adminA draft report for the year 2010 exposed serious irregularities that could lead to Zinara losing a substantial amount of money.
The report revealed that Zinara exceeded its expenditure by 5,5 percent while three vehicles were not accounted for.
Zinara, according to the Roads Act, should use 2,5 percent of the total collections to the Road Fund for administration expenses.
Officials from Zinara however said they overshot the budget since the money allocated through the law was insufficient to sustain operations.
Zinara argued that it had only seven employees when the regulations were set but it now employs close to 50 workers.
The draft report showed that Zinara used 8 percent of its total collections.
“I observed that the administration’s expenditure was 8 percent of the total collections to the road fund contrary to the 2, 5 percent gazetted in terms of Section15 (d) of the Roads Act Chapter 13:18,” reads part of the report.
The Auditor General noted that non-compliance with Statutory provisions without prior written authority from the Minister of Transport, Communications and Infrastructural Development might result in the entity failing to fulfill its set mandate in accordance with the Act.
The report also noted that Zinara cannot account for three vehicles including a Toyota Prado used by the former chief executive, a Mazda B2500 double cab and a Toyota Corolla.
The report also notes that a set of leather sofas that was bought by Zinara in 2007 was not accounted for during the time of the audit.
Zinara has also failed to account for $10 000 used by its chief executive officer Mr Frank Chitukutuku during a trip.
There were also no supporting vouchers for another $4 000 that was used during a cocktail hosted by the Ministry of Transport, Communications and Infrastructural Development.
It is further reported that all paid expenditure vouchers for 2010 were not being stamped “paid” raising high risk of double payment.
It is also noted that Zinara lacked a vibrant internal audit system to audit agents that collected money on its behalf such as Zimpost, the Vehicle Inspection Department and the Zimbabwe Revenue Authority among others.
It noted that lack of such an audit system might result in under remittances, fraud and errors.
Contacted for comment, Zinara spokesperson Mr Augustine Moyo said the draft audit was not final.
He said the final report should be signed by the Zinara chief executive officer.
“There is a difference between a draft audit report and a final audit report. If that report you are in possession of was not signed by our chief executive officer Mr Frank Chitukutuku then it is not the actual final report that we are aware of.
“Further to that, the final report does not have the number of irregularities that you are referring to,” he said.
Mr Moyo added: “There are no vehicles missing. That is rather malicious and scandalous to say such.”
He said the Toyota Prado was still at their offices and being used as a pool car.
“It was used by the former chief executive officer and there are updated records to its existence. The Mazda B2500 double cab you are referring to is available and is also a pool car that is being used at our Zinara Bulawayo office.
“The Toyota Corolla you are referring to was a pool car and was involved in an accident and was actually a write-off. We got replacement value from the insurer and we topped up and bought a better vehicle which was not a Corolla.”
He said Zinara’s asset register was up to date and records for the vehicles were available at the transport department.
Mr Moyo said Zinara’s audit system was vibrant.
Zinara collects money for Government’s roads pool and distributes it to councils and the District Development Fund for roads maintenance.
Online Reporter