKO: Thank you Madam Speaker.  The

report that has been presented to the House by the Chairperson of the Public Accounts Portfolio Committee, the observations that we have heard her expressing here are almost observations that are always reported by the Committee from every Ministry without any change year in, year out.  If you look at the way the Ministry of Industry’s accounts were run, you may try to blame the Ministry but it was the system that was introduced by the whole Government, that of direct payment to the debtors.  It is very difficult for anyone to maintain the books when payment is being made direct by the Ministry of Finance and Economic Development.  It is very difficult to follow the events, very difficult to follow all the accounts if payments are made by Treasury.

HON. MUTSEYAMI:  On a point of order Madam Speaker.  My

point of order is very precise and short.  In the gallery we have a Chief and he has not yet been recognised.  So, as MDC we need to recognise the Chief.

Hon. Members started clapping  and ululating in respect of the

Chief.

          THE TEMPORARY SPEAKER:  Thank you very much Hon.

Mutseyami, it has been noted but we were still waiting for the name from the Public Relations Office.

HON. MARUMAHOKO:  Madam Speaker, for so many times,

the Public Account Committee has reported that Ministries are not taking seriously the reports from the Auditor General, that is the qualified accounts.  We have reported time and again and no action has been taken.  No reprimands have been proffered to the Ministries, it is always silent.  I think it is important that all those Ministries or the Permanent Secretaries that reported to have not taken note of the disqualification of their accounts; some action be taken so that this should not recur time and again.

Madam Speaker, you have heard of some unidentified deposits, that is a very serious observation.  Unidentified receipts or monies that have been deposited may end up as fraud because nobody knows where this money came from and nobody knows what to do with the money but the money has been deposited, where did it come from.  It has been very difficult for the Ministry of Industry and Commerce to trace the money up to the time we produced this report, none of the money was identified, where it came from, what it meant and what it is supposed to be used for.  Those are very serious anomalies in accounts.  Ministries should take very seriously these reports from the Auditor General.  All in all, I need to thank our Chairperson for a job well done. This is a report that the House should really look into and then adopt it.  I thank you.

HON. P. D. SIBANDA:  On a point of order, I wanted to find; there is an important development that took place in the country last week in which the Ministry of Primary and Secondary Education introduced a new system of online applications for boarding places.

THE TEMPORARY SPEAKER:  Order, order, Hon. Sibanda we have Question and Answer tomorrow and you will be able to ask the Minister himself because right now there is no Minister to respond on that issue.

HON. P. D. SIBANDA: I am not asking a question,  I actually wanted to suggest in my point of order that instead of merely answering to questions, the Hon. Minister should maybe give a Ministerial

Statement tomorrow so that Parliament…

THE TEMPORARY SPEAKER:  You can only request that

when the Minister is available.  It is noted.

HON. MLISWA:  Thank you for giving me the opportunity to first of all congratulate ZANU PF for having a peaceful but non productive conference and to also welcome Hon. Shamu into the Central Committee.

THE TEMPORARY SPEAKER: I think Hon. Members, we

should take this House seriously.

HON. NDUNA:  Thank you very much Madam Speaker for allowing me to add my voice to the report presented by Hon. Mpariwa and seconded by Hon. Marumahoko.  Madam Speaker, there are few issues that I need to touch on that were brought up by this report in particular, the relationships where the procurement Committee is made up of subordinates in  an organisation.  I also believe that Madam Shonhiwa said in her defence that what was currently obtaining in that Ministry was across the board in all other Ministries.

Madam Speaker, I want to quickly say two wrongs do not make a right.  Ministries as they are independent entities and should not relate to each other when it comes to delinquencies and counter delinquencies and when it comes to a skewed modus operandi and when it comes to a flawed way of dealing with economic issues.  Madam Speaker, as we are guided by the Public Finance Management Act as Hon. Mpariwa has alluded to was in place more than seven years ago.  We need to adhere to the dictates and principles of the same.

What comes to mind immediately is the haphazard nature of giving loans and counter loans by the Ministry of Industry and Commerce without any loan agreements.  I come here to the podium very aware of the fact that the Industry and Commerce Ministry is about to release US$2 million to the Judicial Manager of David Whitehead Textiles.  If this loan comes through Parliament as ratification for a loan agreement, it will be seen through the thin veil of economic machination by that judicial manager because currently the debts of David Whitehead stand at plus or minus US$15 million to 20 million.  The judicial manager will have Ministry of Industry and Commerce believe that David Whitehead can be resuscitated by mere injection of US$2 million against debts that amount to US$20 million.  If that loan agreement comes for ratification to Parliament, we will obviously, effectively and efficiently as the National Assembly, Members of Parliament, particularly myself and a few other Honourable Members, including Hon. Chibaya who comes from Gweru where David Whitehead is resident; we are going to see that no amount of US$2 million can resuscitate David Whitehead. However, if they continue on their archaic, moribund and historic way of dealing with modern day issues, where they just ratify and give each other loans which are not ratified by Parliament as agreements, they are going to get this US$2 million stolen and pilfered by the Judicial Manager who, in my view and those Hon. Members like Hon. Phiri who also resides in Kadoma where David Whitehead is also currently resident; believe that turning credit into equity is the only way to save David Whitehead. No amount of money in US$2 million form, coming from Industry and Commerce can resuscitate, rejuvenate and rehabilitate David Whitehead in the form it is now.

Madam Speaker, I say this parallel to the issuance and procurement of fuel that was brought up here without going through loan agreements and counter loan agreements.  Such inecestus and flawed ways mechanisms of operation in a Government entity can only get us back 40 or 50 years back, where all of us dealing with issues of BBC or born before computers, historic ways of dealing with modern day economic issues.  We need to adhere to Public Finance and Management Act.  It has been brought up in this modern day technology oriented year to address economic issues and this should cuts across all fuel procurement departments.  I also propose that it all cuts across the portfolio committee that I chair, Transport and Infrastructure

Development Committee. I speak like that aware and cognisant of that it is a multi-billion dollar procurement process oriented parastatal and

Ministry which speaks to transport and infrastructure development.

Madam Speaker, I also need to say what was brought up as an expenditure of US$160 000 against revenue of US$132 000.  It can only speak to CCN in this context, Corruption, Collusion and Nepotism.  You cannot have an expenditure of US$160 000, where your revenue is US$132 000 and produce receipts that speak to a revenue that is ballooned, it can only mean there was corruption.  To cover that, receipts were originated that had effect of ballooning the expenditure against the revenue that was so minimal.

As I conclude, I need to say such reports should find their day where any delinquencies are sanctioned.  There is a sanction of some sort against any delinquent director or office bearer so that the Committee which is a post audit committee can then know that their work is cut out for them.  Whatever it is that they bring here as reports to audit reports can be adhere to and action can be taken, otherwise they will be found barking all the time in Parliament but to no resolve.  I speak like this because this is your committee of Parliament, if you do not call for sanctions of some sort to be imposed on those that are found on the wrong side of the law; you are akin to removing and destroying that committee and you remove the impetus, the zeal that they have in terms of their operation.

Madam Speaker, it is time you put your foot down and call for action on reports such as these ones.  This House should adhere to a clarion call that I am making today that no amount of hoodwinking and pulling wool over this House and over everybody in the cotton industry by the judicial Manager at David Whitehead is going to resuscitate David Whitehead in its present state, but only turning credit into equity and removing one office from Judicial Management and giving back the company to its former workers and former retrenches…

THE ACTING SPEAKER: I want to remind Hon. Members that

you can whisper in the House but not shout so can Hon. Nduna be heard in silence.

HON. NDUNA:  If credit has been turned into equity only then can David Whitehead attract investors to partner it so that it can be rehabilitated and rejuvenated.  The equipment that currently is housed at David Whitehead is both becoming moribund, it is old fashioned and can no longer take modern day operations to beneficiate our cotton and raw material in order to have a final product exported from Zimbabwe.

Government has taken a very strong position to give to cotton farmers three seasons worth of free input. We can only support and complement those efforts of also taking over the US$68 million COTTCO debt by sorting out the beneficiation chain of David Whitehead.  This is by removal of the Judicial Manager, turning back credit into equity and attracting investment.

