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Massive scam hits Mines ministry
03 May 2015 at 09:38hrs | Views
OVER $1 million is reported to have been stolen by officials in the Mines and Mining Development Ministry who took advantage of lax accounting systems as 27 official receipt books cannot be accounted for.
The comptroller auditor-general Midred Chisi in her latest 2013 audit report said several fraudulent activities were uncovered during the balancing of the ministry's books that had been submitted for audit. In one incident a receipting officer in the ministry destroyed several receipt books and understated receipts and deposits with the banks.
"In the same office, the ministry lost 27 official receipt books that could not be produced for audit examination. It is estimated that, based on the average revenue collections, the Ministry could have lost approximately an amount of US $853 428 misappropriated by the same officer.
"Due to weaknesses in the internal control system for collection and recording of revenue receipts, the ministry lost an amount of at least US$128 795 through fraudulent activities at Bulawayo Regional Mining engineer's office," reads part of the audit.
The reports states that the ministry's development fund was defrauded over US$50 000 within a period of seven months in 2011.
"The fund was defrauded of U$51 400 by former staff members through fraudulent transactions made with Printflow private limited between January 2011 and July 2011. In most instances, false receipts from Printflow private limited were attached to the payment vouchers but without goods being received," she said in the report.
Chisi discovered that officials in the ministry had fictitious claims for repair of motor vehicles, false purchases of stationary and consumer consumables while goods purported to have been ordered were never delivered.
The 2012 report also said Ministry officials procedurally authorised travel and subsistence allowances amounting to US$320 000 from the Mining Development Fund for senior employees.
The audit also revealed that officials were being paid cellphone allowances in excess of their prescribed limits set by Treasury through Circular Number 1 of 2010.
"The practice continued unabated in the year under review and the total excess payments were US$3 633 for the months of December 2010 up to November 2011 resulting in a cumulative excess payment of US$17 771. There was no evidence availed to audit that excess payments were recovered from the respective officials in the year 2011."
The comptroller auditor-general Midred Chisi in her latest 2013 audit report said several fraudulent activities were uncovered during the balancing of the ministry's books that had been submitted for audit. In one incident a receipting officer in the ministry destroyed several receipt books and understated receipts and deposits with the banks.
"In the same office, the ministry lost 27 official receipt books that could not be produced for audit examination. It is estimated that, based on the average revenue collections, the Ministry could have lost approximately an amount of US $853 428 misappropriated by the same officer.
"Due to weaknesses in the internal control system for collection and recording of revenue receipts, the ministry lost an amount of at least US$128 795 through fraudulent activities at Bulawayo Regional Mining engineer's office," reads part of the audit.
The reports states that the ministry's development fund was defrauded over US$50 000 within a period of seven months in 2011.
"The fund was defrauded of U$51 400 by former staff members through fraudulent transactions made with Printflow private limited between January 2011 and July 2011. In most instances, false receipts from Printflow private limited were attached to the payment vouchers but without goods being received," she said in the report.
Chisi discovered that officials in the ministry had fictitious claims for repair of motor vehicles, false purchases of stationary and consumer consumables while goods purported to have been ordered were never delivered.
The 2012 report also said Ministry officials procedurally authorised travel and subsistence allowances amounting to US$320 000 from the Mining Development Fund for senior employees.
The audit also revealed that officials were being paid cellphone allowances in excess of their prescribed limits set by Treasury through Circular Number 1 of 2010.
"The practice continued unabated in the year under review and the total excess payments were US$3 633 for the months of December 2010 up to November 2011 resulting in a cumulative excess payment of US$17 771. There was no evidence availed to audit that excess payments were recovered from the respective officials in the year 2011."
Source - Byo24News
