ZRP roadblocks rake in US$60 million

The Zimbabwe Republic Police (ZRP) expects to collect nearly US$60 million from traffic fines this year, nearly double last year’s projection, according to Parliament’s budget oversight office.

The police’s pervasive presence on the country’s roads has drawn complaints from frustrated motorists, commuters and tourists, triggering debate within Cabinet and Parliament.

The ZRP has never revealed how much it collects from traffic fines and, three years ago, angrily reacted to projections by former Zimbabwe Revenue Authority (Zimra) chief, Gershem Pasi, that they were collecting between US$3 million and US$7 million monthly.

Pasi also proposed that the money should be deposited into the Consolidated Revenue Fund (CRF).

Now, a report by the Parliament Budget Office (PBO) has blown the lid off revenue collection from government departments, including the ZRP and the Registrar General’s office, in fines and user fees. The PBO, which began operating in September 2016, provides technical advice to Parliament in matters relating to the budget, economic policy and money bills.

The budget oversight organ’s report shows that the ZRP is working with a US$59 million revenue collection target this year, while the Registrar General’s department expects to collect US$27 million.

National police spokesperson Charity Charamba said she was not aware of the report.

“I am not aware of that report or such projections and cannot comment about that,” she told the Financial Gazette.

Probed on how much the police raised last year and revenue forecasts for 2017, Charamba said: “I am a PR person, you get such figures from another department. For those projections why not ask those who compiled the report?” she said. To Page 55

The PBO’s figures are in line with government expenditure estimates, which also reveal that Treasury, which allows the ZRP to retain money collected from fines to fund its operations, has budgeted for a 90 percent increase in traffic fines this year from the 2016 figure, possibly explaining the police’s aggressive revenue collection methods.  Treasury’s 2017 estimates of expenditure reveal that the ZRP expects to collect US$59,1 million in 2017, up from the US$31,47 million fines haul it expected the force to register in 2016.

Of the US$59,1 million, the ZRP is expected to spend US$32,17 million on goods and services, US$18,1 million on maintenance and US$8,1 million on the acquisition of capital assets.

The government even expects US$678 000 of ZRP salaries to come from the fines fund this year. ZRP salaries will account for US$323 million of the total Ministry of Home Affairs 2017 budget allocation of US$364 million.

In the 2016 financial year, the ZRP used US$12,5 million from fines revenue to purchase “vehicles, plant and mobile equipment”, Treasury documents show.

The retention of funds by government departments started during the hyperinflationary era, which peaked in 2008, as delays in disbursements from the CRF often resulted in loss of value. As a result, Treasury allowed the departments to retain revenue to fund their operations.

However, the Constitution requires that all revenue collected by government departments should be deposited into the CRF, although it allows exceptions to be made in terms of an Act of Parliament.

Using this loophole, government has allowed several departments, including the police and the registrar-general, to continue holding on to revenue they collect, in terms of Treasury approvals under the Public Finance Management Act. Financial Gazette