• CEO suspended – Ministry    

• ZACC impounds six Toyota GD6 

MIRROR REPORTER

BIKITA – The Zimbabwe Anti-Corruption Commission (ZACC) arrested Bikita Rural District Council (RDC), Chief Executive Officer (CEO) Peter Chibhi on Tuesday for allegedly borrowing US$ 191 000 from a finance company to buy six personal Toyota GD6 single cab trucks for managers without approval of the Ministry.

Chibhi spent Tuesday night in the cells and was released by Bikita Magistrate Takawira Mugabe on ZWL$50 000 bail. He was ordered to surrender his passport and report at Bikita Police Station once every week.

ZACC was to impound the six vehicles and keep them at its offices in Masvingo.

Gabriel Masvora, the head of communications in the Ministry of Local Government and Public Works said Chibhi’s arrest means he automatically goes on forced leave.

Chibhi allegedly borrowed US$191 000 from African Century Limited to purchase six Toyota GD6 single cab vehicles which were immediately registered in the names of the individual managers. The cars were bought from Faramatsi Motors and the loan attracts interest of US$30 000 which culminates into a prejudice to council of US$221 000, according to the State.

The State through its lawyer, Richard Nyamuwomba said Section 124(2)(d) of the Rural District Councils Act (Chapter 29:13) restricts a council from borrowing money unless the minister has granted the authority of subsection 4 to borrow the money.

The State also said that Section 65(1) of the Public Finance Management Act (Chapter 22:19) restricts public entities from borrowing money or issuing a guarantee, indemnity or security, or enter into any other transaction that binds or may bind that entity or the Consolidated Revenue Fund to any future commitment, unless such borrowing, guarantee, indemnity, or other transaction is authorized by the enactment which established or governs it, so long however as the applicable provisions relating to this Act are complied with.

The State said that on November 23, 2020 the RDC held a full council meeting and Chibhi was present. The issue of buying personal cars for managers was raised but it was noted that the local authority did not have enough revenue. There was then a proposal to get a loan without Ministerial approval. Chibhi entered into agreement with African Century.