THE High Court has ordered two ministers to reimburse Treasury ZiG200 million which was meant to cater for the welfare of the poor, the elderly and other vulnerable citizens in the country.
Public Service, Labour and Social Welfare minister July Moyo and his Higher and Tertiary Education ministry counterpart Fredrick Shava allegedly dipped their hands into critical funds in their respective ministries without seeking approval from the Treasury.
Former opposition lawmaker Marvellous Kumalo took the two ministers to court accusing them of disregarding the provisions of the Public Finance Management (Treasury Instructions), 2019 and that of the Constitution.
They allegedly did not follow procedure when they borrowed money from several funds established by the government to cater for the less privileged members of society.
The application was filed on September 24, 2024 at the High Court in Harare.
In his application, Kumalo, who was represented by Tonderai Bhatasara of the Zimbabwe Lawyers for Human Rights, argued that the failure by the two ministers to seek prior approval of the Treasury before borrowing is unlawful and is clearly against the principle of transparency and accountability guaranteed in section 298(1)(a) of the Constitution.
Keep Reading
- Fresh land invasions hit Whitecliff
- Pomona cash row escalates
- Border Timbers targets European markets
- SA name strong A side for Zim tour
The former St Mary’s constituency legislator argued that his right to proper administration of public funds was violated by the conduct of the ministers.
He said the ministers also violated section 116 of the Public Finance Management (Treasury Instructions), 2019.
The section 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 Kumalo, the borrowings done between 2019 and 2023 were revealed in the Report of the Auditor-General on Appropriation Accounts, Finance and Revenue Statements and Fund Accounts for the year ended December 31, 2023.
They allegedly illegally borrowed funds from Sustainable Livelihoods Fund, the Child Welfare Fund, the Older Persons Fund, the Industrial Training and Trade
Kumalo submitted that on or around 2021, the Public Service minister borrowed ZWL$39 664 164 from Sustainable Livelihood Fund.
In 2022, Moyo also borrowed ZWL$106 186 447 from the fund, while another was borrowed ZWL$369 807 375 the following year.
Kumalo further submitted that the ministry in 2021 borrowed ZWL$3 544 915 from the Child Welfare Fund and the money remained outstanding as of 2023.
In 2022, the ministry also borrowed ZWL$153 648 from the Older Persons Fund and the money remained outstanding as of September 2023.
He further stated that around 2019, the Higher Education ministry borrowed ZWL$5 250 from industrial Training and Trade Testing Fund, a fund under its management.
He said the same ministry also borrowed ZWL$2 123 558 from Skilled Manpower Trade Testing and Certification Fund in 2020 in Violation of section 116(9) of the Public Finance Management (Treasury Instructions) Act, 2019.
The advanced money remains not reimbursed as confirmed by the Auditor-General.
In filing the application at the High Court, Kumalo argued that he had been motivated by the need to uphold principles of public financial management.
High Court judge Justice Gladys Mhuri ordered Moyo and Shava to reimburse ZiG206 370 840 which they allegedly illegally borrowed within three months.
Mhuri also ordered Moyo and Shava to seek the Treasury’s authority for all the borrowed money within 60 days of the granting of the court order.