Political Economy of Corruption and the Battle for Accountability in Zimbabwe 2000-2015 01 Acknowledgements The 2015 Annual State of Corruption Report: Political Economy of Corruption and the Battle for Political Economy of Corruption and the Battle for Accountability in Zimbabwe 2000-2015 Accountability in Zimbabwe 2000-2015 was made possible due to the support of the Swedish Embassy and the European Union. We also wish to thank our contributors Dr Mungai Lenneiye, Professor Lloyd Sachikonye, Dr. Sandra Bhatasara and Dr. Prosper Chitambara for their comprehensive input into this report. This Report would not have been possible without the support and assistance of the entire staff at the TI Zimbabwe 2015 secretariat. In addition we also thank Dr Ndlela, Dr Chiweshe, Dr Matyszak and Mfundo Mlilo for providing expert Annual State of Corruption review comments to the chapters and proposed policy recommendations. TI Z appreciates and acknowledges all the authors cited in this report. We are particularly grateful to David Mungoshi for his indispensable copy editing input and Sean Ukomba for the Book Design. Mutondoro. F, Ncube M.S, Chitambara.P, Sachikonye.L, Bhatasara.S Edited by Mungai N Lenneiye Published by Transparency International Zimbabwe ISBN 978-0-7974-7366-9 First published 2016 Copy editing by David Mungoshi Book Concept by Sean Ukomba Printed by PrintWorks Zimbabwe All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, without prior permission from the publishers 2015 Annual State of Corruption Political Economy of Corruption and the Battle for Accountability in Zimbabwe 2000-2015 01 Acknowledgements The 2015 Annual State of Corruption Report: Political Economy of Corruption and the Battle for Political Economy of Corruption and the Battle for Accountability in Zimbabwe 2000-2015 Accountability in Zimbabwe 2000-2015 was made possible due to the support of the Swedish Embassy and the European Union. We also wish to thank our contributors Dr Mungai Lenneiye, Professor Lloyd Sachikonye, Dr. Sandra Bhatasara and Dr. Prosper Chitambara for their comprehensive input into this report. This Report would not have been possible without the support and assistance of the entire staff at the TI Zimbabwe 2015 secretariat. In addition we also thank Dr Ndlela, Dr Chiweshe, Dr Matyszak and Mfundo Mlilo for providing expert Annual State of Corruption review comments to the chapters and proposed policy recommendations. TI Z appreciates and acknowledges all the authors cited in this report. We are particularly grateful to David Mungoshi for his indispensable copy editing input and Sean Ukomba for the Book Design. Mutondoro. F, Ncube M.S, Chitambara.P, Sachikonye.L, Bhatasara.S Edited by Mungai N Lenneiye Published by Transparency International Zimbabwe ISBN 978-0-7974-7366-9 First published 2016 Copy editing by David Mungoshi Book Concept by Sean Ukomba Printed by PrintWorks Zimbabwe All rights reserved. No part of this publication may be reproduced or transmitted, in any form or by any means, without prior permission from the publishers 2015 Annual State of Corruption Political Economy of Corruption and the Battle for Accountability in Zimbabwe 2000-2015 Political Economy of Corruption and the Battle for Accountability in Zimbabwe 2000-2015 03 Acronyms ADB African Development Bank AEI Automatic Exchange of Tax Information ASCR Annual State of Corruption Reports ASPEF Agricultural Sector Productivity Enhancement Facility AUCPCC African Union Convention on Preventing and Combating Corruption BACOSSI Basic Commodities Supply-Side Intervention Facility CAG Comptroller and Auditor General CHRA Combined Harare Residents Association Table of contents CPI Corruption Perception Index 02 CPIB Corrupt Practices Investigations Bureau DA District Administrator page DCEC Directorate of Corruption and Economic Crime 01 Acronyms EITI Extractive Industry Transparency Initiative 02 Foreword FDI Foreign Direct Investment 03 Executive Summary FPR Fidelity Printers and Reners 06 Chapter 1: An Overview GDP Gross Domestic Product GIS Geographical Information System 18 Chapter 2: Evidence on the Economic Costs of Corruption in Zimbabwe GNU Government of National Unity 36 Chapter 3: Corruption and the Political Landscape in Zimbabwe HDI Human Development Index 56 Chapter 4: Understanding Corruption in Social Service Delivery in HMWU Urban Planning Services and Harare Municipal Workers Union Zimbabwe ICAC Independent Commission Against Corruption 70 Bibliography IMF International Monetary Fund IPC Integrity Perception Index JOMIC Joint Monitoring and Implementation Committee MDC Movement for Democratic Change MSA Municipal Sales Agreement NCCG National Code on Corporate Governance of Zimbabwe NEDLAC National Economic