Zim News Blog -NEWS NETWORK

Source: Car importer takes Zimra to court over forex duty | The Herald March 18, 2019

Bulawayo Bureau
A BULAWAYO man has taken the Zimbabwe Revenue Authority (Zimra) to court challenging its decision to charge him duty in foreign currency for his imported vehicle.

The vehicle, a Toyota Hilux was imported from the United Kingdom in December last year and has been stuck at Plumtree Border Post after the owner Mr Lincoln Moyo failed to raise enough foreign currency to pay duty. Mr Moyo, through his lawyers Ncube and Partners, filed an urgent chamber application at the Bulawayo High Court on Friday last week citing Zimra and its Commissioner-General Ms Faith Mazani, as respondents. He also wants an order exempting him from paying storage charges for his car pending the finalisation of the matter. In his founding affidavit, Mr Moyo said in terms of the law he qualified to be exempted from paying duty for his car in foreign currency. He argued that the vehicle was consigned on December 17 last year before Statutory Instrument 252A-Customs and Excise (Designation of Foreign Currency Dutiable Goods) Notice 2018 came into effect. According to S1 252A, goods purchased on or before November 22, 2018 and consigned on or before January 3, 2019 are exempt from the operation of this notice. “Prior to the advent of the SI 252A, importers would be allowed to pay duty in the local currency which is now known as RTGS$.

The advent of that Statutory Instrument brought about the requirement to pay duty in foreign currency and in my case, I submit that I am exempt from paying duty in foreign currency,” he said.

Mr Moyo said despite applying for exemption the respondents failed to respond to his letter.

“Acting in terms of SI 252A, I applied to the Zimra station manager at Plumtree Border Post for exemption and the matter was referred to the Commissioner General who failed to respond .

The contents of the letter betray the fact that the second respondent (Ms Mazani) does not understand the provisions of the statutory instruments,” he said.

Mr Moyo argued that the law stipulates that one can apply for exemption simultaneously with the importation of the car at any rate within 42 days from the date of importation

He argued that his car has been unlawfully stuck at the border post because he is failing to complete the importation process as Zimra insists on him paying duty in foreign currency.

“At the same time storage charges are being levied at the rate of US$10 per day and because they are being paid in foreign currency, the respondents are benefitting twice as they are gaining on storage charges and at the same time insisting on me paying the duty in foreign currency,” said Moyo.

Zimra is yet to respond to the application.

The Government, last year, introduced the payment of customs duty in foreign currency for motor vehicles in a move aimed at controlling the surge in the importation on non-productive goods.

Announcing revenue enhancing measures in his 2019 National Budget statement in Parliament in November last year, the Minister of Finance and Economic Development, Professor Mthuli Ncube, said the measures were critical in redirecting use of scarce foreign currency to the productive sector and implementation of measures to control imports, which continue to outstrip exports thereby exerting pressure on foreign currency requirements amid a widening trade deficit.

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Source: . . . IDBZ tables social impact assessment report | The Herald March 18, 2019

IDBZ

Runesu Gwidi in MASVINGO
The Infrastructure Development Bank of Zimbabwe (IDBZ) has tabled an Environmental and Social Impact Assessment Report on the proposed investment and irrigation around Tugwi-Mukosi Dam, as Government intensifies efforts to make sure the country’s largest inland water body is utilised.

The report was tabled by the bank and its consultants during an all stakeholders’ meeting here and follows a visit to the dam by members of the Technical Inter-Ministerial Task Force on Tugwi-Mukosi led by Lands, Agriculture, Water, Climate and Rural Resettlement Minister Perrance Shiri last week.

The IDBZ and its partners unpacked a list of bankable projects at the water body that also has the potential to irrigate more than 25 000 hectares.

In his address, IDBZ chief executive Mr Thomas Sakala said the objective of the meeting was to present the first Environmental and Social Impact Assessment Report on the dam’s projects to enable stakeholders from the province to deliberate on it.

“Basically, we have decided to meet stakeholders to share details of the preliminary Environmental and Social Impact Assessment Report compiled by our consultants,” he said. “It is our intention to contribute to massive economic growth in line with Government’s efforts to fully exploit water from Tugwi-Mukosi Dam.

“Government is focused on two master plans for Tugwi-Mukosi Dam, namely the Investment and the Irrigation Master Plan. The Investment Master Plan will particularly cover projects such as dairy farming, game sanctuaries, fisheries, tourism chalets, boating, provision of sporting facilities, among other business ventures.

“Today, we are discussing the Irrigation Master Plan with the province. IDBZ in January this year submitted the Environmental and Social Impact Assessment Report for approval by the Environmental Management Agency (EMA).”

Mr Sakala said the meeting sought to afford stakeholders an opportunity to make input ion the Irrigation Master Plan.

“Key issues carried in the report (ESIA) include soil tests for the growing of various cash crops on the proposed irrigation projects, the type of irrigation technology which would suit various types of soils, the impact of installing irrigation canals and other infrastructure on already existing homesteads and settlement patterns, among other issues,” he said.

The next stage will be the design of the irrigation network to be used in exploiting Tugwi-Mukosi water.

Mr Sakala said his institution wanted to make the scenic Tugwi-Mukosi Dam and surrounding areas a prime tourism attraction which would become a cash cow for Masvingo.

At Chingwizi more than 3 000 families that were displaced by the dam were set to benefit from Tugwi-Mukosi through irrigation.

Minister of State for Masvingo Provincial Affairs Cde Ezra Chadzamira said massive investment was certain for the province which was home to 54 percent of Zimbabwe’s water bodies.

He applauded IDBZ for presenting a progress report on proposed projects around Tugwi-Mukosi.

