The Sunday News
Robin Muchetu, Senior Reporter
PRIVATE citizens are open to lifestyle audits as part of efforts by the country to eliminate all forms of corruption gathers pace, the Zimbabwe Revenue Authority (Zimra) has announced.
The revenue authority shared its first success story where a revenue officer Kennedy Nyatoti had property worth US$155 000 forfeited to the State after a lifestyle audit.
They also highlighted that the late socialite Genius Kadungure aka Ginimbi was also of interest for a lifestyle audit to ascertain how he acquired his wealth before he died.
The late Genius Kadungure
Commissioner Edward Phiri from Zimra explained that the audits were there to identify gaps that existed in citizens’ lifestyles.
“Lifestyle audits are one of the critical tools that are used in dealing with corruption, it is a basic comparison of one’s income against how it is utilised. It is an accountability tool that is used and such audits are typically conducted when the visible lifestyle and standard of living of that individual appears to exceed their known income levels. This is used for both internal and external clients.
“There are a lot of taxpayers that we use this tool with, in as much as their affairs are concerned, we have been constrained to share the results that come from it because we are bound by the Official Secrets Act. But to allay anyone’s fears, that tool is applied even to other taxpayers. We have also dealt with socialites using the same tool and the results were there for everyone to see.”
He said Zimra identifies those gaps or indicators to summon those living above their means, adding that a lifestyle audit was a very powerful tool to combat fraud.
Edward Phiri
Mr Selleck Mapfeka, the Loss Control Manager at Zimra, said the revenue assurance division and loss control division were the ones that deal with corruption internally and externally.
A Zimra integrity committee was set up in 2019 and a Corruption Diagnostic Assessment Tool which is used to measure corruption in the tax body.
“In the past we used to measure corruption based on the number of prosecutions but we realised that we were not getting what we intended. Every Zimra employee is measured on the level of corruption at the end of every quarter.
“We are focusing on internal staff; it is an integrity check and both management and staff are subject to checks against an asset declaration form which is used as a baseline for investigations,” he said.
The first success story on money laundering was recorded by Zimra involving its employee.
“A lifestyle audit was carried out on Mr Nyatoti in 2020 where he failed to declare assets worth US$155 000, a house and a car. The assets were recovered by the police.
“The case made history because Nyatoti became the first person to lose assets under the Zimbabwe Civil Based Asset Forfeiture Law in Zimbabwe,” he said.
Nyatoti was based at the Beitbridge Border Post where he was clearing immigrants’ rebates and that is where he was syphoning money from. He allegedly managed to pay lobola of US$10 000 in 2016 after commencing employment in 2014, took his family for a holiday in China where he spent US$15 000 in 2017, this is besides the mansion he built in Mabvazuva in Domboshava at a cost of over US$100 000.
However, Mr Mapfeka said this has not been the only case where they have seized assets. He said from the lifestyle audits done so far, results showed that employees have built several mansions, blocks of flats and acquired other massive properties and the cases were still before the courts. However, he said there was a decline in corruption internally.
“The statistics that we have are showing that we are rooting it all out as an authority. There is a declining trend as most of the staff at Zimra, more than 70 percent do not have adverse reports. Almost 30 percent are the ones who have adverse reports from all lifestyle audits that we have conducted,” said Mr Mapfeka.
Zimra, however, said they have realised that inter-agency cooperation was vital as more assets were discovered through that cooperation where the National Prosecuting Authority guided investigations helps in successfully prosecuting and following correct procedures at the courts.
“Our challenges include lack of resources to travel to where there are cases to evaluate property. There is also a lack of centralised databases for properties. We do not have a centralised database where all properties can be checked. You go to the Deeds office, they have what they have, go to land developers they have their own and also councils, so investigations can be limited. Yes, we have found properties but there could be more,” said Mr Mapfeka. – @NyembeziMu
