admin
The report of a court case in which two Zimbabwe Revenue Authority officers allegedly colluded with a tax evader to defraud the Government of almost $7 million is worrisome.
It is alleged the two sought a bribe from the businessman whose businesses they were investigating for tax evasion through a third party.
After getting their payoff they are reported to have given the tax evader stamped papers thereby granting him a clean record yet the State did not get anything.
The two officers are believed to have received US$40 000 and a Range Rover to conceal the crime. As the story is before the courts and no verdict has been passed, it is not our place to debate the innocence or guilt of the accused.
What we are concerned with is yet another revelation of leakages in the country’s revenue collection system.
Zimra has been failing to meet its revenue collection targets and this has serious implications for all national operations including payment of civil servants who are holding their breath in anticipation of the announcement of their bonus pay dates.
Most people have assumed that the liquidity crunch hitting most companies is among major reasons why Zimra has been failing to meet its revenue targets. They have tended to downplay suspicions that there were loopholes through which tax evasion is perpetrated.
There have been endless media reports of smuggling through illegal and legal entry points into the country thereby prejudicing the State of billions of dollars in potential import duties. International haulage truck drivers have been singled out as the worst culprits with a whole book of different smuggling methods. It has become an open secret that clearing agents, especially those based in outposts like Beitbridge, are making a lot of money. Their lavish lifestyles and huge investments in real estate have raised eyebrows in many towns across the country. It is clear that very little of these activities could occur without the collusion of Zimra officials at every level.
This story seems to indicate that the shortages in the Treasury have been caused mostly by corruption within Zimra. The worrisome point is the magnitude of the figures involved in this particular case.
What makes it worse is the allegation that the officers were willing to prejudice the State of that amount of money in return for a payoff that is so insignificant compared to the principal sum owed.
How can $6,7 million be considered peanuts by any standard. It is the monthly staff costs of well over 11 000 middle level civil servants. Invested in one rural district for infrastructure development, it would bring about a discernible upgrade in lifestyles for the communities in that area.
The only positive aspect to this whole case, whatever the legal outcome, is the fact that it is Zimra that is prosecuting its own. But given the scenario that we have pointed out above, we doubt that there are effective internal monitoring systems. We think that this particular case is just the tip of an iceberg and Zimra really needs to clean its house to ensure transparency and accountability in revenue collection.
We believe that promoting the whistle-blower initiative would lead to more exposes and train officers into better public service attitudes.
Online Reporter