adminZvamaida Murwira Herald Reporter
CMED (Private) Limited has been caught up in a loan scam in which it failed to deduct money extended to employees, while it is also accused of buying equipment from individuals and not from reputable firms.
In her 2012 report, Comptroller and Auditor-General Ms Mildred Chiri said she had established that at the time of her audit, deductions of loans had not been done eight months after employees received the money.
“I observed that loan repayment for loans issued to employees were not deducted from their salaries at least eight months after they were granted and there was also no evidence to confirm that these employees repaid their loans in cash,” Ms Chiri said.
She said this was in contravention of the personal loans policy which states that a loan should be repaid by salary deductions for a period stipulated in the application form. The Auditor-General’s report did not state how many employees were involved and how much had been borrowed.
It was also noted that payments for equipment were made to individual accounts instead of firms.
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