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The Auditor-General, Mildred Chiri, has implored accounting professionals to shun corruption, saying dabbling in corrupt activities can jeopardise one’s career.
Chiri made the remarks while speaking at the 2022 Premier Business School (PBS) awards ceremony in Harare last Thursday.
She urged accounting professionals who were awarded the Association of Chartered Certified Accountants (ACCA) certification to use the skills they had acquired to help rebuild the country’s economy. Chiri said:
<blockquote>
Go out there and be ethical accountants with integrity. Corruption kills both yourself and the country.
Don’t be involved in corrupt activities that jeopardise your career, and do not aspire to acquire wealth at any cost.
We have seen many scandals in the private and public sectors, some of which were perpetrated by qualified accountants.
We don’t expect that from you as products of Premier Business School.
Integrity and ethics should be the backbone of any accounting professional.
Without integrity and ethics, you cannot be a successful accountant or finance person.
The profession requires high levels of discipline, and without integrity, it is almost impossible for you to achieve sustained success.
</blockquote>
Chiri also commended the award recipients for completing their studies despite the challenges brought by the coronavirus. | <a href="https://www.herald.co.zw/auditors-urged-to-shun-corruption/">The Herald</a>

Pindula News

Auditor-General Urges Accountants To Shun Corruption

Parliament has urged the government to fully capacitate the Auditor-General’s office by committing at least 1% of the 2023 national budget towards its operations so that it can operate as an independent institution.
Finance and Economic Development minister <a href="https://www.pindula.co.zw/Mthuli_Ncube">Mthuli Ncube</a> allocated $9.9 billion against a bid of $25.3 billion to AG’s office for 2023, which translated to 0.6% of the national budget.
The 2023 budget was passed by Parliament last week without any significant changes to allocations.
A post-budget report by the Public Accounts Committee (PAC) said AG’s office was paramount as it scrutinised the effectiveness of government financial systems and the level of compliance with financial policies and guidelines.
Legislators said underfunding could compromise the effectiveness of the Auditor General’s office to carry out its oversight function. Read in part the PAC report seen by <a href="https://www.newsday.co.zw/local-news/article/200005443/parly-urges-govt-to-fund-ag-office">NewsDay</a>:
<blockquote>
The independence of the audit office is partly guaranteed by enabling it to perform its mandate fully and this is achievable if adequate resources are made available. It should be noted that audit offices, the world over, have a responsibility of assisting governments to better manage scarce public resources in a transparent manner and to achieve their set objectives.
Our audit office has performed well in the past and deserves the necessary budgetary support to help it keep on fulfilling its constitutional mandate.
</blockquote>
Legislators said throughout the PAC’s analysis of the AG’s reports, it had noted with concern that there was low coverage by the audit office due to a lack of resources.
PAC said AG’s reports pointed out that some foreign stations and embassies had gone for many years without being audited thereby presenting great risks to public finance management.
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

Parliament Says The Auditor General's Office Needs To Be Adequately Funded

Auditor-General Mildred Chiri said her office will continue to name and shame companies that fail to deliver upon getting Government contracts despite threats of lawsuits from the firms.
Speaking in Nyanga at a media workshop recently, Chiri said in her 2019 annual report, she did not publish the names of firms that fail to deliver after securing contracts from the Government.
The firms had threatened her office with litigation saying exposing them had a negative impact on their reputation.
She, however, said, after consulting Parliament’s Public Accounts Committee, it was agreed that she continued exposing the errant companies. Said Chiri:
<blockquote>
We agreed with Parliament to have these names published. People who do business with the Government should know that there are prone to public scrutiny.
We have reverted to naming people who do not deliver with regard to Government business.
</blockquote>
Chiri also urged external auditors contracted to carry out forensic audits to do their work meticulously and rigorously. She said:
<blockquote>
We have told them that their audits should survive the test and scrutiny of the courts. It should be beyond reproach.
</blockquote>
<h4>More: <a href="https://www.herald.co.zw/performance-contracts-key-chiri/">The Herald</a></h4>

Auditor-General To Continue Exposing Incompetent Firms

Auditor-General Mildred Chiri says having many laws but without ethics will not improve the performance of Government officials.
Chiri said the performance contracts recently signed by Government ministers, permanent secretaries and other senior officials might stop corruption and fraud if the moral fibre of society is restored.
Speaking in Nyanga at a media workshop recently, Chiri said the performance contracts signed by senior Government officials could make the officials implement audit reports and recommendations. Said Chiri:
<blockquote>
What is lacking is the enforcement and implementation of audit recommendations.
This is why the Public Service Commission has introduced training on work ethics.
Moral fibre has gone down and it is necessary that we go back to basics.
We can have a lot of laws but without work ethics, they will not help.
Without work ethics, people will still find a way to commit crimes such as corruption and fraud.
</blockquote>
Chiri said current laws, which include the Public Finance and Management Act and Audit Office Act among others, are conducive for her to discharge her work but what is lacking is the enforcement of the rules.
<h4>More: <a href="https://www.herald.co.zw/performance-contracts-key-chiri/">The Herald</a></h4>

Laws Without Ethics Will Not Help - Chiri

The Zimbabwe Republic Police (ZRP) failed to produce financial records for the organisation’s 16 farms to facilitate auditing by the Auditor-General for two consecutive years.
This was revealed by Auditor-General Mildred Chiri in the 2020 report on Appropriation Accounts, Finance and Revenue Statements and Fund Accounts, which was tabled before Parliament last week. In the report, Chiri said:
<blockquote>
The farms were allocated by the government to the Minister of Home Affairs and Cultural Heritage.
For the second year in succession, I have to report that the Ministry of Home Affairs did not produce financial records showing the police service farming activities were being accounted for.
I was, therefore, not able to validate whether all expenditure incurred and revenue generated had been properly accounted for and reported at the end of the year.
State property and activities may not be fully accounted for if systems are not in place to ensure transparency and effective reporting.
Payments by the Home Affairs ministry were not supported by vouchers and receipts as confirmation that service providers or suppliers provided the services and received the money.
</blockquote>
In her recommendations, Chiri said police activities should be disclosed in asset registers of the Ministry of Home Affairs and Cultural Heritage.
She also recommended that ZRP activities and proceeds should be properly reported in line with the Public Finance Management Act and other laws and regulations.
In its response, ZRP said internal auditors managed to visit only five farms due to COVID-19, while visits to other provinces were ongoing. The police said:
<blockquote>
The 16 farms are Police Service Funds amenities operating under the Zimbabwe Republic Police Board of Trustees.
Operations of the farms are guided by Police Standing Orders Volume One and periodic circulars.
They are managed by the respective provincial commanders where they are located.
Financial statements are reviewed by the police internal auditors before submission to Police General Headquarters.
Due to the COVID-19 pandemic, the police internal auditors managed to visit five farms whose financial statements for the period under review were submitted to the external auditor and visits to the remaining provinces were in progress.
</blockquote>
<h4>More: <a href="https://www.newzimbabwe.com/audit-exposes-police-messy-police-investments/">NewZimbabwe.com</a></h4>

