The Defence ministry has for the second year running failed to account for $2 million incurred during the year ended December 2016. A further $358 453 which was unprocedurally paid for airfares and hotel accommodation also remains unaccounted for, the Mail and Telegraph has learnt.
In a follow-up report to recommendations of her 2016 report auditor-general (AG) Mildred Chiri raised alarm over glaring gaps in the ministry of defense appropriation account for the year ended December 31, 2016 that remained unresolved as at December 31 2017.
“I reported that there was a variance of $2 492 586 between the sub-paymaster General’s Account and the ministry’s appropriation account that was not reconciled. The risk is that the expenditure reported could not be validated as true expenditure for the ministry,” Chiri reported.
“The ministry had not fully implemented the recommendation as vouchers amounting to $37 631 were submitted leaving the balance of $2 454 955 unreconciled.”
She added: “I reported on the contravention of treasury instruction 1216 by the ministry when it processed payments totaling $358 453 for air fares and hotel accommodation using pro-forma invoices and quotations only. I added that supporting documentation such as receipts were not availed to validate the expenditure.
There was also concern around $2 000 which was unaccounted for emanating for a payment of $12 000 made to the Local government ministry for stadium hire.
“Furthermore there was no evidence that a refundable security fee of $2000 included in the payment of $12000 made to the ministry of local government for stadium higher was refunded to the ministry.
“I added that the security deposit should be claimed so that the resources are used to finance other ministry activities.”
Chiri also noted that service providers Tel-One and ZINWA were owed $2 804 925 and $225 297 respectively by the Defence ministry.
The report said in the absence of a breakdown of the variance, the expenditure reported cannot be validated as true expenditure for the ministry.
“The ministry should reconcile the expenditure balances from the different sources to enhance accuracy and reliability of its financial statements,” the AG had said in her prior recommendation.
The auditor general also noted that there were several unaccounted variances for services extended to Zimbabwe National Army.
-Mail and Telegraph