Gross abuse threatens civil servants car import scheme

The Government has warned that continued abuse of the duty-free vehicle import scheme by civil servants could result in the benefit being withdrawn, as authorities move to tighten controls on the facility.

The warning follows investigations by the Zimbabwe Anti-Corruption Commission, which has recovered more than 50 vehicles valued at approximately US$2 million after uncovering widespread misuse of the scheme. Further recoveries are expected as investigations continue.

Authorities say the abuse largely involves civil servants allowing their names to be used by individuals outside government service to import vehicles duty-free in exchange for illicit payments. In other cases, beneficiaries reportedly import vehicles under the scheme and later sell them, contrary to regulations.

Speaking in Bulawayo, Public Service, Labour and Social Welfare Minister Edgar Moyo said government was aware of the loopholes and was working to strengthen oversight mechanisms.

"We have been working with the Public Service Commission to tighten the processes and procedures so that people do not abuse that service and also do not allow themselves to be used by fraudsters," he said.

Under Statutory Instrument 247 of 2023, civil servants who have served for at least 10 years and have not received a condition-of-service vehicle are eligible for a duty rebate. Beneficiaries are required to retain the vehicle for a minimum of five years and are prohibited from selling it within that period. Violations attract penalties, including payment of outstanding duty and interest to the Zimbabwe Revenue Authority.

Minister Moyo cautioned that continued malpractice could lead to the withdrawal of the scheme altogether.

"It is in the interest of both the Government and its workers to maintain professionalism and honesty… if it is found that it is abused, it may be withdrawn again," he said.

Meanwhile, the minister highlighted ongoing efforts to support civil servants through housing programmes. These include the Rangemore Presidential Housing Scheme in Bulawayo, funded by the National Social Security Authority and administered by NBS Bank.

He said government is also availing residential stands across the country at affordable rates, with approximately 26,000 stands earmarked - 20,000 in Harare and 6,000 in Bulawayo.

Despite these efforts, demand continues to outstrip supply, with authorities working to expand the programme as resources allow.

The developments highlight growing efforts by government to enforce accountability while balancing support measures for civil servants.