News / National
ZUPCO loses $800,000 to traffic fines
27 Jun 2016 at 06:56hrs | Views
The Zimbabwe United Passenger Company (zupco) in 2014 lost over $800 000 in traffic fine expenses alone after operating some of its buses without the necessary travelling documents, Auditor-General Ms Mildred Chiri has revealed.
Ms Chiri exposed this in the 2015 Auditor-General's annual report, stating that weak corporate governance structures were rampant within state enterprises.
The report ending December 2015, also exposed a number of grey areas in the parastatal with new evidence showing that zupco has several properties not registered in its name.
"There was a sharp increase in traffic fines in all of the company's divisions as compared to the prior year," she said.
"The company's buses were fined for operating without spare tyres, route permits, certificates of fitness and insurance cover.
"Passenger safety may be compromised while financial loss can be endured as a result of traffic fines, breakdowns and uninsured vehicles being involved in accidents."
The report said in total zupco lost $806 118 to traffic offences in the year 2014 and the state enterprise continue to lose revenue due to poor management.
In response to the report, zupco management said all buses unfit for the road would not be dispatched for duties.
Ms Chiri exposed this in the 2015 Auditor-General's annual report, stating that weak corporate governance structures were rampant within state enterprises.
The report ending December 2015, also exposed a number of grey areas in the parastatal with new evidence showing that zupco has several properties not registered in its name.
"There was a sharp increase in traffic fines in all of the company's divisions as compared to the prior year," she said.
"Passenger safety may be compromised while financial loss can be endured as a result of traffic fines, breakdowns and uninsured vehicles being involved in accidents."
The report said in total zupco lost $806 118 to traffic offences in the year 2014 and the state enterprise continue to lose revenue due to poor management.
In response to the report, zupco management said all buses unfit for the road would not be dispatched for duties.
Source - the herald
