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Business Reporter
A FORENSIC audit at the National Railways of Zimbabwe (NRZ), which is presently underway, is expected to be complete by mid-month, an official said yesterday.
The forensic audit was one of the fundamentals that NRZ board chairman Mr Larry Mavima prioritised following his appointment in March this year.
It focuses on procurement issues, real estate and property as well as human resources and staffing portfolios to examine what has been happening at the parastatal in the last five years.
Mr Mavima told Business Chronicle yesterday that the audit process was supposed to have been finished at the end of October but an independent auditor carrying out the exercise requested for extra time from the Auditor General.
“The forensic audit was supposed to have been finished at the end of October, but because of many terms of reference, the auditor has asked for extra time of about two weeks to complete the exercise. We are now expecting completion of the exercise by mid-November,” he said.
The forensic audit at NRZ was authorised by the Ministry of Transport and Infrastructural Development to determine if there are any leakages in the railways company’s procurement system, how revenue is being collected as well as determining the parastatal’s human resources and staffing.
Mr Mavima said results of the forensic audit would be announced by the Government through the Ministry of Transport and Infrastructural Development.
“Should there be any elements of criminality and dishonesty, the people involved will have to face the music,” he said.
According to the 2014 Auditor’s General report for NRZ accounts, the freight unit was generating annual revenue of $91,2 million, but incurring costs of about $103 million.
The passenger unit had annual revenue of $3,2 million with cost over three times more at $10,9 million.
It is believed that the forensic audit being carried out will give impetus to the NRZ recapitalisation initiative.
The parastatal, which has a legacy debt of about $144 million, requires about $1,9 billion in the long-term to be fully revitalised.
At present, a number of potential investors from countries such as China, India and Egypt have shown keen interest in partnering the NRZ.
It is hoped that by April next year, the Government would have announced the strategic partner for NRZ.
Online Reporter