Madam Speaker, I say this aware that an AGM was held quite recently and the judicial Manager really said in that AGM, he is running to the Minister of Industry and Commerce to get US$2 million.   By the effort of this debate and by the fact that I stand here today, that should quickly close the door to that machination and remove that Judicial

Manager from his current entrenched position and turn credit of David Whitehead into equity in order to attract the much needed economic investment to certainly emancipate the formally marginalized black majority and beneficiate the cotton industry to its total emancipation.

Thank you.

HON. MARIDADI: Thank you Madam Speaker.  I wish to thank the Portfolio Committee Chairperson on Public Accounts for the Report and also the seconder of the Report.  My contribution is very short because the facts of the matter have been laid out by the Portfolio Committee Chairperson.  The issue I want to raise is that year in year out, we have the Portfolio Committee Chairperson on Public Accounts presenting reports to this Parliament; reports that speak to corruption in Government, corruption in Ministries and incompetence by Government employees, especially Accounting Officers that is those in charge of ministries, like the permanent secretaries; but not a single permanent secretary has been censured or fired.

Mr. Speaker Sir, what is happening in the Ministry of Industry and Commerce is a reflection of what is happening in the country.  There is nothing that is happening in the Ministry that is not happening countrywide.  The issue that we must deal with in this country is the issue of corruption.  We have a fantastic legal framework to deal with corruption.  In case of finances, we have the Public Finance

Management Act which is enshrined in our Constitution.  It states how money that is appropriated to Ministries should be dealt with, how money should be accounted for and this is not happening.

Mr. Speaker Sir, all the accounting officers that have been summoned to the Portfolio Committee on Public Accounts have not lived up to the expectations of the Public Accounts Committee.  They failed the test and recommendations are made by the Public Accounts

Committee but these are ignored by Government, by the Executive.  Mr.

Speaker, there is need for political will in this country to deal with corruption.  The problem that we are having in this country is not the problem of David Whitehead – [HON. MEMBERS: Inaudible

interjections.] –

THE TEMPORARY SPEAKER (HON. MARUMAHOKO):

Order, order.   Hon. Members, the Speakers who have been here before me have pleaded with you to lower down your voices but no one is taking heed of that.  Please, this is the last warning before the axe falls on you.  You may continue Hon. Member.

HON. MARIDADI:  Thank you Mr. Speaker.  The problem that we have in this country, the Public Accounts Committee will continue to summon Ministries, continue to compile reports and will continue to present reports in this House.  What I have realised is that we could get a report by the public accounts committee from 2014 and just change the date and figures and the report will read the same.  It is a problem of incompetency, a problem of failure to account for money, a problem of giving loans to people who do not deserve them, loans that are never paid back to Government.  So, the problem that we have is institutional, it is not a problem of individuals that run Ministries.  It is not a problem of permanent secretaries.  It is an institutional problem because there is no political will in this country to deal with corruption.

There is not a single Ministry that has not been cited in the Auditor

General’s Report for corruption and there is not a single Minister who has not been cited for issues of corruption and yet there is not a single permanent secretary who has been taken to court and equally there is not a single Minister who has been taken to court for corruption.  We have an institution which is – [HON. MLISWA: Inaudible interjections.] –

THE TEMPORARY SPEAKER:  Order.  Hon. Mliswa, we are

in an hourable House.  If you want to debate, if you are excited, you wait for your turn.  We will give you the turn to debate but please, maintain your composure.  You may proceed.

HON. MARIDADI:  We have the institutional framework to deal with corruption.  We have ZACC which a creation of the Constitution.  The Auditor General’s Office is a creation of the Constitution.  The Auditor General’s Office audits ministries and Government institutions,

presents reports in this Parliament...

ANNOUNCEMENT BY THE SPEAKER

VISITORS IN THE SPEAKER’S GALLERY

THE TEMPORARY SPEAKER:  I would like to recognise in the Speaker’s Gallery, the presence of Chief Mutambara and Chief Muushwa from Manicaland Province.  You are most welcome.  You may proceed Hon. Member.  – [HON. MEMBERS: Hear, hear.] –

HON. MARIDADI:  Thank you.  Mr. Speaker, the institutional framework to deal with corruption in Zimbabwe is there.  The

Constitution is very clear on what should be done in cases of corruption but what is lacking in this country is the political will to deal with corruption.  I continue to come back to that, as long as somebody, somewhere makes a deliberate move to deal with corruption, Hon. Mpariwa as the Chairperson of the Portfolio Committee on Public Accounts will again come back in the coming season and present a similar report on issues of corruption that have not been dealt with.

Mr. Speaker, other jurisdictions like Kenya, when you are employing somebody who deals with public funds like permanent secretaries, the interviews are done in public and the CVs put in the public domain.  People scrutinise the CV and when interviews are done they are done in public.  Mr. Speaker, when this particular permanent secretary from the Ministry of Industry and Trade came to the Public Accounts Committee, after she had been questioned, one of the Members of Parliament asked her what she thought her performance was.  As members of the Portfolio Committee, we rated here performance at below five out of ten.  This is a person who is running a ministry which is responsible for the resuscitation of this economy and yet she performs below par.

Mr. Speaker, the problem that I see in this is that we have jobs for friends.  People are appointed on the basis of patronage, people are appointed on the basis of political affiliation and these are not necessarily people that are competent to do the job.  That is the problem that we have.  For as long as we do not take the issue of corruption seriously, we will come back to this House and talk about ministries not adhering to the Public Finance Management Act.

In conclusion Mr. Speaker, I want to make a call to the

Government of Zimbabwe especially, to the Chief Executive of the Government of Zimbabwe.  The State has three arms, the Legislature, the Judiciary and the Executive.  Each arm has specific functions and specific mandates.  Mr. Speaker, when Parliament has done its oversight role on ministries and comes to this House to present a report and make recommendations to the Government, the Government has not acted on those recommendations. Mr. Speaker, what remains is for me to say the

Head of State and Government and the Commander-in-Chief of the Defence Forces, President Mugabe, as the Chief Executive of this country, must now start making a move to deal with issues of corruption.

Mr. Speaker, in the just ended ZANU PF Conference, where all Ministers were there, some of the most corrupt people were accredited to sit in the same House with the Head of State and Government.  Some of the most corrupt people, some of them are actually on the wanted list of police but they were sitting there.  The level of impunity in this country is unbelievable – [HON. MEMBERS: Inaudible interjections.] –

THE TEMPORARY SPEAKER (HON. MARUMAHOKO):

Order, order please!

HON. HOLDER: Thank you Mr. Speaker. I was saying my point

of order is that Hon. James Maridadi did not attend that Conference. He cannot talk of something when he was not there. He was just watching and assuming. So, he must not mislead this House. – [HON. MLISWA:

Inaudible interjections.]- You were not there also Themba Mliswa.

THE TEMPORARY SPEAKER: Order, Hon. Mliswa, Order

Hon. Members! Hon. Mliswa this is my last warning to you. May you continue Hon. Member?

HON. MARIDADI: Mr. Speaker, I want to make it very clear. The reason I would follow the ZANU PF Conference on television from start to finish is very simple. ZANU PF is the governing party. The policies of Government are derived from a ruling party’s manifesto.

When ZANU PF goes to a Conference, what they agree at the Conference influences Government policy. It is for that reason Mr. Speaker that I can speak about the ZANU PF Conference. The reason

ZANU PF Conference was live on TV was for all of us to see. Mr.

Speaker, in conclusion...

THE TEMPORARY SPEAKER: Let us speak to the report Hon.

Member. What is your point of order Hon. Chinotimba?

*HON. CHINOTIMBA: Hon. Speaker, the Hon. Members are

discussing issues pertaining to ZANU PF, which was not mentioned by Hon. Mpariwa. ZANU PF is a ruling party so, they have a problem that they were beaten and now, they do not know what to say. They should refer to the issue of their defeat in the elections. What we have come here to present to the people is what should we do, and not about parties. When it comes to party issues, we defeated them just like what happened to Mrs. Clinton. So, let us talk about building the nation. Thank you.

