Source: Shock ghost payroll for Zimra bosses | The Herald December 6, 2016
Lloyd Gumbo Senior Reporter—
Chartered accountants who audited Zimbabwe Revenue Authority (Zimra) accounts have raised a red flag on salaries that appeared in suspended executives’ bank accounts, but did not appear on the revenue collector’s payroll.The Auditor-General’s Office appointed HLB Zimbabwe Chartered Accountants earlier this year to conduct a forensic audit on Zimra.
This was after it emerged that management was illegally importing vehicles.
According to the auditors, the executives received various amounts of money between 2014 and this year.
Bank statements obtained by the auditors indicated that suspended Commissioner-General Mr Gershem Pasi received about $122 000 between January 2014 and June 2016.
Other members of the executive received between $3 000 and $11 000.
“We scrutinised the bank statements and the payrolls for the executives covering 29 months, ended 31 May 2016,” said the auditors.
“We noted significant anomalies with regards to salaries processed through the respective accounts for directors but not appearing on Zimra payrolls.
“We could not determine whether the suspicious and unusual deposits into their bank accounts were proceeds of crime arising from corrupt activities or acts of money laundering or anything else.
“We enquired with the human resources regarding the source of the above amounts and they confirmed that these transfers did not originate from their department.”
The auditors raised concern with the internal audit function regarding management payroll where it emerged that the payroll for management was not subjected to internal audits.
“We interviewed the Chief Internal Auditor of Zimra on the 9th of September 2016, to understand the role that the internal audit function has played in monitoring and overseeing the internal controls and risk management systems around the management payroll of the authority.
“We established that the payroll for management was confidential and never audited by the internal audit function of Zimra. This implies that any anomalies in the payroll function are not detected and corrected timeously.
“We recommend that internal audit be given unrestricted access to all departments within Zimra. The director in charge of audit function should be disciplined for failing to discharge his mandate in this area of the authority’s operations,” reads the audit report.
COMMENTS
It only demonstrate how audits are useless.
They can only discover that which has been reported. The question really is who should be responsible for monitoring/implementing the internal audits i.e. systems. Is it the CEO, or the Directors or there has to be an audit department. In my view the presence of the audit/risk departments actually enhances departure from adherence to systems.
The other question is when or at what stage of growth should an organisation have an audit department, how worthy is the audit department.
A good example of this is the way government departments used to be operated without the audit departments. Government institutions only started to fail to adhere to systems when ministers became CEOs of ministries and departments.
Its good to have the risk/audit department for employment creation.
The “shock” would be if this was not happening. This is straight forward ZANU management expertise in action