By RICHARD MUPONDE

The Zimbabwe Anti-Corruption Commission (Zacc) has arrested 10 Zimbabwe Revenue Authority (Zimra) officers and agents based at Beitbridge Border Post over alleged smuggling of 433 vehicles into the country.

Four supervisors are still under investigation, of which one of them has since been suspended after being implicated in the scam.

In a statement released on Wednesday, Zacc confirmed the arrest of the officials, who are likely to appear in court today.

“A team of Zacc officers on the above-mentioned operation have achieved the following. About 10 Zimra officers and agents have been arrested and they are likely to appear at Beitbridge Magistrates’ Court probably by end of this week. Four supervisors are also implicated in the smuggling scam and one supervisor was suspended and the other three are still at work. There are three companies which were contracted by Zimra to clear vehicles and goods, (and they) were also arrested and are likely to appear in court as soon as possible,” Zacc said.

According to a section of the Customs and Excise Act, any person who smuggles any goods shall be guilty of an offence and liable to a fine not exceeding level 14 or three times the duty-paid value of the goods, whichever is the greater.

The offence also attracts imprisonment for a period not exceeding five years or both.

Offenders are also liable to paying costs of investigations, where smuggled goods were discovered by the use of any mechanical scanning device.

A fortnight ago, Zimra recalled 433 vehicles after it was detected that they were smuggled and did not pay customs and excise duty.

Zimra officials, allegedly working hand in glove with some unscrupulous shipping agents or third parties, are believed to be behind the scheme, whose epicentre was at Beitbridge, the country and region’s busiest port.

The scheme, run by various syndicates, was exposed after some vehicles were intercepted by the department and other government agencies.

Other ports might have been involved in the scam, which exposes how porous the customs and excise systems could be.

The government recently enacted another legislation that provides for the forfeiture of any goods or assets deemed to have been acquired from proceeds of crime.

At Beitbridge, some shipping agents known to have been beneficiaries of this smuggling ring have built massive houses and drive expensive vehicles.

Zimra spokesperson Francis Chimanda asked for questions to be emailed to him, but had not responded at the time of going to print last night.

DANCEHALL president Winky D is set to honour his multitude of fans by having them coin the title for his new album to be officially launched at the Harare International Conference Centre on New Year’s Eve.

BY WINSTONE ANTONIO

The musician’s manager, Jonathan Banda, told NewsDay Life & Style on Wednesday that they will use interactive platforms to get the fans’ input.

“We would prefer to use the interactive platform like Sasai where people will interact and probably come up with the album title,” he said.

Banda, however, said the decision to launch the album on December 31 was not a result of pressure from fans, although calls for new material had reached fever pitch as the musician had only released the duet MuGarden alongside Gemma Griffiths this year.

“There was no pressure from the fans, but it was the feedback from the fans which gave us the sense of self-assessment as a democratic musical family. The fans look after us and we look after them and nobody should feel guilty about that,” he said.

Winky D, who announced the album launch date on his Facebook page, said the event will be used to shut down the year as he continued to attract corporate brands courtesy of his clean lyrics and professional approach to music.

“Blessed MaGAFA the wait is over, let’s SHUTDOWN 2019 in style. Supported by Ownai Online Marketplace, EcoSure, Sasai Global #haisikidsgame (sic),” he posted.

Although the poster advertising the launch has no supporting acts yet, Banda said they will be joined by other artistes.

“Music is a promotional platform, so there is no way we can go solo at the launch. We are not selfish. Will do it with others just like what we did the last time,” he said.

Winky D’s brand continues to attract corporates and the launch has also received endorsement from some of the prime corporate brands EcoSure, Sasai and Ownai.

The artiste’s music has also hit a popular chord with mainly young people in high-density areas struggling to find jobs against the grim backdrop of high unemployment and pervasive poverty.

A FORENSIC audit on the 2014 African Union Sports Council (AUSC) Region V Under-20 Youth Games hosted in Bulawayo has unearthed massive financial impropriety involving over US$5 million, with senior government officials and members of the security forces among those fingered in corrupt deals.

BY HENRY MHARA

The report, dated March 13, 2018, shows that millions of dollars could have been embezzled through poor financial management, excessive pricing, non-delivery of goods and services, substandard works, contract incompetency, payment to dormant shelf companies, fraud and other various corrupt deals.

