Zim News Blog -NEWS NETWORK

Source: Former Harare treasurer sues council over unpaid pension | Newsday (News)

BY CHARLES LAITON

Former City of Harare treasurer, Misheck Mubvumbi, has approached the High Court seeking an order to compel his ex-employer to pay him pension benefits amounting to over $300 000.

The ex-council boss issued summons against the Local Authorities Pension Fund (LAPF) and City of Harare on February 15 this year and the council is yet to respond to the litigation.

In his declaration, Mubvumbi said he worked for over 33 years before being retired by the City of Harare on June 30, 2014 together with more than 1 300 other employees.

But despite having contributed to a pension fund administered by the council, he is yet to receive his dues.

“During the subsistence of the employer-employee relationship between the plaintiff (Mubvumbi) and the second defendant (City of Harare), which was for a period of over 33
years, the plaintiff contributed to a pension fund administered by the defendant,” he said.

“The plaintiff was among more than 1 300 employees who were retired by the second defendant on June 30, 2014. Being a contributor to the pension fund administered by the first defendant, the plaintiff is entitled to one third commutation or lump sum payment of pension benefits in the sum of $333 343,61.”

In addition to the lump sum payment, Mubvumbi said he is also entitled to a lifetime monthly pension payment of $5 747 calculated from July 1, 2014 to December 2018, adding that
at some point in time, the City of Harare advised him it had engaged LAPF to expedite the processing of his pension benefits.

“The defendant has not made any payment towards the monthly pension that the plaintiff is entitled to. As at December 31, 2018, the first defendant (LAPF) owes the plaintiff’s
pension arrears in the sum of $310 375,” he said.

“Despite numerous demands, the first defendant has failed, refused and or neglected to pay the computed retirement pension benefit to the plaintiff.”

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Source: ZRP recruitment policy reviewed | The Herald February 25, 2019

Commissioner Charity Charamba

Crime Reporter
The Zimbabwe Republic Police (ZRP) on Friday said its recruitment policy had been amended with immediate effect with potential recruits now required to be aged between 18 and 22. The potential police recruits should also hold a minimum of five Ordinary Level passes including Mathematics, English Language and Science attained in not more than two sittings.

The measures are part of sweeping changes that ZRP is introducing to professionalise the organisation, which is also seeing massive staff restructuring, reconstitution and refocusing of functions.

In a statement, chief police spokesperson Commissioner Charity Charamba said in addition, the applicants should have a good background with no criminal record and should go through the whole police internal selection process.

“The Zimbabwe Republic Police is currently inundated with enquiries on recruitment and some false messages are even circulating on social media platforms purporting that the organisation will soon embark on a recruitment drive.

“The police wishes to advise members of the public that those who had conducted interviews and had been put on waiting list that the recruitment policy has been amended with immediate effect,” she said.

She said in light of this new recruitment policy, all police applicants on the waiting list had been dispensed with and will no longer be considered.

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Source: Taxman rolls up sleeves | The Herald February 25, 2019

Walter Magaya

Tichaona Zindoga Acting Editor
The Zimbabwe Revenue Authority (Zimra) is set to rake in billions of dollars, thanks to an International Monetary Fund (IMF) tool that puts the tax collector in the global-best category. Zimra has targeted to collect $6,037,293,100, but the figure is likely to be surpassed due to changes in the monetary regime announced by the Reserve Bank of Zimbabwe (RBZ) last week which floated foreign currency rates.

Tax collection is one of the key pillars underpinning the thrust of the Transitional Stabilisation Programme, the Government’s short-term economic blueprint, which outlines that the country’s tax policy should move towards sustainable taxation, and nurturing businesses to enhance capacity to pay their tax dues.

Additionally, TSP advocates a paradigm shift in the administration of tax policy, with tax administrators being called upon to inculcate different circumstances and peculiarities targets.

There is also now a thrust towards cooperative voluntary compliance by tax payers with regards to honouring tax obligations and lowering default rates.

In an interview last week, Acting Head Corporate Communications Mrs Inzwirashe Muwonwa told The Herald that a number of interventions would enable the authority to collect revenue better.

These include engagement of clients through their associations, taxpayer education, debt collecting measures, voluntary compliance, audits and investigations.

Further, lifestyle audits will likely rake in more, with the recent interest in controversial Prophetic Healing Deliverance (PHD) Ministries leader Prophet Walter Magaya, showing signs that the taxman could be baring teeth.

This makes the organisation competitive.

Explained Mrs Muwonwa: “Implementation of IMF’s TADAT (Tax Administration Diagnostic and Assessment Tool) tool which has been done by other revenue authorities (…) gives an analysis of the organisation’s operations and areas where improvement is needed. This benchmarks ZIMRA against other revenue authorities.”

