US$40 000: Which is which, a vehicle loan, or mortgage?

US$40 000: Which is which, a vehicle loan, or mortgage?

The real purpose for the US$40 000 windfall that was awarded to legislators by the government recently is still shrouded in confusion.

Norton legislator Temba Mliswa wrote on his Twitter handle that the money was a remainder of the vehicle loan that MPs got as part of their perks.

He said legislators were supposed to get US$80 000 for vehicles, but they bought cars worth US$50 000 only.

However, another legislator interviewed by OpenParlyZW on condition of anonymity, said the money was a mortgage scheme that was awarded to MPs to enable them to build houses on the residential stands they got under a Parliament scheme.

He said legislators had complained in the caucus meetings that in as much as they are there to serve, they wanted to leave Parliament with something for their efforts.

The legislator said this was largely influenced by the reports from the regional benchmarking visits that had been undertaken that showed that legislators in Zimbabwe were legging behind others in terms of remuneration.

‘’After the Parliamentary benchmarks regionally, we are a little bit behind, and one of the cries in the caucus was that look MPs would have earned about less than US$15 000 in their entire 5-year term. So, concerns were raised that as much as we are coming to Parliament for service, it doesn’t mean we must suffer as well.

‘’So, there was a suggestion to say at the very least is there no way of getting a residential stand and a mortgage, the same way you get your vehicle where it is paid off basically in the duration of your term. So that was the sense behind it to say at least we must have something.

‘’Think about it this way, if you get a residential stand and money, you can build a house, and these are things you should be able to do if you are on a normal salary on your own. A normal salary is a decent salary that is enough to save and look after your family,’’ he said.

Legislators in Zimbabwe are among the lowest paid in the region and the issue has been a prominent feature on the Parliament complaints table for a long time.

So dire has been the situation for the legislators in Zimbabwe that they were said to be in the habit of selling fuel coupons on the streets of Harare to supplement their income.

While figures are sketchy, legislators in Zimbabwe get a monthly salary and a siting allowance for each day they sit on Parliament business.

The legislator said the program is not new in the country, as most companies and even government departments are also doing it for their workers.

He said what could differ are the models or the size of the loans involved.

‘’It’s not just Parliament that is doing it, most companies and government departments are doing it. They buy stands and give employees mortgages, but these ones are working with banks. Most institutions are doing it due to the salary situation.

‘’So, it’s an organization-based scheme. Parliament is applying on a scheme basis, more like a mutual fund, they are residential stands schemes, then US$40 000 is a term-based mortgage loan.

‘’So, if you are to divide it by the months of the Parliament term from 2018 to 2023 you get the monthly repayment installments that should have applied,’’ said the legislator.

Asked if he will take the US$40 000, the legislator said it would be foolish not to take it.

He said legislators who are hoping to return to Parliament in 2023 are ring-fencing the funds for their campaigns.

‘’On the other side as well if you are an MP and looking to return in 2023 you would have gotten something to use in the campaigns.

This is because it is going to be difficult to get campaign money, the political parties are not even going to sponsor the 2023 elections.

‘’So, some who received the money have started chicken projects for women in their constituencies,’’ he said.

Currently, there is no clarity as to who qualifies for the money, as some legislators came to Parliament in March this year, and others were previously in Parliament but were recalled before they came back. Some of the legislators that have received the money have reportedly started chicken projects for women in their constituencies.

US$40 000: Which is which, a vehicle loan, or mortgage?

US$40 000: Which is which, a vehicle loan, or mortgage?