Furthermore, the financial statements disclosed a suspense account with a balance of $33 840 which remained uncleared at the time of concluding the audit. As a result, the audit was not able to establish whether the financial statements were free from material misstatements. In such circumstances, fraudulent activities cannot be ruled out.
The Ministry indicated that it did not have personnel with accounting skills at the regional offices, and as a result, it relied on assistant clerks who in some cases recorded debtors incorrectly and they had to redo all the accounts for the years. The Committee is pleased to note that accounting records were now in place. However, the suspense account remained unresolved.
4.3.1.1 The Committee recommends that the Ministry investigate and clear the suspense account by December, 31, 2016.
4.3.2 Procurement – Goods and Services not delivered
Since 2012, the Auditor General has from year to year raised concern over delays by the Fund in receiving goods and services from suppliers who would have been paid substantial amounts of money as deposits. There was no evidence that Fund officials followed up on outstanding orders. Applied Weighing Scales failed to meet delivery, installation and commission dates of four (4) weigh bridges in Harare, Gweru, Mutare and Masvingo at a total cost of $496 340. The work was supposed to have been completed by September 30, 2014. As at September 14, 2015, the weigh bridges had not been delivered despite the fact that a deposit of $312 694 was paid in March 2013.
The Ministry admitted with regret that a considerable amount was paid to the contractor without a Bank guarantee and that no deliveries were made to date. Efforts to follow up on the deliveries with the contractor were fruitless. The Ministry did not satisfactorily explain why public funds of such magnitude were committed without adequate security. The Ministry indicated that it handed over the issue to the Attorney General’s Civil Division for legal action in order to recover the deposit with interest thereof.
The Committee noted with concern that no due diligence was done in the procurement process hence a case of potential loss of public funds.
4.3.2.1 The Committee recommends that disciplinary action be instituted against officials who handled the transaction by December, 31, 2016. It also recommends that the Ministry should institute criminal proceedings against the Applied Weighing Scale Company for fleecing Government resources by 31 December, 2016.
4.3.3 Absence of Accounting Officer’s Instructions
The Audit observed that the Fund was operating without Accounting Officer’s Instructions contrary to the provisions of Treasury Instructions 0706 which stipulates that the Accounting Officer should issue detailed instructions governing the conduct of financial business and control of public monies and property for which they are responsible. The Ministry indicated that it had finalised the draft Accounting Officer’s Manual and has since forwarded it to Treasury for approval. The Committee noted that the Ministry had taken corrective action and the observation has therefore, been addressed.
Continued next page
(292 VIEWS)
