Zanu-PF officials in $32,5 million scandal

Government might fail to recover US$32,5 million in loans extended to four ailing parastatals after the Ministry of Transport, Communications and Infrastructure Development authorised the transactions without supporting documents.

It has been established that the ministry has been operating without a loans guarantee register.

Such loans should only be disbursed after the parties involved sign agreements, and it will now be difficult for the authorities to claim the money in the absence of records.

The funds were released in 2012 under the watch of former Cabinet minister Nicholas Goche who headed the Transport Ministry until December 2014.

According to the Comptroller and Auditor-General's 2013 Report, the loans went to the National Railways of Zimbabwe (US$5,5 million); Air Zimbabwe (US$11 499 781); TelOne (US$4 million) and Civil Aviation Authority of Zimbabwe (US$10,5 million).

AirZim also received an additional US$19,8 million via the Vehicle Security Registration Number Plate Revolving Fund (2012).

This particular loan contravened the Fund's constitution and had no memorandum of agreement specifying lending terms and conditions.

In addition, the ministry borrowed US$628 216 from the same Fund, again flagrantly violating its constitution which provides that income should be channelled towards producing and distributing vehicle registration number plates. A section of the report reads: "The extent of contingent liabilities guaranteed by Government for loans advanced to parastatals under the ministry could not be established because the ministry failed to avail loan guarantee documents/agreements.

"A loan guarantee register was not maintained throughout the year."

The audit also established that the ministry paid the Central Mechanical Equipment Department (CMED) for hiring vehicles on behalf of officials who attended the 2012 United Nations World Tourism Organisation General Assembly in Victoria Falls and Livingstone. There were no supporting invoices for these transactions.

It also emerged that the ministry paid US$336 582 during the African Ministerial Conference for Meteorology and there were no vouchers to prove the payment.

The audit report states that: "The ministry circumvented the budgetary process when appropriation expenditure for fuel coupons valued at US$927 348 were financed from (the) Traffic and Legislation Fund without the required Treasury authority.

"The Meteorological Services Department procured Automatic Weather Observation System at a cost of US$439 718 and paid for it on October 22, 2013. At the time of audit on May 22, 2014, there was no evidence to show that the equipment was received as per the contract. The equipment was supposed to be delivered within a period of four months after payment. No explanation was given regarding the non-delivery of the equipment."

It continues: "The ministry also failed to maintain an advances payment register as per requirements of Treasury instructions 1208 which states that payments for goods not yet received shall be recorded in a register and entries should be cleared when the goods are received.

"The absence of an advance payment register may affect the effective follow-up action, resulting in further delays in the delivery of the equipment."

Further, the Met Department is said to have paid for a US$100 000 hydrogen generator in 2011, but failed to produce the gadget when asked to do so.

This raised suspicion that the generator could have been stolen or not delivered at all.

Management claimed that all transactions were above board and some invoices were in place.