NewsDay is in possession of the report compiled by Deloitte, which shows that the government availed US$17 733 566 for sport infrastructure refurbishment and other operational expenses for the games.

However, a huge chunk of that money was allegedly misappropriated or abused.

All the corruption and embezzlement of the funds happened under then Sports minister Andrew Langa, who lost his ministerial post the following year.

Langa had initially set a budget of US$46 million for the preparations and hosting of the games, but government availed $17 million.

He claimed after the games that the sporting facilities had been refurbished to meet international standards.

The hosting of the games required refurbishment of Barbourfields, Luveve and White City stadiums, Bulawayo Athletic Club (BAC), Bulawayo Swimming Pool and the Games Village at Hillside Teachers College as well as the procurement of ancillary equipment, goods and services.

But the government was not satisfied with the workmanship in relation to amounts paid and owing to contractors for work that had been done.

The government in May 2016 then requested that a forensic audit be done on the AUSC Games, which has since unearthed massive corruption.

The corrupt deals included awarding of contracts to companies without following tender procedures.
Raising eyebrows was the awarding of contracts to Drawcard Enterprises and Gimtrac for the rehabilitation of sports infrastructure to the tune of US$1 179 993,49 and US$2 091 040, respectively, without adhering to tender requirements.

Hillary Mukaratirwa, the director architectural services in the Local Government, Public Works and National Housing ministry, said they awarded contracts to the two companies without going to tender “due to the limited time before the commencement of the games”.

Drawcard’s work included the laying of a tartan track at the White City Stadium. But the report noted that they did a shoddy job and 300m of the track requires relaying and over US$1 million is needed to redo the job.

Three other companies; Olimas Engineering, Nextchir Construction and Asphalt Products, were also awarded contracts worth thousands of dollars, without meeting tender requirements. Inevitably, they either failed to do the job completely or did substandard work.

Olimas Engineering got a contract for US$214 923 for the installation of the heating system at Bulawayo Swimming Pool and years after the games, the system is non-functional.
The report also shows that there were companies on the creditors’ schedule, who were not owed as they were either paid in full or did not supply goods or services. Five suppliers with a total claim of US$7 968 appeared on the schedule.

Fifteen suppliers with invoices amounting to US$96 450 could not be located, with most of them having ceased operations or were “unknown at the given addresses”.

Local organising committee (Loc) chief accountant David Mubariki could not explain the reasons for the existence of the entities on the list.

The list also showed that there were claims of unpaid travel and subsistence allowances for Loc officials. A total of US$ 317 305 in allowances owed could not be substantiated through appropriate documentation such as authorised claim forms. There was no documentation detailing to whom these allowances were due.

The Loc officials were accused of increasing their daily allowances without following due process. Treasury set the daily allowance for bed and breakfast, lunch and dinner at a total US$55 a person, but the officials were paying themselves US$150 instead.

Instances of poor financial management and weak internal control resulted in the payment for goods valued at US$2 216 328 without appropriate documentation such as internal requisitions, three quotations and purchase orders. An amount of US$131 825 was withdrawn from one of the Loc FBC Bank account, but could not be traced to payment vouchers.

“The use of cash increases the risk of misappropriation and/or theft. US$131 825,91 cannot be traced to payment vouchers indicative of an expenditure unaccounted for,” the report reads.
The report also showed that some companies could have over-priced their goods and services to reap off Loc.

“We examined the CMED claim amounting to US$293 691. We noted that CMED charged a rate of US$1 503 per day for a rental of a Mercedes Benz minibus for the duration of 19 days. The rate used should have been US$150 per day, which would have been consistent with the other CMED invoices for a vehicle of a similar size. The creditors amount of US$293 691 is overstated by US$25 707.”

It is alleged that at least over US$1 million was diverted towards projects not related to the games and the amount was never recovered.

“We examined the IDBZ Bank statement and noted a payment of US$1 000 000 to China Nanchang Engineering for works on Mutange and Tokwe Mukosi dams. The instruction letter was issued by Fidelis Ngorora, director (public sector investment programme) in the Finance and Economic Development ministry. According to the letter, Treasury was to repay the money during the same week it was diverted. As at the reporting date, the money had not been repaid,” read the report
Loc also received goods and services amounting to US$114 613 after the closure of the games on December 14. The goods included beds, play station consoles, shoes, printers, television sets, sports regalia and other consumables. The beds were given to Hillside Teachers College. It could not be ascertained how the other items were distributed.

