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Zimbabwe govt risks losing millions in undelivered goods
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The Zimbabwean government faces the risk of losing millions of dollars after revelations that several ministries, departments, and agencies (MDAs) have yet to receive vehicles and other assets paid for as far back as 2021, according to the latest Auditor-General's report.
Acting Auditor-General Rheah Kujinga disclosed in a report tabled before Parliament last week that assets valued at US$9,259,711, ZWG24,538,578, and ZWL375,512,256 remain undelivered. These include 40 vehicles, 17 fire trucks, 83 desktop computers, 75 laptops, and various office furniture items.
"The non-delivery of procured goods remains a significant concern. Contract monitoring was not effectively enforced, and contractual provisions on supplier non-performance were not invoked," Kujinga stated.
She warned of the risk of excessive contract price variations if payments continue without timely deliveries, which could further strain public resources. The absence of these critical assets has also compromised service delivery, as they are essential tools for the effective functioning of government institutions.
Key ministries affected by undelivered assets include Finance; Economic Development and Investment Promotion; Lands, Agriculture, Fisheries, Water and Rural Development; Local Government and Public Works; and Skills Audit and Development.
The Ministry of Local Government and Public Works ordered 17 fire trucks worth over US$8.3 million and additional vehicles valued at ZWL203 million, none of which have been delivered. Similarly, the Ministry of Lands and Agriculture awaits delivery of various items, including Toyota Hilux GD6 double cabs, tablets, office furniture, iPhone accessories, tents, and a contract for constructing grain silos valued at US$355.7 million, which remain undelivered since 2024.
Other notable undelivered purchases include Toyota Hilux vehicles worth US$243,352 by the Finance Ministry and office furniture valued at US$178,680 for the Skills Audit and Development Ministry.
The Ministry of Sport, Recreation, Arts and Culture reported six Nissan Navara vehicles and 20 straw hats worth over ZWG138 million and US$400 respectively, still undelivered. Meanwhile, the Home Affairs and Cultural Heritage Ministry and Higher and Tertiary Education Ministry await vehicles and consumables such as food and toilet paper valued at US$104,474 and US$22,045 respectively.
In addition to procurement challenges, Kujinga highlighted issues with the conversion of financial transactions following Zimbabwe's currency switch from the Zimbabwean dollar (ZWL) to the Zimbabwe Gold (ZWG) in April 2024. The lack of uniform application of Treasury guidelines resulted in multiple withdrawals and resubmissions of financial statements by nearly all MDAs.
Furthermore, the Public Financial Management System (PFMS) experienced a near five-month downtime during the currency transition, from April to August 2024, causing many MDAs to operate outside the system. Consequently, some financial data were not uploaded, potentially leading to misstated expenditure figures.
The report underscores the urgent need for improved contract enforcement, asset delivery monitoring, and financial management reforms to safeguard public resources and enhance government service delivery.
Acting Auditor-General Rheah Kujinga disclosed in a report tabled before Parliament last week that assets valued at US$9,259,711, ZWG24,538,578, and ZWL375,512,256 remain undelivered. These include 40 vehicles, 17 fire trucks, 83 desktop computers, 75 laptops, and various office furniture items.
"The non-delivery of procured goods remains a significant concern. Contract monitoring was not effectively enforced, and contractual provisions on supplier non-performance were not invoked," Kujinga stated.
She warned of the risk of excessive contract price variations if payments continue without timely deliveries, which could further strain public resources. The absence of these critical assets has also compromised service delivery, as they are essential tools for the effective functioning of government institutions.
Key ministries affected by undelivered assets include Finance; Economic Development and Investment Promotion; Lands, Agriculture, Fisheries, Water and Rural Development; Local Government and Public Works; and Skills Audit and Development.
Other notable undelivered purchases include Toyota Hilux vehicles worth US$243,352 by the Finance Ministry and office furniture valued at US$178,680 for the Skills Audit and Development Ministry.
The Ministry of Sport, Recreation, Arts and Culture reported six Nissan Navara vehicles and 20 straw hats worth over ZWG138 million and US$400 respectively, still undelivered. Meanwhile, the Home Affairs and Cultural Heritage Ministry and Higher and Tertiary Education Ministry await vehicles and consumables such as food and toilet paper valued at US$104,474 and US$22,045 respectively.
In addition to procurement challenges, Kujinga highlighted issues with the conversion of financial transactions following Zimbabwe's currency switch from the Zimbabwean dollar (ZWL) to the Zimbabwe Gold (ZWG) in April 2024. The lack of uniform application of Treasury guidelines resulted in multiple withdrawals and resubmissions of financial statements by nearly all MDAs.
Furthermore, the Public Financial Management System (PFMS) experienced a near five-month downtime during the currency transition, from April to August 2024, causing many MDAs to operate outside the system. Consequently, some financial data were not uploaded, potentially leading to misstated expenditure figures.
The report underscores the urgent need for improved contract enforcement, asset delivery monitoring, and financial management reforms to safeguard public resources and enhance government service delivery.
Source - Newsday
