Zimbabwe has no shortage of money. The problem is mismanagement of that money- MP says

Kadoma Central legislator Gift Mambipiri says there is no shortage of money in Zimbabwe but the problem is mismanagement of that money.

Speaking during the debate on the proposed introduction of an Act on share ownership schemes,Mambipiri said he was opposed to the idea because developmental programmes in Zimbabwe were not progressing because the country did not have money but it was because of the mismanagement of funds.

He cited the examples of the Zimbabwe Broadcasting Corporation where management was earning $40 000 a month while workers were not being paid and that of the Public Service Medical Aid Society where bosses were getting $500 000 while members could not get medication.

Mambipiri cited nine reasons why he was opposed to the idea.

HON. MAMBIPIRI: Thank you Hon. Speaker.  I believe that our communities do not have developmental programmes. They are not progressing not because we do not have money but you would find that at times we have had access to money and resources but because of the mismanagement of funds for example, the ZBC at one point had a lot of money but they were not able to pay their workers whilst their management was earning US$40,000 per month. We have examples of the PSMAS scheme where people would go to seek medical attention but they would not find medication whilst hospitals were lacking finances and doctors were lacking finances. The bosses were getting US$500 000, which shows that our problem is not lack of funds or lack of money but it is the issue of mismanagement of money.

Secondly, the reason why I differ with this proposal is that putting 5% is a repetition of what is already in the Constitution.  The Constitution in Section 301 (3) talks about the Annual Budget, where there should be 5% which is allocated to developmental programmes through the devolution fund. This money is in existence but I do not see the need or the reason.

The third reason why I do not agree with this proposal is that we might be using the community ownership scheme as an example. This is a tax that will be applied to businesses on top of other taxes that they are already paying. When we look at it as a tax of 5% every month, this means that we have added the burden of taxation to companies that are already overburdened with taxes. When we look at businesses in Harare, when we were crafting our Annual Budget in November last year, businesses were saying that the taxes that they pay are now around 30%.  This means they also have another 3% which is 33; they have 33 taxes altogether. Now, they will have 34 taxes altogether. This is counter-productive in terms of development in businesses.

Fourthly, it is because the money that is being spoken about is quite significant. Five percent is a lot for most businesses. You would find that they are struggling, they are just breaking even so that they pay their workers and make just a small profit, which means that some companies would not be running viable businesses. These are companies that are creating employment and this might affect this.

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