A LOCAL citizen has dragged government to court to repay more than half-a-billion United States dollars used by the Finance, Economic Development and Investment Promotion ministry following unauthorised borrowing from Sustainable Livelihood Fund, which is under its management.
Marvelous Khumalo approached the High Court to compel the ministers of Public Service, Labour and Social Welfare as well as Higher and Tertiary Education, Science and Technology Development to reimburse the funds.
He cited section 116(9) of the Public Finance Management Act arguing that the ministers have to repay the money borrowed from relevant statutory funds.
Khumalo, represented by the Zimbabwe Lawyers for Human Rights in his application for mandamus, said he had a duty to ensure that the Constitution, particularly the principles of public financial management, transparency and accountability, are respected and are handled in a manner that does not expose them to corruption and abuse.
He submitted that on or around 2021, the Public Service minister borrowed ZWL$39 664 164 from the Sustainable Livelihood Fund.
He said this was revealed in the Report of the Auditor-General on Appropriation Accounts, Finance and Revenue Statements and Fund Accounts for the year ended December 31, 2023.
In 2022, Khumalo submitted, the minister also borrowed ZWL$106 186 447 from the fund, while another ZWL$369 807 375 was borrowed the following year.
He submitted that the ministry in 2021 borrowed ZWL$3 544 915 from the Child Welfare Fund and the money remained outstanding as of last year.
- Fresh land invasions hit Whitecliff
- Pomona cash row escalates
- Border Timbers targets European markets
- SA name strong A side for Zim tour
Keep Reading
In 2022, the ministry borrowed ZWL$153 648 from the Older Persons Fund and the money remained outstanding as of September 2023.
Khumalo further submitted that around 2019, the Higher Education ministry borrowed ZWL$5 250 from the Industrial Training and Trade Testing Fund, a fund under its management.
The advanced monies have not been reimbursed as confirmed by the Auditor-General’s report.
He said the same ministry also borrowed ZWL$2 123 558 from Skilled Manpower Trade Testing and Certification Fund in 2020 in violation of section 116(9) of the Public Finance Management (Treasury Instructions) Act, 2019.
Khumalo argued that section 116 of the Public Finance Management (Treasury Instructions) Act, 2019 [Chapter 22:11] prohibits accounting officers from borrowing money from funds within their ministries for purposes of financing appropriation budgets without prior written authority from the Treasury.
He submitted that in breach of section 116 of the Public Finance Management (Treasury Instructions) Act, 2019 [Chapter 22:11], the Minister of Public Service borrowed the money, which was confirmed by the Auditor-General’s report.
Khumalo said the Higher and Tertiary Education minister was also in breach of the Public Financial Management legislation section after borrowing money from the Industrial Training and Trade Testing Fund and Skilled Manpower Trade Testing and Certification Fund without the approval of Treasury.
Khumalo said in handling and dealing with public finances, the ministers ought to ensure transparency and accountability saying this would ensure that there is no corruption and abuse of the funds by parent ministries.
“The failure by the respondents to seek prior approval of Treasury before borrowing from the funds is clearly against the principle of transparency and is unlawful.
“The Auditor-General’s report further raises concerns of concealment of over expenditure on voted funds by a parent ministry as a result of the unauthorised borrowing,” Khumalo said.
He said the statutory funds are established with a specific mandate, saying for example, the Child Welfare Fund was established for the development and promotion of the welfare and protection of children and young persons.
Khumalo said the Auditor-General noted that failure to reimburse the borrowed money by the parent ministry may result in the fund failing to meet its objectives.
He said he had no other remedy as the respondents are the only ones who have the power to rectify the current state of affairs by ensuring that the required authority is sought and that the borrowed money is reimbursed.
The matter is pending.
