Govt moves to stem rot in parastatals

Source: Govt moves to stem rot in parastatals – NewsDay Zimbabwe April 26, 2016

FINANCE minister Patrick Chinamasa said he is intensifying efforts to put units in his office to act upon the auditor-general’s reports, as government moves to stem the rot in State-owned entities and parastatals.

BY FIDELITY MHLANGA

Chinamasa’s remarks came after government has consistently failed to act on reports by the auditor-general’s office highlighting abuse of funds by State-owned enterprises and government departments.

Speaking at the two-day Public Accountancy and Auditor’s Board (Paab) conference last week, Chinamasa said the honeymoon was over for those who abuse public funds, as a unit would be put in place to act on reports by the auditor-general.

“Corrective measures are currently being implemented, dedicated units from the office of the auditor-general will be created in my office, that will firstly analyse financial statements of all public sector institutions, that is parastatals and local authorities to follow up all audit findings with a view to take corrective action,” Chinamasa said on Friday.

Parastatals have become a breeding ground for corruption and misuse of resources. They have consistently failed to produce audited accounts despite getting financing from Treasury.

In his 2016 national budget, Chinamasa said government “has made significant strides to amend the Public Finance Management Act and Office of the Auditor-General with a view to strengthening Treasury oversight of parastatals and local authorities”.

He said government would continue strengthening the Public Finance Management by reviewing its Public Finance Management Act 2010, which governs external borrowing in the country.

Chinamasa bemoaned the disappearance of low level class of accounting technicians (bookkeepers) saying the gap was being felt in the country.

With the economy increasingly transforming to the informal, Chinamasa said there was need for this class of accountants to service the sector.

He said his ministry would work with Paab to find ways to enhance financial literacy in Zimbabwe.

Chinamasa bemoaned the high cost of auditor’s fees saying they contributed to the high cost of doing business, which government was currently fighting to reduce.

“On professional fees, high and unsustainable fees will make it difficult for the market to use your services. I am, therefore, urging you to relook at your fees. The idea of these charges, which I personally feel they are out of reach for many would be clients,” he said.

The conference which was held under the theme Partner, Collaborate and Grow coincided with Paab’s 20th anniversary.

The indaba discussed various issues promoting public finance accountability, good corporate governance and anti-corruption as key to economic revival.

COMMENTS

WORDPRESS: 4
  • comment-avatar

    Oooh; what a shame! Is Patrick telling now that these zanu pf functionaries and appointees who have been bleeding the nation left right and centre for past 36 years have been doing so because relevant units and/or structures have not been available in the country? So, what’s the role of the police, the anti-corruption commission, and a myriad of all other zanu pf created sinecure bodies and/or structures?

    Again, and not so long ago, another zanu pf thief by the name of Gideon Gono did the same when he created a whole government structure within RBZ. Proclaiming that he wanted to fight zanu pf corruption. The next thing, we saw him dishing out national resources like some mad father xmas to relatives, friends and concubines way from the watchful eye of any other entity. It’s clear Patrick wants to imitate the same and fill-up his pockets before zanu pf looses the next election.

  • comment-avatar
    Tsotsi 5 years ago

    ZANU PF has not won an election in some time. Stolen would be more accurate.

  • comment-avatar
    Barry 5 years ago

    Use National Parks as an example. It should be making money but it is broke. So of course Patrick will tell us that it is National Parks’ fault. But calling it an “authority” and a parastatal is a sham because it is wholly government-owned. So it is government’s fault, and where is the money going Patrick?

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    Mukanya 5 years ago

    Cry my Beloved Country!!! Bolting the doors when the asses have gone.