Government has identified 14 anchor projects for exploitation in and around Tugwi-Mukosi Dam which took more than 17 years to complete at a cost of nearly $300 million.

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Source: Zinara audit exposes double-dippers | Herald (Top Stories)

Tendai Mugabe Senior Reporter
The Zimbabwe National Road Administration (ZINARA) dished out a whopping US$71 million between 2011 and 2016 to 17 private companies that largely failed to deliver, The Herald can reveal.

Further, The Herald also established that some of the contracts which were awarded under the “special projects” arrangement were awarded without going to tender.

In clear disregard of good corporate governance, some contractors were overpaid and in other cases payments were made for incomplete jobs and in the absence of payment certificates as evidence of the work done.

It also emerged that Zinara awarded these so-called special projects to the same individuals using different company names, for instance in the case of Twalumba Civil Engineering.

The company got other contracts under special projects using other names such as Notify Enterprises and Bermipools.

These malpractices, among other wrongdoings are contained in an audit report by Grant Thornton which had been kept under wraps since the conclusion of the audit at Zinara.

The report highlighted that some senior managers at Zinara are under-qualified for the positions they are holding and most of the contracts that bled the road authority were hammered under their watch.

For instance, director of human resources and operations Mr Precious Murove only had a Diploma in Theology at the time he assumed his current executive position.

“During period 2011 and 2016, Zinara disbursed US$71 487 896,21 and ZAR31 452 102,53 towards special projects carried out by 17 contractors,” read part of the summary report by Grant Thornton.

Matters arising from a review of the special projects by Grant Thornton showed that: “No tendering procedures were done in awarding most of the contracts. The contracting process was led by Zinara and letters would sometimes be sent to road authorities with an instruction on the specific contractors to consider for the specific execution of the special projects.

“Formal tendering procedures were not followed in respect of contracts of more than US$1 million, resulting in contravention of the requirements of the State Procurement Board (now Procurement Regulatory Authority of Zimbabwe).”

Some of the contracts did not specify the names of the road to be rehabilitated, reads the audit report.

“Most of the contracts did not comply with the Zimbabwe General Conditions of Contracts as they did not specify, among others, performance security and timelines for commencement and completion of road works,” it read.

“Most of the road works were not completed (and) in certain instances contractors would be appointed without the knowledge of the road authority. In such circumstances, the chief executive of the road authority would only know of the contract on being approached by the appointed contractor to sign the contract and enable road works to commence.

“There was common directorship in some contractors, namely Twalumba Civil Engineering that was also known as Notify Enterprises and Bermipools. The road works in some instances were incomplete, however, payments would have been to the contractor by Zinara on behalf the RDC.”

The audit report came up with a number of recommendations which are yet to be implemented.

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Source: Zim targeting to process FDI approvals in hours | The Herald March 18, 2019

Professor Mthuli Ncube

Tawanda Musarurwa Business Reporter
The establishment of the Zimbabwe Investment and Development Agency (ZIDA) will capacitate the country to process foreign direct investment (FDI) approvals within a day, Finance and Economic Development Minister Professor Mthuli Ncube has said.

Zimbabwe is working on a plethora of measures to improve the doing of business climate to attract increased levels of FDI in line with the goals of achieving a middle-class economy by 2030.

Updating the nation on progress made in respect of measures being implemented to enhance the country’s economic performance, Minister Ncube said ZIDA should be operational in the next few months.

“We are accelerating and deepening the ease and cost of doing business reforms to improve competitiveness,” he said.

“This includes the establishment of a one-stop shop investment centre, and legislation to establish a specific and dedicated institution – the Zimbabwe Investment and Development Agency (ZIDA) – is now before Parliament.

“ZIDA is set to be fully operational in the coming months, and will enable the processing of investment approvals within a day, significantly improving the investment climate.”

Prof Ncube called for patience as economic reform and restructuring are process-oriented.

“I am aware that there are those who are disappointed by the pace of change, and who expected progress to be faster,” he said. “Unfortunately, this was never going to be the case.

“Reforming, restructuring and rebuilding our economy was always going to take time, and attempts to prematurely accelerate the process are liable to cause greater upheaval and suffering. A sober, strategic and step-by-step process remains the best way to achieve our goal.”

Zimbabwe’s current reforms are guided by the Transitional Stabilisation Programme (TSP), which was launched in October last year, with the main goals of stabilisinag the economy, attract FDI and set the foundation for shared and sustained growth.

The country has made significant progress over the past few months in combating the budget deficit on the one hand, and boosting revenues on the other, said Prof Ncube.

“The monthly budget deficit declined from US$242 million in November to a surplus of US$733 million in December, and a provisional surplus of $113m for January, an impressive turnaround in such a short time,” he said.

“Over the past four months, we have made significant cuts to expenditure in five main areas: First, we have ended the unsustainable practice of issuing Treasury Bills to finance the deficit, forcing us to spend within our means and within the budget.

“Second, we have reduced the public wage bill by cutting salaries of senior government officials by five percent across the board, retiring over 3 000 youth officers, and establishing a more modest bonus system for civil servants that saved over US$75 million in 2018 alone.

“Third, we have diverted our resources to pressing areas by freezing the hiring of non-critical staff, while hiring 3 000 additional staff in the education sector and almost 2 000 in the health sector. Finally, we have cut unnecessary expenditure and ‘perks’ for ministers and MPs, most notably by suspending the procurement of vehicles.

“These measures have been complemented by a concerted effort to widen our revenue base. One prominent example, the 2 percent tax on electronic transactions, was hotly disputed when it was announced, but its impact has been significant. US$166 million was raised in the last two months of 2018, and almost US$100 million was raised in January alone. We project that over US$600 million will be raised during 2019.”

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