Treasury writes off MPs’ $9m debt

 

In 2010, the lawmakers suggested that they wanted their sitting allowances to liquidate the vehicle loans, but Treasury in December last year deposited a flat $15 000 in all legislators’ accounts.

This was despite the fact that some of the legislators were not entitled to the allowances, particularly some ministers.

Government has continued paying them sitting allowances monthly up to date.

Finance Minister Tendai Biti disclosed this to the House of Assembly on Tuesday.

He was responding to legislators’ queries on why Treasury took long to clear their sitting allowances since 2008.

“On the issue of your sitting allowances, we know about those things. As Minister of Finance, I think you honourable members, with due respect, should appreciate what we have done for you. We wrote off the $30 000 loan for the motor vehicles even though the law says you must pay (back). Last year we gave you that bonus, which I shall not mention, otherwise it will be written in the papers. We have done a lot of things for you because we really understand your plight. On these issues we really understand your plight.”

Minister Biti was responding to threats by legislators that they would not repay the loans as long as their sitting allowances were not cleared.

However, parliamentarians’ welfare committee chairperson Cde Paddy Zhanda, who is the Zanu-PF MP for Goromonzi North, said there was nothing to celebrate about.

“There was no such thing as vehicle loans because this was in exchange of what they owed us. We are owed more than what we have been given. Besides, why should we buy vehicles on behalf of Government for Government business, yet ministers have bought themselves several vehicles, including ministry vehicles?”

He said it did not matter that before the inclusive Government, legislators still repaid the vehicle loans under the parliamentary revolving fund.

When the legislators were given the loans, they did not sign contract forms with Treasury. They refused to have their sitting allowances liquidate the loan facility arguing that they were being paid too little.

The lawmakers also argued that their vehicles were damaged during the Constitution outreach programme, which, they argued, was a national process.

This is so despite the fact that they hired out the vehicles and were paid $80 daily for the duration of the outreach programme that took about 100 days.

Before the formation of the inclusive Government, Parliament administration managed the revolving fund and legislators would repay the loans.

However, after the formation of the inclusive Government, Treasury by-passed Parliament administration and dished out the loans directly to Members of Parliament.

In 2010, legislators suggested that they wanted their sitting allowances to liquidate the vehicle loans, but Treasury in December last year deposited a flat $15 000 into each legislator’s bank account.

The boob cost Government more than $1 million, as ministers, expelled and deceased legislators received the $15 000 perks despite the fact that some of the legislators were entitled to as little as $375, while ministers were not entitled to the perks at all.

When the $15 000 was deposited into each account in December, parliamentarians had said they would not repay the loans.

Lawmakers get $75 per day for attending parliamentary business and about $700 monthly.

They are still being paid their outstanding allowances and they argued that they are the least paid legislators in the region.

MPs from the three parties represented in Parliament recently resolved to approach financial institutions seeking a $8,52 million loan facility to import new vehicles duty free.

There are 84 senators and 199 members of the Lower House with each seeking a $30 000 loan.

The legislators want banks to assist them acquire new vehicles to replace the ones they claim are either accident-damaged or unroadworthy.

If the deal sails through, some legislators will end up having three vehicles each after receiving Reserve Bank of Zimbabwe vehicles and those bought by Treasury.

Interestingly, this Parliament is expected to end early next year while most banks are offering 24-month loans.

The parliamentary welfare committee said the vehicle facility was an initiative that did not involve Parliament or Government.

Some legislators recently said they wanted exit packages before the harmonised polls scheduled for early next year.

However, President Mugabe has scoffed at the demands saying they should go and face the people in elections if they wanted more benefits.

 

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