The auditors complained that they faced difficulties in accessing records, including the games asset register.

“Based on our observations, the quality of workmanship at numerous locations was not commensurate with the expenditure incurred. Games sites are still incomplete and have not been officially handed over to the Local Government Public Works and National Housing ministry, as such they have not been maintained since the completion of the games.”

HOLY smoke! It is little wonder this country is not going anywhere. It appears the majority of our leaders are operating from outer space, somewhere beyond Mars in yonder galaxies.

NewsDay Comment

What some of our ministers’ utter more than startles; it stinks to high heaven, and is such an insult to our nationhood that these opportunistic leaders should not be allowed anywhere near critical institutions of our economy.

How, in God’s name, can Environment and Tourism minister Nqobizitha Mangaliso Ndlovu honestly sit in front of a foreign media camera and utter stinking lies to the world that Zimbabweans are exaggerating the hunger in this country.

Asked by a BBC journalist whether he has ever been to Mbare where children are going to bed hungry, he said: “There tends to be also issues of exaggerating certain issues.”

Strangely, in the same breath, Ndlovu said the country is currently importing 70% of its grain to avert famine. So why import all that grain if people are exaggerating issues of hunger? So, again, why send an SOS to the world out there if issues are being exaggerated?

It is also quite sad that Ndlovu’s tone appears to suggest that, because Mbare was mentioned, the only people who are hungry are those living outside towns and cities. He appears to be conveniently forgetting that the urban areas are fed by those living in the countryside and so if there is a drought, it follows that there would be little to no food reaching those in towns.

He also seems unaware of the fact that government’s ill-informed austerity measures have impoverished workers in urban areas to such an extent that their salaries can no longer buy enough to feed families. This has given rise to hunger visiting urbanites in such a big way for the first time in recent memory.

The austerity measures have quadrupled several times over the prices of basic food commodities, while salaries have drastically depreciated in real terms, yet Ndlovu dares to say “there tends to be issues of exaggerating certain issues”.

Nothing, but downright shock must have forced the BBC journalist to ask whether Ndlovu has been to Harare’s Mbare. The journalist, indeed, did a good job of exposing the tendencies in government circles to lie outrightly, deny facts and hide behind a finger at every turn.

Surely, how could Ndlovu fail to see and be touched by the hunger situation in Zimbabwe which a visitor flying from thousands of kilometres away is able to witness soon after touching down? President Emmerson Mnangagwa should be using these kinds of incidents to arm himself so that whenever he decides to reshuffle his Cabinet, he can get rid of some of these unstable characters who have a knack for lying and embarrassing him and the nation.

Yes, Ndlovu is a likeable character, young and energetic. No doubt he wants to impress his handlers, a case of self deployment to score political points. We hope he learns to tell the truth fast, for the truth alone shall set him free. To his advantage, being a first timer in government makes him corruption-free.

We’re also worried about those of his colleagues who may be career politicians. It is our hope that it’s just this incident. Whoever set up Ndlovu, a political apprentice, to appear on the global arena to represent the country certainly hates the President.

It is our view that Mnangagwa has taken long to assert his authority. Instead of dealing with his enemies in government, who are eagerly waiting for every opportunity for him to fail, he is concentrating too much on the opposition.

But the opposition MDC, led by Nelson Chamisa, has no ability to derail government programmes.

The real threat is at all levels of government structures, who can’t wait to see his back. It is these people who continue to set Mnangagwa up and use various strategies for him to fall.

Clearly, those close to him or in Zanu PF don’t like him.

The President must look beyond his nose!

BY CHARLES LAITON

Businessman Wicknell Chivayo, who is embroiled in an impasse with the Zimbabwe Power Copany (ZPC) over a US$5 million Gwanda solar power project, has approached the High Court seeking to rectify a record of appeal.

The record was prepared by the Registrar of the High Court and submitted to the Supreme Court for determination.

In his chamber application filed on Monday this week, Chivayo accused the Registrar of having forwarded the court record without his affirmation as required by law.

