Zimbabwe: U.S.$4,9 Million Transformers Not Delivered 9 Years On


The Zimbabwe Electricity and Distribution Company has not taken delivery of transformers it paid US$4,9 million for nine years ago. This was said by Auditor General Mrs Mildred Chiri while presenting her annual report for State Enterprises and Parastatals yesterday.

She 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,” said Mrs Chiri.

“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 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 are they, but there are quite a number which could be criminally aligned, but 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 the State Enterprises and Parastatals.

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Publish date : 2019-06-29 09:11:45

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