Harare – Zimbabwean parastatals and ministries are bleeding scarce financial resources through inadequate budgetary controls, gaping loopholes for misappropriation of funds and failure to properly follow procurement procedures.
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This was tabled before Parliament on Wednesday by the country’s Auditor General (AG) Mildred Chiri.
The country is battling to raise funds for its budget of about $4bn as companies close shop, expansions halt and investments wilt.
However, it has emerged that state parastatals and ministries are bleeding the country’s coffers amid reports of corruption in the awarding of tenders and contracts.
Chiri said in her report for the year to December 31 2015 that “some ministries did not exercise adequate budgetary control on fund accounts”.
This resulted in “eight fund accounts incurring excess expenditure over income or expenditure exceeding budgeted income by a total amount of $10.2m”.
The AG’s report also says the ICT ministry bought ICT Minister Supa Mandiwanzira and his deputy vehicles worth $195 000 and $95 000 respectively, using loans from telecommunications regulatory authority Potraz without approval from the finance ministry.
The report adds that the ICT ministry received an additional $10m loan from Potraz for the purchase by the government of a stake in Telecel Zimbabwe, after VimpelCom announced it was leaving Zimbabwe.
VimpelCom said in recent months that the acquisition of the shares it disposed of in Zimbabwe has not yet been completed, with sources saying transfer of the funds has not yet been processed.
“The ministry got loans amounting to $10m, $194 564 and $95 000 from Potraz for the acquisition of government’s shareholding in Telecel Zimbabwe and purchasing of the minister and deputy minister’s vehicles respectively, without treasury concurrence.
“These amounts were still outstanding as at the time the audit was completed,” Chiri said in her audit report.
This, she said, creates the risk of unplanned debt if loans are not authorised by treasury while also creating loopholes for the ministry to fail to account for relevant expenditure.
The AG’s report added that “due to a lack of efficient accounting systems and inadequate effort, at least thirty ministries and departments failed to collect amounts due from clients and employees totalling $48.8m”.
She said these amounts have remained uncollected for periods ranging from one to six years.
“I am concerned that some of the amounts may not be collected. If these amounts are collected, they could go a long way in funding other government activities.”-Fin24
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