News / National
Zinara gets thumbs-up
05 Nov 2024 at 08:23hrs | Views
The Zimbabwe National Roads Administration (Zinara) has received parliamentary approval after effectively addressing concerns raised in the latest report by Auditor-General Rheah Kujinga regarding its financial management practices. The Auditor-General's report had flagged significant issues, including non-compliance with International Accounting Standard 21 (IAS 21) and substantial financial losses that rendered Zinara technically insolvent.
The Public Accounts Committee (PAC) acknowledged Zinara's plans to convert existing tollgates into more efficient plazas, which are expected to enhance revenue collection and provide greater convenience for motorists. The committee urged Zinara to progressively implement this plan, aiming to complete the conversion of at least two tollgates by December 2025.
In its report, PAC stated, "The non-compliance with IAS 21 was brought about by Zinara's need to adhere to Statutory Instrument 133/2019, which enforced a fixed exchange rate of 1:1, in contrast to the market-determined rates prescribed by IAS 21." This discrepancy contributed to the financial difficulties faced by Zinara, leading to its inability to meet financial obligations.
Additionally, the committee noted that Zinara and its subsidiary, Infralink, failed to seek national project status, which would have entitled them to tax exemptions. As a result, they incurred a tax obligation of ZWL$456 million to the Zimbabwe Revenue Authority (ZIMRA). PAC has called on both Zinara and Infralink to pursue this status and apply for tax exemption by December 31, 2024.
The report further emphasized the need for Zinara's board to ensure compliance with sound corporate governance principles in its management practices. "Zinara's plan to convert tollgates to plazas is a noble initiative that not only enhances the aesthetic appeal of tollgates but also facilitates increased revenue collection while improving convenience for the motoring public," PAC stated.
The PAC report reflects the committee's thorough examination of the Auditor-General's findings and the evidence provided by Zinara officials. It concluded by urging that the recommendations be implemented within the specified timelines, asserting that adherence to these measures is crucial for public officials in fulfilling their accountability to the citizens regarding the management of public resources.
By acting on these recommendations, Zinara aims to restore its financial health and enhance its service delivery to the public, thereby contributing to the welfare of Zimbabweans.
The Public Accounts Committee (PAC) acknowledged Zinara's plans to convert existing tollgates into more efficient plazas, which are expected to enhance revenue collection and provide greater convenience for motorists. The committee urged Zinara to progressively implement this plan, aiming to complete the conversion of at least two tollgates by December 2025.
In its report, PAC stated, "The non-compliance with IAS 21 was brought about by Zinara's need to adhere to Statutory Instrument 133/2019, which enforced a fixed exchange rate of 1:1, in contrast to the market-determined rates prescribed by IAS 21." This discrepancy contributed to the financial difficulties faced by Zinara, leading to its inability to meet financial obligations.
Additionally, the committee noted that Zinara and its subsidiary, Infralink, failed to seek national project status, which would have entitled them to tax exemptions. As a result, they incurred a tax obligation of ZWL$456 million to the Zimbabwe Revenue Authority (ZIMRA). PAC has called on both Zinara and Infralink to pursue this status and apply for tax exemption by December 31, 2024.
The report further emphasized the need for Zinara's board to ensure compliance with sound corporate governance principles in its management practices. "Zinara's plan to convert tollgates to plazas is a noble initiative that not only enhances the aesthetic appeal of tollgates but also facilitates increased revenue collection while improving convenience for the motoring public," PAC stated.
The PAC report reflects the committee's thorough examination of the Auditor-General's findings and the evidence provided by Zinara officials. It concluded by urging that the recommendations be implemented within the specified timelines, asserting that adherence to these measures is crucial for public officials in fulfilling their accountability to the citizens regarding the management of public resources.
By acting on these recommendations, Zinara aims to restore its financial health and enhance its service delivery to the public, thereby contributing to the welfare of Zimbabweans.
Source - newsday
