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NATIONAL ASSEMBLY HANSARD 27 MARCH 2025 Vol. 51 No. 38

PARLIAMENT OF ZIMBABWE

Thursday, 27^th March, 2025

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

PRAYERS

(THE HON. DEPUTY SPEAKER in the Chair)

MOTION

BUSINESS OF THE HOUSE

         HON. KAMBUZUMA:  Madam Speaker, I move that Orders of the Day, Numbers 1 to 26 be stood over until Order of the Day Number 27 has been disposed of.

HON. C. MOYO:  I second.

Motion put and agreed to.

MOTION

REPORT OF THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE, LABOUR AND SOCIAL WELFARE ON PAYMENTS BY NATIONAL SOCIAL SECURITY AUTHORITY

Twenty-Seventh Order read: Adjourned debate on motion on the Report of the Portfolio Committee on Public Service, Labour and Social Welfare on the petition on meagre pension pay-outs by the National Social Security Authority (NSSA).

Question again proposed.

THE DEPUTY MINISTER OF PUBLIC SERVICE, LABOUR AND SOCIAL WELFARE (HON. DINHA):  Madam Speaker, I rise to respond to the report of the Portfolio Committee on Public Service, Labour and Social Welfare on NSSA Pensioners' Advocacy, petition on the meagre NSSA pension pay-outs. Madam Speaker, Honourable Members, distinguished colleagues, I am profoundly privileged to address this august gathering, presenting my response as requested by Parliament.

I am delighted to address the esteemed House on the crucial subject of social security pension since the true measure of the greatness of a nation lies in its capacity to protect its most vulnerable citizens. My Ministry accepts and welcomes the report of the Parliamentary Portfolio Committee on Public Service, Labour and Social Welfare on NSSA Pensioners' Advocacy Zimbabwe's petition. The report demonstrates fairness, objectivity and methodological rigor anchored on the inclusion of the views of the interested parties, namely the Ministry of Public Service, Labour and Social Welfare, the National Social Security Authority (NSSA) and NSSA pensioners, Advocacy Zimbabwe, yielding valuable insights and actionable recommendations.

We recognise the report's potential to significantly improve Zimbabwe's social security landscape and we are committed to carefully considering each recommendation to inform our policy decisions and reforms. The report's detailed insights and recommendations demonstrate a clear understanding of the complexities of social security schemes as well as their position within the national social protection structure. Importantly, the report proffers actionable recommendations to address the identified challenges.

As a Ministry, we are committed to carefully considering each of the report's recommendations to improve the social protection system to ensure that it provides adequate support to beneficiaries. In this regard, it is gratifying to note that NSSA had already made submissions that seamlessly align with the key recommendations of the Committee's report, recommending parametric reforms of the NSSA Pension Scheme. Consideration of NSSA's reform proposal by my Ministry is already underway.

For a detailed response to the Committee's Report, I will focus on the Committee's observations and recommendations as I believe these constitute the core and gist of the report.

Committee's observations:

3.1 Pensioners' dissatisfaction with pay-outs.  The Committee observed that the pensioners' dissatisfaction with pay-outs was justified considering that the amount could not cover basic needs and recommended amendment of the National Social Security Act [Chapter 17:04] of 1989 to remove the insurable earnings ceiling to enable the authority to collect reasonable contributions that would enable payment of reasonable pay-outs. This observation is most welcome as it empowers NSSA to receive higher contributions in order to pay higher pensions in line with the pensioners' expectations. It is heartening to note that NSSA had already made the same recommendation, which is currently under consideration by my ministry.

3.2 NSSA versus private sector pensions. The Committee noted that as of October 2023, the minimum NSSA retirement pension was USD40, which was comparable to what private pension institutions were paying their pensioners, although NSSA's contribution rate is 9% compared to the 20% on average for private pensions. In this regard, the Committee rightly concluded that the NSSA pension pay-outs were reasonable. We welcome this observation as it is based on empirical facts. It is important to note that NSSA has since raised the minimum retirement pension to USD60 in a commendable effort to improve the welfare of its pensioners in alignment with the World Bank's poverty datum line of USD2 per day.

NSSA has also instituted various innovative measures to augment statutory benefits such as a revolving loan facility for self-help projects, grocery and medicine discounts, arrangements with selected supermarkets and pharmacies and accelerated bank charges with NBS and POSB.

 Committee Observations 3.3 Pensioners' Awareness of the Design of the NSSA Pension Scheme. The report pertinently noted that pensioners were unaware that the NSSA pension scheme was not intended to be their sole source of income.

 Furthermore, the Committee noted that to meet the expectations of pensioners, NSSA needed to be empowered to increase its contribution collections, thereby enabling it to raise pension payouts.

We applaud this observation, which dovetails with NSSA's proposal for parametric reforms that are already under consideration by my Ministry.

Recommendation of the Committee 4.1, Initiation of the Process to Amend the NSSA Act. The recommendation for the Ministry of Public Service, Labour and Social Welfare to initiate the process of amending the NSSA Act to raise the insurable earnings enabling NSSA to collect higher contributions and increase payouts is highly appreciated. My Ministry will accordingly expedite the process since the recommended reform was already under consideration at NSSA's request.

Recommendation of the Committee 4.2, Support of Social Welfare Programmes by Treasury:

The recommendation for the Treasury to support social welfare programmes such as the Assisted Medical Treatment Order, AMTO and the Basic Education Assistance Module, BIM, by allocating adequate funds is very welcome. Adequate funding will enable our Ministry to assist all vulnerable groups in society, including pensioners.

Recommendation of the Committee 4.3, Educational Awareness Campaigns on Social Protection and Insurance Schemes:

The report pertinently recommended that NSSA, the Ministry of Public Service, Labour and Social Welfare and the Ministry of Finance, Economic Development and Investment  Promotion should undertake educational awareness programmes on social protection and insurance schemes, including the NSSA Pension Scheme and Occupational Insurance Schemes by June 2025.

It is encouraging to note that NSSA has been undertaking awareness programmes through its liaison officers as well as through various media platforms. However, there is a need to strengthen these programmes to achieve a wider reach, hence, the recommendation is profoundly appreciated. Involvement of the Ministry of Public Service, Labour and Social Welfare and the Ministry of Finance, Economic Development and Investment Promotion will certainly broaden the scope and intensity of the awareness programmes, thereby engendering a better understanding of the design and purpose of the NSSA Pension Scheme as well as the National Social Protection Architecture and the complementary role that private pension institutions are expected to perform.

Recommendation 4.3, Monitoring and Regulation of all Pension Houses:

The recommendation that the Ministry of Finance, Economic Development and Investment Promotion should continuously monitor and regulate the operations and conduct of all pension houses to ensure regular and meaningful payouts is also laudable.

I understand the Ministry of Finance is doing commendable work in this regard through the Insurance and Pensions Commission, IPEC.  However, strengthening and enhancing the regulation and monitoring system can go a long way towards ensuring a dependable and responsible private pension system that can robustly complement the NSSA Pension Scheme and other government social protection programmes.

 In conclusion, the Committee's report resonates well with our overarching preoccupation and aspirations as a Ministry responsible for social welfare as well as those of our agency, NSSA. The report epitomises our pursuit as a nation of a more robust and sustainable social security system anchored on sound complementarity and symbiosis between Government social security systems and private pensions.

 Leveraging on the report's insights and recommendations and my Ministry's unflinching commitment to ensuring social welfare, we will certainly attain a new level in building a strong and sustainable social protection system that affords its beneficiaries adequate benefits and a better standard of living.

Together we can create a pension system that is a beacon of hope, a sanctuary of security and an attestation of our unyielding resolve to build a better future for all Zimbabweans as encapsulated in our national vision, Vision 2030, which seeks to engender an empowered and prosperous upper-middle-income society leaving no one and no place behind. Thank you, Madam Speaker. I submit.

 

THE HON. DEPUTY SPEAKER:  Hon. Zemura, you cannot move for the adoption of the report because the mover of the motion did not write a letter to the Clerk of Parliament.  You can only do that if the mover of the motion writes a letter to the Clerk of Parliament asking the Clerk to allow someone to stand in for him or her.

HON. ZEMURA:  Madam Speaker, I move that the debate do now adjourn.

HON C. MOYO:  I second.

Motion put and agreed to.

Debate to resume: Tuesday, 1^st April, 2024

MOTION

BUSINESS OF THE HOUSE

HON. KAMBUZUMA:  Madam Speaker, I move that the House reverts to Order of the Day Number 3 on today's Order Paper.

HON. C. MOYO:  I second Madam Speaker.

Motion put and agreed to.

MOTION

REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON HURUNGWE RURAL DISTRICT COUNCIL’S AUDITED ACCOUNTS

HON. HWENDE:  I move the motion standing in my name that this House considers and adopts the Report of the Public Accounts Committee on Hurungwe Rural District Council’s Audited Accounts (2022) in the 2023 Auditor General’s Report for Local Authorities.

HON. CHIDZIVA:  I second.

HON. HWENDE:  Thank you very much Madam Speaker for affording me this opportunity to present to the House the Public Accounts Committee Report on Uruguay Rural District Council audited accounts (2022) in the 2023 Auditor General's report for local authorities.

1.0 INTRODUCTION

The Committee resolved to enquire into issues raised by the Auditor General on financial statements for Hurungwe Rural District Council (HRDC) as reported in the Auditor General’s Report on local authorities for the years ended December 31, 2022 and 2023.

2.0 OBJECTIVES OF THE ENQUIRY

The Committee sought to establish the progress made by Hurungwe RDC in addressing audit findings mentioned in the 2022 and 2023 Auditor General’s Reports and the status of implementing recommendations made in the same reports.

3.0 METHODOLOGY

3.1 The Committee received oral evidence and written submissions from Mary Mliswa Chikoka, the Chairperson of Hurungwe Rural District Council and from the management of the Hurungwe RDC led by the Acting CEO, Ms. Mtetwa. The information gathered enabled the Committee to come up with this comprehensive report.  

