Latest News Editor's Choice


News / National

ZETDC exposed on transformer purchases

by Staff reporter
29 Jun 2019 at 16:42hrs | Views
THE Zimbabwe Electricity and Distribution Company, a subsidiary of the Zimbabwe Electricity Supply Authority, has not taken delivery of transformers it paid US$4,9 million for nine years ago, the Auditor General, Mrs Mildred Chiri, said yesterday.

Presenting her annual report for State Enterprises and Parastatals, Mrs Chiri said public resources were being wasted by organisations that were not carrying out due diligence in procurement of goods and services, resulting in a wastage of public funds.

"Lack of due diligence when procuring goods and services resulted in cases of some payments being made without subsequent delivery," she said.

"Notable cases included ZETDC which has not taken delivery of transformers nine years after making a payment of US$4,9 million to Pito Investments.

"The same contractor was also paid in advance an amount of US$561 935 by the Zimbabwe Power Company in 2016 and has not delivered. In addition, ZPC also paid R196 064 in 2016 to York International for gas that has not been received."  

Mrs Chiri said the GMB had in 2016 also made advance payments of $1 014 163 for grain that has not been delivered. Other entities that were cited include the Zimbabwe Schools Examination Council which outsourced printing of the June and November 2017 examinations at a cost of US$2 170 113, yet it had acquired a printing press in 2016.

On Air Zimbabwe, Mrs Chiri said it could not provide documentation for operating expenses of $13 705 014 and petty cash expenditure of $654 587.

"The airline also had an unexplained balance of $27 965 576," she said.  

"The company has not accounted for all aircrafts. There were unsupported payable balances of at least $26 million and unexplained variances of $87 million from amount confirmed by suppliers.

"No minutes of board and management meetings were available for the period under review. Cash withdrawals amounting to $173 162 could not be traced to the book of accounts."  

Mrs Chiri admitted that some of the discrepancies noted could have criminal intentions.

"Off hand I can't really tell how many they are, but there are quite a number which could be criminally aligned. What we do after each audit; we do what we call an exit meeting with the clients or auditees. If it's a ministry, we will be having the permanent secretary on board and we will be going through each and every finding that we have so that they can take action," she said.

Mrs Chiri said lack of enforcement of procedures was also to blame for the lack of good corporate governance in State Enterprises and Parastatals.

"It's very difficult to tell what the reasons are (for failure to adhere to laid down procedures) because in some cases they could be having all the tools of trade at their disposal, so it's an issue we pass on to the ministry, but we think by and large it's a lack of enforcement and necessary controls," she said.  

Mrs Chiri said the report would be shared with the Zimbabwe Anti-  Corruption Commission so that they can pursue areas where corruption could be involved.

Source - chronicle

Subscribe

Email: