Some of the civil servants recently allowed to import vehicles duty-free are now abusing the privilege, importing vehicles for other people and charging a “fee” of between US$700 and US$1 500 depending on the type of vehicles.
The vehicles remain registered in the names of the civil
servants involved while being driven by others. This means that the civil
servant, who is allowed to import only one car every five years, has to
continue walking while someone else pays to drive “their car”.
So far at least 6 800 civil servants countrywide have
managed to import vehicles duty-free while other applications are still
pending.
However, many car dealers in Harare are now importing
vehicles in the name of civil servants duty-free and the civil servants, in
turn, get a payment for allowing their name to be used to evade customs duty.
This fraud has prejudiced the State of revenue as people
who should pay duty are now importing cars for free, and while some of the
saved duty ends up with a civil servant rather than the car buyer, the
Government still loses out.
The imported cars often end up on display at car sales and
other garages. In some cases, the civil servants import the vehicles for
individuals who then pay a “token of appreciation”.
Conditions for the rebate are that the employee must have a
valid driver’s licence, must have served for not less than 10 years, only one
car can be imported every five years and the car value depends on the
employee’s grade.
According to Statutory Instrument 80A of 2022, grade B and
C in the civil service can import a vehicles with a maximum value of US$3 500,
those in D and E US$5 000 and deputy directors US$10 000.
The vehicle must be less than 10 years old from date of
manufacture at the time of import, as is now the case with all imported
vehicles.
Public Service Commission secretary Ambassador Jonathan
Wutawunashe said the abuse of the rebate through importing vehicles for third
parties was criminal and those caught will be dealt with in terms of the law.
“That is corruption. It is supposed to be a non-monetary
benefit and if one decides to sell his or her car, duty must be paid.
“The Government sacrificed its revenue and allowed civil
servants an opportunity to own vehicles. Treasury is being denied revenue for
the sake of catering for civil servants. If any of the civil servants is caught
on the wrong side of the law, stern action will be taken,” said Amb
Wutawunashe.
The Herald visited a number of car sales in Harare to
establish the truth.
Almost all car dealers are familiar with the fraud and they
have their own set fees for the civil servants who are interested in the duty-free
import deal.
A journalist was deployed at carsale premises at the
intersection of Epton Road and John Landa Nkomo Avenue where he posed as a
civil servant inquiring about the duty-free import deals.
He was taken to a young man only identified as Manyeruke,
who claimed to have connections throughout the civil service.
“Which Government department do you work for? For how long
have you been employed? What’s your grade?” asked the lad, who appeared
knowledgeable with the Government systems.
“For employees in Grades B and C, we can offer you between
US$700 and US$900 depending on the type of vehicle. But for those senior nurses
who are in the same grade with some doctors, they can get up to US$1 500 but
its negotiable.
“We will sell the car after importation but it remains
registered under your name for some time,” said Manyeruke.
Another car dealer who operates along Seke Road said he
deals with senior Government employees who are entitled to importing vehicles
worth up to US$10 000.
“Cars are now expensive. It’s no longer easy to find a car
worth US$3 500 these days. Prices went up and we are now dealing with senior
officers who are allowed to import vehicles ranging between US$5 000 and US$10
000.
“In return, we can pay the officer up to US$1 500 depending
on the type of car,” said the car dealer.
The SI notes that the rebate of duty can only be granted in
respect of one motor vehicle imported or taken out of bond by a serving public
servant of Zimbabwe who is employed in the Service Commissions and who is not a
senior civil servant issued with a condition of service motor vehicle. The
beneficiary, the SI states, should not be under any disciplinary proceedings.
The SI further states that the maximum import value of any
motor vehicle shall not be more than maximum amounts agreed per grade. The SI
states that the Secretary may only grant a rebate for motor vehicles purchased
from traceable and registered car dealers and can request for proof of source
of funds.
In consideration of an application for a rebate, the SI
said the commissioner may revalue the motor vehicle in line with the existing
customs valuation regulations in cases where they suspect undervaluation of the
motor vehicle; or disqualify any applicant that wilfully undervalues a motor vehicle
imported in terms of this rebate. Herald
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