SRC on Zifa forensic audit

Ricky Zililo, Senior Sports Reporter

THE Sports and Recreation Commission (SRC) has confirmed that a forensic audit has revealed that significant sums of money received by Zifa between December 1, 2018 and November 30, 2021 cannot be accounted for.

Chronicle Sport yesterday reported that a draft forensic audit into Zifa’s financial records has revealed monetary leakages amounting to almost US$2 million and ZW$112 million.

BDO Zimbabwe Chartered Accountants, acting on the instruction of the Zifa restructuring committee submitted the draft forensic audit report after concluding a five-month long investigation at the end of September.

The SRC confirmed that BDO Zimbabwe Chartered Accountants made separate presentations of their findings to the country’s supreme sports mother body as well as the Zifa restructuring committee.

Responding to enquiries about the authenticity of the draft forensic audit report, SRC board chairman Gerald Mlotshwa said the official report should be out before the Zifa extraordinary general meeting set for Harare on October 29.

“SRC’s wishes to advise the public that auditors contracted for the undertaking made separate presentations to the Restructuring Committee as well as the Commission of their detailed preliminary findings in respect of the financial affairs of ZIFA.

“There are certainly very significant sums of money received by ZIFA that cannot be accounted for during the review period of 1st December, 2018 to 30th November, 2022.

“The auditors have not signed off the forensic audit report. They will do so shortly.

“The ZIFA Audit report, once formally and procedurally presented to the restructuring committee that commissioned it, is ultimately intended for the benefit of the members of ZIFA to consider during their general meeting slated for the end of October, 2022.

“Accordingly, we advise stakeholders and the public alike to exercise reasonable caution in drawing any conclusions at this point based on an unofficial document,” Mlotshwa said.

The unsigned draft report was shared amongst Zifa board members last Friday to allow them to study it before their scheduled meeting next week.

Part of the irregularities picked up according to the circulating report is the grant of US$182 700 that Zifa received on December 20, 2018 and was omitted from the association’s books of accounts for 2018. The grant was deposited into a Fifa designated Ecobank account number 0181197610292101, which had been opened on the same day.

Four days after Fifa made that deposit, US$50 000 was transferred from the new bank account into the ZIFA General account number 00110976102921026 and accounted for as sponsorship income on posting to the ledger.

There were also three cash withdrawals of US$10 000 each made by the Zifa chief executive officer Joseph Mamutse, from the Ecobank account on 21, 24 and 28 December in 2018. The cash withdrawals could not be traced to the accounting records of Zifa and no supporting documents were available to show how the funds were utilised.

The remaining bank balance of US$102 319.97, after deducting US$50 000, US$30 000 and bank charges of US$380.03 was reported as grant income in the 2019 financial statements. — @ZililoR