The Zimbabwe National Road Administration and the National Oil Infrastructure Company of Zimbabwe used personal bank accounts of employees outside Harare to conduct cash transactions for their entities, in the process exposing the funds to abuse, an audit has shown.
In her audit report for the financial year ended December 31 2017, Auditor General Ms Mildred Chiri said there were 21 State entities that were failing to uphold good corporate governance standards and to provide services sustainably.
“I also noted weak internal controls over cash and banking. NOIC Feruka depot was using the assistant depot manager’s personal bank account for administering cash transactions for the company. The same obtained for Zinara which was disbursing cash to provinces through employees personal bank accounts,” said Ms Chiri in her report tabled before Parliament.
“In addition, there was no laid down policy or procedure to cover this arrangement. I also noted that there was no evidence of approval by the head of station on the petty cash voucher. The petty cash voucher was only signed by the accounts clerk. There is risk of loss through misappropriation of funds.”
In response to audit observations, Zinara management admitted not using official bank accounts but said this was only a temporary measure to allow the smooth flow of operations at provincial offices. Herald
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