This was
revealed in a report tabled before Parliament by the Public Accounts Committee
chairperson, Charlton Hwende, on its financial statement.
According to
the report, the supplier, Mike Harris, cited difficulties in securing foreign
currency as the reason for the non-delivery of the vehicles.
Despite Zimra's
efforts to resolve the issue through arbitration, the authority lost the case
but successfully appealed to the Procurement Regulatory Authority of Zimbabwe
to debar the supplier and the High Court granted the appeal.
“The
Auditor-General noted that the authority had not received all vehicles paid for
Z$209 million. It paid for 85 vehicles, but the supplier had delivered fifteen
(15) of the thirty-five Toyota Hilux and none of the fifty (50) Toyota corolla
vehicles.
“The accounting
officer informed the committee that the authority had encountered challenges
with Mike Harris when it made a prepayment in Zimbabwean dollars.
“The supplier
failed to deliver all the vehicles, citing difficulties in securing foreign
currency. The matter went for arbitration and Zimra lost the case.”
Hwende said the
prepayment made in Zimbabwean dollars had contributed to the supplier’s
inability to deliver, highlighting potential weaknesses in the procurement of
assets in local currency.
Zimra's failure
to win the arbitration case suggested potential oversight or mismanagement in
handling the supplier relationship and contract enforcement.
Hwende,
however, urged Zimra to avoid prepayment and only pay when goods have been
received. The report also highlighted weaknesses in Zimra’s procurement
processes, particularly about prepayment made in local currency.
The authority's
failure to win the arbitration case also raises concerns about oversight and
mismanagement in handling supplier relationships and contract enforcement.
Furthermore,
the audit revealed that Zimra’s vehicle fleet was aged, with significant repair
and maintenance costs being incurred.
Of the 135
vehicles inspected at five regional offices, 44 were non-runners. The
authority's reliance on outdated vehicles has been exacerbated by inadequate
funding from Treasury, hindering its ability to effectively carry out its
mandate.
“The audit
noted that the authority’s vehicles were aged and were incurring significant
repair and maintenance costs. For the five regional offices audited by the
Auditor-General, there were 134 old vehicles, of which 44 were non-runners.
“The accounting
officer submitted that the authority relied on available vehicles, many of
which were more than 10 years old. They bemoaned the gap between the bids
submitted to Treasury each year and the amount allocated for the procurement of
new vehicles.
“In the absence
of adequate funding from Treasury, the authority remained incapacitated to
effectively carry out its mandate,” the report said.
Hwende said the
committee noted that the authority did not have proper systems for managing the
disposal of aged vehicles, recommending that Zimra constitute a board of survey
that identifies and facilitates the disposal of non-runner vehicles by 31 December
2025. Newsday
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