Police Fail To Produce Financial Records For 16 ZRP Farms

The Government subsidised Zimbabwe United Passenger Company (ZUPCO) to the tune of over ZWL$1 billion in 2020 alone without any supporting documents.
According to the 2020 Auditor-General’s report, the Government gave ZUPCO ZWL$1.2 billion to support its operations. Auditor-General Mildred Chiri said:
<blockquote>
A total amount of ZW$1 179 966 264 related to unsupported subsidy disbursements to ZUPCO was observed.
It was difficult to ascertain whether the expenditure was a proper charge to the vote.
This is contrary to the provisions of Section 59 (15) of the Public Finance Management (Treasury Instructions) 2019, which states that payments should be adequately supported.
</blockquote>
ZUPCO was re-introduced in 2019 after public transporters parked their vehicles following riots that were triggered by a 150 per cent fuel hike.
In the same year, the Parliamentary Portfolio Committee on Local Government revealed that the ZUPCO subsidy was ZWL$51 million a month.
<h4>More: <a href="https://www.newzimbabwe.com/zupco-costs-govt-zwl12-billion-in-one-year/">New Zimbabwe</a></h4>

ZUPCO Costs Govt ZWL$1.2 Billion In 2020

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<div class="et_pb_module et_pb_post_content et_pb_post_content_0_tb_body">Government-owned telecommunications company, NetOne, allegedly mishandled the distribution of funds worth more than US$1 million that were meant to cushion vulnerable people against a Covid-19 lockdown.</div>
<div> </div>
<div class="et_pb_module et_pb_post_content et_pb_post_content_0_tb_body">This was revealed in the latest report by the Office of the Auditor General (OAG) titled Special Audit Report of the Auditor General on the Covid-19 Pandemic Financial Management and Utilisation of Public Resources” which was tabled before parliament on Tuesday, 2 August 2021.
NetOne was formed in 1996 as a subsidiary of the Posts and Telecommunications Corporation (PTC) which was in 2000 unbundled into NetOne, Zimpost and TelOne.
The OAG report that covered six of Zimbabwe’s 10 provinces says a total of ZW$89 022 103 (US$ 1. 047 million) was disbursed through NetOne’s mobile money facility, One Money, between 19 May and 12 December 2020. Notes the report:
<blockquote>
No reconciliations were done with the mobile money service provider to confirm whether all the payments reached the intended beneficiaries as there were instances where the mobile money service provider issued two (2) different Net One lines to the same individual.
There was processing of payments to beneficiaries with fictitious identity numbers and suspicious names (as well as) incorrect and insufficient contact addresses. There was also use of similar contact addresses for beneficiaries in districts.
No follow-up mechanism was developed to verify existence of the beneficiaries and whether the allowances had reached the intended beneficiaries.
</blockquote>
Small to Medium Enterprises (SMEs), food-insecure households not supported by donors, people with disabilities, the elderly, chronically ill persons and child-headed households were the targeted beneficiaries. The OAG, however, observed that:
<ul>
<li>NetOne used an unreliable beneficiary database that resulted in the abuse of funds, adding that, in some cases, individuals received multiple transfers against government policy.</li>
<li>Other beneficiaries had the same identity numbers but different gender and dates of birth.</li>
<li>There were irregularities in the SIM cards that NetOne issued to purported beneficiaries.</li>
<li>NetOne issued call lines to beneficiaries but failed to upload the allowances while some batches of SIM cards were sent to wrong districts or provinces, “resulting in non-collection of the allowances by intended beneficiaries.</li>
<li>A total of $201, 900 Covid-19 allowances processed in July 2020 for 673 beneficiaries at $300 each had not been collected from the Buhera District Social Welfare office. </li>
<li>This was due to incorrect contact details such as the addresses on the database.</li>
<li>88 Buhera district beneficiaries had their Covid-19 allowances amounting to $26, 400 (US$305) collected by third parties without written authorization from the beneficiaries. </li>
<li>This was in violation of Section 59 (10) of the Public Finance Management (Treasury Instructions) 2019, which requires collections by third parties to be supported by a proper authority that should be attached to the payment voucher.</li>
<li>The lack of validation, integration and sharing of data and outdated or incorrect information across Government platforms resulted in some beneficiaries, including Government officials, receiving COVID19 relief disbursements they might not have been entitled to. </li>
<li>Intended beneficiaries could have been deprived of the assistance as a result.</li>
</ul>
The audit is in resonance with findings from an investigation that was produced by Information for Development Trust (IDT), jointly working with<a data-id="www.standard.co.zw" data-type="URL" href="http://www.standard.co.zw"> The Standard</a>.
 IDT and The Standard observed in early April 2020 that<a data-id="https://www.thestandard.co.zw/2020/04/12/govts-coronavirus-kitty-raises-stink/" data-type="URL" href="https://www.thestandard.co.zw/2020/04/12/govts-coronavirus-kitty-raises-stink/"> NetOne had been imposed by the government</a> to distribute money meant for the needy even though a rival firm, Econet Wireless Zimbabwe, was more popular with subscribers.
In the second investigation, it was observed that politically connected people, an MP, business people considered close to the first lady, Auxillia Mnangagwa, civil servants like teachers, nurses as well as war veterans, are benefiting from separate social schemes.
The government subsequently cleaned up the list and removed the underserving citizens.
More: <a href="https://grazersnews.org/archives/217693">GrazersNews</a>
</div>
</div>

