High Court Orders Repayment of ZiG200 Million by Ministers Over Unapproved Loans

The High Court recently ruled that two Zimbabwean ministers repay over ZWG200 million after borrowing from critical government funds without Treasury approval. The judgment has spotlighted public funds’ mismanagement.

Public Service Minister July Moyo and Higher Education Minister Frederick Shava were found to have taken substantial sums from funds earmarked for social welfare without proper authorization.

The funds, intended for society’s most vulnerable, included the Child Welfare Fund, Older Persons Fund, and others crucial for public assistance, as noted by the Auditor-General’s 2023 report.

The lawsuit was brought forward by Marvellous Kumalo, an ex-opposition legislator, who argued that the ministers’ actions violated the Public Finance Management Act and the Constitution, highlighting the necessity for accountability in public offices.

Represented by Zimbabwe Lawyers for Human Rights, Kumalo emphasized that borrowing funds without following legal protocols compromised transparency and accountability in Zimbabwe’s governance.

Justice Gladys Mhuri ordered Moyo and Shava to repay a total of ZWG206,370,840. The court’s directive aims to restore funds critical to welfare services supporting vulnerable groups nationwide.

Moyo is required to repay ZWL$515,657,986 from the Sustainable Livelihoods Fund, ZWL$3,544,915 from the Child Welfare Fund, and ZWL$153,468 from the Older Persons Fund.

Shava is mandated to return ZWL$5,250 from the Industrial Training and Trade Testing Fund and ZWL$2,123,558 from the Skilled Manpower Trade Testing and Certification Fund, all within three months.

Additionally, the ministers must seek Treasury authorization for any previously borrowed sums within 60 days, a decision underlining the court’s commitment to enforcing financial oversight in government operations.

This ruling has reignited debates over financial transparency and the use of public funds, putting Zimbabwe’s top officials under scrutiny for fiscal discipline and accountability.

The court’s mandate serves as a reminder of the need for adherence to Zimbabwe’s financial laws, especially by those in high-ranking positions tasked with safeguarding public resources.

The Zim Bulletin