          THE TEMPORARY SPEAKER: Order Hon. Members to my

left. Hon. Chinotimba, you have spoken but you were now lecturing.

You should be specific to your point of order.

*HON. MAONDERA: My point of order Mr. Speaker is very

simple. We want to hear this debate. Some of the points of orders being raised are just for show off because there is a new member.

*THE TEMPORARY SPEAKER: What is the excitement

about? Order Hon. Members, Order! I am talking to you Hon. Member.

There is no point of order because you have acted exactly like Hon.

Chinotimba.  Continue with your debate Hon. Maridadi.

HON. MARIDADI: Thank you Mr. Speaker. I think I must conclude my debate. I want to say we are getting into Christmas and we are getting into 2017. It is my sincere hope that getting into 2017, this Government gets serious dealing with issues of corruption and that when they deal with corruption, what we have been taught as Zimbabweans and the world over is that when a fish is rotting, it starts from the head. When you are dealing with corruption in Ministries, you deal with the Minister. When a Minister is stealing and is not arrested, I do not see why a Permanent Secretary should not steal because they know they will not be arrested. I also do not see how junior officers would also not steal.

What I can tell you Mr. Speaker is that if we arrest four or five Ministers, the problem of corruption in Zimbabwe will be over. We only need to arrest four or five Ministers and fortunately, Hon. Chinamasa is not one of them, but he knows his colleagues who are corrupt. We arrest four or five Ministers and the problem of corruption in Zimbabwe is over and Hon. Chinamasa’s job will be easier. Of all the people in this Government, he is the most sincere, honest and hence the poorest. There are people in this Government who were drivers in 1998. Their only qualification on their CV was that I am 19 years old and I have a Class 4

Driver’s licence. Simply driving vehicles, but today, we see them building the most expensive houses – where did they get the money from?

I am not referring to anyone by name. There are people that were high school teachers in 2002. Today they are Ministers and they have the most expensive houses in Zimbabwe - where did they get those houses?

Mr. Speaker, Government Ministers earn less than $4 000.00 a month. Where do they get that money to build all those houses? We must get serious when dealing with corruption. Getting into 2017, we must arrest a few people and let us allow the Zimbabwe Anti-Corruption Commission to function. I thank you.

*HON. MAPIKI: Thank you Mr. Speaker. Firstly, I would want to thank Hon. Mpariwa, the Chairperson of the Public Accounts Committee for the Report which is to the point. The biggest point we found is that these books that are coming, it has been happening since 2012 up to now. So, the reports that we are tabling should look back because if we look at how the system was in Government dealings, it did not start now. If you look at some of the issues involving money, like the targeted funds which was directed to the Ministry of Health, the Ministry which was there, the Ministry of Finance which was headed by Hon. Biti used to transfer money targeted for hospitals.

If it is prosecuting people, it should start during the GNU process. I felt I should deal with this properly because corruption started during the GNU when Biti was leading.  So, if we are to start convicting people we should start from that period.  The money that was loaned to ZISCO Steel …

THE TEMPORARY SPEAKER (HON. MARUMAHOKO):

Hon. Chibaya, may you withdraw your remark.

HON. CHIBAYA:  Thank you Hon. Speaker, I do not know what

to withdraw.

THE TEMPORARY SPEAKER: Wati kana Mugabe wacho

ngaasungwe.

          *HON. CHIBAYA:  I do not know Mr. Speaker if it is because you are sitting in that chair that you do not respect Hon Members. Did you say wati or mati?

THE TEMPORARY SPEAKER:  Hon. Member, withdraw your

remarks.

*HON. CHIBAYA:  I understand but I do not want to be intimidated because I have never felt threatened.  I want to withdraw my remarks that even Mugabe should be arrested.

*HON. MAPIKI:   I think our greatest challenge in Zimbabwe is that we do not know the proper definition for corruption.  Even our laws cannot explain what corruption is.  We are not defining whether it is physical or mental corruption because in all instances, people end up not being prosecuted.  I think going back, we have seen that there are cases that we thought were corruption, for instance in the Ministry of Energy and Power Development, during the time of Mangoma, a lot of things happened and we thought he would be arrested.  However, up to now he is free and we do not know what corruption is.

What I alluded to in the Ministry of Health and Child Care and Ministry of Finance and Economic Development in 2012 and 2013, you will find that a lot of money was transferred into missionary clinics accounts like St Alberts and Chikombedzi.  There was no paperwork to show where the money came from and its purpose.  All this started during the GNU era.  So, a lot of Ministers in the GNU should be prosecuted including Biti and Mangoma.

If we look at the issue of a photocopier machine which was bought for the Milan Expo, no one went to tender but just one person was chosen to supply the equipment which was a breach of the procurement process.

*HON. CHINOTIMBA: On a point of order Mr. Speaker, Hon Mliswa is repeating the same statement that you asked Hon. Chibaya to withdraw.  Hon. Mliswa said President Mugabe is protecting thieves.  We want to know the thieves being protected by the President and if he cannot tell us he should withdraw that statement.

THE TEMPORARY SPEAKER: Order, Hon Members, you do

not tell me what to do.  Hon. Chinotimba, that is a general comment; so there is no point of order.

*HON. MAPIKI:  I think when it comes to the books of accounts; you will find that things were not going well at that time.  What is troublesome is that during that time, the Ministry of Finance was being headed by Biti and receipts were not being given out.  This was just a gimmick for them to steal while they pretended that the system did not work.  How can $12 million be put into an account without any papers accompanying the transaction and a photocopier bought for $10,000 and no receipts are produced.  What it simply means is that someone was stealing money and pretending to be incompetent.

The report from the Public Accounts Committee chaired by Hon. Mpariwa showed that there was not enough paperwork because people wanted to steal money.  This should be seriously looked into because all the people employed in Government are very educated and professionals in their field of work.  So it does not make sense to get a report saying there were no receipts for fuel bought for $7000 and this could only be seen on bank statements as money was transferred to the respective suppliers.  This means people planned to steal while pretending to be incompetent.    I thank you Mr. Speaker.

HON. CHAMISA:  Thank you very much Hon. Speaker.  I just want to say that we have had an inflow of Ministers, which makes it very interesting as it is very important for our Ministers to appreciate the points that we are raising as Parliament, not just from the opposition benches but even from the ruling party benches.  As Parliament, we have a duty to the people, the Constitution and taxpayers.  I am saying this because we have realised the propensity and tendency by most Ministers, to literally have a lackadaisical approach to issues of superintending national coffers.  I am saying this, particularly in the presence of the Minister of Industry and Commerce because the report we are debating concerns your Ministry. Hon. Minister, it may please you to note that your Permanent Secretary and indeed, your officials in the Ministry have become encyclopedically and legendarily very corrupt to the extent that you may need to take this matter yourself and to the President, to indicate that as Parliament, we have taken a serious notice of the corruption that has dominated the corridors of Government. We say this with a very serious note because you are aware that Cuthbert Dube, through PSMAS, almost raided the coffers of the various contributors of PSMAS to the tune of about $6 million.

Not only that, we have almost $20 million that was not accounted for in terms of another report that was made by the Auditor and

Comptroller General, and nothing was done by the Government. Nothing was also done after Parliament took serious note of the issues that we had raised. Hon. Speaker, I want to say, until and unless Parliament gives a stop to the immunity and impunity of these culprits, we are going to be judged harshly as Parliamentarians, but also as leaders because we are simply allowing coffers of the State to be raided under our watch. What are we supposed to do?

In terms of Section 119 of the Constitution, we as Parliament have the right to call upon Ministers, and when I say Ministers, I am also referring to Minister Chinamasa. I can see that you are in a deep conversation with my brother Hon. Prof. Moyo, which is good but please just listen to this very important …

THE TEMPORARY SPEAKER: Order, Hon. Member, that is

my prerogative.

HON. CHAMISA: Thank you Hon. Speaker. You know I respect your prerogative but we also want our Ministers. They are sitting in these offices on our behalf. We can be ministers, probably better ministers but they are there for us and we must make sure that we ask them to account. This is why I asked them to listen, Hon. Speaker.

