Zim News Blog -NEWS NETWORK

Source: Govt is cash positive: Mthuli | The Herald February 25, 2019

Finance and Economic Development Minister Professor Mthuli Ncube

Tawanda Musarurwa
Government is currently operating on a positive cash basis as revenue enhancement and austerity measures announced in the 2019 National Budget continue to yield dividends, Finance and Economic Development Minister Mthuli Ncube has said.

Some of the key highlights of the austerity-focused 2019 National Budget included a 5 percent salary cut on senior Government staff; customs duty on motor vehicles and selected goods to be paid in foreign currency; tax free threshold reviewed to $350 from $300, an upward review (to 7 cents per litre) of excise duty on diesel and paraffin, and to 6,5 cents per litre excise duty on petrol, and an increase on excise duty on cigarettes to $25 among others.

Last year Treasury also introduced a 2 percent Intermediated Money Transfer Tax, which is yielding at least $80 million monthly in new revenue for the Government.

Minister Ncube told business leaders last week that the Government was benefiting from its adherence to the austerity measures.

“Government is cash positive. We managed to pay civil servants salaries for the months of January and February from a cash positive position, with $300 million in the bank,” said Minister Ncube.

“We are spending what we have, and I am determined to ensure that we carry on like that for the next two years. In fact, it should always be like that. On the expenditure front, we have been working hard to curtail expenditure in terms of civil servants’ salaries and civil service reform.

In October, the country achieved a budget surplus of $29 million.

Minister Ncube has said balancing of the budget, in combination with several other measures pronounced in the 2019 National Budget, are a critical step in stabilising the economy.

The austerity measures are also in line with the Transitional Stabilisation Programme (TSP), aimed at setting the economy on a recovery path after years of stagnation.

The TSP acknowledges policy reform initiatives of the new dispensation to stimulate domestic production, exports, rebuilding and transforming the economy to an upper middle income status by 2030.

According to the policy document, the TSP will focus on the following factors: stabilising the macro-economy, and the financial sector; introducing necessary policy and institutional reforms to translate to a private sector-led economy; addressing infrastructure gaps, and launching quick-wins to stimulate growth.

The TSP will be superseded by two five-year development strategies, with the first one running from 2021-2025, and the second covering 2026-2030.

Meanwhile, the inter-bank foreign currency market started operating on last Friday, with an initial set rate of 2,5, which was significantly discounted from the 4 that had been prevailing on the illegal market.

Announcing the Monetary Policy Statement last week, RBZ governor Dr John Mangudya announced the introduction of an inter-bank foreign exchange market.

Prior to the floating of the US dollar, the RBZ had pegged RTGS balances at 1:1 to the US dollar, however shortages had resulted in high premiums for US dollars on the parallel market, which led to increases in prices.

The ‘managed float’ is therefore expected to result in lowering of prices.

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Source: $400m NRZ deal on track | The Herald February 25, 2019

Minister Matiza

Innocent Ruwende Senior Reporter
The $400 million National Railways of Zimbabwe (NRZ) recapitalisation deal is on track with Government negotiating with its partner the Diaspora Infrastructure Development Group/Transnet consortium. Transport and Infrastructure Development Minister Joel Biggie Matiza said many other suitors were approaching Government with various proposals.

Minister Matiza was speaking at a meeting with road authorities and other stakeholders during his tour of Masvingo province road projects.

“We have been negotiating with an outfit called DIDG/ Transnet together with NRZ. We had an agreement which ended on February 14, which gave them exclusivity to negotiate the recapitalisation of NRZ.

“The issue is that we want to recapitalise our rail system so that it becomes the best in the region,” he said.
“We still have certain things to address and I am due to present a report to Cabinet on the outcome of this framework agreement, how far we have gone and the way forward. The passion and the thrust is to have our rail network moving.

“We do not want to have the same scenario as we had on this road (Harare-Beitbride-Chirundu Road) where we opened champagne and did all sorts of things and nothing came out of that.”

Minister Matiza said there were various economic developments that need railway transportation such as mining.
“There are certain financial models that are being brought by investors who would want to do mining. Some of them want to rehabilitate some tracks to the port.

“These are opportunities that I am just talking about and Masvingo is one of them. The network to the sea is urgent and Government is seized with that matter. As a way of making our economy tick, that should be a priority.”

Minister of State for Masvingo Provincial Affairs Ezra Chadzamira said the various road projects in Masvingo show desire by the new dispensation to commit resources for the development of rural areas and communities.

“Trending development approaches these days encourage putting up of a sound infrastructure which will inevitably attract visits, stimulate trade and investment both domestic and international. Our special economic zones and industrial parks should be supported by an enabling modern infrastructure,” he said.

“Equally our smart city concepts which we adopted as Government need the same modern infrastructure which depicts upper middle class economy status.

“This will not happen overnight. We subscribe to President Mnangagwa’s gradual approach of brick upon brick.”

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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.”

The post Former Harare treasurer sues council over unpaid pension appeared first on NewsDay Zimbabwe.

The post Former Harare treasurer sues council over unpaid pension appeared first on Zimbabwe Situation.

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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