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Zvamaida Murwira Senior Reporter
Mines and Mining Development Ministry officials unprocedurally authorised travel and subsistence allowances amounting to US$320 000 from the Mining Development Fund for senior employees. According to Comptroller and Auditor-General Ms Mildred Chisi’s 2012 report released recently, it was observed that the ministry borrowed US$318 994 from the fund despite Treasury not yet having drawn a constitution governing its operations in terms of the Public Finance Management Act.
“Therefore, the borrowings were unconstitutional and in breach of the Mines and Mining Development Fund constitution whose core objective, amongst others, is to support and sustain the mining titles system,” she said.
“However, a total of US$108 283 had been reimbursed to the fund by the end of the year, leaving US$210 711 still outstanding.”
Ms Chiri said as a result, the expenditure of US$4 713 738 appearing in the appropriation account was understated by an amount of US$210 711.
“The implication is that there is risk of undermining the Government budgeting process if funds are borrowed unprocedurally and it promotes financial indiscipline,” she said.
The audit also showed that two receipt books with 200 pages were not available for audit.
The receipt books had been signed for by the ministry’s chief accountant when ordered from Printflow, but there was no evidence that they reached the ministry or that they were used for official purposes.
“Therefore, the books could have been obtained and used clandestinely,” said Ms Chiri. “There is risk that the receipt books could have been used for fraudulent activities with the intention to defraud the public in general and the miners in particular,” she said.
The audit also revealed that officials were being paid cellphone allowances in excess of their prescribed limits set by Treasury through Circular Number 1 of 2010.
“The practice continued unabated in the year under review and the total excess payments were US$3 633 for the months of December 2010 up to November 2011 resulting in a cumulative excess payment of US$17 771. There was no evidence availed to audit that excess payments were recovered from the respective officials in the year 2011.”
Online Reporter