Development and Labour Council NFA National Framework Agreement OECD Organization for Economic Cooperation and Development PDI Private Domestic Investment PLARP Parastatals and Local Authorities Reorientation Programme PPADB Public Procurement and Asset Disposal Board RBZ Reserve Bank of Zimbabwe RDCs Rural District Councils SADC Southern African Development Community TI Transparency International TI Z Transparency International Zimbabwe UN United Nations UNECA United Nations Economic Commission for Africa USD United States Dollars WB World Bank WDI World Bank's World Development Indicators WEF World Economic Forum ZAAC Zimbabwe Anti-Corruption Commission ZANU- PF Zimbabwe African National Union-Patriotic Front ZBC Zimbabwe Broadcasting Corporation ZEC Zimbabwe Electoral Commission ZIMRA Zimbabwe Revenue Authority 2015 Annual State of Corruption 2015 A nnual State of Corruption 1 Political Economy of Corruption and the Battle for Accountability in Zimbabwe 2000-2015 Political Economy of Corruption and the Battle for Accountability in Zimbabwe 2000-2015 03 Acronyms ADB African Development Bank AEI Automatic Exchange of Tax Information ASCR Annual State of Corruption Reports ASPEF Agricultural Sector Productivity Enhancement Facility AUCPCC African Union Convention on Preventing and Combating Corruption BACOSSI Basic Commodities Supply-Side Intervention Facility CAG Comptroller and Auditor General CHRA Combined Harare Residents Association Table of contents CPI Corruption Perception Index 02 CPIB Corrupt Practices Investigations Bureau DA District Administrator page DCEC Directorate of Corruption and Economic Crime 01 Acronyms EITI Extractive Industry Transparency Initiative 02 Foreword FDI Foreign Direct Investment 03 Executive Summary FPR Fidelity Printers and Reners 06 Chapter 1: An Overview GDP Gross Domestic Product GIS Geographical Information System 18 Chapter 2: Evidence on the Economic Costs of Corruption in Zimbabwe GNU Government of National Unity 36 Chapter 3: Corruption and the Political Landscape in Zimbabwe HDI Human Development Index 56 Chapter 4: Understanding Corruption in Social Service Delivery in HMWU Urban Planning Services and Harare Municipal Workers Union Zimbabwe ICAC Independent Commission Against Corruption 70 Bibliography IMF International Monetary Fund IPC Integrity Perception Index JOMIC Joint Monitoring and Implementation Committee MDC Movement for Democratic Change MSA Municipal Sales Agreement NCCG National Code on Corporate Governance of Zimbabwe NEDLAC National Economic Development and Labour Council NFA National Framework Agreement OECD Organization for Economic Cooperation and Development PDI Private Domestic Investment PLARP Parastatals and Local Authorities Reorientation Programme PPADB Public Procurement and Asset Disposal Board RBZ Reserve Bank of Zimbabwe RDCs Rural District Councils SADC Southern African Development Community TI Transparency International TI Z Transparency International Zimbabwe UN United Nations UNECA United Nations Economic Commission for Africa USD United States Dollars WB World Bank WDI World Bank's World Development Indicators WEF World Economic Forum ZAAC Zimbabwe Anti-Corruption Commission ZANU- PF Zimbabwe African National Union-Patriotic Front ZBC Zimbabwe Broadcasting Corporation ZEC Zimbabwe Electoral Commission ZIMRA Zimbabwe Revenue Authority 2015 Annual State of Corruption 2015 A nnual State of Corruption 1 Political Economy of Corruption and the Battle for Accountability in Zimbabwe 2000-2015 Political Economy of Corruption and the Battle for Accountability in Zimbabwe 2000-2015 “The real voyage of discovery does not consist in seeking new landscapes, but in having new eyes.” 04 Foreword Marcel Proust, A la Recherche du temps perdu 05 Executive Summary Present day Zimbabwe remains trapped in a development impasse which judging by this Report by Transparency International Zimbabwe and other research publications is highly attributable to the growing The 2015 Zimbabwe Annual State of Corruption Report (ASCR) set out to understand “the cost of problem of corruption than any other variable. Clearly corruption in Zimbabwe is a topical developmental, corruption on the economy, politics and social service delivery in Zimbabwe 2000-2015”. The underlying political and economic governance issue because of its interrelatedness and inter-linkages with key challenges approach assumes that a presentation of empirical evidence on corruption can lead to increased that the country continues to face. The challenges that include unemployment, poverty, poor social service awareness of its dimensions, and that would, in turn, lead to change of behaviour by individuals – to delivery, capital flight, de-industrialization and low investment