by Mirinda Tom
Government has approved a proposal by the Ministry of Finance and Economic Development, to establish a loan facility, called the Government Employees Mutual Savings Fund (GEMS). The initiative will allow employees to access low-interest loans as Government moves to protect its employees from loan sharks and other high interest rate loan facilities.
Government has already injected ZW$100 million as seed capital towards the initiative with Civil Servants expected to make monthly contributions toward the facility.
Addressing the Post Cabinet Briefing, the Minister of Information, Publicity and Broadcasting, Monica Mutsvangwa stated that, “Following presentation by the Minister of Finance and Economic Development, Prof Ncube of the proposed Civil Service Mutual Savings Fund, Cabinet resolved that the Government Employees Mutual Savings Fund (GEMS Fund) be established with effect from March 2020.
“Cabinet has also resolved that Government will immediately provide a lump sum injection of ZW$100 million from the budget to facilitate the expedited establishment of the Fund.” Minister Mutsvangwa said.
Minister Mutsvangwa further added that, a steering committee would be set up to decide on the implementation modalities of the Fund.
“Cabinet also resolved that a 2.5% of the total remuneration be deducted from every Government employee in consultation with the Public Service Commission and that a Steering Committee comprising the Public Service Commission, Finance Ministry and the Office of the President and Cabinet be established to decide on the implementation modalities of the Fund.” She added.
In his presentation, Prof Ncube expressed that those who are not interested in the facility can opt out and be reimbursed their contributions with interest.
“If you do not borrow, whatever you contribute is yours, it is like a savings and it can be paid out to you. Even when you decide that you no longer want to be part of the facility you can opt out and you will be reimbursed your money with interest.”
The GEMS Fund comes at a time that civil servants have become the most indebted workers in the country and have fallen prey to loan sharks and unscrupulous businesses, who thrive on exploiting Government employees.