NetOne Mishandled COVID-19 Funds - Auditor General

Masvingo Provincial Medical Director (PMD) Dr Amadeus Shamhu said the dangerous and expired drugs that Masvingo Provincial Hospital allegedly kept for 24 years between 1995-2019 were collected by the Medicines Control Authority of Zimbabwe (MCAZ).
In the report on state enterprises and parastatals, which was tabled in parliament on 14 June 2021, Auditor-General Mildred Chiri exposed the dire state of the health system in Zimbabwe with Masvingo Provincial Hospital reportedly failing to dispose of expired drugs for 24 years.
But speaking to TellZim News recently, Dr Shamhu said MCAZ came and collected the dangerous drugs for disposal soon after Auditor-General Mildred Chiri’s visit as per the procedure. He said:
<blockquote>The drugs written in the auditor general’s report were collected by MCAZ two weeks after the AG’s visit.
The hospital does not have an incinerating facility to destroy dangerous drugs because it works under certain temperatures that we do not have at the hospital.
The hospital has an incineration facility to destroy ordinary drugs and other waste from the hospital which is adequate and functioning at the moment.</blockquote>
The Auditor General’s report also revealed the issue of an expenditure involving the sum of $516 042 which was used by the hospital without supporting documents like invoices and receipts.
Shamhu said he was not aware of the issue concerning the expenditure since the money has to be accounted for.
The report by Chiri also accused the PMD’s office of incompetency for failure to follow the recommendation of the Board of Survey to auction accident damaged vehicle registration number GCHW 499 by opting to swap and top the engines with that of ABI 9012.
Shamhu said he could not comment on the allegations and referred all questions to Masvingo Provincial Hospital Medical Superintendent Dr Noel Zulu.
When contacted for comment, Dr Zulu said the vehicle in question was not in their records and was not part of their fleet.
<h4>More: <a href="http://www.tellzim.com/2021/07/expired-drugs-collected-by-mcaz-pmd.html">TellZim News</a></h4>

Expired Drugs Kept At Hospital For 24 Years Finally Collected

Auditor-General, Mildred Chiri, has said her office has been threatened by some companies reported as corrupt in her previous audit reports.
Chiri added that as a result of the threats, her office resorted to not naming the companies involved in underhand dealings in order in the recently released 2019 report to avoid lawsuits.
Giving oral evidence to the Public Accounts Parliamentary Portfolio committee on Monday, Chiri said:
<blockquote>
<div dir="auto">Regarding the naming of companies with issues in the annual report, the approach of naming suppliers and companies was not done in order to manage the risk associated with potential litigation. There have been comebacks with some suppliers on some of our findings in the past. Those that have approached us in the past were saying naming them in our reports had resulted in them losing business. They think just mentioning their names taints them as this takes away their future businesses.</div>
<div dir="auto"></div>
<div dir="auto">Some would sort of like threaten and when we checked with our secretariat. They warned us that we would face a litany of lawsuits if we continued with naming companies.</div>
</blockquote>
Chiri promised to satisfy all stakeholders in future as her office was now in the process of finding ways to deal with such matters.
Her remarks confirm reports in the public domain that she had been “arm-twisted” by companies and or political elites involved in underhand dealings not to state their names.
Commenting on the 2019 report, law lecturer, Alex Magaisa, said the “report appears to have been edited so that where it used to identify a company by its name, now it simply refers to “a local company”.
Previously, Chiri has been naming corrupt companies although little to nothing was being done following the report.
Observers say naming the companies is essential for transparency and accountability, both key constitutional values and principles.
More: <a href="https://news.pindula.co.zw">Pindula News</a>; <a href="https://www.newzimbabwe.com/companies-threaten-to-sue-auditor-general-mildred-chiri/">NewZimbabwe</a>

Auditor-General Chiri Threatened By "Corrupt" Companies

The Auditor General’s office has revealed, in its latest report, that the country’s biggest referral hospital, Parirenyatwa Group of Hospitals, cancelled 1 688 surgical operations in one year, owing to a lack of medical equipment.
In the report on state enterprises and parastatals, which was presented to Finance minister, Mthuli Ncube, on 30 April 2021 and subsequently tabled in parliament on 14 June 2021, Auditor-General Mildred Chiri said this may compromise health service delivery.
She also found that during the year under review (2018) the hospital did not have adequate monitors in anaesthetic rooms and recovery areas, with only eight out of 18 stations in use. Said Chiri:
<blockquote>Due to financial constraints to re-tool the theatres over the years, most of the equipment broke down and the hospital was unable to provide adequate theatre coverage hence cancellations of theatre cases.
However, during the third quarter of the year, procurement of spare parts which was used to repair the equipment was done which reduced the number of theatre cancellations.
The year 2018 witnessed two industrial actions by medical personnel in February and December 2018 which contributed to theatre cancellations.
Furthermore, the availability of Anesthetists was also a challenge and this resulted in theatre cancellations.
The other reasons for theatre cancellations were: overbooking of elective cases by surgeons, shortage of material resources, poor preparation of patients, shortage of ICU beds, shortage of equipment such as multi-parameter monitors.</blockquote>
Chiri also found out that the hospital was operating with inadequate key equipment and resources during the year under review. She said:
<blockquote>The Hospital did not have adequate monitors in anaesthetic rooms and recovery areas and only eight out of eighteen stations were in use.
In addition, the Intensive Care Unit and Higher Dependence Unit (HDU) did not have adequate beds to accommodate patients.</blockquote>
The hospital’s management, in response to the audit findings, said the cancellation of surgical operations had also been influenced by job action by the health sector as well as poor preparation of patients and shortage of intensive care unit (ICU) beds, among other challenges.
They also said they had not been able to acquire more equipment and service existing machines because of foreign currency shortages. Their response read:
<blockquote>Critical equipment such as monitors and anaesthetic machines were inadequate due to a shortage of foreign currency.
Orders for replacement and/or procurement of new equipment was hampered by a lack of foreign currency.
The minimum allocation of ICU and HDU beds should have been 10% of the hospital capacity which translates to 120 beds.
This was far-fetched as the hospital itself was not designed to comply with that provision.
Furthermore, assuming space would be provided, that space would not have been utilised because of the shortage of specialist nurses who are even not adequate to cover the ICU and HDU beds that are available at the moment.</blockquote>
The Auditor-General said management should engage the key stakeholders and formulate plans to resolve all the issues noted in relation to limited capacity and shortage of drugs and equipment without any further delay.
<h4>More: <a href="https://thenewshawks.com/ill-equipped-parirenyatwa-group-cancels-1-688-surgical-operations/">The NewsHawks</a></h4>