4.0 COMMITTEE FINDINGS

4.1 Policies

The Auditor- General reported that the council was operating without policies such as donations policy and an IT security policy. This was contrary to best practice which requires entities to have relevant policies in place.

Findings

In response to the audit observation, HRDC informed the Committee that it had crafted 15 policies which awaited full council adoption on the 29^th of October 2024. The policies on information security, gifts and donations were availed to the Committee as supporting evidence. This cleared the observation made by the Auditor General.

Observations.

The Committee observed that the policies became official upon approval by the council on the 29^th of October 2024. 

Recommendations

1. The Committee recommends that the adopted policies must be implemented and always adhered to by HRDC.
2. Policies must be in place at any given time, reviewed, updated and implemented in-line with emerging risks.

4.2 Management of stands

The Auditor General noted that council did not account for one hundred and twenty-one (121) stands contrary to accounting standards which requires land held for sale to be accounted as inventory. 

4.2.1 Committee findings.

HRDC informed the Committee that the 121 stands were part of the 10% commonage and in response to the audit, it had since written to the Ministry of Local Government and Public Works seeking permission to acquire the stands. However, key to note was that the auditors had advised the council to put them in an inventory until the Ministry allocates the stands. In order to ensure the effective management of stands, HRDC has established a land management committee and a land bank, a noble development which will ensure transparency and accountability in land management.

4.2.2 Observations

The Committee observed that failure to maintain a record of such stands in the books of HRDC could provide an opportunity for abuse of the stands under the 10% commonage.

4.2.3 Recommendations

1. The Committee therefore recommends that the Ministry of Local Government and Public Works should come up with a system which ensures that stands under the commonage system are not abused by Hurungwe RDC or any other local authority by 31 March 2025.
2. Hurungwe RDC must make sure that all the 121 stands are recorded as 3^rd party inventory in the council’s record books by 31 March 2025.

4.2 Impairment assessments

The Auditor-General noted that the council did not perform an assessment of impairment indicators of its assets contrary to accounting standards, which requires entities to assess whether there are impairment indicators and to estimate the recoverable service amounts of assets.

4.3.1 Committee Findings

HRDC had conducted training on IPSAS standards and asset valuation as part of its efforts towards adopting the IPSAS framework. In as far as impairment assessments were concerned, the Committee was informed that the assessment of indicators for impairment was in progress.

4.3.2 Observations

The Committee notes the progress being made by Hurungwe RDC towards the implementation of IPSAS and is hopeful that going forward, issues on impairment assessment will be addressed.

4.3.3 Committee Recommendations

1. The Committee recommends that Hurungwe RDC must continue with the current efforts to meet the IPSAS deadline and the Council Leadership (Councillors) must receive progress reports from management to monitor the progress towards IPSAS compliance.
2. The Ministry of Finance, Economic Development and Investment Promotion must monitor progress on the adoption of IPSAS by public entities and report to Parliament biannually.

4.2 Dororowe Road, Shortie Chinhere Road and Chinhere Uroyi

The Auditor-General reported that the council’s reporting mechanisms were not adequate, as a result, the acquittal report indicated a distance of 9.8 kilometres was graded for Dororowe Road and 12 kilometres for Chinhere-Uroyi Road against the actual work carried out of 3.4 kilometres and eight kilometres for the two roads respectively.

4.4.1 Committee Findings

In response to the audit observation, the Committee was informed that that HRDC had improved its reporting mechanism for projects and had since established a monitoring and evaluation committee to carry out project assessments. The former council CEO, engineer and roads technician who were responsible for inaccurate project acquittals were investigated by the Zimbabwe Anti-Corruption Commission and were tried at the courts.

4.4.2 Observations

The Committee observed that deceptive reporting on the road construction progress was a result of lack of involvement of councillors and the council chairperson during the road construction process. The misleading facts on the status of the road construction presented by the then Hurungwe RDC management was clear evidence of misuse of public funds. The Committee further observed that rural district councillors take three months to meet during full council meetings which limits their ability to monitor projects.

• Recommendations

1. HRDC monitoring and evaluation committee must always actively carry out assessments of projects and verify project acquittal with the physical work done on the ground.
2. The Ministry of Local Government and Public Works must capacitate chairpersons of rural district councils to enable them to effectively monitor capital projects being implemented by councils by 30 April 2025.

5.0 PROGRESS TOWARDS ADDRESSING PRIOR YEAR AUDIT FINDINGS AND IMPLEMENTATION OF RECOMMENDATIONS

The council made some progress in addressing audit findings and recommendations raised in the 2021 annual report. Of the 10 audit findings, six were addressed and four were not addressed as indicated below.

• Roads construction and maintenance tool

The Auditor General noted that the finding was not addressed. The council did not have the roads construction and maintenance tool kit at the time of conclusion of the audit.

5.1.2 Findings

The Committee found out that HRDC had budgeted for the toolkit and equipment, however the process was being impeded by poor revenue inflows.

5.1.3 Observations

The Committee observed that Hurungwe RDC does not have the basic equipment for road maintenance, a worrying anomaly in as far as good road maintenance is concerned.

5.1.4 Recommendations

1. ZINARA must consider prioritising Hurungwe RDC with the supply of basic equipment for road maintenance in 2025.
2. Hurungwe RDC devolution funds must be earmarked for heavy duty machinery for road construction in 2025.

5.2 Modernisation of Council Facilities - Karoi Sub-Office

The Auditor General noted that the finding was not addressed. The council did not renovate its council sub office.

5.2.1 Findings

The council had budgeted for the renovation of the Karoi sub-office and had since initiated the procurement process for the renovations.

5.2.3 Observations

The Committee observed that there is now a budget and a procurement process in place, which is a welcome development towards making meaningful headway in modernising the Karoi-Sub Office.

5.2.3 Recommendation.

Hurungwe RDC must have a vibrant property maintenance policy to always modernise its facilities by 31 March 2025.

5.2 Data Recovery Plan and Data Storage

The Auditor General noted that the finding was not addressed. The council did not have a data recovery and storage plan.

5.3.1 Committee Finding

The Committee found out that HRDC has an external back-up hard drive which is stored offsite and has also flighted a tender for cloud computing and the tender which is now being finalised.

5.3.2 Observations

The Committee was satisfied with the progress made so far. The existence of the external back-up hard drive addressed the Auditor General’s finding and the cloud computing will be an excellent additional data storage and recovery system.

5.4 Inconsistencies in age analysis and trade receivables balance

The Auditor General noted that the finding was not addressed. The inconsistencies in trade receivables balance were not corrected.

5.4.1 Committee findings

The Committee gathered that the system had an error which has since been corrected by HRDC.

5.4.2 Observations and recommendations

The Committee noted that the Auditor General’s finding was addressed by the council. 

6.0 PROGRESS ON BRINGING STATUTORY AUDITS UP TO DATE IN COMPLIANCE WITH THE PUBLIC FINANCE MANAGEMENT ACT

6.1 Status of submission of financial statements

The Auditor General noted that HRDC did not submit the 2023 financial statements within the stipulated timeframe.

6.1.2 Findings

The Committee found out that data capturing challenges in the upgraded version of the accounting system and new chat of accounts prevented Hurungwe RDC in submitting its financial statements. This is in contradiction with the provisions of section 49 (c) of the PFMA on the submission of financial statements for auditing.

6.1.3 Observations

The Committee noted that the non-submission of financial statements was a worrying trend within local authorities. Chief Executive Officer of councils were not fulfilling their obligation of submitting financial statements on time. 

6.1.4 Recommendations

1. The Committee recommends that the Permanent Secretary of the Ministry of Local Government and Public Works must initiate disciplinary measures on Chief Executive Officers of councils who are not up-to-date in submitting their financial statements by 31 August 2025.
2. The Committee recommends that the Permanent Secretary for the Ministry of Local Government and Public Works must not approve the 2025 budgets for councils which have not submitted their financial statements.

7.0 Conclusion

The Committee is optimistic that the issues identified by the AG’s report in 2022 – 2023 on Hurungwe RDC will be addressed through conserted efforts of implementing the Committee’s solid recommendations. In this regard, the Committee implores all the tasked stakeholders to take the recommendations made by the Committee seriously so as to ensure financial prudence, restore sanity, transparency and efficiency in the use and management of public funds by Hurungwe Rural District Council. I thank you. 

 

         *HON. CHIDZIVA: I want to add a few words to the report that was presented by Hon. Hwende. My issue is on policies. The challenge that we had with councils is that councils look at policies when they are approached by the Auditor General, yet these things should be in place. They must not wait for the Auditor General. This would bring efficiency in councils.

The other issue that was raised in the report is the issue of stands. We need to ensure that all councils curb against corruption and land barons because there are commonage stands which are sometimes abused by land barons. Then the other issue is the issue of IPSAS. In rural district councils, when people choose councillors, they are chosen by votes not because they are able, not because they are qualified but this is a law which should be introduced by councils as a policy issue so that new councillors are trained to understand what they are supposed to be doing in their rural district councils for the effective running of district councils instead of assuming that they will perform well. So, there must be an induction programme which is done by the RDC, Finance Ministry and the Local Government Ministry, especially regarding IPSAS.

 The other big issue on this report is the issue of the Chief Executive of the Rural District Council, for example, as big as Hurungwe. There is a shortage of resources and the Chief Executive Officer does not have enough logistics, enough transport to go around the council or around the district. Then it becomes a challenge when they cannot cover the whole of Hurungwe.

The last issue that I want to raise is the issue of those who are not declaring or who are not preparing financial statements. The challenge is that even for those who would not have completed their projects, you would find that the budget will be passed for the following year, despite that they might not have exhausted the funds and resources in the past. So, there is need for a recommendation that financial statements should be submitted so that the next budget is approved. This will ensure that they bring proper paperwork when they submit their papers. I thank you.

