The rot in Zimbabwe’s Ministry of Transport- Part Six

4.6.3 Payment for Construction works without supporting documentation

The Audit could not establish whether payment for construction works amounting to $182 301 which included $43 146 incurred in 2013 were a proper charge to public funds.  The payments were for hiring of equipment.  There were no payment vouchers compiled, neither were there invoices, competitive quotations and certificates of completion availed to auditors.

Auditors also reported that they failed to establish whether expenditure valued at $929 851 disclosed in the 2012 financial statements represented a fair value of projects, that were completed or under construction, in the absence of work progress certificates.  The projects undertaken at various Vehicle Inspection Depots included construction of some hill starts and office blocks.

The Ministry indicated that they have now centralised all payments done under the Fund. The Accounting Officer approves all payments to eliminate loopholes. He pointed out that construction of hill starts was under the purview of the Provincial Road Engineer and there were no certificates produced for the work. Going forward, all construction work has to be certified by the Ministry of Local Government, Public Works and National Housing.

The Committee was concerned about payments being made without supporting documents as the issue has been reported in all the four Fund Accounts.

4.6.4 Absence of supporting documentation for revenue received

The Audit could not place reliance on the revenue figure of $5 346 014 (2013: $5 158 177) disclosed in the financial statements, as the cash book was updated using entries from the bank statements, instead of using amounts from actual receipts together with related sub-collectors schedules from all depots.  As a result, there were un reconciled differences of $233 858 (2012: $251 085) between, figures shown in the financial statements and those in the ledger accounts.

The Ministry indicated that receipts are now being received on a weekly basis from the various collecting centres and reconciliations are carried out at the end of every week. It was also indicated that the difference of $233 858 had since been cleared. The Committee expressed concern that the Accounting Officer waits for audits to point out issues and the review does not seem to have a mechanism to review its systems.

4.6.4.1       The Committee recommends that the Ministry should, by 31st August 2017, avail supporting evidence to Parliament of weekly reconciliation being carried out and the differences cleared.

4.6.5 Unrecovered Travel and Subsistence Advances

The Audit noted that Travelling and Substance Advances issued to staff members were not being acquitted within the stipulated period of 30 days as required by Treasury Instruction 1505.  This resulted in an increase in 2014 of outstanding advances by 94% to $352 081from $181 357 in 2013.  The Fund did not put in place mechanisms to recover outstanding advances.

The Permanent Secretary admitted that his officials were not doing their work as expected, resulting in one of the officials being discharged from the service for this and other misdemeanours. He advised the Committee that the figure has gone down to $93 960.

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