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New laws to punish errant ministries on cards, say
The Herald (Zimbabwe)
November 21, 2006

http://www1.herald.co.zw/inside.aspx?sectid=11563&cat=1&livedate=11/21/2006

THE Ministry of Finance will soon introduce two new laws to punish errant ministries and parastatals that fail to account for the money allocated to them under the national budget.

This was said by the Minister of Finance, Dr Herbert Murerwa, in response to criticism by parliamentarians over his failure to table Government expenditure before the House for the past six years.

The Parliamentary Portfolio Committee on Public Accounts also criticised the minister for not seeking the House’s approval before borrowing money above the stipulated threshold and failing to make public utilities account for funds they draw from the fiscus.

In response, Dr Murerwa said he was equally concerned by the failure by line ministries to table reports before Parliament but said he had very little say with respect to parastatals falling under other ministries.

He said his ministry had failed to produce a consolidated revenue report owing to incapacity by the Government caused by staff shortages.

He said two Bills were on the cards that provide for penalties and sanctions for those ministries that failed to acquit money they get from the fiscus.

The Public Finance Management Bill and Audit Service Bill will soon be tabled before the House and would punish errant ministries and parastatals, said the minister.

He said he could not, however, fast-track the Bills to come before the 2007 National Budget presentation, which he said would be tabled in 10 days time.

The committee, chaired by Glen Norah legislator Ms Priscilla Misihairabwi-Mushonga (MDC), took exception to the failure by Dr Murerwa to table before the House in the past six years a consolidated financial report detailing Government expenditure with respect to all ministries.

The committee expressed disappointment with the fact that all parastatals — getting the bulk of their funding from the fiscus — had not tabled any report of their expenditure as required by the Comptroller and Auditor General.

The committee said the minister failed to seek approval from Parliament when he borrows more than 30 percent of the Government revenue as required by the Constitution.

Parastatals and other State enterprises, the committee noted, had not produced audited reports for the past six years, yet they are quick to do so when called upon by the Reserve Bank of Zimbabwe as a condition to receive funding.

The legislators said various funds, some of which fall within the Ministry of Finance, had not been accounted for before the House.

These include the Drought Relief Fund, Social Dimension Fund, War Victim Compensation Fund, Housing and Guarantee and Agricultural Research Fund among others.

The committee suggested that parastatals and ministries that failed to account for the previous budgets should not get funding until they acquitted themselves.

It was also felt that it was prudent that the committee gets Treasury minutes as that might clear some of the issues.

"We are very disappointed as a committee, because we seem to have continuously raised the same issue but nothing has changed as you have not responded to them," said Ms Misihairabwi-Mushonga.

"The scandals we have read in the media are a reflection of the problem we have. It’s you who give these parastatals money but you do not follow up on your dollar to see how it has been used."

Masvingo Senator Cde Dzikamai Mavhaire (Zanu-PF) said it was strange that the minister did not care to report to Parliament about Government expenditure but the same minister would still want the same House to approve his budget to make another round of expenditure which he does not account for.

"You expect Parliament to pass the budget vote when you are not accounting for it. Where are you placing Parliament? Do you take Parliament seriously kana kuti munongoti hapana zvavanotiita?" said Cde Mavhaire.

"We have 87 parastatals and not even one has accounted for its money, including the University of Zimbabwe where we have the most highly educated people.

"Some chief executive officers of these parastatals are highly qualified but they are not producing these reports, this is mere negligence."

In response, Dr Murerwa said he was equally concerned by the failure by line ministries to table reports before Parliament but said he had very little say with respect to parastatals falling under other ministries.

Dr Murerwa said withholding funding, while noble, was not the best option because there were other critical ministries like Health and Defence.

Dr Murerwa said he has always sought Parliament approval in retrospect when presenting his annual budget when he borrows above the 30 percent threshold, a point that was disputed by the committee.

He said his ministry will proceed to produce a consolidated financial report with or without other ministries and those ministries who fail to submit their reports to his ministry will have to explain themselves to the House.

"I certainly share with Honourable Mavhaire’s sentiments that if you don’t acquit yourself you do not get money, but that is a tough approach because that depends on the service the ministry offers," he said.

"The Bills are coming and they have been inspired by concerns raised by your committee and that of Budget and Finance. Some movements have been achieved to tighten things and I think the introduction of these Bills would be a milestone aimed at creating efficiency and value for money.

"In exceeding the limit, this is a factor of unanticipated expenditure that we incur like Air Zimbabwe is experiencing challenges we have to chip in, the same with Zinwa."

Other committee members include Pelandaba-Mpopoma Senator, Mr Greenfield Nyoni (MDC), Lobengula-Magwegwe Member of the House of Assembly, Mr Fletcher Dulini-Ncube (MDC), Chief George Chimombe of Manicaland (Non Constituency), Mufakose, Kuwadzana and Dzivaresekwa Senator, Cde Sabina Thembani (Zanu-PF) and Kadoma, Sanyati and Ngezi Senator, Cde Chiratidzo Gava (Zanu-PF).

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