I was saying that in terms of the Constitution of Zimbabwe, we are enjoined by this Constitution to come here and demand answers where there are no answers and where there are questions. Right now, you know that the President told us Hon. Speaker Sir, that we have $15 billion that disappeared in the diamond sector but it is business as usual. We cannot just ignore $15 billion having disappeared and the President is aware of the disappearance of that $15 billion. We want Parliament to say we want the President to look for the $15 billion. Perhaps he knows where it is but we want the Ministers to be accountable for that money.

This is very important Hon. Speaker, if you look at the report that has been presented. Just in regard to the issue of the coupons, people were taking fuel from Redan without any accountability. No record from Redan – [HON. KASUKUWERE: How?] – Yes, you may say how Hon. Kasukuwere, but this is happening under your watch and you will be busy with other wars that are not necessary instead of fighting – [Laughter.] – So, you cannot ask me how – [HON. MEMBERS:

Inaudible interjections.] -

Hon. Speaker Sir, I wish to refer you to the Standing Orders in terms of the reports that are coming from our Portfolio Committees. I have received very powerful committee reports. There was one from the

Committee of Agriculture; Youth and Indigenisation; Health by Dr. Labode and even, we have heard many reports but our Ministers are simply ignoring these reports yet we have a clause and provision in the Standing Orders. That is Standing Order Number 26 (2) that says, once a report has been given to Parliament, we must, in all cases, within 10 sitting days have a response from the Minister. But I can tell you that Ministers have not come here to report or respond to our reports and this continues.

What we want is to make sure that a Minister, who does not come here, let it be a combined effort by ZANU PF and MDC MPs, the MPs of this country to say, please account as a Minister. Come here and account. We have given you nice cars to drive and nice perks to have, account for them. We want our Ministers to come here and respond to the reports. This report is a very important report but I can assure you Hon Speaker, after the 10 sitting days, no report is going to be responded to. Why? It is because as Parliament we have become a toothless bulldog. In fact, it is okay for a bulldog. We have become a toothless puppy. Not even a puppy, we are a poodle. If we were a bulldog, we would understand. We have become a lapdog of Government.

We must move away from waiting as resources are being plundered. This is what is killing ZIM ASSET, the economy and future of our people. If we come together as a people and say to Ministers, please account, we teach our Ministers to come here, not for a hunky dory affair but to account for things that are supposed to be done. We want these things to be done Hon. Speaker and it is backed by the law.

Ministers are supposed to come here and account for what they do. Hon.

Mpariwa moved a very good report, seconded by Hon. Marumahoko.

We do not want this report to just go down the drain. This report must be given the seriousness it deserves. Why, because there is violation of the law. Why, because there is corruption in the corridors of Government. Why? Because we have people who are violating the statutes of our country and we need to just look at Section 84 of the Public Finance Management Act. We are supposed to have audit committees in all these Ministries but not even a single Ministry has an audit committee. Why? It is because they do not take the laws seriously

– [HON. WADYAJENA: Chamisa waive Minister iwe.] – Yes, I was a

Minister and I will become a Minister very soon – [Laughter.] -

Hon. Speaker, we have seen that there is not even any proper documentation in terms of just tracking of debts that have been incurred by the Ministry. This tells you about the general attitude or character in Government. There is no accountability; it is almost like wapusa wapusa because there is darkness. You know that all bacteria do not want accountability. No bacteria will ever switch on lights. Why? Because they know that they are simply creating a difficult environment for them to thrive and this is what we must be able to deal with.

We have heard about procurement Hon. Speaker, and I know that there is a Bill that is before the House on procurement. We need to move with speed to make sure that we put the necessary framework on procurement and move to e-procurement. Why do we need eprocurement? E-procurement is going to eliminate a lot of shoddy dealings when it comes to procurement within Government. I know Minister Chinamasa understands that we have to move into a smart mode as a Government. In other jurisdictions Hon. Chinamasa, through you Hon. Speaker, governments have now moved into what is called an i-gov platform (Intelligence Governance or Smart Government Platform) or even an e-government platform at very rudimentary levels. Why, because you are going to then track every dollar within the system through the Public Finance Management System but also through our on-line project so that we are not going to have the shoddy dealings.

At times Ministers do not get enough resources but you know where they get their money? I was a Minister and I know colleagues who would actually brag about the deals around procurement on roads, airports, water treatment and so on. This is what we must curb through e-procurement. To do this Hon. Speaker Sir, let us also move Government away from the paper platform and archaic platform to a smart Government platform so that we are able to respond to our issues.  I was looking at the Global Competitiveness Index Report, Zimbabwe has been ranked poorly and the reason it is so is that the first pillar, which is very important out of the 12 institutions has not been ranked properly.  We are number 125 out of 140, why?  The reason is that we have not built sufficient institutions to account for proper Government and accountability within the corridors of Government.

What do we need to do?  Hon. Speaker Sir, with speed, I would recommend that let us show a difference, starting with this report.

Within 10 days, let the Minister come to us and respond to this report.

After responding, let us have all the culprits, including the Permanent Secretary, who has been implicated, they have to be arrested.  Why are they supposed to be arrested? To send a signal that we do not tolerate nonsense.  However, we should not end with the Permanent Secretary, let us also approach the Minister and if possible invite the Minister to visit the police and account why he/she allowed such things to happen.  It is important, this is Hon. Minister Bimha.  We want Ministers to account for what they are doing.  They must explain to the police why they have allowed such a thing to happen.  Once we start doing that, our country is going to turn around within a fortnight.  I can assure you that a turnaround is just a minute away, it is just an effort away but it is our actions as Government.  Thank you Hon. Speaker Sir.

Hon. Mliswa having stood up to speak at the same time  with the Hon. Minister of Finance and Economic Development Hon. Chinamasa and arguing on who should be recognised by the Speaker to speak first.

THE TEMPORARY SPEAKER:  Order, order! – [HON.

MEMBERS: Inaudible interjections.] – What is the noise about?

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA):Mr. Speaker Sir,

Government business today must be given prominence and I am therefore moving – [HON. MEMBERS: Inaudible interjections.] – that the debate do now adjourn – [HON. MEMBERS: Inaudible

interjections.] –

THE TEMPORARY SPEAKER: Order Hon. Members.

HON. CHINAMASA: Mr. Speaker Sir, I move that the debate do now adjourn – [HON. MEMBERS: Inaudible interjections.] –

*HON. MARIDADI: Mr. Speaker Sir, let me say out a point of order.  My point of order is that, earlier on, you recognised Hon. Members who were supposed to speak.  The Hon. Minister came in late, we have laws and regulations in this House and Ministers must respect them.  We are not at a political party rally, where they do what they want because of seniority.  This is Parliament; it is the legislature and Hon.

Mliswa want to debate issues of making the Constitution.  Thank you –

[HON. MEMBERS: Inaudible interjections.] –

THE TEMPORARY SPEAKER: Order.  I will make a ruling, not anyone else.  Hon. Minister, I am going to give Hon. Mliswa a chance to speak – [HON. MEMBERS: Hear, hear.]

THE TEMPORARY SPEAKER: What is the excitement about?  This is Hon. Mliswa whom you know, what is funny about it. He does not look different.

HON. MLISWA:  Mr. Speaker, I want to thank you for recognising the independent candidate – [HON. MEMBERS: Inaudible interjections.] – Sorry, the independent Member of Parliament.  Mr.

Speaker, I want to support both sides.  May I begin by saying, His

Excellency, the President of the Republic of Zimbabwe, Cde. R. G. Mugabe is to record in this august House of speaking about zero tolerance to corruption.  The first time I got into Parliament before I was expelled, he spoke about that, on my return to Parliament, he equally spoke about it.

I am one who is fortunate that whenever I am in Parliament and the

President addresses, corruption is topical in his address.  Equally, I read the message from the leader of the MDC denouncing corruption amongst the councillors from MDC.  I want to pounce on corruption because the report by the Public Accounts Committee clearly exposes the lack of accountability and political will to deal with corruption.  For as long as we do not deal with corruption, we have no business to talk about, it has become cancerous.  If I recall, in my first term of being a Member of Parliament, this House tried to propose an ad-hoc committee to deal with anti-corruption.

