Civil servants are under investigation for allegedly abusing the vehicle discount system as it emerged that some government employees were importing duty-free vehicles on behalf of other people for a fee.
Statutory Instrument (SI) 154 of 2001 (General Customs and Excise Regulations) as read with SI 124 of 2022, issued in July 2022, provides for the deduction of customs duties on imported or debonded motor vehicles by civil servants and members of independent commissions. .
The government employee must possess a valid driver’s license and must have served for a period of at least 10 years. Only one vehicle can be imported every five years and its value depends on the employee’s grade.
NewsDay heard this week that the rebate system is being abused, necessitating investigation by the Zimbabwe Anti-Corruption Commission (Zacc) and the Zimbabwe Revenue Authority (Zimra).
According to Zacc vice president Kuziwa Moraba, by October last year, 19,000 government employees had been investigated for corruption involving the misuse of import duties on vehicles.
Civil servants import vehicles for other people and charge fees ranging from US$700 to US$1,500 depending on the type of vehicle.
However, the vehicle will be registered in the name of the civil servant concerned while it is being driven by the other person.
The government extended the exemption to civil servants to import vehicles duty-free. However, there are concerns that imported cars could end up at car dealers.
Up to $1,000 is paid per vehicle depending on model and price.
NewsDay has also heard that some car dealers in Harare and other areas are importing vehicles in the names of duty-free civil servants, and civil servants, if they don’t want a duty-free car themselves, can pay to have their names allowed to be used to evade customs duties.
The fraud has hurt the country’s revenues as people who have to pay the duties are now importing cars duty-free.
A government employee, who requested anonymity, told NewsDay that Zimra and Zak unfairly targets civil servants, accusing them of corruption, adding that there is a need for a comprehensive investigation.
“Zimra in collaboration with Zacc arrest civil servants over rebates. They accuse them of fraud. They check the reference number that will be on the debit [form]“And they say it’s fake,” the victim said.
“My problem is how to check if this reference number is fake or original. We are only receiving messages. The debit system is porous and Zacc does not understand the process to the extent that they think they have caught the scammers but that is not the case. We are being unfairly targeted. There is a need for a thorough investigation. We have “Many innocent people have been arrested.”
Another government employee raised concerns about the alarming number of civil servants who have been arrested in connection with deductions-related cases.
“We are being arrested and brought before courts. Many of us can barely afford rent and food, let alone cars that would justify claiming a deduction. We are poorly paid, and we are struggling. They are just harassing us. There is a need for justice in this matter,” the government employee said. “.
President of the Zimbabwe Federation of Public Sector Trade Unions, David Dzatsonga, acknowledged that there had been cases where civil servants had been charged for allegedly abusing the rebate system.
“We have heard cases of this kind where people have allegedly fraudulently abused the scheme. They import cars for people other than themselves and then make these ridiculous arrangements. When it comes to illegal cases, there is not much we can do. “I am sure the authorities will conduct investigations.”
“We realize and hope that too many people will not be caught on the wrong side of the law.”
However, Zimbabwe Progressive Teachers Union president Takavvira Chu said the lengthy retrenchment application process encourages corruption.
“One problem is that when you apply for the rebate and want to buy a car, the processing time and the time you want to buy a car are different. The process is frustrating. The process goes through the district, county and head office. “Please note that the rebates are not primarily intended for teachers, but rather for those holding senior positions in the government,” Zhou said.
Repeated efforts to get a comment from Zacc spokesperson Thandiwe Mlobani were futile as her phone was not reachable.
Efforts to get a comment from Zimra’s Head of Corporate Communications, Francis Chimanda, were futile as his phone rang unanswered. Newsday
