(NEWZIMBABWE) Biti freezes CDF, risks MPs' ire

Biti freezes CDF, risks MPs' ire
24/10/2012 00:00:00
by Staff Reporter

FINANCE Minister Tendai Biti last night faced open revolt from MDC-T and Zanu PF MPs after stopping the disbursement of the $5 million Constituency Development Fund until after next year’s elections.

Biti, due to announce the 2013 budget on November 15, wants a tough new law passed to prevent the abuse of the fund before MPs receive the US$50,000 for each constituency.

Four MPs were arrested earlier this year after shocking details of how they abused the fund for personal benefit emerged during an audit.

The Finance Minister is determined to stop the abuse and a new Bill currently being drafted will see MPs who loot the fund jailed for five years.

Biti is supported by Constitutional Affairs Minister Eric Matinenga, who says there is less than six months before the current parliament is dissolved and disbursing the funds now could lead to a spending spree by some lawmakers who may not retain their seats, making it difficult to account for how the money was spent.

But Biti’s decision to delay disbursements until the next Parliament – expected after the March 2013 elections – has put him on a collision course with legislators.

Zanu PF chief whip Joram Gumbo said the move was “retrogressive”.

“The money should not be deposited in personal accounts but should go to a constituency account that must be properly accounted for by financial rules put in place,” Gumbo said.

He added: “Does it mean that all the ministries are not going to get their allocations because it is not certain that the current ministers will return to their respective ministries after elections?

“I don’t think that is a serious move, it’s retrogressive.”

MDC chief whip Innocent Gonese said: “The beneficiaries of CDF are the people in the constituencies. We must not punish them because of that issue [imminent elections].

“As a matter of principle, what should be done is to disburse the money to the MPs and put in place a mechanism to account for the money if one loses the elections.

“I think there is still enough time for the MPs to identify areas that need development in their constituencies and the money should be disbursed to them.”