‘Garrison Shops self-financing’

Herald Reporter
The 2,5 percent monthly contribution to the Government Employees Mutual Savings Fund (GEMS) is voluntary and the funds will not be used to fund Garrison Shops where members of the security forces will get cheaply priced basic goods, the Public Service Commission (PSC) has said.

In February, the Government announced it would be introducing GEMS with an upfront injection of up to $200 million in seed capital.

Civil servants would then access the money as loans offered on the basis of cost recovery plus a small loan interest estimated at between 7 percent and 12 percent per annum.

In a statement on Friday, Secretary (for) Service Commissions Ambassador Jonathan Wutawunashe said GEMS was a voluntary scheme that mobilises savings by Government employees for the purpose of wealth creation to benefit contributing civil servants while they are still serving, and after leaving their jobs.

“The principal benefit for members of GEMS is access to affordable loans while having the added benefit of accumulating personal savings,” he said.

Ambassador Wutawunashe said “there is no link” between the 2,5 percent monthly contribution and the setting up of Garrison Shops.

He said Garrison Shops were a separate initiative approved by Cabinet.

“Of note, however, is the fact that this is resuscitation of a project that has been there for years.

“In terms of physical structures, Garrison Shops already exist in cantonment areas to ensure that members stay on duty in the confinement of their military stations, without having to go shopping outside cantonment areas,” said Ambassador Wutawunashe.

He added that Garrison Shops are based on a self-financing model as they entail selling of goods to customers.

Turning to loans under GEMS, Ambassador Wutawunashe said contributors will access the funds and there will be no waiting period.

Members start accessing loans immediately after the first contribution is made through a deduction by the Salary Service Bureau (SSB).

Once one has fully repaid the initial loan, they can borrow again.

Ambassador Wutawunashe said the GEMS Fund will operate like a Mutual Fund and members’ contributions will be accrued, tracked and recorded on a monthly basis, which eliminates chances of misappropriation.

Upon termination of employment, a member can withdraw all contribution with accrued interest, but any outstanding loan obligations will be settled first.