Parirenyatwa Hospital Cancelled 1 688 Surgical Operations In One Year

The Transport and Infrastructural Development ministry has failed to account for close to US$8 million dollars that it received from Treasury for departmental projects in 2019.
This was revealed by the Auditor General’s report which was presented to Finance and Economic Development Minister, Mthuli Ncube, on 30 April 2021 and subsequently tabled in parliament on 14 June 2021.
The audit report covered the year ending 31 December 2019.
Auditor-General, Mildred Chiri, noted that the ministry had transferred ZWL$657 500 000 (US$7.8 million) to the Infrastructural Development Bank of Zimbabwe (IDBZ) but could not demonstrate how the money was used.
The money was meant to fund more than 80 projects yet, during the year under review, the ministry — which was then under the late Joel Biggie Matiza — commissioned only two.
The infrastructural bank was supposed to facilitate the construction and rehabilitation of roads. Said Chiri:
<blockquote>I noted with concern that there was no evidence on how funds transferred from the Ministry of Transport and Infrastructural Development to the Infrastructural Development Bank of Zimbabwe (IDBZ) during 2019 amounting to $657 500 000 (US$7.8 million) were utilized as only 2 out of 85 projects were completed.</blockquote>
The failure to provide evidence on how the funds were used meant that the ministry contravened Section 29(4)(b) of the Public Finance Management Act (PFMA), Chapter 22:19.
Chiri further noted that “there was no system in place to track on how funds transferred to IDBZ by the Ministry were supposed to be accounted for and monitored”, thereby exposing the ministry to financial abuse.
The ministry did not follow up with IDBZ on the project funds transferred to the bank.
In its response during the audit, the management at the ministry said the payments made to various contractors and suppliers could be accessed from IDBZ as these were the managers of the project.
Chiri, however, warned that the ministry could be sued for failing to provide contract agreements relating to companies that were engaged to construct and maintain roads.
The public auditor did not get the contracts during the review period and said the ministry acted in contravention of sections 80(3) and (4) of the PFMA.
<h4>More: <a href="https://grazersnews.org/archives/217644">Grazers News</a></h4>

Transport Ministry Fails To Account For $657 Million

Two provincial hospitals have been keeping expired drugs for many years in violation of the law, the Auditor-General’s Office has revealed.
Masvingo Provincial Hospital held drugs that expired between 1995 and 2019, while Marondera Provincial Hospital did not take heed of a directive to dispose of expired drugs worth $ 7 140 in 2019.
According to Auditor-General Mildred Chiri’s report for the financial year ended December 31, 2019, on Appropriation Accounts and Fund Accounts, which was recently tabled in Parliament, the two hospitals breached Section 90 of the Public Procurement and Disposal of Public Assets Act.
The Act requires disposal of all obsolete, surplus and unserviceable assets. The report read in part:
<blockquote>The report notes that keeping the expired drugs in storage opened loopholes for theft and corruption.
Failure to dispose of the dangerous drugs and expired drugs may result in pilferage which pose danger to the public.
Also storing expired drugs deprives the pharmacy of the much-needed storage space.</blockquote>
Chiri said she was not provided with application letters for the disposal of the expired drugs. She added:
<blockquote>It was also not clear whether the hospital had applied for such authority after the board of survey was conducted.
Marondera Provincial Hospital was granted authority to dispose of expired drugs worth $7 140 on July 26, 2019.
However, as at the time of my audit, the expired drugs were still at the hospital.</blockquote>
The Auditor-General urged management to make efforts to have the expired drugs destroyed as soon as authority has been granted.
<h4>More: <a href="https://www.sundaymail.co.zw/hospitals-keep-expired-drugs-from-1995" rel="noopener" target="_blank">The Sunday Mail</a></h4>

Hospital Keeps Expired Drugs From 1995

The government spent nearly $7 billion in 2019 without Parliament’s approval in violation of the Constitution, Auditor-General (AG) Mildred Chiri’s latest report has shown.
The report, on appropriation accounts and fund accounts, also showed that the government was likely paying ghost workers because there was no proper register for civil servants. The report says in part:
<blockquote>During the year under review, Treasury incurred unauthorised excess expenditure amounting to $6 806 340 654 as a result of unallocated reserve transfers made to line ministries amounting to $7 386 995 654.
This exceeded the approved budget of $580 655 000 in contravention of section 305(5) of the Constitution.
Treasury as the manager of the public purse did not adhere to legal provisions on the sanctioning of excess expenditure by Parliament.
Furthermore, I noted some variances between the schedule of unallocated reserve transfers from Treasury and the received transfer schedules of the same from the individual line ministries and the variances needed to be reconciled.
I raised this issue in my prior year reports and the matter is recurring.</blockquote>
Chiri also said the Finance ministry made direct payments to various ministries without proper documentation, a situation open to manipulation.
<blockquote>The Salary Services Bureau (SSB) records for employment costs had a total of $29 762 918 while PFMS ledgers had a total amount of $27 967 054, resulting in a variance of $1 795 864 that was not reconciled.
Treasury circular B/1/88 dated June 5, 2018 requested directors of finance of line ministries to perform monthly reconciliations of billed amounts by SSB against employment cost expenditure shown in PFMS ledgers.
No evidence was produced to show that monthly reconciliations were being done in compliance with the Treasury circular.
The risks/implications (of this are) salaries may be paid for services not rendered. The employment costs reported for the financial year under review may be misstated.</blockquote>
Chiri said the year-long delay in releasing her audit was caused by the COVID-19 pandemic that made it practically impossible to meet the statutory deadline of June 30, 2020.
<h4>More: <a href="https://www.newsday.co.zw/2021/06/govt-gobbles-7bn-in-wildcat-spending/" rel="noopener" target="_blank">NewsDay</a></h4>

