By Staff Reporter
Public Service Minister July Moyo and Higher and Tertiary Education Minister Fredrick Shava have been ordered to pay back ZWG200 million which their respective ministries borrowed from critical funds without seeking approval from the Treasury.
High Court Judge Justice Gladys Mhuri ordered the two ministers to reimburse ZWG206 370 840 to the Sustainable Livelihoods Fund, the Child Welfare Fund, the Older Persons Fund, the Industrial Training and Trade Testing Fund and the Skilled Manpower Trade Testing and Certification Fund, within three months.
The ruling follows a successful lawsuit by Marvellous Kumalo, a former opposition legislator, who accused the duo of disregarding the provisions of the Public Finance Management (Treasury Instructions), 2019 and that of the Constitution, when they borrowed money from several funds, established by the government to assist and cater for the less privileged, without seeking prior approval from the Treasury.
Khumalo filed his application on 24 September 2024 through lawyer Tonderai Bhatasara of Zimbabwe Lawyers for Human Rights.
He argued that the failure of the two ministers to seek prior approval of the Treasury before borrowing from the critical funds, established by the government to cater for the development and promotion of the welfare of children and protection of children and young persons including to cater for the welfare and needs of aged people and to also support some skilled workers, is unlawful and is clearly against the principle of transparency and accountability guaranteed in section 298(1)(a) of the Constitution.
“The former St Mary’s constituency legislator argued that his right to proper administration of public funds that fosters transparency and accountability by government officials had been violated by the conduct of the ministers, which is a violation of section 116 of the Public Finance Management (Treasury Instructions), 2019, which prohibits accounting officers from borrowing money from funds within their ministries for purposes of financing appropriation budgets without prior written authority of the Treasury.
“According to Hon. Kumalo, the borrowings were done in four years spanning from 2019 to 2023 and were reported and revealed in the Auditor-General’s Report of 2023, where Hon. Moyo and Hon. Shava disregarded the provisions of the Constitution and of the Public Finance Management (Treasury Instructions), 2019, by borrowing funds from Sustainable Livelihoods Fund, the Child Welfare Fund, the Older Persons Fund, the Industrial Training and Trade Testing Fund and the Skilled Manpower Trade Testing and Certification Fund, without following laid down procedures such as obtaining prior approval from the Treasury,” said ZLHR.
JUST IN: MINISTERS CONVICTED FOR BORROWING DELINQUENCY IN LANDMARK LAWSUIT
A Zimbabwean court has convicted 2 ministers for violating the country’s laws in a landmark case in which they were ordered to pay back more than ZWG200 million, which they borrowed from critical funds, pic.twitter.com/6ZYtY6qEBs— ZLHR (@ZLHRLawyers) October 29, 2024
Khumalo said he had been motivated by the need to uphold principles of public financial management as set out in section 298(1)(a) of the Constitution and to ensure that transparency and accountability are respected and that public funds are handled in a manner in which they are not exposed to corruption and abuse.
Justice Mhuri ordered Moyo to reimburse ZWL$515 657 986 converted to ZWG206 368 508 as at 5 April 2024, which was borrowed from the Sustainable Livelihoods Fund within 90 days and for the Public Service, Labour and Social Welfare Minister to reimburse ZWL$3 544 915 converted to ZWG1 418 69 as at 5 April 2024, which was borrowed from the Child Welfare Fund within 90 days and for him to reimburse ZWL$153 468 converted to ZWG61.49 as at 5 April 2024, which was borrowed from the Older Persons Fund within 90 days.
The judge ordered Shava to reimburse ZWL$5 250 converted to ZWG2.10 as of 5 April 2024, which was borrowed from the Industrial Training and Trade Testing Fund within 90 days and for him to reimburse ZWL$2 123 558 converted to ZWG849.86 as at 5 April 2024, which was borrowed from the Skilled Manpower Trade Testing and Certification Fund within 90 days.
Justice Mhuri also ordered the two to seek the Treasury’s authority for all the borrowed money from the Sustainable Livelihood Fund, the Child Welfare Fund, the Older Persons Fund, the Industrial Training and Trade Testing Fund, the Skilled Manpower Trade Testing and Certification Fund, within 60 days of the granting of the court order.
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