AG exposes massive financial mismanagement

A damning report by Acting Auditor-General Rhea Kujinga, tabled in Parliament this week, has uncovered widespread financial mismanagement, weak internal controls, and systemic accounting failures across government ministries, departments and agencies (MDAs) during the 2024 financial year.

The audit, which examined appropriation accounts, finance and revenue statements, and fund accounts, paints a troubling picture of how the government's transition from the Zimbabwe dollar (ZWL) to the new Zimbabwe Gold (ZiG) currency in April 2024 created chaos in public sector financial reporting.

Kujinga revealed that all MDAs were required to prepare full-year financial statements in ZiG, necessitating the translation of earlier ZWL transactions. However, Treasury's guidance on currency translation was inconsistently applied, forcing nearly all MDAs to withdraw and revise their financial statements - some up to four times during the audit process.

"The government of Zimbabwe changed currency from ZWL to Zimbabwe Gold (ZiG) effective April 6, 2024. The reporting currency for the 2024 financial statements was the ZiG," the report stated.

"Nearly all MDAs withdrew and resubmitted financial statements during audit. Some withdrew and resubmitted more than four times."

Despite receiving a combined allocation of ZiG55.7 billion, the 32 audited MDAs utilised only ZiG43.9 billion - just 79% of their budget. Kujinga attributed this underutilisation to poor cash disbursements from Treasury, which hampered service delivery and delayed progress on critical programmes.

Ironically, the report notes that some MDAs received additional funding from the unallocated reserve — despite failing to exhaust their initial budgets. Transfers from the reserve ballooned to ZiG14.5 billion, surpassing the approved ZiG9.5 billion by a staggering ZiG5 billion.

The audit also exposed significant irregularities in how MDAs recorded direct payments made by Treasury on their behalf. Of the US$1.99 billion disbursed in 2024, only US$1.39 billion was properly captured in official records - leaving a glaring US$597 million unaccounted for.

Kujinga flagged the escalation of arrears across 39 MDAs as another red flag, with outstanding debts totaling ZiG14.7 billion, US$61 million, ZAR733 000, and €214 709 - some dating back to 2021. She warned that such arrears threaten future budgets and damage the government's fiscal credibility.

"Rising arrears are eroding future budgets and damaging government credibility," the report said.

Additionally, the report criticised MDAs for failing to clear "open items" - unexplained accounting entries that distort expenditure figures and obstruct proper budget tracking. Treasury had issued Circular No. 1 of 2025 mandating the clearance of such items, but many MDAs failed to comply, citing technical challenges and lack of support.

The revelations have sparked renewed calls for public finance reform, transparency, and stronger oversight of government expenditure. Parliament is expected to summon key ministries to explain the discrepancies and outline corrective measures.ective measures.