Govt Gobbles $7 Billion In Unauthorised Excess Expenditure

Mutare has the highest number of unregistered Early Childhood Development (ECD) centres, while Bulawayo central has the lowest at 9 centres, it has been established.
According to a recent report by Auditor-General Mildred Chiri, there were delays by the Ministry of Primary and Secondary Education (MoPSE) in processing the applications for registration, re-registration and establishment of schools resulting in the mushrooming of backyard colleges. The report says:
<blockquote>The timelines for the processing of the applications at Head Office must be three months for the establishment and four months for registration or re-registration.
Processing of applications has been outstanding for as long as twenty-four months.
In addition, from a sample of 97 applications reviewed, 69 were still pending at the time of audit.
The reasons for the delays could not be clearly established as the Provincial Directors interviewed were of the view that the process was bureaucratic as the applications were done from the District Office to Provincial Office, then Head Office yet some time ago approvals were done at the provincial level.
The delays in the registration of ECD centres by the responsible ministry has resulted in the sprouting of unregistered schools and colleges operating from unsuitable premises such as backyards and garages.</blockquote>
The backyard schools rudimentary, as they have unsuitable, inadequate furniture and classrooms. Chiri added:
<blockquote>The MoPSE may not be aware of the existence of such schools and colleges if they do not monitor and supervise them.
This created an opportunity for these schools to employ unqualified teachers, thereby negatively affecting the quality of education given.</blockquote>
Second on the list of unregistered schools is Gweru with 132, Mzilikazi (39), Makonde (17), Bindura (15), and Mbare-Highfield 14.
Mbare has the highest number of unregistered Independent Colleges at 22, followed by Mzilikazi 13, Makonde (7), Gweru (6), Mutare 3 and Bindura and Masvingo both having 4.
<h4>More: <a href="https://www.newzimbabwe.com/mutare-has-highest-number-of-unregistered-ecd-centres/" rel="noopener" target="_blank">NewZimbabwe.com</a></h4>

Excessive Bureaucracy Fuels Proliferation Of Unregistered ECD Centres

Calls for the release of the Auditor Generals’ 2019 report have intensified amid accusations that the government was deliberately delaying the process in fear that the report contained damaging contents.
The report was supposed to be submitted to Parliament in June last year but is still not yet out with authorities citing the outbreak of the coronavirus pandemic as the major impediment.
Previous reports by the <a href="https://www.pindula.co.zw/Mildred_Chiri">Auditor General, Midred Chiri,</a> exposed grand corruption by the majority of public institutions.
The former Minister of Finance and Economic Development during the Government of National Unity (GNU), Tendai Biti, said despite delays by the pandemic, the report should have been released by now. He said:
<blockquote>Audit reports should be released on time as stipulated in the Public Finance Management Act to guarantee public finance accountability.
Citizens need to know how their money is being utilised and they can monitor it through the Auditor-General’s report. Failure to provide the report for public scrutiny is, therefore, unconstitutional.</blockquote>
His remarks were echoed by Zimbabwe Human Rights NGO Forum’s executive director Musa Kika who said it had become the norm that government-run institutions failed to provide public reports timeously, which resulted in public financial losses going unchecked. Kika said:
<blockquote>Delay of the AG’s report exposes accountability and transparency deficits in an office that is supposed to exert accountability on others. These reports are for the public, who are the stockholders of public power and public resources, and must always have occasion to inspect them.
Unfortunately, this appears to be a standing practice with many State-affiliated or constitutional offices that do not take time stipulations for release of reports seriously.</blockquote>
NewsDay contacted President Emmerson Mnangagwa’s spokesperson, George Charamba, to comment on the delays in the release of the report and he said the Auditor General’s office was better positioned to respond to the questions.
More: <a href="https://news.pindula.co.zw/">Pindula News</a>; <a href="https://www.newsday.co.zw/2021/04/csos-demand-release-of-2019-auditor-general-report/">NewsDay</a>

Calls For Release Of Auditor General's 2019 Report Intensify

Four Chegutu Council police officers were caught while receiving a US$10 bribe from a motorist whom they had accused of driving through Chegutu without number plates.
The motorist told the cops that he was coming from the Botswana border and would register the car on arrival in Harare.
The four council police officers were arrested soon after receiving the bribe and they implicated each other and confessed to working as a team to meet their daily target. 
Reports suggest that municipal policemen use spikes to instill fear in motorists and bus drivers so that they demand bribes. 
The four are expected to appear in court on Monday facing corruption charges. 
Their arrest comes at a time the town clerk Mr. Alex Mandigo was suspended on allegations of incompetence, among others, and a committee to investigate his conduct is set to be appointed soon.
These reports can be viewed as petty corruption considering that some individuals in the country have reportedly <a href="https://news.pindula.co.zw/2018/03/25/us10-billion-in-investments-lost-under-mugabe/">robbed the state of millions of dollars.</a>
Government reports such as those by the Auditor General suggest that corruption is rampant in Zimbabwe and is a key attribute to the collapse of the once vibrant economy.
Since coming to power in 2017, President Emmerson Mnangagwa pledged to deal with corruption which he said was affecting national growth.
He reinvigorated the Zimbabwe Anti-Corruption Commission (ZACC) which has to date arrested a number of people on allegations that they were engaging in underhand dealings that choke efforts to revive the economy.
Also as a way of acknowledging the depth and breadth of corruption, president Mnangagwa also established the Special Anti Corruption Unit (SACU) to work hand in hand with other anti-corruption units.
While a number of prominent politicians including former Tourism Minister Prisca Mupfumira have so far been arrested, analysts argue that the Mnangagwa-led administration is not committed to fighting the rot adding that the arrests seen so far are meant to fool observers.
Their main concern is that there have been arrests but convictions are less when “there is overwhelming evidence” to suggest that the accused engaged in corrupt activities.
More: <a href="https://www.herald.co.zw/municipal-cops-caught-red-handed/">The Herald</a>