*HON. KAMBUZUMA: I stood up to talk about Hurungwe RDC. I thank the Chairman of the Public Accounts Committee, Hon. Hwende. We look forward to a situation where when you go to gather information, you must bring comprehensive information from all sides. I stood up to support the issue of financial statements, that they must be there and when things have been done, there must be a difference when the Committee has visited a council.

The Chairman in the report spoke about the devolution fund and about road mechanisation and the need for road construction equipment. These things were bought at one point but you would find that it is difficult for them to reach rural areas. Sometimes they are not found there and this results in people not noting the support of Government. Government cannot continue buying things that were bought. I request that next time when the Committee goes out, there must be an inventory control to check where these things are because you cannot have a situation where the inventory is not known where it is.

I want to thank the Committee for the work they put in. For these stands that were mentioned, that are around 121, which are not known where they are, this is an issue that really needs attention. I am speaking as one of Hurungwe residents who resides under Hurungwe RDC. The request is that when courts are handling a case of corruption in the workplace, there must be closure. Instead of seeing a situation where someone is arrested after abusing devolution funds and other funds, you would find the person coming back to work. This does not help Government but instead, it sabotages the work of Government.

So next time, in the short period that is coming in the near future, please also engage the community instead of talking to office workers only because the community is the one which is on the ground. We need to have punitive laws and measures that would make sure that those who are prosecuted are incarcerated. I thank you.

HON. MADZIVANYIKA:  I would like to raise a few issues to buttress what other colleagues have already said and probably add one or two issues to the dimension of this report of the Auditor General regarding Hurungwe District Council, where the Committee on Public Accounts went on a fact-finding mission to see whether the previously found issues were corrected or regularised by the Hurungwe Rural District Council.

Let me highlight the fundamental issues which are raised. Number one; the issue of non-adherence to International Public Sector Accounting Standards. It is clear from the Auditor General that IPSAS was adopted by Hurungwe Rural District Council but there is non-compliance, particularly to IPSAS 12, which relates to the issue of the vacant and non-completely serviced stands. If you look at the 121 stands according to the Auditor General's report, it relates to stands which were not properly fully serviced and some of them were still vacant. Those stands were not put under the accounts of the Hurungwe Rural District Council as inventory or stock. Whenever we are closing our balance sheet as a local authority, we are supposed to enter all our stocks or our assets that are not being sold. So, anything that was supposed to be sold and was not sold is supposed to be part of the closing stock of Hurungwe Rural District Council. The 121 stands were just vacant and they were not accounted for in the financial statements.

What does it mean Mr. Speaker Sir? It therefore means that there is a breeding of the opportunity for embezzlement of those stands. Under normal circumstances, because they are not accounted for as assets of the Rural District Council, it means they can be tempered with at any material time. So that has to be corrected. The non-adherence to the issue of IPSAS 12 should be corrected.

Secondly, Mr. Speaker Sir, let me also jettison to talk about the issue of failure to properly acquit in a report which entails the issue of the construction of roads or work in progress. There is a mention of two roads Mr. Speaker Sir. The first road is called Chinhere-Uroyi. Chinhere-Uroyi is a 12km road which was  budgeted for under Hurungwe Rural District Council in 2022. It was supposed to be renovated to the length of 12 km but only 8 km was done on the ground.

On the other hand Mr. Speaker Sir, there is another road called Dororohwe Road which was supposed to be a 9.4 km road but on paper, there was submission that we are going to complete the 9.4 km road but only 3 km was done Madam Speaker.  What is the implication of this? What it means is that there was some opportunity for use of outstanding resources. Because if we sit as a Rural District Council to say we have budgeted for 12 kilometers, we have budgeted for 9.4 km but we then do only 3 km, what then happens to the difference? I think as Parliament, it is not enough Mr. Speaker to just say that 3 km was done and this was not done. No, no, no. What then happened to the resources which were budgeted for that purpose? That is the role of Parliament?  We should go further to see what then happened to the budget resource.

Mr. Speaker Sir, let me move on to the issue of when the Rural District Council was asked on why it is taking too long to correct the previous Auditor General’s findings. They indicated that the Rural District Council meets on a full council basis once every three months. In other words, once every 90 days. This situation Mr. Speaker, tells me that there is no urgency in the manner in which things are done at policy level.

It is fundamental that Hurungwe District Council is a very big area and there are many issues that can arise within a period of three months that need attention. So, to say that the council was meeting on a full council basis, once every 90 days is disgrace to the country of Zimbabwe. What does it mean for a Committee of Public Accounts? If you see the quality of decisions that were made after those 90 days, it still leaves a lot to be desired.  If you look at the prior audit findings, out of ten, six were addressed. If you look at those six that were addressed, they are so minor. What is important is the material aspect of the report. It is one thing to address a minor thing. It is another to address a major thing that has got a material effect on the totality of the quality of the service provision by Hurungwe Rural District Council.

The issue of road construction, we have said that the budget was made for 12 kilometers and the budget was made for nine kilometers but less was done. Even up to 2024, when the Committee went on to do its findings, they realised that the roads were still not corrected.  Even when the budget was provided for. That is where my worry is.

Lastly, Mr. Speaker, talking about corporate governance, there is a mention that the Hurungwe Rural District Council operates without policies and procedures. What it therefore means is that the good thing about a policy or a procedure is that a policy gives direction or it gives guidelines or procedures upon which are going to solve or to address some issues. For example, we need to have a policy in terms of the issue to do with the donations.  We do not allow a situation that a director can donate to anyone without a well-placed procedure or a guideline. What will happen is that eventually I can make a donation as long as there is no policy. I can make any donation without any consequence to me and this other person can also come here and make another donation. It will create a lot of chaos in the running of these local authorities.

My submission Mr. Speaker Sir, is that it is fundamental to have policy and procedures because they are the best upon which we are going to have uniformity in the way things are done. We need uniformity across the board. Even when the Rural District Chair is not available, there must be a guideline to say, how do we do this and that? I am glad that they said they have introduced the 15 policies, those 15 policies were not yet signed even up to October.  Imagine when this issue was raised in 2022 but in October 2024, they were not yet addressed, saying that we are going to a full council meeting in October. I think something should be done urgently.

Lastly Mr. Speaker, I wish to challenge Parliament of Zimbabwe. This country has lost a lot of resources. Yes, the Public Accounts Committee has done its work but I think it does not have the power because what the Public Accounts Committee does, is to just issue the recommendations which can be acted upon by someone or not. Can we not also move, if you want this country to ensure that we are going to protect our nation from further embezzlement? Can we allow a situation whereby Parliament is allowed to make instructions than the recommendations because this circus will continue. Mr. Speaker, people should fear because it is one thing to do those investigations but to what end? That is so fundamental.

So, my recommendation also is that can we at least as Parliament, try to ensure that we introduce a clause to the fact that the Public Accounts Committee should issue instructions to the law enforcement agencies to take action than to just live like that. Thank you very much Mr. Speaker Sir.

         HON. MANGONDO: I just want to add a few contributions to the report that has been presented by the Chairman of the Public Accounts Committee, Hon. Hwende. Hon. Speaker, there is a general trend within the local authorities, which shows that there has been a marked deterioration in terms of financial management. There has also been an increase in the number of local authorities that failed to submit their financial statements by the statutes. You will notice that even in this particular report which refers to the year 2022 which was only then presented in the Auditor General Report of 2023, that in fact, the Hurungwe District Council had not complied with the Public Finance Management Act. Otherwise, it would have submitted that report in the 2022 Auditor General's Report.

You will notice Hon. Speaker, that several other local authorities have failed to submit their financial statements in accordance with the demands of the Public Finance Management Act.

Concerning the failure to properly account for assets, that is another area of concern where public entities and in this particular case, local authorities do not properly account for their assets, including stands. The Auditor General has been at pains to call on local authorities to properly account for stands, and there is a problem with regard to stands that would have been subdivided from land that would have been provided by the Government. Where a 10% commonage is supposed to be reserved for allocation to public servants, public civil service employees, these are the stands that have been misused by several local authorities. Where people then convert those instead of them being allocated to the civil service employees, they are then sold on the open market for personal gain.

There is also the issue of local authorities failing to deliver projects on time. There is also the issue of failure to provide services as expected. This is to do with the failure by local authorities to account for resources that would have been allocated to carry out those projects and indeed for service delivery. A lot of this has to do with the fact that local authorities are not collecting the revenue that they are supposed to collect because in some cases they do not even have records of their rate payers. They do not even have adequate records of who owes them what. So, there is need for local authorities to have proper accounting systems and indeed, to migrate from their old antiquated systems to ERP systems, the Enterprise Resource Planning Systems, modern systems of managing resources.

Hurungwe Rural District Council is not an exception and as I said, many local authorities are found wanting in that respect. That is the major reason why local authorities are found wanting when it comes to service delivery. I thought I would just add a few of those contributions. I thank you.

*HON. MAPHOSA. Thank you Hon. Speaker Sir. I want to thank the Chairperson for the report. In most local authorities, it is not that they are not able but they know what they are doing.  It is just that they are corrupt. So, sometimes someone would be taken to court and then they are acquitted. You come to Parliament and you discover that nothing is being done.  Residents are concerned about what is happening in the local authorities. The accounting officer should account. These people are doing things deliberately.

It has become a bad habit. These are people who are qualified with degrees and are educated people. They are not submitting the required documents. They do not have proper databases for their records. So, the accounting officer should be accountable and Parliament should enact laws that are going to be implemented. When someone is incompetent or fails to discharge their duties with fortitude, they must be dismissed. We cannot continue doing that. Where you find that someone steals, they then go back home, they are suspended and they come back to steal again. What we need to see are results. They play their role to a certain extent, but the onus is upon us to ensure that things are done properly, because we cannot have the same trends year in and year out.  Every year, where you find that there is a budget, devolution funds have been distributed but people give excuses that the money is not enough.

