Ministry of Truth: Give that money to Treasury!

Cde Jason Zhuwao

Issues around Government spending have long been debated, with little emanating as tangible solutions. This week I explore the possibility of revolving funds as the solution to management of Government revenue and expenditure.

What is a revolving fund?
Revolving funds are established through legislation to account for specific Government operations that recover all or a portion of costs from users.
The revenue generated by the revolving fund is used to finance its operations, and in turn generates further revenue, hence the term “revolving fund”.
They are financed through the General Revenue Fund and have continuing authority to make payments out of the GRF for specific purposes as defined in legislation, and to recover these expenses from users.
Receipts generated are available for re-spending without further authority or appropriation.
Revolving funds are intended to operate on a break-even basis by recovering the cost of services from users. If they are unable to do so by adjusting recovery rates (ie, prices), a subsidy must be provided by the GRF through the responsible ministry’s appropriation.
A limit set by Treasury is placed on the accumulated operating surplus or deficit of the revolving fund.
This limit, referred to as an accumulated surplus or deficit limit, serves as a mechanism to control the operation of the fund within a break-even position.
Revolving funds are financed through an approved accumulated net expenditure limit with the GRF. The accumulated net expenditure limit is the borrowing limit the revolving fund has with the GRF.
There are generally two types of revolving funds: Those that are quasi-commercial in nature and provide and recover the cost of services from users external and internal to government; and those operated primarily for cost allocation within Government.
It is virtually true that all State departments and ministries should remit all the money they collect to Treasury.
It is Treasury that caters for all State expenditure. As the Ministry of Truth we have come up with this suggestion of revolving funds in the interest of transparency and accountability.
We feel that all revenue collected, no matter how little, should be remitted to Treasury to plug leakages and ensure accountability.
Money collected by Government departments and agencies, but not remitted to Treasury, is susceptible to abuse.
Government ministries and agencies should act to ensure that their collected revenue should remitted to Treasury.
The public has never been made aware of the revenue collected by, for example, the Police and how it is used.
The Ministry of Truth is of the view that there is need for all funds collected to be regularly audited to ensure transparency and accountability.
Progressive governments should pool resources before distributing them, unlike in our country where some Government departments keep what they collect.
We also believe that money should not be channelled through Zimra because the tax collector’s role should simply be to raise money and not to distribute it.
The Ministry of truth notes the significance of having a fixed timetable for remittances while also ensuring proper accounting of funds collected to plug leakages.
Several cases have come up where Zinara officers have been fingered in scams involving the awarding of road equipment and maintenance tenders among several other corrupt deals.
I remember Comptroller and Auditor-General revealing that the roads authority failed to account for some millions meant for the Roads and Road Traffic Fund, to provide tools and equipment for road construction and maintenance during the inclusive Government era five years ago.
The Ministry of truth suggests that there be a breakdown of all money collected since introduction of toll gates and how this money has been used.
We need transparency.
Zimbabwe’s Constitution requires open, transparent and responsive governance and enshrines the rights of citizens to access information and facilitate their participation in governance.
It is a fact that the public should know how much ZRP has collected at roadblocks and how the money was used.
Also in the interest of transparency, Zimbabweans are entitled to know how money from the Aids Levy, deducted from our salaries, is used.
They want to know how organisations such as the Zimbabwe Electricity Supply Authority, which collects a Rural Electrification Levy, use such funds.
At a time when Government is upping its game — hence crafting of the National Code of Corporate Governance which, among other deliverables, aims to curb corruption in both the public and private sectors, while enhancing accountability and transparency, ensuring full disclosure — it is imperative that every arm of the State is open to appropriate financial scrutiny.
I hope the Minister of Finance realises the loopholes and the financial tributaries which can support.
The minister could start by reviewing all financial legislation, policies, regulations and Statutory Instruments under his brief.
We are calling for 100 percent remittance to Treasury. Let us support efforts by His Excellency, the President of Zimbabwe, who has always been for the masses.

Cde Jason Zhuwao is district chair of the Zanu-PF Harare Central Youth League and CEO of the Team Zanu-PF Live, the party organ for mass dissemination of information, research, mobilisation, networking, live updating of current affairs and e-media campaigning