Four Council Police Caught Receiving A Bribe From Motorist

The office of the Auditor-General is scheduled to audit COVID-19 funds amid reports of rampant abuse by senior government officials.
This comes when Dr <a href="https://news.pindula.co.zw/2020/07/07/breaking-ed-fires-obadiah-moyo/" rel="noopener noreferrer" target="_blank">Obadiah Moyo who was the Minister of the Ministry of Health and Child Care has been fired</a> after he allegedly abused the funds.
Auditor-General Mrs Mildred Chiri has ordered all Government departments to furnish her with details with regards to COVID-19 funds and is now waiting for responses.
Speaking to The Herald in an interview, the Auditor-General said they intend to assess the observance of principles of corporate governance, the control mechanism, and the gaps with regards to the management of the funds. She said:
<blockquote>
Our desire is not to conduct a witch-hunt but to assist Government so that it does not unnecessarily lose resources. We will write to them on our observations, where we feel requires improvement.
We will be looking at such issues as control systems, whether they are strong or weak, at how are records of Covid-19 donations administered, at the distribution of such donations. So it is a whole package. It is a systems audit to ensure that there is enough control mechanism in handling the donations. The idea being to improve and ensure value for money given that we are still in a pandemic and every donation counts regardless of how huge or small.
</blockquote>
Chiri also indicated that the audit was delayed by the lockdown that was initially imposed on the country in March as a measure to curb the spread of the coronavirus.
The Auditor-General’s previous reports exposed grand corruption and poor Finance management practices in the majority of government departments and parastatals.
More: <a href="https://www.herald.co.zw/chiri-to-audit-covid-19-donations/" rel="noopener noreferrer" target="_blank">The Herald</a>

Auditor-General To Audit COVID-19 Funds

According to the Auditor General Mildred Chiri, the government’s accounting books are in shambles, the Zimbabwe Independent reports. The government reportedly has no balance sheet and that makes accountability for its assets almost impossible while some government workers are being promoted without the pre-requisite qualifications.
Chiri said this while she was making a presentation at the Institute of Chartered Secretaries and Administrators of Zimbabwe (Icsaz) Winter School on Public Finance Management (PFM) in Harare last week.
Chiri reportedly said:
<blockquote>It’s not safe to use this system. We always insist that there is an asset register to ensure that there is value and that these assets do not disappear without being accounted for. Yes, assets are recorded, but because we do not have something like a balance sheet, we cannot really see what government possesses as assets,
Pay sheets were not being reconciled with payments from the Salary Services Bureau. This is an area which we will be looking at in 2020 to see whether there have been improvements. There have also been tendencies across ministries to continue to obtain goods and services when they did not have adequate funds from Treasury. Unsupported expenditure has led to accumulation of debts</blockquote>
Chiri also said apart from the accounting problems they were facing, the government was also promoting people with no professional qualifications:
<blockquote>One of the other interventions besides implementation of the correct accounting methods, would be professionalising the public sector. Some of the people who have been through ranking government have no professional qualifications. This was a recommendation by the World Bank that the government should professionalise the sector. Icaz (Institute of Chartered Accountants of Zimbabwe) and Icsaz have also taken up this offer along with other organisations, so we hope to see an improvement in that area.</blockquote>
This is not the first time Chiri has made similar claims. Her audit <a href="https://news.pindula.co.zw/2019/06/29/general-auditors-report-exposes-disturbing-public-finance-mismanagement/">report of the government’s departments last year touched a storm as it unearthed gross levels of funds mismanagement and erroneous accounting</a> practices that made her task and that of her team difficult.
More: <a href="https://www.theindependent.co.zw/2020/08/28/govt-accounts-shambolic-auditor-general/">Zimbabwe Independent </a>

Government Accounts In Shambles - Report

The  Dutch and the United States Embassies in Harare have urged the Zimbabwe Anti-Corruption Commission (ZACC) and the Auditor General to thoroughly investigate corruption allegations levelled against the government.
This was after ZimLive, an online publication had published an article with serious allegations of government corruption regarding Zimbabwe’s COVID-19 response. The Dutch Embassy said:
<blockquote>This <a href="https://www.zimlive.com/2020/06/13/how-zimbabwe-paid-2-week-old-company-us2m-sparking-interpol-probe/">investigation</a> by <a class="css-4rbku5 css-18t94o4 css-901oao css-16my406 r-1n1174f r-1loqt21 r-1qd0xha r-ad9z0x r-bcqeeo r-qvutc0" data-focusable="true" dir="ltr" href="https://twitter.com/zimlive" role="link">@zimlive</a> needs to be followed up by <a class="css-4rbku5 css-18t94o4 css-901oao css-16my406 r-1n1174f r-1loqt21 r-1qd0xha r-ad9z0x r-bcqeeo r-qvutc0" data-focusable="true" dir="ltr" href="https://twitter.com/ZACConline" role="link">@ZACConline</a> and Auditor General in a transparent manner. The biggest victims of <a class="css-4rbku5 css-18t94o4 css-901oao css-16my406 r-1n1174f r-1loqt21 r-1qd0xha r-ad9z0x r-bcqeeo r-qvutc0" data-focusable="true" dir="ltr" href="https://twitter.com/hashtag/corruption?src=hashtag_click" role="link">#corruption</a> are the poor.</blockquote>
ZimLive alleged that Authorities in Hungary had opened a money-laundering investigation after Drax International, a company that was two weeks old, received a huge payment of US$2 million from Zimbabwe’s government.
It also indicated that Ilir Dedja, a 51-year-old man who was born in Albania is behind the alleged scheme to siphon money out of Zimbabwe.
The publication observed:
<blockquote>
<ul>
<li>Dedja travelled to Zimbabwe to meet with Mnangagwa and his Zimbabwe partner, Delish Nguwaya.</li>
<li>Spent years as a meat trader in Italy, acquires citizenship, own several companies which later shut shop.</li>
<li>Dedja is the only shareholder in two Swiss companies – Drax Consult SAGL and 3-DD Swiss Trading.</li>
<li>Drax Consult SAGL is registered in Lugano on March 2017 does little trading within Switzerland.</li>
<li>Dedja opened two bank accounts for Drax Consult SAGL with MagNet Bank in Budapest on December 6, 2019, a United States dollar account and a local currency one.</li>
<li>He registered the Hungary branch for Drax Consult SAGL on February 20, 2020, stating the company carries out activities including “business consulting, marketing, advertising and business management consulting for foreign companies trading in medical and cosmetic products.”</li>
<li>March 5, the new company’s bank account is credited with US$2 million, made as deposits of US$1 million each. The payments were a 10 percent deposit on a consignment of drugs and medical supplies on a contract worth US$20-million for the National Pharmaceutical Company (NatPharm).</li>
<li>Natpharm through the country’s Treasury pays the remaining US$18 million in subsequent deposits of US$1.5 million every month, finance ministry permanent secretary, George Guvamatanga signs the documents authorising the procurement.</li>
<li>Officials immediately flag the huge transactions into the account as suspicious before calling in Interpol which has now launched a money-laundering enquiry in conjunction with authorities in Hungary and Zimbabwe.</li>
</ul>
</blockquote>
More: <a href="https://www.zimlive.com/2020/06/13/how-zimbabwe-paid-2-week-old-company-us2m-sparking-interpol-probe/">ZimLive</a>

