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Peter Matambanadzo Senior Reporter
The Zimbabwe Institute of Management was allegedly prejudiced of more than US$137 000 in irregular transactions and unsanctioned loans; and P92 770 in examination fees collected but not remitted to the organisation, a forensic audit report reveals. The audit report by BCA Forensic Audit Services dated December 23, 2013 also shows the poor performance of the institute’s management resulting in a loss of US$213 900.
The audit largely blames the top management and the institute’s council for nepotism, irregular transactions and fraud.
According to the audit, US$57 000 was paid to Rufaro Marketing as rent for an office block that the institute never used in nine months.
The decision to lease the premises was made by the institute’s chief executive, Mr Rodreck Kadungure, and finance and administration manager Mr Norman Hadzirabwi, says the report.
ZIM council president Mr Chasmell Sibanda and registrar, and LMDC manager Mr Brian Janda are implicated in fraud involving P77 000 after they travelled to Botswana to perform shop floor functions in June last year.
The report says they collected examination fees from colleges and students in Botswana but failed to account for them.
The report said the two claimed to have lost the money to robbers who broke into their car.
Mr Janda, who is responsible for registration of colleges and students in Botswana, stands accused of negligence in executing his duties and defrauding the institute of a further P8 950.
“Mr Janda invoiced 15 students and 64 subjects for the UEL College with a value of BWP18 490 instead of 24 students and 102 subjects valued at BWP27 440 resulting in financial prejudice of BWP8 950,” the audit report says.
The audit exposes how the institute was prejudiced of US$80 000 in unsanctioned housing loans.
The beneficiaries of the loans are Mr Kadungure (US$18 750), Mr Janda (US$17 293), Mr Hadzirabwi (US$17 293), marketing and membership manager Ms Viola Musariri (US$14 406), and regional manager Ms Felistus Sakone (US$11 906).
“The managers did not apply for the housing revolving funds and they did not even provide security for the loans thus exposing the institute to potential loss,” says the audit report.
The five managers are also accused of unprocedurally awarding themselves bonuses amounting to US$22 921.
The audit reveals that the institute suspended finance committee chairman Mr Lovemore Matsika’s record of fraud and dismissal by Standard Chartered Bank, where he was a branch manager.
Mr Matsika is accused of convening 10 meetings within a period of five months in which he claimed US$1 500 in allowances in contravention of policy, which stipulates that meetings be done quarterly.
He is accused of defrauding ZIM of US$1 110 as a result of a payment made by the institute for him to attend the Zimbabwe National Chamber of Commerce annual congress in Victoria Falls.
The audit unearthed the unprocedural employment of his daughter, Ms Kudzanai Masika, by ZIM as the business development officer on December 11, 2013, without following normal recruitment policy.
Online Reporter