Mr. Speaker Sir, it was important that Members of Parliament who have oversight over the Executive equally have a mandate to be able to supervise and scrutinise anybody, because our oversight is of everyone.  That ad-hoc committee was crushed and corruption escalated to alarming levels.  Sadly, on my return to Parliament, it is even worse. We have just had a situation where the Auditor General has constantly and has a Constitutional mandate to be able to report on how Government departments are spending or are held accountable.  The reports have been terrible, to say the least.  There has not been any action taken as a result of the reports, which implies that Government is wasting money paying people who are doing their job but there is no follow up on those reports.

It is important that the Auditor General’s Report, who is mandated to look into the accountability of all Government departments, is taken seriously.  Ministers have become an embarrassment to this nation, they do not have shame, despite them being asked to account, they are not prepared to account.  Mr. Speaker Sir, you cannot avoid talking about ZANU PF, which is the ruling party.  In fact, I would like to say the governing party, they govern, they are the Government of the day and it is made out of ZANU PF.  ZANU PF itself protects corruption by even setting up a special committee in the Politburo to protect Professor Moyo.  When the Prosecutor-General himself has written a letter which is an arm of Government empowered by the Constitution to investigate, that does not happen.  We see a situation where, even the Minister of

Home Affairs, when I questioned him about the letter from the

Prosecutor-General, he professed ignorance but the letter is there.

It is pretty clear that the President must walk the talk on corruption.  We are not school going children who are excited.  The very same party will find it difficult to be in power.  I look back because some of you will not come back as a result of corruption.

THE TEMPORARY CHAIR (HON. MARUMAHOKO): 

Order, address the Chair.

          HON. MLISWA:  You shall be punished dearly by the

Constituents because you are aiding to corruption.  I want to support

Hon. Chamisa’s point and we as Members of Parliament must ensure that our dignity and integrity is intact. We must exonerate ourselves from the behavior of the Executive.  A Member of Parliament for ZANU PF is not a Minister or Executive.  We should walk together on this for us to show that there is a concern.

The President equally acknowledged about the US$15 billion which went missing.  Up to now, there has not been an investigation, neither has there been a probe to bring the people to book.  We now have Members of Parliament wasting time and resources sitting down on these Committees deliberating a lot of issues which we know very well that there is no political will to address these issues.

My question is, what are we doing here? When you go back to the

Constituencies and people are talking about corruption, look at me.  What do you say?  What do you say?  ZANU PF, MDC; what do you say?  The Members of Parliament who are mandated with representing people are poor themselves and failing to discharge their duties.  We just got about US$30 million in Parliament but yet we are busy endorsing monies to go to Government Departments which are stealing.

We must take this seriously.  We cannot continue.  As Members of Parliament, we should speak for the voiceless.  Who is speaking for the voiceless?  They are not here represented but it is as if some are dumb. They see but they do not talk.  What did you come to do in Parliament if you are not able to denounce the cancerous corruption which even the President and First Secretary of ZANU PF has equally spoken of members of ZANU PF.  Who really are you supporting?  I would expect you to support the voice of His Excellency. In supporting the voice of His Excellency, denounce corruption, expose corruption and let us deal with corruption.

We have the Hon Vice President Mnangagwa, who each time I see him on television, is denouncing corruption.  He is equally the Minister of Justice but being the Minister of Justice which is an arm of the Government that deals with the judiciary system; there is not much being done.  The President is paying lip service to corruption.  When the Head of State pays lip service to corruption, the 2I C (2^nd in charge) will equally do the same because the Vice President cannot go against the President.

Now, when corruption happens, it is now reduced to factional fights.  We do not care about the factional fights. Whether you have stolen or not, you must appear before the courts.  Do not hide behind factions.  Madam Speaker, we do not eat factions.  This House is not about factions and the business should not be about factions.  It must be about Parliament having oversight.  Even if you belong to a faction,

Parliament has oversight over your faction.

THE HON. DEPUTY SPEAKER:  Order Hon. Member, address

the Chair.  I do not know where the factionalism is coming from concerning this report.

*HON. CHAMISA:  On a point of order, for the safety of

Ministers; may the Hon. Mliswa debate whilst standing on this side –

[Laughter.]-

*THE HON. DEPUTY SPEAKER:  Order, order, Hon. Chamisa,

Hon. Chamisa has got the right to debate standing on a side that he wants – [HON. MEMBERS: Inaudible interjections.]-

*HON. CHINOTIMBA:  On a point of order, I think Hon. Chamisa is correct in what he has said because Hon. Mliswa is spitting whilst speaking. It is like we are outside and it is raining.  He should move over to that side.

THE HON. DEPUTY SPEAKER:  Hon. Member, please take

your seat. Hon Mliswa, please proceed with your debate.

HON. MLISWA:  Thank you Madam Speaker.  Hon. Chinotimba,

I will keep talking to you and you shall get irrigation…

THE HON. DEPUTY SPEAKER:  Order Hon. Member of

Parliament for Norton, it is my appeal that you stick to the debate of the report of the Committee please.

HON. MLISWA:  I take note of that Madam Speaker but because of lack of irrigation, I thought I would also be helping Minister Made to ensure that we increase the irrigation capacity of the country –

Laughter.]-

Madam Speaker, I still go back to the point which I was on that Members of Parliament must not be moved by factional fights in any party.  We have oversight and we must …

THE HON. DEPUTY SPEAKER:  Is this in the report? - [HON.

MEMBERS: Yes!] -

HON. MLISWA: What we are debating about is a report on

Public Accounts.  Public accounts, whether you like it or not, involves accountability and transparency, but we have failed to execute as a result of corruption  - [HON. MARIDADI: Inaudible interjections.] - THE HON. DEPUTY SPEAKER:  Order Hon. Maridadi!

HON. MLISWA: Madam Speaker, it is equally important that as Members of Parliament, when we are here to discharge our duties regardless of the political parties we belong to, we have a mandate to serve the people.  We have a mandate to serve the nation.  Equally, we also call upon Ministers who are appointed in trust by the President to also ensure that their mandate is met.  But quite clearly that certainly is not happening.

Madam Speaker, we will continue referring to the ruling party because it is the governing party.  If it were not the governing party, we would not refer to it. As such, they have equally come from a conference which we hoped – it was a national event where we hoped that the issues of corruption will be brought up seriously; but instead, the Head of State now is leaning towards factions, saying that you must not be penalizing people so that you get into power. I was a bit shocked because I had hoped that he would go on his tone in terms of dealing with corruption because His Excellency, on numerous occasions has spoken about corruption.

What is lacking is the action and the action has got to start with even one of your most favourite children that you have.  Even your obedient son is equally subject to the law.  There is no one who is not subject to the law and I think it makes a mockery of the entire system of who we are.  By debating on this, I want the nation to understand that Members of Parliament are clearly failing.  They are debating in terms of corruption and I want to applaud some Members from ZANU PF like Hon. Nduna who was very clear about corruption that there is no political will which really renders us useless at the end of the day. Why we are here is the question that I was asking. Equally, the question is that why do we then have the Speaker and the Deputy Speaker when we are not able to debate issues which will then be implemented at the end of the day?

This is a Public Accounts report and in Public Accounts,

Government is subject to scrutiny. I do not want at all to seem willingly to be personal with Hon. Prof Moyo but he is in charge of the Higher and Tertiary portfolio in Government. He is equally in charge of ZIMDEF and we have a body mandated to investigate corruption which is Zimbabwe Anti Corruption Commission. To date, it has carried out tasks and it has equally recommended that there should be an arrest. For your own information, members who investigate, who are part of the investigating team in ZACC are commissioned police officers. These people are recommended by the Commissioner General himself. These people have gone through a system which we all have paid money for. They have taken oath but when they then investigate and you doubt them; when we are equally doubting institutions which are in the Constitution, where are we going as a country?

If surely Hon. Prof. Moyo has no case to answer, what we know before is that he just appeared before the courts like what some of us have done before. The Deputy Minister is before the courts but what then surprises everyone is that the Deputy Minister is before the courts but the Minister is not. How could you accuse the Deputy Minister when we talk about the role of oversight by Ministers. Ministers, do not spend too much time drinking tea in Cabinet. I think you must equally spend time in having oversight over your personnel. You are responsible for the Ministry and the Permanent Secretary is not. We now need the head to really know what is going on. Failure by the head to know what is going on, you are equally implicated. How are you exonerated?

