GMB, ZimParks face uncertain future - Zimbabwe Situation

GMB, ZimParks face uncertain future

Source: GMB, ZimParks face uncertain future – DailyNews Live

Farayi Machamire      8 November 2018

HARARE – The Grain Marketing Board (GMB) and the Zimbabwe Parks and
Wildlife Management Authority (ZimParks) face an uncertain future due to
heavy losses, the Daily News can report.

An audit of State-owned enterprises by the Auditor-General (AG) revealed
that the State granary risks bankruptcy if it continues to operate in the
red.

The same applies to ZimParks.

In the case of GMB, the parastatal made a loss of $32 391 307 and had
accumulated losses amounting to $208 968 178 as at March 31, 2017.

“These circumstances indicate the existence of a material uncertainty that
may cast significant doubt about the board’s ability to continue operating
as a going concern,” said AG Mildred Chiri in her latest report for the
financial year ended December 31, 2017.

The report was tabled before Parliament by Finance minister Mthuli Ncube.

GMB was established in 1931 under the Maize Control Act in response to the
1930 world recession.

Under the Maize Control Act the major responsibility was to store, market
and control trade of maize, to ensure national food security in Zimbabwe.

It deals in cereals, oil seeds and the strategic grain reserve as well as
the input scheme on behalf of government.

Turning to ZimParks, Chiri said the authority incurred a loss after tax of
$6 million as at December 2016, adding it had a net current liability
position of $3 072 806.

“These conditions indicate the existence of material uncertainty that may
cast significant doubt about the authority’s ability to continue as a
going concern,” Chiri said.

She added that the situation was compounded by financial loss due to
unauthorised expenditure that includes board members being paid sitting
allowances at astronomical rates.

Chiri also raised the red flag over tax holiday allowances which the
authority’s directors were benefitting from.

“The authority’s directors were paid holiday allowances which were not
subjected to tax as provided for by the Income Tax Act,” Chiri said.

Chiri further noted that at least 23 parastatals are failing to adequately
and sustainably provide the services for which they were created.

She pointed out that some had made questionable financial deals that
expose them to huge losses.

ZimParks operates under an Act of Parliament, the Parks and Wildlife Act
of 1975.

It manages one of the largest estates in the country, about five million
hectares of land or 13 percent of Zimbabwe’s total land area.

Most of the parks are located in ecological regions four and five or
rugged mountainous areas which would not have much economic alternative
use.

ZimParks has a mandate to manage the entire wildlife population of
Zimbabwe, whether on private or communal lands.

Private landowners can utilise the wildlife on their land but are still
accountable to the authority for the welfare of the animals.

Power utility Zesa Holdings and its subsidiaries were among the troubled
State entities.

Also skating on thin ice is the National Railways of Zimbabwe, the
Zimbabwe Institute of Public Administration and Management, ZimPost,
Allied Timbers and the National University of Science and Technology.

COMMENTS

WORDPRESS: 1
  • comment-avatar
    Cynical 1 week ago

    Holiday allowances, educational allowances, latest 4 x 4 for Zimparks top chefs, it goes on and on. No wonder they are in the s..t.