Government implements vehicle loan scheme

GOVERNMENT has started implementing a vehicle loan scheme for senior officials replacing personal issue vehicles as part of an expenditure management strategy meant to curtail wasteful spending.

The loan will be extended to principal directors or their equivalent, directors and deputy directors. Principal directors are entitled to USD$40 000, directors USD$30 000 and deputy directors $20 000.

Those officials already using personal issue vehicles would be allowed to buy them at a prescribed rate to be determined by CMED. It has been established that Government was spending a lot of money maintaining its fleet, and is saddled with bills as well as dilapidated vehicles whose disposal would be prudent while new vehicles could be brought in cheaply.

This development comes as there are misleading reports that Government cars are being corruptly sold undervalue. Permanent Secretaries for various ministries have already started inviting their subordinates to apply for the loan scheme also meant to ensure fiscal discipline and instil a sense of responsibility.

"The Treasury Circular referenced A/102/18 dated 18 April 2018 as read with Public Service Commission Circular Ref: C/318/427, dated 5 July 2018 introduced Vehicle Loan Scheme for the above mentioned grades in place of Personal Issue Vehicles as an expenditure management strategy meant to curtail wasteful expenditure as enunciated in the 2018 national budget," reads a letter seen by our Harare Bureau to directors.

"Government will fund the Value Added Tax and duty cost of the vehicle within the prescribed loan limit of each category. Given the above developments, qualified and interested members are requested to urgently submit applications stating the choice and type of vehicle needed."

The implementation of the policy has created false media reports alleging that vehicles were being sold for a song. Some of the media reports have cited the Ministry of Mines and Mining Development accused of purchasing several top of the range vehicles "for next to nothing."

The Zimbabwe Consolidated Company has also not been spared by the false media reports. According to documents gleaned by our Harare Bureau, the nine directors from the Ministry of Mines and Mining Development bought the vehicles with the approval of the Civil Service Commission after duly complying with all the necessary procedural requirements.

The nine directors were Mr Morgan Makina, Mr Thomas Singizi, Mrs Jacqueline Munyonga, Mr Dzidzisai Maenzanise, Mr Forbes Magumbate, Mr John Makandwa, Dr Temba Mabasa Hawadi and Mr Julius Moyo, who all bought Mazda B T50 vehicles while Mr Malcom Mazemo bought an Isuzu KB250. The nine were joined by a retired principal director Mr Valentine Vera who also purchased his vehicle in September last year for $1 500 from CMED.

The costs were pegged at $1 500 by CMED and the vehicles mileage ranged between 109 540 and 146 839 km.

"The above directors were allowed to purchase Personal Issue Vehicles before the end of the stipulated five years because of the change in Policy. Personal Issue Vehicles Scheme for directors and equivalent grades: Service Wide was abolished and a new Vehicle Loan Scheme for principal directors, directors, deputy directors and equivalent grades in the Public Service was established through Treasury Circular A/102/18 dated 18 April 2018," reads a memorandum from the Ministry of Mines and Mining Development.

"The transactions were approved by PSC and the valuation of the Personal Issue Vehicles was done by CMED in terms of Government Policy on valuation of conditions of service.

"The disposal of the vehicles to the directors was part of their condition of service and job benefits and the valuation of conditions of service vehicles is not done using the prevailing market value of the vehicles."