The aspect of ZIMDEF is a subject of accountability and the Public Works has a role to play. The report exposes quite a lot in terms of where we must be going. I say this today, we are getting tired coming to Parliament as if we are aiding corruption. Some of us are equally sick because we do not want to be associated with deliberations that focus on corruption. We are now being accused of equally being corrupt yet these Members of Parliament are poor –[HON MEMBERS: Inaudible interjections]- I want to applaud the Public Accounts Committee chaired by Hon. Mpariwa that despite the hardships we face as Members of Parliament, I must commend you for doing your job because in a situation like this, you are likely to be corrupted by those who are corrupt and those who have money but you have stayed away from corruption and you are actually doing the country a great service. When people are serving their country honestly, they must be rewarded by results.

The Government of National Unity was also equally corrupt. It had ZANU PF, in fact it was the most corrupt institution ever set up in this country. It was equally corrupt. So, I am saying corruption is in ZANU PF and MDC but you do not find it when you come to independent people. To me it is equally important that we speak the truth about corruption. I want to equally support Hon. Mapiki’s contribution when he said that some of the MDC Ministers must be arrested. I agree with him but I must warn him that when the arrests start, they will only be two Cabinet Ministers left in ZANU PF and I hope he is prepared when the exercise starts. I am worried that the by-elections will be so much and for now I do not think the State has resources to really deal with byelections of Cabinet Ministers who are on this side. While that suggestion is important, no one is a sacred cow, it is important for whoever was corrupt in the GNU and now to face the music at the end of the day. I reiterate that your right side Madam Speaker is likely to suffer more casualties than the left side. It is important that we also observe that…

[Time limit]

The Hon. Deputy Speaker interrupted the Hon. Member speaking in terms of Standing Order 88(1).

*HON. CHINOTIMBA: Let me thank the Chairperson of the

Committee on Public Accounts, Hon. Mpariwa for she brought out a lot of issues. The issue of corruption is the one I will talk about. For sure we do not want corruption in this country. It is very true what people are saying that if there is any corruption, it should be nipped in the bud.

What the Hon. Members are talking about might be painful to others but what they are saying is true. Even the President said that corruption is not good. The day before yesterday, we saw Members of the MDC and their leader Mr. Tsvangirai also talking about corruption in MDC led councils. What is surprising me is that when the Ministers are doing their duty, let us take for example Hon. Kasukuwere, he descended on City of Gweru and he fired all the councillors. After doing that we saw…

HON. MARIDADI: On a point of order. The issue that Hon.

Chinotimba is talking about, I think it is also important to be factual because the councillors of Gweru that he is talking about were exonerated by the courts and there is a court order that they should go back to work. Hon. Kasukuwere is actually the one who is in the wrong because he is ignoring a court order.

THE HON. DEPUTY SPEAKER: Hon. Members, can we be

very careful on our debate. We are now diverting from the report by Hon. Mpariwa. We are not talking about councils, Hon. Chinotimba, could you please proceed with your debate.

*HON. CHINOTIMBA:  Thank you Madam Speaker, Hon.

Chamisa was really articulate that when the Ministers are not doing their job, they should come and report.  Now the Ministers are working but they will be an uproar that why are you persecuting these people.  Leave the Ministers to do their work.  Secondly, corruption – [HON.

MEMBERS: Inaudible interjections.] –

*THE DEPUTY SPEAKER: Order Hon. Members, let me appeal

to Hon. Chinotimba that we are debating on the report – [HON.

MEMBERS: Inaudible interjections.] – Order, can we have order please.

Hon. Members to my left please do not help me, I want to speak to Hon.

Chinotimba.

Hon. Chinotimba, you can refer to other issues but concentrate on the report, not what has been spoken by someone.

*HON. CHINOTIMBA:  Thank you Madam Speaker.  I am

articulating the issue of corruption.  I am not out of order, let me speak.  Yesterday, the House of the then Prime Minister which he is staying, millions were stolen but no one was prosecuted. So, what we are saying is that the issue of corruption which was talked by Hon. Mpariwa – I am not supporting corruption.  Everyone who is involved in corruption should be prosecuted.  Even those who steal should be prosecuted because it is not the President who steals – [HON. CHIBAYA: Inaudible interjections.] –

THE DEPUTY SPEAKER:  Order, Hon. Chibaya.

HON. MARIDADI: On a point of order Madam Speaker.

THE DEPUTY SPEAKER:  What is your point of order?

HON. MARIDADI: I find it amiss Hon. Speaker that Hon.

Kasukuwere, Minister of Local Government, Public Works and National Housing should stand from his position to go and tell Hon. Chinotimba what to say.  It is not acceptable. Hon. Minister, you cannot do that.  We do not want thugary in this House and the Minister is resorting to thugary and it is not honourable – [HON. MEMBERS: Inaudible

interjections.] –

THE DEPUTY SPEAKER: Order, Hon. Maridadi, you are out of

order.  Why Hon. Kasukuwere is sitting on the front bench where

Ministers are supposed to sit.  So, how can you complain?

HON. NDEBELE:  On a point of order Madam Speaker.

THE DEPUTY SPEAKER: What is your point of order?

HON. NDEBELE: If you continue in this way you will make the situation ungovernable.

THE DEPUTY SPEAKER: Which way?

HON. NDEBELE:  This is Parliament; we are not in a ZANU PF

caucus here.

THE DEPUTY SPEAKER: Which way I want to understand?

HON. NDEBELE:  No, no, I have problems with your rulings, we will start singing right now – [HON. MEMBERS: Inaudible interjections.] –

THE DEPUTY SPEAKER: Singing for what?

HON. NDEBELE:  No, no, this is not a play ground.  We start

singing if you do that.

THE DEPUTY SPEAKER:  Singing for what?

HON. NDEBELE: Asihlabeleni. This is unfair.

Hon. Members for MDC started singing. 

          THE DEPUTY SPEAKER:  Hon. Mliswa is not a Minister..

HON. NDEBELE: He is sitting here.  You cannot preside over Parliament in this manner, this is not a playground.  We are not your children – [HON. MEMBERS: Inaudible interjections.] –

THE DEPUTY SPEAKER:  Is it because of the sitting of the

Minister.

HON. NDEBELE:  No, marulings enyu iwayo.  You must review

your rulings, this is not child’s play.  We did not come all the way to play here.

THE DEPUTY SPEAKER:  You can talk to him otherwise I do

not want to send him outside.  I cannot have that. I cannot have that honestly.   Could we please proceed?

HON. CHINOTIMBA:  Thank you Madam Speaker.  There are

Ministers on this side.  I wanted to add that this issue on corruption that I have talked about – from both sides either ZANU PF or MDC, all those who are corrupt should be prosecuted.  We are the ones involved in corrupt activities and this does not touch on the President.  All those who were stealing should be prosecuted.  Hon. Mangoma was caught stealing petrol. He then changed Mobile to Petrol Trade.  He also changed the whole administration and replaced it with new administration which was corrupt – [HON. MEMBERS: Inaudible

interjections.] –

THE DEPUTY SPEAKER:  Order, can we have order.

*HON. MUCHENJE:  On a point of order Madam Speaker.

THE DEPUTY SPEAKER: What is your point of order?

*HON. MUCHENJE: Thank you Madam Speaker – [HON.

MEMBERS: Inaudible interjections.] –

THE DEPUTY SPEAKER: Give others the chance to speak, you

cannot talk alone.

*HON. MUCHENJE:  Thank you Madam Speaker.  My point of

order is that Hon. Chinotimba should talk about the Government that is ruling.  We cannot talk about the Inclusive Government which made people happy, they should talk about current issues.  We should not talk about history but what makes the country move forward.

*THE DEPUTY SPEAKER:  Hon. Member, when an Hon.

Member debates he or she can refer to someone.  Hon. Chinotimba, please refer to the report on the Committee.

