SYDNEY MUBAIWA
HARARE–The Treasury has ordered the immediate cessation of all financial and operational activities under the Better Schools Programme Zimbabwe (BSPZ), pending its transformation into a statutory fund in line with the Public Finance Management Act [Chapter 22:19].
In a directive dated October 6, 2025, the Permanent Secretary in the Ministry of Finance, Economic Development and Investment Promotion instructed the Ministry of Primary and Secondary Education to stop BSPZ operations “in their current form” and begin amending the Education Act to formally establish the programme as a statutory fund.
The Treasury move follows concerns raised by the Parliamentary Portfolio Committee on Primary and Secondary Education over BSPZ’s lack of transparency and accountability since 2022.
According to the communication, BSPZ has been operating without a formal legal framework for over two decades, despite managing substantial funds through school levies and development projects.
“Treasury observed that BSPZ has been functioning without a formal legal framework since the expiry of the bilateral agreement… It is therefore imperative to put in place the necessary legislation defining the framework for levies and charges intended to finance the fund,” reads part of the letter signed by the Secretary for Finance.
In compliance with the directive, Permanent Secretary for Primary and Secondary Education, Moses Mhike, has instructed all Provincial Education Directors (PEDs) and District Schools Inspectors (DSIs) to cease all BSPZ-related financial and operational activities at provincial, district and cluster levels.
“Secure and account for all BSPZ funds, assets and records; suspend all expenditures and commitments under BSPZ with immediate effect and all balances in BSPZ accounts until further written guidance is issued,” reads the statement.
The Ministry also advised that while inflows such as levies may continue to be received, no withdrawals or utilisation of funds are permitted during the transition.
Mhike said the Ministry was engaging Treasury to ensure a smooth and well-managed transition.
“Your cooperation in ensuring full compliance with this directive is appreciated as we collectively work towards strengthening governance, accountability and sustainability in the management of education support funds,” he said in a circular to all provincial heads.
Meanwhile, Treasury directed that all funds currently being collected under BSPZ should be channeled to the Consolidated Revenue Fund until the statutory fund is formally established.
The planned legislative reform is expected to harmonize financial management and reporting standards across all provinces, aligning BSPZ operations with international best practices in public finance management.
One of the School Development Committee (SDC) chairpersons, who requested anonymity, welcomed the move as a step towards accountability, saying the decision was long overdue.
“For years, there have been concerns over how BSPZ funds were managed at various levels. Bringing them under a statutory framework will enhance transparency and ensure that every dollar benefits the learners. We are happy that we can now utilise every dollar for school development instead of sending it to the district and provincial offices,” he said.
As consultations continue between the Ministry and Treasury, schools across the country have been advised to submit detailed reports of BSPZ financial positions and assets by October 21, 2025.
The BSPZ was launched in the 1990s to support infrastructure development, teacher training and resource mobilisation in schools.
However, in recent years, the programme has come under scrutiny for operating outside a clear legal framework, with Parliament calling for reforms to enhance accountability and proper utilisation of education funds.
The development comes at a time after there is gross abuse of public funds by PEDs ,DSIs and other senior officials within the ministry.
Masvingo Provincial Education Director, Shylatte Mhike was summoned to a disciplinary hearing by the Public Service Commission (PSC) following her trial for corruption at Masvingo Magistrates Court.
Also summoned to the hearing is the Ministry of Education’s Provincial Financial Director Liniah Chinoda.
At the courts Mhike and Chinoda are accused of corruption and criminal abuse of duty.