“This is an application for the rectification of the record of appeal prepared by the Registrar of the High Court in respect of the appeal by the first respondent (Intratrek Zimbabwe) pending at the Supreme Court under case number SC422/2019. The said Registrar subsequently forwarded the said record of appeal to the Supreme Court without the applicant’s affirmation as required by rule 17(11) of the Supreme Court Rules, 2018. This followed the applicant’s protestation at the inspection of the record that the same was not adequate for its intended purposes,” Chivayo said.

“A copy of the record, the rectification of which is sought, herein is attached in whole as Annexure A. It will be immediately noted that the joint certificate of the Registrars has not been executed, and that at record page (i) the applicants have not affirmed the record. The applicants seek the rectification of the record of appeal by the inclusion of the documents that the learned judge had regard to by reference to related matters. It is important that such documents be part of the record.”

According to court papers, sometime this year, Chivayo and his company appeared at the Harare Magistrates Court for trial on charges of fraud and contravening the Exchange Control Act.

When he made an application for exception to the charges, provincial magistrate Lazini Ncube dismissed the application, prompting Chivayo and his firm to approach the High Court for a review.

It was after the review that High Court judge Justice Owen Tagu acquitted Chivayo and his firm, a decision which did not go down well with the Prosecutor-General (PG) Kumbirai Hodzi, who then appealed to the Supreme Court.

In his appeal, the PG said: “The honourable judge (Justice Tagu) misdirected himself in finding that the facts do not disclose an offence of fraud when it was apparent from the State outline that the Respondents (Intratrek and Chivayo) misrepresented to the ZPC finance director that a total of US$5 624 130 had been paid to subcontractors for a feasibility study and pre-commencement work on the Gwanda project when such money had not been paid to subcontractors and when, in actual fact, the respondents had used the money for their own benefit to the prejudice of ZPC”.

The matter is still pending.

BY MOSES MATENGA

FINANCE minister Mthuli Ncube yesterday said President Emmerson Mnangagwa’s administration has been unlucky as some of its strategies to address the economic challenges bedevilling the country had been hampered by natural disasters.

Speaking at the Zimbabwe National Chamber of Commerce 5th Annual Business Review Conference in Harare yesterday, Ncube said despite having “perfect” reform policies to turn around the economy, the administration had been hard hit by natural disasters that include Cyclone Idai and drought, which have affected several sectors, including energy and agriculture, among others.

“We are an economy in transition, we are an economy in reform so we will get there. We have been unlucky. Who gets two cyclones in one year? And the impact has been severe,” Ncube said.

He said government was very optimistic before disaster struck, adding that what be devilled Zimbabwe was a classic example of being unlucky.

“Before long, we began to feel the impact of drought. Who gets a cyclone, and then another, then drought then power outages? That is a classic example of being unlucky,” Ncube said.

He said the tragic developments affected government projections in the agriculture and energy sectors and the country had not fully recovered from the effects.

Ncube, however, declared that austerity was now over and focus for the country was to maximise on production.

“Austerity is over,” he declared, but added that government would, therefore, not spend recklessly.

Energy minister Fortune Chasi said the energy sector remained in a crisis, adding that although he had been in the portfolio for months, it was as if he had been there for decades because of pressure.

“The situation remains critically constrained. Failure will lead to close of businesses,” Chasi said as he painted a gloomy picture of the energy situation in the country. He attributed the challenge to climate change.

“Our neighbours in South Africa and in Zambia are facing the same problem. We need a balance between supply and demand,” Chasi said, while threatening to push for a 30-year mandatory sentence for thieves vandalising energy infrastructure.

Mnangagwa told the gathering not to paint a negative picture of Zimbabwe to the outside world so as to attract investment.

“You must motivate international investors to come. If you go out there and say Kariba is dry and there is no electricity, are you marketing this country, saying the opportunities of electricity in Zimbabwe are galore?” he asked.

“We have a lake called Kariba, which can fill up anytime and we have 1 000 megawatts. We have thermal coal, we have sunshine from the 1st of January to the 31st of December.”

Urging people to work together to address the challenges Zimbabwe is facing, Mnangagwa said: “We are stronger working together, more brains or fewer brains, those with a vision and those without, let us all be one.”

Government has failed to turn around the economy for the last two years Mnangagwa has been in power and often attributes that to sanctions, among other excuses.

BY MOSES MATENGA

THE cash-strapped Harare City Council said companies that owe the local authority should pay their dues without fail to allow the local authority to provide much-needed service delivery.

