4.3.3.1 The Committee recommends that all payments for equity and lending must, with immediate effect, be made through the system and line Ministries should be advised of payments done through IDBZ to enable them to record such loans.
4.3.3.2 Ministry of Finance should speed up the process of compiling a new consolidated register for public financial assets and ensures that it’s available by the end of 2016 and going forward, ensures that reconciliation by line Ministries are timeously carried out.
4.3.4 Net Variances of $324 670 068 between the balances reflected on the returns from line Ministries and those from Treasury rendering Statement on Public Financial Assets unreliable
There were variances between the balances reflected on the returns from Line Ministries and those from Treasury. The balances as per line Ministries was $619 666 596 against $294 996 528 on the Treasury return, resulting in a net difference of $324 670 068. In some instances the Ministry of Finance and Economic Development made direct payments to State Enterprises and documents pertaining to such transactions were not availed to line Ministries, resulting in differences between Treasury balances and those of line Ministries.
Consequently, line Ministries’ Appropriation Account expenditure figures on lending and equity totaled $62 308 950 whereas Treasury had total expenditure on lending and equity of $93 996 024. This resulted in a variance of $31 687 074.The Accountant General attributed the variance to NDF debtors that were erroneously included in the return ($43 764 888). There were further differences in equity valuations of $30 039 171; capital transfers of $231 051 316 and previous period adjustment of $19 814 693. The Audit Office would however verify the balances which were said to have caused the variances in the next audit.
4.3.4.1 Ministry of Finance should instruct line Ministries to ensure that all State Enterprises provide up to date returns to their parent Ministries by 31st January, 2017.
4.3.5 National Railways of Zimbabwe loans worth$5 025 000 written off without supporting documentation
An adjustment of $5 025 000 against loans issued to National Railways of Zimbabwe was not supported by documentary evidence. There is risk that loans may be written-off without authority thereby prejudicing public resources. The Accountant General informed the Committee that the loan was not written off, but was transferred to National Development Fund (NDF) and as such, NDF had records pertaining to the loan in question. Again the Audit Office would verify the evidence during the audit of NDF.
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