Members of Parliament from the ruling Zanu-PF party have called for the disbursement of Constituency Development Fund (CDF) allocations in United States dollars, as they expressed concerns about service providers rejecting the local currency. They raised these issues during an induction workshop for legislators. Notably, the workshop was boycotted by opposition CCC MPs who were protesting the removal of their colleagues through a contentious recall order issued by the party’s self-appointed secretary general, Sengezo Tshabangu.
The ruling party legislators, who have been unable to challenge the government’s economic policies, acknowledged that funds distributed in the local currency made it challenging to procure essential materials for completing projects funded by the government’s CDF grants. Currently, all 210 constituencies in Zimbabwe receive the equivalent of US$50,000 in CDF, converted to the local currency based on the prevailing exchange rate on the day of disbursement.
Musa Ncube, MP for Tsholotsho South, explained the difficulties they faced with service providers who were reluctant to accept local currency. He mentioned that, as a result, they often channeled the funds towards purchasing cement, one of the few construction materials still available in the local currency. Ncube highlighted the urgency to spend the funds quickly before they were eroded by inflation, as transporters were also reluctant to accept the local currency, which couldn’t be used to purchase fuel priced in US dollars.
Farai Jere, legislator for Murewa West, expressed the view that the government grant was insufficient to execute successful community projects, suggesting that the amount should be increased so that each MP could undertake a project in every ward of their constituency.
Priscilla Moyo, MP for Mwenezi West, called for the prompt disbursement of the grant to mitigate the impact of inflation. The National Assembly speaker, Jacob Mudenda, acknowledged the importance of administering the CDF in US dollars, noting that it was necessary to address the issue with the Minister of Finance due to supplier demands for payment in USD.
However, the MPs’ demand for CDF disbursement in US dollars faces resistance from President Emmerson Mnangagwa, who has repeatedly stated his commitment to retaining the local currency. In his recent inaugural speech, Mnangagwa emphasized that Zimbabwe would not abandon its own currency, asserting that no country had ever developed without having its own currency.
Source – zimlive
