THE Zimbabwe Revenue Authority (Zimra) says it had to call off its hefty claim against former boss, Gershem Pasi after the cost of pursuing the case overran the funds that it was demanding from the former commissioner-general.
This newspaper reported two weeks ago that Zimra had withdrawn a legal tussle with Pasi in which it wanted him to return an amount that was valued at US$217 000 at the onset of the dispute in 2018, but had been restated to ZW$217 000, following Statutory Instrument (SI) 133 of 2019.
Pasi quit his role midway through a disciplinary hearing in 2017, after being slapped with 45 charges of misconduct.
But the tax collector was unrelenting, demanding US$217 624 from him, after raising abuse of office and fraud charges.
“This means that the cost benefit for the authority with respect to the legal fees in the suit, would have far outweighed the money to be recovered,” Zimra said in a statement to the Zimbabwe Independent.
“Mindful of the legal costs against the value of the ZW$217 624, the Zimra board has a responsibility to safeguard the public funds it is mandated with and to stop any further financial loss and cost to the authority through the withdrawal of the case.”
When the dispute spilled into the courts, the top taxman argued that Zimra had only raised issues against him after the permissible period had lapsed.
In its withdrawal statement seen by this publication, Zimra said it has withdrawn its summons.
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The judgement is dated June 22, under case number HC 2640/18.
“Be pleased to take notice that the applicant hereby withdrawals its summons and wasted costs,” the judgment read.
Zimra had filed the claim three years after the permissible period had lapsed, accusing its former boss of “unjust enrichment” and poor administration that financially prejudiced the authority.
It said the contraventions took place between March 2010 and February 2015.
The taxman claimed that during his tenure, Pasi had unjustly enriched himself with US$12 445 through fraud and abuse of office in violation of his contract of employment.
Zimra was claiming US$205 178, excluding interest and costs, as damages for financial prejudice under Pasi’s leadership.
Pasi was also facing allegations of signing a US$14 million contract with a company a Chinese conglomerate called AVIC International for the supply of uniforms and tollgate equipment without following tender procedures.
He also stood accused of failure to investigate the alleged fraudulent importation of vehicles by Zimra executives, authorising his daughter to use the authority’s vehicle and approving salary increments without board approval.
Pasi also faced allegations of allocating himself excessive vehicle allowances to the extent of getting US$374 451 between 2014 and May 2016.
He was also accused of allocating himself excessive holiday allowances and withdrawing US$205 000 from the authority between 2014 and May 2016.
