4.6.2 Investments worth $18 068 044 in Interfin Bank currently under curatorship
The financial statements had an amount of $18 068 044 that was invested with Interfin bank meant for Zimbabwe Economic and trade Revival Fund (ZETREF). The bank was placed under curatorship and later, it was recommended for liquidation. The Fund did not submit a claim to the liquidator in respect of this investment to ensure that the Fund received some residual payments as the investment was not secured.
There is risk of loss of the whole investment as it was not secured and a claim was not lodged with the liquidator. The Accountant General in his response pointed out that the claim was lodged with the liquidator on June 4, 2015 after notification from the liquidator. NDF is expected to receive up to $2 million as resolved from the creditors’ meeting held by the liquidator.
The Committee expressed concern on whether due diligence was done by Government before such investment decisions were made. Furthermore, though the collapsing of the bank was linked to some criminal activities by the Bank managers, it was disheartening to note that no prosecutions were effected in that regard and no attempt was made to recover public funds from individual mangers implicated in the matter.
4.6.3 Failure to reconcile funds invested in CABS worth $11 098 575 with the Bank figure reflected on the investment certificate
The financial statement had an investment with CABS amounting to $11 098 575 while an investment certificate from the bank disclosed an investment of $10 717 500 giving a variance of $381 074. The implication of this finding is that financial statements may be misstated hence leading to wrong decisions being made on the basis of the figures. The Accountant General informed the Committee that the Fund had two investments of $10 million and $339 293 for which two separate deal notes were issued. The Bank only confirmed to the auditors the $10 million investment. The Ministry has communicated with the bank to interlink the investments portfolios. The Audit would verify the evidence during the next audit.
4.6.4 Non- Recovery of outstanding project loans
Out of a total of $70 460 000 loaned out to various institutions through the IDBZ Bank since year 2010, only an amount of $21 628 420 had been repaid at the time of audit. The Accountant General advised that the entities will require major policy reforms aimed at improving their income generating capacity. Notably, NRZ got $5 million, Civil Aviation Authority of Zimbabwe $18,1 million; ZINWA $7million and Registrar General’s Office $3,5 million and had not made a single contribution towards repayment. ZINARA got $10, 3 million and had paid back $1, 7 million. Going forward, every entity benefiting from the fiscus will be required to set up a sinking fund with clear indications on repayments.
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