We need strong laws that prescribe that an accounting officer should be responsible. Having done that, you discover that there will be efficiency. There must be evidence and sometimes you find that there is evidence of a crime. You find people going to court and being acquitted. So, I am saying that the law should take its course. I thank you.

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

HON. C. MOYO: I second.

Motion put and agreed to.

Debate to resume: Tuesday, 1^st April, 2025.

MOTION

BUSINESS OF THE HOUSE

HON. TOGAREPI: I move that all other Orders of the Day on today’s Order Paper be stood over until Order of the Day Number 9 has been disposed of.

HON. C. MOYO: I second.

Motion put and agreed to.

MOTION

REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON THE ANALYSIS OF THE ZIMBABWE REVENUE AUTHORITY’S FINANCIAL STATEMENTS FOR 2021 AND 2022

        HON. HWENDE:  I move the motion standing in my name that this House considers and adopts the Report of the Public Accounts Committee on the Analysis of the Zimbabwe Revenue Authority’s Financial Statements in the Auditor General’s Reports for the years ended 2021 and 2022

        HON. MANGONDO:  I second.

        HON.  HWENDE:  Thank you Mr. Speaker for affording me this opportunity to present the report on behalf of the Public Accounts Committee.

1. 0 INTRODUCTION

1.1      As part of its oversight role, the Committee resolved to analyse the audited financial statements for ZIMRA as reported in the Auditor General’s Report for the years 2021 and 2022. ZIMRA was identified as a critical entity among State enterprises and parastatals whose performance has a huge bearing on the country’s harnessing of financial resources for implementation of government programmes and activities. As such, the Committee resolved to analyse the authority’s financial statement combining financial statements covered in the 2021 and 2022 Auditor-General’s reports.

1.2      In the Auditor-General’s report for the two years under review, the Auditor-General’s opinions were almost similar. In the 2021 Report, the Auditor-General issued an unmodified opinion on the authority’s financial statements, a qualified opinion on the Outstanding Revenue Return and Revenue Return, unmodified opinions on the Revenue Written Off, Tax Reserve Certificates Return and the Receipts and Disbursements return. In her 2022 Report, the difference from the 2021 report was on Qualified Opinion on the authority’s 2022 financial statements.

2.0      OBJECTIVES OF THE ENQUIRY

2.1      The Committee’s analysis of issues raised on ZIMRA’s financial statements by the Auditor-General is in line with its mandate as spelt out in Section 299 of the Constitution of Zimbabwe and as provided in Standing Order No. 17. Section 299 states as that:

• Parliament must monitor and oversee expenditure by the State and all Commissions ,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 expenditures have been properly incurred; and
• any limits and conditions on appropriations have been observed.

2.2      National Assembly Standing Order No. 17 mandates PAC to examine the sums granted by Parliament to meet public expenditure and such other accounts laid before the National Assembly. It is therefore, the duty of the Public Accounts Committee to give assurance to the House that public funds have been managed and utilised as approved by Parliament and in line with regulatory frameworks.

3.0         METHODOLOGY

  The Committee had two (2) oral evidence sessions with ZIMRA’s Commissioner General, Ms. R. Chinamasa and the Finance Director, Ms. E. Chitanda. The Committee also requested and received supporting documentary evidence which together with the oral evidence formed the basis of the report. The Committee visited the Beitbridge Border Post to verify audit issues raised by the Auditor General.

4.0      FINDINGS, OBSERVATIONS AND RECOMMENDATIONS BY THE COMMITTEE

4.1      Sanitising Booths

4.1.1   The Auditor General observed that the authority procured sanitising booths with specifications which included temperature checking, spraying and dispensing sanitising liquid. However, the sanitising booths at Kurima House, Mutare, Chirundu and Forbes were no longer performing some of these functions at the time of audit.

4.1.2   ZIMRA informed the Committee that with the advent of COVID-19, the authority could not shut down its operations and as such, there was need to quickly put in place mechanisms to ensure that officers were protected from contracting COVID-19.

4.1.3   It also informed the Committee that the booths were a donation from African Development Bank through the Ministry of Finance, Economic Development and Investment Promotion. Further emphasis was made on the fact that all the procurement procedures were handled by the AFDB and the Ministry of Finance, Economic Development and Investment Promotion. It was further emphasised that none of the taxpayers’ money was involved in the acquisition of sanitising booths through Health Pharm.

Committee’s Observation

4.1.4   The sanitising booths were no longer performing their intended purpose.

Committee’s Recommendation

4.1.5   In the future, ZIMRA should ensure that there is coordination and liaison between the intended beneficiary and the donor to ensure that the donated equipment meets its intended use.

4.2      E-Service Platform 

4.2.1   The audit observed that the authority’s E-service platform had not been performing as expected since 2016. It experienced congestion challenges during peak periods of returns submission and in 2021, the system was not able to process all the 364 011 returns and its downtime was 0.45% and 0.95 %, which was far above the tolerable downtime rate of 0.02%.

4.2.2   The Accounting Officer, Ms. R. Chinamasa, confirmed to the Committee that in 2021, the E-service system was non-functional, thus prompting the authority to put in place mechanisms to ensure that taxpayers were able to submit their returns to facilitate revenue collection.  Initially, the authority had used the e-mail facility where people submitted their returns through their personal e-mails. Later in 2022, they developed an in-house solution (E-taxes) to mitigate the challenge the tax payers were facing. The long-term solution was the implementation of the Tax Revenue Management System (TaRMS) which was deployed late in 2023 with a four-life deployment period ending December 2024.

  Committee’s Observation(s)

• The E-service platform's poor performance and frequent downtime had hindered taxpayers' ability to submit returns, potentially affecting revenue collection.
• The authority’s reliance on email submissions as a temporary solution was not a secure or efficient method for handling sensitive tax information.
• The development of an in-house solution (E-taxes) and the implementation of the Tax Revenue Management System (TaRMS) were positive steps, but the delay in deploying TaRMS until late 2023 was a matter of concern.

  Committee’s Recommendation(s)

• ZIMRA must ensure the TaRMS is fully functional and user-friendly by the end of the deployment period, that is December 2025 to prevent further disruptions.
• ZIMRA must develop a comprehensive contingency plan to address potential system failures and minimise downtime by 31 December 2025.
• ZIMRA conducts a thorough review of the email submission process to ensure the security and integrity of taxpayer data, by 31 December 2025.

4.3      Unclassified Deposits 

4.3.1   The Committee noted the observation by the Auditor General that an amount of ZWL$ 1.6 billion included on the Revenue Return had not been receipted and the amounts were not allocated to any tax head by the end of December 2021. This affected the Outstanding Revenue Return as it was not adjusted for these payments when in fact there was a likelihood that they had paid. Some clients then continued to accumulate penalties and interest for outstanding amounts.  

4.3.2   The Accounting Officer attributed the anomaly to some clients who would not have filled in some fields when making payments, particularly when using channels such as ZIPIT and WhatsApp. After transmitting the money to the fiscus, ZIMRA would then start the process of reconciliation by contacting the banks who in turn contacted the customers in order to get the relevant information. On account of the vast number of customers, some cases were successful while others were not successful. The Committee was informed that most cases in the 2021 report were cleared except a few where customers had passed on, or the companies had closed and there was no way of contacting them. To address the challenge, the authority adopted the Single Accounting Times which ensured that a tax payment was allocated to the relevant tax head which then eliminates the risk of unallocated deposits.

Committee’s Observation(s)

• The unclassified deposits of ZWL$ 1.6 billion had not been properly accounted for, leading to misstatement of the Outstanding Revenue Returns and unfair penalties and interest for taxpayers.
• The manual reconciliation process is time-consuming and prone to errors, thereby resulting in unresolved cases.
• The adoption of Single Accounting Times is a positive step towards addressing the issue.

Committee’s Recommendation(s)

4.3.6   ZIMRA must take immediate action to clear the remaining unclassified deposits and update the Outstanding Revenue Returns to reflect the correct position by 30 September 2025.

• ZIMRA must consider implementing a robust taxpayer identification system to prevent similar issues in the future, by 31 December 2025.

• Temporary Import Permits  

4.4.1   The Committee noted the observation by the Auditor General that long outstanding Temporary Import Permits (TIPs) had not been acquitted. A total of 45 700 TIPs had been outstanding as of December 31, 2021. The follow-up procedures, as documented in the CEP0164 that were being applied by stations were no longer effective. 

4.4.2   The issue of TIPs was again observed in 2022 with a total of 26 487 TIPs which were issued and had expired and had not been acquitted as at December 31, 2022. In addition, the authority had issued 43 385 manual Temporary Import Permits during the year. However, the Auditor-General could not establish the number of manual TIPs that had expired due to weaknesses in the internal controls.   

4.4.3   The Accounting Officer submitted that in addition to the automation of the TIPs process, ZIMRA was tracking all vehicles that were coming into the country through the TIPs by mounting roadblocks with the assistance of law enforcement agencies. In addition, the authority was working with local authorities to validate addresses so as to improve the traceability of vehicles.  

4.4.4   The Accounting Officer admitted that the TIPs regime was being processed manually and with a large number of TIPs, the process had been falling short in terms of its management. The Committee was advised that the authority had automated the process and the acquittal rate had improved to around 90%. Taxpayers were now applying online before they got to the border posts when coming in, with ZIMRA conducting validations before the TIPs were issued. On departure, clients were again acquitting online.

  Committee’s Observation(s)

• The non-acquittal of TIPs led to a significant backlog of outstanding permits
• The existing follow-up procedures were ineffective in managing the outstanding TIPs.

  Committee’s Recommendation(s)

• ZIMRA should ensure that the complete automation of the TIP process to eliminate manual errors was completed by 31 December 2025.
• The authority must implement a robust tracking system to monitor the status of TIPs and follow up on outstanding permits, 31 December 2025.

