Source: Gross abuse threatens civil servants car import scheme – herald
Robin Muchetu
Health and Gender Editor
Abuse of the duty-free vehicle import scheme by civil servants is resulting in tighter controls, with the benefit in danger of being withdrawn if the malpractice continues.
The abuses have seen more than 50 vehicles worth US$2 million being recovered by the Zimbabwe Anti-Corruption Commission following misuse of the facility, with more recoveries expected. Abuses generally involve a civil servant not using the scheme letting their name be used for the import by someone else outside State service in return for an illegal fee.
Speaking in Bulawayo last Friday, Public Service, Labour and Social Welfare Minister Edgar Moyo said the Government was aware of the abuse and warned that steps were being introduced to close the loopholes.
“Specifically on the importation of vehicles free of duty, there have been some problems and we have been working with the Public Service Commission to tighten the processes and procedures. This is so that people do not abuse that service and also, not allow themselves to be used by fraudsters to bring in vehicles without paying duty when they are not supposed to benefit,” said the minister.
The facility has long been marred by irregularities, with some civil servants allegedly importing vehicles under the guise of personal use only to later sell them, undermining the purpose of the scheme.
According to Statutory Instrument 247 of 2023, civil servants with at least 10 years of service qualify for a duty rebate if they have not been issued a condition-of-service vehicle. Beneficiaries are required to keep the vehicle for five years and are prohibited from selling it during that period. Those who do so are liable to pay the outstanding duty and interest to Zimra.
Minister Moyo warned that continued abuse could see the Government withdrawing the facility altogether.
“It is in the interest of both the Government and its workers to maintain professionalism and honesty in that because if they do not do that and it is found that it is abused, it may be withdrawn again,” he said.
Turning to housing support for civil servants, Minister Moyo said several initiatives were being implemented.
“I am sure people are familiar with the Rangemore Presidential Housing Scheme in Bulawayo, which is bankrolled by the National Social Security Authority and administered by NBS Bank. These are some of the facilities that we offer civil servants to cushion them. We also have housing stands across the country, which civil servants can buy at affordable rates payable over a long period of time,” he said.
The minister said the housing scheme had become the most sought-after option as workers continue to search for affordable accommodation.
“The demand is very high and we are failing to meet that demand. We are trying to expand it, with resources allowing, we hope to reach all parts of the country so that all civil servants get housing. I mentioned that we were availing a total of 26 000 residential stands, 20 000 which are in Harare and 6 000 in Bulawayo. These are being serviced and the PSC and worker representatives are working on the selection and allocation of stands,” he said.
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