4.6.7 Outstanding Farmers’ World debt
Government of Zimbabwe assumed a Farmers’ World debt amounting to $1 142 407 (including Interest) which resulted from a payment of $970 000 loan borrowed from the China Exim Bank in March 2010. The Reserve Bank of Zimbabwe, the original guarantor, was unable to repay the debt. It was alleged that the Government later assumed the guarantor status. This was also another loan to Farmers World apart from the $23 million reported earlier on. The debt was again in respect of agricultural machinery, equipment and implements that were imported from China by Farmers’ World Company. The Ministry did not avail guarantor letters for audit examination and the debt was not included in the list of contingent liabilities.
There is risk that the Fund may fail to recover money paid on behalf of beneficiaries of agricultural machinery, equipment and implements from either Farmers’ World or beneficiaries. In his response the Accountant General advised the Committee that the National Development Fund has handed over the debt to the Attorney General’s department for legal advice.
4.6.7.1 The Committee recommends that government should with immediate effect, institute recoveries of the debt from either Farmers’ World or the beneficiaries of the agricultural machinery.
4.7 SENIOR OFFICERS HOUSING FUND 2014
4.7.1 Operating the Fund without Accounting Officer’s Instructions and Administrative Procedure Manual
The Fund was operating without the Accounting Officer’s Instructions and administrative procedures manual. The absence of the manual makes it difficult to effectively administer the Fund and to implement controls that protect the resources of the Fund. The Accountant General advised the Committee that the Senior Officers Housing Fund Accounting Officer’s Instructions for the fund had since been signed and was now in place. The evidence would be verified in the next audit.
4.7.2 Variances of $248 960 between the opening balance of the accumulated Fund and the prior year’s closing balance
The opening Accumulated Fund figure of $8 825 343 disclosed in the financial statement differed from audited closing balances of $8 576 383. This resulted in a variance of $248 960 that was not supported by documentary evidence. The Accountant General informed the Committee that the excel spread sheet were not up to date creating differences in the closing and opening balances. The Ministry has managed to post the entire monthly recoveries to individual debtors’ ledger accounts. Again, the evidence would be verified in the next audit.
4.7.3 Revenue Recovery and Collection: Senior officers received loans in excess of the $20 000 limit stipulated in the Inter Ministerial Guideline
Seven senior officers received loans in excess of the maximum loan limit of $20 000 per disbursement as stipulated in the Inter Ministerial Guidelines for the Senior Officers’ Housing Scheme (section 2.3). The excess payments totaled $120 000. Failure to observe the loan limit set in the Ministerial guidelines may result in unfair distribution of resources. Other senior officers may be deprived of the funding as resources will be limited. The Accountant General assured the Committee that there was now adherence to the limit as specified in the Accounting Officers Instructions.
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