4.5      Travel and Subsistence Policy

4.5.1   The audit observed that the authority`s acquittal and clearance system for travel and subsistence had was not water-tight. As a result, the authority was owed a total of ZWL$73.8 million for travel and subsistence allowances by staff members as at December 31, 2022. This was contrary to the authority’s Travelling and Subsistence Policy.

4.5.2   The Accounting Officer submitted that the late submission of acquittals for travel and subsistence advances had also been identified by an internal audit. In response, the authority had put in place an internal control system. It was submitted that staff was trained to ensure that they appreciate the travel and subsistence policy. On a monthly basis, the authority conducted an age analysis of the outstanding Travel and Subsistence claims and in instances where a staff member had not acquitted in terms of the Travel and Subsistence policy, the authority would recover the money through the payroll.

Committee’s Observations

• The authority's acquittal and clearance system for travel and subsistence allowances was inadequate, resulting in a significant amount (ZWL$73.8 million) owed by staff members.
• The late submission of acquittals was a recurring issue, contrary to the authority's Travelling and Subsistence policy.

Committee’s Recommendations

• In future, ZIMRA should ensure that the internal control systems are strictly enforced to prevent further accumulation of unacquitted travel and subsistence allowances.
• In future, ZIMRA should take disciplinary action against staff members who consistently fail to acquit their travel and subsistence allowances on time.

• Accounting for Leases

4.6.1   The Auditor General noted that the authority had not properly accounted for foreign currency denominated leases in line with International Financial Reporting Standard (IFRS) 16 - “Leases”. The authority had not translated foreign denominated leases using the interbank rate that was prevailing at the time of payment. In addition, lease modifications had not also been accounted for as required by leases standard.

4.6.2   The Accounting Officer informed the Committee that a Real Estate Management Module had been developed and was now operational. The authority had done some dry runs on a quarterly basis to ensure that it bridged the gaps. The departure from the manual process had addressed the observation raised by the Auditor General.

Committee’s Observation

• ZIMRA has taken steps to address the issue by developing and implementing a Real Estate Management Module.

Committee’s Recommendation

• In future, ZIMRA should always adhere to the IFRS 16.

 

• Automation of Revenue Collection Processes

4.7.1   The Auditor-General noted that only four (4) out of thirty-four (34) returns for domestic tax could be filed online. Calculation of civil penalty for late submission of returns (VAT, ITF 12 C, ITF 16) had been done manually as the system could not perform the task automatically.

4.7.2   The Accounting Officer reported to the Committee that with the deployment of the TaRMS, the initial integration of ZIMRA’s internal systems was expected to be finalised by the end of February 2024. She advised that integrations with the Registrar of Companies and the Civil Registry Department to access data for individuals’ identification of taxpayers had been done, as well as integrations with the banks to facilitate the payment of taxes. The authority was looking at integration with other agencies, namely Zimbabwe Investment and Development Agency, Reserve Bank of Zimbabwe and others to ensure that it accessed data and could work around the issue of returns submission. The Accounting Officer assured the Committee that the system had addressed the gaps raised by the Auditor General.

Committee’s Observation

• Potential revenue loss may arise due to the absence of a facility for taxpayers to file their returns online.

Committee’s Recommendations

• ZIMRA should ensure that there was timely completion of the TaRMS deployment and integration with other systems and agencies by 30 June 2025.
• The authority should ensure that all 34 domestic tax returns can be filed online and that the system is user-friendly and efficient by 30 June 2025.

• Classification of revenue

4.8.1   The audit observed that the authority had no integrated payment gateway option to allow clients to pay for their taxes after the submission of returns. As a result, ZWL$ 1 098 billion had not been allocated to any tax head due to insufficient payment details.

4.8.2   The Accounting Officer reiterated that ZIMRA had integrated its systems with banks on 1 October 2023. She submitted that although there had been some teething problems, the

authority had set a deadline of 31 March 2024 to clear the figure.

Committee’s Observation

• The lack of an integrated payment gateway option resulted in ZWL$ 1 098 billion not being allocated to any tax head due to insufficient payment details.

Committee’s Recommendation

• ZIMRA must ensure the integrated payment gateway option is fully functional and user-friendly by 30 June 2025.

• E-filing

4.9.1   The Auditor General noted that the authority’s system had not been well configured to provide clients feedback. As a result, clients were not updated with reasons pertaining to all returns and tax clearances which were rejected by the system during the year.  

4.9.2   The Accounting Officer informed the Committee that prior to the introduction of TaRMS, the authority relied on an old system that used different systems that did not work well together. She explained that within TaRMs, clients could now check their returns or the payments they would have posted.

Committee’s Observation

• The introduction of TaRMs solved the challenges of client feedback.

Committee’s Recommendation

• In future, ZIMRA should ensure that TaRMs is always functional and that it is not affected by downtime.

• Private Imports Debt

4.11.1 The Committee noted the Auditor General’s observation that the customs debt had private import entries backdated to 2015. These were lodged entries by importers who did not then proceed with importations.

4.11.2 The Accounting Officer informed the Committee that the Authority had tried to have a Deferred Tax (DT) system as well as trying to hold goods in lieu of unpaid taxes as strategies to enforce compliance. She highlighted that where the authority was able to trace individuals, payments were being demanded. In addition to the measures outlined above, ZIMRA was also charging presumptive tax for goods with a value of over US$ 1 000.

Committee’s Observation

• The practice of record entering on intended importations creates unnecessary variances and records that may not be completed.

Committee’s Recommendations

• ZIMRA should consistently enforce compliance by holding goods in lieu of unpaid taxes.
• ZIMRA should regularly monitor and follow up on outstanding entries made.

• Destruction of Prohibited Goods

4.11.1 The Auditor General noted that the Chirundu Border Post had no incinerators to destroy prohibited goods. As a result, there had been long outstanding prohibited goods yet to be destroyed.

• The Accounting Officer indicated that some prohibited goods were being destroyed at Beitbridge Border Post but she was unsure about the situation at the Chirundu Border Post.

Committee’s Observation

• There are a lot of prohibited goods and consumables in the warehouses due to the lack of incinerators.

Committee’s Recommendation

• ZIMRA should ensure the Chirundu Border Post is equipped with incinerators to facilitate the timely destruction of prohibited goods by 30 September 2025.

• Redundant Assets

4.12.1 The audit observed that there was no evidence to support the planned storage of redundant assets that were removed from the Beitbridge Border Post during the expansion project. As a result, there were assets that were stored haphazardly in unsecure locations, exposing them to harsh weather conditions and theft.

4.12.2 The Accounting Officer argued that although the authority had not been able to secure storage facilities for the assets, security officers at the border post provided security.

Committee’s Observation

• There is a risk of losing assets due to untimely transfer or disposal of the assets.

Committee’s Recommendation

• ZIMRA should constitute a board of survey that identifies and facilitates asset disposal by 31 December 2025.

• Vehicle Fleet Costs

4.13.1 The audit noted the authority’s vehicles were aged and were incurring significant repairs and maintenance costs. For the five regional offices audited by the Auditor General, there were one hundred and thirty -five  old vehicles, of which forty-four (44) of them were non-runners.

4.13.2 The Accounting Officer submitted that the authority relied on available vehicles, many of which were more than ten years old. She bemoaned the gap between the bids submitted to the Treasury each year and the amount allocated for the procurement of new vehicles. In the absence of adequate funding from the Treasury, the authority remained incapacitated to effectively carry out its mandate.

Committee’s Observation

• The authority did not have proper systems for managing the disposal of aged vehicles.

Committee’s Recommendation

• ZIMRA should constitute a board of survey that identifies and facilitate the disposal of non-runner vehicles by 31 December 2025.

4.14         Buildings

4.14.1 The audit observed that the authority had not been maintaining some of its buildings on time. Some buildings at selected border posts had cracked walls, broken windows and were as a result not secured. The buildings at Chirundu and Kariba stations required more than regular repairs and maintenance. As a result, officers resorted to supplying their own air conditioning systems in the offices.

4.14.2 The Accounting Officer indicated that the authority had always included the costs for maintenance of buildings in the annual budget proposals. She, however, expressed concern that the total expenditure for the authority in 2024, had already eclipsed some budgets due to inflation and as a result the line item for maintenance was likely to be affected.

Committee’s Observation

• Buildings at border posts are not adequately maintained.

Committee’s Recommendations

• ZIMRA should conduct periodic inspections of its buildings, to identify areas of maintenance and establish a routine maintenance plan to prevent further deterioration.
• Treasury should disburse ZIMRA’s budget allocations in the first quarter, to enable the maintenance of buildings.
• The Ministry of Local Government and National Housing should regularly inspect all government buildings.

• Delivery of Vehicles

4.15.1 The Auditor General noted that the authority had not received all vehicles paid for. ZWL $209 million was paid for 85 vehicles but the supplier had delivered fifteen (15) of the thirty-five Toyota Hilux and none of the fifty (50) Toyota corolla vehicles.

4.15.2 The Accounting Officer informed the Committee that the Authority had encountered challenges with Mike Harris when it made a pre-payment in Zimbabwean dollars. The supplier had failed to deliver all the vehicles citing difficulties in securing foreign currency. The matter had gone for arbitration and ZIMRA had lost the case. ZIMRA then approached the Procurement Regulatory Authority of Zimbabwe asking for debarment of the supplier and the High Court granted ZIMRA the case.

Committee’s Observations

4.15.3 The pre-payment made in Zimbabwean dollars has contributed to the supplier's inability to deliver, highlighting potential weaknesses in the procurement of assets in local currency.

• ZIMRA's failure to win the arbitration case suggests potential oversight or mismanagement in handling the supplier relationship and contract enforcement.

Committee’s Recommendations

• In future, ZIMRA should avoid prepayments and only pay when goods have been received.