Dutch And US Embassies Speak On Corruption In Zimbabwe

The office of the Auditor-General has unearthed serious administrative issues at the Zimbabwe Electricity Supply Authority (ZESA) the local power utility.
The audit which was part of forensic audit findings by PricewaterhouseCoopers (PwC) commissioned by the Ministry of Energy and Power Development and Auditor-General’s Office (AGO) in 2018 also observed malpractices at ZESA subsidiaries including ZETDC.
The audit reveals that ZETDC paid Zebra Contracting over US$1,4 million for trenching services when no valid contract existed between the ZETDC and Zebra Contracting.
PwC reported that Zebra did not have a copper harvesting contract but was awarded a year-long trenching services contract in 2016 and it was subject to renewal in line with procurement regulations. PwC said:
<blockquote>However, when we inspected the list of transactions entered into by ZETDC with Zebra, we noted that there were transactions dating back to the year 2013.</blockquote>
The audit also observed gross violation of multimillion-dollar tenders which included the Dema diesel power project, prepaid electricity vending contract, transformer making deal with India’s PME Solutions, as well as abuse of Zesa’s vehicle policy and remuneration systems.
ZESA top officials are also reportedly leading luxurious lives when the power utility is reportedly broke.
More: <a href="https://www.sundaymail.co.zw/zesa-audit-opens-can-of-worms">The Sunday Mail</a>

Auditor-General Exposes Serious Maladministration Issues At ZESA

Former Zimbabwe National Road Administration (ZINARA) Chief Executive Officer, Frank Chitukutuku, was last night arrested by the Zimbabwe Anti-Corruption Commission (ZACC) over US$20 million corruption allegations.
Chitukutuku is accused of having imposed a company called Framers in six rural district councils for road construction without going to tender.
Framers is alleged to have transferred money into Chitukutuku’s personal account which he is believed to have used to purchase a residential stand in Glen Lorne, Harare.
Chitukutuku is expected to appear in court soon.
ZINARA is one of the various government departments and parastatals which the <a href="https://news.pindula.co.zw/2019/07/01/watch-10-things-unearthed-by-the-auditor-generals-report/">Registrar General said abused public funds</a> when the country’s economy is deteriorating at an unparalleled rate.
More: <a href="http://www.zbc.co.zw/former-zinara-boss-chitukutuku-arrested/">ZBC News</a>

ZACC Arrests Ex-ZINARA CEO Over US$20M Corruption Scandal

Tawanda Majoni, the national coordinator at Information for Development Trust has argued that president Emmerson Mnangagwa is a natural accomplice in Sakunda Holdings corruption.
Majoni claims that the president has strong ties with Sakunda Holdings chief executive officer, Kuda Tagwirei who is also an adviser to the president as he sits on the Presidential Advisory Committee (PAC).
Majoni observes that Mnangagwa should not have engaged Tagwirei who was known to be corrupt even before the president came to power.
These remarks come when Sakunda Holdings is said to have abused US$3 billion meant for the Command Agriculture Programme. The Programme is being monitored and supervised by the President’s office.
Majoni is bothered by the fact that the government has renewed the command agriculture contract with Sakunda when evaluation for previous initiatives has not been undertaken.
<blockquote>It is, therefore, puzzling why Mnangagwa has decided to keep Queen Bee on his side, despite all the odds. Clearly, what Tagwirei is being accused of has an acutely negative effect on the president’s standing. The more prices rise, the less popular Mnangagwa becomes. It’s now becoming a hard sell to blame Zimbabwe’s economic crisis on sanctions. Because it’s clear that the likes of Queen Bee are responsible for that.
By implication, Mnangagwa is also responsible for the crisis because he is keeping bad company. As already said, if you are found dining with a thief, it becomes difficult to believe that you are not a thief too.</blockquote>
More: <a href="https://www.thestandard.co.zw/2019/10/01/queen-bee-mnangagwas-bad-friend/">The Standard</a>

Sakunda Scandals: "ED Becomes A Natural Accomplice"

The Ministry of Public Service, Labour and Social Welfare has failed to account for or distribute goods donated by the Zimbabwe Revenue Authority (ZIMRA).
The goods are lying idle in storerooms while they continue to lose value due to damage by rats and adverse weather conditions.
The goods are meant to be disbursed to poor and vulnerable people.
This was revealed by Auditor-General Mrs Mildred Chiri in her 2018 report. She said:
<blockquote>There was poor accountability for goods donated to the Ministry of Public Service, Labour and Social Welfare by the Zimbabwe Revenue Authority (Zimra) held at Northcort Training Institute.
Items donated were inconsistently being recorded either as bales, sacks, bags by quantities or by weight instead of maintaining a standard unit of measurement of classification of the goods.
… From interviews held with the staff, there were instances when deliveries were made by transporters in the absence of the Ministry’s head office administration personnel for accountability purposes as they are the ones who would have collected the items from Zimra.</blockquote>
Among other misdemeanours, Chiri noted that there was no evidence of periodic or regular physical stock counts by supervisors both from the Ministry’s head office and Northcort Training Institute. She said:
<blockquote>Failure to consistently record donated items compromises the accountability of same and without physical verification, it would be difficult to ascertain whether the received donations were properly recorded and accounted for.</blockquote>
She recommended that the Ministry should ensure donated goods are secured at all times and that important details concerning the goods, such as quantities received, quantities issued, balance (in stock) and signature of the recipient on issuances, are captured.
<h4>More: <a href="https://www.chronicle.co.zw/ministry-fails-to-account-for-donations/" rel="noopener noreferrer" target="_blank">Chronicle</a></h4>

