Public Service Minister July Moyo and Higher and Tertiary Education Minister Fredrick Shava have been directed to return ZWG200 million after borrowing funds without necessary approval from the Treasury.
High Court Justice Gladys Mhuri ruled that the two ministers must reimburse a total of ZWG206,370,840 to the Sustainable Livelihoods Fund, Child Welfare Fund, Older Persons Fund, Industrial Training and Trade Testing Fund, and the Skilled Manpower Trade Testing and Certification Fund within three months.
The ruling follows a lawsuit by former opposition lawmaker Marvellous Kumalo, who argued that the ministers had breached the Public Finance Management (Treasury Instructions) 2019 and constitutional principles by using government funds meant for welfare and development initiatives without Treasury approval.
Kumalo, represented by lawyer Tonderai Bhatasara from Zimbabwe Lawyers for Human Rights, filed his case on September 24, 2024. He claimed that the ministers’ actions undermined transparency and accountability principles outlined in section 298(1)(a) of the Constitution, which mandate proper management and oversight of public funds.
Kumalo argued that the ministers’ failure to obtain prior approval before drawing from these essential funds violated section 116 of the Public Finance Management (Treasury Instructions) 2019. This regulation prohibits officials from borrowing from ministry funds to finance budget allocations without written Treasury authorization.
The Auditor-General’s 2023 report highlighted these unauthorized borrowings between 2019 and 2023. The report detailed the ministers’ actions as violations of both the Public Finance Management (Treasury Instructions) and constitutional financial management principles.
In her ruling, Justice Mhuri ordered Minister Moyo to repay ZWL$515,657,986 (equivalent to ZWG206,368,508 as of April 5, 2024) to the Sustainable Livelihoods Fund within 90 days. Similarly, the Minister of Public Service, Labour, and Social Welfare was instructed to reimburse ZWL$3,544,915 (ZWG1,418.69) to the Child Welfare Fund and ZWL$153,468 (ZWG61.49) to the Older Persons Fund within the same timeframe.
Minister Shava must repay ZWL$5,250 (ZWG2.10) to the Industrial Training and Trade Testing Fund and ZWL$2,123,558 (ZWG849.86) to the Skilled Manpower Trade Testing and Certification Fund within 90 days. Additionally, both ministers were ordered to seek retrospective Treasury approval for all funds borrowed from these accounts within 60 days.
Kumalo stated that his actions were motivated by a commitment to safeguarding public financial integrity and ensuring that principles of accountability and transparency are upheld, protecting public resources from misuse and potential corruption.
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