• Engagement of Fix and Supply Contracts

4.16.1 The Auditor General noted that the authority had not been reviewing/evaluating submissions by contractors on fix and supply arrangements.

4.16.2 The Accounting Officer submitted that the authority had decentralised the procurement unit to regions, and procurement officers were now available to review contractor submissions. A procurement framework has been developed to provide guidance.

Committee’s Observations

• The absence of a systematic review and evaluation of contractor submissions indicates a potential risk in ensuring value for money and accountability in fix and supply contracts.
• The development of a procurement framework is a positive step; however, its effectiveness relies on proper implementation and adherence across all regional offices.

Committee’s Recommendations

• ZIMRA should ensure that there is effective implementation of the procurement decentralisation policy across all regional offices by 31 December 2025.

• Declaration of Interest by the Procurement Evaluation Team

4.17.1 The audit noted that members of the Bulawayo Regional Office Procurement Committee had not declared their interest when evaluating submissions by suppliers, contrary to the Public Procurement and Disposal of Public Assets Act [Chapter 22:23].

4.17.2 The Accounting Officer informed the Committee that the authority had conducted trainings as part of measures to enable the members to adhere to the requirements of the procurement procedures.

Committee’s Observation

• The absence of the declaration of interests by the procurement evaluation team violated the Public Procurement and Disposal of Public Assets Act.

Committee’s Recommendation

• Going forward, ZIMRA should ensure that all those in the Procurement team declare interests in compliance with the Public Procurement and Disposal of Public Assets Act.

• Progress Towards Addressing Prior Year Audit Findings and Implementation of Recommendations

5.1 The Committee noted that the authority was making progress in addressing prior year audit findings. Most of the findings relating to the previous E–services platform had been partially addressed pending full implementation of the TaRMS system. These include duplicate contract accounts, online deposits not allocated to tax heads, outstanding temporary import permits and removal in transit.

Committee’s Recommendations

• ZIMRA should set timelines and strategies to address all outstanding recurring audit issues.
• ZIMRA should expedite the implementation of all the outstanding work on the TaRMS project and ensure all challenges from the previous tax system (E-Services platform) are addressed by 31 December 2025.

• CONCLUSION

The findings outlined in this report underscore the need for ZIMRA to enhance its operational efficiency, particularly in relation to the E-service platform and financial reconciliations. Implementing the recommendations will be crucial in improving taxpayer experience and ensuring accurate revenue collection. Continuous oversight will be required to monitor the effectiveness of these measures and to safeguard public resources. I thank you.

 

HON. MANGONDO: Thank you Mr. Speaker Sir. Let me start by thanking Hon. Hwende for presenting the financial years ended 31 December 2021 and 31 December 2022. As you may have observed Hon. Speaker, ZIMRA is a major Government entity that is tasked with the responsibility of collecting revenues on behalf of the Government. ZIMRA operates in almost all major centres of the country. So, it operates in a decentralised fashion.

The report by the Auditor-General observed a number of weaknesses in the control systems of ZIMRA and these have been highlighted in the report that has been presented by Hon. Hwende. I will pick only a few of those observations that were raised by the Auditor-General.

Suffice to say that Hon. Speaker, the report by the Auditor-General, although covering two years, clearly shows a consistent pattern by the Zimbabwe Revenue Authority to improve on their management of public finances.

I will touch briefly on the issue of unclassified deposits which were reported by the Auditor-General. I think you will notice that a figure of about 1.6 billion in Zimbabwe dollars could not be receipted because...

THE TEMPORARY SPEAKER (HON. NGULUVHE):  Hon.  Members on my left, please, can you lower your voices? Go ahead Hon. Member.

HON. MANGONDO: Thank you Hon. Speaker Sir. An amount of 1.6 billion in Zimbabwe dollars had not been receipted due to the fact that the system that was being operated at the time by Zimbabwe did not allow for a dialogue between the taxpayers and Zimbabwe. So that if indeed there were anomalies, those could easily be picked up and corrected. As a result, you will notice that this issue could not be corrected on time.

However, given the implementation of the new system by Zimbabwe, it is expected that Zimbabwe will have fewer of those problems going forward. As the new system will allow Zimbabwe, whenever they carry out their reconciliations or whenever they fail to account or allocate a particular deposit, they will then be able to take the necessary corrective measures in good time. So, we expect going forward that there will be fewer of those problems.

 I will touch briefly on the issue of travel and subsistence declarations of travel and subsistence allowances by Zimbabwe staff. This Hon. Speaker, pointed to a weakness in the control systems of Zimbabwe because officers are supposed to clear their travel and subsistence allowances as soon as they come back from their trips.

Unfortunately, for the periods that we observed at the Auditor-General, this was not the case. Hence, you had huge sums of money that were still outstanding, which had not been cleared by the officers. This was in breach of the Treasury Instructions as well as the Public Finance Management Act. Your Committee, Hon. Speaker, was satisfied that the Zimbabwe management had taken corrective measures to ensure that there would be less recurrence of those problems.

 I will touch on, Hon. Speaker, the issue of automation of revenue collection processes. As you heard from Hon. Hwende, there were challenges with domestic tax returns which could not be filed online due to the challenges that Zimbabwe had with its system.

 

This situation, Hon. Speaker, has the potential for ZIMRA to lose a lot of revenue, given the fact that there would have been a missed opportunity where clients would have wanted to pay but the ZIMRA system was not working online. ZIMRA management assured your Committee that they were addressing those issues. Indeed, the Auditor-General confirmed that there had been progress in correcting some of those problems.

The same applies to the issue of classification of revenue where Zimbabwe could not allocate within the prescribed financial year, certain deposits that had been made by taxpayers, amounting to the tune of one billion Zimbabwe dollars, because maybe the taxpayers had not filed sufficient payment details. The committee was assured that Zimbabwe had made progress in overcoming the shortcomings of its system and that they were hoping that the new system would take care of those problems.

  I will touch on the challenges that we observed regarding the temporary import payments for vehicles. This is an area where ZIMRA had lost, I would say, control and track of the vehicles; because the large number of vehicles that were still outstanding on TIPs pointed to the fact that Zimbabwe was not keeping adequate track of those vehicles which would then result sometimes, in vehicles avoiding to pay the taxes that would have been due in terms of duties and so forth. Again, as observed, your Committee was assured that Zimbabwe had taken steps to minimise incidences of that nature by introducing a new system, a new tracking system, an integrated system that would ensure that they kept track of vehicles.

In addition, of course, to mounting roadblocks in conjunction with the police to check on the validity of the temporary import permits and so forth.

I will touch on the issue of vehicles Hon. Speaker. The delivery of vehicles is a perennial problem in the Government, Hon. Speaker, in terms of vehicles that have been paid for by Government departments using local currency.  Your Committee will assist with this matter in several departments that were found to be old vehicles by several suppliers and your Committee had an opportunity to engage some of these suppliers. The Committee noted that where a Government department would have paid for vehicles in advance, the supplier would not immediately be in a position to deliver the vehicle or the vehicles, although when they tendered for the vehicles, they would have indicated that they were in a position to deliver those vehicles upon payment.

The challenge, of course, Hon. Speaker, is the sourcing of foreign currency. We observed that in some cases, these suppliers would have been allocated from the foreign currency auction system, but the foreign currency was not then made available for them to be able to buy those vehicles, to import those vehicles in good time. We also observed that in some cases, these suppliers would have depended on sourcing foreign currency from the parallel market and given the fluctuations on the black market, it then became difficult for them to fulfil their contracts.

So, your Committee, Hon. Speaker, feels strongly that this is an area which Treasury and the Reserve Bank should address so that the incidents of Government departments failing to get delivery of their vehicles after they would have been paid using public resources should be minimised.  Your Committee also felt that it was important that maybe Treasury adopt a system where they would pay directly to the supplier of these vehicles in foreign currency. I will briefly touch on the issue of procurement, particularly on the observations that we raised relating to the Bulawayo Regional Office.

 The Auditor-General observed an area of potential conflict of interest, where members of the procurement committee were not declaring their interests before participating in the adjudication of tenders. The Committee observed that this is an area which may result in serious embezzlement of funds, as it does not allow for fair and impartial adjudication of contracts.

We are happy to note, Hon. Speaker…

THE TEMPORARY SPEAKER: Hon.  Mangondo, you have five minutes to go.

         HON. MANGONDO:  Sorry Hon. Speaker.

THE TEMPORARY SPEAKER:  You are remaining with five minutes.

HON. MANGONDO:  Hon. Speaker, you are speaking well but Members to my right are also speaking.  So, I do not know who to listen to – [HON. MEMBERS:  Inaudible interjections.] –

THE TEMPORARY SPEAKER:  Order Hon. Members on my left.  I am saying you have five minutes remaining.

HON. MANGONDO:  Thank you Hon. Speaker.  I would like to take exception to the lady who was saying iwe gara pasi, the lady in pink.  I take great exception.  Hon. Speaker, I would like her to withdraw. Thank you.

THE TEMPORARY SPEAKER:  Hon. Mangondo, can you continue with your debate please? – [HON. MEMBERS: Inaudible interjections.] -  The Hon. Member directly in front of me, the one Hon. Mangondo is talking about.  What is her name, the Hon. Member in front of Hon. Hlatywayo?

HON. GUMEDE:  I never said anything.  I think he saw the wrong person.

THE TEMPORARY SPEAKER:  Stand up.

HON. GUMEDE:  I do not know what he is talking about.  I am blank.

THE TEMPORARY SPEAKER:  Wait, just stand up.  I want to make a ruling.  Please Hon. Gumede, give others a chance to debate.  When you are given a chance, they do not make noise.  So please, give them a chance to debate.

HON. MANGONDO:  Thank you Mr. Speaker for bringing order.  So, the issue of procurement Hon. Speaker, we are happy as a Committee that ZIMRA management had corrected that anomaly and ensured that there was training given to all their regional procurement committees.

