HARARE – Government’s non-monetary incentive residential stands scheme has hit a snag after the122 000 signed up civil servants threatened to pull out following revelations that they will have to pay for the servicing of their stands.
Initially, it had been thought that the initiative which is part of government’s non-monetary incentive to hedge civil servants against high sustenance costs will be handed to government workers at an intrinsic value of $5 per square metre.
However, addressing the Apex Council on Tuesday last week Udcorp general manager Bright Mudzvova revealed that civil servants will foot the costs of servicing the residential stands, prompting the underpaid government workers to query the sincerity of the Zanu PF led administration.
“The cost of servicing will come to $15 to $20 a square metre for a high density stand, $13 to $18 per square metre for a medium density stand and $12 to $16 per square metre for a low density stand,” Mudzvova said.
Udcorp, the government entity mandated to ensure provision of housing, added that high-density stands have an allotment of 300 square metres, 450 square metres for medium-density and 800 square metres for a low-density stand.
Thus a civil servant hoping to have a residential stand in a high density suburb will have to pay approximately $5400.
A civil servant who earns around $400 would also need nine years to finish paying for a high density stand and assume title deeds.
“I was already dreaming staying at my stand but I don’t know if that will turn into a reality,” Apex Council chairperson Cecilia Alexander said when the figures were revealed.
“How I wish we could have received this information before registering people because I know the people I represent, I know how much they are struggling with the little they have. Even as the chairperson I can’t afford. Can’t government subsidise? Honestly speaking looking at the figures most people will not be able to afford even a high density stand,” she said.
“We are a bit worried because people were filling the forms thinking this was an incentive and for many an incentive means it’s a bonus but this is a surprise.”
However permanent secretary in the ministry of Local Government, Public Works and National Housing George Mlilo said government will on behalf of workers approach municipalities and district councils to secure the land.
“We are not making money here it’s just full cost recovery without profit,” said Mlilo.
“The incentive part of it is that you don’t need to bother about the waiting list plus these stands are way below the market rate,” he added.
Mlilo added that unlike the pyramid schemes of old that had collapsed and only benefited a few political bigwigs after taking civil servants hard earned money, no civil servant will lose out in the current scheme.
However, the Apex Council — comprising all civil servant representative bodies – were still not convinced although they did go on to sign the MoU.
When Finance minister Patrick Chinamasa later walked into the meeting after tempers had subsided he said the scheme would also create jobs.
He said the programme which will attract many sectors in the nation including MPs , commissioners and retirees will have a ripple effect on the economy in downstream sectors such as brick-making, cement and tiling.-Dailynews
