The Permanent Secretary admitted that the Ministry erred in diverting Fund monies to Air Zimbabwe without Treasury approval and offered an apology for its action. He confirmed that loan documents for all the amounts observed were in place. The Committee questioned the possibility of Air Zimbabwe paying back the loans, considering its current dire state.
4.5.4.1The Committee recommends that the Ministry approach the Treasury and work out the modalities for takeover of the debt for Air Zimbabwe by Treasury by 30 September, 2017. Going forward the Ministry should desist from diverting Fund revenue without Treasury approval.
4.5.4.2 The Treasury should assess and advise by 31st December, 2017 whether there is need for the Ministry to still retain the current percentage of the Fund revenue in view of the amounts, hovering around $23 million that have been extended to Air Zimbabwe though over a period of time.
4.5.5 Payment vouchers amounting to $555 572 not supported by invoices, 2013
The Audit observed that the Fund paid a total amount of US$555 572, that had no supporting invoices. The figure relates to cash withdrawals amounting to $88 593 that were made without the Chief Accountant’s approval and supporting payment vouchers; payment of wages and salaries totalling $174 517again without supporting documents and a further payment of $292 462 made on behalf of the Ministry Head Office still without supporting documents. Thus the auditors could not ascertain whether the payments were a proper charge against the Fund.
The Permanent Secretary defended the payment made on behalf of the Ministry on the basis that the Fund had no dedicated staff to run the Ministry and for him there was nothing wrong in utilising the Fund for administrative purposes. On the basis of the arguments advanced by the Ministry, the Fund was being used to augment resources appropriated to the Ministry, which is not the intention in terms of its Constitution. Regarding the missing vouchers, the Permanent Secretary indicated that they were available.
4.5.5.1 The Committee recommends that the Ministry should submit to Parliament all the supporting documentation relating to the $555 572 by 31st August 2017.
4.5.5.2 Treasury must review and advise by 31st December, 2017 on the need for the Ministry to continue to retain funds under the Fund, considering that it is now being used to fund expenditure ordinarily funded by appropriated funds.
4.5.6 Acquisition of Assets outside the approved budget, 2013
The Audit observed that the Fund purchased assets worth $302 960 which were not budgeted for. The assets were shredders, printers, scales and filing cabinets. However, seven scales valued at $9 429, have been lying idle ever since they were purchased. This resulted in wasteful expenditure.
Continued next page
(264 VIEWS)