*HON. CHINOTIMBA: When Hon. Mliswa was debating, he mentioned what happened at the ZANU PF conference and we gave him an opportunity.  When debates were going on, we did not interfere.  So, let me debate freely. The issue that I have is that we are talking about corruption in the country that there is so much corruption but let us start where it started going up so that we get to the root of corruption.  We do not want to say that if a person was corrupt yesterday, they should be pardoned because they are no longer in the office.  I do not think it is proper.  Going back to NSSA...

HON. PHIRI: On a point of order Madam Speaker.

THE DEPUTY SPEAKER:  What is your point of order?

HON. PHIRI:  Madam Speaker, we cannot sit here quietly when other people are making a lot of noise for us.  We are quiet, we want to listen.  It is unfair – [HON. MEMBERS: Inaudible interjections.] – you shut up, it is unfair – [HON. MEMBERS: Inaudible interjections.] – You shut up.  It is unfair Madam Speaker.  It is unfair that when people talk about ZANU PF, corruption in ZANU PF, everyone wants to laugh, but when we talk – shut up - [HON. MEMBERS:  Inaudible interjections.] – Can I have your protection?

THE HON. DEPUTY SPEAKER:  Order, order!  Can we have order?  Hon. Chibaya, can we have order?  Hon. Members, Hon. Chibaya what is wrong?

HON. CHIBAYA:  We are not his children - [HON.

MEMBERS:  Inaudible interjections.] –

THE HON. DEPUTY SPEAKER:  Hon. Members!  Hon. Phiri,

you complain to the Chair that you are not hearing anything, not shut up vanhu.  You are not supposed to do that because these are Hon.

Members.  They can make a lot of noise, but they are Hon. Members.  Would you please just withdraw the shut up.  Please do.  Withdraw that before you say anything.

HON. PHIRI:  Can people shut up so that I can say, I withdraw - [HON. MEMBERS:  Inaudible interjections.] – Maybe my English is the one that is not correct.  I wanted people to be quiet, so I think…

THE HON. DEPUTY SPEAKER:  You wanted people to be

quiet, but you used a wrong word.  Will you please withdraw?

HON. PHIRI:  I want to withdraw the shut up, but I also want to say that because they are talking of ZANU PF, that is corrupt - [HON. MEMBERS:  Inaudible interjections.] – Madam Speaker, may I say this.  Our towns and cities have turned into villages.  We are walking in pot holes and everything because of them.  Now, why should they be calling ZANU PF corrupt?  They are also corrupt.  They are stealing in our towns and cities – [AN HON. MEMBER:  He is an idiot!] -  

THE HON. DEPUTY SPEAKER:  Who said that?  Hon.

Maridadi, could you please withdraw your words?  - [HON.

MEMBERS:  Inaudible interjections.] –

HON. MARIDADI:  Madam Speaker, I was raised properly by a Ndebele woman.  I do not use such words as those.  I am sorry about

that.

THE HON. DEPUTY SPEAKER: If it is not you, I am sorry –

[AN HON. MEMBER:  NdiMaondera.] -  ndiMaondera?

HON. MARIDADI:  Yes, ndiMaondera.

THE HON. DEPUTY SPEAKER:  Okay, Maondera please stand up and withdraw that.  Let us be Hon. Members.

HON. MAONDERA: Okay, I withdraw my statement that Funny

Phiri is an idiot.

THE HON. DEPUTY SPEAKER:  Watii?

HON. MAONDERA:  I withdraw my statement that he is an idiot.

THE HON. DEPUTY SPEAKER:  Hon. Member, you have got

to be honourable enough.

HON. MAONDERA:  I have withdrawn my statement that he is

an idiot.

THE HON. DEPUTY SPEAKER:  Withdraw the word ‘idiot’.

HON. MAONDERA:  I withdraw the word ‘idiot’ - [HON.

MEMBERS:  Inaudible interjections.] –

THE HON. DEPUTY SPEAKER:  Anyway Hon. Members, I

think we are no longer behaving like Hon. Members now.  Hon.

Chinotimba, I think you are left with two minutes now.

*HON. CHINOTIMBA:  Madam Speaker, I have spent a lot of time not speaking, so I do not know the time that people were talking about point of orders.

THE HON. DEPUTY SPEAKER:  Hon. Chinotimba, you are

wasting time nekupopota.           

HON. N. NDLOVU:  On a point of order.

THE HON. DEPUTY SPEAKER:  What is your point of order?

HON. N. NDLOVU:  Madam Speaker, may the Hon. Member

please stick to the debate, otherwise he is misleading the House - [HON.

MEMBERS:  Inaudible interjections.] – HON. CHAPFIKA:  On a point of order.

THE HON. DEPUTY SPEAKER:  What is your point of order?

HON. CHAPFIKA:  I propose that his time be extended - [HON.

MEMBERS:  Inaudible interjections.] –

THE HON. DEPUTY SPEAKER:  Hon. Member, there should

be a reason.  Because this is not his motion, his time cannot be extended.

*HON. CHINOTIMBA:  Thank you Madam Speaker.  I wanted to talk about NSSA, that during Hon. Mpariwa’s term people got loans and got houses.  Those people who bought houses are no longer with

NSSA because of corruption.  The Bible that I read says, “do not see the small speck that is in someone’s eyes and not focus on the log that is in your eye.”  What I am saying is that this should be looked into and we should start from the root cause.

I heard Hon. Mliswa saying that the GNU was worse, which means that the people in this country.  Have faith in President Mugabe.  You are going to see all of them falling down.  They are not going to win.  As they spoke here, they were talking about money.  They are the ones who want to build our nation, but they corrupt our nation so that our country suffers. So, how do we progress as a nation?

Our money that we are using, they went to where it is printed and said, do not print it and this is corruption.  So, what I am saying is, if we can say all the people that I have talked about from both sides, all those people who stole at that time, the money that he used to build his house – [HON. MEMBERS: Inaudible interjections.] – but you have eaten into my time because of point of orders, but what I have said is that we do not want corruption in this country, whether it is the opposition or

ZANU PF.  Corruption is corruption.

All those people who engage in corrupt activities should be prosecuted.  Even councils, when Kasukuwere is now prosecuting people, they should not be cry babies.  I thank you.

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA):  I move that the debate do now adjourn.

Motion put and agreed to.

Debate to resume:  Wednesday, 21^st December, 2016.

MOTION

BUSINESS OF THE HOUSE

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA):  Madam Speaker, I move

that we revert to Orders of the Day, starting with Order of the Day Number 1.

Motion put and agreed to.

SECOND READING

RESERVE BANK OF ZIMBABWE AMENDMENT BILL [H.B. 12,

2016]

HON. CHAMISA:  Thank you Madam Speaker.  I am just

seeking clarification because my recollection tells me that we were supposed to be receiving a report from the Committee on their outreach programme from Hon. Chapfika before we open the floodgates of debate.  In terms of procedure, that is what I understand.  It would appear that he has forgotten that …

THE HON. DEPUTY SPEAKER:  Hon. Chamisa, when I asked

for debate, it was only Hon. Mashakada who was up.  Was I supposed to call an Hon. Member who is seated to debate – [HON. MEMBERS:

Procedure!] – No.

HON. CHAPFIKA:  Madam Speaker, I presented my report on the Reserve Bank Amendment Bill to this House.  I did not present my report on the Budget because we are still to do workshops on the postbudget analysis.  On the Reserve Bank Amendment Bill, I did submit my report in this Chamber.  Maybe Hon. Chamisa was not in the House.

Please proceed if you want to debate the Bill – [HON. MEMBERS:

Inaudible interjections.] –

THE HON. DEPUTY SPEAKER:  Hon. Chapfika, the Clerks are

saying you did not submit any report.  Can you please verify – [HON. MEMBERS:  Inaudible interjections.] – Order, order!  Can we have order!

HON. CHAPFIKA:  Madam Speaker, I think there is confusion between the Reserve Bank Amendment Bill and the Budget.  I wanted to present my report on the Budget and the House was adjourned.  Hon. Mashakada presented his report and we objected that he should not have presented before I did my report.  However, this one I think I did it two or three weeks back – [HON. MEMBERS:  Inaudible interjections.] –

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA):  Madam Speaker, my

recollection is that the Chairperson of the Portfolio Committee was not able to present his report.  I think to give him that opportunity, I move that the debate on this issue be adjourned.