She explained that when auditing companies, the audit can extend to the directors of the company as stipulated in the laws.

“There is no victimisation of individuals. Each case is determined on its own merits,” she said.

Mrs Muwonwa said large clients had to date been fiscalised with focus now being on smaller businesses.

“The organisation is now targeting medium to small businesses. To date 10,214 clients have been fiscalised and the recording of sales and monitoring of clients is being done,” she said.

Zimra is also working to plug leakages, especially at ports of entry.

“ZIMRA, in collaboration with other law enforcement agencies, carry out joint patrols and roadblocks to try to contain the risks posed by the porosity of our borderline,” said Mrs Muwonwa.

“Any contraband encountered at such exercises is detained and the offenders are dealt with according to the dictates of the Customs & Excise Act Chapter 23:02.”

Last year, Zimra managed to surpass its set target of US$5 billion, attributing the positive performance in part to the revision of the Intermediated Money Transfer Tax, price effect and enhanced compliance level from taxpayers.

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Source: Forex parallel market bullish – NewsDay Zimbabwe February 25, 2019

BY BLESSED MHLANGA

FOREIGN currency parallel market traders are unfazed by the introduction of the interbank market auction of the real time gross settlement dollars (RTGS$) and have continued trading on the streets without batting an eyelid.

United States $100 is fetching $370 RTGS$ or bond note on the black market, while on the interbank market it is trading at 1:2,5 creating a loophole for speculators to take advantage of the gaps.

Illegal money changers, said the rate was not affected by the pronouncements made by Reserve Bank of Zimbabwe governor John Mangudya (RBZ) in his recent monetary policy statement.

“This thing about banks is not an issue for us; they don’t have the money and we will continue to supply both industry and individuals with the much-needed foreign exchange, both in RTGS$ and United States dollars, giving the most attractive rate and efficient trade,” said one illegal trader.

Banks have already started selling the US dollars at the opening rate, however, using a strict vetting process, which excludes ordinary people and cross-border traders.

“We are only selling to people with invoices that prove they want to import, so if you just come in and try to buy US dollars, we are not selling to individuals, they will have
to go to the bureau de change because banks won’t cater for that,” said a senior banker who refused to be named.

The banker said the parallel market can’t be shut down because of the strict applications that are needed at the bank.

“We have to remember that the black market has been alive even in the times of Jesus when he walked into the temple. You can’t close that part, but we provide a cheaper and safer way so far for industry to fund their operations,” he said.

Former Economic Development minister, Tapiwa Mashakada said the only way the interbank market could outstage the black market is if RBZ keeps its hands off the dealers’ table.

“The exchange rate of 1:2,5 is the opening float, which will fluctuate daily depending on supply and demand. It must be allowed to float and any attempt to artificially fix it will backfire and forex trading transactions will relocate to the parallel market where the exchange rate will be market determined,” he said.

Speculators have already indicated that they would be buying USD at 1: 2,5 at the bank rate and sell it on the parallel market on transfer rate of 1:4 before going back to the bank to buy more US dollars.

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Source: Lawyers hike legal fees | Newsday (News)

BY BLESSED MHLANGA

THE cost of accessing justice has shot through the roof, pushing the service out of reach for the majority of the country’s impoverished populace after the Law Society of Zimbabwe (LSZ) approved sharp tariff increases in line with the depreciated real time gross settlement (RTGS) dollar, now regarded as the official base currency.

Fees for an uncontested divorce cases shot from $1 500 to $3 600, reflecting a more than 100% increase, a figure beyond the reach for many Zimbabweans currently earning salaries below $500 a month.

Law lecturer and human rights defender Valentine Mutatu, however, said while this appeared like a massive increase in legal fees, they remained lower in United States dollar terms.

“You will notice that for senior lawyers, they used to charge US$300 (per hour) and the latest tariff shows they can now charge RTGS$1 200. If you change that at the prevailing black market rate of today, which is around $420 for a US$$100 bill, it’s slightly lower than what we used to charge,” he said.

Zimbabwe Lawyers for Human Rights (ZLHR) said it acknowledged that the new tariffs segregated the marginalised from accessing justice.

“We are aware of that bridge, that is why as ZLHR we conduct legal clinics, where we bring lawyers to the marginalised and services are offered for free. We will continue to do this in an effort to bridge the gap,” ZLHR said.

LSZ, in its statement adjusting the legal fees, said lawyers were obliged to charge in line with the tariffs.

“Legal practitioners are professionally and legally obliged to charge fees for legal work which are fair and reasonable in all circumstances,” the notice read.

“In order to assist the profession and the public in this regard and to seek a degree of uniformity and consistency, this tariff is recommended by the LSZ.”

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