Several companies were named as owing the local authority millions of dollars, with the ruling Zanu PF party identified as one of the debtors, owing the authority more than $1,2 million.

Other debtors include the Prophetic Healing and Deliverance Ministries, which is yet to pay close to $400 million, the Robert Gabriel Mugabe International Airport, the National Social Security Authority (NSSA), Norton Town Council, Chitungwiza Town Council, and National Railways of Zimbabwe.

Council’s human resources committee chairperson Jacob Mafume said there was need to develop a culture of paying debts in the city.

“We need to develop a culture where we pay our rates as a nation. Companies and individuals owe council a lot of money yet they expect services from the same council,” he said.

“We have to foot the bill. We want a liveable city for the next generation and we cannot do that when we are not paying our rates. This is delinquent behaviour and it must stop,” he said.

Among companies that owe the local authority is Zanu PF’s holding company M&S Syndicate (Pvt) Limited, which owes Harare $1 189 768,30 for unpaid water bills at its 15-storey building located in the capital.

Chitungwiza Town Council owes the local authority $414 292 856,77, while Norton Town Council is yet to settle a $4 million debt.

Government entities such as NSSA, NRZ and Telecel are also in the top debtors’ list that also includes Crest Breeders, Irvine’s Day Old Chicks, Simon Muzenda Housing Co-operative, Caps (Pvt) Ltd, among others.

The District Development Fund is also part of the debtors along with the Forestry Commission, Amalgamated Motor Corporation and TN Harlequin Luxaire T/A TN Bank Mall Nelson Mandela.
Harare is owed more than $1 billion by business, government and residents and has been battling to provide services in the city due to the ballooning debt.

BY CHARLES LAITON

MDC Alliance MPs have approached the High Court challenging Speaker of the National Assembly, Jacob Mudenda’s decision to bar them from receiving their sitting allowances.

The 112 MPs are arguing there is nothing in the Constitution of Zimbabwe or in the Standing Rules and Orders which requires legislators to stand up when the President enters or leaves the Parliament chamber.

The legislators, who have since the July 2018 general elections refused to recognise President Emmerson Mnangagwa’s victory, said they wanted the court to declare Mudenda’s decision unlawful and of no force and effect.

In the application, the opposition party together with its chief whip, Prosper Mutseyami, cited Mudenda, Finance minister Mthuli Ncube and Parliament of Zimbabwe as respondents.

“We contend that the first respondent (Jacob Mudenda)’s action ordering that the second to one hundred and eleventh applicants (MDC Alliance members) should not be paid their sitting allowances is unlawful. As submitted in our letter, we contend that the first respondent has no powers to dock Members of Parliaments’ sitting allowances or prevent them from receiving their sitting allowances,” Mutseyami said.

In his founding affidavit, Mutseyami, who is also the opposition party’s Manicaland provincial chairman and the Dangamvura-Chikanga legislator, said they were also seeking an order compelling Ncube to pay the sitting allowances due to all the legislators who were affected by Mudenda’s decision.

According to Mutseyami, on October 1, 2019, Mnangagwa was scheduled to address the joint sitting of Parliament in terms of section 140 of the Constitution.

However, when Mnangagwa entered the Parliament chamber, some of the MDC Alliance MPs remained seated, a move that prompted Mudenda to take drastic measures against them.

“There is nothing in the Constitution of Zimbabwe or in the standing Rules and Orders which requires Members of Parliament to stand up when the President of Zimbabwe enters or leaves the Parliament chamber. When the President of the Republic of Zimbabwe was about to give his speech, first applicant’s members (MDC Alliance) who are Members of Parliament and who comprise second to one hundred and eleventh applicants walked out of the Parliament chamber,” Mutseyami said.

“The reasons for the walk-out, among others, were as follows: First applicant and its members contest the fact that the President of Zimbabwe was properly duly elected to the office of the President. First applicant thus contests the President’s legitimacy. Applicants were also demonstrating against the country’s economic meltdown, which the President is not addressing. These include the ever-rising cost of basic commodities such as bread, mealie-meal, cooking oil, fuel and electricity, hyper-inflation, continued violation of human rights as evidenced by the clampdown on freedom of assembly and association, labour rights, kidnappings and disappearances.”

The matter is pending.