Motion put and agreed to.

Debate to resume:  Wednesday, 21^st December, 2016.

MOTION

BUSINESS OF THE HOUSE

THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA):  Madam Speaker, I move

that Orders of the Day, Numbers 2 to 5 be stood over until Order of the Day, Number 6 has been disposed of.

Motion put and agreed to.

SECOND READING

PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS

BILL [H.B.5, 2016]

          THE MINISTER OF FINANCE AND ECONOMIC

DEVELOPMENT (HON. CHINAMASA):  Madam Speaker, it is my

singular honour to move that the Public Procurement and Disposal of Public Assets Bill [H.B.5, 2016] be read for the second time.

In line with the provisions of Section 315 of the Constitution of Zimbabwe, this Bill seeks to fundamentally reorganize the way in which procuring entities such as Government Ministries, parastatals and local authorities acquire goods, services, works, joint ventures and consultancy services from bidding institutions.

In the current challenging economic environment, ensuring efficiency and integrity in public procurement is essential to ensuring sound public service delivery and maintaining citizens’ trust in Government.  In order to achieve this, there is need to professionalise and mordenise the procurement systems in the country.  Madam Speaker, there is need for Government to tap into the potential of procurement as a strategic policy lever to advance socio-economic objectives which can only be achieved by reviewing the legislative and institutional architecture for the national procurement system.

Madam Speaker, fostering institutional responsibility and personal accountability in the public sector will help stimulate a healthy business environment and promoting innovation and fair competition.

5. Madam Speaker, the Bill will transform the State Procurement Board into a new, non-executive procurement authority tasked solely with providing a regulatory and oversight role as well as setting standards, guidelines and monitoring compliance thus leading to a separation of the regulatory and operational functions.
6. Madam Speaker, the Bill will also introduce the ‘Procurement

Regulatory Authority’ responsible for setting public procurement standards, regulating, monitoring and evaluating procurement activities conducted by procuring entities.  Mr. Speaker, the Bill devolves procurement decision making to procuring entities and set out the procedures to be followed and the steps to be taken in procurement proceedings to ensure fairness and transparency.

KEY OBJECTIVES OF THE BILL

7. Some of the key objectives this Bill seeks to achieve are to:
8. Promote competition among bidders;
9. Provide fair and equitable treatment of bidders which will eventually culminate in value for money procurement;
10. Ensure that all public procurement is conducted in a transparent way; and finally, and most importantly,
11. Provide the general public with the satisfaction that contract awards follow a fair and transparent process

KEY PROVISIONS OF THE BILL

8. Madam Speaker, I will now outline some of the key provisions of the Public Procurement and Disposal of Public Assets Bill.
9. Clause 3(1) deals with application of the Act in terms of which it shall apply to all stages of the process of the procurement of goods, construction works, services by procuring entities and the disposal of public assets by procuring entities.
10. Clause 3(3) deals with that which the Act will not apply to and sets out the relevant services and contracts to which it is inapplicable and provides for procurement by diplomatic or consular missions outside Zimbabwe.
11. Clause 3(6) provides for defence procurement and procurement related to public security or national interest.
12. The Objectives of the Act are set out in Clause 4 and include:-

4.1a  Ensuring procurement is effected in a manner that is transparent, fair, honest, cost-effective and competitive;

4.1b  Promotion of competition among bidders;

4.1c  Fair and equitable treatment of bidders to achieve value for money procurement;

4.1d Promote integrity of, and fairness and public confidence in procurement processes;

10. Madam Speaker, Clause 5 of the Bill establishes the Procurement Regulatory Authority of Zimbabwe whilst Clause 6 provides for functions of the Authority which include:-

6.1b Monitoring and supervision of public procurement systems in procuring entities;

6.1c-d Issuing technical guidelines and preparing standard documents and templates to be used in connection with public procurement;

6.1e Developing a framework for e-Procurement;

6.1h Promote public procurement capacity building;

6.1k Referring contraventions to appropriate enforcement agencies;

6.1l Establishment and implementation of an independent review mechanism.

11. Madam Speaker, the powers of the authority are set out in

Clause 7 of the Bill and these include the power to issue directions of a general nature to procuring entities regarding the manner in which they are to conduct procurement proceedings.

12. In terms of Clause 8 of the Bill, the operations of the Authority shall be managed by a board consisting of seven or nine members chosen for their knowledge and experience in procurement, law, management, engineering and other relevant disciplines. Clause 11 provides for reports to be produced by Authority.
13. Madam Speaker, Part III of the Bill deals with responsibility for procurement and Clause 14 decentralises procurement to procuring entities by delegation of the activity to accounting officers (Clause 14.2) and members of the entity’s procurement management unit.
14. In terms of Clause 15 of the Bill, procuring entities require authorisation to Conduct procurement and where a procuring entity fails to obtain authorisation, the Authority may authorise another procuring entity to conduct such procurement on its behalf.  Clause 19 provides for shared procurement amongst procuring entities.
15. Madam Speaker, Part IV of the Bill deals with procurement preparations and planning and in terms of Clause 20, a procuring management unit shall use only the standard bidding documents produced by the Authority.
16. In terms of Clause 20(2), a procuring entity shall ensure that before initiating procurement proceedings, adequate funds have been budgeted and allocated to the procurement;
17. In terms of Clause 22, for each financial year, a procuring entity shall prepare a procurement plan.
18. Clause 26 provides for a procuring entity to conduct market consultations with a view to preparing contract specifications and informing potential bidders of the entity’s procurement plans and requirements.
19. Madam Speaker, Clauses 27-29 deals with technical requirements and qualification of bidders whilst Clauses 30 – 34 provide for methods of procurement.

Procedures for competitive bidding and restricted bidding are provided for in Clauses 35 to 56.  Clause 55 provides for contract award in terms of which a procuring entity having evaluated the bids shall award the procurement contract to the bidder that submitted the lowest bid which meets the price and non-price criteria set in bidding documents or offers the most economically advantageous tender.

21. Clauses 57 to 66 provide for procurement of consultancy services.
22. Madam Speaker, Part IX of the Bill provides for transparency and integrity and in Clause 66 provide for information to be provided to rejected bidders and Clause 68 provides for notification of a contract award which shall be published on the website of the Authority.

Madam Speaker, Part X of the Bill deals with challenges to procurement proceedings.  Clause 74 provides for application for review by a review panel; Clause 75 provides for the appointment of review panels and how they shall be composed.  Appeals against the decision of a review panel will lie to the administrative court.  Clause 79 places the responsibility for contract management on the procuring entity.

Madam Speaker, Clause 84 of the Bill requires that where the procurement consists of goods or construction works, a procurement contract shall give the procuring entity the right to inspect the procurement requirement before accepting it, and reasonable times to observe and inspect the manufacture of the goods or the progress of the construction work.

Madam Speaker Clauses 90 to 94 provide for disposal of public assets while Clause 92 outlines the disposal procedure to be adopted and followed whenever an asset becomes unserviceable, obsolete or surplus.  Part XIII of the Bill, provides for investigations by the authority and Clause 96 provides for appointment of an investigator by the authority and Clause 97 provides for the powers of such an investigator when appointed.

Madam Speaker, Clause 99 empowers the authority to declare a person ineligible to be awarded a procurement contract if the person has been convicted of an offence under any Act or the prevention of corruption act, in respect of any procurement proceedings or if any procurement contract between a procuring entity and a contractor has been cancelled or otherwise terminated, on account of fraud or persistent under-performance or non-performance of the contract.

Madam Speaker, with these remarks it is now my honour and pleasure to move that the Public Procurement and Disposal of Public Assets Bill, HB. 5 of 2016, be now read a second time.  I understand that there are some Hon. Members who may want to contribute and to have some time to go through my second reading speech as well as to go through the Bill.

Therefore, I move that the debate do now adjourn.

Motion put and agreed to.

Debate to resume: Wednesday, 21^st December, 2017

On the motion of the MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA), the House

adjourned at Ten Minutes past Five o’clock p.m.