eBusiness Weekly
Taking Stock Kudzanai Sharara
In 2018, Zimbabwe was ranked number 160 on the Corruption Perceptions Index (CPI) by Transparency International. The CPI, which ranks 180 countries and territories by their perceived levels of public sector corruption according to experts and businesspeople, uses a scale of zero to 100, where zero is highly corrupt and 100 is very clean. Zimbabwe scored 22 on that index.
This poor showing shouldn’t come as a surprise. Apart from economic sanctions imposed on the country by western powers, abuse of office and of course other ill-conceived economic policies, corruption should rank as one of the biggest problems that has had a significant negative impact on the country’s economic wellness.
Even during the Mugabe era, corruption was rampant although the now disposed leader, apart from calling his ministers out, never acted on it.
In 2012, Mugabe expressed disappointment by his appointees, accusing them of demanding bribes from foreign investors including former South African president Thabo Mbeki.
At a Zanu-PF conference Mugabe hinted: “I was getting complaints from outside. Former South African president Thabo Mbeki was saying some of their people in the ANC wanted to come intending to do business and this is what they have been told: “If you want to do this business, you bring US$5 million and from that US$5 million we take US$1 million that we will take to the minister to give to the president,” Mugabe said.
“If I get information stating that so and so minister is doing this, he goes. Unfortunately, sometimes complainants do not want to identify the ministers, fearing persecution but that is happening in the ministries,” he said then and that was that, he never took further action.
Years later he was at it again talking about the allegedly missing $15 billion from the diamond sector, but again no action was taken to date.
His successor, President Mnangagwa has also promised to fight the scourge and has set up anti-corruption units and strengthened existing ones. ZACC now has “new teeth” according to President Mnangagwa after it was given arresting powers. The teeth are now showing following the arrest of two senior Government officials.
The public officials are Environment, Tourism and Hospitality Industry Minister Prisca Mupfumira and former Principal Director State Residence in the Office of the President and Cabinet Douglas Tapfuma.
Personal interests, greed and avarice continue to undermine the Government’s capacity to allocate resources effectively and to deliver services. The result is poverty and deprivation which in turn has led to frustration, disillusionment.
Even without the CPI’s ranking, there’s growing evidence that corruption has resulted in the ineffective use of state resources aimed at providing essential services. Corruption in both public and private sector has led to neglect in providing health care, education, employment opportunities, housing, roads and security.
The economic cost of corruption
The role of human capital on economic growth has long been established. So when human capital takes a hit the impact is also felt on economic development and growth.
Let’s take ZIMDEF as an example of a public organisation where corruption is believed to have taken place. In 2016, the then Minister of Higher and Tertiary Education Prof Jonathan Moyo was accused by the Zimbabwe Anti-Corruption Commission (ZACC) of allegedly benefiting from close to US$270 000, which was siphoned from Zimdef. The funds were supposed to be for students at tertiary institutions.
Then at the Ministry of Primary and Sec Education, a total US$6 million for books for the Curriculum Development and Technical Services was received, but the money was diverted to other ministry costs, according to the Auditor General’s report for 2018.
And over the years, millions of dollars earmarked for youth empowerment projects were mostly accessed by dubious characters who never bothered to pay back. This not only jeopardises chances of similar programmes being put in place but also portends irredeemable long-term opportunity costs. Corruption compromises people’s futures and their development. It also costs a fortune. Rampant corruption will drain any economy of the resources needed for projects like infrastructure development.
To illustrate, let’s take a look at the misuse of funds at ZESA.
In 2015, the power utility through its subsidiary ZPC prepaid $5 million for a solar power project, but 4 years down the line there is nothing on the ground that justifies that payment.
We are all in the dark amid accusations and counter accusations between the parties involved. While that particular deal has been played out in the public domain no one, except the Auditor General is blowing the whistle, on Pito Investments which also got $4,9 million for transformers which have not been delivered nine years later.
These are, however, small amounts compared to the debacle that was the 100MW Dema diesel plant. The tender was initially awarded to a company called APR Energy, but was later to be executed by Sakunda at US$500 million, double the initial cost. It was a short lived experiment as the plant can’t even help us in our darkest hour of need. Capital projects typically increase national income and better a country’s ability to pay for its needs. But these embezzlements are missed opportunities to expand the country’s inadequate and dilapidated infrastructure.
Finding solutions
Given these observations, what measures can Zimbabwe take to stem the debilitating theft of public resources?
First, the legal system must make corruption expensive and unattractive for perpetrators by the imposition of mandatory jail sentences.
Second, all the proceeds from corruption must be repossessed by the state and channelled back to public use.
Third, there are scientific mechanisms for detecting unethical people before they are selected. Strict standards of ethical conduct could be imposed for anyone holding a public office. This must be preceded by public declarations of wealth and lifestyle audits.
Fourth, appointment to key Government institutions must be on merit. Without that expect no change. Maybe such appointments must be done through parliamentary processes or public interviews. Like what was done when ZACC commissioners were appointed.
Fifth, collective campaigns for public procurement transparency by the business community can also prevent politicians from using the private sector to plunder state funds.
The scourge of corruption in Zimbabwe must be urgently addressed otherwise it could bring the economy to its knee.
