32 Parastatals Fail To Submit Financial Statements To Auditor General In 10 Years

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By Anna Chibamu

AT LEAST 32 parastatals and State Owned Enterprises (SOEs) have failed to submit their financial statements to the Auditor General Mildred Chiri for auditing purposes in 10 years, Parliament’s Public Accounts chairperson Tendai Biti has revealed.

During a Parliamentary committee hearing of parastatals last week, Biti said the 32 parastatals had been identified by the AG for not having submitted audit reports for years ranging from 2009 up to 2019.

Out of the 32 only seven gave reasons on the failure to comply with the law.

These included, the Zimbabwe Broadcasting Corporation (ZBC), Air Zimbabwe, Zimbabwe Anti-Corruption Commission (ZACC), Zimbabwe Mining Development Corporation (ZMDC), National Handling Services (NHS), the Zimbabwe Youth Council (ZYC) and Allied Health Practitioners Council of Zimbabwe (AHPCZ).

Although reasons differed on non-compliance, most of them pointed out that their statements were up to date but they were not signed off.

Air Zimbabwe Acting Chief Executive Officer (CEO) Joseph Makonese attributed the failure to submit annual financial statements to a shutdown of the airliner from 2009 to 2011 and a high staff turnover that had resulted in work backlog on the financial statements.

“For one and a half years, operations were grounded and a forensic audit by KPMG took two years and these reasons contributed to delays in coming up with an audit report for the company. We promise that by December 2020, our accounts should be in order,” Makonese told the committee.

The AG’s audit report for 2018 exposed massive misappropriation of funds by parastatals which included, the Zimbabwe Roads Administration (ZINARA) and Zimbabwe Electricity Supply Authority (ZESA) among others.