Car rebates scandal: Ghostly discounts haunt Zim civil servants

Car rebate scandal: Ghostly discounts haunt Zim civil servants – Tables have turned for some civil servants as they appear to be in hot water for playing fast and loose with the vehicle rebate system.

Reports suggest that certain government officials have been bringing vehicles into the country and skipping out on paying any duties, all while making a tidy profit by doing it for others.

In July 2022, the promulgation of Statutory Instrument (SI) 124 of 2022 set out the guidelines for the rebate of duty on motor vehicles imported or taken out of bond by civil servants and independent commission members. These regulations are in accordance with the Customs and Excise General Regulations, specifically SI 154 of 2001.

For a government employee to be eligible for a duty rebate on a motor vehicle, they must have a valid driver’s license and have served for a minimum of 10 years. Additionally, only one vehicle may be imported every five years, and the value of the vehicle will be determined based on the employee’s rank within the government.

Reports have surfaced on NewsDay this week, claiming that the vehicle rebate system in Zimbabwe is being exploited and taken advantage of, prompting both the Zimbabwe Anti-Corruption Commission (ZACC) and the Zimbabwe Revenue Authority (ZIMRA) to launch an investigation into the matter.

ZACC’s deputy chairperson, Kuziwa Murapa, recently revealed that as of October last year, a staggering 19,000 civil servants were suspected of engaging in corruption regarding the misuse of import duty rebates for vehicles.

It appears that these civil servants are going above and beyond the call of duty by importing vehicles for others, all while pocketing a hefty fee. The cost of their services ranges from US$700 to US$1,500, dependent on the type of vehicle imported.

Interestingly enough, the vehicle will technically be registered under the civil servant’s name, even though they are not the ones driving it.

The government has extended the duty-free importation waivers for civil servants who wish to bring in motor vehicles. Nevertheless, growing concerns suggest that some of these cars may be making their way to dealership floors.

Depending on the make and price of the car, reports indicate that these individuals are receiving compensation of up to US$1,000 for each vehicle they import.

In addition to civil servants importing vehicles for others, NewsDay has received reports that some car dealers in Harare and other areas are also using the names of civil servants to avoid paying customs duty for imported cars. Allegedly, some civil servants who do not require a duty-free car themselves are being offered payment in exchange for using their name in this fraudulent practice.

As a result of this fraudulent activity, the State is experiencing a significant loss of revenue, given that individuals who would have otherwise been required to pay duties and taxes are now importing vehicles duty-free.

In a conversation with NewsDay, an anonymous civil servant alleged that both ZIMRA and ZACC are unfairly singling out civil servants with allegations of corruption, and cautioned that a comprehensive investigation ought to be conducted.

The victim in question shared, “ZIMRA and ZACC are working together to apprehend civil servants linked to rebates, accusing them of fraudulent behavior. According to their investigation, the reference numbers found on the rebate forms are deemed counterfeit.”

The victim further questioned, “My main concern is how they can determine whether a reference number is authentic or fraudulent. All we receive are letters, and the rebate system is vulnerable to exploitation. ZACC seems to lack a comprehensive understanding of the process, and is falsely accusing individuals of fraudulent actions. This is resulting in unjust targeting. A thorough investigation needs to be conducted, as many innocent individuals have been improperly apprehended.”

An additional civil servant expressed concern over the increasing frequency with which civil servants are being apprehended regarding rebate-related matters.

The government employee stated, “We are being apprehended and publicly shamed in court. Many of us cannot even afford basic necessities, let alone vehicles that would justify a rebate request. Our salaries are meagre, and we are undergoing financial hardship. It seems like they are simply harassing us. It is crucial that justice is served in this matter.”

David Dzatsunga, the chairman of the Zimbabwe Confederation of Public Sector Trade Unions, recognized the presence of instances in which civil servants are being accused of potentially misusing the rebate system.

Dzatsunga stated, “We have been made aware of circumstances where individuals have allegedly exploited the scheme by importing vehicles for parties other than themselves through questionable arrangements. Unfortunately, if there are illegal activities taking place, our ability to intervene is limited. I anticipate that the authorities are actively conducting investigations into these matters.”

Takavafira Zhou, the president of the Progressive Teachers Union of Zimbabwe, contended that the cumbersome rebate application procedure fosters corruption.

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Zhou explained, “The rebate application process presents several problems. Primarily, the processing time and the timing of purchasing a vehicle do not align. It is a frustrating process that involves district, provincial, and head offices. It should be noted that rebates are not exclusively available to teachers, but also to those in higher positions within the government.”

Several attempts to obtain a statement from Thandiwe Mlobane, the spokesperson for ZACC, proved futile as her phone was unresponsive.

Repeated attempts to reach Francis Chimanda, the head of corporate communications for ZIMRA, were unsuccessful as his phone went unanswered.

-Afrogazette-