THE TEMPORARY SPEAKER: May the Hon. Member be heard in silence! You are protected.
HON. MPARIWA: Shamva – Bindura $58 965, Harare – Gweru $54 473, Makuti reseal unit $45 027 and Manyame Bridge $41 790. These expenditures were then reported under Harare – Mutare project thereby overstating the expenditure on the project whilst understating expenditure on various other projects.
There is no doubt that such an environment is conducive for fraudulent activities since payments cannot be verified in the absence of supporting documentation and value of projects may be distorted through misstating of expenditures. Without following proper budgetary processes, State funds may be directed at unintended purposes resulting in missing national priorities.
The Permanent Secretary conceded to the audit observations. He indicated that supporting documentation for the unvouched expenditure could not be availed during the audit period as they were in the provinces. He blamed the manual recoding system obtaining in the provinces. The Ministry indicated that some vouchers were collected from the provinces and the amount had been reduced to $400 000. The Permanent Secretary made a commitment that he would avail the outstanding documentation during the entrance meetings of the 2016 audits. In relation to funds diverted from the Harare – Mutare road project, he pointed out that the transfer of funds to other projects was in response to litigations instigated by the contractors. He acknowledged the need to seek Treasury concurrence in future.
The Committee noted with concern the reluctance by the Permanent Secretary to follow proper procedures by unilaterally moving funds from one project to another without securing Treasury approval.
4.1.1.1 The Committee recommends that the Civil Service Commission, the appointing authority, should by 31stAugust, 2017, issue a stern warning against Mr Munodawafa, the then Permanent Secretary for the Ministry, for failing to seek Treasury approval for moving funds on projects approved by Parliament and disguising expenditure under different projects.
4.1.1.2 The Ministry should avail vouchers for the outstanding amount of $400 000 by 31stAugust, 2017.
4.1.2 Unreconciled figures for the Receipts and Disbursement Return and the PFMS figure, 2014
The Receipts and Disbursement return showed an amount of $20 091 146 and the PFMS showed a figure of $21 284 987 resulting in a variance of $1 193 840. The Ministry did not carry out reconciliations to establish the source and composition of the variance. The then Permanent Secretary indicated that reconciliations were lagging behind resulting in the variance. He advised the Committee that the reconciliations for 2014 were completed and the figures were reconciled.
With such weak internal controls relating to revenue management, there is a risk of losing State revenue as some receipts could not be accounted for. The Committee noted with concern the lack of supervision by Management in the Ministry in respect of reconciliations that must be carried out on a monthly basis. Reconciliations submitted had no supporting documentation.
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