Business / Companies
Auditor General's report exposes grey areas within state enterprises
23 Jun 2016 at 18:43hrs | Views
Auditor General Mildred Chiri
The 2015 annual report by the Auditor General has revealed that local authorities continue to run multiple bank accounts while weak corporate governance structures are rampant within state enterprises.
The Auditor General's reporting ending December 2015 has exposed a number of grey areas within state enterprises which has also affected debt recovery measures as most of the entities are owed millions of dollars.
Most state institutions such as Zimbabwe National Road Administration (ZINARA), Zimbabwe Revenue Authority (ZIMRA) and TelOne continue to extend loans to workers despite some having outstanding loans of over US$30 000.
Management at organisations such as Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) have awarded themselves fuel allowances, holiday allowances and fuel for home generators without the approval of the board.
Briefing the media in the capital, Auditor General Mildred Chiri says local authorities are running multiple bank accounts which are subjected to abuse.
Failure to comply with procurement regulations is some of the deficiencies that have been cited in the report with most ministries losing money owing to weak internal controls.
The report also notes that ministries and departments failed to collect revenue amounting to US$48.8 million with the bulk of the money running into six years without being collected.
The Auditor General's reporting ending December 2015 has exposed a number of grey areas within state enterprises which has also affected debt recovery measures as most of the entities are owed millions of dollars.
Most state institutions such as Zimbabwe National Road Administration (ZINARA), Zimbabwe Revenue Authority (ZIMRA) and TelOne continue to extend loans to workers despite some having outstanding loans of over US$30 000.
Briefing the media in the capital, Auditor General Mildred Chiri says local authorities are running multiple bank accounts which are subjected to abuse.
Failure to comply with procurement regulations is some of the deficiencies that have been cited in the report with most ministries losing money owing to weak internal controls.
The report also notes that ministries and departments failed to collect revenue amounting to US$48.8 million with the bulk of the money running into six years without being collected.
Source - zbc