Lastly Mr. Speaker, as a Committee, we noted that ZIMRA management were making very concerted efforts to address previous audit findings and to address shortcomings in their management control systems and we applaud the efforts that ZIMRA management and the CEO in particular, made sure that they are within the expected standards.  I thank you Mr. Speaker.

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

HON. C. MOYO:  I second Hon. Speaker Sir.

Motion put and agreed to.

Debate to resume:  Tuesday, 1^st April. 2025.

MOTION

BUSINESS OF THE HOUSE

HON. TOGAREPI:  Mr. Speaker, I move that we revert to Order of the Day Number 4 on today’s Order Paper.

HON. C. HLATYWAYO:  I second.

Motion put and agreed to.

MOTION

ESTABLISHMENT OF AN ACT OF PARLIAMENT ON COMMUNITY SHARE OWNERSHIP SCHEMES

HON. C. HLATYWAYO: I move the motion standing in my name that this House;

COGNISANT that the Constitution provides that ‘the State must ensure that local communities benefit from the resources in their area’;

 NOTING that Corporate Social Responsibility initiatives are not mandatory hence the failure by companies to address the socio-economic needs of communities;

CONCERNED at the unsustainable exploitation of natural resources by companies operating in communities without due regard for Corporate Social Responsibility initiatives;

NOW, THEREFORE, resolves that:

1. a) Community Share Ownership Schemes be established through an Act of Parliament which provides for companies to allocate a mandatory 5% of their profits towards the development of communities they operate in.
2. b) Community Share Ownership Committees be established in all constituencies responsible for identifying and prioritising development projects such as construction of roads, schools and healthcare facilities.
3. c) Community Share Ownership Schemes be extended beyond the mining sector and include other sectors/industries such as agriculture, manufacturing and other resource intensive sectors; and
4. d) mechanisms to hold companies accountable for the socio-environmental impacts of their operations be established.

HON. HAMAUSWA:  I second Mr. Speaker Sir.

HON. C. HLATYWAYO:  Thank you Mr. Speaker Sir.  I rise to move that this House urgently considers the enactment of a mandatory corporate social responsibility by the name Community Share Ownership Schemes (this name is just a proposal that can be altered after the adoption of the motion) for all registered companies operating within communities across all sectors.

Mr. Speaker Sir, this is in fulfilment of the country's national objectives as clearly stated in Chapter 2, Section 13 of the Constitution of Zimbabwe.  Under National Development 13 (4), it states that, ‘the State must ensure that local communities benefit from the resources in their areas’.

This motion Mr. Speaker Sir, seeks to ensure that companies contribute meaningfully to the development of the areas in which they operate and address the adverse impacts which their operations have on local communities.

Hon. Speaker, the essence of this motion is simple but profound. Companies must contribute a mandatory percentage of their profits, a proposal of 5% towards the development and well-being of the communities they work from.  This contribution will be channelled into projects determined by community share scheme committees which will be established in each constituency.

These committees are meant to get the communities more involved in their own developmental affairs in fulfilment of section 13 (2) of the Constitution of Zimbabwe which states that, ‘measures referred to in this section must involve the people in the formulation and implementation of development plans and programmes that affect them’.

Mr. Speaker Sir, these committees will prioritise and oversee projects such as the improvement of road infrastructure, water and sanitation systems, healthcare facilities and educational needs of the community, all areas that are crucial for the well-being of local residents.  

Hon. Speaker, while I acknowledge that the Mines and Minerals Amendment Bill is attempting to address this issue to some extent by incorporating Community Share Ownership Schemes for mining companies, it is prudent Mr. Speaker and timely to expand this principle beyond the mining sector. Sectors such as agriculture, tourism, manufacturing, construction and distribution among other vital sectors in the category of secondary and tertiary industries must also be held accountable for the socio-economic as well as environmental impact of their activities.

These companies have in many instances degraded the very communities they operate in and made profits out of the communities’ sweat and expense. Polluting water sources, damaging roads with heavy machinery and leaving behind a trail of destruction. This motion Mr. Speaker, is therefore crucial because it mandates them to invest in the people and places they are profiting from, thereby leaving no one and no place without a meaningful footstep of their God-given resources.

 

We have witnessed how corporate social responsibility which is currently voluntary has failed to provide meaningful benefits to communities. Since corporate social responsibility is not mandatory, most companies either contribute minimally or do nothing at all. This is why the community share ownership schemes must be compulsory to ensure that communities see real returns on the resources that are extracted, produced and transacted from their land.

In addition Mr. Speaker, the scheme will ensure that local employment is prioritised. Companies operating in these communities must hire from the local population first before looking elsewhere, a proposal of 80% of local employment with required competencies. The supreme law of the land, under Section 14.1 reiterates that the State and all institutions and agencies of Government at every level must endeavour to facilitate and take measures to empower through appropriate, transparent, fair and just affirmative action. This will help marginalised persons, groups and communities in Zimbabwe. This will help to reduce migration, unemployment and stimulate economic activity at the grassroots level. This will also boost the local GDP of these communities.

 Our communities are the lifeblood of our economy yet they continue to suffer under the weight of exploitation with little to no benefit. This motion Mr. Speaker, is not just about holding companies accountable, but about equitable development. As enshrined in our Constitution, [Chapter 2] Section 13.1, “The state and all institutions and agencies of Government at every level must endeavor to facilitate rapid and equitable development and in particular must take measures to bring about balanced development of the different areas of Zimbabwe. In particular a proper balance in the development of rural and urban areas.

It is about ensuring that the profits made from our land are reinvested into the very communities that sustain those companies. I therefore call upon this House to support this motion to ensure a fair, equitable and sustainable future for all Zimbabweans. The time has come to ensure that companies operating in Zimbabwe contribute not only to their profits but also to the welfare and development of our communities.

This is not only for the present day benefits but it will go for generations and generations to come. The 10th Parliament will get into history for enacting a national policy that guarantees genuine empowerment of local communities. A policy that protects community inheritance and God-given resources. This is a clear demonstration of genuine patriotism and statesmanship that empowers everyone. This is for everyone. God bless Zimbabwe. I thank you.

HON. HAMAUSWA: Thank you Mr. Speaker Sir. I want to appreciate this opportunity that you have given me to add my voice to the motion moved by Hon. C. Hlatywayo. I will focus on a few issues in supporting this motion. I would want to start by going back to the history of corporate social responsibility. It has been discovered that corporate social responsibility developed as a response to the concerns that were raised by people in communities about companies that were operating and getting huge profits.

  If you check Mr. Speaker Sir, multinational corporations such as Coca-Cola and Pepsi produce a lot of profits. Some of them have grown so big such that their profits can be equated to the economies of other states. You would find that some multinational corporations are richer than individual states. When you go to the communities where they are operating, such huge profits are not translating into transforming the lives of the people where these companies will be operating from. As a result, you find that where these multinational corporations were operating, they left a trail of environmental degradation. Others have also caused the degradation of the road networks. The road networks are constructed by the Governments of the host nations. As a result, people were only seeing the negative effects of companies operating in their areas but they were left to bear the brunt of the negative challenges.

People were raising these concerns. In responding to these concerns, especially in the developed world such as the USA and Europe, companies then made voluntary steps to give something to the community. They were now doing this through this concept called Corporate Social Responsibility where they were now proving what other scholars such as Friedman. He said proving wrong what such scholars had said when Friedman said that the only corporate social responsibility for companies is their maximisation of profits whereas you are saying companies only focus on maximising profits. Companies then responded through a voluntary approach where they would support, maybe soccer teams and give donations to communities and they were doing this voluntarily. But now, it was found out that this voluntarism approach had its own shortfalls. It was not consistent. At some point, they put in their annual budgets that they are going to use maybe USD50 000 for corporate social responsibility. In actual implementation, companies were not spending that budgeted amount towards corporate social responsibility. It is a disadvantage to the communities and some companies would even choose to spend funds for the budget meant for corporate social responsibility for training their workers and this was not translating into supporting the communities. The essence is, let us take for example Coca-Cola or Delta. When they are operating say in Warren Park, if you go there right now, most of the uncollected waste, they actually show that the empty bottles that you see there are actually from Delta. So, when they give this support, when it becomes mandatory, then it will be actually consistent and it is predictable. Communities can plan now with the companies and they expect to get a certain amount from these companies and it will be implemented easily. We can point saying this year they have contributed so much and they have transformed our communities. The voluntary approach has its own weaknesses.

In its evolution, we can go back to 2001 where the European Commission described the concept of corporate social responsibility as a voluntary approach by companies. They were trying to use it to correct or to rebuild the image that was damaged by companies that were complaining. Als,o it was mainly due to the role of the social media  where it highlights the pollution of water, the destruction of the environment and the companies then will respond. The current trend in the EU is that they are now moving towards a mandatory corporate social responsibility to cover for the gaps that were discovered through the voluntary approach. Other countries Mr. Speaker that have also moved to implement the mandatory corporate social responsibility is Mauritius. In Mauritius, they came up in 2019 with a policy which then mandates companies to cede at least 2% of their profits for the previous year towards corporate social responsibility.

The advantages of mandatory corporate social responsibility is the increased involvement of the people which in our context in Zimbabwe will be a road towards the fulfillment of Section 13 of our Constitution. Section 13 of our Constitution actually says the Government in fulfilling the spirit of Section 13 must involve the people in planning and execution of the development plans. If there is a community share ownership scheme, then this will be the implementing arm. Definitely the people within that community will be involved in the planning and also in the implementation. We see that mandatory corporate social responsibility will increase the involvement of the people, which is something that we all cry for in our country that  people must be involved. When the people are involved, then we will see a remarkable development.

