30 un­der-per­form­ing paras­tatals re­sist au­dit

Chronicle (Zimbabwe) - - National News - Harare Bureau

AT least 30 paras­tatals and State en­ter­prises were not au­dited last year for var­i­ous rea­sons which will be re­vealed by Ac­coun­tan­tGen­eral Mr Daniel Muchemwa when he ta­bles a com­pre­hen­sive re­port be­fore Par­lia­ment next week.

The com­pre­hen­sive re­port will show that there have been un­der-per­form­ing en­ti­ties which have be­come a drain on the fis­cus. Six other paras­tatals were noted for se­ri­ous man­age­ment flaws. Mr Muchemwa said this dur­ing a half-day work­shop to dis­cuss the Pub­lic En­ti­ties and Cor­po­rate Gover­nance Bill with chair­per­sons of Par­lia­ment’s port­fo­lio and the­matic com­mit­tees yes­ter­day.

“If I turn to gover­nance, the au­di­tor-gen­eral iden­ti­fied three paras­tatals where she put a non-dis­claimer, the au­di­tor gen­eral says we don’t know where th­ese peo­ple are,” he said. “I don’t think they know where they are go­ing.

“She had ad­verse re­ports on an­other three, those are se­ri­ous ob­ser­va­tions she made about fail­ure. She did not qual­ify 62 of out of 108 State en­ter­prises and paras­tatals. She qual­i­fied 10. In 10 of them, she found spe­cific is­sues that she wanted ad­dressed.

“She au­dited 78 of our 108 State en­ter­prises and paras­tatals. Which means there are 30 oth­ers that are not even in the dis­claimer range.“That is a wor­ry­ing state of af­fairs when you have a large num­ber of in­sti­tu­tions that are not ac­count­able to Par­lia­ment and, there­fore, to the peo­ple of Zim­babwe. I think those are se­ri­ous gover­nance is­sues.”

Asked by Chegutu West rep­re­sen­ta­tive Cde Dex­ter Nduna, the chair­per­son of the port­fo­lio com­mit­tee on Trans­port and In­fras­truc­ture De­vel­op­ment to iden­tify the con­cerned en­ti­ties, Mr Muchemwa said he would present a de­tailed re­port to Par­lia­ment next week. “Within seven work­ing days, I am to sub­mit a name and shame re­port to the House on the var­i­ous is­sues high­lighted (by the au­di­tor-gen­eral Mrs Mil­dred Chiri),” he said.

Mr Muchemwa said there was lit­tle su­per­vi­sion on how much rev­enue was be­ing gen­er­ated by paras­tatals and State en­ter­prises, re­sult­ing in leak­ages.

“On rev­enue col­lec­tion, man­age­ment and debt re­cov­ery, we are not do­ing well as busi­nesses and rev­enue col­lec­tion is one of those ar­eas where con­trol is not ad­e­quate, temp­ta­tion is high and, there­fore, the po­ten­tial for losses is even higher,” said Mr Muchemwa.

He said ex­am­ples in­clude NetOne where $11 mil­lion was lost to re­lated par­ties that in­clude man­age­ment and com­pa­nies they owned, while at Zim­babwe Elec­tric­ity Trans­mis­sion and Distri­bu­tion Com­pany, a num­ber of prop­er­ties were iden­ti­fied that were not billed since 1984.

At the Zim­babwe Rev­enue Author­ity, Mrs Chiri iden­ti­fied 29 000 tem­po­rary im­port per­mits that had not been cleared, with a po­ten­tial duty of $42 mil­lion, while at the Zim­babwe Na­tional Parks and Wildlife Man­age­ment Author­ity, there was mis­man­age­ment of leases, with an ex­am­ple of one con­ces­sion from which $1 mil­lion was ex­pected, but ul­ti­mately the author­ity re­ceived $600 000.

The Pub­lic En­ti­ties and Cor­po­rate Gover­nance Bill that is ex­pected to be de­bated in Par­lia­ment soon, will bring a raft of changes to man­age­ment of such en­ti­ties in­clud­ing term lim­its for boards and man­age­ment, a code of con­duct, salary lim­its and obli­ga­tions to craft or­gan­i­sa­tional strate­gies.

Speak­ing at a meet­ing with cap­tains of in­dus­try at State House in Harare last week, President Mu­gabe said non-per­form­ing paras­tatals and State en­ter­prises should be dis­solved as they are sti­fling eco­nomic growth through peren­nial de­pen­dence on the fis­cus.

Jus­tice Rita Maka­rau

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