RBZ scam: AG's office ready to investigate

AUDITOR General Mrs Mildred Chiri has said her office was ready to help Government investigate financial leakages at the Reserve Bank of Zimbabwe (RBZ) if its services are required.

Ordinarily, the Auditor General's office does not audit the Central Bank but concentrates on public entities and State-owned enterprises.

The RBZ recently engaged auditors to investigate the activities of four senior executives who were suspended over allegations of corruption and illegal foreign currency dealings.

Speaking at the 4th Internal Control Congress for Africa attended by accountants, auditors and internal control specialists in Victoria Falls, Mrs Chiri called for strengthening of internal control systems.

"As for the RBZ, authorities are dealing with those issues. Government and law enforcement agencies such as the anti-corruption are best placed to deal with that as ours is to audit and point out symptoms of such things.

"So, when our reports come out, the law will use them for investigations but for now should they need our assistance we are available, we are at service to the nation," said Mrs Chiri.

She said internal control systems were important in financial management as they enhanced transparency. Internal control is there to ensure compliance with applicable laws and regulations and also with internal policies and keeping records so as to detect and prevent fraud and corruption among other vices.

It facilitates effective operation by enabling it to respond in an appropriate manner to significant business, operational, financial, compliance and other risks.

This includes safeguarding of assets and ensuring that liabilities are identified and managed in terms of the Public Finance Management Act, which talks of internal control responsibilities of people and Government in safeguarding assets.

Mrs Chiri said if enforced, the Act, together with the Public Entities Corporate Governance Act, which addresses loopholes in corporate governance, will go a long way in addressing defects in internal control systems for the public entities and state owned enterprises.

She said internal control was positive in terms of encouraging good corporate governance and preventing corruption as it also looks at issues of boards for public entities. Internal control is in five categories namely, accounting, administration, prevention, detection and correction.