There is also going to be increased transparency. When companies are doing it voluntarily, they can give an excuse that the previous year there was COVID, we did not get much profit, so we could not offer corporate social responsibility. But if this becomes mandatory, it then means that the responsible authorities will also be able to track their profits and the release of the funds will also become transparent and there is an implementing committee in the form of a community share ownership scheme. This will make it easier even for the general public to also check what has been going on to the accounts of the community share ownership scheme and what has been disbursed towards the funding of development projects and plans. If it is voluntary, the funds can be given to local leaders and without the involvement, no one can question a company that has built maybe a house for the chief without involving the people. No one can question why companies decided to maybe build toilets. The involvement of the people in the transparency will also lead to enhanced accountability. Companies will be accountable to the local people where they are operating because CSR becomes mandatory. The other thing that will happen is that they will be implementing consistent programmes.

As I said, one of the weaknesses of the voluntary approach was that it was not consistent because companies would choose to do donations, choose to do training, something that was found even by developed countries like by the EU that this is not working. What is now working is that we have to move towards mandatory corporate social responsibility. If you check with even the level of the Constituency Development Fund that we are given here in Zimbabwe per constituency which is USD50 000 but if you have companies operating in your constituencies, you will find that maybe in some cases the funds can even go up to a quarter of a million, USD200 000 or so, which is even much better. Our people will be happy. The people whom we represent will be happy because there is this corporate social responsibility. If it is not there, the danger is that you see companies fighting the people who are locals to areas where they are operating.

I will give you an example. In Warren Park, there is a certain shop and the vendors were complaining that the owner of that shop who happens to be a politician had to bring in police to make sure that the vendors were not there. He directed Proton to sell bread to his shop. Then it becomes a problem. When there is mandatory corporate social responsibility, that social contract will happen whereby no company will just chase away vendors without sitting down, without giving dialogue or space. If companies are not mandated to work with the people, they come as enemies to the people. They will not consider that they are making profits as a result of those people buying from their shops. They come as enemies. This is something that we need to deal with and it is actually in line with global trends. In Zimbabwe, who are we to be going against the wind? The wind is blowing to the West and we have to join the wind. This is the good wind which brings positive change to our local people.

However, when we raised this motion, I support it. I am aware of the anticipated challenges. We anticipate that there will be challenges but I am highlighting these challenges so that we also think outside the box on how we are going to deal with these challenges.  We might face resistance from companies as I quoted Friedman who said the only focus of multinational companies is to maximise profits.  Mr. Speaker Sir, if they want to maximise profits they are likely to resist this move but there is a need for the Government, for responsible authorities to actually have a dialogue with these companies.  They have to be strong in coming up with this policy and allow engagement with all stakeholders and with all companies.  I think if this policy is well marketed all companies will be supportive because there is an advantage that when they do consistent corporate social responsibility...

THE TEMPORARY SPEAKER:  Hon. Hamauswa, you are left with five minutes.

HON. HAMAUSWA:  If they do consistent corporate social responsibility, companies will improve their images and when they improve their images, it means that they increase production. They also increase their sales and it means that they are going to increase their profits.  It is good for the companies as well.  Companies are also likely to say in Zimbabwe, they have to meet the requirements of numerous taxes. This is another challenge that we anticipate.

However, Mr. Speaker Sir, they are already doing corporate social responsibility. What we are only asking is that this is not an additional tax but we are saying their corporate social responsibility must be guided by the Government and there must be an implementation arm such that whatever they are going to be doing is predictable, consistent and there is accountability. There is another challenge that we anticipate, which is that in some cases where few families dominate the business sector as is the case in Mauritius, whereby few families dominate the business sector - there was a challenge now that they also resisted the implementation of the mandatory corporate social responsibility.

I am raising these things such that when we are adopting this in Parliament, we are also aware that we may face these challenges.  As we are implementing, everyone is actually going to benefit. If the companies are operating in an area and the people are happy, there is no need to resist this because the people will still give back the money to these companies that are operating in those areas.

Mr. Speaker Sir, I implore this House, the Honourable Members, to go and research more on the corporate social responsibility and that when it is debated again in this august House, we all support this move.  This will enable the people we represent to actually benefit from the companies that are operating. To the companies operating in Zimbabwe, this is not a fight against them but this will actually enhance their relationship with the communities. I so submit, Mr. Speaker Sir.

THE TEMPORARY SPEAKER:  Thank you Hon. Hamauswa.  Hon. Members on my left, why do you like kangaroo courts? You are making too much noise. I do not want to mention names but most of you, those sitting next to each other are always making noise – [HON. MEMBERS: Uku hakuna vanhu] – Order! It is not an issue of hakuna vanhu. 

         *HON. MAPIKI: Thank you, Mr. Speaker. I would like to thank and support this motion which was tabled by Hon. Hlatywayo.  It reminds me of the days when we were in Bulawayo for the budget session. We had a meeting whereby we discussed the issue of people who are into business and that they should ensure that they should pay back to the community.

I would like to support the mover of the motion that you have tabled. Mr. Speaker Sir, Zimbabwe is a very rich country.  It has its wealth to the extent that if we follow the strategy which was tabled by Hon. Hlatywayo, we will never borrow from any other country. Zimbabwe is not the only country which is doing what was mentioned by the Hon. Member. Those who once read about Burkina Faso with His Excellency Traore, is the same issue that he is focusing on. A lot of companies which were extracting minerals from their country are now asked to pay a tax. They do not have to just come and benefit without paying back to the constituents. Even if you are invited to a beer hall to say you want to drink, they will end up calling you a poacher.

We would like to ensure that we have a good relationship with those companies. What I was suggesting is that when he mentioned the Community Share Ownership Trust, we once did this and we proposed 10%. If I got him well, he mentioned 20%.  In Bulawayo we mentioned it and we had suggested that they must pay back 2%. I am still suggesting that we have to maintain the 10%. These funds should be paid, especially when they are starting to do their consultation to see the effect of the project that they want to do in those areas.  They must involve the councils.  As they will be renewing their licence on an annual basis, they must fulfill their promises that this is what they promised and this is what they are paying back to the community.  Honestly, important things are being extracted from our areas.

I am kindly supporting the mover because it has to be open. Mr. Speaker, even when they focus on road construction, they must not only focus on the area where they are operating. If the road is connecting to where they are going to extract those minerals, one person will only be benefiting himself.  If they drill boreholes in those areas, fine, but we do not have to look into that. They must be tasked to say this is what you have to do. It has nothing to do with the interests or anything that he is focusing on.

Mr. Speaker, those should be taken out openly.  When it is happening, people should invite headmen and chiefs in those areas.  Long back, the people could pledge and they could promise what they could not fulfill.  We need to have a mandatory law. Such a law should then be attached to those people whenever they want to renew their licences on an annual basis. Their jobs should actually be seen as well because we cannot focus on the area without the workers.  Some of them are abusing those workers and they are not paying them equally. They must look into it to say how is the remuneration for those workers? They must not only be asked to work without being paid. That will then make us proceed in the welfare of the companies. If we look at my area in Shamva, we have a company which came from Canada. They actually went on to bring back to the community. They built a school which is worth 1 300 000. Those are some of the things that we expect those big companies to be injecting back to the community, not only to drill boreholes which are worth USD1 000 and then we go around applauding them to say they have done something.

I was expecting to have a minimum amount to be pegged for those companies according to their sizes. I do not think those companies which were referred to can run away or they can fail to invest. I remember in the previous Parliament, people used to pay 51% and this was for the local investors and then the 49% goes to the to the foreigners. If we look into those rural areas mines, they now have what they call heap lynching whereby they gather a lot of sand and then they apply the chemicals then those small mountains will dissolve.

Whatever they are doing, they are actually harming the environment. It is dangerous for those citizens in those areas. I think from what Hon. Hlatywayo said, it is very good and I expect economic gains by Burkina Faso. I think that is where Hon. Hlatywayo studied because all those people who used to do business are now doing well.

If we look into schools, we have some private companies and   private schools. Of late, we never had any benefit from them. As from now, we have to look into them and we have to consider them. If they have built their private schools, they also have to inject some of the funds into the private schools, they have to look into the Government schools and assist them.

We have various donors who come into this country, some of them might be working on things to do with HIV and AIDS. They must do something. They have to pay back to those hospitals. If it is a company, if it is an organisation which is coming to say we are working on HIV and AIDS, on how they are doing, yes, we understand, but they will be receiving quite a lump sum of amounts from foreign nationals. We are suggesting that those hospitals that are somewhere close by, have to chip in. They have to pay a certain percentage to the Government hospitals.

So, we have other organisations like in Shamva. We have DAPP, which is Humana People to People but sometimes if you look into them when they write proposals to fundraise, they might get a lot of money. Whenever they will be paying back, we need a certain percentage to assist those various people within the constituencies. That will then make our country to be self-reliant because we have everything of ours. We have a lot of companies which are situated in Great Dyke where we have several minerals. Some of them would say we need to have different categories of amounts of funds depending on the size of the company. If we look at these trunk roads, for example, the road from Bindura to the border - if we look into those roads and if you look at companies which are taking ores from the border coming here to Harare, those companies are paying toll fees only. It has to be looked into to say if they are ferrying their ores from a distance, they must be paying or they must be repairing those roads not considering the taxes which they are paying and not to keep the Government busy. We need to have a very clear policy or a law because we will never have a budget to say this road should be repaired.

Mr. Speaker Sir, I have discovered some of the Hon. Members are feeling sleepy. I am strongly supporting the motion by Hon. Hlatywayo.  Thank you so much. We are together.

HON. C. HLATYWAYO: I move that the debate do now adjourn.

HON. CHARLES MOYO: I second.

Motion put and agreed to.

Debate to resume: Tuesday, 1^st April, 2025.

On the motion of HON. KAMBUZUMA, seconded by HON. CHARLES MOYO, the House adjourned at Two Minutes past Five o’clock p.m. until Tuesday, 1^st April, 2025.