Business / Companies
Govt to pay $230K for ZBC audit
04 May 2014 at 08:22hrs | Views
Government will pay close to $230 000 to external auditors sifting through the morass that has become national broadcaster, ZBC Holdings.
In a letter to the managing partner at KPMG Chartered Accountants, a copy of which is in The Zimbabwe Mail possession, Auditor-General Mildred Chiri confirmed that the company had won the tender to audit the public broadcaster.
"Reference is made to tender number OAG2/2013 provision of comprehensive and forensic audit services to the Zimbabwe Broadcasting Services. I have pleasure to advise you that your tender with respect to the above has been successful at a sum of $228 606, including VAT (Value Added Tax) and disbursements," Chiri wrote on February 20 this year.
Chiri yesterday justified the figure, adding by the end of the audit it could actually be more.
"It was a public tender and more than 10 companies applied although I am not at liberty to disclose the amount. Generally, forensic audits are expensive because they might include the auditor appearing in court," Chiri told The Zimbabwe Mail. "We are expecting that when everything is done, the figure will be more than was initially charged and that is a practice that is accepted globally."
Media Information and Broadcasting Services permanent secretary George Charamba could neither deny nor confirm the figures.
"As a ministry, we will pay the auditors because we requested for the process. The Auditor-General looked at their capacity and manpower and realised that they came short and that is why they subcontracted," Charamba said. "We would have paid the amount, which I am not sure off the top of my head, to the Auditor-General."
He said the tender was handled by the Auditor General's office.
"They (Auditor-General) handled and floated the tender and you must also understand that we did not request for a forensic audit only. We are also going to get a strategic plan for ZBC. If you call the Auditor-General, they should be able to give you the figures and documents relating to that tender because it is public information," Charamba said.
The state broadcaster has been in the eye of a storm since the end of last year when it was revealed that workers at ZBC had gone for seven months without pay, while top executives earned tens of thousands of dollars in salary and perks.
Government moved in and suspended chief executive officer Happison Muchechetere who was reportedly earning $44 000 monthly in salary and perks.
Muchechetere also stood accused of abuse of office and fraud in relation to the purchase of a Radio Outside Broadcast Van (OB) from China that allegedly cost the taxpayer $1 million when it could have been bought for "less than $100 000".
He is currently on bail over the OB van case.
Information, Media and Broadcasting Services Minister Professor Jonathan Moyo sent Muchechetere on forced leave, first with pay and then without salary as the furore over parastatal bosses' salaries left citizens in awe.
Then ZBC board chairperson, Cuthbert Dube, who also served as chief executive officer of the Premier Services Medical Aid Society where he drew a reported $535 000 monthly salary, was also booted out to pave way for the forensic audit.
According to government figures, Muchechetere's package included $3 000 entertainment allowance, a $2 500 allowance to pay his domestic workers, $3 500 housing allowance and $3 000 as a general allowance. He also received unlimited access to fuel every month, five business class air tickets for him and his family to any international destination of his choice, three regional tickets and unlimited local air tickets every year.
In a letter to the managing partner at KPMG Chartered Accountants, a copy of which is in The Zimbabwe Mail possession, Auditor-General Mildred Chiri confirmed that the company had won the tender to audit the public broadcaster.
"Reference is made to tender number OAG2/2013 provision of comprehensive and forensic audit services to the Zimbabwe Broadcasting Services. I have pleasure to advise you that your tender with respect to the above has been successful at a sum of $228 606, including VAT (Value Added Tax) and disbursements," Chiri wrote on February 20 this year.
Chiri yesterday justified the figure, adding by the end of the audit it could actually be more.
"It was a public tender and more than 10 companies applied although I am not at liberty to disclose the amount. Generally, forensic audits are expensive because they might include the auditor appearing in court," Chiri told The Zimbabwe Mail. "We are expecting that when everything is done, the figure will be more than was initially charged and that is a practice that is accepted globally."
Media Information and Broadcasting Services permanent secretary George Charamba could neither deny nor confirm the figures.
"As a ministry, we will pay the auditors because we requested for the process. The Auditor-General looked at their capacity and manpower and realised that they came short and that is why they subcontracted," Charamba said. "We would have paid the amount, which I am not sure off the top of my head, to the Auditor-General."
He said the tender was handled by the Auditor General's office.
The state broadcaster has been in the eye of a storm since the end of last year when it was revealed that workers at ZBC had gone for seven months without pay, while top executives earned tens of thousands of dollars in salary and perks.
Government moved in and suspended chief executive officer Happison Muchechetere who was reportedly earning $44 000 monthly in salary and perks.
Muchechetere also stood accused of abuse of office and fraud in relation to the purchase of a Radio Outside Broadcast Van (OB) from China that allegedly cost the taxpayer $1 million when it could have been bought for "less than $100 000".
He is currently on bail over the OB van case.
Information, Media and Broadcasting Services Minister Professor Jonathan Moyo sent Muchechetere on forced leave, first with pay and then without salary as the furore over parastatal bosses' salaries left citizens in awe.
Then ZBC board chairperson, Cuthbert Dube, who also served as chief executive officer of the Premier Services Medical Aid Society where he drew a reported $535 000 monthly salary, was also booted out to pave way for the forensic audit.
According to government figures, Muchechetere's package included $3 000 entertainment allowance, a $2 500 allowance to pay his domestic workers, $3 500 housing allowance and $3 000 as a general allowance. He also received unlimited access to fuel every month, five business class air tickets for him and his family to any international destination of his choice, three regional tickets and unlimited local air tickets every year.
Source - The Zimbabwe Mail