ZIMRA-donated Goods Rotting At Ministry of Public Service: Auditor-General

A government official in the Ministry of Tourism was paid a $15,000 in total salary while she was on leave for more than a year, a report by the Auditor General has revealed. The official started her leave in April 2019 and was still away when the audit was completed in April 2019.
Said the report:
<blockquote>An officer of the Ministry with EC Number 1594602M who was employed as the Director for International Trade was placed on leave pending redeployment with full salary and benefits with effect from April 9, 2018.
<ul>
<li><a href="https://news.pindula.co.zw/2019/07/06/interview-excerpts-arrest-prosecute-corrupt-public-officers-auditor-general/">“INTERVIEW EXCERPTS: “Arrest &amp; Prosecute Corrupt Public Officers” – Auditor-General</a></li>
<li><a href="https://news.pindula.co.zw/2019/07/01/watch-10-things-unearthed-by-the-auditor-generals-report/">WATCH: 10 Things Unearthed By The Auditor Generals’ Report</a></li>
<li><a href="https://news.pindula.co.zw/2019/06/30/why-investigate-corruption-when-the-auditor-exposed-it-adv-mahere/">“Why Investigate Corruption When The Auditor Exposed It,” Adv Mahere </a></li>
</ul>
At the time of completing my audit on April 29, 2019 she was still on leave and had received $15,881 as salary and allowances together with 1,800 litres (of fuel).
There was no evidence to show that the Ministry had contacted the Public Service Commission (PSC) regarding her employment</blockquote>
More: <a href="https://www.newzimbabwe.com/ministry-boss-allowed-to-draw-15-000-wage-while-on-full-year-leave/">New Zimbabwe</a>

Government Official Paid $15,000 While On Leave For More Than A Year - Audit Reveals

NewZWire reports that the Zimbabwe Electricity Supply Authority (ZESA) paid US$4.9 million 9 years ago to a firm for transformers which have not been delivered to date. <a href="https://twitter.com/newswireZW/status/1144602436537061377" rel="noopener noreferrer" target="_blank">The report reads</a>:
<blockquote>ZESA 9 years ago paid US$4.9m to a firm called Pito Investments for transformers. They were never delivered.
The Zimbabwe Power Company also paid $560K to the same firm, and again no equipment was delivered. This is according to the latest report by Auditor-General Mildred Chiri.</blockquote>

ZESA Paid US$4.9 Million For Transfomers, Still To Be Delivered 9 Years On

In a letter addressed to the Auditor-General, Mrs Mildred Chiri dated October 15, 2018, legislator Mr Temba Mliswa requested for a forensic audit of the Norton Town Council’s books and dealings citing corruption and misuse of funds.
Mliswa said several officials and councillors had been arrested or suspended on corruption-related charges. Police recently arrested Mr Mutyambizi and sitting councillors Muchaneta Munyeveri and Precious Mufahore for corruption. Former councillor Mr Eager Vupenyu Takawira was also arrested. The arrests were in connection with the allocation of stands sometime in 2014. Mliswa’s letter was copied to council chairperson Ms Matiere Gumisirayi, the Zimbabwe Anti-Corruption Commission, Norton Advisory Board chairman Dr Godfrey Mugaviri and Norton Residents’ Trust. Part of Mliswa’s letter reads:
<blockquote>Norton Town Council has recently been hit by a spate of corruption allegations and irregularities that have seen three councillors, the finance director (Mr Tendaupenyu) and the director of housing (Mr Blessing Mutyambizi), either arrested or suspended from work. It is therefore in this light, that I hereby request your office to invoke your constitutional provision to urgently conduct a full-scale forensic audit of Norton Town Council.</blockquote>
More: <a href="https://www.herald.co.zw/mp-mliswa-calls-for-norton-forensic-audit-2/">Herald</a>

Mliswa Writes To Auditor-General Requesting Forensic Audit Of Norton Town Council

An audit by the Auditor General has revealed that the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) accepted a wrong consignment of prepaid meters destined for South Africa. The audit also revealed that 10 426 of the 502 858 deployed by ZETDC had failed as of May 20 2016, which was well above the acceptable failure quantity of 1 508.
The 2017 audit report prepared by Auditor General, Mrs Mildred Chiri revealed there was no evidence that ZETDC had used results of a pilot project conducted at a cost of $1,5 million. Part of the audit report reads:
<blockquote>Information on faulty meter statistics gathered from all regions indicated that the total number of prepaid meters deployed was 502 858 and at the time of audit on May 20 2016 the failed meter quantity stood at 10 426, which was well above the acceptable failure quantity of 1 508. According to project management, all prepaid meter types supplied by contractors had exhibited a high failure rate above 1 percent instead of 0,3 which was the acceptable failure rate.</blockquote>
More: <a href="http://www.chronicle.co.zw/zesa-imports-11-000-faulty-meters/">Chronicle</a>

ZESA In Prepaid Meter Scandal

Mildred Chiri’s term as Zimbabwe’s Auditor General has been extended after Parliament approved President Emmerson Mnangagwa’s nomination. Chiri is known for revealing corruption by ministers and parastatals.
Finance Minister said Chiri’s term has been extended with effect from 25 February 2017. Chiri’s new term is expected to last for 6 years. Said Chinamasa:
<blockquote>The reappointment will be carried out by the President in terms of section  340(1) of the constitution and MPs are already familiar with the sterling work she has carried out. She has managed to table audited financial statements of ministries and State enterprises before Parliament on time to the extent that reports of 2016 that were supposed to be tabled in Parliament by June 30 were tabled by June 1 beating the June 30 deadline.</blockquote>
Mugabe dismissed Chiri in September last year in July but had to reverse the decision after Members of Parliament across the political divide opposed his plan to replace her with Mike Ndudzo.
More: <a href="http://source.co.zw/2018/01/zimbabwes-mnangagwa-extends-graft-fighter-chiris-term-as-ag/">Source</a>

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