Treasury to probe AG's findings

THE Minister of Finance and Economic Development, Patrick Chinamasa, has said plans are underway to set up a team of inquiry on the findings released by the Auditor-General's Office last month which was marred with massive irregularities and gross misappropriation of State funds by ministries and State enterprises.

In a report titled Appropriation Accounts and Miscellaneous Funds for the year ended 2014, Auditor-General's office audited 27 ministries and 13 ministries' accounts whose figures could not reconcile in figures in sub-paymaster general accounts and public finance management system.

Some ministries failed to submit their assets and property registers, with some failing to honour their tax and statutory obligations despite a provision in Section 49 of the Public Finance Management Act that requires all public entities to keep full records of their financial affairs for accountability and transparency purposes.

Treasury had its own share of shenanigans as the report exposed that $180 million in direct payment on behalf of ministries did not have receipts and invoices from service providers accounting for them.

Speaking at the signing ceremony for the Grant Protocol Agreement for Strengthening Institutions of Transparency and Accountability Project on Monday in Harare being funded by the African Development Bank (AFDB), Chinamasa said his office had received the report and was cognisant of some of the irregularities highlighted and were determined to resolve the issues raised.

"My office has received reports from the Auditor-General's office. We have gone through them and what has been on the back of my mind all this time has been what should we do about it so that this does not happen again in future? We will set up a unit within the Ministry of Finance and Economic Development to look into the matter," he said.

He said investment was scared of inefficient and opaque institutions with transparency, accountability and good corporate governance critical in the formation of a strong foundation to attract capital into the country.

Poor corporate governance proved rampant in parastatals, with hefty salaries accorded to executives, while they were operating at a loss. It also highlighted that some parastatals did not have boards to oversee the executives hence it was creating a weak and porous structural system.

The Grant Protocol Agreement for Strengthening Institutions of Transparency and Accountability project saw the AFDB granting $2.8 million towards governance and is part of the $108 million that AFDB has extended to the country targeting a number of projects including infrastructure rehabilitation, water and sanitation, social sector, private sector and governance.

"The main objectives of the grant are to strengthen the institutional capacity and oversight role of the Parliament, capacitate the Office of the Auditor General to improve transparency and accountability in the public sector and promote gender equality for inclusive and sustainable development.

"It will strengthen capacity of the Office of Auditor General to enhance its audit function. This will ensure that the activities of Public Institutions- integrity of financial statements, corporate governance structures, effectiveness of internal controls as well as compliance with relevant legislation and reporting standards are objectively evaluated," said Chinamasa.

He also said the reforms would positively impact on Zimbabwe's Country Policy and Institutional Assessment (CPIA) rating with the AFDB and World Bank having conducted a joint CPIA early this year.